The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1919-03-12
THIS TELLS HOW TO
FIGURE INCOME TAX
Squarely Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.


Tax and making your return. Avoid
the last minute rush. Any person can
figure out his liability today as well as
he can next week, and If there is any
point on which he needs advice he can
now get in touch with a Revenue man. "
This word of advice is from Edward
]. Lynch, Collector Of Internal. Reve-
nue., st. Paul, who is collecting the
Income Tax in Minnesota Collector
Lynch is giving without charge every
aid of his Office and his enlarged field
force TO help the people get their pay
ments and their returns in by March
| 10Th.
But the Income Tax men will not
pull your door-bell or your coat-tails
according to the Collectors announce
ment. 1t is squarely up to every ~indi-
vidual TO figure out his own case and
TO get busy il he comes within the
scope of the new Revenue law.
Did You Earn This Much7
Every unmarried person who re
ceived income averaging SO % week
during 1913 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 blank Form 1910 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
81 900 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 return
on or before March 18TH And this re-
quirement does not hinge on whether
the person owes a 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
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 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 making good its exhaus-
ton 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 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 per cent on
any 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 |
income of each is considered separate |
ly in computing any Surtax that may |
be due. Form 1040 should be used for |
making returns of net income exceed |
ing $4,000, and the instructions on that |
lUIIu Will SnOH INV ~ = bh0 SSA
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 It's 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 informa-
ton for 1913.
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