The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1919-03-04
THIS TELLS HOW TO
FIGURE INCOME TAX
Squarely Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.

Don't walt until the final due date
March 10. for paying your Income Tax
and making your return. Avoid the
last minute rush. Any person can ig-
ure out his liability today as well as he
can next week, and IL there is any
point on which he needs advice he can
now get In touch with a Revenue man.
This word of advice Is from Jane.
Coffey, Collector of Internal Revenue
Aberdeen, s. d., who is collecting the
Income Tax In North Dakota ani
South Dakota. Collector Coffey Is Civ
ing without charge every aid of his
Office and his enlarged field force to
held 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
ment. 1t is ~squarely up to every lndi-
vidual to figure out his W case and
to get busy III he comes within the
scope of the new Revenue law.
Did You Earn This Much72
Every unmarried person who re-
ceived income averaging 1925 a week
during 1913 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 a blank Form 1040 A.
That form contains the information he
Will need to enable him to figure his
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 $1,000 or
over t~including the income of husband
or wife and the earnings of minor
children. II any must make a return
on or before March 10Th. And this re-
quirement 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, vocations,
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
tributions to corporations operated for
religious. charitable, scientific or edu-
cationai purposes or for the prevention
of cruelty to children or animals to an
mount 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 any expense of restoring
property or making good its exhaus-
tion for which an allowance is claimed
under depreciation.
Figuring the Tax. Z
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-
cmpt 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 9 per e on
any further taxable income the rate is
II per cent.
The surtax rates apply to net In
come of each individual In excess of
$4,000. The personal exemption and
the dividends r ot~deductible before
computing surtax. In the case of re-
turns by husband and wife, the net in
come of each Is considered separately
In computing any surtax that may be
due. Form 1910 should be used for
making returns of net income exceed
ing 5000. and the instructions on that
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 V e during 1918 to any
person must file an information return
with the Government. Blanks may be
secured from the Collector.
Every partnership must Ole q 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 file similar informa-
ton for 1918.
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