The Butler weekly times., 1917-10-18
HOW THE WAR TAX WORKS.
The Small Wage Garner Must do
His Part Now.
Many Millions of New Incomes Will
Be Assessed by the Government
Returns Required Before
Nav I. 1918.
From the Kansas City Star.

what your income tax will be under
the new war tax of October 3, 1917.
He is not ready yet to receive re-
turns, and besides. he has all he can
do collecting the new war taxes Oil
liquors and tobacco. which became
due the day the law went into effect.
Returns by the income tax payers
are not due at this office until Janu
ary l, 1918, or after. These returns
must be in before March I, 1918. and
the taxes are due on or before June
IS, 1913.
The collector has not received any
blanks or instructions yet on the in
come tax and probably will not until
December.
An unmarried person s.not requir-
ed to make return if his net income
for 1917 is less than $1,000, and d
married person, if his net income rs
less than $4,000. By net income is
meant the balance after all deduc-
tions have been made for cost OF
operation, regular taxes and interest,
othe than income taxes and excess
profit taxes.-Homer F. Goodwin,
income tax deputy in the internal
revenue collectors office in Kansas
City
The intricacies OF the new war revc-
nue. act promises to create new
business profession, that OF tax inter-
prefer and adviser to business men
and corporations. When several big
corporation men at last weeks oil
conference here were discussing per-
picking problems that would grow
out OF the big war measure, prom
inent Tulsa banker oil man said he
did not know OF any more attractive
| field right. now that that open to
man who, with some knowledge of
law and business, would inform him
self thoroughly on the new tax meas
ures.
Official copies OF the bill are still
to reach the federal building here. 1t
will be the size of small book and
many of its sections necessarily will
be subject to detail Interpretation
from Washington.
So many million Americans will be
added to the class of income taxpay-
ers, and SO many business men are
interested in the details OF the new
profit sharing with the govern
ment" that tax experts in Washing
ton have been quick to analyze the
more salient features of the income
tax and the excess profit tax.
# X x
y Who must pay income tax?
* Every unmarried man, wo- u
s. man or child with net income
* of $1,000 or more.
Every married person with
net income of $4,000 or more
Il E x X X x
An income tax, under the new law.
must be paid by every unmarried
man. woman or child with a net in
come from wages, profits, interest,
rent or any other source of $1,000 or
more for the calendar year 1917 and
by every married person with a net
income of $4,000 or more.
Returns must be made under oath
on or before March I, 1913, by every
person with net income of the
amounts named above, even if there is
no tax due. under penalty Of $50 to
$1,000 for failure. Naturally, the re
turns cannot be made until the year
In,- boc ,>10cad
~ II " 4
Business expenses, interest
and taxes. business losses and
wear and tear on property, to-
81 gether with limited amount
of worthy contributions are de-
Quoted in figuring net income.
Net incomes. upon which the tax i,
levied, is calculated by taking the to-
tai amount of money received by the
individual during the year from all
sources and deducting from that
amount the following items
Necessary expenses actually paid il
carrying on any business or trade,
but not including personal, living o"
family expenses;
All interest paid within the year on
indebtedness, except interest on loans
made for the purchase of tax-exempt
securities;
All taxes, local, state and federal,
except income and war profits taxes.
Losses actually sustained during
the year in business or trade, or from
fires, storms. theft, etc.;
Debts ascertained to be worthless
and actually charged off;
Reasonable allowance for wear and
tear of property employed in business
contributions for religious. charitable.
scientific or educational purposes -
an amount not in excess of IS per
cent of the net income without the
benefit of this paragraph.
Unmarried persons have $1,000 ex-
empt from income tax; married per-
SONS have $4,000 exempt and in addi-