The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-02-07
Income Tariffs Are Figured up by
the Government Experts, and
One of These Men is in
Keokuk.
THEY GIVE THEIR AID
bureau of Washington in Following
Story Has Tried to Settle
Some Disputed
Points.

return II HOT, ILLS di tlSic "hiSAA
has been prepared with the approval
of U. S. revenue experts tells you
how. when and where to do it. The
first thing to be understood is that
the income tax applies only to your
income for the calendar year 1917.
Your income for prior years and your
estimated income for 1918 are not to
be considered.
The war revenue act of October 8,
1917, provides for a normal rate or
tax of 2 percent on net incomes of
unmarried persons in excess OF si,eee
and upon incomes of married persons
or heads of families in excess OF
81, 900 II you are unmarried and your
income for 1917 was $1,000 or more
YOU must get tax blank, fill it out
and file 1t with the collector OF IN
ternal revenue in the district in which
you live. If married and your net
income was $4,000 or more you must
file a return with the collector. Re
turns must be in the hands OF col
lectors not lator than March, i, 1918.
The old income tax under the act OF
September 8, 1916, still is in effect,
so that the total of your tax will be
the sum of these taxes added togeth-
er. Under the act of 1915 the norman
rate of tax is 2 percent on incomes OF
married persons in excess or S4,0Oo
and on incomes of single persons In
excess of $4,000.
For example, If you are married and
your net income for 1917 was S4,5uO
you will pay tax of $50. This is
percent on the amount above your eX-
emption of $4,000 under the act OF
1917, and percent on the amount
above your exemption of $4,000 under
act of 1916. An additional exemption
of $500 is allowed married person
or head of family for each depend
emit child if under eighteen years OF
age or incapable of self-support.
A taxpayer is considered to be the
head of family and entitled to all
the exemptions allowed married
person If he is actually supporting
one or more persons closely connect
ed with him by blood relationship,
relationship by marriage, or by
adoption.
Women Pay Tax, Toe.
Women as well as men must pay
an income tax. The combined net
income of married couple in excess
of $4,000 is assessed. They may file
Joint return or each file a separate
return If desired. If joint return is
filed either one may claim the ex-
emption or it may be divided between
them. A widow, a woman living
apart from her husband or maid is
assessed on her net income above
81, 900.
NET income" means gross income
less certain deductions provided for
by the act. Expenses actually IN
Cured in carrying on any business
may be deducted, but not family nor
living expenses.
In making out your return you may
deduct the following from gross IN
come;
Interest paid on mortgages and
notes and other Indebtedness, except
indebtedness for the purchase of tax
exempt securities;
Rent paid for offices Or business
places.
Taxes paid, except for local i'm
provements such as sewer and water,
income taxes and excess profits
taxes:
Losses sustained in business or
trade arising from fires, storm OF
other casualty or by theft, If not
compensated for by Insurance or
otherwise. If property was pur-
chased prior to March l, 1913 the fair
market price or value on March 1,
1913 is the basis for figuring the loss.
Losses sustained in specuiatlons
and side lines not connected with
your regular business, but these De
auctions must not exceed the pronts
| from similar transactions.
Debts ascertained to be worthless
and charged off within the year
Reasonable depreciation for bust
ness structures, but not for your
residence.
Depreciation for oil, gas wells,
mines, etc.
| You must include under gross In
come the following items:
Salaries. wages and commissions or
compensation of whatever kind for
personal services.
! All profits derived from business,
trade or commerce
Profits from the sale OF property,
real or personal
| Rents.
| Interest on notes, bonds and bank
aonoeits Including savings banks.
| Incomes received from f1duciaries,
| that is amounts received from in
comes of estates. trusts, etc, through
trustees. administrators or executors.
dividends on stock, whether re-
ce;ved as cash or stock. Only diyi-
dends paid out of earnings or profits
accrued since March 1, 1913, are tax
able.
Net partnership profits, whether
divided ard distributed or not.
| Royalties from mines. oil and gas
wells. patents, copyrights and fran
| chises.
Need Not Report These.
! The. following items are not tax