The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1919-01-23
WHAT is YOUR INCOME TAX?
Following Article Tells You What
You Will Have to Pay and
How to Pay 1t.


paration is being made to handle the
largest collection in the history OF
Income Tax. IL am not waiting for
bhe final passage of the new revenue
bill by Congress" said Collector d.
C. Heyward today, for the new regu-
Iations and blank forms to be issued.
TO get this big tax in and get 1t ac-
surate and complete, l urge that we
all begin now.
1.-THE Income Tax obligations i'm
posed by the old laws, as we'll as the
measure now in Congress, consists Oh
two distinct operations. One is, o
sile return or statement of all items
of income and items of deductions
allowable by law. The other is, to pay
the tax, if any is due.
Neither of these obligations can
be met without careful review Oh
income and expenditures for the tax
rear. That is the big job right now'
and that is why I say that Income
YAK drive is already under way. Ev-
srywhere the pencil is busy. The
old year is done; all its fruits are
sleaned; and every person who fared
we'll, or earned good competence,
must analyze his own case in colo
figures.
"When the new bill is enacted IN
An law. l will have the proper return
forms distributed throughout the DIS
srict and everybody will be informed
of the date when the sworn return
must be filed. 1t is my plan 10 SEM
eut to central locations, and to have
them travel through the District, aid
ing taxpayers in the preparation ol
the returns and in deciding douet-
sui points. We will go right to the
people With the Income Tax and
with the cooperation which the
public can give the government men,
the returns will be filed by everybody
who comes under the laws provisions
the right taxes will be paid, and the
district will have done its full patrlo-
tic duty towards the governments
support.
Meanwhile, let me say again, there
l. no need of delaying the prepara-
zion of figures. Anything thai con-
aress does now will not affect the
amount of a persons earnings for
1918. Let us avoid the belated throw
ing together of figures that may MT
ar miss. Guesses cannot be accepted
as the basis OF taxation. 1t is clearly
she duty of every person to compile
correct figures and ascertain wheth-
or his income for 1918 was sufficient
10 make a necessary sworn return
"The year 1918 was a banner year
for salaries and wages, and the high
war prices brought unusual profits TO
me average small tradesmen and to
the farmer. The opinion in Washing
ION is that a million citizens and res
fdents will make this year their first
Spcome tax returns.
"All signs indicate that the income
tax this year will reach nearly every
working man and woman, and nearly
every merchant, shop keeper and far
ner. Net all will have to pay the tax
but nearly all will be obliged to make
n sworn statement of the years in
come.
.I am therefore advising every un-
married person who earned $1,000
OK over during the year 1918, and
every married person, who together
with wife or husband, earned $1,000,
% sharpen his pencil and figure out
how he stands.
-eHe must ascertain accurately his
Gross income from all sources. There
Is his salary or wages, including oY-
srtime pay and any bonus received as
additional compensation. A married
,erson having children under 1S who
are working, should include the
earnings of such children.
Ni'Ir he sold any property at profit
the gain must be computed and IN
slud ed in gross income. If he rented
any property to other persons the
total rents received in the year must
be ascertained, and from that figure
q deduction may be taken for taxes
paid on rented property, the neces-
sary minor repairs, fire insurance,
any interest he may have paid on
mortgage, and a reasonable allow
ance for annual wear and tear OF
the rented property. The balance is
included in gross income for the year.
Interest on bank deposits, wheth-
sr withdrawn or added to his bank
balances must be included in all cal
eulations of income. Bond interest
received during the year must also
be included, except interest on mum
icipal county or State bonds. Interest
sn United States Bonds need not be
included by the ordinary bond holder
who nurchased small amounts. Hold