Connecticut western news., 1921-01-27
MUST PAY INCOME ." TAX ON BONUSES Tax May Be Paid in Full or Divided Into Four In-
 stallmenes

income for 1920 was less than $1, 1,00o and married persons living with husband or wife whose net income was less than $2,000 are exempt from the requirement to file an in come tax return.
 The obligation to consider his own case and to file an income tax return on time, if one is due, is laid square ly on the shoulders of every resi- dent of the United States. Guess work is barred. The returns are sworn statements, and acuracy is essential. Salaried persons and waee earners must ascertain the actual compensation received. Bonuses, shares in the profits of a business, values of quarters and board fur nished by an employer, and other items of compensation for services must be included.
 Gross and Net Income
 Returns must show both gross and net income. Gross income in come includes practically every dol- lar received by the taxpayer during the year 1920. The net income is determined by subtracting from gross income certain deductions specified by the revenue law, and fully explained in instructions on forms 104o-A and 1040 for filing re- turns. rf .r
 Business expenses are the prinai- pal allowable deductions in compu- ting net income. The law specif- cally prohibits the deduction of household and living expenses. Typi- cal deductible business expenses are for salaries, labor, cost of merchan- disc, raw materials and supplies. rent, repairs, light, power, delivery, selling cost, advertising, and insur- ance. Doctors, lawyers, and like pro- fessional men may deduct from their gross income dues paid to profession al societies and subscriptions to, pre- fessional journals, rent paid for officess amounts paid for light, fuel. | water, and telephone used, in such
 offices, and the wages paid to office assistants.
 \ When Due
 This year, as last, the tax may be paid in full at the time offfiling 'the
 return, on or before March 15, 1921,
 or in four installments, the; first of
 which is due on or before March 15
 the second on or before June 15, the third on or before September 15
 and the fourth on orSbefore Decem- Der 15.
 The return must be filed with thu collector of internal revenue for thu district in which the taxpayer lives Heavy penalties are provided fol faifure or willful refusal to make 1 return and pay the tax when due. A manfred person living with hus band and wife can not clami an ad , ditional S2,000 exemption as tn, l head of family. His or her exemp l ton is based upon the marital, sta , tus, irrespective of the support O! , others living in the same household The additional $200 credit for depen ! dents does not apply to the husbanC or wife of a taxpayer. For example if a married man supports a father who is incapable of self-support, hs is entitled to the $200 credit fol such person. If through force oi , circumstances he supports his wife away from home he is entitled to the $2,000 exemption allowed a married person, but not to $200 credit for 6 dependent.
 A son who has left home but who
 sends his mother more than one-hali
 the sum required for her support is
 entitled to the $200 credit, provided I AI,a rR
 Otherwise, the amount must be con-
 sidered as a gift, and, therefore, the
 credit is not allowed. A son living
 at home and supporting his father,
 mother, or other relative may claim
 the $2,000 exemption allowed the
 head of a family, but not the $200
 credit unless such relative is under
 IS years of age or incapable of self
 support.