The diamond drill., 1919-03-01
THIS TELLS HOW TO
FIGURE INCOME TAX
Squarely Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.

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 IL there Is any
point on which he needs advice he can
now get In touch with Revenue man."
This word OF advice is being given
out by Internal Revenue men. Re-
turns and payments are being col
lected In Michigan by the following
Collectors OF Internal Revenue:
James j. Brady.
Emanuel j. Doyle.
Every aid OF their Offices and field
forces is being given freely TO the
public.
But the Income Tax men Will not
pull your door-bell or your coat-tails,
according 10 the Collectors announce
ment. II is squarely up TO every indi-
vidual to figure out his own case and
TO get busy II he comes within the
scope of the new Revenue law
Did You Earn This Much2
Every unmarried person who re-
ceived income averaging $l9.25 week
during 1918 and every married couple
who Jointly received income averaging
$3.50 week should secure at once
from the nearest Deputy Collector or
the nearest bank n blank Form 1910 A.
That form contains the information he
will need to enable him TO figure his
correct net income and any tax that he
owes the government
The law requires that every unmar.
ried person who had n net income OF
81, 900 or over and every married per-
son whose net income was $1,000 or
over Qncluding the income OF husband
or wife and the earnings OF minor
children, II any must make a return
on or before March 18th. And this re-
qurement does not hinge on whether
the person owes a tax.
Taxable Income.
An individual must include under
gross income all gains, profits and in
come derived from salaries, wages or
compensation for personal service OF
whatever kind and In whatever form
paid or from professions, vocations.
business. sales or dealings In property
or profits derived from any source
whatever. Very few items Of income
are exempt.
Deductions include ordinary aud nee
essary business expenses, interest paid
or accrued on indebtedness. taxes OF
all kinds except Federal Income and
excess profits taxes and assessments
for local benefits, losses actually sus-
talned, debts ascertained TO be worth
less and depreciation on buildings, ma
chinery, fixtures, etc, used In business
A further deduction Is allowed for con-
tributlons To corporations operated for
religious, charitable, scientific or edu-
cational purposes or for the prevention
OF cruelty 20 children or animals 10 an
amount not exceeding 10 per cent OF
the taxpayers net Income rs computed
without the benefit of the contribution
deduction.
The taxpayer is not allowed to de-
duct any personal. living or family eX-
pense, any amount spent for improving
property or any expense Of restoring
property or making good its cXhaus-
tlon for which mn allowance Is claimed
under depreciation
Figuring the Tax.
Before figuring the normal tax the
dividends are deducted as credits from
net income, together with the personal
exemption. As in previous years, diyi-
dends OF domestic corporations are eX-
cmpt from normal tax when received
by the stakeholder
The normal tax rates for citizens
and residents are as follows: On the
first $1,000 OF net income I'm excess OF
the credits the rate is per cent; on
any further taxable income the rate is
Il per cent.
The surtax rates apply 20 net In
come OF each individual In excess OF
$4,000. The personal exemption and
the dividends are not deductible before
computing surtax. In the case OF re-
turns by husband and wife, the net in
come OF each Is considered separately
I'm computing any surtax that may be
due Form 1910 should be used for
making returns OF net income exceed
ing $1,000, and the Instructions on that
form will show how TO figure the sur
tax.
Business House Returns.
Employers and others who paid
wages, salaries, rents, interest or sim
liar determlnable gains In an amount
OF 81, 900 or over during 1913 10 any
person must file an Information return
with the Government. Blanks may be
secured from the Collector
Every partnership must fie return
showing its income and deductions and
lhe name and address OF each partner,
with his share OF the profits or losses
during the past year Personal service
corporations will file similar informa-
ton for 1913.
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