The Era-leader., 1919-03-06
This Tells HOW TO
FIGURE !NGCAE TAX
squareIy Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.

March 18th, for paying your income
Tax and making your return. AF"I"
the last minute rush. Any person can
figure out his liability today as well az
no can next week, and if there is any
noint on which he needs advice he can
now get in touch with a Revenue man.
This word of advice is from Johh l.
Fauntleroy, Collector of Internal keVe-
mo Now Orleans. who is collecting
fine Income Tax in Louisiana. Collec-
for Famtlproy is giving without charge
every aid Of his office and his enlarged
field force TO help the people get their
returns in by March 10Th.
But the Income Tax men will not
null your door-bell or your coat-talls,
according to'thc Collectors announce
ment. 1t is squarcly up to every lhdl-
vidual to figure out his own case ana
TO get busy if he comes within the
scope of the new Revenue law.
Did You Earn MS MUCH!
Every unmarried person who recelV-
cd income averaging $19.2o week
during 1918 and every married couple
who Jointly received income averaging
$3.50 a week should secure at once
from the nearest Deputy Collector or
the nearest bank a blank Form l04O 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-
ricd person who had net income OF
81 900 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. If any must make a return
on or before March 10Th. And this re-
Q,lirement 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
whatever kind and in whatever form
paid, or from professions, vocntions,
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'
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 fol-
religious charitable, scientific or edu
cational purposes or for the prevention
of cruelty to children or animals to ar
amount not exceeding ID per cent OF
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 improving
property, or any expense of restoring
property or making good its eXhaus
ton for which an allowance is claimed
under depreciation.
Figuring the Tax
Before figuring the normal tax thu
dividends are deducted as credits from
net income, together with the persona
exemption. AS in previous years, divi
dends of domestic corporations are ex
rmpi from normal tax when received
by he stakeholder.
The normal tax rates for citizen!
and residents are as follows: On th'
first $4,000 Of net income in excess o
the credits the rate is per cent; OF
pny further taxable income the rate il
Il per cent.
The surtaX rates apply to net In
rome of each individual in excess o
$4,000. The personal exemption ant
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 fo
making returns of net income exceed
lr,, $1,000, and the instructions on tha
form will show how to figure the SUI
tax
Business House Returns.
=, Employers and others who pal
t wages, salaries, rents, interest or sin
'nr determinable gains in an amoun
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.
! Every partnership must file retur
showing it's income and deductions an
the name and address of each partne
: with his share Of tine profits or losse
during the past year. Personal servic
corporations will file similar informs
tion for 1918.
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