The Meeker herald., 1918-03-30
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

April l. 1918.
Tax due may be paid now or % o.
before June IS. 1918.
II you are single and your net IN.
come for 1917 was 1900 or more you
must nle q return.
II you were married and living with
wife Tor husband) aud had q net In
come Of $1,000 or more for 1917 you
must file return.
Husbands and wife's income must
be considered Jointly. plus income OF
minor children.
Income of q minor or incompetent.
derived from q separate estate, must
be reported BY his legal representa-
tive.
Severe penalties are provided for
those who neglect or evade the law.
For false or fraudulent return there
Is 4 penalty not exceeding $1,000 hne
or years imprisonment, or both, plus
100 per cent Of tax.
For failure to make return on or
before April l. 1918. hne 10 from 10
to $1,000, plus so per cent. Of tax due.
Returns must be nled with the Col
lector of Internal Revenue OF district
in which you live.
An agent may nle return for per-
son who is III, absent from the country
or otherwise in1apacitated.
Each return must be signed and
sworn or affirmed BY person execut-
inC 1t.
Single persons are allowed $1,000
exemption in computing normal tax.
A married person living with wife
Tor husband) 10 allowed 5000 exemp-
ton, plus 500 for each dependent
child under 10.
A head Of family. though single. 10
allowed 5000 exemption II actually
supporting one or more relatives.
Returns must show the entire
amount Of earnings, gains and profits
received during the year.
Omcials and employees are not taxa
BILE on the salaries or wages received
from state. county. city or town In
the United States.
Interest on state and municipal
bonds issued within the o. 8. 10 ex-
empt from federal income tax and
should be omitted.
Interest on United States govern
ment bonds IL also exempt. except on
Individual holdings Of Liberty Fours In
excess Of 5000 par value.
Dividends are not subject to normal
tax. but must be reported and included
in net income.
Gifts and lesacies are not income
and should not be included ON the re-
turn Of the beneficiary.
Life insurance received as q bene-
nciary or as premiums paid back at
maturity or surrender Of policy 10 not
Income.
Payments received for real or per-
sonal property sold IL not income. but
the profit realized thereon 10 income
for the year Of sale.
Amounts received In payment Of
notes or mortgages Is not income. but
the interest on such notes or. mort.
gages Ia taxable income.
From the entire gross income GER
tain allowances are made In arriving
at the net income.
Necessary expenses actually paid in
the conduct Of business, trade or pro-
fession may be claimed.
A farmer can claim payments for
labor. seed, fertilizer. stock feed, re-
pairs on buildings. except his dwelling:
repairs Of fences and farm machinery.
materials and small tools for immedi.
ate use.
The amount Of rent paid for farm
may also be claimed a. tenant farm
er's expense.
Payments for live stock are allowa-
BILE II bought for resale. But II bought
for breeding purposes cattle are an in
vestment, not An expense, and cannot
be allowed.
A storekeeper caa claim amounts
paid for advertising, clerk hire, tele-
phone. water, light and fuel, also dray-
age and freight bills and cost Of op-
Grating and repairing wagons and
trucks
A physician can claim cost Of his
professional supplies, rent. ONCE help.
telephone, expense Of team or automo-
bile used In making professional calls
and expenses attending medical con.
ventions.
A dentist can claim similar items,
except team or auto expense. which
are not necessary In his profession.
Expenses mat are personal or con-
nected In any way with the support or
well being of a person or family arc
not allowable.
The costs Of machines, instruments,
vehicles or implements that are more
or less permanent In character are not
allowable as an expense. They are In.
vestments.
Interest paid on . mortgage or other
personal indebtedness is allowable on
personal return.
All taxes paid within the year can
De taken out on federal return. ex.
cept federal income taxes, Inheritance