The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-02-25
HOW TO FIGURE
YOUR INCOME
Returns Must Be Made and
Installment Paid by
March Is
SOME EXEMPTIONS
ARE ALLOWED
Government Will Allow Assistance if
Desired-A List of Deductions a Per
son Can Make from His Gross In
come.

W WASHINGTON, Feb. 25-Within
the next three weeks, or by March 10,
very unmarried man or woman who
earned $1,000 or more in the calendar
year 1918 and every married person
whose income amounted TO $4,000 or
more must make a detailed report of
| his income to the federal revenue col
leetor of his district On or before
March Is the first instalment of the
| income tax must be paid, one-fourth of
the entire amount due, or all of it if
he taxpayer chooses
This means that millions of Ameri-
| cans must get to work at once to pre-
pare their returns, and for the guild
anee of taxpayers, the internal reve-
nue. bureau has issued explicit instruc-
ions covering the preparation and
fling of returns. This is the A B C of
he procedure:
First get tax return form froTa the
revenue collectors office or from
bank. There are many kinds of these
| forms. If a person s income was be-
| low $4,000, he should ask for the form
/ especially intended for the smaller in
comes. II might be advisable TO get
w0 or three of these forms, since one
| lay be spoiled in the preparation The
orm is sixpage printed sheet, with
lctailed instructions for reporting va
ious items of income and for calculat
! ng the tax due. BY following this
form closely even an inexperienced
nprson probably will have little diff
,ulty, particularly if his source of in
ONE was not complicated or if it was
n wages or salary rather than in bust
| loss transactions.
The tax rate for most individuals is
| ) per cent. For single person this is
| imposed on the difference between the
| otal net income for the year and ST.
| 90, the so-called exempted amount
| or married man, or for the heads of
I family, the exemption is $4,000 and
he per cent tax is imposed on the
Inference between that and the total
rcome. There is provision for an ad-
itional exemption of 5000 for each
hid or other dependent person. I'M
lef Is years of age or incapable of
nlfsuppOrt Thus married man with
ne child or an aged parent would have
n exemption of $4,000 and would pay
TX on the difference between this and
his net income. A man with two chill
dren would have an exemption of
-, 400; three children $4,000, and so on.
Facts and Figures.
To illustrate the calculation of tax:
A single man with a net income last
ear of $4,000 will be taxed 500; in
ONE of $4,000 will be taxed $120; in
ONE of $4,000, tax $3.50; income So
300, tax $40.
A married man without children and
With an income of So 500 last year will
,ay tax of $50; income $4,000 tax
$50; income of $4,000, tax $120; in
Que of $4,000, tax $3.50.
The regular or normal tax is IL pei
cent on incomes of more than $4,000
4 n case of unmarried persons and more
{ han $4,000 in the case of married per
: sons without children, in other words
h he tax is doubled on incomes of S.,
Y 200 more than the specific exemption
In addition, so-called surtaxes superim
posed ON the regular or normal tax ar,
assessed on net incomes of more thar
/, $4,000, the additional rate being / pc
q cent for the first ST 900 above that sum
;. 2 per cent for the next So 900. 3 pc
cent for the next $4,000 and i per cen
4 increase for each additional $4,000
Both the II per cent rate and the sur
taxes may be ignored by persons witt
r incomes of less than $4,000.
ie After the tax is figured, a person
as must count at least on paying one
re- fourth of the sum by March Is. TIL
second instalment of one-fourth is du
= June Is; the third quarteN Septembe
4 ii To- l.
lis. Penalties are provided for fail
ure to file. on time OF. to pay the ia
promptly and tax officials welcome re
L turns and payments before March II
Payment in full by March Is also wi
he welcomed on the ground that tn
government needs the money.
u A husband and wife whose combine
s. net income for 1918 amounted to $500
u or more must file return either sepa
Is lately or jointly If separate return
are filed, either may claim the person
al exemption of $4,000 or this exeml
8 ton may be&aivided Earnings of d
pendent children must be included 8
psr+ of tho income of the head of th
Family. If an unmarried person SUI
ports either partially or wholly, a pa
at or some other relative or friend, M
living IN the same fhouss hold. this pc
son is not considered The head Of
family and is therefore entitled only !
the $1,000 exemption. If the parent
wholly dependent, however and lives
the taxpayers household, this maxi
the unmarried person the "head of Il
family. =
If, because of the special exem
tions for children and dependents
because of the exemption of soldier
of and sailors pay, an unmarried pc
,ur son s income of more than 81 900 or
on married person s income of moro tn;
he So 600 is found not to be taxable, tn
condition does not free the individu
tie from fling return. Thus many perso
rerl who do not have to pay a tax must f
Iretiirnss Is. )
DIV. 4 head of ~ family is described o