The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-11-11
INCOME TAX PROBLEMS
Questions Answered By Louis Murphy Collector of In
ternal Revenue for Iowa

the tax. But the debtor is required
to deduct it unless the bank shall
present certificate setting out that it
is exempt from the payment OF tax
because it is bank, and as such
taxed on its net earnings. There is
prescribed certificate form for this
also.
Fifth Until November Is upons
presented to a debtor need not be &C
companied by certificates in any
form except the form of temporary
certificate prescribed. II the tax has
been taken on at the source on any
Sof a banks bonds the bank should
I'LL out temporary certificates and
send them TO the source to be attach
ed to its COUPON It then has until
February Isls to send certificate
to the source indicating 1t is an or.
ganization not subject to tar on in
terest at the source. when source will
return tax withheld to it. Or having
ownership certificates, which are also
claims of exemption from the tax at
the source, 1t may now attach them
to its coupons. it must do this after
November 16.
@. What is the method Of estab-
fishing exemption?
A. From total Income first deduct
specific exemption, Of $4,000 $4,000
IL married). Then the necessary ex
penses actually paid In carrying on
any business. not including PERSONAL
living, or family expenses: second,
all interest paid within the year by
a taxable person or indebtedness:
third, all national, state, county
school. and municipal taxes paid with
in tass year. no. including Ahpse as
sessed against local. benefits fourth,
losses actually sustained during the
year incurred in trade or asisiag
from fires, storms or sbipwreck. and
not compensated for by insurance or
otherwise. fifth, debts due to the tax
payer actually ascertained 10 be,
worthless and charged of within the
year; sixth, a reasonable allowance
for the exhaustion. wear and tear o.
property arising ont OF its use or en-
ployment in the business, not to ex-
coed. in the case OF mines, per c. mt
UNI of the gross value at the mine o.
the output for the year foT which tn
computation is made but no deduc-
ton shall be made for any amount
OF expenses of restoring property or
making good the exhaustion thereof
for which an allowance is or has
been made: Provided, that no deduc1
tion shall be allowed for any amount
paid out for new buildings, p=rma-
nent improvement S, or betternents,
made to increase the value of any
property or estate; seventh, ths
amount received as dividends upon
the stock or from the net earnings Of
any corporation, joint stock company,
association, or insurance company
which is taxable upon its net inc1 me
as hereinafter provided; e ghth, thu
amount of income, the tax upon which
has been paid Or withheld for pay.
ment at the source OF income. un5er
the provisions Of this section, pro-
Yided that whenever the tax upon tins
income of person is required to be
withheld and paid at the source as
hereinafter required, il such annual
income does not exceed the sum of
$4,000, or is not fixed or In, or Isl
indefinite az to amount or tine OF ac-
crual, the same shall not be dedus ted
in the personal return OF such person.
q. Must one establish exemption
in order to be sure that income tax
will not be deducted from his wages?
A. Unless. he receives more than
$4,000 a year deduction. viii not be
made at source this year; and here
after. only In event he receives more
than $4,000 year, and does not file
with employer proof of exemption.