The Press., 1919-03-06
THIS TELLS HOW 10
 FIGURE INCOME TAX
SquareIy Up to Every IneNIdual to Get Busy by March 15
 or Suffer Penalty.


 March 10th. for paying your Income Tax and making your return. Avoid the last minute rush. Any person can figure out his liability today SIS well as he can next week. and if There is any point on which he needs advice he can now get in touch with q Revenue man."
 This word of advice is from James J. Walsh, Collector of Internal EeNe nue, Hartford, Conn, who is collect ing the Income Tax in Connecticut and Rhode Island. Collector Walsh is siy- ing without charge every aid of his of ice 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-hell or your coar-rails, according to the Collectors announce ment It is squsreiy up 10 every indi- viduaI 10 figure our his own case and to get busy if he comes wirhim The scope of the new Revenue law.
 Did You Earn This Much?
 Every unmarried person Nh" re ceiyed income ayera ging S19.2l week during 1918 and every married couple who jointly received income averaging S3S.50 a week should secure ar once from the nearest Deputy Collector or the nearest bank a blank Form 1040 \. That form contains the information he will need 10 enable him to figure his correct net income and any ra1 that he ewes the Government.
 Ia, ried person who had 9 ner income of s1.000 or over and every married per son whose net income was S2.oo0 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 quirement does not hinge on whether sTx person owes ta1.
 Taxable Income.
 An individual must include GneteN 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 ar from professions, vacations. business. sales or dealings in 4roperEy of sll kinds, interest, rent, dividends or profits derived from any source whatever. Very few items of income are exempt.
 Deductions include ordinary and nec 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 aScerGained to be worth less and depreciation on buildings, ma chinery, fixtures, etc, used in business. A further deduction is allowed for con tributions to corporat tions operated for religious, charitable. scientific or edu- cational purposes or for the prevention of cruelty to children or animals to an amount not exceeding 13 per cent Of the taxpayers net income as computed without the benefit of the contribution deSuction. .--.-..-..
 The taxpayer is not allowed to de duct any personal, living or family ex- pense, any amount spent for improving property or making good it's exhaus- tion for which an allowance is claimed under depreciation.
 Figuring the Tax
 Before figuring rhe normal tax the dividends are deducted as credits from net income, together with rhe personal exemption. As in previous years. ,diyi- dends of domestic corporations are qex- empt from normal tax when received by the stockholder.
 The normal tax rates for citizens and residents are as follows: On the nrst 5000 of net income in excess of the credits the rate is 6 per cent on sny further taxable income the rate is ! F per cent. The surtax rates apply to net in | come of each individual in excess of | s50O0 The personal exemption and | the dividends are not deductihle before i computing surtaS. 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 | bs due Form 1040 should be used for | making returns of net income exceed ing S5,OO0, and the instructions on that form will show how to figure the sur tax.
 Business House Returns. Employers and others who paid Il wages, salaries, rents. interest or sim liar determinabls gains in an amount of S1.oO0 or over during 1918 to any person must file an information return with the Government Blanks may be secured from the Collector
 Every partnership must file q return its income and deductions and the name and address of each partner, with his share of the profits or losses during the past year. Personal service will file similar intorma- fion for 1918.