Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1920-01-22
TAX ON INCOMES is COMING
DOWN IN 1919 RETURNS

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Washington, D. c.. Dec. 2s.-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 be-
tween Jan. and March Is. The full
tax may be paid in full at the time of
filing the returns if it is desired to
make the payments in four INSTALL
ments the first must be paid by March
Is, the second by June Is, the third
by Sept. Is. and the fourth by Dec.
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 as much as last year,
although the rate still is far greater
than pre-war rates.
Exemptions Remain Same.
The exemptions of $1,000 for single
persons and $1,000 for married per-
sons and heads of families remain the
same as for 1918. The normal rate
for 1918 is q per cent on the first
$4,000 of net income above the ex-
emptions and per cent on the re-
naming net income. Last year the
normal rate was 6 and IL per cent.
respectively.
SurtaN rates 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 $4,000
OF net income up to and including 4S
per cent on net income in excess of
$4,000, and not over 100000. The
surtaX on net incomes over 100000
and not over $150,000, is So per cent;
on net incomes over $150,OO0 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 in
comes over 100000 and not over
$5O0,000, it is 63 per cent; on net in
comes over $5OO,OOO and not over
$1,000,O00, it is Ga per cent; and. on
net incomes over $1,0OO,OOO, it is 65
per cent.
Exemptions For Dependents.
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 Is
years Of age.
Every person whose income equaled
or exceeded $1,000. for single per-
sons, q $4,000 for those who are mar mar 2
ried, 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 in
tetnal revenue and deputy collectors,
postoffices, and banks. What is
known as form 1910 A. is for use of
those with incomes of $4,000 or less,
while form 1O4O 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 the sale Of property,
profits from stock market transact
ions, income from fiduciaries, partner
ship profits, and royalties from mines
or oil wells, patents, copyrights, and
franchises.
Basis Of the Payment.
The rates for the current year are
to be 4per cent on the first 1000 of
net income above the exemption which
is $1,000 for married persons and $500
additional for each child and $1,000
for single persons, and per cent on
the net income in excess of $4,000,
minus the exemptions.
The rates paid on the 1918 income
were 6 per cent and 12 per cent re-
spectively. Surtaxes remain the same
as last year.
WATER.
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