The Leon reporter. (Leon, Iowa) 1887-1930, 1920-01-15
Tax Oh Incomes is Coming Down in
1919 Returns,

With the opening of the new year
comes the first date for the filing
of income tax returns.
Heavy penalties are imposed for
those who fail to file their returns
between Jan. l and March Is. The
full tax may be paid in full at the
time Of filing the return or it it is
desired to NIKE the payments in four
sta!lments the first must be paid
IS, the third by Sept. IS, and the
fourth by Dec. Is. The period for
which the income tax is assessed is
the calendar year of 1919.
The ordinary taxpayer will not be
obliged to pay as much as last year
although the rate is still far greater
than pre-War rates.
single persons and $4,000 for mar
ried persons and heads of families
remain the same as for 1918. The
normal rate for 1918 is per cent on
the first $4,000 of net income above
the exemptions and per cent on the
remaining net income. Last year
the normal rate was 6 and - per
cent, respectively.
year. They started with 16 per cent
on the amount of net income be-
tween $4,000 and $4,000 and in
creased by steps of l per cent for
each $4,000 of net income up to and
including As per cent on net income
in excess of $4,000, and not over
100000. The surtax on net in
comes ) o. over $4,000 and not over
incomes over 100000 and not over
100000, it is 60 per cent; on net
incomes over 100000 and not over
$500, 900, it is Sc per cent; on net
incomes over 100000 and not over
81 100000, it is Ga per cent; and on
net incomes over $1,0O0,000, it is IS
per cent.
Besides the exemption of $1,000
for single persons and $4,000 for
married there is an additional ex-
emption of $500 for each dependent
under 18 years of age.
Every person whose income equal
ed or exceeded 1000 for single per-
sons or $4,000 for those who are
married must file return regard
less OF whether the income is large
enough to require the payment OF
the tax.
Forms of making returns will be
available at offices of collectors of
international revenue and deputy
collectors postoffces and banks.
What is known as farm 104OA. is
for use of those with incomes of
Po,UUU VI 1885,. WulIo lOfn lU4U is
for those with larger incomes.
Taxpayers must report under gross
income salaries including bonuses,
interest received on notes and from
bank deposits; dividends on stocks,
profits from sale of property. profits
from stock market transactions in
come from fiduciaries partner
nership profits, and royalties from
mines, oil wells, patents, copyrights
and franchises.
The following table shows the
amount of income tax the average
married person pay for the calendar
year 1919, based on the reduction
in the normal tax
The rates of the current year are
to be 4 per cent on the first $4,000
of net income above the exemption,
which is $4,000 for married persons
and $500 additional for each and
$1,000 for, single persons and 81
per cent on the net income in excess
OF 81 1000, minus the exemptions.
The rates paid on the 1913 income
were 6 per cent and ~ per cent re-
spectively,; surtaxes remain the
same as last year. On the basis of
the reduced normal tax the married
person will pay as follows:
(NOTE--1st Column: Net income,
$4,000 exemption; End Column: Sur
tax. Bird Column: Tax to be paid in
on income for calendar wear 141Q).