OCR Text |
Show THIS TELLS HOW TO I FIGURE INCOME TAX Squarely Up to Every Individual :: to Get Busy by March 15 or Suffer Penalty. ! "Don't wait until the final due date, j March 15, for pulng your Income Tax J and making your return. Avoid the : lost minute rush. Any person can flg- j ure out his liability today as well us be : can next week, and if there Is any point on which he needs advice he can now get In touch with a Revenue man." I This word of advice is from Wllllan ', C. Whaley, Collector of Internal Reve- j nne, Helens, Mont., who Is collecting J the Income Tax tn Montana. Idaho and I'toh. Collector Whaley Is giving without with-out charge every old of his office and his enlarged field force to help the poo- J pie get their payments and their re- turns In by March 15th. J But the Income Tax men will not l pull your door-bell or your cont-tnlls, J according to the Collector's announce- ment. It Is squarely up to every Indl- j vldual to figure out hts own case and i to get busy If he comes within the ', scope of the new Revenue law. Did You Earn This Much? Kvery unmarried person who received re-ceived Income averaging $19.25 a week during 101 1 and every married couple who Jointly received Income averaging $38.50 a week should secure at once from the nearest Deputy Collector or the nearest bonk u blank Form 10-10 A. That form contains the Information he will need to enable him to flgure his correct net Income and any tax that he owes the government. The low requires that every unmarried unmar-ried person who hod a net Income of $1,000 or over and every married person per-son whose net Income was $2,000 or over (Including the Income of husband or wife ond the earnings of minor children. If any) must make a return on or before March 15th. And this requirement re-quirement does not hinge on whether the person owes a tax. Taxable Income. An Individual must Include under gross Income all gains, profits ond Income In-come derived from salaries, wages or compensation for personal service of whatever kind and in whatever form paid or from professions, vocations, business, sales or dealings In property of oil kinds. Interest, rent, dividends or profits derived from ony source whotever Very few Hems of income are exempt. I Deductions include ordinary and necessary nec-essary business expenses, Interest paid or accrued on Indebtedness, tuxes of all kinds except Federal income and excess profits taxes and assessments for local benefits, losses actually sustained, sus-tained, debts ascertained to be worthless worth-less and depreciation on buildings, machinery, ma-chinery, fixtures, etc., used In business. ( A further deduction Is allowed for contributions con-tributions to corporotlons opernted for religious, charitable, scientific or educational edu-cational purposes or for the prevention of cruelty to children or animals to an Hinount not exceeding 15 per cent of the taxpayer's net Income us computed without the benefit of the contribution deduction. The taxpayer la not allowed to deduct de-duct any personal, living or finally expense, ex-pense, any amount spent for Improving property or any expense of restoring property or muklng good Its exhaustion exhaus-tion for which an allowance Is claimed under depreciation. Figuring ths Tsx. Itefore figuring the normal tux the dividends are deducted as crodlts from net Income, together with the personal exemption. As In previous years, dividends divi-dends of domestic corporations ore exempt ex-empt from normal tax when received by the stockholder. The normal tax rates for citizens und residents ore as follows: On the flMt $4,000 of net Income In' excess of ihe credits the rule Is 8 per cent; on .my further taxable Income the rule ts 12 per cent. The surtax rates apply to net Income In-come of each iniliMdiial In execsfl of $5,000. The personal exemption and the dividends nre not deductible before computing surtax. In the case of returns re-turns by husbund aud wife, the net In oine of each Is considered separately I In computing any surtax ilnu may be due. Form 1O10 should be used for Making returns of net Income exceed-li.it exceed-li.it $5,000, und the Instructions on that ' form will show bow to figure the surtax. sur-tax. Business Houss Returns. Kmployers and others who paid wages, salaries, rents, interest or similar sim-ilar determinable gains in an amount uf $1,000 or over during 1018 to any person must file an Information return with the (iovcrniuent. Itlanks may be secured from the Collector. Kvery partnership must file a return 1 showing Its Income and deductions and j the name and address of each partner, I with his sbure of the profits or losses I during the past year, Personal servlcs corporations will file similar lufonua-! lufonua-! tlou for iuia |