New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-03-05
agreement on account Of such injuries

or sickness. il
Amounts received during the war BIZ
a person in in the, rysspr naval Services
for active service, UP to 81, 500.
Interest on obligations Of any State
or political subdivision Of a State, such
as city, county, town or village, and
the District Of Columbia. Interest on
obligations Of the United States is ex-
empt, except that interest on obliga-
tions issued after September l, 1917,
is exempt only to the extent provided
in the Liberty Loan Acts.
Interest on Liberty Bonds to the par
value of $4,000 is exempt from all tax
alton Holders of large amount of
Liberty Bonds are advised to consult
their bankers or collectors Of internal
revenue as to their interest exemptions.
Two Illustrations.
The following Illustrations viii show
the average taxpayer how to compute
his income tax.
A single man had a net income for
1913 of $4,000. First he deducts his
personal exemption Of $1,000, leaving
a balance OF $4,000. On the first Sd 1000
he pays at the normal rate of per cent,
$24O. On the remaining 81, 900 he pays
at the normal rate of IL per cent, $40.
In addition to this he pays a surtax
Of $40, 1 per cent on the amount of his
income between S., 200 and $4,000. His
total tax is $3.50.
A married man with two dependents
had net income for 1913 of $500.
From this deduct $4,000 personal ex-
e1nption and $500 for each dependent.
On the first $4,000 he will pay, at the
normal rate Of per cent, $240 On the
remaining SLIGO Of the $500 he will
pay at the normal rate of, IL per cent,
S132. On the amount OF his income
between $4,000 and $4,000 he pays a
surtax of per cent, or $40. On the
amount Of his income between $4,000
and ST, 500 he pays surtax Of 2 per cent
or $40 The total normal and surtax
| is SAP.
Returns Due March IS.
The period for filing the income tax
returns closes. March Is. The tax may
be paid in full at the time Of filing the
return, or in four instalments, the first
of which is due on OR before March Is,
the second on or before June Is, the third
on or before September Is and the fourth
on or before December Is.
Heavy Penalties,
Heavy penalties are provided for
persons who fail or sWillfully refuse to
file their returns and pay the tax within
the time specified by law. For failure
to file a. return the penalty is a fine Of
not more than 81 900 and an additional
assessment Of 25 per. cent of the amount
Of tax due. For swillfully refusing to
make a return the penalty is "a fine Of
not more than $4,000 or, one years
imprisonment or both. A similar penal
ty Of not more than $4,000 or one. year
Imprisonment, OF both, and in. addition
an assessment. Of so per cent Of the
amount due for, making fraud llent
return. Persons who fail to pay the
tax. when due are subject to a fine Of
not more than 81 900 and an assessment
of per cent of the amount unpaid
plus per cent interest for. each full
month during which it remains unpaid.
Forms for making returns may be cb-
tanned from offices of collectors Of Inter-
nal Revenue. Taxpayers with income
Of less than $4,000 should ask for Form
1040-A, and those with incomes Of more
than $4,000 should ask for Form 1040.