Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-01-12
REPORTS MUST Be
MADE ON INCOME
TAX BY MARCH IS

The local Internal revenue office
has not received the necessary blanks
for making out income tax returns,
but they are expected most any day,
AS soon as they arrive due notice will
be given. In the meantime those who
are required to file returns under the
law should understand that March 10
is the date on which all returns must
be in and that heavy penalties are
imposed for those who fail to render
reports by the time stated.
The income tax may be paid in full
at the time of filing the return or if it
is desired TO make the payments in
four installments, the first must be
paid by March Is, the second by June
Is, the third by September Is, and the
fourth by December 10 The period
for which the income tax is assessed is
the calendar year of 1919.
The ordinary taxpayer will not be
obliged to pay quite as much as last
year, although the rate still is far
greater than pre-war rates.
The exemptions of 81 900 for single
persons and $4,000 for married per-
sons 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 ex-
emptions and s per cent on the re-
naming net income. Last year the
normal rate was and II per cent
respectively.
Surtax ratios are the same as last
Year They started with 16 per cent
on the amount of net income between
$4,000 and $4,000 and increased by
steps of / per cent for each 81 900 Of
fA
per cent on net income in excess of
$685. 600 and not over 100000. The
surtaX on net incomes over 100000
and not over $4,000 is az per cent;
on net incomes over $3.50, 900 and not
over 100000 it is sc per cent; on
net incomes over 100000 and not
over 100000 it is 60 per cent; on
net incomes over $500, 900 and not
over 100000 it is So per cent; on net
incomes over 100000 and not over
$1,000,00O it is "a per cent; and on
net incomes over $1,000, 900 it is IS
per cent.
Besides the exemption of 81 900 for
single persons and $4,000 for married
there is an additional exemption of
$500 for each dependent under IS
years of age.
Every person whose income equaled
or exceeded $1,000 for single persons
or $4,000 for those who are married.
must file return regardless of
whether the income is large enough to
require the payment of the tax.
Forms for making returns will be
available at offices of collectors of
internal revenue and deputy collec-
tors, postoffices and banks. What is
known as form 1910 A is for use Of
those with incomes of $4,000 or less,
while form 1910 is for those with
larger incomes.
Taxpayers must report under gross
incomes salaries, including bonuses,
interest received on notes and from
bank deposits, dividends or stocks,
profits from the sale of property,
profits from stock market transac-
tons. income from fiduciaries, part
nership profits and Royalties from
mines, oil wells, patents, copyrights
and franchises.
Items which are not taxable and
need not he included in the return are
property received nv gift or inherit
lance, proceeds of life insurance poll
cies, returns or premiums on life in
surance. endowment or annuity con-
tr@cts, amounts received through ac-
cident or health insurance or under
worllmen's compensation acts, inter-
est on obligations of anv state or any
city. town. county or village, interest
on Liberty bonds under par value. of
$1,000, interest on securities issued
under the federal farm loan act, and
amounts received during the war by
persons in the active military or naval
forces up to $4,000 in addition to per-
sonal exemption.
Deduction from gross income in de-
termining net income include all bust
ness expenses in tho conduct of a bust
ness. trade or profession, a reasonable
allowance is made for depreciation of
business property.
Contributions or gifts to charitable
religious or educational societies NAV
be deducted to an amount not ex-
ceeding Is per cent of the taxpayers
income.
The following table shows the
amount OF income tax the average
married person must pay for the cal
endar year 1919 based on the reduc-
ton in the normal tax. The rates for
the current wear are to be four per
cent on the first $4,000 of net income
above the exemption. which is s.. 600
for married persons and $500 for each
child. and 81 900 for single persons.
and eight ner cent net income in ex-
cess of $4,000 minus the exemptions.
The rates paid on the 1918 income
were six per cent and 10 rer cent, re-
spectively. Sur-taXes remain the same
as last year On the basis of the re-
duced normal tax the married person
will nay as follows
% Net income $4,000 exemption