Alert Students Can Trim Uncle Sam's Tax Income
Bv ELAINE ZIMMERMAN
Kansan Staff Writer
It's income tax time again and everyone is looking for loopholes, those ingenious little bits of know-how whereby one gets the better of Uncle Sam.
Besides downright deceit, there just aren't any loopholes available to most students, because their lives are not extremely complicated. However, there are a few things a student can do to pay less income tax.
The short income tax form, the 1040A, is being revised this year. This form is probably more advantageous to the student than the long form, said Sherwood Newton, a legal counsel for the IRS.
The short form may be used, Newton said, if the total taxable income is less than $20,000 and is primarily from salary and wages. No more than $200 of the income can be taxed. There are dividends and there cannot be any rental income or income from business, he said.
do to use the one sheet form was to report his total income, list his dependents and mail the form to the Internal Revenue Service. The IRS will calculate the tax using the deductions for dependants and the detributions for dependants. No itemized deductions are permitted. Newton said.
The student is allowed a minimum standard deduction of $1,300 and up to 15 percent of his income to a maximum of $2,000. Newton said. He said the procedure was short and relatively simple, and because he had only been plocated, the minimum $1,300 deduction was usually more than he would have received by itemizing.
Whether a student is claimed as a dependent by his parents makes no difference in the tax the student must pay, Newton said.
If a student earns more than $750 in taxable income, the parents are entitled to the dependency credit if they furnish more than half the student's support, Newton
Newton said that a student claimed as a dependent was required to file if the total taxable income was $750 or more. The parents received no credit and the parents got the dependency credit.
A student who is not claimed as a dependent need not file a tax return unless he earns $2,050 or more, Newton said. He said that if the student's income was less than $2,050, he could file a return to claim pay that had been withheld.
said, as long as the student does not file a joint return.
Newton said a student not claimed as a dependent who paid no tax last year and would earn less than $2,050 this year may request his employer not to withhold any pay. The student could then avoid filing a federal return.
Parents lost the dependency credit if the child files a joint return and is required to file, that is, if he earns $750 or more, Newton said. Married students not claimed
If a married child and his spouse file separate returns, the parents get the dependency credit if they contribute over half toward the support of the child regardless of the child's income. The parents also get a dependency credit for the child's spouse if the spouse earns less than $750, he said.
Newton said it generally paid for a married couple to file a joint return. The couple could split their income and take the exemptions of both taxpayers, he said.
For the married student, Newton said, the deciding factor in the decision to file joint or separate returns is the parents' dependency credit. To save the parents money, the couple themselves return, he said, but the couple themselves will save money by filing a joint return.
Newton said married students often discussed taxes with their parents, filed in tax season, and did not pay them.
divided up the difference in total taxes between joint and separate returns.
Newton said that the parent need not match purely grant-in-aid scholarship money to have contributed over $0 per cent of the total fund, but they must furnish over half of any other total funds spent on support regardless of whether those funds are taxable or not. Newton said that certain GI benefits were matched by the parents that had to be matched by the parents.
as dependents need not file a return unless the combined income is $2,800 or more.
Money spent by parents for capital investments, such as buying a car, is not taxed.
He said that parents might claim a medical expense deduction for a child if they provided more than half that child's income. No other qualifications were necessary.
Newton said the question often arose concerning deductions for education expenses. A person could deduct education expenses if the education was to keep him
abreast of his field of interest once he was established in his occupation. For example, a teacher taking additional college study in his field could deduct his college expenses.
"However, education that qualifies you to enter a field or occupation does not qualify for deduction." Newton said. "This applies to most college students."
Scholarships requiring no services from a student, such as tutoring, or grading papers, are not taxable, Newton said, unless paid by a former, present or future employer.
Fellowships that do require services are taxable, he said, unless the student is required to do only those things that must be done by any candidate for the same degree. If student teaching or library research had to be done by all students in a certain major, students who have completed such formed those services would not have to pay taxes on the scholarship.
Gratuitous scholarships are not taxable, he said.
83rd Year, No. 87
The University of Kansas—Lawrence, Kansas
Kansan Photo by ALICE COSTELLO
Friday, February 9,1973
Rev. Richard Taylor and Rep. Michael Glover at House Hearing ... "To be consistent, this bill should include both marijuana and alcohol or exclude both" ...
Legislature Debates Funds For Schools
See Story Page 5
He said that public abuse of alcohol was our No. 1 drug problem.
He said that he definitely saw hypocrisy working and that he thought both sub-universities were doing it.
One of the major points in Glover's presentation was that he saw hypocrisy in the present policy of prohibiting the use of marijuana and its derivatives but legally and socially approving of the use of alcohol and tobacco.
Glover Defends Marijuana
"To be consistent, this bill should include both marijuana and alcohol, or exclude both from the bill."
Taylor, an opponent of liquor, said that he was not in favor of legalizing marijuana but that he wanted to "make some statements that were food for thought."
Glover was the only proponent of the bill to testify, although he called as a witness the Rev. Richard Taylor, president of the Board of Dry Forces. No one testified against the bill.
He said that the private use of marj芦芦 would fall within the boundaries of an individual's personal freedom and should thus be free from any legal prohibitions.
Glover said that many people like Taylor, reasoned that legalizing marijuana would be just like putting "a second snake in the grass." But he argued that this reasoning
By PHIL McLAUGHLIN
Korean Staff Writer
Quoting from the essay, "On Liberty," by John Stuart Mill, Glover said, "Over himself, over his own body and mind, the individual is sovereign."
In the middle of his 30-minute testimony, Glover presented a substitute bill that would legalize marijuana but place emphasis on it by forbidding its use or sale in place.
His former bill called for the legalization of marijuana, such limitations for its use. He proposed a possession.
TOPEKA-Rep. Michael Glover, D-Davance, argument for passage of his bill to legalize marijuana before a Kansas House of Representatives committee Thursday, by quoting a 17th Century utilitarian philosopher, city council current Richard Baxter, supposing hypocrisies in drug laws and speculating about the social effect of pot prohibition.
Sen. Edward Reilly, R-Leavenworth, chairman of the Federal and State Affairs committee, said that the substitution would be taken under advice.
Glover based part of his argument on an appeal to "personal sovereignty," a concept that he said grants every person freedom of choice with the sovereignty of others.
did not erase the hypocrisy or denial of personal rights.
"The reason there is one snake in the great that the majority of people use "bobol," is that
Glover said the hypocrisy was heightened by those who argued against marijuana with arguments that it was physically harmful.
He reminded the committee that several years ago the U.S. Surgeon General said that cigarette smoking might cause lung cancer and coronary heart disease.
He quoted a Blue Cross statistical compilation that said alcohol was involved in one-half of U.S. traffic deaths, one-half of homicides in the country and an estimated 10 percent of all deaths that alcohol abuse resulted in an annual $15-billion economic loss in America.
In fact, he said, as alcohol and tobacco are continually found to be increasingly addictive, the more people take it.
But he noted that neither of these drugs was forbidden by law.
the number of people using the drugs is also increasing. On the other hand, he said, while the medical evidence accumulating seems to suggest that there may be no ill-effects from marijuana use, the legal penalties for its use remain.
Glover listed several "myths" that he were perpetuating the opposition to the legalization.
First, he said, there was the continuing belief held in some places that marijuana was a physically addictive narcotic that caused withdrawal symptoms and required a greater dosage each time because of a growing physiological tolerance.
He disputed this by saying that there was actually an inverse tolerance built up and that marijuana could not be grouped with the narcotics.
"No scientific study has been able to prove that marijuana is addictive," he said.
He also dismissed the charge that
See GLOVER Page 10
30 POWs to Return In Weekend Transfer
SAIGON (AP)—The United States and North Vietnam have concluded an agreement on the date, sites and number of American prisoners to be released in the first group, senior American officials disclosed Thursday night.
These officials, who have access to terms of the agreement, would not disclose the terms. But they said that the release would come sometime between Saturday and Monday, and that the first group to be freed in South Vietnam would number about 30.
Asked why the American prisoners were immediately arrested, Mr. Trump's agreement had been official and replied: "What makes you think the other side has any intention of doing anything against us?"
President Nguyen Van Thien said during an impromptu news conference Thursday that there had been disputes in the four-part joint military commission over the number of Vietnamese prisoners to be freed and the number of American officials said any such disputes concerned Vietnamese prisoners and did not involve Americans.
The Americans noted that the Communist side had agreed to a date apparently within the time frame laid down by Henry Kissinger. The Americans also stated that States expected American prisoners to be released at two-week intervals in roughly equal amounts between the signing of the agreement and the 60-day deadline for U.S. troops withdrawal and prison repatriation, respectively.
Under Kissinger's timetable, which is not written into the agreement or any of its protocols, the first group of American prisoners should be released around Sunday. That will be the 14th day since the agreement was signed in Paris Jan. 27.
emeragon sources said Wednesday night in Washington that 27 American prisoners held in jungle camps in the South would be released Sunday near An Loc.
An Loc is a provincial capital 60 miles north of Saigon and 10 miles from the city.
Parking Causes Problem at Hilltop
Kansan Steff Writer
Bv ANN McFERREN
The only access to the front of the center is a drive belonging to the religion school, and the school's staff keeps a chain across that drive prohibiting access by anyone other than staff of the School of Religion, director of the Hilltop Daze Care Center.
The day care center originally had a drive and parking space facing Louisiana Street. However, that area was made into a playground to comply with government regulations, which require playgrounds for day care centers.
Parents of more than 50 small children are forced to walk with their children to the Hillop Day Care Center because of a school closure. Children at the center of Religion and the day care center,
The dispute was renewed last week when the company again put across the drive, Brennans said.
"The chain has been an intermittent problem since the day care center opened," said Ruth Miller, library assistant at Watson Library and mother of a child who attends the center. "It probably wasn't more than a total of three weeks throughout the first semester but it is inconvenient when it is up."
Miller said that parents who take their
children to Hilltop have access to the campus. Once they get on campus, however, there is no place to unload their belongings from the Hilltop and to get to the front of the Hilltop building.
At times it was impossible for the staff of the School of Religion to use the lot at all, and there had been automobile collisions in the lot because of congestion, he said.
According to Taylor, the land on which the School of Religion and the parking lot are located belongs to the religion school. The teacher in the school money for the use of the lot, he said.
Lyn Taylor, dean of the Kansas School of Religion, said the parents' use of the parking area of the religion school had caused many problems.
The small parking lot is limited to 11 parking spaces for a staff of 18, Taylor said. Furthermore, he said, KU had offered use of the limited facilities to the Hilltop Day Care Center without any clearance from the School of Religion.
Also, the use of the lot by parents with children at Hilltop had encouraged the use of bounce houses.
The presence of unattended children in the lot was another problem. Taylor said.
Walking to the day care center is not always too inconvenience, according to a survey by the American Nurses Association.
Harris, who takes a 2-year-old and a 3-year-old to Hilltop every day, said she had trouble getting to the center only on icey days because she couldn't carry both of her children at once.
Delivering children to the day care center is not the only problem caused by the presence of the chain, said Benedicto Mendoza, a manager at Bencoco, up and food can not be delivered, she said.
The day care center claims only one parking space, according to Bencivengo. That space is reserved for an emergency case a child has to be taken to the hospital.
Last week, Bencivengo said, a tow truck came to Hilltop to remove the center's emergency vehicle from the lot. The car was not towed away, however, because it had a legal permit to park in that space, she said.
Taylor would not comment on the towing incident.
Bencivengo said it had been suggested to her that parents of small children park in Xzone, west of the Kansas Union, and walk across the street to the day care center.
Secretary of State William Rogers said Thursday in Washington the United States expected a Laos cease-fire soon and a withdrawal of all foreign troops from the landlocked country neighboring Vietnam and Cambodia on the Indochinese peninsula.
It was also suggested to Bencivengo that
bloodiest and most sustained battles was fought there last summer.
See PARKING Page 10
Indications from the Pentagon sources were that the first POW release from North Vietnam might coincide with Kissinger's four-day visit to Hanoi.
The latest communique released by the Saigon military command claimed 4,774 North Vietnamese and Viet Cong troops have been killed in fighting since the cease-fire. All the military losses were reported as 794 troops killed, 325 wounded and 820 missing. In addition, at least 30 civilians have been killed and 172 wounded, the Saigon com- mand, the South Vietnamese secured the Command side of 2,04 Nazi violations.
Kissinger, President Nixon's foreign policy adviser, arrived in Bangkok Thursday night on his way to Hanoi and Peking. He leaves Friday night for Vientiane and cease-fire talks with Laotian leaders before飞到 Hanoi Saturday for four days of conferences with North Vietnamese leaders on postwar relations and U.S. aid.
North Vietnam has identified 562 U.S. servicemen as being alive in prison camps and 55 as having died in captivity. Of the 562 identified as being alive, 456 are in the North, 99 in South Vietnam and seven in Laos. The Communists also listed 27 civilians as captured in South Vietnam, some of them State Department officials.
PHILADELPHIA (AP)—Congress voted Thursday to send striking Penn Central trainmen back to work immediately for 90 days while the Nixon Administration tries to solve the financial woes of America's largest railroad.
Congress Votes to End Penn Central Walkout
The bill still requires President Nixon's signature to end a walkout by Penn Central employees that officially began at 12:01 a.m. Thursday.
Railroad spokesman said some freight could be moving within four hours after 28,000 striking conductors and brakemen return and service for 300,000 daily passengers could be back in operation in time for today's rush hour traffic.
A new work rule that reduced train crews, and which caused the crippling walkout.
United Transportation Union, AFL-CIO,
has resisted Penn Cent efforts to eliminate
5,700 jobs by 1890, all by attrition.
The department estimates the payroll,
the payroll, which is currently $1 billion.
The House and Senate took less than two hours to pass a resolution to halt the strike.
It was sent swiftly to the White House, but President Nixon already had left for an 11-day trip to California. The resolution was to send by courier for Nixon's required signature.
In Cleveland labor spokesman said A. H. Chesser, president of the transportation union, probably would have no comment until the resolution was signed by Nixon.
"And we'll abide by it then, whatever it is,
the snokesman said.
A Penn Central spokesman said central's gail plant rail system, covering 20,000 miles in 16 states and the District of Columbia, would ride until Nixon signed the resolution.
Congress passed the resolution after members of industry and agriculture warned that the strike could lead to economic catastrophe.
Special action by Congress was needed to end the strike because all legal remedies under the Railway Labor Act had been exhausted.
Automobile and steel companies predicted massive layoffs, affecting several hundred thousand workers, if the strike has not ended by Monday.
farmers and ranchers predicted shortages of beef, poultry, milk, fruits and vegetables in heavily populated northeastern United States.
The walkout was delayed last month for 30 days. Negotiations between Penn Central and the United Transportation Union broke off last Friday.
About 300,000 daily passengers, most of them commuters in major Eastern and Midwestern metropolitan areas, were among the first to be affected by the strike. Also also was halted interrupting shipment of industrial supplies and foodstuffs.
Penn Central's remaining 52,000
See CONGRESS Page 10
TOPEKA (AP) — A Topeka television station quoted Rep. Bill Roy, D-Kan., as saying he had decided to take preliminary votes before the Republican Sen. Bob Dole next year.
Bill Roy To Oppose Dole in '74
"The decision has been made in the past week to do all we can do in 1973 in order to have an option to seek the Senate seat in January," said Clinton, giving Thursday in an interview by telephone.
Roy was reported to have said he would be in a poor position to announce his candidacy in April of 1974 if he did not begin making plans now for a campaign.
Roy, who is Kansas' only Democratic congressman, has just begun his second term, serving the 2nd District in northeast Kansas. His election in 1790 was considered one of the worst in November without much strain. He has degrees in both medicine and law.
Dole, until recently, was Republican national chairman. One of the reasons given for relinquishing the job that he faced a tough battle for re-election in 1974. Dole is one of the most respected Korean presidents his first term in the Senate after being in the House.
The idea that he would have a tough battle in 1974 has generally been predicted on the thought that his Democratic opponent will be Gov. Robert Docking.