The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1919-02-28
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 dnal due date,
March 18th, for paying your Income
Tax and making your return. Avoid
the last minute rush. Any person can
figure out his liability today as well as
he can next week, and II there is any
point on which he needs advice he can
now get in touch with Revenue man."
This word of advice is from James
Coffey, Collector Of Internal Revenue,
Aberdeen, s. D., who is collecting the
Income Tax in North Dakota and
South Dakota. Collector Coffey is CIV
ing without charge every aid Of his
office and his enlarged field force to
held the people get their payments
and their returns in by March 18th.
But the Income Tax men will not
pull your door-bell or your coat-tai1s,
according to the Collectors announce
ment. It is squarely 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.
Did You Earn This Mueh7
Every unmarried person who receiv-
ed income averaging $19.25 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 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
81 900 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 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-
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
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 exhaus-
lion for which an 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, divi-
dends of domestic corporations are ex-
empt from normal tax when received
by the stockholdeE 5s 4. a s.
The normal tax rates for citizens.
and residents are as. follows: On the
first 1000 of net income,in excess Of
the credits the rate is 6 per cent; on
any further taxable income the rate IL
u per cent. .s5', ..,.
The ssurtax rates apply to- net In
come OF each individual in excess Of
$5, COO The personal exemption and
the dividends are not deductibIe before
computing surtax. IN the case Of re-
Turns BY husband and wife, the net
income of each ID consid idered separate.
sly "A comput ting any slrtax that may:
;be due Form 10 10 should be used for
making returns of net income exceed.
ilg 3b0 600 ana ths Inst ions on that
torn ~ill show how " 81. i hs snr.