The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-01-03
Government Men Open Up OF.
fees Here Today.
Will Help Topekans Made In
come Statements.
NEW LAW NOT COMPLICATED
Deputy Gives Example Cover
fng Many Cases.
Travelling Men Must Pay Tax
on Their Expense Accounts.

Under the new federal income tax
law, travelling men employed by rail-
roads or in commercial lines must pay
tax on money paid by their en-
ployers for his board and lodgings
while on the road, according to John
NJ Cleveland, deputy income tax col
lector for the Topeka division of the
state. who opened his office on the
second floor of the federal building
! today. Cleveland pointed out that the
expenses incurred by travellers for
necessities of life and paid by en-
blowers. is regarded as a part of the
employees income, under a ruling of
| the law.
| Cleveland with A 3. Munsey. A
deputy working out of the Little Rock
| office. will be in the Topeka office un-
| til March l to help Topekans and
others who need assistance in making
| up statements of incomes subject TO
federal income tax. Their work IL
purely a matter of convenience to the
| public and persons subject to the law
may obtain any explanation OF any
thing they do not understand or any
( other assistance
Single men with an income of more
| than $1,000 a year. and married men
without children with an income or
more than $4,000 a year must pay
| the tax Married men may obtain
an added exemption to the 5000 OF
! 5000 a year for each child dependent
under Is years old If the dependent
is inca pacitated by mental or physical
reasons there is no age limit All
| public officials, except federal en-
| ployes, are exempt from the tax to
| the extent of the income drawn in
the public CAPACITY.
| Tax Children's Incomes.
If however, a man has a son or
daughter less than Is years old and
| the latter is employed the wages
| drawn by the son or daughter is adued
! to the fathers or mothers income and
| is taxable, providing the total is more
| than the amount exempt.
Cleveland also pointed out a condi-
4 ton of especial interest to farmers.
/ Stock animals purchased for work or
breeding purposes are not an expense
deduction. If a farmer has income
| of IS, 900 in year and buys a team of
| horses for work purposes for $1,000,
| the $1,000 cannot be deducted from
| the income If he buys a bunch of
| cattle for feeding purposes, however,
| that is different matter and the diff
| ference between the purchase price
and the sale price is regarded as in
come
streame-: into the revenue officials Of.
| flee today there will be but few finan-
| cial slackers in the city. All inquir-
ers wanted to find out about some GER
tain thing they did not understand.
| Freeman Sardon who enjoys the els
tinction of having lived in Oakland
| before there was a Topeka, came ir
and in making out his statement II was
| found that he held many liberty and
municipal bonds and without their in
terest his income was not taxa Bile. He
actually seemed disa ppointed The
| only liberty bonds taxable are per
| cent bonds where the holder has a
| block of more than $1,000
| An Example Cited.
| In explaining the tax today Cleve-
land outlined an example that will fit
the ma jority of Topekans- The exam
pie: A man has $4,000 total personal
| income. after depreciancy on property
and expense of running his business
| have been deducted In case he paid
$50 interest on indebtedness this
would also be deducted Cleveland
used 800 as the possible figure. This
would leave a total of $3.50. The
taxpayer is permitted to make charita-
! BILE contributions of not more than
per cent of his income. If the tax
payer gave away 800, a remainder of
I $3.50 would be left If he had
wife and two children he would de-
duct $4,000. leaving s3.500. The first
$4,000 would be taxable at the rate of
remaining $1,000, as amounts over
$4,000 and up to $1,000 is taxable at
/ 4 per cent, would yield a-tax of $50
The total tax, of course, would be S92
The form statements to be filled out
by income taxpayers have not yet
been received at the Topeka office
from the government However the
officials here are using a tentative
form, which, when filled out, may be
transferred by the taxpayer to the
regular form when he or she receives
the regular statement