The state herald., 1919-02-28
THIS TELLS now TO
FIGURE INCOME TAX
SquareIy Up to Every Individual
to Get Busy BY March is
Or Suffer Penalty.


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 a. well as he
can next week, and II there is any
point on which he needs advice he can
now get In touch with 4 Revenue man."
This word Of advice II from Mark A.
Skinner. Collector Of Internal Reye-
nue., Denver, Colo, who isf collecting
the Income Tax In Colorado and Wy
oming. Collector Skinner is giving
without charge every aid of his Office
and his enlarged Geld force to help the
people get their payments and their
returns in by March 18th.
But the Income Tax men will not
pull your door.bell or your coat-taiis,
according to the Collectors announce
ment. II is squarely up to every lndi-
vidual to figure out his own case and
to get busy II lie comes within the
scope of the new Revenue law.
Did You Earn This Muehf
Every unmarried person who re-
ceived income averaging $l925 a week
during 1918 and every married couple
who Jointly received income averaging
$3.50 a week should secure nt once
from the nearest Deputy Collector or
the nearest bank blank Form 1910 A.
That form contains the Information he
will need to enable him to figure his
correct net income and any tax that hs
owes the government.
The law requires that every uninaP-
ried person who had net income Of
$1,000 or over and every married per
son whose net income was $1,000 or
over (ncludlns the income 0: husband
or wife and the earnings Of minor
children, II sny) 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 I'm 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 nec
+, 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 10 allowed for con
tributions to corporations operated for
religious, charitable. scientific or edu.
cationai purposes or for the prevention
Of cruelty to children or snimais to IN
amount not exceeding Is per cest Of
the taxpayers net Income a. computed
without the benefit Of the contribution
deduction.
The taxpayer 10 not allowed to d.
duct any personal. living or family ex
pense, any amount spent for improving
property or any expense Of restoring
properly or making good Its exhaus.
ton for which an allowance II claimed
under depreciation.
Figuring the Tax.
| Before figuring the porInai tax the
dividends are deducted a. credits from
net income, together with the personal
exemption. A. In previous yssra, divi
dends Of domestic corporations are ~
empt from normal tax when received
BY the stockhoidsr.
and fesldents are a. follows: On thu
arst 1900 sf net income Ia excess OF
the credits the rate II Q per cent; OF
any further taxable income The rate II
/; !. 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 bcfor-
computing snrtax. In the case Of re-
turns by husband md wife. the net In
tome Of each IL considered separately
In eoniputing any surtsl that may b.
due. Form 1910 should he used foi
making returns Of net income exceed
Ing 5000. and the Instructions on this,
form will show how 10 ngurs the sur
tag.
0velnsss hsvsS Rsturns
Employers and others who paid
wages. salaries, rents. Interest o. sim
liar deterninable gains In an s,nounl
Of 5000 OF over during 1918 to nm,
pereo6 must ale ~ information return
with the 0evssamsat. Blanks may BE-
secured from the C0llector.
Bvssy pasfnership must aie , return
shewioG IN inrome and deductions and
tie name and address Of each partner
with his share Of the profits OF losses
during the past year. Personal service
corporations will Ole similar informs
tles fer 1915