Arizona sentinel., 1918-02-21
WARNING FROM INCOME TAX
 MEN SENT OUT.

TREASURY DEPT, Wash, D. C., Feb. 6.-Have you filed your income tax return? If not, this article which has been prepared with the approval of U. s. 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 normal rate of ta2 of per cent on net incomes of un- married persons in excess of 5000 and upon incomes of married persons or heads of families in excess of $200O. If you are unmarried and your income for 1917 was 5000 or more you must get tax blank, fill it out and file with the collector of internal revenue in | the district in which you live. If mar ried and your net income was $2OO0 or more you must file return with | the collector Returns must be in the hands of the collectors not later than I March 1, 1918. The old income tax under the Act of September 8, 1916, still is in effect, so that the total o your tax will be the sum of these taxes added together. Under the act o1 1916 the normal rate of tax is per cent on incomes of married per sons. in excess of .$4000 and on in comes of single persons in excess o. 5000.
 1 For example, if you are married anu your net income for 1917 was $450y you will pay tax of $60. This is per cent on the amount above your ex- emption of $2000 under the act O. 1917 and 2 per cent on the amount above your exemption of $4O00 under act of 1916. An additional exemption of $2OO is allowed a married person or head of a family for each depen- dent child if under eighteen years ot age or incapable of self-support.
 A taxpayer is considered to be the head of a family and entitled to al he exemptions allowed married per son if he is actually supporting one or more persons closely connected witt him by blood relationship by marriage or by adoption.
 Women as we'll as men must pay aL income tax. The combined net income of a married couple in excess of S20O0 is assessed They may file join re- turn or each file separate return it desired. If a joint return is filed eth CT one may claim the exemption. or it may be divided between them. A wid- ow, woman living apart from her husband or a maid is assessed on her net income above 5000.
 Net income means gross income less certain deductions pr Fided for by the act.
 Expenses actually incurred in car rying on any business may be deduct ed, but not family nor living expenses.
 In making out your return you may
 deduct the following from gross in
 come:
 Interest paid on mortgages an
 notes and other indebtedness, except indebtedness for the purchase of tax }, exempt securities.
 Rent paid for offices or business
 places.
 Taxes paid, except for local i'm
 DrovementsS such as sewer and water,
 income taxes and excess profits taxes. Losses sustained in business or
 t-ade arising from fires, storm or oth-
 CT casualty or by theft; if not com
 pensated for by insurance or other wise. If property was purchased prl-
 or to March 1, 1913, the fair market price or value on March 1, 1913 is the basis for figuring the loss. | Losses III OpOOUloClOAA oAAN
 side lines not connected with your
 regular business, but these deductions must not exceed the profits from sim | liar transactions.
 Debts ascertained to be worthless and charged off within the year. Reasonable depreciation for busi
 ness structures but not for your res dence.
 Z Depreciation for oil, gas wells mines, etc.
 You must include under gross 1n l come the following items:
 Salaries, wages and commissions or
 compensation of whatever kind for
 personal services.
 All profits derived from business , trade or commerce.
 Profits from the sale of property l rnal Or DorSOnal