The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1919-03-06
THIS TELLS HOW TO
FIGURE INCOME TAX
Squarels Up 10 Every Individual
10 Get Busy by March ID
or Suffer Penalty.

Don, whit until The hnal due date
Mar,rh 18th, for paying your Income
Tax and making your return Avoid
the last minute rush Any person can
figure oui llls liability today as We'll rs
he can next week. and VI there Is any
point on which he needs advice he can
nov get IN touch with Revenue man
This word OF advice Is from Seth W
Jones. Collector nf Internal Revenue,
Portsmouth, u H.. who is collecting
the Income Tax in Maine, New Hamp'
shire and Vermont. Collector Jones Is
giving without charge every aid OF his
Office aud his enlarged field force Ia
help the people get their payments
and their returns In by March 18th.
Iut the Income Tax men will not
null your door-brll or your coat-talls,
according To the Collectors announce
meui. II Is Sqnarcly up 10 every indl'
vidual 10 figure out his own case ana
to get busy II he comes within the
scopc Of the new Revenue law.
Did You Earn This Muchi
Every unmarried person who re
cciycd income averaging Sl9.2o week
during 1918 and every married couple
who Jointly received income averaging
S3S 80 a week should secure NJ once
from the nearest Deputy Collector or
the nearest bank blank Form 1910 A.
That form contains the information he
viii need to enable him to figure his
correct net income and any tax that he
owes Tie Government.
The law requires that every unmar-
ried person who had II net income OF
81 900 ar over aud every married per
son whose net income was S2,OOO or
over tincludinc the income OF husband
or wife and the earnings OF minor
children. II any must make return
on or before March 18th And this re-
auirement does not hinge on whether
the person owes 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 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.
trlbuilons 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 making good Its cxhaus-
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 per cent. on
any further taxable income the rate II
II per cent.
The surtax rates apply 10 net In
come OF each individual In excess OF
5000. The personal exemption and
the dividends are not deductible before
computing surtas. In the case OF re-
turns by husband and wife. the net
income Of each Is considered separate.
~ in computing any surtax that may
be due. Form 1910 should be used for
making returns of net income exceed
ing $1,000, and the instructions on that
form will show how 10 figure the sur
tax.
Business House Returns
Employers and others who paid