Evening journal., 1919-02-27
FILE INCOME TAX
WITHIN 5 Weeks
Unmarried Men With In
comes OF More Than
ST. 1000 Must Report
$4,000 is MINIMUM
FOR MARRIED MEN

Within the next three weeks. or by
March IS. every unmarried man OF
woman who earned $1,000 or more in
the calendar year 1918 and every mar
ried person whose income amounted b
S2lO0 or more must make a detsiled
report OF his income to the federal rev.
enue collector OF his district. On or be-
fore March IS the hrst ins.allment OF
the income tax must be pad. one.
fourth OF the entire amount due. o. all
OF It II the taxpayer chooses.
This means that millions OF Ameri-
cans must get to work at once to pre-
pare their returns, and for the guidance
OF taxpayers the Internal Revenue Bu-
reau has issued explicit instructions
covering the preparat on and nling OF
returns. This Is the A B c OF the pro-
cedure:
First get a tax return form from the
revenue collectors Office or from a
bank. There are many kinds Of these
forms. II persons income was below
5000 he should ask for the form es-
peclally intended fo- the smaller in
comes. II might be advisable 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 instructions for reporting va
rious Items OF income and fo- calculat-
ing the tax due. By following this form
closely even an inexperienced person
probably will have little difficulty, par
t.cularly II his source Of income was
not complicated or II 10 was In wages
or salary rathe. than in business trans
actions.
The tax rate for most individuals is
s per cent. For a single person this IS
imposed on the difference between the
total income for the year and $1,000, the
so-called exempted amount. For a mar
ried man, or for the heads Of a family.
the exemption Is $1,000, and the per
cent. tax IS imposed on the difference
between that and the total income.
There Is provision for an additional ex-
emption Of 500 for each child or other
dependent person under e shieen years
OF age or incapable OF self support
Thus a married man with one child or
an aged parent would have an exemp-
ton OF S22O0 and would pay tax on the
difference between this and his net in
come. A man with two children would
have an exemption OF S2l0O; three chil-
dren $500 and so on.
Calcu alton OF Tax.
To illustrate the calculation Of tax
A single man with q net income last
year OF $1,000 will be taxed $50; income
Of 5000 tax si20: income Of $4,000. tax
Frn . 90
A married man without children and
with an income OF $500 last year will
pay q lax Of $50; income $1,000, tax $50;
income OF $1,000, tax Si20; income OF
s5OoO. tax $50.
The regular or normal tax is - per
cent. on Incomes Of more than 5000 in
case OF unmarried persons and more
than 5000 IN the case Of married per
sons without children. In other words,
the tax Is doubled on incomes Of $1,000
more than the specific exemption. In
addition, so-called surtaXes sup5rim-
posed on the regular or normal tax are
assessed on net incomes Of more than
5000. the add tional rate being 1 per
cent. for the first $1,000 above that sum.
2 pe- cent. for the next 5000 3 per
cent. for the next $1,000 and per cent
increase for each additional 5000. Both
the y per cent. rate and the surtaxes
NAV be ignored by persons with in
comes Of less than 5000.
After the tax is figured a person
must count at least on paying one
fourar Of the sum by March IS. The
second installmetn Of one-foruih IS due
June IS: the third quarter. September
Is; the last lnstallment, December Is.
Penalties are provided for failure t)
fle on time or to pay the tax prompt
". and lax oflc ais welcome returns
and payments before March IS. Pay
ment in full by March IS also will be
welcomed on the ground that the gov
ernment needs the money.
A husband and wife whose combined
net income for 1918 amounted to s2OOC
or more must fle a return, either sep
arately OF Jointly. II separate returns
are filed, either may claim the personal
exemption OF $1,000, or the exemption
may be divided. Earnings Of dependent
children must be included as part OF
the income Of the head OF the family.
II an unmarried person supports either
partially or wholly a parent OF some
other relative or friend not living IN
fle same household, this person is not
considered the head OF a family and Is
therefore entitled only to the $1,000 ex-
emption. II the parent Is wholly de-
pendent. however, and lives in the tax
payers household, this makes the IN
married person the head Of the fam
ily."
II, because Of the special exemp-
tions for children and dependents or
because Of the exemption or soldier and
sailors pay. an unmarried persons in
come Of more than $1,000 or a married
persons income OF more than $1,000 is
found not 10 be taxable this condit on
does not free this individual from 1ling
q return. Thus many parsons who do