Show Your Yo it 4 Income Tax So Xo 6 Of Or the of taxpayers who file returns for tor the tho year 1926 1326 the vast ao ae entitled In nd addi addition addi- addi l- l tion ion to tho the personal exemption ot of for tor married persons persona and heads of ot families 1 1600 1500 for single persons anti and 11 i crt dit tor for each ench to 1 a further cre credit lt ot of 25 23 per cent o of th the tax on their earned arned net income mome Correctly to compute this the taxpayer first must the lie amount of oC tax which would bo be payable with with- without with without out the earnol income credit I Front From the tho amount of ot the tho ho tax tar 2 21 per cent Is 18 to b be de deducted th the 1 balance being the amount amunt of tax due clue In tile the allowance of oC tho the 25 per percent percent percent cent credit the surtax was taken Into consideration for tho first time under U-o U U revenue act ot of 1926 The Tho maximum maxim amount which may be d as us earned Income I Is Increased from rom to 20 20 Earned income is S as wages salaries professional fees feos and other amounts received as compensation for personal sery- sery services tees Ics actually ren rendered red However ull 11 li net Income up to whether actually earned or not Is Ted carn carpec earned Income for tho the purpose of ot the tho 25 21 per cent credit A taxpayer may hivo bavo reo re- received in 1926 a a salary of oC 2400 and from a rea real estate state transaction or sale of stock a net profit of oC 2600 Nevertheless the entire In is considered con as earned 1 Income and the t tax payable by a taxpayer unmarried and with no in 11 such suet case caso Is com com- comp cont- cont computed p ted as follows a Net Nt Income LeN Lee personal exemption Balance taxable at 1 I 3 4 parcent vcr per percent cent ent Vt 1 per cent of 1500 Less Ley f of 1250 50 earned corned Income credit 1313 Balace Dalaco of tax ax payable Other aho how toi to i compute correctly the earned income In- In 1 come como credit will wili be given n |