The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1918-03-21
FEDERAL. INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

before June -, lols
II you were single and your net in
come for 1917 was $1,000 or more you
must file return
| II you were married and living with
wife Tor husbnndl and had net In
come Of 5000 or more FOR 1917 you
must 6lc return
Husbands and wlfes income must
oe considered Jointly, plus income OF
| minor children
Income OF minor or Incompetent,
derived from separate csluic must
be reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or eyade the law
For false or fraudulent return there
is penalty not exceeding $1,000 fine
or years Imprisonment, or both, plus
100 per cent Of lax.
For failure to make return on or
before April |, 1918, fine Is from $40
v" Fl,'Vii HlhN b' Itt ''Htt W 'bN hu's
Returns must he filed with the Col
lector of Internal Revenue Of district
in which you live
An agent may hlc return for per
son who is III, absent from the country
or otherwise iucapaeitated
Each return must he signed and
sworn or affirmed by person exccut-
Ing H.
Single persons are allowed $1,000
exemption in computing normal tax,
A married person living with wife
Tor hushand) is allowed $1,000 exemp-
ton. plus 5000 for each dependent
child under IS
A head of family. though single, is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns mu 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 U. S. Is OK
empt from federal income tax and
should be omitted
Interest on United States govern
ment bonds Is also exempt, except on
Individual holdings of Liberty Fours In
excess Of $1,000 par value.
Dividends are not subject 10 normal
tax, but must be reported and included
in net income.
Gifts and legacies are not income
and should not be included on the re
turn of the beneficiary,
Life insurance received as n bene-
ficiary or MS premiums paid back at
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, but
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-
fesslon may be claimed.
A farmer can claim payments for
labor, seed. fertilizer stock feed, re-
pairs on buildings, except his dwelling;
repairs Of fences and farm machinery,
and small tools for mmedi
ate use
The amount OF rent paid for farm
may also be claimed as n tenant farm
cr's expense.
PAYMENTS for i've stock are allowa-
hle If Fought for resale But II bought
for breeding purposes cattle are an In
vestment, not an expense, and cannot
be allowed.
A storekccpor can claim amounts
paid for advertising, clerk hire tele-
phone, water light and fuel also dray-
age and freight bills and cost Of OPP
Grating and repairing wagons and
trucks
physician can claim cost Of his
professional supplies rent, office help,
telephone. expense Of team or auiomo-
bile used In making professional calls
md expenses attending medical ron
ycntions
a dentist can claim similar Items.
except team or auto expense, which
are not necessary ~ his profession.
Expenses that are personal or con
neeted In any way with The support or
well belng Of 0 person or family are
not allowable
The costs Of machines, Instruments,
vehicles or implements that are more
1r less permanent IN character are not
allowable as an expense They are In
yestmrnis
Interest paid on q mortgage or other
personal Indebtedness Is allowable on
q personal return
All taxes paid within the year can
be taken out on a federal return. OK
.ept federal income taxes. inheritance
taxes and assessments for local i'm
Losses sustained IN business or
through FIRE, storm Or shlpwreck or By