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
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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-
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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