Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1919-03-07
THIS TELLS HOW TO
FIGURE INCOME TAX
SquareIy Up to Every individual
to Get Busy by March 10
or Suffer Penalty.

"Don't wait until the final 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 If there IL any
point on which he peeds advice he cab
now get In touch With Reyenue man"
This word Of advice q from Joshua
W. Miles, Collector OF Internal Reye-
nue., Baltimore, who Is collecting the
Income Tax IN Maryland aud Dela-
ware. Collector Miles is giving With
out charge every hid Of his office and
his enlarged field force to help 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-tails,
according to the Collectors announce
rnent It is squhrely up to every indi-
vidual to figure out his own case spd
to get busy If he comes within the
scope Of the new Revenue law.
Did You Earn This Muehf
Every unmarried person who re-
ceived income averaging S19.25 a week
during 1918 and every married couple
who Jointly received income averaging
$3.50 a week should secure at once
from the nearest Deputy Collector or
the nearest bank blank Form 1040 A.
That form contains the information he
will need to enable him to figure bis
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 $4,000 or
over (including the income Of husband
or wife and the earnings Of minor
children, If any must make a return
on or before March 18th. And this re-
Qulrement 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 vacations,
business, sales or dealings in property
Of oil 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
inAnkknlVnao 90 ~
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 fol
religious, charitable, scientific or edu.
cational purposes or for the prevention
Of cruelty to children or animals to az
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 making good its exhaus-
ton 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 stakeholder.
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; or
any further taxable income the rate d
IL per cent.
The surtax rates apply to net in
come of each individual In excess Of
$1,000. The personal exemption ant
the dividends are not deductible before
computing surtax. In the case Of re
turns by husband and wife, the me-
income Of each is considered separate
ly In computing any surtax that MAY
be due. Form 1910 should be used fol
| HoAIhS ASsuAhS VI hSt inSolnc eASScu
ing $1,000, and the instructions on thai
form will show how to figure the sur
tax.
Business House Returns.
Employers and others who paid
wages, salaries, rents, interest or sim
liar determinable gains In an amount
of $1,000 or over during 1918 to any
person must file an information return
with the Government Blanks may b.
secured from the Collector.
Every partnership must file a return
showing its income and deductions anC