American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1919-03-07
THIS TELLS HOW TO
FIGURE INCOME TAX

eDon't wait until the final eda GATE, :
March 18th, for paying your Income
Tax and making your return. Avoid
last minute rash. Any person can
naur, rf his liability today as well as
can O.. week, and II there is any
polnt on which he needs advice he can
get IN touch with a ReyeIfue man. 4
This word Of advice is from William
@ Whaley, Collector Of Internal Reye-
nue., Helena, Mont, who Is collecting
the Income Tax In Montana, Idaho and
Utah. Collector Whaley Is giving with
out charge every aid Of his Office and
his enlarged field force to help the PEG
ple get their payments and their re-
turns IN by March 10Th.
But the Income Tax men will not
pull your doOr-bell or your coat-tails.
according to the Collectors
ment. It Is squarely up TO every indl-
vidual TO figure u his own case and
TO get busy II he comes within the
scope OF the new Revenue law.
Did You Earn This Much7
Every unmarried person who receiv-
ed income averaging S19.25 a week
during 1918 and every married couple
who Jointly received income averaging
s38. so a week should secure at once
from the nearest Deputy Collector or
the nearest bank a blank Form lO4O 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.
"a -. NhAt ~ NJ =
| ried person who had a net income of
$1,000 or over and every married per
son whose net income was $1,000 or
over (including the income OF husband
or wife. and the earnings OF minor
children, II any, must make q return
on or before March 18th. And this re-
quirement does not hinge on whether
the person owes n 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
r or accrued on Indebtedness, taxes of
% all kinds except Federal income and
. excess profits taxes and assessments
. for locnl benefits, losses actually sus
- tnined, debts ascertained to be worth
? less, and depreciation on buildings, ma
o chlnery, fixtures, etc, used In business
A further deduction Ii allowed for con
tributlons TO corporations operated 70
n religious, charitable, scientific or edu
} %cational purposes or for the prevention
q OF cruelty to children or animals TO al
AMOUNT not exceeding 10 per cent o
o the taxpayers net income as computed
y without the benefit OF the contribution
deduction.
The taxpayer In not allowed to de
n duct any personal, living or family OF
pense, any nmount spent for improving
"a property, or any expense OF restoring
n property or making good Its exhaus
~ ton for which nm allowance IL claime'
- under depreciation.
at Figuring the Tax.
Before figuring the normal tax tn
%. dividends are deducted as credits fror
III net income, together with the persona
n exemption. As In previous years, div
dends OF domestic corporations are @,
re empt from normal tax when receive
ls by the stakeholder,
The normal tax rates for citizen
and residents are MS follows On III
I first $4,000 of net income In excess {
the credits the ate il @ per cent o
any further taxable Income the rate
~ per cent,
The surtaX rates apply to net II
come OF each individual In excess I
$4,000. The personal exemption IN
the dividends are not deductible befol
computing surtax. In the case of r
turns by husband and wife, the n,
income OF each Is considered separat
ly in computing any surtaX that mt
be due. Form i040 should be used Il
making returns of net income eScee
ing $1,000, and the instructions on tn
form will show how 10 figure the su
tax.