South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-02-17

Have YOU filed your income tax
return? III not. this article which
has been prepared with the approval
of L. :. revenue experts tells you
how, when and where to do II. The
first thing 20 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 1913 are
not TO be considered.
The war revenue act of oct 3.
1917 provides for a normal rate of
tax of two per cent on net incomes
of unmarried persons in excess Of
$1,000 and upon incomes of married
persons or heads Of families in ex
cess of $4,000. If you are unmar-
rico and your income for 1917 was
$1,000 OF more YOU must get a tax
blank. fill it out and dle it with the
collector of internal revenue in the
district i'm which you live. If mar
iied and your net income was $4,000
OF more YOU must file a return with
the collector. Returns must toe in
the hands of collectors not later
than March /. 1918. The old in
come tax under the act of Sept. s,
1915 still is in effect, so that the to-
tal OF your tax Will be the sum of
these taxes added together. Under
the act of 1916 the normal rate of
ia is two percent on incomes of
married persons in excess Of $4,000
anC or incomes of single persons in
excess o. $4,000.
For example. if you are married
and your net income for 1917 was
l$4,500 you will pay a tax of $50.
This is two percent on the amount
above your exemption of $4,000 un-
der the act Of 1917 and two percent
on the amount above your exemp-
ton Of $4,000 under act Of 1915 An
additional exemption of 5000 is al
lowed a married person or head OF a
family for each dependent child if
under is years Of age or incapable
OF self-support.
A taxpayer is considered TO be the
head of a family and entitled 10 all
the exemptions allowed d 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 as well as men must pay
an income tax The combined net
income Of a married couple in eX-
cess of $4,000 is assessed. They
may file a joint return or each file
q separate return if desired. If
joint return is filed one may claim
the exemption or it may be divided
between them a widow. a woman
living apart from her husband or a
maid is assessed on her net income
above $1,000
Net income" means gross IN
come less certain deductions pro-
vided for by the act.
Expenses actually incurred in
carrying on any business may be de-
Quoted but not family nor living eX-
/ penses.
In making out your return you
may deduct the following from gross
income:
Interest paid on mortgages and
notes and other Indebtedness. eX-
cept indebtedness for the purchase
OF tax exempt securities.
Rent paid for offices or business
( places
Taxes paid. except for local i'm
proyement such as sewer and water.
income taxes and excess profits
taxes
! Losses sustained IN business or
other casualty or by theft: If not
compensated for by insurance or
otherwise. II property was pur-
chased prior 20 March ]. 1913 the
| fair market price or value on March
| !. 1913 is the basis for figuring the
loss
Losses sustained in speculation