The Carlisle independent., 1918-03-21
INCOME
 # TAX IN BRIEF
The Requirements Boiled Down
 for Busy Folks.

April 1, I9IS.
 Tax due may be paid now or on or before June 15, 1918.
 If you are single and your net in come for 1917 was S1,000 or more you must file return.
 If you were married and living with wife Cor husband) and had net in come of s2,000 or more for 1917 you must file a 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 penalty not exceeding S2,00O fine or years imprisonment, or both, plus 100 per cer-. of tax.
 For failure to make return on or before April l, 1918, fine is from S2o 
 Returns must be filed with the Col lector of Internal Revenue of district in which you live
 An agent may file return for per son who is il, absent from the country or otherwise inoapacitated.
 Each return must be signed and sworn or affirmed by person execut- ing it.
 Single persons are allowed Sf.0o0 exemption in computing normal tax.
 married person living with wife Cor husband) is allowed 5000 exemp- ton, plus s2O0 for each dependent child under IS
 4 head of family, though single. is allowed 5000 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 ble on the salaries or wages received from u state, county, city or town in the United States.
 Interest on state and municipal bonds issued within the [. 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 5000 par value.
 Dividends are 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 re turn of the beneficiary.
 Life insurance received as a bene- ficiary or as 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 gages is taxable income.
 From the entire gross income cer- tain allowances are made in arriving at the net income.
 Necessary expenses actually paid in the conduct of business. trade or pro- fession may be claimed.
 A farmer can claim payments for labor, 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 a farm may also be claimed as a tenant farm er's expense.
 Payments for live stock are allowa- ble If bought for resale. But if bought for breeding purposes cattle are an in vestment, not an expense. and cannot be allowed.
 storekeeper can claim amounts paid for advertising, clerk hire, tele- phone, water, light and fuel, also dray- age and freight bills and cost of op- erating and repairing wagons and trucks.
 A physician can claim cost Of his professional supplies. rent, office help, telephone, expense of team or auteme- bile used in making professional calls and expenses attending medical con- ventions.
 A dentist can claim similar items, except team or auto expense. which are not necessary in his profession.
 Expenses that are personal or con- nected in any way with the support or well being of person or family are not allowable.
 The costs of machines, instruments, vehicles or implements that are more or less permanent in character are not allowable as an expense. They are in- veStmentS.
 Interest paid on mOrtgage or other personal indebtedness is allowable on a personal return.
 All taxes paid within the year can be taken out on a federal return, ex- cept federal income taxes, inheritance taxes and assessments for local i'm