Imperial Valley press., 1918-01-25
Income Tax

4 DER HIS PERSONAL INCOMI
TAX RETURN ON THE BASIS OF
THAT FISCAL YEAR?
Il No. A personal income tax returl
cannot be rendered for any othe
than a full calendar year.
Ii II. WHERE CAN / GET TIL
BLANK FORM UPON WHICH TX
RENDER MY RETURN?
From the Collector of Internal Rev
enue for your District. The Collecto.
will endeavor to have such form
sent to you, but failure to receive on'
will not excuse you from making 5
| return If you do not receive one it i:
your duty to request the Collector t.
furnish you with a copy.
RATE OF TAX
IS. WHAT PERSONAL INCOME
TAXES ARE IMPOSED UPON IN
COME RECEIVED DURING THE
CALENDAR YEAR 1917?
In computing income tax liability
for the year 1917, the normal and ad-
ditional income taxes imposed by the
Act of September 8, 1916, and also
the Act of October 8, 1917, are to be
considered.
Under Section l (a) of the former
Act normal income tax Of 2 per
cent is imposed upon so much of an
individuals net income, exclusive OF
that derived from dividends on tbs
capital stock, or from the net earn
ings of corporations, joint-stock COM
panies, ETC., subject to like tax, as
exceeds the amount of personal eS
emption to which he is entitled undel
Section z; and so much of his totS
net income, including that derived
from dividends and net earnings G.
corporations, as exceeds $4,000, i
subject to the additional income ta1.
at the graduated rates prescribed b,
Section l (b).
Under Section / of the Act of o.
tober 8, 1917, so much of the indiviG
ual's net income, exclusive of div
dends, ETC., as exceeds the amount {,
personal exemption allowed by Sc:
tion 3, is subject to an additional nor
NAL tax of per cent, and that por
ton of his total net income, includ-
ing dividends, as exceeds $4,000, is
subject to the additional income tax,
at the graduated rates, specified in
Section 2, Act of October 8, 1917.
EXEMPTION
IA. WHAT AMOUNT OF PERSON
AL EXEMPTION is ALLOWED BY
EACH OF THE TWO ACTS?
Section of the Act of September
S, 1916, allows a personal exemption
of $4,000 to unmarried persons, plus
$1,000 additional if the person max
ing the return be the head of fam
lily or a married man with wife liv-
ing with him. This additional exemp-
ton of $1,000 is allowed if the per-
son making the return is a married
woman with a husband living with
her, but in no event shall this addi-
tional $1,000 be deducted by both hus-
band and wife.
The exemption allowed by Section
8 of the Act of October 8, 1917, are
the same as under the Act of Sep
tember s, 1916, except that the ex-
emptions of $4,000 and $4,000 allow
ed by the 1916 Act are, respectively,
81 200 and $4,000.
In addition, a further exemption of
5000 is allowed for each dependent
child under eighteen years of age, or
over that age is incapable of self-sup-
port because mentally or physically
defective, and this is allowed in COM
putting normal tax liability under both
| Acts.
Is. WHAT IS MEANT BY THE
TERM "HEAD OF A FAMILY?
Treasury Decision 2427 states tina:
"head of a family" is held to be a
| PERSON WHO actually oupPoiIo anu
maintains one or more individuals
who are closely connected with him
by blood relationship, relationship by
marriage or by adoption, and whose
right to exercise family control and
provide for these dependent individu-
ais is based upon some moral or le.
gal obligation.
INCOME, GROSS AND NET
Is. WHAT INCOME, IF ANY, is
EXEMPT?
(a) The proceeds of life insurance
policies paid to individual beneficiar
les upon the death Of the insured.
(b) The amount received by the in
sured, as a return of premium o.
premiums paid by him under life in
surance, endowment, or annuity con
tracts, either during the term, or a
the maturity, or surrender, Of the in