Show 1 t INCOME COME II nii w V 0 t J TAX IN BRIEF t. t L 1 Th The Requirements eq Boiled B led down I 4 1 V i 1 I Bus Bus' Bus J i u j f Returns must be or before t AprIl 1 VM I T r T Tax Tai du due il lie n or or ort oil or orY or Y Jun Ij r r If you iou you are ars ar Angle lingle and and nd your net in- in for come for 1017 iO ibO or more you must file a return Sin If It you were married and living with wife wife or or husband and net income income in in- k come of ot 2000 or n moro o Q for tor 1017 you a n return turn 4 I Husbands Husband's and wife's Income must be c considered red joi jointly plus l income c me of ot min minor r children cl 1 dren r Income of ot a minor or Incompetent derived from a separate estate must be be reported by bl his le legal al r pr s nta tive v Severe Sere S ere penalties ate are provided t for fer r rt tt those who n neglect or evade the law For Jor f false or fraudulent return there Is Is' Isa a u a. a penalty p nalty not exceeding 2000 2900 fine or years year's Imprisonment or both plus plu per cent of tar tax y r For failure to mako make return on or 4 4 April 1 I 1018 1318 fine Is from 20 to 1609 1009 Plus 50 per rcpt of tax due Returns Return's must b be filed with the ColV Collector Collector Col Col- S V lector of Internal Revenue of district r In wl vh Ich Ieh you rou lire he y yf f An agent may file return for tor a per per- person person cry son who Is Ill absent from the country p or otherwise Incapacitated capacitated r Each return must be signed and S sworn sworn or affirmed by person arson r on In Ing lt It t r Single persons are allowed 1000 exemption In computing normal tax A married person living with wife or husband Is allowed 2000 exemption r tion plus for each dependent child under 18 lit k A head of family though single e is V all allowed wed 2 2000 oo exemption If It actually supporting one or more relatives f Returns et must shola the entire amount of earnings gains and profits 1 rec received l ed during the year Officials and employees are not taxable taxable taxa taxa- taxa- taxa taxable ble on the salaries or wages received s from a tl state county city or town in inthe Ind d the the Interest on state and municipal bonds issued within the U U. S. S Is exempt exempt ex ex- LV empt empt from federal Income tax and andt t 4 f should be omitted Interest on United States government government government govern govern- ment bonds Is also exempt a except on V individual holdings of ot LibertY Fours In excess of par value V f r V D Dividends are are not subject t to normal u tax taa but must be reported and Included In net Income L Gifts and legacies are not Income V V and should not be Included oh on the reV re reo return turn of the beneficiary Life Insurance received as a beneJ benefi beneficiary bene bene- J fl fi iary ary or as premiums paid back at fi maturity or surrender of polley is not Income m r r Payments received for ren real or personal personal peru per per- u property sold is not income but Ule profit realized thereon is income for for the year of sale Amounts received in in payment of V notes or mortgages is Is not income but the Interest on such notes or mortgages mortgages mortgages mort mort- gages is taxable income From the entire gross gross Income certain certain tain tamn allowances are made in arriving t I. I at the net Income Necessary expenses actually paid In Inthe Inthe inthe the conduct of business trade or r pro- pro V may be claimed A farmer can claim payments for labor seed fertilizer stock feed repairs re ra- pails pairs on buildings except his dwelling 4 repairs of ot fences and farm machinery y ma materials and small tools for far immedi immedI- immediate ate use The amount of rent paid for a farm may also be claimed as a a. a tenant farmers farmer's farm tarm- u ers er's expense V Payments for tor live e stock are lre allowable shown allowa V ble hie If bought for resale But If bought for breeding purposes cattle cattie are an investment Inv investment in In- v vestment not an expense ense and md cannot I be allowed k A storekeeper can claim amounts i paid for advertising ud clerk hire telephone telephone telephone tele tele- phone water light and fuel fuei also drayage dray- dray V age ace and freight bills Mils and cost of operating op op- r and repairing wagons and and- 4 trucks A physician can claim frost ost of his professional supplies rent office help telephone expense of team or nr automobile automobile automo- automo automo automo- V bile used fa fn making professional calls r and expenses expenses attending medical con con- A dentist can cap claim similar Items i I except team or auto auto- expense which are not necessary In his profession s Expenses Expense that are personal or connected con can r In any way with the support or orwell I wen well well being of a person or family are t not allowable f f The Ohe he c costs of machines Instruments i j vehicles vehicles vehicles' or Implements that are more t. t or less less' permanent in character are not k allowable as an expense They are InY In In- V In-V Y vestments Interest paid on a mortgage or other r personal indebtedness is allowable on ona a y a personal return V r. r V All taxes paid within the year can V be taken ou out on n a federal return except except ex ex- federal Income taxes Inheritance taxes and assessments for tor local im Im- ments Losses sustained In fn business or orI I through tire lire storm or or shipwreck ck or by theft except when compensated ted by In in- insurance Insurance or e. e Wear and tear of rented buildings or ort 1 t machinery used In business may be claimed You can also claim the amount mount paid u t to the Red Cross and to other charitable charitat charita charlta- t A tj ti ble g I rU religious or or ore e 99 ca oval n r t II of 1 I |