Norwich bulletin., 1914-02-12


 income of $3,00O or more, for the tax able year. It is further provided that Tor the year ending Dec. 31, 1913, the tax shall be computed on the net in- l come accruing from March 1 to De- | cember 31, after deducting five sixths only of the specific exemption and | deductions allowable for an entire 1 taxable year. For the year 1913, con | sequently, the specific exemption aI- 1 lowable is 52,500 or $3.333.33, as the l per cent will be assessed on the total | net income less the specific exebption | Incomes over $200 GOO a year will be 1 subject to graduated super-taxes, as l stated in the blanks.
 The Income Taxable.
 The income to be taxed comprises the amounts derived from salaries, wages or other compensation for per SOnaI services of whatever kind and in whatever form paid: from prefes- SionS, businesses or trades or sales or dealings in property real or personal: from rents and interest on notes, mortgages and other securities. and from gains and profits from partner ship businesses and any other source whatever
 Deductions Allowed.
 If the noraml tax of 1 per cent. has been deducted and withheld at the
 
 if any part of the income Is received as dividends upon the stock or from the net earnings of any corporation etc. which is taxable upon its ret in come. such income shall be deducted ! rom the individuals total net income | for the purpose of calculating the amount of income on which the indi- vidual is liable for the normal tax of l per cent by virtue of this return. Other deductions are allowed on ac- ' n garEr paid in carrying oTf~bUsiness; interest paid within the year on personal in- debtedness: losses incurred in trade or arising from fires, storms or ship l wreck and ont compensated for by in Surance or otherwiSe; debts charged off as worthless, and reasonable al- IoWances for the exhaustion, wear and tear of property arising out Of its use or employment in business: and all state and municipal taxes, not incIud- ing those assessed against local ben ehts. Certain knds of life insurance policies, endowment, annuity and 20- payment policies are also excluded l from reckoning the gross income elig- fble for taxation. Gifts and bequests received in the course of the current year are similarly exempted, although any income from them must be set down.
 Some Things Not Deducted
 Under the head of expenses. those 5~curred for medical attendance, store accounts. family supplies, wages of i domestic servants. cost of board, room or house rent for family or personal use cannot be deducted from gross in- come. In case an individual owns his own residence he cannot deduct the ! estimated value of his rent, neither l is he required to include such esimat- 1 ed rental of his home as an income 1 The farmer must include all moneys l ceived for products and animals sold | and for the wool and hides of animals l slaughtered provided such wool and i hides are sold, deducting therefron i the sums actually paid for the ami 1 mals sold or slaughte~ed. Tn the ease ! 1T professional men, all fees or en1olu- i nents received during the year must be included, together with unpaid ac- ! counts for the year which are good ! and collectabIe.
 l Debts. cannot be regarded as worth less until after legal proceedings to 1 collect them have proved fruitless or , 1t clearly appears that the debtors are lnsolVent Pensions from the federal government are to be included as in come. Estimated advance in real es- tate is not required to be reported as income unless the increased value is takenup on the books of the individ- ua1 as an increase of assets Cost of suits and other legal proceedings aris- ing from ordinary business may be 1 deducted from the gross income for the year in which such costs are paid The compensation of officers and em- ployes or political subdivisions there of is excluded in computing income
 # You Are Married.
 Unmarried individuals or married ! persons not living with wife or hus- band are allowed an exemption of s3,000, but when husband and wife live together they are allowed jointly 8 total exemption of $4,000. They may make a joint return, both sub scribing thereto, or, if they have sep arate incomes, they may make sepa- rate returns, but, in no case will they be permitted to claim jointly more 1 than s4 900 exemption of their aggre- gate income. It may be added, at 1 the risk of repetition, that included in the accounting of ones income . must be all sources not expressly ex- empted by the law, not merely ones regular salary, but and additional . sources Of revenue he may have, . whether steady or sporadic.
 Where Filed And Where Paid.
 The return is to be filed with the collector of internal revenue for the district in which the individual re- sides if he has no other place of bus i mess, otherwise in the district in which he has his principal place of business or, in case the individual resides in 9 foreign country, with the collector of the district in which his principal business is carried on in the United States. While returns of in come must be filed with the collector by March 1, the amount of the tax vii be payable between June 1 and |, June 90 following.
 Penalties for Evasion or Remissness
 Failure to file the return within the time specified subjects the person so failing 10 8 fine of from s2o to s1.O00, and in case of refusal or neglect to render the return within the re- -auireSi time, 5e per cent will be added to the amount of tax assessed. In case of false or fraudulent return 100 Der cent. will be added. and any person required b} law to make, sign or yer fly a return who makes any false or fraHauleEt FetsIFa CT sesteEaspt AS-ith