The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1919-03-07
THIS TELLS HOW TO
FIGURE income TAX
SquareN Up to Every Individual
TO Get Busy by March Is
or Suffer Penalty.

| March lDtn, Tor paying YOUR lnCOme
Tax and making your return. Avoid
| the last minute rush. Any personc can
| figure out his liability today as well as
he can next week, and II there is any
point on which lie needs advice he can
now get in touch with Revenue man.
This word of advice is being given
out by Internal Revenue men. Re
| turns and payments are being col
! lected In Kentucky by the following
| Collectors Of Internal Revenue:
| Josh II, Griffith.
| J. Rogers Gore.
| Charlton =. Thompson.
! Elwood Hamilton.
John w. Hughes.
| Every aid of their Offices and field
forces is being given freely to the
public.
| But the Income Tax men will not
pull your door-bell or your coat-tails,
according to the Collectors announce
ment. 1t Is squarely up to every indi-
! vldual to figure out his own case and
to get busy IL he comes within the
scope Of the new Revenue law.
Did You Earn This Much2
Every unmar ! person who re-
ceived income averaging S19.25 week
/ during 1918 and every married couple
who jointly received income averaging
$3.50 a week should secure at once
from the neares, De"uty Collector OF
the near bank . blink Form lO4O A
That forll contains 4 : information he
will need to enable him TO figure his
correct net income and any tax that h'
owes the Government.
The law requires that every unmar
ried person who had net Income o.
81. 900 or over and every married per
son whose net income was $1,000 oil
over Uncludng the income Of HUSBAND
or wife and the earnings of minol
children, II any must make return
on or before March 18th. And this re
Guirement does not hinge ON whethel
the person owes tax.
- Taxable Income.
| An individual must include unde
gross income all gains profits and In
come derived from salaries, wages o
compensation for 1risdnal service o
whatever kind and in whatever form
paid or from professions, vacations
business, sales or dealings In propert
of all kinds, interest, rent, dividend
or profits derived from any sourc
whatever Very few items OF incom
are exempt
Deductions include ordinary and nee
Il inf N
or accrued on Indebtedness, taxes o
all kinds except Federal income an
excess profits taxes and assessment
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 cor
tributions to corporations operated 70
religious, charitable, scientific or edit
cational purposes or for the preventio
of cruelty to children or animals to a
amount not exceeding Is per cent q
the taxpayers net income as compute
without the benefit of the contribute
deduction.
The taxpayer Is not allowed to d.
duct any personal, living or family e'
pense, any amount spent for improvin
property or making good its exhau
ton for which an allowance is elaine
under depreciation.
Figuring the Tax.
: Before figuring the normal tax tn
dividends are deducted as credits frol
net income, together with the person'
/ exemption AS in previous years, div
dends of domestic corporations are e.
empt from normal tax when receive
by the stakeholder.
The normal tax rates for either
and residents are as follows: On II
first $4,000 of net income In excess (
! the credits the rate is 8 per cent; @
any further taxable income the rate
~ per cent.
The surtax rates apply to net II
come of each individual in excess /,
$4,000 The personal exemption. an
the dividends are not deducti5fe befoI
, computing surtax. In the case of r.
i, turns by husband and wife, the M
income OF each Is considered separate
4. ly in computing any surtax that ma
be due. Form 1910 should be used Il
making returns of net income exceed
ing $1,000, and the instructions on thu
, form will show how to figure the su
tax.
; Business House Returns.
Employers and others who pal
wages, salaries, rents, interest or sin
ilar determinable gains in an amour
of $1,000 or over during 1918 to an
person must file an information retur
; with the Government. Blanks may
secured from the Collector.
Every partnership must file retur
showing Its income and deductions an
the name and address of each partne
with his share Of the profits or loss'
during the past year. Personal servio
corporations will file similar informs
ton for 1918.