The spectator., 1919-03-07
THIS TELLS HOW 10
 FIGURE INCOME I1A
SquareIy Up to Every Individual to Get Busy by March 10
 or Suffer Penalty.

l Tax and making your return. Avoid the last minute rush. Any person can | figure out his liability today as well as he can next week, and if 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 Jack Walker, Collector of Internal Reve- nue, Little Rock, who is collecting the Income Tax in Arkansas. Collector Walker IS giving without charge every
 aid of his office and his enlarged field force to help the people get their pay
 ments and their returns in by March 10th
 But the Income Tax men will not
 pull your door-bell or your coat-tails. according to the Collectors announce
 ment. It is squarely up to every indi-
 vidual to figure out his own case and
 to get busy if he comes within the
 scope of the new Revenue law Old You Earn This Much7 Every unmarried person who recelv-
 ed income averaging Sl9.25 a week during 1918 and every married couple
 who Jointly received income averaging $3S 50 a week should secure at once from the nearest Deputy Collector or the nearest bank blank Form lGf0 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- l ried person who had a net income of | $1.OOO or over and every married per | son whose net income was S@.0o0 or over Qncluding the income of husband or wife. and the earnings of minor children, if any) must make a return on or before March 18th And this re qulrement does not hinge on whether
 the person owes tax
 Taxable Income. An individual must include under gross income all gains, profits and ip
 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-
 tained, 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-
 cational purposes or for the prevention of cruelty to children or animals 10 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 any expense of restoring
 property or making good it's exhaus-
 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, dvi-
 dends of domestic corporations are ex- empt from normal tax when received by the stockholder.
 The normal tax rates for citizens and residents are as follows: On the nrst S4.0OO of net income in excess of the credits the rate is 6 per cent; on any further taxable income he rate is IF per cent
 The surtax rates apply 10 net in
 come of each individual in excess of &5.OOO. The personal exemption and the dividends are not deductible before computing surtax. Tn the case of re
 turns by husband and wife, the net
 income of each Is considered separate ly in computing any surtax that may be due Form 1040 should be used for making returns of net income exceed ing $5.OOO. and the instructions on that form will show how to figure the sur tax.
 OusIness House Returns. Employers and others who paid wages, salaries. rents, interest or sim liar determinable gains in an amount of $1,000 or over during 1918 to any person must file an information return with the Government Blanks may be secured from the Collector
 Every partnership must Ale return showing it's 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 corpora tions will file similar informa-
 ten fer 1918.