The Springfield herald., 1918-03-15
FEDERAL INCOME
TAX N BRIEF
The Requirements Boiled Down
for Busy Fslks.

AA - 41S0s
Tax due may b $50 o-new O. op or
bsfose June ID. lna&
n Joa were single and your net In
come fss MT w4s sAoeo - more you
uaast dle Q rvtusn.
II ye0 wsso named and living with
wife Cor husband, and had . MT n
come Of 1900 or more for 1S17 you
must Ala . return.
: husbands and w4fe's income must
b. considered 3oa.tly. plus income Of
rainoe children.
Income Of a minor or Incompetent,
derived from q sspasste ssesea. must
be repspted 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 $4,000 nne
sr years Imprisonment, o. both, plus
roo per cent. Of tax.
For failure to make return on or
before April !, 1913, nne b from so
70 s1.Ooo. plus 50 per cent Of tax due.
Returns must be flied With the Col
isctor a Internal RSvenus of diSkiet
Ia which yuu live.
An agent may fse return for PSF
son who 10 III. absent from tss country
q otherwise incapaeitated.
Each return must bs dgned and
sNo9n Or afirDed By psfsou s1ecut-
NC 1t. '.
Single persons are allowed 1900
exeoDflpn in computing HosD0 tsx
4 married person living wteA wife
(ss huseand) b allowed S7y0oo e1sAr
t1po, plus &20O Ter soSA 0eVso6ede
cAild uader 18.
A head Of family, though single. b
allowed $1,000 exemption II actually
Supporting one or more rela1ves.
returns must ahow the entire
ausount Of earnings gains and prodts
reselvsd during the year.
OActsls snd employees are not taxa.
bic on the salaries or wagss neesaved
from . sests, county. city or town In
the OMITTED States.
Interest on state and municipal
bonds issued within the q. 8. u ex.
ernpt from federal income tax and
should be omitted.
interest on United States govera-
ment bonds 10 also exempt, except on
Individual holdings Of Liberty Toufs IN
excess Of 5000 par value.
DividAnds srs not subject to- normal
tnx, but most be Svported and fHcu6ed
IN net ineomA
Gifts and lssacies are not income
and should not be inc1uded On he ~
turn Of the beneficiary.
Lafe insurance received ~ . bene-
fclary OF a. premiums paid beck At
maturiey or surrender q policy . not
Income.
Paymsnts received for real OF per
ssnL property sold IL not income. but
the profit realized thereon II income
Gor the year Of sale.
Amounts received in payment OF
notes or mortgages II not Income. but
tho interest on such notes 6r mort
gnees 10 tAxable income.
Prom the entire gross inccme' esf-
tain allowances are made In arn0ng
at the net income.
Necessary expenses actually paid ii
the conduct Of business, trade OF pro-
fession may be claimed.
A fxfner can claim payments for
labor, seed. fertilizer, stock feed. re-
pairs on buildings, except his dwelling:
repairs Of fences and farm machinery,
nates1als and smaY tools for immsdi-
ate ne.
The amount Of rent paid for farm
may also be claimed n tenant farm
ers expense.
PAYMENTS for live stock ere sllowa-
bic II fought for resale. But ifbousht
for breeding purposes cattle are an In.
vestmsnt, not an expense. and cannot
be allowed
A storekeeDes can claim amounts
paid for advertising. clert hire. tele-
phone, water. Hight and fuel. also dray-
sxe and freight bills and cost Of op-
Grating and repairing wagons and
trucks.
A physician can claim cost of his
professional supplies, rent ONCE help,
telephone, azpsnss Of team or apsomo-
bile used In batting professional calls
and sxDsnDes attending medical con-
veue4ons.
A dentist can claim similar items.
except team or auto expense. which
are mot necessary IN his profession.
Expenses that are personal or con-
nected In any way with the support or
we'll being Of a person or family are
not allowable.
The costs Of machines. instruments.
vsAiesss or implements that are more
Or less permanent In character are not
allowable a. IN sxpsoss. They are In
vsstnsnts.
Intsrest paid On Q mortgage or other
personal indsbtsdnsss u allowable on
4 peroonai return.
Al taxes paid within the year can
be taken out an . federal return. ex-
eept federal income taxss, Inheritance
taxes and a1usssmsnts for local I'm
provemsnt1.
Losses sustained 10 business or
through dSs. Storm o. shipwreck or BY
theft, sxespt vtsn eompsnsated BY ln-
surancs or othsfWiSs.
wssr ana tsss q rented buildings or
machinery ussd IN business may be
claimed
You can also claim the amount paic
to tha RED CsoD and to other chsrita
haA fsnsisu or educational organiza
0pn b ths extent Of ID per cent. OF
yoQT net i0c0DA