The daily banner. (Cambridge, Md.) 1897-2008, 1918-02-07
PERSONS PAYING INCOME
TAX MUST MAKE RETURNS
This Must be Done Before March |,
And Ones Income For 1917 Nc
counted For.

WASHINGTON. d. C.. Feb. e. Have
you filed your income tax return: IL
not, this article which has been pre-
pared with the approval OF l. ;.
Revenue experts tells YOU how when
and where to do it. The IIrst thing
to be understood is that the income
tax applies only to your income for
the calendar year 1917. Your IN
come for prior years and your estl-
mated income for 1918 are not to be
considered.
The War Rev enue Act OF October
8, 1917, provides for normal rate
of tax of per cent. on net incomes
of unmarried persons in excess OF
$1,000, and upon incomes OF married
persons or heads of families in eX-
cess of $4,000. If you are unmarried
and your income for 1917 was ST.
900 or more, you must get tax
blank, fill it out and file ii with the
collector of internal revenue IN the
district in which you live. If mar
ried, and your net income was ~
900 OF more, you must file return
with the collector. Returns must be
in the hands Of collectors not later
than March l, 1918. The OLD IN
come tax under the Act of September
8, 1916, still is in effect, so that
the total of your tax will be the sum
of these taxes added together. I'm
der the Act of 1916 the normal rate
of tax is per cent. on incomes OF
married persons in excess of $4,000,
and on incomes of single persons in
excess of $4,000.
For example, if you are married
and your net income for 1917 was
$4,000, you will pay a tax of 500.
This is per cent. on the amount
above your exemption of $4,000 I'M
der the act of 1917, and , per cent.
on the amount above your exemption
of $4,000 under act of 1915. An adj
ditional exemption of $500 is allow
ed a married person or head of a
family for each dependent child il
under eighteen years of age or IN
capable of self-support.
A taxpayer is considered to be the
head of family and entitled to all
the exemptions allowed a married
person if he is actually supporting
one or more persons closely connec-
ted with him by blood relationship,
relationship by marriage, or by adop-
ton.
Women as well as men must pay
an income tax. The combined net
income of a married couple in eX-
cess of $4,000 is assessed. They
must file a joint return or each file
a separate return if desired. If d
joint return is filed either one may
claim the exemption or it may be
divided between them. \ widow, d
woman living apart from her hus-
band, or a maid is assessed on her
not income above 1000.
met income" means gross income
less certain deductions provided for
by the act. Expenses actually incur
red in carrying on any business may
be deducted, but not family nor liv-
ing expenses.
Afa ( ing ont 80 = Ct II
may deduct the following from gross
income:
interest paid on mortgages and
notes and other Indebtedness, except
Indebtedness for the purchase OF
tax exempt securities.
Rent paid for offices or business
places.
Taxes paid, except for local i'm
provements such as sewer and water.
income taxes and excess profits tax.
Losses sustained in business or
trade arising from fires: storm or
other casualty or by theft; if not
compensated fer by insurance or
otherwise. If property was pur-
chased prior to March l, 1913, the
fair market price or value on March
1, 1913, is the basis for figuring the
loss.
Losses sustained in speculations
and side lines not connected with
your regular business, but these de-
auctions must not exceed the profits
from similar transactions.
Debts ascertained to be worthless
and charged off within the year.
Reasonable depreciation for bust
ness structures, but not for your
residence.
Depreciation for oil, gas wells,
mines, etc.
You must include under gross in
come the following items:
Salaries, wages and commissions
or compensation of whatever kind
for personal services.
All profits derived from business,
trade or commerce.
Profits from the sale of property,
real or personal. Rents.
Interest on notes, bonds and bank
deposits, including savings banks.
Incomes received from fiduciaries,
that is amounts received from in
comes of estates, trusts, etc, thru
trustees, administrators or executors.
Dividends on stock, whether re-
ceived as cash or stock. Only divi-
dends paid out of earnings or profits
accrued since March 1. 1913, are tax
able.
Net partnership profits, whether
divided and distributed or not. Roy
alties from mines, oil and gas wells,
patents, copyrights and franchises.
The following items are not tax
able and need not be reported in
your return:
Gifts.