The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1919-02-27
NOW THE INCOME TAX
Returns Must Be Filed On o.
Before March 15.-Failure
Means Heavy Penalties.

has been begun by the Bureau OF
Internal Revenue. This is the es.
timated yield of the new revenue
bill. The income tax provisions
Of the act reach the pocket-book
of every single person in the
United States whose net income
for 1918 was 81 1000, or more, and
of every married person whose
net income was $4,000 or more.
Persons whose net income equal
ed or exceeded these amounts,
according to their marital status,
must file return of income with
the collector of internal revenue
for the district in which they
live on or before March Is.
This means that millions of
Americans must go to work at
once to prepare their returns,
and for the guidance of taxpay-
ers the internal revenue bureau
has. issued explicit instructions
covering the preparation and fill
ing of returns. This is the A. B.
&. of the procedure.
First get a tax return form
from the revenue collector Of
flee or from bank. There arc
many kinds of these forms. If
person s income was below $4,000
he should ask for the form es-
pecially intended for the small
er incomes. 1t might be advis
able 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 de-
tailed instructions for reporting
various items of income and for
calculating the tax due. By fol
lowing this form closely even an
inexperienced person probably
will have little difficulty, parti-
ularly if his source of income
was not complicated or if it was
in wages or salary rather than in
business transactions.
The tax rate for most individ- |
uals is 6 per cent. For a single |
person this is imposed on the diff
ference between the total net in
come for the year and $1,000, the|
so called exempted amount. For
a married man, rthe head of
family, the exemption is $4,000
and the 6 per cent. tax is impos-
ed on the difference between
that and the total income. There
is provision for an additional
exemption of 5000 for each child
or other dependent person, I'M
der Is years of age or incapable ,
of self support. Thus a married
man with one child or an aged +,
parent would have an exemption i
If $4,000 and would pay tax on
jhe difference between this and r
lis net income. A man with two 7
children would have an exemp- a
ion of $2400; three children, d
$500, and so on.
To illustrate the calculation of o
ak: r
A single man with a net in il
ONE of $4,000 will be taxed 500 d
lcome Of $4,000, tax 1920; in il
ONE of $4,000, tax $3.50; income
$4,000. tax $240. N
The regular or normal tax is f.
per cent. on more than $4,000 fc
case of unmarried persons and &C
ore than $4,000 in the case of of
arried persons without child
n. In other words, the tax is re
'ubled on incomes of $4,000 d,
ore than the specific exemp- So
IN. In addition, so-called sur fo-
xes superimposed on the regu-
: or normal tax are assessed on en-
t incomes of more than $4,000, be
g additional rate being / per
Mt. for the first $1,000 above tic
1T sum, 2 per cent for the next en-,
200 and l per cent increase for off
III additional $4,000. Both the Gin
per cent. rate and the sur ho,
les may be ignored by persons an,
h incomes Of less than $4,000. itv
After the tax is figured, a per- Lii
must count at least on pay am
one fourth of the sum by cd
rch Is. The second install acc
Mt of one-fourth is due June sur
the third quarter, Septem- con
Is, and the last installment, 7
'ember Is. Penalties are pro- fra
ed for failure to file on time rev
to pay the tax promptly, and svst
officials welcome returns 9th
payments before March Is. per
ment in full by March Is also out
be welcomed on the ground vid,
, the government needs the fer
ley. coll
/, husnand ana wife whose ton
bined net income for 1918 so ,
united to $4,000 or more must inc
a return either separately or Ii
tly If separate returns are thel
|, either may claim the per- tax,
il exemption of $4,000, or this Inc,
nption may be divided mi,
nings of dependent children con-