The Alaska daily empire., 1919-02-28
Statements and First h. staIIment of Taxes Must Be in Hands of Collect
 or March 10th.
DETAILS OF MEASURE
Many Things Regarding h. come Taxes That All Taxpayers Are Asking
 About Answered.

|
 the next two weeks or by March b every unmarried man or woman who earned $1,000 or more in the calendar year of 1918 and every married per son whose income amounted to $2,00G or more must make a detailed re port of his income to the Federal revenue collector of his district. On or before March Is the first install ment of the income tax must be paid, one-fourth of the entire amount due, or all of it if the tax payer chooses.
 This means that millions of Amer jeans must get to work at once to prepare their returns, and for the guidance of taxpayers, the Internal Revenue Bureau has issued explicit instructions covering the preparation and filing of returns. This is the A c of the procedure:
 l First get a tax return form from the revenue collectors office or from bank There are many kinds of these forms. If persons income was below $5,0O0, he should ask for the form especially intended for the smaller incomes. It might be advis able to get two or three of these forms, since one may be spoiled in the preparation. The form is a six page printed sheet, with detailed in structions for reporting various items of income and for calculating the tay due. By following this form closely i even an inexperienced person prob ably will have little difficulty, par ticularly if his source of income was not complicated or if it was in wa ges or salary rather than in business transactions.
 Average Tax Rate
 The tax rate for most individuals is six per cent. For single person this is imposed on the difference be tween the total net income for the year and $1,000, the so-called exempt ed amount. For a married man, oI for the heads of a family, the exempt tion is $2,0OO and the six per cent tax is imposed on the difference be tween that and the total income There is provision for an additional exemption of $200 for each child or other dependent person, under eigh teen years of age or incapable of self-support. Thus married man with one child or an aged parent would have an>exemption of $2,20f and would pay tax on the difference between this and his net income. A man with two children would have an exemption of $2,400; three children | $2,600, and so on.
 How To Compute Tax
 To illustrate the calculation of tax; | A single man with a net income of $2,O00 last year will be taxed $60; income of $3,OOO, tax $12O; income of $4,OOO, tax $1SO; income $5,000. tax $240.
 1 A married man without children and with an income of $2,500 last year will pay tax of $50; income l $3,000, tax $60; income of $4,000, tax $12O; income of $5,000, tax $180. 1 The regular or normal tax is IF per cent. on incomes of more than | $5 900 in case of unmarried persons and more than $6,000 in the case of married persons without children. In other words, the tax is doubled on | incomes of $4,000 more than the specific exemption. In addition, so called surtaxes superimposed on the regular or normal tax are assessed on net incomes of more than $5.O0O, the additional rate being one per cent. for the first $1,000 above that sum. two per cent for the next $2,000 three per cent. for the next $2,000, and one per cent. for each additional $2.O0O. Both the 12 per cent. rate and the surtaxes may be ignored by | persons with incomes of less than $5,0OO.
 What One Must Do. | After the tax is figured, person l must count at least on paying one fourth of the sum by March 15. The second installment of one-fOurth is due June 15; the third quarter, Sep tember 15, and the last installment, December 15. Penalties are provid- ed for failure to file on time or to pay the tax promptly, and tax of- ficials welcome returns and payments before March 15. Payment in full by ! March 15 also will be welcomed on the ground that the Government needs the money.
 A husband and wife whose combin- ed net income for 1918 amounted to $2,OO0 or more must file return either separately or jointly. If sep arate returns are filed, either may claim the personal exemption of $2,- 900, or this exemption may be di- | yided. Earning of dependent chil- dren must be included as part Of <~< Fe. sIxr