Crittenden record-press., 1918-03-28
FEDERAL income
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

come tOr lJli WIS Sl''ON W "'''N 49,
must file return.
II you were married and living with
wife Tor hushnnl) and had net In
come Of $1,000 or more Cor 1917 you
must hle return.
Husbands and wife's income must
" considered Jointly, plus income OF
minor children.
Income of minor or incompetent
derived from separate estate, must
,e reported by his legal representa-
tive.
severe penalties are provided for
hose who neglect or eyade the law,
For false or fraudulent return there
is penalty not exceeding $1,000 tine
or years imprisonment, or both, plus
100 per cent OF tax.
For failure to make return on or
before April !. 1918, fine is from so
10 $1,000. plus 50 per cent OF tax due.
Returns must be fled with the Col
lector OF Internal Revenue OF district
in which you live.
An agent may fle return for a per
son who is Ill., absent from the country
or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person execut-
Ing II.
Single persons are allowed $1,000
exemption IN computing normal tax
A married person living with wife
(or hushand) Is allowed 5000 eNemp-
lion, Plus 5000 for each dependent
child under IS.
A head OF family, though single, is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns NUT show the entire
amount Of earnings, gains and profits
received during the year.
officials and employees are not taxa.
Bile on the salaries or wages received
from a state. county, city or town In
the United states.
Interest on state and municipal
bonds issued within the U. S. is ex-
empt from federal income tax and
should be omitted
Interest on United States govern
meut bonds is also exempt, except on
individual holdings OF Liberty Fours In
excess Of 5000 par value.
Dividends are not subject TO norma
tax, but must be reported and included
In net income.
Gifts md legacies are not Income
and should not be included on the re
turn OF the beneficiary.
Life insurance received as n bene
fcIary or as premiums paid back a.
maturity or surrender OF policy is no
| income.
Payments received for real or pee
sonal property sold Is not income, bu
the profit realized thereon is income
for the year Of sale
Amounts received In payment o
notes or mortgages Is not income, bu
the interest on such notes or mort
cages l. taxable Income.
From 'hr entire gross income Ger
taiu allowances are made In arrlyin
n the net income.
Necessary expenses actually paid Il
tho conduct ~ business trade or pro
fession may be claimed.
A farmer can claim payments 10
labor, seed. fertilizer, stock feed, re
pairs on buildings except his dwelling
repairs OF fences and farm machinery
materials md small tools for immed
ute usr
The amount o. ront paid tor n farr
mas also he claimed rs tenant farm
, er 5 expense.
| PAYMENTS for i've stock are allows
hle II tough, for resale. But II hougt
for breeding purposes cattle are m II
vestment not an expense, and cannC
be allowed.
A storekeeper can claim amount
paid for advertising, clerk hire, 'el,
phone water, light and fuel, also dra.
! nge and freight bills and cost OF oI
Grating and repairing wagons nu
, trucks.
\ physician can claim cost ot h
professional supplies, rent, office hcl
telephone, expense OF team or autOm
bile used In making professional cal
and expenses attending medical co
ventiOrs
A dentist can clnim similar Item
9 except team or auto expense, whiC
are not necessary In his profession.
Expenses that are personal or 90
nected In any way with the support
' well being of u person or family a
L not allowable.
I The costs Of machines, instrument
u vehicles or implements that are mo
d or less permanent In character are u
d allowable as an expense. They are
;. vestments.
Interest paid on n mortgage or 9th
personal Indebtedness IL allowable
personal return.
All taxes paid within the year c,
be taken out on federal return, q
ccpt federal Income taxes, Inherltan
taxes and assessments for local 4
proyemcnts
:. losses sustained In business
& through fire, storm or shlpwreck or
theft. except when compensated by
surunce or otherwise.
e Wear and tear Of rented buildings
a machinery used In business may
n claimed.
u You ynn also claim the amount ~
n % the Red Cross and TO other charl