The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1919-02-28
GET BUSY NOW ON
YOUR INCOME TAX.
ALL RETURNS MUST BE
FILED BY MARCH Is
Avoid Penalty By Paying At Least
One-fourth of Tax
By That Date.

How much do YOU owe Uncle
Sam?
What was it worth to you to be able
to pursue undisturbed your peace
time vocation while countless thous-
ands of other Americans risked life,
made costly sacrifices, that you might
do so?
The question of how properly to fill
out an income tax return is therefore
vital one to most people. There
will be 100000 income taxpayers in
the northern Ohio federal district, ac-
cording to Harry Weiss, internal rev.
enue collector. The district includes
Cleveland, Toledo, Akron, Youngs-
town and other important cities.
Taxpayers whose net income for
1918 was less than $4,000 should ask
for form 1O40 A. Those whose in
come was more than $4,000 should
ask for form 1040.
All returns must be filed by March
Is, and Weiss points out that, to avoid
penalty, the taxpayer must pay at
least one-fourth of his tax by that
date.
The present revenue bill, under
which taxes ON last years incomes
will be assessed, differs materially
from preceding acts in it's sections af-
fecting individuals. Probably the
most important change is in the rate,
the exemptions of $1,000 for single
persons and $4,000 for married per-
sons remaining the same as hereto
fore.
The normal rate Of tax under the
act of 1917 was 2 per cent on the net
income of single persons in excess of
1000, and 2 per cent on the net in
come of married persons and heads of
families in excess of $4,000.
Under the 1916 act the normal rate
OF tax was 2 per cent on the net in
come of single persons in excess of
$4,000, and 2 per cent on the net in
come of married persons and heads of
families in excess Of $4,000. Taxpay-
ers whose net income exceeded the
amount of the exemptions provided
for by the act Of 1916 were taxed un-
der the 1916 and 1917 acts.
This year the taxpayer has only
one act to consider. The normal rate
of tax under the new act is IS per cent
on the first $4,000 Of the net income
above the exemptions, and IL per
cent on the remaining net income.
This applies to citizens and residents
of the United States.
Income from property in the United
States owned by nonresident aliens
is subject to the full normal tax of
IL per cent. For 1919 and subsequent
years the rates are fixed at A and 8
per cent, respectively. The surtax
rates have been changed, ranging
from l per cent to the amount of the
net income between $4,000 and sc, 900
to 65 per cent of the amount by which
the net income exceeds $1,O00,000.
The single man with net income
for 1918 of $4,000 will pay this year
a tax of $50.
The man with an income of $4,000
will pay $120.
The $4,000 man will pay $3.50.
The $1,000 man will pay $240.
All this is at the rate of 6 per cent
on his net income above his personal
exemption of $1,000.
The single man with an income for
1918 of $4,000 will pay $97O. He is
taxed at, the rate of 6 per cent on his
first $4,000 above the exemption and
at IL per cent on the remaining 81 900,
total of $500. In addition, he pays
a surtax of $40, 1 per cent of the
amount of his income between $4,000
and $4,000.
The married man will pay $50 on
a net income of $2,500 in excess of
his personal exemption, $50 on a
$4,000 income, $120 on $4,000 in
come, $3.50 on $4,000 income and
$3.50 on $4,000 income, which in
cludes his surtax Of $40.
These figures are based on the in
come of taxpayers without dependents
other than husband and wife. The
taxpayer is allowed in addition to
his personal exemption, 5000 for each
person dependent upon him for chief
support, if such person is under eigh-
teen years of age or incapable of self
support.
Under the 1917 act, the 5000 exemp-
tion was allowed only for each de-
pendent "child" of the person making
the return, or, in the case of a head
of a family, for each dependent child
of the family. A head of family
one who supports one or more persons
closely connected with him by blood
relationships entitled to all the ex-
emptions granted a married person.
In his return the taxpayer is re-
quired to state specifically each item
of gross income. The gross income
is defined as "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,
trade, business, commerce or sales or
dealings in property, whether real or
personal, growing out of the owner
ship or use of such property; also
from interest, rent, dividends, securi-
ties or the transaction of any bust
ness carried on for gain or profit, or
gains or profits, and income derived
from any source whatever" ',''
Net income, upon which the tax is
assessed, is gross income less certain
deductions which are mere liberal
than under the preceding act. They
include the following items:
Expenses paid or incurred during
Continued on page six)