Newark post., 1919-03-05
THIS TELLS HOW TO
FIGURE INCOME TAX
SquareIy Up to Every Individual
to Get Busy by March Is
or Suffer Penalty.

Marcn 10Th, 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
he can next week, and if there Is any
point op which he needs advice he can
now get in touch with Revenue man."
This word of advice is from Joshua
w. Miles, Collector of Internal Reve-
nue., Baltimore, who is collecting the
Income Tax in Maryland and Della
ware. Collector Miles is giving with
his enlarged field force to help the
people get their payments and their
returns in by March 18th.
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
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 week should secure at once
from the nearest Deputy Collector or
the nearest bank a 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.
hn Low hof
ried person who had net income of
$1,000 or over and every married per-
son whose net income was s., 900 or
over (ncluding 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-
lurement does not hinge on whether
he 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
! DR. profits derived. from any source
whatever. Very few items Of income
ire 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
tess and depreciation on buildings, ma
chinery, fixtures, etc, used in business
further deduction is allowed for con
tributions to corporations operated fol
religious, charitable, scientific or edu
| catiOnal purposes or for the prevention
of cruelty to children or animals to al
amount not exceeding Is per cent o.
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 improvin;
property or making good its exhaus
tion for which an allowance is claimed
under depreciation.
Figuring the Tax.
Before figuring the normal tax tn
dividends are deducted as credits fror
net income, together with the persona
exemption. AS in previous years, divi
dends of domestic corporations are eS
empt from normal tax when receives
by the stockholder.
The normal tax rates for citizen
and residents are as follows: On tn
first $4,000 Of net income in excess o
the credits the rate is per cent; o
any further taxable income the rate i
II per cent.
The surtax rates apply to net in
come of each individual in excess o
$1,000. The personal exemption an
the dividends are not deductible befor
computing surtax. In the case of re
turns by husband and wife, the ne
income of each is considered separate
ly in computing any surtax that ma
be due. Form 1910 should be used 70
making returns of net income exceed
: ing $1,000, and the instructions on tina
form will show how to figure the SUI
, tax
, Business House Returns.
!. Employers and others who pal
I wages, salaries, rents, interest or sin
!, liar determinab|e gains in an amour
= of $1,000 or over during 1918 to an
person must file an information retur
; with the Government Blanks may b
!, secured from the Collector.
e Every partnership must file retur
y showing it's income and deductions an
y. the name and address Of each partne
:. with his share Of the profits or losse
!. during the past year. Personal servic
l corporations will file similar inform:
ton for 1918.
l. 4 l. l. l. l. - l. l. 4 4 As l. b. l. \