The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1918-03-27
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down for
Busy Folks

April L, 1918.
Tax due may be paid now or on
or before June Is, 1918.
If you were single and your net in.
come for 1917 was $1,000 or more
you must file a return.
If you were married and living with
wife Tor husband) and had a net in
come of $4,000 or more for 1917 you
must file a return.
Husbands and wife's income must
be considered jointly. plus income of
minor.
Income of 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 their
is penalty not exceeding $4,000 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
lector of Internal Revenue of district
in which you live.
An agent may file return for a per-
son who is ill, absent from the coun-
try or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person executing
it.
! Single persons are allowed $1,000
exemption in computing normal tax.
A married person living with wife
Tor husband) is allowed $4,000 exemp-
ton, plus 5000 for each dependent
child under Is.
A head of family, though single, is
allowed $4,000 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 tax
able on the salaries or wages re-
ceived from 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 $4,000 par value.
Dividends are not subject to normal
tax, but must be reported and includ-
ed in net income.
Gifts and legacies are not income
and should not be included on the
return Of the beneficiary
Life insurance received as a bene- |
ficiary or as premiums paid back at
maturity or surrender of policy is
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 is 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
profession may be claimed.
A farmer can claim payments for
labor seed, fertilizer, stock feed, re-
pairs on buildings, except his dwell
ing; repairs of fences and farm ma /
chinery, materials and small tools
for immediate use.
The amount of rent paid for farm
may also be claimed as tenant farm
er's expense.
Payments for live stock are allow
able if bought for resale. But If
bought for breeding purposes cattle
are an investment, not an expense,
and cannot be allowed.
A storekeeper can claim amounts
paid for advertising, clerk hire, tele-
phone, water, light and fuel also
drayage and freight bills and cost of
operating and repairing wagons and
trucks.
A physician can claim cost of his
supplies, rent, Office help,
telephone, expense of team or automo-
bile used in making professional calls
and expenses attending medical con-
A dentist can claim similar items,
except team or auto expense, which
are not necessary in his profession, I
Expenses that are personal or con.
nected in any way with the support or