Mount Vernon signal. (Mt. Vernon, Ky.) 18??-current, 1919-03-14
THIS TELLS HOW TO
FIGURE INCOME TAX
Squareiy Up to Every individual
to Get Busy by March IS
or Suffer Penalty.

Ut QUIET TcItdltys
Don't wait until the nnal due date,
March 18th, for paying your Income
Tax and making your return. Avoid
the last minnie fush. Any person. can
figure out his liability today as well as
ne can next week, and If there IL any
point on which he needs advice he can
now get In touch with Revenue man"
This word Of advice Ia being given
out by Internal Revenue men. Re
turns and payments are being COLI
leeted I'm Kentucky by the following
Collectors Of Internal Revenue: :
Josh II. Griffith.
]. Rogers Gore
Charlton b. Thompson.
ElwOod Hamilton.
John, w. Hughes. -
Every aid of their onlces and .neld
forces il being given freely to the
public. SO II j.
But the Income Tax men will NOT
pull yorT door-bell. or your, eoar-tails,
according to the Collectors announce
ment. 1t h sQuarely up to every. indt
vidual to figure out his own case and
to get busy II he comes within the
scope Of the new Revenue law.
Did You Earn This Much?
Every unmarried person who re-
ceived income averaging 1925 week
during 1918 and every married couple
who Jointly received income averaging
S3S. 80 a week should secure at once
from the nearest Deputy Collector OF
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 tai that he
owes the Government. x
The law requires that every unmar-
ried person who had net Income of
$1,000 or over and every married per
son whose net income was $1,000 OF
Ncr dncludIhg the income Of husban,
or wife and the earnings of mino,
children, IL any, must make return
On or before March 18th. And this re-
Quireinent does not hinge ON whethe:
he person owes tax.
Taxable Income.
,ross income all gains. profits and In
Ome derived from salaries, wages o.
compensation for personal service O
yhatever kind and I'm whatever fori
aid or from professions, vocations
BUSINESS sales or~dpalifigs In prcpest
# all Kinds. interest. rent dividend
N profits derived from, any sonr-.
whatever Very few items OF lncom,
aresexempt.
DeduS5iOns include ordinary and nee
essary: business expenses, interest pal,
or accrued on Indebtedness taxes o;
all kinds except Federal income ant
excess profits taxes and assessment.
for local benefits. losses actually sus
tanned, debts ascerteined TO be worth
less andslepreciation on buildings ma
chinery. fixtures, etc, used ip business
A further deduction is allowed for con
tributioRs to corporations operated f0l
religious, charitable. scientific or edu
cational purposes or for the pseyentio'
of cruelty to children or animals to al
amount not exceeding. 10. per cent o,
the taxpayers net income as, compute.
without the benefit Of the contribute,
deduction.
The taxpayer Is not allowed to de-
duct any personal. living or family ex
pense, any amount spent for improvin.
property or making good its exhaus
ton for which an allowance Is claime'
under depreciation.
Figuring the Tax.
Before figuring the normal tax tn
dividends are deducted as credits froi
net income, together with the persona
/ exemption. AS In previous years. div:
dends Of domestic corporations are eA,
by the stakeholder
The normal tax rates for either
and resldents are as follows: On tn
nr&t $4,000 of net income In excess 0
| fise credits the rate is @ per cent; O,
any further taxable income the rate t
II per cent !.
The surtax rates apply to net ir
come Of northumberland In excess o
$1,000. The personal exemption an
the dividends are not deductible hefor
computing surtax. In the case Of re
turns BY husband and wife. the ne
income of each Is considered separate
~ in computing any surtax that mn.
bel due. Form 1040 should be used 70.
making returns Of net income exceed
int &, O0O. and the instructions on tina
form will show how to figure the sur
tax. -
+ Business House Returns.
Employers land others who pale
wages. salaries, rents. interest or sim.
liar determinabie gains In an amour
Of $1,000 or over during 1918 to an.
person must file an information retur,
with the Government Blanks may be
secured from the Collector.
Every partnership must fle return
showing its income and deductions and
the name and address Of each partner.
with his share Of the profits or losses
during the past year. Personal service
! corporations will fliei similar informa-
ton for 1918.