Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-02-27

ethiouhlSU " TGiUVU OF more must
make a detailed report of his in
come to the Federal revenue collec-
tor of his district On or before
March 5 the first installment of
the income tax must be paid, one
fourth of the entire amount due, or
all of it if the taxpayer chooses.
This means that millions of Amer
leans must get to work at once to
prepare their returns, and for the
guidance of taxpayers the Internal
Revenue Bureau has issued explicit
instructions covering the prepara-
ton and filling of returns. This is
the A c of the procedures
First get q tax return form from
the revenue collectors office or from
a bank. There are many kinds of
these forms. If a persons income
was below $1,000 he should ask for
the form especially intended for the
smaller incomes. 1t might be ad-
visable to get two or three of these
forms, since one may be spoiled in
the preparation. The form is a six
page printed sheet, with detailed in
structions for reporting various items
of income and for calculating the tax
due. By following this form closely
even an inexperienced person prob
ably will have little difficulty, par
ticularly if his source of income was
not complicated or if it was in
wages or salary rather than in busi-
ness transactions.
The tax rate for most individuals
is 6 per cent For single person
this is imposed on the difference
between the total net income for the
year and $1,000, the so-called eX-
empted amount. For married man
or for the heads of a family, the
nNN
cent. tax is imposed on the differ
ence between that and the total in
come. There is provision for an ad-
ditional exemption of 5000 for each
child or other dependent person un-
der eighteen years of age or incapa-
BILE of self-support. Thus a married
man with one child or an aged par
ent would have an exemption of So
200 and would pay tax on the differ
ence between this and his net in
! come. A man with two children
would have an exemption of $4,000;
three children, $4,000, and so on.
Calculation of Tax
| To illustrate the calculation OF
tax:
A single man with a net income
last year of $4,000 will be taxed $50;
income of $4,000, tax $120; income
of $4,000, tax $3.50; income of $5,-
900, $240.
A married man without children
and with an income of S2,5OO last
year will pay tax of $50; income
$4,000. tax $50; income of $4,000,
tax $40; income of $4,000, tax
| $3.50.
The regular or normal tax is II
per cent. on incomes of more than
| $1,000 in case of unmarried persons
and more than $4,000 in the case OF
married persons without children.
In other words. the tax is doubled
on incomes of $4,000 more than the
specific exemption. In addition, So
called surtaxes superimposed on the
regular or normal taxes are assessed
on net incomes of more than $4,000,
the additional rate being l per cent.
for the first $1,000 above that sum,
2 per cent. for the next $4,000, 3
per cent. for the next $4,000 and L
per cent increase for each addl-
tional $4,000. Both the IL per cent.
rate and the surtaXes may be ignor-
ed by persons with incomes OF less
than 5000.
After the tax is figured person
must count at least on paying one
| fourth of the sum by March Is. The
second installment of one-fourth Is
due June 10; the third quarter, Sep
tember IS; and the last installmen',
! December Is. Penalties are pro-
vided for failure to file on time or
to pay the tax promptly, and tax
officials welcome returns and pay
ments before March 10. Payment IN
| full by March Is also will be well
coined, on the ground that the gov
ernment needs the money.
A husband and wife whose COM
bined net income for 1918 amounted
to $4,000 or more must file q re-
turn, either separately or Jointly. III
separate returns are filed either may
claim the personal exemption of
| $4,000, or the exemption may pc
divided. Earnings of dependent chill
dren must be included as part or
the income of the head of the fam
| lily. If an unmarried person supports
either partially or wholly q parent
or some other relative or friend not
living in the same household, TINS
person is not considered the mead
of a family and is therefore enntled
only to the $1,000 exemption; III
the parent rs wholly dependent now
ever, and lives in the taxpayer
household, this makes the unmarried
person the head of the family
| If. because of the special eXemp-
tions for children and dependents
or because of the exemption OIL SOL
dier and sailors pay, an unmarried
persons income of more than Sl,OOO
| or a married persons income or
lmore than $4,000 is found not to be
taxable this condition does not Tree
this individual from filing a return
Thus many persons who do not nave
to pay a tax must file returns.
Head of Family Described .
A head of q family is described
officially as "a person who supports
one or more persons closely connect
ed with him by blood relationship
relationship by marriage or by
adoption"
The compensation in 1918 of a
man in the military or naval service,
either as an enlisted man or an Of
ficer. is wholly exempt from taxation,
provided this did not exceed S3,5OO.
Income of soldiers or sailors from
private sources is taxable. however,
if it exceeds the exemptions.
In figuring net income, deductions
may not be made for personal, fam
lily or living expenses.
Allowable Deductions
The law does not provide for q
number of deductions, however,
from gross income, and these are of
great interest mainly to men who
made living out of business en-
terprises. These allowable deductions
include the following items:
Expenses paid or incurred during
1918 in carrying on any trade or
business, including rentals and a rea-
sonable allowance for salaries.
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