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Show hitW TUX ON INCOME IS PAYABLE IN JliiJE More Than 4000 in Utah Are Made Liable for First Time. LOWEST LIMIT $1000 Married Persons, However, Unaffected if Revenue Is Under $2000. More than 4000 persons in L'tab who in the past have been entirely exempt from paying an income tax will be called upon before lUareh 1 to report on their liability for Lhis financial sup-j'Ort sup-j'Ort to the fedora! government. y JaDv who "will pay their income tax vjp the first time on or before June 15, J 9 IS, are at present in doubt aa to the workings of the hvo income tax laws, the first of which was passed September Septem-ber S, 1010, and the second October 3, li'17. The latter reduced the exemption exemp-tion of single persons to $1000 and that of married persons to $2000, while still permitting the law of 1916 to remain on the statute books. Thh government insists, however, that all, unless coming within the list of : those who are exempt, shall obtain j proper forms from the revenue collector, upon which they shall prepare a true and correct statement of gross incomes, ; less allowable deductions, and the , proper amount of net income computed in amount of the tax made, and that returns be made to the internal revenue ; collector before March 1, 1918. As a matter of fact it will be well to return schedules before the expiration of the time limit. In event of there being mistakes the collectors will point these out and return the report that the corrections may be entered. An early filing would prevent penalties for belated be-lated scherJnk-s, for it is demanded that the form filed must be absolutely correct. cor-rect. Serious penalties are provided for failure to file schedules on or before be-fore March 1, 1918, and for failure to pay the tax for the full calendar year of 1017 on or before June 15, 1918. Statutes Complicated. "While the two iucome laws are still in force, many persons, through ignorance ignor-ance perhaps, will make their returns only under the act of October 3, 1917. This l;iw was rcsfionMl-lc fur tho rc'luc tiun of tiie income tax exemption of a single, person to .rlOuO, and of a mar-rit'ti mar-rit'ti person w'-.cn iivin with his "wife or her hushauu, to .nOi.l. plus $L'o(l for each child le.-s than eighteen year? ol'l and more than eighteen rears if incapable inca-pable mentally or physically of i-elf support. Married persons when not liv-livintr liv-livintr together are elasseri as single in the interpretation of the income tax law. A single person who is the hear of a family, may lay claim to an exemption of 20UO under certain conditions. When husband and wife, living together, to-gether, have joint incomes less than fTiOOO, one return shall he made, but where the joint income exveeds foi'OO each must make a separate report. All reports must be filed under oath. The normal tax for a single, person is I 2 per cent on the excess of $I00U net income after certain allowable deductions. deduc-tions. Under the act of September S, 191(5, the normal tax of 2 per cent pertains to all income over the exemptions under the same act; that is, $3000 for a single person and .ftOuO for a married person. This tax continues so long as there is an income. L'uder the same act, on reaching $20,-000 $20,-000 surtax commences, in addition to the normal tax of 2 per cent, on a graduated scale. j Under the. act of October 3, 1017, a normal tax begins immediately following follow-ing exemptions of $10u0 for a single person and $2noo for a married pesson, plus certain deductions. This normal tax continues on all income and is frequently fre-quently referred to as a war tax. Excess Tax-Provided. On reaching a net iucome of $5000 all excess then becomes subject to additional addi-tional war taxes, while both normal taxes, now reaching 4 per cent, continue through all income. , Deductions on the normal tax of dividends divi-dends received is allowed for residents and citizens of the United States, but surtaxes and war taxes must be paid on dividends. The tax on $1000 of net income after exemption at 2 per cent would be $20 for a single person; on $2000 income, $40; on $3000 income, $60, and on $4000 income $80, after which the normal income in-come becomes 4 per cent, so that on $5000 a single person would pay $120 normal tax. A married person living with wife or husband, with an income of $2000 does not have to pay an income tax, but must file a schedule setting forth the sources of income and deductions. On the first $20U0 in excess of exemptions, ex-emptions, $2000; plus allowable deductions, deduc-tions, the income tax is $20; on the second sec-ond $1000 over exemptions, $40; on the third $1000 over exemptions, $60; on the fourth $1000 over exemptions, $S0. At this point the normal tax of 2 per cent under the act of October 3 becomes be-comes effective throughout the rest of tlie income, with a series of war taxes on a graduated scale. . A person with an income of $1000, if single, is not subject to the income tax, butTmust prepare' and file a schedule of income. Penalties Are Severe. The penalties for neglect to file schedules and pay taxes are heavy, the more so if any attempt to defraud the government is indicated. Tho government govern-ment does not accept excuses based on ignorance of the law. So important is the matter considered, that deputy internal in-ternal revenue agents are now in various. vari-ous. parts of the various states explaining explain-ing the workings of the income tax, so that there may be no ignorance. One of the simplest ways of recognizing recogniz-ing the two laws in force and to find the tax of a person with $5000 income follows. Computed on an annual Income of $5000: Act of September 8, 1916 Single Married person, person. Tax. Tax. Net income $5,000 ?5,0OO Less exemption 3,000 4,000 Amount subject to tax.?2,000 $1,000 Two per cent on above amount 10 20 Act of October 3, 1917 Single Married person, person. Tax. Tax. N'et Income $5,000 $5,000 Less exemption 1,000 2.000 Amount subject to tax. .$4, 000 $3,000 Two per cent on above amount SO 60 Total tax liability under un-der both acts $ 120 $ 80 |