The Dawson news. (Dawson, Ga.) 1889-current, 1918-01-29
Things TO KNOW
ABOUT INCOME TAX
INCOMES THAT ARE BOTH SUB.
JECT AND EXEMPT. PENAL
TIES FOR NEGLIGENCE.

Here are set forth the essential
features of the new income tax law,
which. with the new year, became of
almost universal scope:
Every person in the United States,
married or the head of a family,
whose income for 1917 equaled or
exceeded $4,000, and every unmar-
RED person with income of $1,000 or
more. must file a return for income
tax with a collector of internal rev.
enue or his agent before March 81.
Failure to do this renders the per-
son liable to a fine of not less than
$40 nor more than $1,000.
Every person married or the head
of a family is entitled to an exemp-
ton of $4,000, plus $500 for each de-
pendent child under IS.
Every unmarried person is entitled
to an exemption of $1,000.
The tax rate is 2 per cent of net
incomes up to $4,000. The net in
come is the amount exceeding the
exemption. Incomes exceeding $4,000
are subject to 2 per cent. plus an ad-
dtional tax at graduated rates.
In its wide scope the tax law is un-
Ineligible to most of the persons to
be affected. The points aforesaid are
merely a few general items, the law
as a whole being many sided.
Agents viii be sent to every coun-
ty in the state to explain the income
tax law and help individuals in filing
out the required forms. One will be
in Dawson on February 18th next,
and viii remain several days.
Many incomes, for instance, are
exempt from taxation. They are as
follows
The proceeds of life insurance pol
icies paid to individual benefciaries
upon the death of the insured.
The amount received by the in
sured, as a return of premiums paid
by him under life insurance, endow-
ment or annuity contracts, either
during the term or at the maturity
or surrender of the insurance con-
tract.
The value of property acquired by
gift, bequest, devise or descent. 1t
must be understood, however, that
the income derived from such prop
erty is taxable.
Interest upon the obligations of a
state or any political subdivision of
state, or upon the obligations of
the United States, issued after Sep
TENDER l, 1877, only to the extent
provided in the act authorizing their
issue.
President and Judges Excepted
Interest upon the obligations of
any possession of the United States
or securities issued under the farm
loan act OF July II, 1915.
Compensation of the present pres
ldent of the United States during the
term for which he has been elected,
and the judges of the supreme and
inferior courts of the United States
IN Office October 8, 1917.
Compensation of all officers and
employees of a state or the political
subdivision of a state, except when
such compensation is paid by the
United States government. This in
Guides the official salaries of public
school teachers, state and county Of
hcers and employees of municipalities;
but income sources other than state,
county and municipal funds and 9TH
er sources above enumerated is tax
able.
In the meaning of the law there is
distinction between net and gross
income. Only the net income is taxa
Ole. From the gross income may be
deducted contributions to certain
charitable, religious or educational
purposes; certain taxes for improve
ments or betterments; certain ex-
penses of conducting the business
from which the gross income is deriv-
ed, etc.
A physician, for instance, may
claim as deduction from his gross
income the following: The cost of
medicines and medical supplies used
BY him in the practice of his profess
SION, expenses paid in the operation
and repair of an automobile used in
making professional calls, dues to