i fitnewter Firming, Saturday, December 3, 1966 y in* excew of the limitation, you will have gained a medical deduction which may not other wise have been available. Since the rules for deducti bility of medical expenses change after 1966, considera tion should be given to these changes: 1. Medical expenses include medical expenses if they ex- insurance premiums to cover ceed three percent of your ad- hospital and doctor bills. In justed gross income. Purchases 19*37 up to $l5O of such pre of medicines and drugs, how- uuums will be deductible (if ever, are ‘‘medical expenses” y° u itemize deductions) with only to the extent they exceed °. u t regard to the 3% limita one percent of your adjusted t* on - Anything over $l5O paid gross income. For taxpayers i° r such insurance becomes over 65 years of age the three P art of the calculation subject percent and one percent limita- to the 3% limit, tions are waived for 1966. This 2. There will be no maxi waiver ends after 1966, so tax- mum medical expense deduc payers over 65 will then be tion in 1967. treated the same as all others. 3. Insurance premiums for Your planning in this area disability income, accidental should consider any reimburse- death and dismemberment, and ment for medical expenses you sight loss are not deductible, have received or anticipate re- A popular and legitimate ceiving. Reimbursements appli- means of reducing taxes is to cable to medical expenses paid alternate between years in us dunng the year are properly tng the standard deduction and offset against such expenses in itemizing the deductions. In' arriving at your medical ex- the year itemization will be pense deduction. Reimburse- used, payment of deductible meats attributable to medical items in December will result expenses for which a deduction iu a lessening of income tax: was allowed in a prior year while in the year the standard are considered income in the deduction will be used, pay year received. ments of items due near the If you have not yet paid all en ®* , tlie ,y, ea ? should be your medical bills, your year- P°stP<med until January. You end tax planning should con- cannot, however, obtain a de sider whether the payments duction by paying a bill that is should be accelerated or de- not ®- : making a pre c , „ , . payment or advance payment ferred. To the extent your pay- on medical or dent / w y ork t 0 ments can be “bunched” in be performed at a later date), one year, resulting in expenses But if you are considering a TAX PLANNING (NOTE: The following ar ticle is the first in a series of four articles on ycar-cnd tax planning prepared for this newspaper by the Com mittee on Taxation of the Pennsylvania Institute of Certified Public Account ants.) Sove Money By Paying Major Bills Now Have the medical bills for you and your dependents been heavy in 1966° It might be beneficial to make a quick cal culation to determine the amount deductible on your 1966 individual income tax re turn. The income tax laws permit a deduction for payment of g protect your form 4fc/5c against power outage Paatas?? ?A; AT' \ ** - ♦**. roWER s«Sfc& INSURANCE TRACTOR GENERATOR with iPWATT r^sw» es» I^.-** Provides dependable emergency elec tric power for lights, heat, refrigera tion, milk cooler, and water system. New WINCO 15 KW PTO with MAXI WATT gives Extra Power, Performance, and Value! Celled tractor model and cemplele line of tractor ond engine generators from 1500 to 15,000 watts. (Int. Duty) Send coupon far inform of ion op Cofl for FREE demonrfrofioti L H. BRUBAKER 350 Strasburg Pike, Lane. R. D. 3, Lititz Phone Lancaster 397-5179 Strasburg 687-6002 Lititz 626-7766 . H. Hoffman Seeds, Inc. Landisville, Pa. 898-2261 Apply On Frozen Ground T HIT n/r -J- T New Holland 354-2112 Ivan M. Martin, Inc. Terre HiU 445.3455 Blue Ball, Pa. Gap 4424148 medical check up, new glam* or a visit to the dentist, 'a quick calculation may be in order to determine if payment for such medical expenses will be advantageous this year. Examples of medical expen ses in addition to those already ennumerated include payments to laboratories and nurses, the cost of X-rays, hearing devices, dentures, and transportation expenses relative to illness. If you use your automobile for transportation to doctors, hos pitals, etc., you may Use a standard mileage rate of $.05 per mile to determine the de ductible cost. Your planning should also consider any wages or pay ments received under a wage continuation plan while ab sent from work on account of sickness or injury. If payments received during the first thirty days of absence are not more than 75 percent of your weekly wage rate, they may be exclud ed from your gross income up to a maximum of $75 per week. This exclusion, however, does not apply for the first week of absence unless you are hospitalized at least one day during your absence. If you are absent from work for more than thirty days, pay ments received applicable to the period beginning with the thirty-first day of absence may be excluded up to $lOO a week, regardless of whether they ex- iiiimiiliiiiiiiiiiiiiiiiiniiiiliiiiiiiiiiiiiiioiiiimiiimiimiimliiiiiiiiliiiiHf DON’T BE OUT OF ; SAMCO CAN DO IT! | See the Original Swedish Fluid Manure Handling = System on Display at ' E LESTER A. SINGER ‘‘Lancaster County’s Only Dealer Specializing In Sprayer Sales and Service” RONKS, PA. Tliiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiitiiiiitmiiiiiiiiili Temperature* for the peel* od Saturday through Wed nesday will average below the normal range of 43 to *T degrees. Officially, the weath erman said it will be cold throughout the period fol lowing some moderation over the weekend. Unofficially, he said, “Don’t believe it; it’s getting colder every min ute!” We’ll go along with that. Not much precipitation is in the five-day forecast at this time as the weatherman looks for less than *4 -inch total moisture, and this in the form of snow flurries about Monday. Would you believe 12 inches? ceed 75 percent of your week ly wage rate. One other item to consider is the likelihood of your being in a higher or lower tax brack et in 1967. Obtaining a deduc tion in the year of greater in come and higher tax rates is the aim of tax planning. Now is the time to review your unpaid bills to determine whether, for income tax pur poses, they should be paid mow or deferred until January t»f 1967. us 6 SAMCO! 1 *>\ 0, DATE! % Ps 'i * r = 687*6712 5
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