Show FEDERAL INCOME BRIEF the requirements boiled down for busy folks returns must be filed on or before april 1 1918 tax due may be paid now or on or before june it you were single and your net in come for 1917 w as 1000 or more you must file a return it ou were married and ihling with wife or husband and had a net in come of 2000 or more for 1017 you must file a return husbands and alfes income must te considered jointly plus income of minor children income of a minor or incompetent derived from a separate estate must be reported by his legal re presenta alve severe penalties are provided for those who neglect or evade the law for false or fraudulent return there Is a penalty not exceeding 2000 fine or years imprisonment or both plus per benl of tax for failure to mike return on or before april 1 1918 fine Is from 20 to 1000 plus 60 per cent of tax due returns must be filed with the col lector of internal revenue of district in which you live an agent may file return for a per son who Is absent from the country or otherwise incapacitated each return must be signed and sworn or affirmed by person execute single persons are allowed 1000 exemption in computing normal tax A married person living with wife or husband Is allowed 2 exema alon plus tor each dependent child under 18 A head of family though single Is allowed 2000 exemption it actually supporting one or more relatives returns avat show the entire amount of earnings gains and profits received during the year officials and employees are not taxa me on the salaries or wages received from a state county city or town in the united states interest on state and municipal bonds issued within the U S Is ex empt atom federal income tax and should be omitted interest on united states govern ment bonds Is also exempt except on individual holdings of liberty fours in excess of 5 par value dividends are not subject to normal tax but must be reported and included in net income gifts and legacies are not income and should not be included on the re turn of the beneficiary life insurance received as a bene or as premiums paid back at maturity or surrender of policy Is not income payments received tor real or per bonal property sold Is not income but the profit realized thereon Is income tor the ear of sale amounts received in payment of notes or mortgages Is not income hut the interest on such notes or mort gapes Is taxable income from the entire gross income tain allowances are made in arriving at the net income necessary expenses actually paid in the conduct of business trade or pro may be claimed A farmer can claim payments for labor seed fertilizer stock feed re pairs on buildings except his dwelling repairs of fences and farm machinery materials and small tools for immell ate use the amount of rent paid for a farm may also be claimed as a tenant farm ers for ve stock are allowa ate tf I 1 ought resale but it bought for breeding purposes cattle are an in vestment not an expense and cannot be allowed A storekeeper can claim amounts paid for advertising clerk hire tele phone water light and fuel also dray age and freight bills and cost of op crating and repairing wagons and trucks A physician can claim cost of his professional supplies rent office help telephone expense of team or automo bile used in making professional calls and expenses attending medical con vent lons A dentist can claim similar atema except team or auto expense which are not necessary in his profession expenses that are personal or con necked in any way with the support or well being of n person or family are not allowable the costs of machines instruments vehicles or implements that are more or less permanent in character are not allowable as an expense they are in vestments interest paid on a mortgage or other personal indebtedness Is allowable on a personal return all taxes paid within the year can be taken out on a federal return except federal income tates inheritance taxes and assessments for local tm losses sustained in business or through fire storn or shipwreck or by theft except when compensated by in aurance or otherwise ear and tear of rented buildings or machinery used in business may be claimed you can also claim the amount paid to the red cross and to other charitable religious or organization to the extent 0 IS per cent ai your i et occia i t y A fa sta |