The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-13
NOT TIME YET TO
START WORRYING
Next January Will Do for Per
turbation Over Your
Income Tax.
NOT SO MUCH TROUBLE.
Mr.. Plain Citizen Will Have
Little Difficulty in Figuring
Out His Status.

washington, July 12.-While II might
take philadelphia lawyer" to figure
out the intrjcacies of the income tax
law to which every one will soon be
subject, as it applies to corporations
and those with Carnegie and Rookie
Teller incomes, the plain citizen is not
going to have SO much trouble in find
Ing his own status under the new sys-
tenn Of taxation.
The income tax provision OF the new
tariff law as 1t was amended by the
Senate is an appalling and fearsome
collection of technicalities. Young bar
risters. just hanging out their shingles.
ought to find good pickings in advising
clients how the law affects their in
terests, but in the end the Commits
sioner OF Internal Revenue Will have
the last say.
The public mt large need not begin to
worry about it until January 1 next,
and then will have three months i'm
which to find out with their consciences
as to how much of their actual income
they VIII return for taxation. The re-
turns are to be made this year for the
last ten months of 1913 and thereafter
to be made for tho full calendar year.
III YOU have an income of $4,000 for
those ten months or less you need not
worry. If you arc n single person and
the income is over that get out your
pad and pencil and begin to figure. But
II you are married. you need not take
ana II you have one child in addition
TO the wife, not unless your income is
over $4,000. and II there are two chill
dren, $4,000.
But here the exemption on account of
children stops. The poor man with
ten children gets no rebate. although
their upkeep diminishes his income.
Rulc for Corporations Different.
The rule about corporations is diff
ferent and this article deals only with
persons and those having incomes un-
der $4,000. Others would best con-
suit their lawyers II they want to
know the ropes
we'll suppose you are single. with an
income reaching moro than $4,000 for
the last ten months OF 1913? You will
pay ] per cent on all the income In
excess of that $4,000. If married, and
no children. you will pay per cent on
all In excess Of $4,000 up to $4,000
when the law claps on a little more
tax.
Income means gains from whatever
source derived. II you are a profess
sional man then fees from Your prac
tee are included the rents from your
houses. dividends from your stocks. all
must be Jumped to show your net in
come.
Why, If you made lucky turn In
the stock market came out ahead
in years opening OF jackpots YOU
| bridge counts. too. IL you win, but
your losses there will not Offset income
from your salary.
II you are a merchant you are al
lowed 10 offset the money you pay
your clerks. your rent, light etc, but
you cannot charge off on your books
anything on account of your own time
Or services rendered in your business,
nor expenses OF your household
Property Owners Deductions.
If you own property you will be al
lowed to deduct repairs. insurance,
| taxes. etc. from your rents SO as to
show the net income.
II you come into life insurance II
is not taxed until you invest 1t. and
then the income from 1t Is taxed. In
terest on money In the savings bank
must be included in your other in
come and be taxed
If your income is from a salary.
your employer must take the tax out
of your pay envelope some time dur
ing the year and turn it in. The gov
eminent calls this collecting at the
source" In addition you will have to
make statement showing what other
sources OF income you have, whether
your uncle left you a legacy or some
thing like that
IF the collector of internal revenue
gets an idea that you are not making
ruiz return, he can add fifty thousand
or a hundred thousand. as he pleases, to
your supposed income and force you
to go into court and reveal your true
income. SO as to be relieved from the
tax the collector has put on
Aink to Impress Honesty.
The penalties for false returns are
heavy, in fine and imprisonment. the
idea of the law makers being to i'm
press upon the paying public the theory
that honesty Is the best policy. Checks
and counter checks galore prevail. the
idea being to reveal the real income Of
every taxable citizen.
II you own stock IN corporation
which pays dividends that corporation
notifies the collector, and if you don't
make proper return to that effect in
your own declaration you are liable
to be caught.
The collection of the income tax the
first year. for the whole country, Is
estimated to cost about S1.200e00 and
Will require hard work by all the in
ternal revenue officials.