Milford chronicle., 1919-02-28
THIS TELLS HOW To
FIGURE INCOME TAX
SquareIy Up to Every Individual
to Get Busy by March IS
or Suffer Penalty.

"Don't wait until the final due date,
March 10Th. for paying your Income
Tax and making your return. Avoid
the las. minute rush. Any person can
figure out his liability today as well as
he can next week. and If there is any
pont on which he needs advice he can
now get in touch with a 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
out charge every aid OF his Office and
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 10 every indi-
vidual 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-
ceived income averaging $l9.25 a 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 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 a 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, if any must make a return
on or before March 18th. And this re-
quirement does not hinge on whether
the person owes a tax.
Taxable Income.
An individual mnst 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
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, ma
chinery, fixtures, etc, used in business.
A further deduction is allowed for con- |
tributiOns to corporations operated for
religious, charitable, scientific or edu-
cational purposes or for the prevention |
Of 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-
duct any personal. living or family ex-
DCuEEg any dAAOunA GiJNAAA AoA AhARANHAAE
property or making good its exhaus-
ton for which an allowance is claimed
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-
dends Of domestic corporations are ex-
empt from normal tax when received
by the stOckhOlder.
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 per cent; on
any further taxable income the rate is
u per cent
The surtsx rates apply TO net in
come of each individual in excess Of
$1,000 The personal exemption and
the dividends are not deductible before
computing surtax In the case of re-
turns by husband and wife, the net
income of each is considered separate
ly in computing any surtax that may
be due Form 1O40 should be used for
making returns OF net income exceed
ing $1,000, and the instructions on that 3
form will show how to figure the sur
tar.
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 1918 to any
person must fle an information return a
with the Government. Blanks may be 5
secured from the Collector.
Every partnership must file return {
showing its income and deductions ana a
he name and address. of each partner
With his share Of the profits or losses v
Turing the past year. Personal service i
corporations will file similar informa-
ion for 1918. "
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