Decatur Daily Democrat, Volume 61, Number 21, Decatur, Adams County, 25 January 1963 — Page 8

PAGE EIGHT

Many Tax Matters Are Misunderstood

Editors Note: This is the last of five dispatches on how to prepare your federal income tax return so that you pay Uncle Sam just what you owe—and no more, today’s dispatch covers interest. dividends, siek pay and other often-misunderstood tax matters. WASHINGTON (UPI) —A good way to get into hot water with the Internal Revenue Service is to omit from your return income you have received during 1962 in some form other than wages. >■ Few taxpayers are likely to ov.eriook their wage income, since its amount is reported to them (and simultaneously to the government) by the employer’s annual Form W-2. Your copy of this form has to be attached to your tax return. But you also must report all of the income you received in the form of interest and dividends. It should be noted that .socalled "dividends” on savings & loan, or building 4 loan, deposits are actually interest, and should

BUILD Up Your Resistance To Colds with GERITOL Tablets and Liquid KOHNE DRUG STORE

PUBLIC AUCTION MODERN HOME AND HOUSEHOLD GOODS In Monroeville, Indiana The Estate off JAY W. SMITH Deceased The undersigned Executor will sell at Public Auction the following Real Estate and Personal Property: LOCATED—CORNER OF CENTRAL AVE., AND WEBSTER STREEET IN MONROEVILLE, INDIANA. , (Only 1 block from the Main St., and 2 blocks from the Business District) SATURDAY, FEBRUARY 2 SALE STARTING AT 12:00 O'CLOCK NOON REAL ESTATE 7-ROOM MODERN HOUSE A 4-bedroom modern 2-story home. Four rooms and bath down. 3 bedrooms with 3 clothes closets up, also tiled bath with tiled floor, up. Two rooms and bedroom carpeted. Guest closet and built-in corner cupboard. Large kitchen with built-in cupboards and double sink. Full four compartment basement, newly overhauled forced air oil furnace. City water and I & M electricity. 55 gal. water heater. Also cistern with motor plumbing, and 4" drilled well. This home is in good repair, newly painted, good foundation, slate roof, large front porch and enclosed back porch. Nicely located, only 2 blocks from business district, on large corner lots, beautiful surroundings with plenty shade trees and nice lawn. ONE CAR GARAGE. Open for inspection before day of sale from 1:00 p. m. to 5:00 p. m., Jan. 26. Or by appointment call the Executor, phone 8624, Monroeville. TERMS ON REAL ESTATE—% of purchase price cash on day of sale, balance on delivery of deed and abstract and upon approval of sale by the Allen Superior Court No. 2. immediate possession. Real Estate sale at 2:00 p. m. HOUSEHOLD GOODS 3-picce sectional davenport, beige color, foam rubber: 2-piece blue Mohair living room suite; beige swivel chair; round coffee table; chair & ottoman; studio couch; walnut kneehole desk & chair; desk lamp; Capehart 21” console TV set; Capehart table model radio; end tables; davenport table; 2-piece blonde bedroom suite with Mr. & Mrs. dresser; foam rubber mattress & box springs; wood bed, springs & mattress; 2 wardrobes; 5-piece breakfast set, formica top; 2 reed rockers; base rocker., wall mirror; floor lamps; commode; oak dresser; rockers; pole light: hall tree; magazine rack; folding table; Tower metal filing cabinet with combination safe compartment; gossip bench. ANTIQUES: Chest of drawers; 2 brass candle holders; small iron; oil lamp; child's rocker; picture frame. APPLIANCES: Westinghouse 30” electric stove with visualite oven: I.H.C. 12-ft. chest-type deep freeze; I.H.C. electric refrigerator; Kenmore electric washer; Apex electric sweeper 8t attachments; Domestic portable electric sewing machine; Sunbeam coffee maker; KenmbTe pop-up toaster; G. E. steam & dry iron. MISCELLANEOUS: 52 piece set 1847 Roger Bros, silverware, FirstLove pattern; dinnerware; dishes; odd silverware; utensils; kitchen stool; water set; tumblers; what-nots; electric wall clock; Violin; shag rugs; throw rugs; table and vanity lamps; double unit electric blanket; pillows; bedding; linens; towels; bath scales: clothes hamper; trunk; console radio; electric fan; card table & 4 chairs; porch glider; small tools; Craftsman power lawn mower; lawn roller; heavy duty power hand saw; V«” electric drill; bench vice; work bench; drop cord; twin tubs; lawn hose; work bench; fruit jars and many miscellaneous articles not mentioned. • 1958 DODGE AUTOMOBILE 1958 Dodge Coronet 4-door sedan, black, power steering, power brakes, good rubber, 17,300 actual miles, good condition, one man owner. In case of bad weather, sale will be held under tent. TERMS ON PERSONAL PROPERTY CASH Not responsible for accidents. Lunch will be served. Estate of JAY W. SMITH, Deceased EARL J. SMITH, Executor JEANNE MILLER, Attorney For Estate Ellenberger Bros., Auctioneers & Realtors Fort Wayne phone K-5512 .. Bluffton phone 543 First Citizens State Bank of Monroeville, Clerk.

be reported accordingly. Interest is taxable even if it was merely credited to your account and you did not draw it out in cash. Also, interest on a loan you made to someone is taxable even if the p» incipal was not repaid during the year. Dividends Are Taxable Dividends are taxable income, but come in for special treatment in two ways. The first SSO you receive in dividend payments is exempt from tax. And you may generally take a credit against your tax of 4 per cent of dividends above SSO. Suppose, for example, a taxpayer received S3O in dividends in 1962. He reports this on his return but does not include it in his taxable income because it is less than SSO. Another taxpayer received SBS in dividends on his stock. He reports that but pays tax only on $35. He may also take 4 pet cent of the $35 ($1.40) as a credit against his tax. In a joint return, a husband and wife may not combine their SSO exclusions. Each may take one exclusion separately. Suppose he received S7O of dividends and she received S2O. He reports the S7O, pays the tax on S2O and takes a tax credit of 80 cents (4 per cent of 520.). Her S2O of dividends also is 'reported on the return. It is not taxable. Her unused allowance of S3O is not applicable to the husband’s dividends. Dividends on most life insurance policies are not considered income for tax purposes. U.S. Savings Bonds — Holders of U.S. savings bonds need not re-

port the interest that accrues each year. They mar defer reporting this income until the bonds are cashed. On Series E savings bonds the interest is the difference between the purchase price and the bond’s cash value at the end of 1962. A taxpayer also may elect to report the interest each year instead of waiting until he cashes his bonds and then having to report it all at once. If he chooses yearly reporting he must stick to it, even for bonds he acquires in the future. To change to deferred reporting he must first get permission from the revenue service. Sick Pay — You may exclude up to SIOO a week of sick pay under certain conditions. If you were sick at home for more than, seven consecutive days, the pay you received starting with the eighth day may be excluded from your income. You may deduct one-fifth of your weekly pay (but not more than S2O) for each day missed if you are on a five-day week; one-sixth (but not more than $16.67) if you work a six-day week. You may deduct sick pay starting with the first day if you are away from the job because of injury, no matter where suffered, or if your illness caused you to be a hospital patient for at least one day. Again, you may not deduct more than SIOO a week. If you claim the sick pay exclusion, attach Form 2440 to your return to support the claim. This form can be obtained at your nearest Internal Revenue Service office. Or you can write a detailed statement on a piece of paper, following the directions given in the tax instruction booklet. Retirement Income — There are seve-al snecial rules governing taxation of retirement income. If you received retirement income in 1962 and have any doubt about how to treat it on your tax return, consult your tax adviser or the Internal Revenue Service. Retirement income which is not taxable and need not be reported includes Social Security payments, railroad retirement act pensions, veterans benefits, or payments for injury or sickness to military personnel disabled in active service. Whether other retirement income is taxable, and how much, depends on several things, especially whether you or your employer or both of you made contribution to the pension fund and whether taxes were paid on these amounts. There also are provisions for special retirement income credits. These rules were somewhat liberalized last year and if you have been claiming such credits you should check on the new rules. Persons 65 or older should remember that by virtue of their age they are entitled to two S6OO exemptions, or a total of $1,200. Regardless of your age, retirement income does not include money you are now earning by work. Here are some other forms of income which should be reported, but are often overlooked: Alimony, annuities, awards, back pay, bonuses, breach of contract damages, commissions, compensation for personal services, debts which have been “forgiven” or cancelled by the person to whom you owed the money, directors’ fees, gains from sale of property, gambling winnings, hobby earnings, jury duty fees and prizes won in contests or lotteries. Some of these forms of income come in for special treatment and involve complex regulations. If you have reportable income, Jjn these categories, consult the he’arest Internal Revenue Service office, or obtain a copy of the service’s handbook entitled “Your Federal Income Tax, 1963 Edition, For Individuals.” This has complete details on how to handle special forms of income. It can be ordered for 40 cents from the Government Printing Office, Washington 25, D.C., or at your local internal revenue office. Ball State College Applies For Grant WASHINGTON (UPI) — Ball State Teachers College has applied for a $69,595 grant under a 1961 law intended to provide specialized training for workers in the field of juvenile delinquency. Sen. Vance Hartke, D-Ind., said Thursday he has appealed to the Department of Health, Education and Welfare in behalf of the school.

(Lkic DRY CLEANERS and LAUNDRY Coin-Op Laundry and Dry Cleaners Open Every Night 12-16. Load Washers spin clothes drier, for faster, less costly drying in our wrinkle-free, 5-cent meter dryers. WASH 20c. Our coin-op dry cleaners have the largest capacity in Decaturl 1 Bottle free sizing with each load — This week onlyl Plus the best in regular laundry and, dry cleaning.

THE DECATOR DAILY pEMOCnAt, DCCATOB. INDIANA

ADAMS COUNTY ASCS committee members were hosts Thursday night to Leonard Pound, second from right, of Sullivan, and Edward Reddick, right, presently district ASCS field man, and announced Thursday as the new state office manager. Dick Moser, left, Roy Balsiger, and James Garboden, center, are the three members of the county ASCS committee, and Garboden is serving as president. The ASCS committee administers the local measuring of farms and compliance with the feed grain program, which has, in two years, raised farmers' income by $2 billion.—(Photo by Mac Lean)

State ASCS Head Speaks At Meeting

Farmers’ income is up $2 billion, the farm surplus has been reduced 27 million tons, and food prices on meat, poultry and milk have been stabilized, Leonard Pound, of Sullivan, state chairman of the agricultural stabilization and conservation service, told a group of 50 Adams county and township board members Thursday night at the Palmer House in Berne. Pleased With County Pound, suffering from a bad cold, told the group that he was very pleased with the work going on in Adams county. He stressed the importance of the signup Feb. 1-March 22 for the feed grain program, which has actually lowered the surplus for the first time since 1950. _ Also, he mentioned the need for the wheat program, which will de-' pend entirely on the vote in May or June. Farmers can guarantee themselves a return on their investment, can improve their land for. future heeds, and can help reduce the surplus by taking part in the feed grain program, he added. ’ Reddick Speaks He was preceded by Edward Reddick, of Rushville, area field man, who has been appointed office manager of the-state office. Pound announced that he would soon announce a new field man for the area. Reddick, using a flip chart, explained the new feed grain program, and the changes from last year. I In the period 1952-60, the stock of surplus farm commodities grew at the rate of 7 million tons al year; the feed grain program, in I just two years, has started shrink-j ing the surplus, some 27 million tons so far. 1 Farmers who want to help shrink the surplus, and still earn a decent return for their labor and investment, are invited to sign up for the feed grain program, he added. Normal Production Each farm will have an established normal production for corn, barley, and sorghum. A farmer may place 20%-40% of this in re-| serve; or, If .his ENP is 25 acres, or less, he rhay place the entire amount in the reserve. The farmer will receive in return a payment of 20% ENP for 20%, or 50% ENP for more, up to 25 acres or 40%. In Adams county the support price support will be $1.26 a bushel for the campaign year on corn. Thus a farmer putting his whole com allotment of 25 acres in the reserve would receive $.63 established normal production 25. This, he asserted, should encourage the small farmers to take part. It wih be especially attractive to cattle feeders who can

Eddie’s Recreation 266 N. Second St. Last Saturday we had a good turn out for Junior and Bantam Bowlers. We need about 8 or 10 more girls for our complete girl's league. I want to thank the paresis and supervisors who helped me establish this bowling league. Eddie’s Recreation 266 N. Second St.

now help reduce the surplus, and still buy back com at a reasonable price on the market. Self-Paying The feed grain program does not cost the taxpayer, he explained. The cost is covered by the judicious sale of surplus stocks. Already most of the professional warehouses have been cleared of old surplus, and soon the CCC bins will be used. Sales are made to keep the price steady, but not to panic the market. Advance payments can again be

Mllgiy-'y ' ''' TIME fl BOMB I The population explosion is 4m fiaflSiß going at a dizzying pace. Its ■ Hn effects are already being felt in B Indiana, with proposals for in- F- BMP I«Vyf BEM 4 creased taxes to meet soaring *f*T? public education costs. H. i* Where will the tax money id ••tf! *• come from for more classrooms? ’w From ALL Indiana citizens, ineluding the five Investor- 4^.1 J. 1 IK Owned Electric Companies | ‘ :?XXI who, last year, paid more than taxes—the largest such pay- X , ment ever made by these utili- aHßr:j| ties. This was equal to the amount needed to keep 87,650 K children in school one full year. VABvJm ■ In addition, the five Electric ’ * r» Companies’ Federal income tax h&fe, ’ provisions in 1962 totaled more |||BB||3|| mßhßbß9| than $54,550,000. This makes BHHHf ' the five Investor-Owned Elec- i Qjjflljjllly vBBBB , , ; trie Companies the largest jßßfl BHBB ■ supporters of local, State and ' Federal government services in .. jBBB A Indiana. fl ■ I* B ELECTRIC POWER i B IO BEdmSSbI Bl I bEks ...Indiana's Most Abundant Resource |wjM| BfO ■ Bf 1 vwk 1 I : lE* *1 Indiana & Michigan ■ a ELICTRIC COMPANY <* ' ESZIf - -ftt -s* - , ,» . . ... 4 - ■ - -

received but the premium of 18c a bushel is not given until the final payment, which makes the initial payment less than half of the total that will be received. James Garboden, county ASCS chairman, presided at the meeting. and the room had been decorated by the ladies who work at the county ASCS office. Following the meal, slides of agriculture in the Far East were shown by Dick Heller. MUCH OF U.S. (Continued from Page One) in Cadillac, Mich., since the first of the year. Highway Drifted Shut Most nen-paved highways in five western Michigan counties were drifted shut after Thursday’s 30

mile an hour wind gusts packed snow 12 feet high. Police roadblocks were set up to keep motorists from the clogged roads as National Guardsmen searched for stranded drivers. Two natural gas companies in Detroit Thursday reported all-time record distribution but Pennsylvania companies cut back on the gas deliveries to industrial customers to better service hemes. Two hospitals in Pittsburgh, Pa., Thursday treated more than 50 cases of frostbite. The Arctic cold forced officials to postpone distribution of surplus food in the Braddock, Pa., area until next month. Water Pipe Bursts In Rear Os Store Cold weather Thursday morning caused a water pipe in the rear of Husmann’s Decorating House to burst, flooding the back portion of the store. Fortunately, Mrs. Roy Stewart, manager of the store, was present, and was able to get all of the rugs stored in the rear moved before they got wet. It took an hour and a half to get the water turned off at the street, as the pipes had burst at the meter. Additional help was secured to help sweep the water out of the store. ' The store owner, Henry Husmann, was in Portland and was unable to get his car started to come to Decatur. JEHOVAH’S WITNESSES < Kingdom Hall Comer Monroe and Ninth Sunday 3:00 p.m.: “Can There Be a World Without Woe?” will be the subject of a Bible lecture to be given by R. G. Schwartz, local representative and an assistant presiding minister. Sunday 4:15 p.m.: Watchtower Bible study and discussion cm the subject, “Strong Reason for Faith in God's New World, and to Preserve Your Souls Alive, Have Faith.” One of the scripture texts for consideration will be Heb. 10:39, “Now we are not the sort that shrink back to destruction, but the sort that have faith to the preserv-

FRIDAY, JANUARY 25, 1963

ing alive of the soul.’’ Tuesday 8:00 p.m.: Bible study using the study aid, "Let Your Name Be Sanctified.” Friday 7:30 p.m.: Theocratic Ministry School followed by the Kingdom Ministry service meeting. • ' Hammering Technique Here’s a tip on the technique of using a hammer which might save vou a few mashed thumbs. When driving a nail, first rest the hammer on the head of the nail, then lift the hammer, and give the nail a light tap to start it. Resting the hammer on the nailhead first tends to increase your accuracy. Trade In a good town — Decatur.

LIKE LOTS OF HOT WATER? install a WESTINGHOUSE Electric WATER HEATER Clear Clom or Galvanized Tank Models te 52 Gallon 84.50 "Sura Wa Can J&ford To Cut Prices!" KLENK'S 2 miles north of Decatur Phone 3-2158