Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1918-03-22
FEDERAL INCOME
TAX IN brief
The Requirements 1oi,sa Dc.1
for Busy Folks.


IF Eou are sio@I" and yoar net in
come 1og afI VAS $1,000 or more You
must file return
If you ere married ana living with
wife Cor husaaHH au3 had net in
come of $1,000 or more Tor 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 a separate estate, must
be reported by his legal representa-
tive
Seeere 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 l, 1918, fine is from $40
to $1,000, plus 80 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 per-
son who is ill, absent from the country
or otherwise inCapacitated.
Each return must be signed and
sworn or affirmed by person eXecut-
inc it.
Single persons are allowed $1,000
exemption in computing normal tax.
A married person living with wife
Cor husband) is allowed $4,000 eXemp-
ton, plus 5000 for each dependent
child under 10.
A head of family, though single, is
allowed $4,000 exemption if actually
supporting one or more relatives.
Returns must 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 state, county, city or town in
the United States.
Interest on state and municipal
bonds issued within the U. S. is ex-
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 to 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 bene-
ficiary or as 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
fession may be claimed.
\ farmer can claim payments for
labor seed fertilizer, stock feed. re-
pairs on buildings. except his dwelling;
repairs of fences and farm machinery.
materials and small tools for immpdf-
ate use.
The amount Of rent maid for farm
may also he claimed as tenant farm
pr's rvucnsp
PAYMENTS for live stool; ora afrov.o.
HE If bought for resale PM If borghf
for Lroraina urrno2ps cattle are an i'm.
ycstmenf. not an eypeuse. and cauuot
ne allowed
sforol,opner con claim amounts
raid Sor ADVERTISING. cIorl, hire telp.
nhone water Iiabr and fupI alsn draw
are and freight hills and cast If an
Grating and repairing wagons and
trucks
rhv4ician con claim COST of Mis-
rrorossioroI snnnIios ront ofica holm
toranhonn avnansn If foam ar ortor,o-