Cedar Rapids Gazette, November 5, 1974, Page 10

Publication: Cedar Rapids Gazette November 5, 1974

Cedar Rapids Gazette (Newspaper) - November 5, 1974, Cedar Rapids, Iowa IO The Odar Rapids Gazette: Tues., Nov. 5, 1974 Don’t Let Benefit 8* MMU By Sylvia Porter NEW VORK — If you're anions the millions of taxpayers supporting a parent, say your mother, make sure that 1974 s social security benefit boosts which are help ing to make her life easier are not simultaneously costing you a significant dependency' deduction. Handle the matter properly in the next few weeks and you’ll get a dependency deduc tion for her plus a deduction Second of five articles. for her medical expenses — while she ll get her increased benefits and a little extra too Overlook even a few minor details — such as a $10 interest payment to her on a forgotten savings account — and you Sylvia Porter might forfeit a whopping $3,350 tax break. To be specific, the tax law says you can get a dependency deduction for your mother only if (I) she has gross income of less than $750 a year; and (2) you provide more than half her support. Medical Bills As an illustration, say that in 1973 your mother got social security benefits of $2,500 and had no other income. To help her, you paid all her medical and dental bills in excess of medicare — a total of $2,HOO. Result: You got a dependency deduction of $750 and also deducted the $2,HOO in medical expenses. The explanation: Social security benefits aren’t counted for the gross Income Jest. and (2) you contributed more than half your mother's support. But this year has been much tougher, for with soaring living costs she hasn’t been able to swing it even with her increased social security benefits So you contributed $100 more Entire Amount Now here s how you. your mother and the tax collector make out: Your mother's social Knitter Alfred Frie, 71, of Monroe, Wis., knits a wool scarf while wearing a stocking cap he learned to knit two years ago while confined to a wheel chair in a nursing home. Frie has spent most of his life on crutches, having suffered paralysis of the leg when he was nine. Frie sells caps and scarves. He makes two a day. AP Wirephoto Dive in Economic Indicators Adds Weight to Claims of Recession By John ( unniff NEW YORK (AP) -Like the hands of a clock at the beginning or ending of Daylight Savings Time, the leading economic indicators sometimes mislead, but seldom totally. The composite index of these economic indicators fell 2 5 percent in September, the worst decline in 23 years, pointing to a sharp decline of economic activity for the remainder of the year. The indicators have been wrong before, and some of them cannot now be relied upon too uncritically. Stet k prices, for example, are an indicator of future activity, but an unreliable one. Daw (iains In fact, as the dismal report was being released, the Dow Jones industrial average soared 25 5 points, one of its John Cunniff sharpest gains of the year But the market was looking far into the future — not into next month As some stock analysts might observe, the market already had discounted the bad news for the remainder of the year and was looking into the middle of 1975. when economic conditions might be* better. Perhaps more indicative of the immediate future was the H 4 percent drop in durable goods orders during September. and the K 4 percent decline in building permits. The level of building actu ity. Reports Blacks Turn Apathetic to Education CHICAGO (AP) - Progress in expanding higher education opportunities for bla-ks has deteriorate liecause of a sluggish economy i.nd blacks’ own apathy, a minority education leader says. "Blacks are not pushing now as they did in the late 19H0s," said David Kent president of the National Scholarship Service and Fund for Negro Students of New York. At a minority education conference, he said some black college administrators have got comfortable with their jobs arid ‘‘lost sight of what their original objective was.” Weaker Voice Therefore, blacks have a weaker voice during the* current competition for the educational dollar, lie said. "We need as much pressure within government as we can mount. We need as much noise as we can make We also need help Where are the liberals who were once on our side? You just don’t see them anymore,” Kent said. "Progress has been made but it falls short of the mark Parity of equality in educational opportunity has not been achieved ” Kent said that between 19H5 and 1971 blacks in college's and universities grew from 3 4 percent to more than H per cent of the* total college* and university enrollment. One Percent Drop But that trend has turned downward, between 1972 and 1973 minority enrollment dropjxsi I percent, he said The conference failed to draw its expected crowd of I .(MMI. Only 51 HI registered A spokesman said the poor turnout was partly a reflection of blacks growing disinterest. The ti inference was billed as the first educational assembly of blacks. Puerto Ricans, Mexiean-Ainoricans American Indians and other minority groups for example, follows directly from the number of permits issued several weeks before. It isn t an opinion about the future; it is a factual declaration. Past Conditions The 9 1 percent advance in new claims for unemployment insuranc e, on the* other hand, is just as much a statement about past conditions as it is an indication of things to come. So also is the measure of the av (‘rage work week, w hich also is a component of the index of leading indicators, and which fell slightly in September. And the same applies to the ratio of price to labor costs, which rose slightly. The only real strength in the September forecasts was in th** measure of plant and equipment orders, which rose 4 |M*r-cent, indicating business was at least trying to meet the demands for greater production efficiency. Cooling Fires However, a good many economists will interpret another indicator, the 4 2 j>er-cent decline in industrial-material prices as a sign that the fires of inflation are cooling, although another month of declines is needed for confirmation. The semantic argument aliout recession or no recession has become a senseless dispute The facts seem to be accumulating heavily on the side of recession, no matter what some government officials say To put it another way. the label doesn’t count that much lf the consumer finds the contents of the can look and taste like pickles he’s going to disbelieve the label that says fruit cocktail. The contents — the facts — rather than the label are what matters And now the index of leading indicators adds more pit kies to the contents. security benefits have been lifted to more than $2,7IM! this year and she is spending the entire amount on her own support. You have supported her to the tune of $2,700 instead of $2.HOO — and thereby you lose your 1974 dependency deduction, for this is not more than half her support You also lose the $2.HOO of medical deductions. Who wins'* The tax collector Here’s why: Your mother gets no benefit from her dependency exemption, since she has no income from which to deduct it You lose a $750 deduction and a $2.HOO medical deduction. The entire difference goes to the IRS. What To Do What then should you do? Make sure, say Prentiee-Hall’s top tax experts, that in the weeks remaining before year-end you nail down the entire $3,330 in deductions by seeing to it that you contribute more than half your mother's support in 1974. By giv ing her a few hundred dollars more this year, you well might wind up pocketing as much as, say, $1.600 in taxes — money that otherwise would go to the IRS. ‘‘Right now ” warns Prentice-Hall, is ‘‘an ideal opportunity for significant and successful tax strategy." Find out NOW how much your mother’s gross income for ’74 will be and talk things over to check on just what sources of possible revenue she has with which you might not be familiar. (heck up on vour own — via her old tax returns and related papers — for all it might take to throw the whole tax strategy out of balance would be one • forgotten” savings account that earns a few dollars in interest. You won’t see Form 1999 reporting that interest until it's too late to adjust your contribution And you wouldn't want to lose $3,350 for the want of $10' A little bit of generosity before the year ends could pax off big at tax time. Don't assume that, lf you can’t take the dependency exemption for a person, you can't deduct his or her medical expenses, for this is not so. You cannot get the dependency exemption if. say, a parent you support earns more than $750 a year — but you can get a medical deduction if you actually pay the medical bills and provide more than half the person's support regardless of his or her other income. For instance, say your mother has investments that give her an annual income of $1.5(H) — not enough for her to live on. so you contribute another $2,000. including $700 for medical bills. Result: There’s no dependency deduction, .for your mother’s income was over $750. But, since you paid more than half her living expenses, you qualify for a deduction on the $700 you spent in medical bills. Next. Standard deductions, auto expenses, weddings. Of National Bible Week WASHINGTON (I IM) -President Ford has been named honorary chairman of the 34th interfaith observance of National Bible week Nov 24 to Dec. I. "Bible reading has been a tradition in my family for as long as I can remember 'he said in accepting the chairmanship "The celebration of National Bible week gives me the opportunity to share with my fellow Americans my special regard for the Scriptures as a unifying source of wisdom and inspiration.” Ford said his favorite Bible passages are the fifth and sixth verses from the third chapter of Proverbs: "Trust in the Lord with all thine heart; and lean not unto thine own understanding In all thy ways acknowledge Him. and He shall direct thy paths." ‘‘It was not chance,” Ford said. "that led me to have my Bible opened to these words as I took the oath of President. Rather, it was my firm belief in their meaning — a belief that has made them my daily prayer.’ National Bible week has been sponsored since 1940 by the Laymen’s National Bible Committee, an interfaith, New York based organization It is scheduled each year to coincide with Thanksgiving, described by the group ast "America’s only non sectarian religious holiday.” GAZETTE TELEPHONE NUMBERS For Ntw! Sporty lookknpmp, Control Infor motion ond Otficos Not Intod lolow (oH    3*8711 Emulation Subscription Dept    3*8 8333 Mon thru Sot 8am to 7 pm. Sundays Until 17 Noon Holiday! U a rn to 7 p m Want A<h    3*8 8734 Mon thru Fn 8 a rn to 5 p rn Saturday until 12 Noon Deploy Advertising    398 8222 8 a rn to S p m Monon Otfic#    398 8430 --—- VISIT The Office of Dr. ( C. R. Kitchen Optometrist • Eyes Examined • Glasses Fitted • Contact Lenses Sears (lased Sun. and Mon Lindale Plaza I Covering your mouth when you cough is a good idea. But what else are you doing about your cough? There are two kinds of coughs; Temporary ones that usually come and go with a cold, and chronic ones that hang on and get worse. Temporary ones are not much of a problem. They need little if any treatment. But those chronic ones need attention and fast. They could indicate Bronchitis or Emphysema, or Lung Cancer, all of which are treatable or even curable if you don’t wfait too long. If you do put it off, any of them could kill you much too soon. Take your nagging cough to your doctor. W ho knows, you might just leave it there and wouldn't that be a blessed relief. We care. rn Blue Cross Blue Shield of Iowa Des Moines/Sioux City 'Registered Mark Blue Cross Anociation ^Registered Service Mark of the National Association of Blue Shield Plana DETTER HEALTH IOWA. WE CARE. Ctdar Rapids Roprosortativo Robert J. Sedenka Home Phone 342-6204 Office Phone 366-3348 Barton and Linn Countias Raprosontativa Lloyd Schaufenbuel Hornet 362-6973 Office: 366-3349 FOR INDIVIDUAL ENROLLMENT Now AVAILABLE: Group Enrollm.nl 2 thru 4 Employ.., Johnson County Roprosortativo Bert Vincent 137-1440 Jonos and Codar Comitial Roprosortativo Edward A. Schlatter Home Phene 377-3203 Office Phone 366-9349 ;

  • David Kent
  • Robert J. Sedenka
  • Sylvia Porter

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Issue Date: November 5, 1974

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