The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1919-01-30
FIGURE UP YOUR
INCOME FOR 1918
INTERNAL REVENUE COLLECTOR
COFFEY ISSUES STATEMENT
FOR GUIDANCE
ATTENTION NOW WILL AVOID. TROUBLE
Time Will Be Saved BY Figuring
Your Exemptions Now, Says
The Collector

Although congress has not yet pass
ed the revenue bill, the question CT
income tax will soon become a live
n and Internal Revenue Collector
Coffey of Aberdeen has prepared g
statement for the guidance Of all by
which they may figure their exemp'
tons. He urges all to begin at once
to figure their 1918 income.
The income tax obligations imposed
by the old laws, as well as the meas
ure now in congress, consist of two
distinct operations. One is, to file re.
turn or statement of all items of in.
come and items of deductions allow
able by law, and to do this within the
period named in the law. The other
is to pay the tax, if any is due.
Neither of these obligations can be
met without a careful review of in
come and expenditure for the tax year.
That is the big job right now, and that
is why ! say the income tai drive is
already under way. Everywhere the
pencil is busy. The old year is done;
all its fruits are cleaned; and every
person who Jared well, or earned a
good competence, must analyze his
own case in cold figures.
when the new bill is enacted into
law, | will have the proper return
forms distributed throughout the dis
trict, and everybody will be informed
Of the date when the sworn return
must be filed. 1t is my plan to send
my men out to central locations, and
to have them travel through the dis
trict, aiding taxpayers in the prepare
ton of the returns and in deciding
doubtful points. We will go right to
the people with the income tax, and
with the cooperation which the pub
lie can give the government men, the
returns will be filed by everybody whG
comes under the laws provisions, the
right taxes will be paid, and the dis
trict will have done it's full patriotic
duty toward the governments sup.
port.
Meanwhile, let me say again, there
is no need of delaying the preparation
Of figures. Anything that congress
does now, will not affect the amount Of
a persons earnings for 1918. Let US
avoid the belated throwing together
of figures that may hit or miss,
Guesses cannot be accepted as the ba-
sis Of taxation. 1t is clearly the duty
of every person to compile correct fig
ures and ascertain whether his income
for 1918 was sufficient to make neces-
sary sworn return.
Increased Incomes
THE year 1918 was a banner year
for salaries and wages, and the high
war prices brought unusual profits to
the average small tradesman and to
the farmer. The opinion in Washing
ton is that a million citizens and resi-
dents will make this year their first
income 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 farm
err. Not all will have to pay the tax,
but nearly all will be obliged to make
. sworn statement of the years in
come.
Il am therefore advising every I'M
married person who earned 81 900 or
over during the year 1918, and every
married person, who together with
wife or husband. earned $4,000, TO
sharpen his pencil and figure out how
he stands.
"He must ascertain accurately his
gross income from all sources. There
is his salary or wages, including over
time pay and any bonus received as
additional compensation. A married
person havil- children under IS who
are working should include the earn
ings of such children.
"If he sold any property at a profit,
the gain must be computed and in
cluded in gross income. If he rented
any property to other persons, the to-
tai rents received in the year must
be ascertained, and from that figure
a deduction may be taken for taxes
paid on rented property, the necessary
minor repairs, fire insurance, any in
terest he may have paid on mortgage,
and a reasonable allowance for annual
wear and tear of the rented properly.
The balance is included in gross III,
come for the year.
Interest on bank deposits, whether
withdrawn or added to his bank bal
ances, must be included in all calcu-
lations OF income. Bond interest re-
ceived during the year must also be
included. except interest on municipal,
county OF state bonds. Interest on
United States bonds need not be IT.
Guided by the ordinary bond holder
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