The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1919-03-06
THIS TELLS HOW TO
FIGURE INCOME TAX
SquareIy Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.

Don't wait until the final due DAFT
March IS, for paying your Income Ia,
and making your return. Avoid tn
last minute rush. Any person can f1g
ure out his liability today as we'll as h
can next week, and If there is an.
point on which he needs advice he car
now get In touch with Revenue man.
This word of advice is from William
! G. Whaley, Collector of Internal Reeve
nue., Helena, Mont, who is collecting
the Income Tax In Montana, Idaho ant
| Utah. Collector Whaley is giving with
out charge every aid of his office ant
his enlarged field force to help the PEG
pie get their payments and their re
turns in by March 18th.
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-
vidual 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 Much7
Every unmarried person who re-
ceiyed income averaging $1925 a week
during 1918 and every married couple
who Jointly received income averaging
$3.50 week should secure at once
from the nearest Deputy Collector or
the nearest bank a blank Form 104O 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
81 600 or over and every married per-
son whose net income was $1,000 or
over dncluding the income of husband
or wife and the earnings of minor
children, If any must make return
on or before March 10Th. And this re-
quirement 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, 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
fixtures, ETC., used in business.
A further deduction Is allowed for con-
-ributiOns to corporations operated for
religious, charitable, scientific~or edu-
,ational purposes or for the prevention I
If cruelty to children or animals to an I
mount not exceeding Is per cent of /
he taxpayers net income as computed /
Without the benefit of the contribution
deduction.
The taxpayer Is not allowed to de-
luct any personal, living or family ex-
'ense, any amount spent for improving
property or any expense Of restoring
or making good its exhaus-
ion for which an allowance Is claimed
Inder depreciation.
Figuring tho Tax.
Before figuring the normal tax the
ividends are deducted as credits from
et income, together with the personal
1emption. AS in previous years, divi-
ends of domestic corporations are ex-
lnpt from normal tax when received
y the stakeholder.
The normal tax rates for citizens
nd residents are as follows: On the
rSt $4,000 Of net income In excess of
ls credits the rate is per cent; on
ny further taxable income the rate IL
? per cent
The surtax rates apply to net in
)me of each individual In excess Of
5000. The personal exemption and
lie dividends are not deductible before I
surtax. In the case of re-
rms by husband and wife, the net in
,me of each is considered separately
computing any surtax that may be
Ie Form 104O should be used for {
aksng returns of net income exceed
g $1,000, and the instructions on that
nm will show how to figure the sur
X.
Business House Returns.
Employers and others who paid
ages, salaries, rents, interest or sim q
If determinable gains In an amount e
$1,000 or over during 1918 to any e
rson must file an information return e
tn the Government Blanks may be s
cured from the Collector. 6
Every partnership must file a return =
owing It's income and deductions and y
e name and address Of each partner, .
tn his share Of the profits or losses g
ring the past year. Personal service 3
operations will file similar informa- 4
n for 1918 Il
\ u a Il Il n