The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1919-03-07
THIS TELLS HOW TO y
/ FIGURE INCOME TN
quareIy Up to Every individual
to Get Busy by March Is
or Suffer Penalty.

March 18th, for paying your Income
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 being given
out by Internal Revenue men. Re-
turns and payments are being col
lected In Kentucky by the following
Collectors of Internal Revenue:
Josh T. Griffith.
J. Rogers Gore.
Charlton B. Thompson.
Elwood Hamilton.
John w. Hughes.
Every aid Of their Offices and deld
forces Is being given freely to the
public.
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 If he comes within the
| scope Of the new Revenue law.
Did You Earn This Mueh7
| Every unmarried person who re-
| ceived income averaging 1925 a week
during 1918 and every married couple
who Jointly received income averaging
$3.50 a week should secure at once
from the nearest Deputy Collector or
the nearest bank blank Form 1O4O 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
$1,000 or over and every married per-
son whose net income was $1,000 or
over (including the income Of husband
or wife and the earnings Of minor
children, IL any must make return
on or before March 18TH 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
3 are exempt.
Deductions include ordinary and nee
, essary business expenses, interest paid
or accrued on Indebtedness, taxes Of
all kinds except Federal income ant
excess profits taxes and assessment!
!, for local benefits, losses actually sus
tanned, debts ascertained to be worth
less and depreciation on buildings, ma
chinery, fixtures, etc, used In business
A further deduction 10 allowed for con
tributions to corporations operated 10
religious, charitable, scientific or edu
cational purposes or for the prevention
Of cruelty to children or animals to a
g amount not exceeding Is per cent o
Il the taxpayers net income a. computes
n without the benefit of the contribution
deduction. .
The taxpayer Is not allowed to de
, duct any personal, living or family ez
pense, any amount spent for improvin
property or making good its exhaus
. ton for which an allowance ID elaine
under depreciation
Figuring the Tax.
Before figuring tho normal tax tn
:, dividends are deducted Is credits fror
~ net income, together with the persons
exemption. As In previous years, div
a dends Of domestic corporations are e,
. empt from normal tax when receive
- by the stakeholder.
~ The normal tax rates for citizen
and residents are as follows: On tn
!, first $4,000 OF net income In excess q
the credits the rate Is 6 per cent;
any further taxable income the rate
IL per cent.
The surtax rates apply to net II
come Of each individual in excess
$1,000. The personal exemption an
the dividends are not deductible befol
computing surtax. In the case OF r
turns by husband and wife. the nj
income OF each Is considered separat
~ In computing any surtax that ma
ho dra Form 1O4O should be used IL