Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1919-02-27
THIS TELLS HOW TO
FIGURE INCOME TAX
Squarely Up to Every Individual
to Get Busy by March IS
or 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 well as
| ne 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
| J. 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
| 18th.
But the Income Tax men will not
pull your door-beII or your coat-tails
according to the Collectors announce
ment. II 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 Mucn.
Every unmarried person who re-
| eeived income averaging Sl925 a week
| during 1918 and every married couple
who jointly received income averaging
$3.50 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
| $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 return
on or before March 18th. And this re,
| qu:rement 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
| 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, mn,
| ehinery. fixtures. etc, used In business.
| \ further deduction Is allowed for con-
| tributions to corporations operated for
| religious charitable. scientific or edu.
| cational purposes or for the prevention
If 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
duet any personal. living or family ex-
| pense. any amount spent for improving
property or making good its eXhuus-
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-
| dentis Of domestic corporations are ey-
empt from normal tax when received
by the stakeholder.
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 6 per cent: on
| any further taxable income the rate Is
IL per cent
The surtax rates apply to net In.
Gene Of each individual In excess Of
| $1,000 The personal exemption and
| the dividends are not deductiblc before
| computing surtax. In the case of re-
turns by husband and wife the net
income Of each is considered separate
~ in computing any surtax thar may
he due Form l04O should be used for
making returns of net income exceed
ing $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 1913 to any
person must file an information return
| with the Government Blanks may be
secured from the Collector.
| Every partnership must file a 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 die similar informa-
tion for 1918