Daily capital journal. (Salem, Oregon) 1903-1919, 1919-03-01
THIS TELLS HOW TO
FIGURE INCOME TAX
s@lareB Up TO Every Individual
10 Set Busy by March IS
or Suffer Penalty.

sDeH't wait until the final due date,
lhssA Is, ser paying your Income Tax
and making your return. Avoid the
last minute rush. ANY person can fig
ure eua lis habiiay today as well as he
can nest week, and If there is any
psist 81 which he needs advice he can
new set b tsueh with Revenue man" :"
Tkis wsrd Of advice is being given
eut by the Internal Revenue men who
are collecting the Income Tax in this
state. Every aid and assistance is
being given freely to the public. En-
lasged field forces are helping the peo-
pie in every way possible to get their
payments and their returns in by
March fifteenth.
But the Income Tax men will not
pull your door-bell or your coat-tails,
aeeerdlng to the Collectors announce
meat. 1t is squarely up to every indi-
vidual to figure out his own case and
10 get busy II he comes within the
scope Of the new Revenue law.
Did You Earn This Much7
Every unmarried person who re-
ceived income averaging $1925 week
during 1918 and every married couple
who jointly received income averaging
$3.50 a week should secure at once
from the nearest Deputy Collector or
the nearest bank a blank Form 1040 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
$1,000 81 ever and every married per-
son whose net income was $1,000 or
over finelsdlnx the income Of husband
or wife and the earnings of minor
children, If sny) must make a return
on sY Asfsxs March 18th. And this re-
dulSensat lees not hinge on whether
the pesssA ewes tax.
Taxable income.
An inaiyidual must include under
gross income all gains, profits and in
come derived from Salaries wages or
serspsnsatssn for personal service Of
whatever lind and in whatever form
paid ~ fssm professions, vocations,
busanesA sales or dealings In property
u al hisds, interest, rent, dividends
or pSsiHts derived from any source
whstsvsr. Very few items Of income
are exempt.
Deauetisns include ordinary and nec-
sssATy business expenses, interest paid
81 aeersed On Indebtedness, taxes of
an kints except Federal income and
e1sess Dssfnts taxes and assessments
fsY fssal BENEFITS, losses actually sus-
tanned. asbts aseertained to be worth
less ana aepseeiation on buildings, ma
ehiHery, lxtHSes, etc, used in business.
A further ABDUCTION Is allowed for con-
tFfbutisns 10 corporations operated for
religious, charitable, scientific or edu-
eatishal purposes or for the prevention
Of cruelty to childven or animals to an
ansEht not exceeding Is per cent Of
the taxpayers net income as computed
withsat the benefit of the contribution
deduetien.
The taxpayer Is not allowed to de-
duet any personal, living or family ex-
pense, any amount spent for improving
property Or any expense of restoring
property or making good its exhaus-
ti0n 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-
empt from normal tax when received
by the stakeholder
The normal tax rates for citizens
and residents are as follows: On the
first 81 600 OF net income In excess Of
The credits the rate is 9 per cent; on
Jny further taxable income the rate Is
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 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 be used for
mak.ng returns of net income exceed
lbg $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 $1,000 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
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 inf0rma-
tion for 1918.
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