The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1918-03-21
INCOME
TAX in BRIEF
The Requirements Boiled Down
for Busy Folks.


April L, 1918.
Tax due may be paid now or on or
before June 10, 1913.
If you were single and your net in
come for 1917 was $1,000 or more you
must file a return.
If you were married and living with
wife Cor husband) and had a net in
.-ome of $1,000 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 q 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 a penalty not exceeding $1,000 fine
or years Imprisonment, or both, plus
100 per cent Of tax.
For failure to make return on or
before April 1. 1918, fine is from $50
to $1,000. plus so per cent of tax due.
Returns must be filed with the Col
lectOr of Internal Revenue of district
in which you live.
An agent may file return for a per
son who is i'll. absent from the country
or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person eNerut-
ing it.
Single persons are allowed $1,000
exemption in computing normal tax
married person living with wife
Cor hus!land) is allowed $1,000 exemp-
| ton. plus 5000 for each dependent
/ child under IS
head of family, though single, is
allowed $1,000 exemption If actually
/ supporting one or more relatives.
Returns mu4t show the entire
amount of earnings, gains and profits
received during the year.
Officials and employees are not taxa
bile on the salaries or wages received
! from a state. county, city or town in
the United States.
Interest on state and municipal
bonds issued within the q. S. is ex-
empt from federal income tax and
should be omitted.
Interest on United States govern
ment bonds is also exempt, except on
4 individual holdings of Liberty Fours in
excess of $1,000 par value.
Il Dividends are not subject to normal
4 tax. but must be reported and included
in net income.
Gifts and Iegacies 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 al
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. bu
the interest on such notes or mort
cages is taxable income.
From the entire gross income Ger
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,
farmer can claim payments fol
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 n farm
may also be claimed as a tenant farm
er's expense.
Payments for i've stock are aIlowa
hle if Fought for resale. But If bough
for breeding purposes cattle are an in
yeStment, not an expense, and cannO
be allowed.
storekeeper can claim amount
paid for advertising. clerk hire. tele
phone, water, light and fuel. also dray
age and freight bills and cost Of op
Grating and repairing wagons an,
trucks.
a physician can claim cost of hi
professional supplies, rent. office help
telephone, expense of team or automo
bile used in making professional call
and expenses attending medical COZ
ventions.
A dentist can claim similar items
except team or auto expense, whic.
are not necessary in his profession.
Expenses that are personal or COZ
DeCIGu IN any way WIFI the support o
we'll being of a person or family ar
not allowable.
The costs Of machines, instrument,
vehicles or implements that are NOR
or less permanent In character are nc
allowable as an expense. They are II
veStmentS.
Interest paid on a mortgage or othe
personal Indebtedness is allowable o
n personal return
All taxes paid within the year ca
be taken out on a federal return, e
cept federal income taxes. fnheritanc
taxes and assessments for local II
prOvements.
Losses sustained In business c
through fire, storm or shipwreck or b
theft, except when compensated By Il
surance or otherwise.
Wear and tear OF rented buildings
machinery used IN business may /
claimed
You can also claim the amount pal
to the Red Cross and TO other charIti
bic. religious or educational organic,
ton TO the extent OF Is per cent.