The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1918-01-25
INCOME TAX LAW
FULLY EXPLAINED
Read It Carefully and Clip The Article
For Future Reference

income tax returns under provisions OF
the new war revenue tax law, the fol
lowing instructions have been issued
explaining various features of the law
which affect large majority of the
people, particularly single persons with
incomes of $1,000 or more and married
persons with incomes of $1,000 or more.
The time limit Tor filing returns is
March |, while all income taxes must
be paid to the government not later
than June 5, 1918.
The law affects the following indiv,
iduals:
"All unmarried persons whose net in.
come equals or exceeds $1,000.
"All married persons whose net in
come. including that of husband or
wife, equals or exceeds $1,000.
"A married person is allowed an al.
dltional exemption Of $500 for each de.
pendent child under IS wears of age.
THE income of child under 10 years
OF age must be included in parents re-
turn.
Income means all salaries, fees, com.
missions, bonuses, royalties, dividends.
interest, rents, etc, received during
the calendar year of 1917 on all trans
actions for the year 1917.
"A farmer must report as income all
crops sold during 1917 and any part of
1915 crops sold during 1917.
"Alt corporations and individuals who
have heretofore filed returns will
receive return direct from
Baton Rouge as soon as they ale avail
able.
"A single man receiving a salary of
$500 year is allowed an exemption of
$1,000 for living expenses. He would
pay an income tax OF $40, orr per cent
on $500,
"A married man with a dependent
child under 10 years of age receiving |
salary Of $1,000 is allowed an exemption
OF $1,000 1,O0O for wife, $1,000 for him.
self and $500 for minor child and would J
pay all income tax of 81, orr per cent
on $500. If each married person has
separate income they may file a separ.
ate or a joint return. If each files a |
separate return, they will only be al.
lowed an individual exemption,or 81 900
each.
The above examples are based upon
the amended 1917 income tax law, It is
important here to point out that the
1916 income tax laws are also in force
and the exemption allowed for a single
man under this law is $8,OOO,and mar.
rIed person $4,000 For example, "a single |
man receiving total income of $4,000
under the 1915 law would pay tax of 2 |
per cent on $4,000 (the excess of $4,000
eXemptlon} or $40, and also would pay
2per cent tax on $4,000 1.-THE excess of
$1,000 exemption) or $50 under the 1917
law, making the total tax of single
man receiving $4,000 salary $12O.
In the case of married man receiy-
ing a salary of $4,000 under the 1915
law, an exemption of $4,000 would be al.
lowed, leaving $1,000 taxable at 2 per
cent or $40. Under the 1917 law an ex-
emption of $4,000 is allowed, leaving
$4,000 taxable at 2 per cent or $40.
Therefore, the total income tax due
from married man receiving a salary
Of $4,000 would be $780,, - -.
THE $500 exemption for each depen-
dent child under IS years of age is al.
lowed under both laws, and would in.
crease the personal exemption of $4,000
and $4,000.
"PartnershipS,or persons carrying on
business in partnership are liable for
income tax only in their individual can.
aciIy of their share of profits, when
they are determined; whether divided
or not. This applies to the normal and
and additional taxes.