Okolona messenger. (Okolona, Miss.) 1900-current, 1919-03-06
THIS TELLS HOW TO
FIGURE INCOME TAX
SquareIy Up 10 Every Individual
to Get Busy by March IS
or Suffer Penalty.


figure out his liability today as we'll as
he can next week, and II there is any
point on which he needs advice he can
now get in touch with n Revenue man."
This word OF advice is from John
-. McNeel, Collector of Internal lieve-
nue. Birmingham, who is collecting the
income Tax in Alabama and MISSISSIPPI
pi. Collector McNeel is giving without
.harge every aid of his Office and his
enlarged field force TO help the people
to get their payments and their re-
turns in by March 10Th.
But the Income Tax men viii moi
pull your door-bell or your c0at-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 If he comes within the
scope. Of the new Revenue law.
Did You Earn This Much7
Every unmarried person who receiv
ed income averaging Sl9.2j week
during 1918 and every married couple
who Jointly received income averaging
from the nearest Deputy Collector or
The nearest bank blank Form 1910 A.
That form contains the information lie
will need to enable him 10 figure his
correct net income and any fax that he
owes the Government
The law requires that every unmar-
red person who had a ret income of
II o., Il
| son whose net income was $1,000 or
| over (including 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-
| qurcment 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 noe
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 ascertaned to he worth
less. and depreciation on buildings, ma
| chinery, fixtures etc. used In business
A further deduction is allowed for CON
trihutiOns to corporations operated for
religious, charitable. scientific or edu-
catiOnal purposes or for the prevention
of cruelty TO children or animals to 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 10 de-
duct any personal, living or family ex-
pense, any amount spent for improving
property, or any expense Of restoring
property or making good its 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 yenrs, divl-
dends of domestic corporations are ex-
empt from normal tax when received
by the stakeholder
fNv- al
and residents are as follows: On The
first $4,000 Of net income in excess of
the credits the rate Is 6 per cent; on
any further taxable income the rate Is
- per cent
The surtaX rates apply to net In
come of each individual in excess OF
$1,000. The personal exemption and
the dividends are not deductible before
computing surtaX. In the case OF re
turns by husband and wife. the net
income Of each 10 considered separate
" ia computing any surtax That may
oe due. Form 1850 should be used for
making returns of net income exceed
NJ s. GEO, and tie Instructions on that
form win show how TO figure the sur
lax.
Business House Returns.
Employers and others who paid
wages, salaries, rents, interest or sim
ilar determinahle gains in an amount
IF 81 900 or over during 1918 TO any
persol must file an information return
with die Government Blanks may be
secured from the Collector.
] q
showing its 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
corporations will file similar infOnna-
ton for 1918.
&k4I& 4 k.+k 4 k*t + 4 4 \ =