The Spanish American. [volume] (Roy, Mora Co., N.M.) 19??-19??, 1919-03-15
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 date,
March 10, for paying your Income Tax
and making your return. Avoid the
last minute rush. Any person can fig-
ure out his liability today as well as he
can next week, and if th@e is any
point on which he needs advice he can
now get in touch with a Revenue man."
This word Of advice is from Alfred
Franklin, Collector Of Internal Reve-
nue., Phoenix, Ariz, who is collecting
the Income Tax in Arizona and New
Mexico. Collector Franklin is giving
without charge every aid Of his Office
and his enlarged field force to help the
people get their payments and their
returns in by March 18th.
But the Income Tax men viii not
pull your door-bell or your coat-tails.
according to the Collectors announce
ment. tits squarely up to every indl-
vidual to figure out his own case and
20 get busy II he comes within the
scope of the new Revenue law.
Did You Earn This Much7 -.
Every unmarried person who re-
seiyed income averaging $19.25 week
Turing 1918 and every married couple
who Jointly received income averaging
1880 week should secure at once
rom the nearest Deputy Collector or
he nearest bank blank Form 1910 A.
That form contains the Information he
will need to enable him to figure his
lorrect net income and any tax that he
yves the government. q
The law requires that every unmar-
lied person who had net income OF
1000 or over and every married per-
,on whose net income was $1,000 or
,ver Qncluding the income of husband
,r wife and the earnings Of minor
'hiIdren, if any) must make a return
N or before March 18th. And this re-
luirement does not hinge on whether
Ne person owes a tax. r,
Taxable Income.
An individual must include under
Toss income al gains, profits and IN
,ome derived from salaries, wages or
compensation for personal service of
whatever kind and in whatever form
paid for from professions, vocations,
business, sales or dealings in property
If all kinds, interest, rent, dividends
Or profits derived from any source
whatever Very few items Of income
ire exempt
Deductions include ordinary and nee
sssary business expenses, interest paid
jr accrued on Indebtedness, taxes of
al 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
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 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 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 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 years, divi-
dends of domestic corporations are ex-
Cm,pt from normal tax when received
by the stOckholder.
The normal tax rates for citizens
and residents are as follows: On the
FIRST $4,000 Of net income in excess of
the credits the rate is 8 per cent; on
sny further taxable income the rate is
IL per cent.
The surtax rates apply to net in
come Of each individual In excess Of
5000. The personal exemption and
the dividends are not deductlble before
computing surtax In the case Of re-
turns by husband and wife, the net in
come Of each is considered separately
In computing any surtax that may be
due. Form 104O should be used for
making returrs of net income exceed-
ing $4,000, and the instructions Cd tl;at
form will show how to figure the sur
tax.
Business House RetuFhs
Employers and others who paid
wages, salaries, rents, interest or sim
liar determlnabIe gains in an amount
Of $1,000 or over during 1918 to any
pcrsOb must die an information return
with the GovernmNst. Blanks may be-
secured from the Collector.
Every partnership must file return
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 InfoFma-
tion for 1918