The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1918-02-16

hou INV Nho uiuh
earn as much as $1,000 In 1917
don't have to make an income tax
return. Lucky? Very!
Income tax form No. 1040-A is
what you want-the one printed
in The Times recently.
Now, then, how much was
your income for the year 1917?
Here's Dill Smith, bricklayer.
How many days did you work last
year. Bill?
About 2i5. as we'll as You can
remember? Well, that will do,
but don't be short with Uncle
Sam--he's doing big job and
needs the money.
What's your wage scale? Five
dollars a day. Let's see, 245
times So equals $1225. But walt
a minute. how about overtime?
Fifty hours at 93& cents an
hour makes $46.S7 to be added,
or a total of $t27tS7.
Did you get any bonuses? They
would have to be added II you
did.
Make Entries.
Whom did you work for most
OF the year? Jones 4 Co. Did
anybody else pay you more than
$500 last year? II they had, we
would have to enter them up on
separate line.
We are ready now to make the
first entry. Turn to Page 3 of
the form, and enter on line 1 I'M
der the proper heads William
Smith, bricklayer, Jones a Co.,
Ill Blank st. ...$1,271,S7."
Did you have any income from
any business or profession? No.
Then we simply write none" in
the figure column under head b,
and pass on.
Anything from the sale of land
or other property? Oh, yes! You
cleaned up $50 on that second
hand car you fixed in odd times.
Enter that under G, adding to the
cost whatever you spent for ma
terials or outside labor. and put
the net profit, $50, at the foot
of the column.
You had no rents or royalties,
SO you can pass up ID, except to
write none" out in the figure col
umn.
Now did you have any other in
come? Yes, you will have to en-
ter up under Il that $25 you got
as secretary OF your union, but
you need not put down any gifts,
interest on Liberty bonds, or any
thing you got as a legacy or from
life insurance. Accident insur.
ance and workmen's compensa-
ton, however, must go in as in
come.
Now add up all the figures In
the last column and enter them
under F---the total for Bill Smith
should be $l,346.S7.
| Deductions.
Next come deductions" Does
that sound good?
First, INTEREST. You can de-
duct interest on any money bor-
rowed. except on Indebtedness for
the purchase of tax-exempt securi-
ties-Liberty bonds, and state,
county and municipal bonds. II
you have a $1,000 mortgage on
your house at 8 per cent-$60--
and paid a loan shark SIS during
the year, you have SIS deductible
as interest.
Second. TAXES. You can de-
duct any taxes except for local
improvements, street repairs, etc
where you are presumed to have
received value in return.
| Third, the only other allowable
deductions, likely to arise, are bad
debts or losses on transactions
connected with your regular trade
or business.
| Charities.
Finally, you are permitted II
deduct any contributions made
during the year to organizations
operated for exclusively religious
charitable, scientific or education
al purposes, up to Is per cent Of
lyour income.
With $1,000 income you,
maximum deductible contribution.
would be $3.50; but they must b.
made to organizations. Private
charity doesn't count. You nigh
have given 500 to help a poo
family thru the winter, but unles!
Ii was contributed thru the Asso
ciated Charities or some simila,