Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-01-05

term head 81 family" ussd IA ths
sense indicated--''a person who actu-
ally supports ono or mors individtaals
connected with him or. her by blood
Relationship. relationship by marriage
or adoption. or whose relation y haseA
on some moral or legal obligation."
!. Il u sufficiently plain ANA the rsaAss
may understand his rights In the ulAtss
ter. q
That one 10 not = citissn doss not re-.
lleve him from the obligatium Of flino
an income tax schedule tindeed. the
tax y moro hurdensoms On aliens than
ON citisenS. n N n
Defining : citlxsn.
Il, "A citizen 10 q person born Or nat
urhlixed IN the United States: cit1sen
Of any other country than the United
States whose domicile 10 IN the United
States who has therein his principal
business. and who II therein peTma-
nently occupied or employed even tho
his domdcile 10 without the United
States. IL held to be . citizen Of tho
United States, M
The income tax laws cover every cit.
izen residing In the United states and
this includes the territories of AlaskA
and Hawaii and the District Of Colum-
bia. IA
Gross income means the gains, prof
it,, and incomes for the full calendar
year, or by the fiscal year. a. tax
payer 80 keeps his accounts. .
Income from dividends are free Of all
normal taxes, and this very i'm.
portant matter for, schedule makers to
keep In mind. The reason for this II
that corporations pay 8 per cent corr
roration tax to tho government. But
income from dividends must be res
ported. ss
Reduced 10 $500.
Under the old law tho surtax on IN
comes starts At $50. 900: under the law
Of Oct. 3, 1917, excess Of $4,000 income;
after exemptions. is subject TO q GRADED
scale Of taxes.
Dividends after, passing the $4,000
mark become amenable to the suftax
under the law Of Sept. 3, 1915.
Merchants In preparing their sched-
ules should understand that payments
for merchandise under the 1nstAllmont
plan count rs income: that merchants
may also make claims for deductions
for the hire Of clerks and other en-
ployes, for the cost OF light; fuel, etc.
freight. delivery wagons, trucks. etc.
but not for the cost OF goods. Wages
to minor children can not be deducted.
A physician is allowed to claim fof
the cost Of medicines used. for the ops
60 - -
which ne makes calls, subscriptions TO
medical Journals and even for expenses
resulting for his attendance on medical
conventions; the cost Of fuel and light
for office, for water, and for Office rent.
even II using a room in property owned
by him, although the rent paid would
have to be reported as income, % that
no benefit accrues.
Confusion Has Resulted.
Much confusion has resulted pro and
con from the debates In congress and
the enactment OF a law substituting
Information at the source for with
holding at the source. save where the
bonds OF corporation are secured by
a mortgage containing the so-cAlled
tax-free clause Corporations assum-
ing government taxation on their bonds
may continue to withhold income tar
at the source; all others must report
payment of interest Of all character to
investors to the collector OF internal
revenue In their district In this way
the revenue bureau will check UP on
reports III {. y
All employers bankers. corporations.
etc. other than Withholding corpora-
tons that have withheld part Of any
ones income for 1917 at the source
must make return OF the income With
held at once. reporting the matter 10
the internal revenue bureau.
Prepare Special Checks.
This Is q matter that has caused
great Inconvenience. especially for
some OF the great trust companies han
ding a great coupon collection BUSH
ness. It il understood that some Of
these companies have had special
checks prepared citing the occasion Of
the return Of funds to indiyiduals.
Information at the source refers to
all income paid In interest all requests
for services, when the amount II $780,
while real estate operators, stock bro.
kers, and every class of business men
make return Of information Of money
paid out to another. Uncle Sam has
the business community Of the nation
working for him, and makes severe
penalties for failure to report ana even
more severe for invent to defraud.
Withholding at the source 81 still IN
effect on the fixed annual periodical
gains, profits, snd income Of nonresi-
dent aliens other than dividends on
stocks. associations, etc, which are tax
able on their net income
No Exemption Allowed.
This Withholding Is at the rate of !
per cent. and there are no Nxempttons.
Also from the income Of nonresident
alien partners not engaged in bun
ness or trade within the United states
and not having any piece OF b,iSinAss
therein, when derived from interest on
bonds and mortgages deeds Of trust or
similar obligations Of other domestic
or other resident corporations, aSs0ciA-
lions, etc. the withholding being On ~
2 pen cent basis, with no exompt ions.
Hays Father eslls Farm.
Special to blican. 81
Glidden, Jan. GA real estate tTans-
action was closed Thursday. IN which
Harvey Hay, the father or Merle y.
Hay. the soldier killed In France dis
posed Of the forty acre tract across
the road from the farm which he oc-.
cupies. and which he purchased ahouts
q year ago for $4,000. to- Ernest $50
for $1,000 There was q small unoos@