The Glenwood post., 1920-01-31
INCOME TAX =
MUST Be PAID !
BY MARCH Is


tax return before March Is.
This, in effect, is the warning issued
to Coloradoans by the local Office Of
the United States internal revenue de-
pArtment.
Ignorance of the law is not accepted
~ an excuse for failure to file . re-
turn and Uncle Sam is certain to catch
anyone who attempts to evade the law,
= because all employers, under the terms
Of the federal revenue act, must file
the names of all employees who re-
caye $1,000 or more during 1919.
Failure to file report is punish
able by . fine of not more than $1,000
and the penalty for filing false re-
turn il fine not exceeding $4,000,
Jail term not to exceed one year, and
in addition, so per cent of the tax
sought to be evaded.
Officials of the internal revenue de-
partment explain that the filing of a
report does not necessarily imply the
payment of a tax, and that if a tax
is due it may be paid either in full at
the time Of filing return, or in four
installments. If person elects to pay
in installments, he or she must pay
one-fourth Of the amount on or before
March Is; one-fourth on or before June
Is; one-fourth on or before September
Is, and the final installment on or be-
fore Dec. Is.
Those required to make a return are:
A single person having a net income
of $1,000 or more year, and
A. married person whose yearly net
income is $4,000 or more.
A single person is allowed a person
al exemption of $1,000, SO that, II his
income for the twelve-month period
is just that amountshe need not pay
return.
A. married person y entitled to
personal exemption " w. 900, if living
with husband or wife, but married
person who is not living with husband
or wife, is allowed Jan exemption CT
only $1,000; and husband and wife
living together are permitted only one
personal exemption Of $4,000.
Under the terms Of the law the head
of family is allowed an additional
exemption of 5000 for each dependent
child or other dependent, providing
such dependent is either under the age
of 10 years, or is physically or mental
ly incapacitated.
The word dependent, however
means just exactly that. A father may
claim exemption for every child under
10 years, but il one Of the children re-
ceives sufficient income from another
source to provide for his support, the
claim will not be allowed, for, although
the child is legally dependent upon
him, he is, in fact, financially indie
pendent Of him.
On the other hand, son who is
living away from home but who sends
to his mother more than half of her
support, with sufficient regularity that
she may depend upon it, may claim the
5000 exemption as to her, provided the
mother has become sufficiently aged to
be, without doubt, physically unable
to support herself. Otherwise, the
amount contributed must Be consider
ed as a gift, not deductable as an ex-
pense, and therefore not emitting him
to an additional exemption.
The amount of the tax required is
per cent of the taxable income with
respect to incomes which aggregate
not more than $4,000 after deductiug
the personal exemption; and 8 per cent
of the taxable income on amounts ex-
ceeding $4,000 after the personal ex-
emption has been deducted. On in
comes which exceed $4,000, however,
tho 8 per cent tax 10 not levied on the
entire amount. For instance, u man
having . taxable income Of 100000
would pay per cent tax on $4,000
of that amount, and an 8 per cent tax
on the remaining 10000.
On incomes exceeding 5000, the law
provides for surtax. This surtax is
arranged on a graduated scale so that
the larger the income the larger is
the percentage of tax levied. The sur
tax starts with per cent on incomes
between 5000 and 5000, and in
creases per cent on cash $4,000 addi-
tionAl.
For the pusposs Of enabling persons
to determine whether their income ID
sabjsst TO . TAI, and, II Il II, the