The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1918-02-16
INCOME TAX LAW
FULLY EXPLAINED

The federal income tax reaches this
year the incomes of the masses. In
comes as low as $1,000 earned by
mechanics, farmers, small merchants.
clerks, are this year within the scope
of the law.
In round figures, every unmarried
man who earned $40 week for 1917,
and every married man who earned
$3.50 week. is affected by the pro-
visions of the new law.
A tax on net incomes for the year
1917 of citizens and residents of the
United States is levied at the follow
ing rates: Normal at two per cent;
supertax on all net incomes exceeding
$4,000 at graduated rates of one per
cent to fifty per cent. Every citizen
or resident, male or female. who if
unmarried received net income of
$1,000 or more during 1917. or who. If
married and living with wife Tor hus-
band), received net income of $4,000
or more during 1917, must file a sworn
schedule or return" of such net in
come. Such persons must pay the
tax if the net income thus reported
exceeds the personal exemption allow
able by law, as follows:
If unmarried or widowed. or if
married and living apart from wife
Tor husband) the exemption is $1,000.
He or she may claim $4,000 exemption
If actually supporting one or more
persons entirely dependent and re-
lated by blood, marriage or adoption,
thus fulfilling a moral or legal obliga-
ton. If married and living with wife
Tor husband) the personal exemption
is S2000 plus 5000 for each dependent
child, if under Is years of age, or if
incapable of self-support because of
mental or physical defects
The returns must be filed on or
before April /, 1918. Payment of tax
due for 1917 may be made when re-
turn is filed on or before June Is.
1918, which is the due date prescribed
by law.
Residents of the first district of
California, including 4S counties in
northern California and the state of
Nevada, must file returns with Justus
S. Wardell, collector of internal rev.
enue, San Francisco, California, or
any of his deputies authorized to re-
ceive same.
To figure your net income, which is
the basis of the federal income tax,
compute the total of all gains. profits
and income from salary, wages, COM
missions, bonus. business or profess
sional receipts, interest and dividends
from investments, gains from sale of
real or personal property. rents and
royalties, incmoe from fiduciaries (ad-
ministrators, trustees, etc.), partner
ship profits whether distributed or
noD, interest on bank deposits, notes
and mortgages, and other sources.
Omit salary or wages from state,
county, city or town; interest on city, |
state or United States bonds; gifts or
bequests not in recognition of your
services; life insurance received as
beneficiary, or as premiums paid back |
at maturity or surrender of policy.
Compute the total of your allowable |
deductions under these items: Neces-
sary business expenses, interest paid
on persnal Indebtedness, taxes paid |
mot including federal income tax or |
assessments for local improvements) |
losses sustained in business, or
through fire, storm, shipwreck or
theft Except when compensated by
insurance or otherwise), wear and |
tear of property rented or used in |
business (formula: divide cost by |
number of years of expected life Of |
property, bad debts of business or
profession actually charged off within |
the year, if these dedts were shown as
income on a federal income tax re-
turn; contributions to charitable, re-
ligious, educational organizations. etc.
Ito an amount not exceeding Is per
cent of years net income.
Interest on Liberty fours that you
may own in excess of $4,000 par value
is income SUBJECT to surtax.
The net income is the amount by
which the gross income exceeds the
allowable deductions, as computed by
above schedules.