Show Business Business Today Today Today- Income Taxes Really Realy Fairly Simple Editors Editor's Edior's note Now's Rows the time timeto to start figuring your our Income tax tax tax-It It ma may be more than you ou expect Paul Pau Gesner and ond John will wi devote their column for Wide Sido World and The Te Telegram Tele- Tele gram m for live five days das starting j Monday to explaining the fedI federal fed ted I era eral erl tax in simple terms Tuesday Tuesday Tes- Tes Tues Tues- day Joint returns and ond the short form i By Dy PAUL G GESNER and ond 1 JOHN BECKLEY NEW YORK Dec 16 Wide World Word This World This This Is going to hurt us j just as much muc as it does you Its It's Is I's IsI I about taxes I Now Now is the te time to start thinking think think- tik- tik and figuring income ing lug talking ad taxes tes Just three tree months monts from now Americans must step up and ad pay j nearly in individual I Income taxes to Uncle Sam Prompt payment of ot these tese taxes taxes will wi help materially in i financing the te war How large will wl your share of ot tista this tax ta be Have you started to lay aside funds to meet it Now is the te time to figure your yourt tax t and ad begin putting away a a. a littie little lit lit- l- l tle tie money each week to pay it i. i You may find fid when you come to calculate your tax t bill bili bi that tat it is much larger than ta you expected muc And if it you cant can't pay at least the te first quarter of it on March 15 it will wl cost cost you 6 per cent interest inter inter- est est Yes you mutter but income taxes are so bl blank com corn I cant can't make head nor tall tail tl of ot them Sometimes they are very ver complicated com corn but most peoples people's tax ta re rep returns returns re- re turns are fairly simple There are p only a few general principles the I average person needs to know kow These are not difficult and will willbe willbe wl be explained in this series seres Subsequent Subsequent Subsequent quent rulings or court decisions nay may of course change a few but butr butwell r ay well we'll wel consider them as they tey stand In the first place do you have to tofie tofile tofile I te file a federal federa income tax ta return fie The answer to this question queston depends depends depends de de- de- de on two things 1 Your gross Income 2 Whether you are married Gross Income means your total before receipts from all al sources deductions exemptions or any ay credits credis whatsoever If you were single during the te entire year you must file fe a return if i entre you had gross income of or more If I you were married and lived with wit your spouse at any time te durIng durf during dur dur- f ing the te 12 months monts you must file filea fe fea a return if the te combined gross income of you and your spouse added together totaled 1500 or j more I ore If you were married but did not live I with your spouse at any time Jve wih considered considered considered consid consid- during the te year you are ered as single That's all al there is to it I. I In deciding deciding de de- de- de whether you must file fe a ref return return re re- re- re turn you do not consider your f status as head of a family credits for dependants dependant or any other oter de de- de- de Must a a wife's income be reported report report- ed if it it is less than tan Yes If either spouse must make a return all aU income of both must be reported reported For example John Brown Brow earned 1400 and his wife wie earned Mr and Mrs Brown Brow must file fe a return because their combined in income income income in- in come exceeded 1500 The received received re re- re- re by Mrs Brown Brow must be included in in- i- i with her eluded in a joint return wit husband or she must file fe a separate separate separate sepa sepa- rate return Of course if i they tey filed fed separate separate separate sepa sepa- rate returns Mrs Brown Brow would take only of the te joint 1500 ony personal exemption enough to cancel out her income income and and leave 1300 to be taken by her hus hus- band Well Wel now that tat those tose lucky people people peo peo- pie who dont don't have to file fe returns have left us lets let's get down dow to busi busi- ness But before you start figur- figur figr- figr tug Ilg your tax tx there tere are several choices to be made In the te first place should youfe you file on a cash or an basis fe Unless you keep books you must file on a cash basis That me means meins ns fie you Include only that tat income which was actually received and those deductions which were actually ac ac- ac- ac tose paid out during the te year For example if i a a salesman earned a commission in December 1941 but it i was not payable to him until January 1942 he woud would not include it in his return for 1941 Should you report for the calendar calendar calendar calen calen- dar year or a a fiscal year Again unless uless you keep books and close them tem at some other time you must mut file fe for the te calendar year That is the te year which began January 1 19 1911 11 and will wi end December December De Do- cember 31 1941 If I you are in i doubt on these two items remember this Nearly everyone everyone everyone ev ev- ev- ev reports report on a cash basis and for the te calendar calenda year |