European Stars and Stripes (Newspaper) - February 16, 1994, Darmstadt, Hesse                                If you made Money its time to pay up by Jim Luther the associated press ederal tax Law has changed immensely since 1913 when Congress voted to tax income Quot from whatever source  now the exceptions to that Rule and the regulations explaining them require several feet of bookshelf space. And they commonly produce cases of frustration every Winter As taxpayers sort out whether to report their pensions lottery winnings bonuses interest and gifts. The great majority of americans Don t have to guess about the bulk of their income it comes As wages tips and commissions is reported on a form w-2 by their employers and is subject to tax. Here is How some other types of income Are treated gambling winnings must be declared As income losses a up to the amount of winnings a May be deducted. Not a capital gains net profits from the Sale of personal property and stocks real estate Mutual funds and other investments Are taxable. Two special Breaks help if that personal property was your principal Home. Taxable capital gains from investments May be reduced by losses and up to $3,000 of any loss that cannot be used against capital gains May be subtracted from wages and other income. But no capital loss deduction is allowed on the Sale of your principal Home. A gifts not taxed a As Long As they Are Given without expectation of something in return. You Don t pay tax if the Christmas gift from your Boss is a Turkey but you do if it s Cash. A tax refunds the refund of any state and local taxes that you deducted in a prior year must be reported As income interest on refunds also is taxable. A gambling Cash or other prizes from lotteries and other forms of gambling must be reported As income. Itemizes May deduct losses up to the amount of winnings a tips All tips Are taxable. If you work for a larger restaurant or bar and reported to your employer tips of less than 8 percent of your sales you May have to pay tax on a higher amount. Is publication 531 spells out the rules. Quot a a sick pay taxable if paid by your employer not taxable if it is provided by a policy you paid for. A social Security up to half May be taxable if your total Giti a k a in jul cd m if in ill Vii 931040 031040 1993 5931q4da a As j931040ez19931419931040ez f a 199310f 1993 a amps Dave a Leto a fax preparer reaches for a form at the office of the judge advocate general at Raf Mildenhall  claims come in Many forms there is an extra line on the one Page form 1040ez this year and it could make taxes simpler for a few million people. The new line allows a user to Check whether filing status is single or joint a reflecting the fact that 1040ez is available for the first time to Many married couples. It still has Only 10 numbered lines compared with 33 for form 1040aand 65 for form 1040. All three Basic forms have been changed this year to show that the presidential Campaign checkoff has been tripled. Form. 1040 has a new line to allow higher income people whose taxes were raised retroactively to delay paying part of the increase. But in most respects the forms Are the same As last year. So Are the rules for deciding which form to use except on 1040ez. Here they Are a 1040ez you and your spouse must be under 65 and not Blind and claim no dependents or tax credits. Both spouses must file on the same return. Your 1993 taxable income a after subtracting personal exemptions and the Standard deduction a must have been less than $50,000. You May have had up to $400 of taxable interest but the rest of your income had to be from wages tips and taxable scholarships. You May not use 1040ez if you or your spouse worked for More than one employer last year and had wages of More than $57,600. If you file 1040ez, you Don t have to worry about any accompanying schedules or specialized forms a 1040a this form May be used for any filing status single joint married filing separately head of household or qualifying widow. But taxable income must have been under $50,000 and consisted of wages tips scholarships interest dividends unemployment compensation pensions social Security or withdrawals from individual retirement accounts. You May not use 1040a if you claim adjustments for Alimony paid or self employment health insurance premiums. Any of four separate schedules May be filed with 1040a schedule 1 to report interest and dividends schedule 2 for the child care credit or to report employer financed dependent care schedule 3 for the credit for the elderly or disabled and schedule Etc for the earned in new 1040 if you had income Jhc be reported on 1040a, file 104bth includes farm earnings capital 9ns. Income self employment earns j and state and local income tax 9un a you have your Choice of a dons specialized forms and schedule i 1040. Among them schedule a itemized deduct is. Schedule a dividends and table interest. Schedule a profit or loss Fror Ibi in which you Are the sole proper or. Schedule Cen a Shorter Sci Lul it for Gross business profits of $25 0 it expenses of $2,000 or less no i ent and no employees. I scheduled capital gains Anc isse schedule a profits and losses so rentals royalties and partnership schedule Etc earned income it red schedule of farm income an Coj it be schedule be for calculating to sell employment tax for social Secu Yar medicare owed by anyone with pro at least $400 from self employ 18 the stars and stripes wednesday