Show I I Income Tax Computation Simple The nc Revenue Act of or 1941 1911 provides a n. simplified method of ot computing income tax In the case of individuals whose gross Income is derived wholly ly lj from fromn salary salan wages or other compensation compensation compensation com com- for personal services dIvidends di dividends dI- dI Interest rent annuities or royalties and does not exceed 3 3 A new Form has been provided for taxpayers who are arc en entitled entitled entitled titled to and elect to use such method A table on the reverse side of this Form shows the amount of tax lax on Increasing amounts of ot gross I Ilax Income after the proper allowance of or for each dependent If an any rho tax lax under the simplified method Is the same for each 2500 block of gross Income and the taxpayer tax tax- tax 1 I payer need only ascertain In which II block his gross Income less allowance allowance allowance allow allow- ance for dependents falls to determine determine determine deter deter- mine his tax A fiat flat of 10 percent t has been made in arriving at the amount of tax shown in the table ta-ble for deductions such as charitable charitable charit charit- able contributions and taxes faxes paid so that the taxpayer who uses this method does not list these but gets an nn automatic deduction of 10 per pel cent I I I I I j I I I Under the simplified method thE th status tatus of a person on the last da day daj of the taxable year jear is the governing factor in det determining the exemption level Imel for single persons and married persons not living with husband husband hus bus band or 01 wife wiCe and 1500 for Cor married married married mar mar- ried persons living together as well as the credit for dependents A husband and wife living to together to- to gether g on the last day of the taxable tax tax- ax able year ear may file separate returns on Form if the gross income of f each Is from the prescribed sources es and does docs not exceed orthey orthey or orthey they may file a single joint return on that Form if their combined in income income In- In come is from the prescribed sources and does not exceed The use of ot the simplified method is optional with th the taxpayer but once an election has been made for any year it is irrevocable for that year If a taxpayer files les a return under the simplified method for the taxable year he lie may not thereafter file a return under the general provisions pro pro- visions of the law for that year Conversely Conversely Con Con- if he files a return under the general provisions for any taxable taxable tax tax- able year he may not thereafter file filea a return under the simplified method for that year car However a new election eJection is allowed for each succeeding succeed succeedS succeeding ing lug taxable year |