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Show Income Tax William J. Korth, Collector of Internal Revenue, Salt Lake City. 1. What Federal Tax for must be filed by January 15th? Your 19-io Declaration of Estimated Taz tor an amendment of your 1915 Declaration.) De-claration.) 2. Does everyone have to file a declaration? No, This filing should not be confused with tiie regular time for filing annual income tax returns, which must be tiled not later than March 15. 3. Who does have to file January 15? Three groups as follows: (a) farmers, (b) persons who filed a 1945 Declaration of Estimated Tax Dut wisli to change their estimates id persons who should have filed a 1945 Declaration but have failed to do so. 4. Did everybody have to file a 1945 Declaration? No, only persons whose wages last year exceeded $5,uu0 plus $5UO for every exemption exemp-tion except their own and persons who had over $100 income outside of wages from which tax was withheld with-held (asuming their overall income was at least $500). 5. What are some examples? A wageearner with a wife and one child has two exemptions besides his own, and if his wages exceeded $6,000 ($5,000 plus $500 plus $500), he had to file a 1945 Declaration. Also required to file were merchants, mer-chants, landlords, lawyers, doctors and others who received income from which tax was not withheld. 6. Why is January 15 a special date for farmers? Other taxpayers were required to file declarations last March, but the law specifically specifical-ly permitted farmers to wait until the next January 15. 7. If I must file a 1945 Declaration of Estimated Tax on January 15, what form should I use? You have a choice between filing an estimate esti-mate on Form 1040-ES and filing your annual income tax return on Form 1040. You can get either form from the nearest collector of Internal Revenue. 7. What form should I use to change an estimate I filed last spring? You have the same choice between Form 1040-ES and oFrm 1040. If you use Form 1040-ES, write the .word "amended ' at the top of the form. 9. What is the difference between Form 1040'ES and Form 1040? Form 1040-ES is a special form for estimating tax. Form 1040 is the regular blank for filing annual tax returns. 10. How can I decide which form is best for me? If by January 15, you do not have exact figures on your 1945 income and deductions, it is best that you use Form 1040-ES. 1040-ES. In that case you will have to also file your regular 1945 return by March 15. If you are in a position posi-tion to file your regular return as early as January 15, you can file Form 1040 then and it will serve as your Declaration and also as your return. 11. Does the new tax law, passed by Congress a few weeks ago, change any of this procedure? No, your declaration or return is for 1945 and the new law applies only to income received in 1946. 12. Do members or veterans of the armed forces have to file declarations? declara-tions? Not as to their pay for active ac-tive service in the armed forces (except regular officers serving within the United States.) But, if they have any civilian income, it is treated the same as the income in-come of any other taxpayer. 13. Suppose I am one of the taxpayers tax-payers who must file a Declaration Declara-tion of Estimated Tax on January 15, how do I estimate my tax for last year? Estimate your income for 1945 and then figure the tax by the same method you use to compute your exact tax on your annual return. 14. Are there any special worksheets work-sheets or tables to help me estimate? esti-mate? You don't need any special sheets. Use a copy of the regular return blank, Form 1040. 15. If I use the regular return blank, Form 1040, to figure my tax, can I file that instead of an estimate form? If you fill it out like a regular return and use exact figures (not estimates), you can file Form 1040, and it will serve both as the declaration due now and as the retrun due March 15. 16. Part of my tax bill is paid through the tax deductions my employer em-ployer makes from my paycheck. Do I have to pay the estimated tax on top of that? You pay only the. difference between the withholding with-holding tax and your total tax. 17. If I am changing an estimate and have already paid some install ments, how do I take credit for those payments? If filing Form 1040-ES, write the total amount of your payments on line 5. If filing fil-ing Form 1040, write the amount on line 7 (B), page 1. 18. Suppose my estimate last March was far too high, and I have already paid more than my correct tax for 1945. Can I get a refund of the difference? Yes, by filing your regular return and showing the amount of overpayment overpay-ment in line 9, page 1, Form 1040. 19. Assuming I had enough income in 1945 to be required to file a declaration, de-claration, is there a penalty for failing to file or pay the tax due on a declaration? Yes, The penalty is 5 percent of the amount due and unpaid, plus 1 percent for each . additional month the total penalty pen-alty not to exceed 10 percent of the amount unpaid. 20. Is there a penalty for estimating estimat-ing my tax too low? Yes, but only if you underestimate your tax by more than 33 1-3 percent if you are a farmer, or Dy more than 20 percent if you are not a farmer. 21. How much is the penalty for underestimating? The penalty is 6 percent of the difference between be-tween your esimate and the correct cor-rect tax (but not to exceed the total difference between your estimate es-timate and 66 2-3 percent of the correct tax if your are a farmer, or the total difference between your estimate and 80 percent of the correct tax if you are not a farmer!. farm-er!. 22. Suppose I filed my 1945 declaration declar-ation last March but now find it is underestimated by more than 20 percent. Can I avoid the pen- |