Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 114, No. 13, Ed. 1 Thursday, January 16, 1992 Page: 4 of 16
This newspaper is part of the collection entitled: Hopkins County Area Newspapers and was provided to The Portal to Texas History by the Hopkins County Genealogical Society.
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ar giveaway
illiam and Clair Agnew of Quitman recently won a used car in a giveaway at Price Cadillac, Olds, Pontiac
Sulphur Springs. The Agnew's were presented the vehicle by Markeda Price Orwosky, general manager
f the dealership and Dean Allen, general sales manager of Price Cadillac. Pictured are, from the left,
rwosky, Clair Agnew, William Agnew and Allen.
|4y*i -.4* 4 -#.»
Tax Adviser
By (ieorge W. Smith
Changes in tax law makes
filing separately beneficial
If you are married, you may file a joint return or
you and your spouse may file separate returns. In the
past, couples almost routinely filed jointly in order to
save taxes. This may have made sense in prior years,
but numerous tax changes may give separate filing
an edge for some couples. To find out which filing
status is best
for you,
comput e
your tax
liability using both a joint return and separate returns
so that you can use the method producing the lower
tax In making this decision, consider the following
points:
filing jointly. Married couples with only one
salaried worker or with one partner earning
considerably more than the other will probably
benefit by filing a joint income tax return.
Since those who file jointly can combine their
income and deductions, they are given credit by the
IRS for filing as two people. Half the income is
taxed to the higher salaried breadwinner and half to
the other spouse.
filing separately. Working spouses who make
approximately the same amount of money may save
taxes by filing separately. This may be especially
advantageous if:
The lower-income partner has high medical
expenses and the higher income partner has few or
no medical expenses Taxpayers may have larger
total deductions by filing separately.
An alternative minimum tax is due on a joint return.
You live in the community or marital property states
of Arizona, C alifornia, Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington or Wisconsin.
Wisconsin is considered a community property state
for federal income tax purposes.
The spouse with less income has large uninsured
casualty losses or numerous miscellaneous itemized
deductions including employee business expenses.
These deductions are reported on Schedule A of
form 1040 and are subject to a minimum limitation.
By filing separately, you may lose the beneiits of the
child-care credit, as well as the $25,000 allowance
for rental losses.,
Here's the real catch: If one spouse itemizes
deductions, the other spouse must also itemize. If the
other spouse cannot itemize, he or she must use
"zero” for the itemized or standard deduction.
In case of death
Your filing status at date of death is the controlling
factor for the entire year Therefore, if your spouse
died during 1991, you are considered married for the
entire year But, remember this: You may continue to
file a joint return for the year if you were living
together and were qualified to file a joint return at
the date of death Also, you most not have remarried
befoie the end of the year Any tncome earned by the
deceased spouse prior to death must be reported on
the final tax return.
When filing a joint return with a deceased spouse,
write "deceased” and "filing as surviving spouse”
in the signature area.
If a dependent child died during the year, you may
still claim that child as a dependent for the year and
receive a $2,150
exemption
deduction.
Single parent
with a dependent child
The head of household filing status permits a
taxpayer to enjoy a lower tax rate and a larger
standard deduction than a single person. To qualify,
you must have been on Dec. 31, 1991, either single,
legally separated or a married person living apart
from a spouse for the last six months. If single or
legally separated, you must have paid more than half
the cost of maintaining a home that was the principal
residence of a child, stepchild, foster child,
grandchild, or dependent parent. To qualify as a
"married person J^yjrig apart,” the qualifying
dependent must be your child, stepchild or adopted
child. You also must have paid more than half the
cost of maintaining your home.
The name of the qualifying dependent (parent or
child, for example) must be included on Form 1040
or 1040A.
If you are a widow or widower with a dependent
child, you may use the married filing jointly tax rates
for two years following the death of your spouse if
you were eligible to file a joint return in the year
your spouse died.
Example: Your spouse died during 1989 or 1990 and
you did not remarry in 1991; you had a dependent
child or stepchild living with you for the entire year
in 1991, and you paid more than half the cost of
maintaining the home You may use the tax rates for
married filing jointly.
Abandoned or separated spouse
While these categories seem clear-cut, the IRS
recognizes that life is not always that simple. Is a
spouse who has been abandoned considered single or
married? For tax purposes, an abandoned spouse
may qualify as head of household and receive a
larger standard deduction and a lower tax rate than a
married taxpayer filing separately or filing as single.
A married person may be treated as unmarried if the
individual lived apart from a spouse for the last six
months of the year and paid more than half the cost
of running a home, and the home is the principal
residence (for more than half the year) of a child
who could be claimed as a dependent.
ICimi NEWSPAPER ENTERPRISE ASSN.
George Smith is the managing partner of a certified
public accounting firm in Michigan and a syndicated
columnist for Newspaper Enterprise Association.
Excerpted from "Cut Your Own Taxes and Save
1992" (World Almanac 1991).
Economists call economic
troubles ’unprecedented*
By JOHN CUNMFF
AP Business Analyst_
NEW YORK (AP) — Some
economists contend that today’s
economic weakness is structurally
different from recessions in the
past, and call on the testimony of
the nation’s top economic officials
for support.
Support is one thing, however,
and action is another.
While the evidence is clear that
an “utterly unprecedented” credit-
crunch factor exists in the current
weak economy, most of the
corrective effort has been based on
conventional formulas.
A year ago last spring three of
the country’s top finance officials,
including Federal Reserve
Chairman Alan Greenspan, told
bankers they were concerned about
overly tight lending policies by
banks.
The concern of the officials —
Greenspan, FDIC Chairman
William Seidman and Comptroller
of the Currency Robert Clarke —
was that cautious bankers and
zealous regulators were needlessy
denying credit-worthy customers.
Through the summer of 1990,
Commerce Secretary Robert
Mosbacher expressed similar
worries, contending that tightened
lending practices were hurting
small- and medium-sized
businesses that could demonstrate
sound financial practices.
In the fall of that year, President
B>ush met with his economic
advisers at Camp David and later
with bank regulators and
administration officials to discuss
his fears that reduced bank lending
was weakening the economy.
Thereafter, Greenspan spoke
several times about his fears that
overly tight credit standards were
thwarting recovery. And as small-
business complaints mounted, he
conceded the existence of a credit
crunch. - - - - - •
During this time many small-
business group claimed that not
only were sound businesses being
denied credit but that existing
credit lines were being reduced or
eliminated, often with little
warning.
The matter remained on the
minds of White. House officials
throughout that fall, into the winter
of 1991, and right through the
summer and fall. Finally, on Oct.
8, the White announced steps to
facilitate sound lending.
Among other things, it said it
would ask bankers to work with
borrowers experiencing temporary
difficulties, and remind bankers
that they could prudently refinance
commercial real estate loans
without fear of retribution.
With evidence growing that the
recovery was weak and
inconsistent, Greenspan on Oct. 28
again expressed his fears that
bankers and regulators were
exacerbating an ‘‘utterly
unprecedented” credit crunch.
While he conceded that
fundamental economic conditions
might be responsible for some of
the depressed lending figures,
much of the weakness was from
banks self-imposing credit limits
under pressure from regulators.
Other economists have observed
that a third element, in addition to
bankers and regulators, is
involved. While many sound
borrowers are denied credit, they
say, many other equally sound
potential borrowers decline to even
seek it.
In this way, over a period of a
year and a half, the existence of
the structural problem has been
recognized but not effectively dealt
with, and it continues to this day. ,
Smart Money
By Bruce Williams
When dogs chew, owners pay
DEAR BRUCE: I checked into a hotel that allows
pets. My dog is ordinarily very well-behaved. But he
was in a strange situation and there was a lot of
noise in the room next to us.
The dog is a little high-strung and because of the
noise, the strangers and my not being there for a few
hours, he chewed up everything in sight in the hotel
room.
Now, the hotel is taking me to court to force me to
pay for the damage. My position is they know that
when pets are accepted* sotae-iof them will do
damage. Just as they know if they serve alcohol,
some people are going to get drunk and cause
damage. 1 think that’s part of the hazard of running a
hotel.
While I sympathize, I am in no position to pay for
the damage that my dog did. Furthermore, if I alert
my insurance company to this incident. I’m sure
they will cancel me. Does the hotel have a right to
collect from me? _ T.G., Minneapolis
■ DEAR.T.G. Your logic absolutely amazes me.
Instead of being glad that there are some hotels that
will accommodate pets, you want to pass off the
responsibility for the damage your dog did to
someone else.
There’s no question in my mind that you are
completely responsible for all of the damage your
dog did, just as the drunk in your illustration would
be responsible for the damage he or she did.
The liability is clearly yours, and it astounds me
that you could think otherwise.
DEAR BRUCE: I was going on vacation for 2 1/2
weeks, so I gave my landlord a post-dated check.
My rent is due on the first, but I gave it to her on the
22nd of the preceding month telling her it was post-
dated.
She assured me she wouldn’t deposit it until the
first. I had paid other bills with properly dated
checks, knowing that my paycheck would be direct-
deposited and my rent check would be good on the
first of the month. My landlady immediately went to
the bank after I gave her the check and deposited it.
Even though the date was the first and she deposited
it early, the bank quickly processed the check,
credited her account and debited my account. Of
course, there were enough funds to cover that check,
but then when the properly dated checks hit the
bank, there wasn’t enough to cover them. When I
came back, you can imagine my embarrassment. I
went to the bank and told them they were
responsible. They said they were not and that I
improperly post-dated a check and that the scanner
doesn’t pick up that kind of information. To add
insult to injury, they are charging me $15 for each
returned item. _ A.S., Tyler, Texas
■ DEAR A S.: The answer is clear: Don’t write
post-dated checks. In today’s highly automated
world, routine checks are processed by the
thousands every minute. As a consequence, the dates
are not scanned
Now you might make the point that the teller who
accepted the check should have noticed it. But
technically, you are not permitted to write a post-
dated check, which in actuality, is not a check but a
promissory note put through for collection.
I think you’re going to have to eat this one and learn
the hard way. The only way to issue a check is on
the appropriate date and have the funds on deposit.
DEAR BRUC’Bt In the fir# partbf the year,! hired
a housekeeper tthough ah agency. Her origin# Some
was in South America. About three weeks ago, she
came to me and said she had to leave because there
Is an emergency at home. I sympathized and
arranged for her to go home.
You can imagine how upset I am now to find that
there are hundreds of dollars of telephone calls _
even one 90-minute collect call from South America.
The phone company says I am responsible. I didn’t
authorize these telephone calls. I have told them
where she is living. They say it is not t|ieir
responsibility, and I am liable for these calls. Am I?
_ D.E., Malibu, Calif.
■ DEAR D.E.: There’s no question in my mind:
You’re on the hook. You allowed this person free
access to your telephone. It’s your responsibility not
,4o let anyone have this access unless you will be
responsible for the telephone calls.
Employers routinely have the same problem.
Employees make personal calls that show up on the
employer’s bill. Whether or not the employer
collects from the employee, the phone charges must
be paid. — _.
DEAR BRUCE: Three months ago, I purchased an
automobile from an advertisement in a local
newspaper. The ad was placed by the seller of the
car, and his home phone number was included. We
liked the car, and while it was not a bargain, the
price was competitive. We borrowed the money from
our bank and paid cash to the seller. We learned
shortly after we purchased the car that the seller
moved from her rented quarters, leaving no
forwarding address.
As it turns out, the car was reported stolen by its
previous owner four months ago and was traced to
us through motor vehicle records. The police
apologized but said they had to impound the
automobile. The car was returned to its original
owner and we are out of a car.
The authorities recognize that we have been duped
and no charges are being pressed against us, but the
car is no longer in our possession. The bank now
insists that we pay off our loan in full, which we are
obviously unable to do. Where do we go from here?
_ S.L., Phoenix, Ariz.
■ DEAR S.L.. To the best of my knowledge, you’ll
be going to a lender to borrow the money to pay off
the automobile loan. Clearly, you’ve been swindled.
It happens to the best of us. and while I am very
sympathetic to your position, unfortunately, I know
of no place you can turn for reimbursement.
WalMart
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Keys, Clarke. Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 114, No. 13, Ed. 1 Thursday, January 16, 1992, newspaper, January 16, 1992; Sulphur Springs, Texas. (https://texashistory.unt.edu/ark:/67531/metapth824855/m1/4/: accessed April 24, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Hopkins County Genealogical Society.