The state herald., 1918-03-15
income
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

Returns must be filed on or before
April l, 1913.
Tax due may be paid now or on or
before June IS, 1918.
II you are single and your net In.
come for 1917 was $1,000 or more you
must file return.
II you were married and living with
wife Tor husband) and 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 a minor or incompetent.
derived from a 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 a penalty not exceeding $1,000 fine
or years Imprisonment. or both, plus
100 per cent. of tax.
For failure to make return on or
before April l. 1918, fine is from $40
to $1,000. plus SO per cent. Of tax due.
Returns must be filed with the Col.
iector of Internal Revenue Of district
In which you live.
An agent may file return for per-
son who Is III, absent from the country
or otherwise inoapacitated.
Each return must be signed and
sworn or affirmed by person execut-
Inc II.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
Tor husband) Is allowed $1,000 exemp-
tion, plus 5000 for each dependent
child under IS.
A head Of family, though single. Ia
allowed $1,000 exemption If actually
supporting one or more relatives.
Returns must 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 II 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
ment bonds Is also exempt. except on
Individual holdings Of Liberty Fours In
excess Of $1,000 par value.
Dividends nre not subject to normal
tax. but must be reported and included
In net income.
Gifts and legacies are not income
and should not be Included on the 70
turn Of the beneficiary.
Life Insurance received rs a bene-
hciary or rs premiums paid back at
maturity or surrender Of policy is not
income.
Payments received for real or per-
sonal property sold is not income. but
the profit realized thereon Is 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.
cages Ii taxable income.
From the entire gross income GER
tain allowances nre made ip arriving
At the net income.
Necessary expenses actually paid in
the conduct Of business. trade OF pro.
fession may be claimed.
A farmer can claim payments for
iabor 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 as q tenant farm
er's expense.
Payments for live stock are nllowa.
HE II bought for resale. But II bought
for breeding purposes cattle are nn In
vcstment. not an expense. and cannot
he allowed.
A storekeeper can claim amounts
paid for advertising. clerk hire, teie-
phone. wnter. light md fuel. also drny-
aee and freight bills md cost Of op-
Grating and repairing wagons and
trucks.
A physician cnn claim cost Of his
professional supplicr, rent. ofiicc help.
telephone. expense. Of team or automo-
hilc used In making professional calls
md expenses attending medical con-
ventiona
A dentist can claim similar items.
except tenn or auto expense, which
nre not necessary In his profession.
Expenses mat are personal or con.
nected In any way with tho SUPPORT or
well being Of = person or family are
not allowable.
The costs Of machines. tnstrus ncnts,
vehicles or implements that are more
or less permanent In character nic not
allowable a. an expense. They aic In.
vcstmcntA
Interest paid on . mortgage or.oaher
personal indebtedness 10 allowable on
personal return.
All taxes paid within tho yenr- can
I =