' Who Has fo File?

Who Has fo File? | Thin series on “Your Tax Dollar’ in appearing ns I a public amice. It in furnished by the Richmond 5 district office of the hitenia’ Revenue Service. In' (juiricn should, be addressed to the Internal Revenue | Service, Public Information Officer, P. O. Box 10025, t Richmond, Va. 2321/0. f QUESTION: Just who has fo file an Income tax reI lum? : ANSWER: Anybody under age 65 who had gross in^ come of $600 or more and resided in the United ■ States during the year must file a tax return.

| Pei-sons 65 years of age and over must file if gross income amounts to $1,200 or more. The $600 reS quirement applies to minors, aliens who have inr come from U. S. sources, and U. S. citizens abroad. l Returns must be filed even when there is no tax J due. Regardless of the amount of gross Income, { self-employed persons with $400 or more net profit j must file and pay self-employment tax. ‘ QUESTION: Is it true that there is no dividend credit i on dividends received last year? ANSWER: Yes, the dividend credit provision has been t eliminated. The 1964 Revenue Act reduced the credit from 4 per cent to 2 per cent for dividends ; received fn 1964 and eliminated it entirely for 1965 dividend income. Remember, however, that the first $100 of dividend income generally is not taxable. QUESTION: My mother had to have an operation last year and I paid both the hospital and doctor bills. Can I include what I paid for her with my own medical deductions? ? ANSWER: Your mother's medical ex| ponses would be a deductible exit ponse for you provided you fur* nished over half her support last !i year. If this is the case, then you ji may deduct those medical and ij. drug expenses you paid for her f which are not reimbursed by ini' surance or by other members of jour family. If your mother Is 63 or over, these medical expenses are rot subject fo the 3 per cent income limit nor the 1 per cent limit for drugs and medicines. Form 294S, available from IRS offices, will help in making the computations.

QUESTION: My boss is holding up my W-2. He says his accountant hasn't begun work on them yet and doesn't know when they wilj be ready. Actually I can figure my withholding from the paycheck stubs I have saved. Can I use these instead of a W-2? I ANSWER: If possible, you should wait until you re. I ceive your W-2 before you file your return. Em| ployers are required by law to supply these by

I January 31. With the ADP system that we arc in|

stalling, income and withholding information re| ported by employees can be compared with what

| employers report to us. The ability of IRS to do | this gives honest taxpayers added Insurance that I everybody is paying what they should.

I QUESTION: I had to hire a teacher to take my place 1 last year when I was out sick. Can I deduct the coat of 2 this substitute when I itemize my deductions? ANSWER: Yes, this Is a deductible expense. However. if you received sick pay you cannot deduct fbe costs of the substitute teacher that are allocable to amounts excluded as sick pay. <?V.5STI0N: Arc iu,T fees considered taxable income? ANSWER: Yes, they are. fi i f

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