The Ordway new era., 1919-03-07
How to Figure
Income Taxes

."pon't wait until the final due date,
March IS. 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 II there is any
point on which he needs advice he can
now get In touch with Revenue man."
This word of advice is from Mark A.
Skinner. Collector of Internal Reve-
/ nue., Denver, Colo, who Is collecting
the Income Tax in Colorado and Wy
oming. Collector Skinner 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 will not
pull your door-bell or your coat-tails.
according to the Collectors announce
ment II is squarely up q 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 fiu-h2
Every unmarried pcrspi Who re-
ceived income averaging s1925 week
during 1918 and every married couple
who Jointly received income averaging
$3.50 week should secure at once
from the nearest Deputy Collector or
the nearest bank n blank Form 1910 A.
That form contains the Information he
will need 10 enable him to figure his
correct net income aud any tax that he
owes the government.
The law requires that every unmar-
red person who had II net income Of
81 900 Or over and every married per
son whose net income was $1,000 or
over (ncluding the income of husband
or wife and the earnings of minor
children, II any) must make return
on or before March ETH. 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-s
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
are exempt.
Deductions include ordinary and nee
essary business expenses, interest paid
or accrued on indebtednessA taxes of
! all kinds except Federal ineyme and
excess profits taxes and assignments
for local benefits. losses actually sus-
tnined, debts nscertained to he WORTH
less and depreciation on buildings, ma
LII to- h,,s.t
A further deduction Is allowed for con-
tributions TO corporations orerated 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 clnimed
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-
deuds of domestic corporations are ex-
einpt from normal tax when received
by tie 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 6 per cent; ON
any further taxable income the rate is
Il per cent.
The surtax rites apply to net in
come of each individual In excess of
$1,000. 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 1910 should he used for
making returns of net income exceed
Ing $1,000, and the instructions on that
form will show how to figure the sur
tax.
Business House Returns.
Employers and others who paid
wages, salaries, rents. interest or sim
liar determinable gains in an amount
Of 81 900 or over during 1918 to any
person must file an information return
with the Government. Blanks may be
secured from the Collector
Every partnership must file return
showing its income and deductions and
lie name and address of each partner,
with his share of the profits or losses
during the past year. Personal service
corporations will file similar informa-
tion for 1918.
JOHN is POORLY
John Barleycorn," 1t Is said, "is