The weekly Iberian. (New Iberia, La.) 1894-1946, 1918-03-16
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

| before June Is, 1918
IL you were single and your net III
| come for 1917 was $1,000 or more you
| must file return.
| If you were married and living Win
| wife Cor busband) and had net IN
| come of $1,000 or more Cor lei' you
| must flc a return.
| Husbands and wife's income must
ne considered Jointly. plus income OF
minor children.
Income Of minor or incompetent
| derived from n separate estate, mus
be reported by his legal representa-
tive.
Severe penalties are provided Tor
| those who neglect or cvade the law.
For false or fraudulent return there
IS a penalty not exceeding S2,ooo me
or years Imprisonment, or both, pius
100 per cent. OF tax.
For failure to make return on or
before April l, 1913, fine Is from S=o
to $1,000 plus so per cent. of tax due
| Returns must be hled 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 incapacltated.
Each return must be signed and
sworn or affirmed by person execut-
Ing 1t.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
| Cor husband) Is allowed $1,000 exemp-
ton. plus $500 for each dependent
child under 1S.
A head of family, though single, Is
allowed $1,000 exemption II 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
bic 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 ex-
. | plnnt from IeUeEbi tuCoiHc 'hA "''
should be omitted.
Interest on United States govern
ment bonds is also exempt, except on
Individual holdings Of Liberty Fours In
2 excess of $4,000 par value.
Dividends are not subject to normal
tax, but must be reported and included
| in net income.
, Gifts and legacles are not income
and should not be included on the re-
turn of the beneficiary.
life insurance received rs bene-
ficiary or as premiums paid back at
] maturity or surrender Of policy Is not
income.
e 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
ut the net income.
Necessary expenses actually paid In
the conduct OF business, trade or pro.
fession 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
materials and small tools for immedi'
ate use.
The amount of rent paid for farm
may also be claimed as a tenant farm
cr's expense.
PAYMENTS for i've stock are alIowa
hle II bought for resale. But II bought
= for breeding purposes cattle are IN In
vestment. not an expense, and cannot
be allowed.
l. A storekeeper can claim amounts
n paid for advertising, clerk hire. tele
phone, water, light and fuel. also dray.
{, age and freight bills and cost Of OPP
d Grating and repairing wagons and
trucks.
physician can claim cost of his
u professional supplies, rent, office help
!; telephone. expense Of team or automo
d bile used In making professional calls
n and expenses attending medical con
II ventions
nj dentist can claim similar items
except team or auto expense. which
nre not necessary In his profession
Expenses that are personal or con
=, nected In any way with the support OF
well being Of a person or family arr
not allowable.
!. The costs of machines, Instruments
I" vehicles or implements that are more
. or less permanent IN character are no,
] allowable as an expense. They are In
= vestments
| Interest paid on mortgage or other
q personal indebtedness Is allowable on
Q u personal return.
All taxes paid within the year car
be taken out on federal return. ex
. cept federal income taxes, inheritance
}. taxes and assessments for local i'm
,r provements
10 Losses sustained In business O,
d through fire, storm or shIpwreck or b,
M heft, except when compensated by in
y, surance or otherwise.
Wear and tear Of rented buildings OF
, machinery used In business may bs
'laimed.