Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1919-03-14
This TELLS HOW TO I.
4 FIGURE INCOME TAX
Squarely Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.


March 10. for paying your Income Tax
and making your return. Avoid the
last minute rush. Any person can fg-
ure out his liability today as well as he
can next week, and II there Is any
point on which he needs advice he can
now get in touch with Revenue man. =
This word Of advice is being given
out by the Internal Revenue men who
are collecting the Income Tax in this
state Every aid and assistance Is
being given freely to the public En-
larged field forces are helping the peo-
pie in every way possible to get their
payments and their returns in by
March fifteenth.
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.
vldual to figure out his own case and
TO get busy II he comes within the
scope of the new Revenue. law.
Did You Earn This Mueh7
Every unmarried person who re
celved income averaging $l9.25 a weel
during 1918 and every married couple
who Jointly received income averaging
$3.50 a week should secure at once
from the nearest Deputy Collector OF
the nearest bank a blank Form 104O 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 OF
over (includlng 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-
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 OF
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 Gany source
whatever. Very few items Of income
are exempt. Ni
Deductions include ordinary and nee
essary business expenses, interest pait
or accrued on Indebtedness, taxes o.
all kinds except Federal income ant
excess profits, taxes and assessment
for local benefits, losses actually sus
tained, 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 TO
religious, charitable, scientific or edu
cational purposes or for thepreyentiol
of cruelty TO children or animals to a
amount not exceeding 10 per cent o
the taxpayers net income as'compute,
without the benefit Of the contribution
deduction. .it
The taxpayer Is not allowed to de
duct any personal, living orfamily e1
pense, any amount spent for improvln
property or any expense Of restorin
property or making good its exhau'
tlon for which an allowance is elaine
under depreciation.
Figuring the Tax.
Before figuring the normal tax III
dividends are deducted as credits fror
net income, together with the persons
exemption. AS in previous years, div
dends of domestic corporations are e'
elnpt from normal tax when receive
by the stockhOlder.
The normal tax rates for citizen
and residents are as follows: On tn
first $4,000 of net income in excess
the credits the rate is 9 per cent; o
any further taxable income the rate
l. per cent
The surtax rates apply TO net IL
come of each Individual in excess {
$1,000. The personal exemption an
the dividends are not deductible bef0r
computing surtax. In the case of n
turns by husband and wife, the net II
come of each Is considered separated
In computing any surtax that may t
due. Form 1040 should be used ft
making returns Of net income excee,
ing $4,000, and the instructions on tn;
form will show how TO figure the su
tax.
Business House Returns.
Employers and others who pa
wages, salaries, rents, interest or sir
liar determinable gains in an amour
Of $1,000 or over during 1918 to an
person must file an information retul
with the Government. Blanks may
; secured from the Collector.
Every partnership must file retuI
showing Its income and deductions ar
the name and address of each partne
with his share Of the profits or loss,
during the past year. Personal servi'
corporations will file similar inform
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