The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1919-03-07
THIS TELLS HOW TO
FIGURE INCOME TAX
SquareIy Up to Every Individual
to Get Busy by March Is
or Suffer Penalty.

'Don't wait until the final due date,
March Is, for paying your Income Tax
and making your return. Avoid the
last minute rush. Any person can tig-
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 a Revenue man.
This word of advice is being given
out by the Internal Revenue men who
are collecting the Income Tax in this
state. Every aid and assistance Is
being given freely to the public. En-
larged field forces are helping the peo-
| pie in every way possible to get their
| payments and their returns in by
| March fifteenth.
But the INCOME Tax men will not
| pull your door-bell or your coat-tails,
according to the Collectors announce
ment. I 1t Is sauarely up to every indi-
vidual to figure out his own case and
| to get busy If he comes within the
scope of the new Revenue law.
l
Every unmarried person who re-
ceived income averaging $1925 a 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 a 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 a net income of
| $1,000 or over and every married per-
son whose net income was $1,000 or
over (including the income Of husband
! or wife and the earnings of minor
children, If any must make return
on or before March 18th. And this re-
| quirement 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
of all kinds, interest, rent, dividends
or profits derived from any source
whatever. Very few items of income
are exempt.
Deductions include ordinary and nec-
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-
tanned, debts ascertained to be worth
less and depreciation on buildings, ma
chinery, fixtures, etc, used in business.
| A further deduction is allowed for con-
tributions to corporations operated for
religious, charitable, scientific 'or edu-
cational purposes or for the prevention
| of cruelty to children or animals to an
amount not exceeding Is per cent of
the taxpayers net income as computed
4 without the benefit of the contribution
4 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 exhaus-
ton for which an allowance Is claimed
under depreciation.
Figuring the Tax.
* Before figuring the normal tax the
Alividends are deducted as credits from
net income, together with the personal
exemption. AS in previous years, divi.
dends of domestic corporations are ex.
empt from normal tax when received
by the stockholder.
The normal tax rates for citizens
and residents are as follows: On the
first $4,000 Of net income in excess of
the credits the rate is 6 per cent; on
any further taxable income the rate is
l. per cent.
The surtax rates apply to net in.
come of each individual in excess OF
$5,000 The personal exemption and
| Z
computing surtax. In the case of re.
turns by husband and wife, the net in.
come of each is considered separately
in computing any surtax that may be
due. Form 1910 should be used fol
making returns Of net income exceed
iDg $4,000, and the instructions on that
form will show how to figure the sur
tax.
Business House Returns.
Employers and others who pait
wages, salaries, rents, interest or sim
liar determinable gains in an amour
of $1,000 or over during 1913 to an,
person must file an information return
with the Government. Blanks may b.
secured from the Collector.
Every partnership must file return
showing its income and deductions an,
the name and address Of each partner
with his share of the profits or losse
during the past year. Personal servic
corporations will file similar informa
l ii. e,