Pine Bluff daily graphic., 1919-03-09
THIS TELLS HOW TO
 FIGURE INCOME TAX
SquareIy Up to Every Individual to Get Busy by March 15
 or Suffer Penalty.

l Don't wait until the final due date
 March 15. for paying your Income Tax
 and making your return. Avoid the { last minute rush. Any person can fig
 ure out his liability today as well as he
 can next week, and if there is any point on which he needs advice he can now get in touch with Revenue man. This word of advice is from Jack Walker. Collector of Internal Reve-
 nue, Little Rock, who is collecting the
 Income Tax in Arkansas Collector 1 Walker is giving without charge every
 aid of his office and his enlarged field
 force to help the people get their pay
 mentS and their returns in by March ! 10th.
 1 But the Income Tax men will not l pull your door-bell or your coat-tails,
 according to the Collectors announce
 ment. It is squarcly up to every indl- vidual to figure out his own case and
 to get busy if he comes within the
 scope of the new Revenue law. l Did You Earn This Much? Every unmarried person who re- | teived income averaging S19.25 week | during 1918 and every married couple who jointly received income averaging ] $3S.5O a week should secure at once 1 from the nearest Deputy Collector or l the nearest bank blank Form 1O4O A. ! That form contains the information he i will need to enable him to figure his l correct net income and any tax that he l owes the government
 The law requires that every unmar- l ried person who had net income of &,00O or over and every married per son whose net income was S2,OOO or over (including the income of husband 1 or wife and the earnings of minor 1 children, if aay) must make a return | on or before March 18th. And this re- qulrement does not hinge on whether | the person owes tax.
 Taxable Income An individual must include under gross income all gains, profits and in come derived from salaries, wages or l compensation for personal service of whatever kind, and in whatever form | paid or from professions, vacations, business, sales or dealings in property l of all kinds, interest, rent, dividends
 or profits derived from any source whatever. Very few items of income are exempt.
 Deductions include ordinary and nee essary business expenses, interest paid 1 or accrued on indebtedness, taxes of all kinds except Federal income and l excess profits taxes and assessments 1 for local benefits, losses actually sus- 1 tained, debts ascertained to be worth l less and depreciation on buildings, ma chinery, fixtures, etc., used in business. l A further deduction is allowed for con- 1 tributions to corporations operated for religious, charitable, scientific or edu- ! cational purposes or for the prevention l of cruelty to children or animals to an amount not exceeding 15 per cent of l the taxpayers net income as computed without the benefit of the contribution deduction.
 The taxpayer is not allowed to de-
 duct any personal, living or family ex- l pense, any amount spent for improving
 property or any expense Of restoring 1 property or making good its exhaus-f 1 tion for which an allowance Is claimed | under depreciation.
 Figuring the Tax. Before figuring the normal tax the dividends are deducted as credits from 1 net income, together with the personal exemption. As in previous years, divi- l dends of domestic corporations are ex- 1 elnpt from normal tax when received l by tlle stockholder.
 l The normal tax rates for citizens and residents are as follows: On the
 first $4,00O of net income in excess of ] the credits the rate is 6 per cent; on
 any further taxable income the rate is
 12 per cent.
 The surtax rates apply to net in | come of each individual in excess of $5,OO0. The personal exemption and l the dividends are not deductible before 1 computing surtax. In the case of re- l turns by husband and wife. the net in- come of eacR is considered separately
 in computing any surtax that may be due. Form 104O should be used for
 making returns of net income exceed jig $5,OOO, and the instructions on that form will show how to figure the sur tax. | Business House Returns. l Employers and others who paid .:.