OCR Text |
Show Must Pay income Tax on Bonuses Only single persons whose net income in-come for 1920 was less than $1,000 'and married persons living with hus-band hus-band or wife whose net income was Hess than $2,000 are exempt from the requirement to file an income tax return. The obligation' to consider his own lease arid ito file an income tax return on time, if one is due is laid squarely square-ly on the shoulders of every resident jot the United States. Guesswork is barred. The returns are sworn statements, state-ments, and accuracy is essential. Salaried Sal-aried persons and wage earners must ascertain the tactual compensation received. Bonuses, shares in the profits of a business, values of quarters quar-ters and, board furnished by an employer, em-ployer, and other items of compensation compensa-tion for services must be included. Returns must show both gross and net income. Gross income includes practically every dollar received by the taxpayer during the year 1920. 'The net income is determined by subtracting sub-tracting from gross income certain deductions specified by the revenue 1aw, and fully explained in instructions instruc-tions on forms-1040-A and 1040 for filing returns. . Business expenses are the principal princi-pal allowable deductions in computing comput-ing net income. The law specifically specifical-ly prohibits the deduction of household house-hold and living expenses. . Typical deductible business expenses are tor salaries, labor, cost of merchandise, raw materials and supplies, rent, repairs, light,, power . delivery, selling cost, advertising, and insurance. Doctors, Doc-tors, lawyers, and like professional men may deduct -from their gross income in-come dues paid to professional societies socie-ties and subscriptions to professional journals, rent paid for offices, amounts paid for light, fuel, water, and telephone used in such offices and the wages paid to office assistants. assist-ants. This year, as last, the tax may h paid in full at the time of filing the return, on or before March 15. 1921. or in four installments, the' first of i which is due on or before March 15. 'Ihe second on or before June 15. the . I third on or before September 15. the j third on or before September 15. and - the fourth on or before December 15. The return must be filed with tho -jrollector of internal revenue for the ."j district in which the taxpayer lives, -j Heavy penalties are provided for fail--! ure or wilful refosal to make a re-I re-I turn and pay the tax when due. |