The Birmingham age-herald., 1913-11-05
Items Not to Be Withheld

The following are items upon which the
tax Is not to be withheld at the source:
l. Dividends on capital stock, or from
the net earnings of corporations which
are themselves subject to and pay the
tax.
2 Proceeds of life insurance policies
paid upon the death of the insured
j. income of an individual which is not
liked or certain, and not payable at
stated periods, or Is indefinite or irregu-
lar as to amount or time of acrual, shall
not be withheld at the source but shall
be returned and the tax shall be paid
thereon by the individual
Income derived from the following pro-
fessions and vocations come under this
head:
FARMERS. merchants, agents. compen-
sated on the commission basis, lawyers
DOCTORS authors, inventors and their pro-
fess1onal persons. Such persons snail
make personal return of all their income
provided their total income from all
sources exceeds $1,000.
A. The value of property acquired bv
gift, bequest, devise or descent: the in
come derived from such property is tax
apie IL II exceeds $1,000, but the property
itself is not construed to be an income.
o. interest upon the obligations of a
state or political subdivision thereof, and
upon the obligations of the United States
also the judges of the supreme and in
ferlor courts of the United States, and
the compensation of all officers and en-
pioyes OF state or political subdivision
thereon
This exempts from the income tax all
salaries paid to an individual by a state
or any political subdivision thereof: this
would include salaries of state. county
and municipal officers. including the
salaries of public school teachers and
special compensation paid by states or
political subdivisions thereof for profess
sional services, whether in the shape of
salaries or special fees.
Exemptions for 1913
THE Withholding agent is not reou,ired
TO deouct and withhold prior to Novem-
per l. 1913, the normal tax of 1 per cent.
for which the individual Is liable
Whenever the total amount of income
paid to any person by the withholding
agent after October 81, 19l3 shall be in
excess OF $1,000. then. and in that event.
the withholding agent shall be liable for
and shall withhold and deduct the tax
on the whole $4,000 and the excess there
OF. unless such person from whom the
same is withheld shall file q claim for
the exemptions as allowed by this act
the amount of exemptions allowable being
tfor the year 1879. s2500 for the period
from March / to December 81 1913, for
an unmarried man. and S3333 33 for a mar
ried man or woman; the exemptions so
allowed being flve-tenths of the exemp-
tions allowed for full calendar year.
I'm the event such claim of exemp-
tions is filed. the Withholding agent shall
withhold only the tax in excess of said
exemptions of $500 or SO, 1893 1888 CAS- the case
may bel for the period above referred
| to in 1913.
When the income sccruing to an in
tividual during the period from March
to December 81, 1918, aggregates s300t
| or more, such individual Is required to
| make a return of this income
The Withholding agents referred to are
| not required to withhold any funds be-
| longing to such individuals prior to No
| vember !, 1918. Whenever the tota
amount of income paid to any person
| by the Withholding agent on and after
| November l. 1913. shall be in excess OF
| 5000, then the Withholding agent shall
deduct and withhold the tax on the whole
! $1,000 and the excess thereof, unless q
claim of exemptions is nled with him, In
| which event the tax in excess of exemp.
| tions only shall be withheld.
| IF the total amount of income paid
| to any person on and after November
| l. 1913. to- and including December 81
| 1918, by the Withholding agent Is less
/ than $3000 then in that event he shal
not withhold the tax or any portion
| thereof