The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-10-15
Special Features of New
Assessment.
IT AFFECTS ALL,u. S. CITIZENS
Everywhere. and Foreigners
Residing Here. AS To
Net Income.
A SKETCH OF THE NEW LAW

ReturuS Illaue tHuS Tar tO the ln-
ternal Revenue Service indicate that
425,00O persons in the United
States will be affected by the in
come tax.
The incomes covered are:
Those of all citizens of the United
States residing at home or abroad.
Those of all persons residing in
the United States although not cit
liens.
All net incomes from property
and from every other business,
trade or profession carried on in the
United States by persons, aliens or
citizens. residing elsewhere.
The tax to be paid is:
Normal tax. 1 per cent per annum
ceeding $4,000 for individuals and
above $4,000 for husband and wife
living together.
Additional tax, l per cent on net
incomes between $4,000 and $780,
600; 2 per cent on incomes between
$4,000 and $4,000; 3 per cent on
incomes between SIS 700, sand $780,
900; 4 per cent on incomes between
100000 and 100000: > per cent
on incomes between $250,00O and
$50O,OOO; 6 per cent? incomes ex-
ceedng 100000.
Included in Net Income-All
gains, profits and incomes derived
|, from salaries, wages or compensa-
ton for personal services OF any
kind. professions, business, trade or
-commerce. sales or dealings in prop
erty. interest, rent, dividends and
securities. q
7 Deductions Allowed - Necessary
expenses actually incurred in carry
ing on any business from which the
income arises.
All interest accrued and payable
within the year on Indebtedness.
All National. State. county, school
and municipal taxes.
Losses actually sustained during
the, year in connection with the bus
mess from which income Is derived
Debts, actually ascertained to be
worthless. r
Deductions Not Allowed-All per-
sonal. living and family expenses.
Taxes assessed against local bene-
hts, All expenses of restoring prop
erty or making good the exhaustion
thereof for which an allowance has
been. made. Amounts paid for new
buildings. permanent improvements.
or betterments made to increase the
value of any property
observation-disclosures upon the
obligations of State or any polit-
ical subdivision thereof.
Interest upon the obligations of
the United States and its posses
sions.
The compensation of the present
President during the term for which
he has been elected.
The compensation of Judges of
the Supreme and Inferior Courts of
the United States now in Office.
The compensation of all officers
and employees of State, or any po-
litical subdivision thereof. but not
including Senators and Representa-
tives in Congress.
Three thousand dollars shall be
deducted from the net income above
ascertained OF each person and $4,-
600 for husband and wife living to-
gether.
The taxpayer must file a return
with the Internal Revenue Collector
by March !. 1914. showing all
sources of income and the deduc-
tions to which he IL entitled.
All incomes are to be computed
by the calendar wear. but taxes for
the first year viii be levied only
from March !. 1913. to December
3 next.
Notification OF assessments win be
sent out bv the Government before
June next.
Taxes must he paid nv June 80.
Failure to file a return means
fine OF from SO to 5000.
A fraudulent return makes the
taxpayer liable to fine OF $4,000 or
for one year. or both.