Show FEDERAL INCOME TAX IN 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 15 1918 1018 if you tire lire single and your net income for 1917 1017 was as 1000 or more you must file a return it if you were married and ihling ing with wife or husband and had a net income of 2000 or more tor for 1017 you must file a return husbands and cifes income must be considered jointly plus income of minor children income of a minor or incompetent d derived rived from a separate estate must be reported by his legal representative severe penalties are provided for those who neglect or evade the law for false or fraudulent return there is a penalty not exceed exceeding iuS 2000 fine or years imprisonment or both plus per cent of tas tar for failure to make return on or before april 1 1918 fine is from 20 to sloko 0 plus 50 per cent of tas tar due returns must be filed with the collector of internal revenue of district in bilich jou live an agent may file return for a person walo is ill absent from the country or otherwise incapacitated each return be signed and worn or affirmed by person execute binl it single persons are allowed 1000 exemption in computing normal tax A married person living with wife or husband is allowed 2000 exemption plus for each dependent child under 18 A head of family though single is allowed 2000 exemption if actually supporting one or more relatives returns must show the entire amount of earnings gains and profits received during the year officials and employees are not taxable 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 tile the U S is exempt from federal income tax and should be omitted interest on united states gove government m bonds Is also exempt except on individual holdings of liberty fours in excess of 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 return 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 for real or personal property sold Is not income but the profit realized thereon Is la income for the year of sale amounts received in payment of notes or mortgages Is not income but the interest on oil such notes or mortgages is taxable income from the lie entire gross income certain allowances are made in arriving at the net income necessary expenses actually paid in the conduct of business trade or profession may be claimed A farmer can claim payments for labor seed fertilizer stock feed repairs ou on buildings except his dwelling repairs of fences and farm machinery materials and small tools for immediate use the amount of rent paid for a farm may also be claimed as a tenant farmers expense payments for live stock are allowable it if boight for resale but it if bought for breedi breeding D purposes cattle are an investment not an expense and cannot be allowed A storekeeper can claim amoun amounts ts pair paid for advertising clerk hire telephone water light and fuel also drayage and freight bills and cost of operating and repairing wagons and trucks A physician enn can claim cost of his professional supplies rent help belp telephone expense of team or automobile used in making professional calls and expenses att aiding qI ding medical conventions vent ions A dentist can claim similar items except team or auto expense which are not necessary in his profession expenses that are personal or connected in any way with the support or well being of a 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 investments 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 taxes inheritance ance taxes and assessments tor for local lin im pro cements losses sustained in business or through gh fire storm or shipwreck or by theft except when compensated by insurance or otherwise wear 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 educational organization to the extent of 15 per cent of our net income |