The Alaska daily empire., 1918-03-06
INCOME TAX
 PRIMER FOR
 BUSY FOLKS

10. Is a married man entitled to a personal exemption of $2,000. and $400 additional exemption on account of two dependent children, whose to- tai net income does not exceed $2,- 400, but does equal or exceed $2,000, required to render return?
 Yes While he will not be requir- ed to pay an income tax, he is re- his net income equals or exceeds $2,0O0.
 II. l act as agent for nonresi- dent alien individual. What respon- abilities are imposed upon me by | the income-tax law?
 As the agent of nonresident alien individual, you are responsible for correct returns of all income ac- cruing to your principal within the 1 purview of the agency, and for pay ment of any and all taxes assessed 1 against that return.
 F. If an individual engaged in business takes an inventory and clos es his books on any day during a calendar year can he render his per sonal income tax return on the basis of that fiscal year?
 No. A personal income tax return can not be rendered for any other period than a full calendar year. l 13. Where can l get blank forms upon which to render my return?
 From the collector of internal reve- I nue for your district. The collector 1 will endeavor to have such forms sent to you, but failure to receive one will not excuse you from making return. If you do not receive one, it is your duty to request the co!lec- tor to furnish you with a copy.
 Rate of Tax i IA What personal income taxes are imposed upon income received during the calendar year 1917?
 In computing income tax liability for the year 1917 the normal and ad- ditional income taxes imposed by the act of September s, 1916, and also 1 the act of October ,, 1917, are to be ! considered.
 Under Section l (a) of the former act normal income tax of 2 per cent is imposed upon so much of 1 an individuals net income. exclus- ! i've of that derived from dividends on the capital stock, or from the net earnings of corporations, joint stock | txe. nfr n 1 as exceeds the amount of personal exemption to which he is entitled under section '; and so much of his total net income, including that de- rived from individuals and net earn ings of corporations. as exceeds $20,- 900 as subject to the additional in come tax at the graduated rates pre- scribed by section l tbD. Under section 1 of the act of De- l tober 3, 1917, so much of the indiv- iduals net income exclusive of divi- dends, etc, as exceeds the amount 1 of personal exemption allowed by section 3 is subject of his total net income, including dividends. as ex- ceeds $5,O00 is subject to the addi-
 
 | tional income tax at the graduated rates specified in section 2, act of | October 3, 1917.
 Exemption
 1 15. What amount of personal eX- emption is allowed by each of the | two acts?
 | Section of the Act of September | 8. 1916, allows personal exemption | of $3.00O to unmarried persons, plus ] 1000 additional if the person mak- i ing the return be the head of fam i fly or a married man with a wife liy- | ing with him. This additional ex- emption of s1,000 is allowed if the person making the return is a mar ried woman with a husband living with her, but in no event shall this additional S1 900 be deducted by both husband and wife.
 The exemptions allowed by section of the Act of October 3. 1917, are the same as under the act of Sep tember 8. 1916. except that the ex- emptions of s3,O0O and $4.00O allowed by the 1916 act are, respectively, $1.OOO and S2,000.
 In addition, a further exemption of $200 is allowed for each depend