The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1918-02-15
OF 1917
TO BE FIGURED
IN TAX RETURNS
MUST BE IN HANDS OF COLLECT
oRs NoTLATER THAN MARCH
I FOR WAR REVENUE.
EXEMPTIONS FOR MARRIED MEN
Taxpayer Considered Head Of Fam.
lily II Actually Supporting One or
More Persons--Perplexing Cues
tons Explained.

Have you filed your income tax re,
turn? II not, this article which has
been prepared with the approval OF U.
is. Revenue experts tells you how,
when and where to do it. The first
thing to be understood is that 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 October
3, 1917 provides for a normal rate OF
tax OF per cent on net incomes of
unmarried persons in excess of $1,000
and upon incomes of married persons
or heads of families in excess OF $2,-
900. II you are unmarried and your
income for 1917 was $1,000 or more
you must get tax blank, fill it out
and file 1t with the collector of i'm
ternal reyenue-in the district in which
you live. II narrated and your net
income was $4,000 or more you must
file return with the collector. Re-
turns must be In the hands of collec-
tors not later than March /, 1918.
The old income tax under the Act of
September 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 per cent on incomes of
married persons in excess of $4,000
and on incomes OF single persons in
excess of $4,000.
For example, If you are married and
your net income for 1917 was $4,000
you will pay a tax Of $50. This is q
per cent on the amount above your
exemption Of $4,000 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 5000 Is allowed married person
or head of family for each depend
ent child il under eighteen years of
age or incapable of self-support.
A taxpayer Is considered to be the
head OF a family and entitled to all
the exemptions allowed married per-
son IL he is actually supporting one
or more persons closely connected
with him by blood relationship, rela-
tionship 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 of
$4,000 is assessed. They may file a
joint return or each file separate
return If desired. If a joint return is
filed either one may claim the exemp-
ton or it may be divided between
them. A widow, woman living apart
from her husband or a maid is as
sessed on her net income above 81 900.
met income" means gross income
less certain deductions provided for
by the act. Expenses actually incur
red in carrying on any business may
be deducted, but not family nor liv-
ing expenses.
In making out your return you may
deduct the following from gross in
come: Interest paid on mortgages
and notes and other Indebtedness, ex-
cept Indebtedness for the purchase of
tax exempt securities; rent paid for
offices or business places. Taxes
paid, except for local improvements
such as sewer and water, income
taxes and excess profits taxes: losses
sustained in business or trade arising
from fires; storm or other casualty
or by theft; if not compensated for
by insurance or otherwise. If pro-
perty was purchased prior to March
1, 1913 the fair market price or value
on March /, 1913 is the basis for figur-
ing the loss.
Losses sustained in speculations
and side lines not connected with
your regular business, but these
deductions must not exceed the pro-
fits from similar transactions.
Debts ascertained to be worthless
and charged off within the year.
Reasonable depreciation for bust
ness structures but not for your resi-
dence.
Depreciation for oil. gas wells.
mines, etc.
You must include under gross in
come the following items:
Salaries, wages and commissions or
compensation OF whatever kind fof
personal services.
All profits derived from business,
trade Or commerce.
Profits from the sale of property,
real or personal.
Rents.
Interest on notes. bonds and bank