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Show 4 4- YOUR INCOME TAX 1 In March you will have to file your 1022 Income tax return." Probably you are already beginning begin-ning to worry about it. So the . andard-Exarmner has asked R. A. Conkey. tax consultant of the Central National Bank Savings and Trust company, Cleveland, to writ five articles, covering every income tax problem thoroughly In short questions and answers that ou can readllv understand. BY R. A. CONKEY. Question 1 What is the federal in- j rome tax" Answer It Is a tax imposed by the inited States government upon the' .early earnings of indhiduals, corpo-! rations, etc. Q. 2 On what is Uic tax based? A. Upon the not taxable income Q. " What is meant by net taxable! ncome? A. Gross or total income frflm all sources, less allowable expenses andt leductlons. Q. 4 What items should be includ ?d in gross income? A. All amounts received duiing th--, 'ear from salaries, wages, com in is lions, or from professions, vocations,, rads, businesses, commerce, or prof- I is from sales or dealings in proper-1 tee or securities, also from interest,! ent, dividends, etc. Q. 5 What items are allowable de-1 I, .4 A. All the ordinary and necessary! expenses paid or incurred during the cur In carrying on a trade or bosi-j ness; travel expenses when on busi-'ness; busi-'ness; rent for business property; in , , i teres!, taxes (except income taxes and i taxes assessed for special improve ments), losses sustained In any trans-i trans-i action entered into for profit, or in-CUirod in-CUirod in a trade or business- also bad debts, depreciation, contributions to ! charitable organizations, etc. Q. 6 Every individual having a net 1 Income ior the taxable year of $1000 or more, if lngle or if married and j not living with husband or wire. (2) Every individual having a net income for the taxable year of $2000 or more, U married and living with husband cr wife. (3 Every individual having a gross income for the taxable rear of $5000 ! or more, regardless of his net income. (4) If husband and wife living to : gc-ther have an aggregate net income for the year of $2000 or more, or an ! aggregate gro3P income of $5000 or more; each shall make a separate in ( turn or the total Income shall be Included In-cluded in a single joint return. (5) All corporations must lile a re-j re-j turn regardless of the amount of net income for the year. (6) All partnerships must file a re-i re-i turn for information purposes only The amount of the net profits of a partnership are returnable by (he individual indi-vidual members of the tirm and tax-, tax-, able to them as individuals, whether ! or not the profits have been distrib uted. Q. 7 When is a return not re-. re-. quired? A. (1) If you are single or mar iritd and not living with husband or wife, and your nei income for the year is less than $1000. (2) If you are married and living with husband or wife and your net income in-come for the year is less than $2000. Q. 8 When should returns be llled? A. On or before March 15 unless you keep books on a liscal year basis in which case return should be filed by the fifteenth day of the third month atfer the close of your fiscal period Q 9 To whom should return be made ? A To the collector of internal revenue lor the district in which jour legal residence or principal place of business is located. If you have no le-' gal residence then your return should be made to the collector of internal revenue at Baltimore Write to the collector of your district for blanks upou which return -houM b made, stating the probable amount of your. nPt income so that the proper blanks may be sent Q 10 When and to whom should the income tax be paid'' A. To the collector of Internal rove nuo of your district. It may be paid in full f-t the lime of filing return, or it may be paid in quarterly installments, install-ments, March 15, June 15, September 15, and December IT,, Q. il If a person i i unable to mak his own return who should mako it for bim? A. A duly authorized agent, guardian, guar-dian, or other person charged with the care of the person or property of such person 'Conkcy's second income tax article I will appear in the Standard Examiner J tomorrow. ) |