The Irish standard., 1919-03-01
THIS TELLS how TO
FIGURE INCOME TAX
Squarely Up to Every individual
to Get Busy by March IS
OF Suffer Penalty.


"Don't wait until the final due date,
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 we'll a.
he can next week, and II there II any
point on which he needs advice he can
now get In touch with Revenue man"
This word Of advice u from Edward
]. Lynch, Collector Of Internal Reve-
nue.. St. Paul, who 10 collecting the
Income Tax In Minnesota. Collector
Lynch 10 giving without charge every
aid Of his once and his enlarged aeld
force 10 help the people get their pay
ments and their returns In by March
18th.
But The Income Tux men viii not
pull your door-bell or your coat-tails,
according to the Collectors announce
ment. It II squarely up to every indi-
vidual to figure out his own case and
to get busy II he comes within the
scope Of the new Revenue law.
Old You Earn This Mueh1
Every unmarried person who re-
ceived income averaging $19.25 week
during 1918 and every married couple
who jointly received income averaging
$3.50 q week should secure at once
from the nearest Deputy Collector or
the nearest bank q blank Form 104O 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 net income Of
1000 or over and every married per-
son whose net income was $1,000 or
over Uncluding the income Of husband
or wife and the earnings Of minor
children, If any must make a 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
| are exempt.
Deductions include ordinary and nee
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.
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 fol
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 o1
the taxpayers net income as computed
without the benefit of the contributor
deduction.
The taxpayer is not allowed to de
duct any personal, living or family ex
pense, any amount spent for improving
property or making good its exhaus
tion for which an allowance is claimed
under depreciation.
Figuring the Tax.
Before figuring the normal tax th'
dividends are deducted as credits from
net income, together with the persona
exemption. AS in previous years, divi
dends of domestic corporations are ex
empt from normal tax when received
by the stockholder.
The normal tax rates for citizen
and residents are as follows: On tn
first $4,000 of net income in excess o
the credits the rate is 6 per cent; o.
any further taxable income the rate
12 per cent.
The surtax rates apply to net In
} come of each individual in excess Q
$5,OOO The personal exemption an
; the dividends are not deductible befor
computing surtax. In the case Of RI
turns by husband and wife, the nc
income of each is considered separate
ly in computing any surtax that ma
be due. Form 1O4O should be used fo
making returns Of net income exceed
, ing $4,000, and the instructions on ths
| form will show how to figure the SUI
tax.
Business House Returns.
Employers and others who pal
wages, salaries, rents, interest or sin
liar determinable gains in an amour
{ Of $1,000 or over during 1918 to an
person must file an information retur
with the Government. Blanks may
{ secured from the Collector.
Every partnership must file retur
( showing its income and deductions an
( the name and address Of each partne
+ with his share of the profits or losst
( during the past year. Personal servit