Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1920-01-06
Time TO PAY
INCOME TAX
RETURNS MUST BE MADE TO THE
GOVERNMENT NOT LATER THAN
MARCH Is
SAME EXEMPTIONS IN EFFECT
Particulars May Be Obtained from
Banks and POstoffice

With the opening of the new year
comes the first date of the filing of in
come tax returns.
Heavy penalties are imposed for all
those who fail to file their returns be-
tween January / and March 15. The
tax may be paid in full at the time of
filing the return, Or ii 1t is desired to
make the payments in four install
ments, the first must be paid by March
Is, the second by June 18th, the third
by September Is and the last one by
December 15 The period for which
the income tax is assessed is for the
calendar year of 1919.
The ordinary taxpayer will not be
obliged to pay quite as much as last
year although the rate is still far
greater than pre-war rates.
The exemption 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 four percent on the first
81 900 of net income above the exemp-
tions and percent on the remaining
net income. Last year the rate was
and s percent, respectively.
Surtax ratios are the same as last
year They started at 16 percent on
the amount of net income between
IS 900 and $4,000 and increased by
steps of one percent for each $4,000 of
net income up to and including AS per-
cent on net income in excess of $685.
600 and not over 100000. The sur
tax on $150,000 is SO percent; on net
incomes over $150,000 and not over
100000 it is Sc percent; on net in
comes over S250,000 and not over $780,
600 il is so percent; on net incomes
over 100000 and not over $4,000 it
is SO percent; on net incomes over
S500000 and not over $1,000 600 II is
GA percent and on net incomes over
81 900 900 it is 65 percent.
Besides the exemption of $1,000 for
single persons and $4,000 for married,
there is an additional exemption OF
5000 for each dependent under 1S
years of age.
Every person whose income equaled
or exceeded 81 900 for single persons
or $4,000 for those who are married,
must file a return, regardless OF
whether the income is large enough
to require the payment of tax.
Forms for making returns will be
available at offices of collectors OF in
ternal revenue and deputy collectors,
postoffices and banks. What is now
known as Form 1040A is for use of
those with incomes of $4,000. or less
while Form 1910 is for those with in
comes over $4,000.
Taxpayers must report under gross
income salaries, including bonuses,
interest received on notes and from
bank deposits. dividends or stocks;
profits from the sale of property. prof
it's from stock, market transactions,
incomes from fduciaries, partnership
profits and royalties from mines. oil
wells patents, copyrights and fran
chises.
Items which are not taxable and do
not need to be included in the return
are properties received by gift or in
heritance proceeds of life insurance
policies, returns of premiums ON life
insurance, endowment or annuity con-
tracts, amounts received through ac-
cident or health insurance or under
workmen's compensation acts, inter
est on obligations of any state or any
city, town or village or county and
interest on liberty bonds to the par
value of $4,000 Interest on securf-
ties under the federal farm loan act.
and amounts received during the war
by persons in active military or naval
forces up to S3.500, in addition to the
personal exemption.
Under the income tax act the en-
| ployer is required to make report OF
i all persons in his employ whose in
4 comes are subject to tax.