Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-02-09
LESS THAN THREE WEEKS REMAIN TO
MAKE RETURN UNDER INCOME TAX LAW;
HEAVY PENALTY FOR FAILURE TO FILE

Have you filed your income tax re-
turn? If not, this article which has
been prepared with the approval Of
United States revenue experts tells
you how, when and where to do it. The
first thing to be understood is tina the
income tax applies only to your in
come for the calendar year 1917. Your
income for prior years and your esti-
mated income for 1918 are not to be
considered.
The war revenue act of Oct. 3, 1917,
provides for normal rate of tax of 2
per cent on net incomes of unmarried
persons in excess of 81 900 ana upon
incomes of married persons or heads
Of families in excess of $1,000. II you
are unmarried and your income for
1917 was 81 900 or more you must get
tax blank, fill it out and file 1t with
the collector of internal revenue in
the district in which you live. Ii mar
ried and your net income was $4,000
or more you must file return with
the collector. Returns must be in
the hands of collectors not later than
March ], 1918. The old income tax
under the act of Sept. s. 1916, still is in
effect, so that the total of your tax
will be the sum of these taxes added
together. Under the act of 1916 the
normal rate Of tax'is 2 per cent on in
comes Of married persons in excess OF
1900 and on incomes OF single per-
sons in excess of $4,000.
For example, if you are married and
&
you will pay a tax of $50. This is 2
per cent on the amount above your ex-
emption OF $1,000 under the act OF 1917
and per cent on the amount above
your exemption Of $4,000 under act of
1916. An additional exemption of 500
is allowed married person or head OF
2 family for each dependent child II
under Is years of age or incapable OF
self-support
A taxpayer is considered to be the
head of family and entitled to all the
exemptions allowed married person
II he is actually supporting one or
more persons closely connected with
him by blood relationship, relation
ship by marriage. or by adoption.
Women as well as men must pay an
income tax. The combined net in
come Of married couple in excess oil
$4,000 is assessed. They may file
Joint return or each file separate re-
turn il desired. II q joint return is
hled either one may claim the exemp-
u0n or it may be. divided between
them. A widow. woman living apart
from her husband or maid is assess
ed on her net income above $1,000
Net income" means gross income less
certain deductions provided for by the
act. Expenses actually incurred In
carrying ON any business may be de,
Quoted, but not family nor living ex'
penses
In making out your return you ma!
deduct the following from gross in
come:
interest paid on mortgages ant
notes and other Indebtedness, except
Indebtedness for the purchase OF ia,
exempt securities.
Rent paid for Offices or business
Z places.
Taxes paid except for" local i'm
pfoyements such as sewer and water
Income taxes and excess profits taxes
Losses sustained in business or tradt
arising from fires, storm or other cas-
ualty or by theft; If moi compensated
Tor by insurance or otherwise. II prop
erty was purchased prior TO March ]
AsiS, the fair market price or value u