The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1920-01-27
70 INCOME TAXPAYERS
Blanks Now Ready and Retains
Should Be Made.

Should Be Made.
+ The man who pays an income tax
this year has several reasons for
which to be thankful. First. that his
income for 1919 WIS sufficient to place
lit within the taxable list; second,
that the normal rates are lower than
for 1918; and, third, that the current
revenue act is more liberal in it's
provisions than preceding acts
Prior to 1916 a distinction was
made between only two classes OF
taxpayers A man was either mar.
ried or single, and was taxed accord
ing.y. The act Of September 8, 1916.
extended the exemptionCprivileges in
one respect. Recognition was taken
CT the fact that many unmarried per-
sons In the maintenance Of house.
hold, assume the same responsible
ties as a married man. Under the 1916
act the exemptions allowed a mar
'ried person were extended to include
the "head of a family" A single man
if his net income for 1919 was $1,000
or mere must file a return, but If he
is the sole suppot OF relatives by
blood, marriage, or adoption. living
in the same house with him, and II
he exercises conrtol of household af.
fairs, he is granted an exemption or
$1,000,
Still another distinction was drawn
by the revenue act of 1917. An addi-
tional allowance of 5000 was made
for each child dependent upon its
parent, provided such child was I'M
der IS or mentally or physically de-
iective. The exemption applied only
to the father or mother who are sup.
porting a dependent child in his or
her household.
The revenue act Of 1918 extended
further the exemption privileges
The additional 5000 allowance nc.
applies to each person (other than
husband or wife) dependent upon
the taxpayer, if such person Il under
rs years of age, or incapable of self
support" Thus, fer example, ii a
man supports his mother, uncle. CT
aunt In sanitariun. he is entitled
TO the 5000 additional exemption but
il he supports his children ii home
and his wife In sanitarium he re-
ceives no additional exemption for his
wife.
Under the 1919 act deductions Tor
.losseB sustained outside OF the tax
payers regular blsine5l we're not al
lowed The merchant or professional
man who took an unfortunate flyer
in the stock market was granted no
allowance for such loss in the making
OF his Incofne-tax return. The acs-
OF 1916 allowed such losses to the
extent of gains In similar transac-
lions For example, tho taxpayer
who, such not being his regular bust
ness, made 500 in one stock tran
saction and in another loat 81 900 was
required TO report the 800 gain and
could deduct only that amount as a
loss. The 1918 act provides for the
deduction OF al losses IF incurred in
any transaction entered into for
profit. though not connected With
trade or business"
Prior 10 1917 deductions for contri
buttons TO corporations organized for
religious, charitable. scientific, or edu
cational purposes were not allowed.
Under the current act such deduc-
tions are allowed to an amount not in
excess of Is per cent OF Taxpayers net
income.
The Normal rate of tax for 1913 is
per cent on the first $4,000 or net
income and s per cent on net income
above that amount, as in 1918, the
tax may be paid in full or in four In
stal.ments, the first OF which must nc
company the filing of the return on
or before March 10, the second on or
before June Is. the third on or before
September 15, and the fourth en- or
before December Is. Forms for max
ng returns may now be obtained at
the Offices of collectors OF internal re
venue. post offices, and banks, If the
ttaxpayer's. net income for 1919 was
SIS 900 or less. he should ask for Form
1040--A II 1t was more than $4,000,
he should ask for Form 1910. The
assistance of trained revenue agents,
who Will visit every county in the
United States, is offered taxpayers in
making out their returns.
90. WDAIf-h zfiafffIicmwy hdrluuuupp