The Washington times., 1913-11-01
PUZZLED At RULE
FOR INCOME TAX
School Teachers and Officials
: of District Not Certain If
They Are Exempt.

Are school teachers and officials in
y ashington and other employees of the
municipal government, including the
Z nlmissioners, exempt from the income
tax?
one exemption as outlined in regula-
lions issued by the Treasury Depart
N, ut last night provides that the COM
Dersation of all officers of a State or
s4ry political subdivision thereof paid
y any State or a subdivision thereof,
hall be exempt except when such COM
PC nsation is paid by the United States
GOvernment. No mention is made of
he District of Columbia and the Terri
tories. Would the half and half princi-
pal as applied TO local expenditures de-
1rive municipal officers OF any exemp-
riun they night otherwise enjoy?
The regulations issued by the Treas
py Department last night relate to the
withholding of incomes at the source,
he provision of the law that is effective
and active today.
Treasury Department officials declare
hat the regulations for the collection
Of the tax so far eXpounded are simple,
and can be easily applied, but despite
ibis fact there is much confusion in
many quarters, particularly in the lay
mind.
Personally Responsible.
Il was made clear in the regulations
issued last night that doctors, authors,
farmers, merchants. agents compen-
sated on the commission basis, inven-
kors, small business men, and other
professional persons will be responsible
|for the payment of their tax.
It is provided in the regulations that
/ the income of an individual that is not
|fH ed or certain, and payable at stated
&c Ind
Ito amount or time of accrual. shall be
withheld at the source, but shall be re-
turned and the tax paid thereon by the
Individual.
The individual must take personal re-
ItuTn of all income for the year, pro-
|vided such income equals or exceeds
|ss 900. For example: when a lawyer
receives a retainer of $500 as special
|fee. a deduction therefrom shall be
Rmade by the payor. but when a lawyer
receives retainer OF *S,eOo per annum; ~ m
land the exemption claimed is 1900
81 go of such income would be taxed and
|the tax retained at the source"
Tax for the present year Will be col
|leCted for five-sixths of a year or from
|N arch /, last. Consequently exemptions
claimed will be allowed at hve-slxths OF ,
Those fixed.
THE salary of the present President
III the United States during his term of
|oTice. is exempted from the income tax,
las is that of the judges of the supreme
and inferior courts of the country.
The normal tax of one per cent shall
Cbe withheld at the source and payment
made to the collector of internal reve-
nue as provided in the law. No other
person, firm or organization in whatever
lea pacity acting, having the receipt, Gus
tody or disposal of any income shall
be required to again deduct and with
hold the normal tax of one per cent
thereon, provided, that a certificate in
form provided has been sworn to and
filed with the collector of internal reve-
nue. -rs.--
person who has an income the
q mount of which is to be withheld at
tie source, must file certificate claim
ing the exemptions to which he or she
is entitled as married or single.
Where a husband and wife live to-
gcther and only one of them has an an
nual income liable for the normal tax
OF l per cent, then the husband or wife,
v 10 has the income, shall make the re-
turn and pay the said tax and may
..aim and deduct an exemption OF
But If husband and wife live to-
Eether and each has an annual income
liable for the normal tax Of per cent.
then in that event they shall make
scparate return. and the A.000 exemp-
t5nn allowed to husband and wife
when living together, NAV be claimed
and deducted by either the husband or
the wife, as they may mutually agree,
or the said exemption shall be prorated
J tween them. But the single exemp-
Ron will be allowed.
Must Certify As To Income.
Business men who are taxable, and
who claim the normal exemption must
appear before a collector and certify as
70 their income during the year.
All money given away, or donated to
any person or cause will be included
Rs a part of the income for tax purpose.
80 person will be permitted to duck
b. giving sums to wife or family.
Any attempt by any person to evade
Or defeat the purposes of the income
AK is made punishable bv a fine not
Exceeding 5000 and Imprisonment not
exceeding one year.