Local Tax Deduc.

Local Tax Deduc.

Averaging $1,230

Residents of Rappahannock County who are working on their Federal income tax returns and itemizing their deductions may find it advantageous to compare their figures with those of other people at the same income level.

Are their deductions above or below the average? Are their listings of charitable contributions, interest, taxes and medical expenditures relatively high or low? i

For the individual taxpayer, to know how his deductions compare with those of other people in his income bracket could be very helpful.

Some light is shed on the subject by the Commerce Clearing House, national authority on tax and business law, and by the Internal Revenue Service. They have released data showing what the deductions have generally amounted to in recent years at each income level.

Where average earnings are of the size of those prevailing in Rappahannock County, it is found that the deductions come to approximately $1,230, or about 22 percent of the adjusted gross income.

In families with lower-than-average earnings, the amounts deducted represent a larger proportion of their income. Conversely, for those with higher incomes, the percentage deducted is smaller.

For example, those that gross $5,500 a year deduct about 22 percent normally. The ones that are in the $17,500 class, on the other hand, have deductions of only 16 percent.

Local families who are in the $6,500 income category will be deducting about $1,380 this year if they have had average outlays. At the $12,000 income level, the deductions will be around $2,160.

A breakdown of the $1,230 in deductions claimed by most taxpayers with incomes equal to the Rappahannock County average shows that $204 of it represents contributions, $396 is for interest on loans and installment debt, $345 for local taxes and $285 for medical expenses.

It is pointed out that the figures are solely a guide to what most people are listing as deductions and that proper records must be available to back up all claims.