The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-02-28
RETURN OF INCOME TAX
AND HOW It IS PREPARED
VALUABLE INFORMATION FOR IN
DIvlDUALS IN PREPARING
REPORTS.

The New York Sun of the 18th con.
tanned detailed analysis of the in.
come and excess profits tax returns
That part of ii referring to individual
returns will be found below The Sur
says: 1T is estimated that between
100000 and 100000 American citi-
zens are wrestling for the first time
with problems created by federal taxes
on income and profits. They are en-
gagged in the task of acting as their
own assessors and fling their returns
with their collector of internal rev.
enue on or before April l. Payments
to be made on or before June Is range
from the $235,OOO,OOO by the United
States Steel corporation to 80 cents by
the $40 a week unmarried clerk OF
stenographer and $1.60 by the $40 a
week married person The direct fed
eral taxes for the calendar year 1917
comprise an individual income tax, an
individual excess profits tax, part
nership excess profits tax and a cor
poration excess profits tax Both the
Individual and the corporation income
tax combine the income tax of 1916 and
the additional war income tax of 1917.
The excess profits taxes were the re-
suit of single piece of legislation
$e42,000,000 from the war income tax
ard $l040,000,000 from the excess
profits taxes This combined with the
$%59,500,0O0 paid under the 1916 law
still In force would give a grand total
Of $2,241, 100000 More than 25 per
cent of this amount; it is thought, will
be paid in New York State"
Excess Profits
Although examples are given illus
trating the complex character of the
excess profits law, the sun makes this
comment: individuals and partner
ships with net income of $4,000 or
less and corporations with net in
Genes of $4,000 or less are not con-
cerned with the excess profits tax
regulations; but others cannot hand
IN their income tax return without a
computation of the excess profits tax.
The regulations cover 10 articles and
1S5 paragraphs, and it is assumed that
ne one subject to the excess profits tax
will be able to make out his return
without expert assistance"
Individual Returns,
Taking up in detail the consdera-
tons affecting the individual income
tax return, in which more than rs
per cent of those paying direct fed
eral taxes are particularly interested,
1t should be noted that congress saw
fit to continue the income tax law of
1916, called the old income tax, and
superimposed the war income tax law
ri 1917 called the war income tax,
the act also including the excess
profits tax. There must at the out
set be no confusion between the in
come taxes and the excess profits tax,
although no net income return in ex-
cess of $4,000 can be computed with
out a credit for the excess profits tax
For purposes of the income tax pay.
ment for the calendar year 1917, to be
made on or before June 49, the old
income and the war income taxes can
re combined.
u.
you need not bother about the in
come tax return if you are single and
your income is less than $1,000 or if
you are married and do not live with |
your wife Cor husband) and your net
income is less than $1,000. You need |
not make a return If you are married |
and live with your wife Cor husband) |
and your net income is less than $2aN |
You need not make a return if you are |
m officer or employee of a state or any
pl litical subdivision thereof except |
when your salary is paid by the |
United States government. Nor do
you need to report the following kinds
d income: Proceeds of life insurance
policies paid to you as a beneficiary
upon the death of the insured; any
,um received by you as a return Of /
premium paid by you under life in
Iurance, endowment or annuity con-
racts, either during the term or at
he maturity of the term mentioned in
he contract or upon the surrender of
he contract; the value of property ac- h
luired by gift, bequest, devise or de- 6
cent (although the income from such S
property must be listed as income) Is
cterest upon the obligations of state
I any political subdivision thereof;
interest upon the obligations of the c
United States except in the case of d
UGH obligations issued since Septem- f
er ], 1917, upon the amount by which h
our holdings exceed $4,000 par value; n
lterest upon obligations of the pos g
assions of the United States, and in h
rest upon securities issued under the s.