The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1921-12-20
Questions Relating to New Income
Tax Law Answered For Average Man

Assuming that he has no dependents.
his tax, if he were allowed only the
$4,000 exemption, would be $120.40.
Under the benefits of the above pro-
vision however, his tax is S110, 4 per
cen on the amount of his taxable in
come of $4,000, or 800, plus the
amount by which his net income ex-
ceeds $4,000.
Many inquiries are received rela-
tive to the surtaX rates.
Taxpayers in the preparation of
their returns should be careful to note
that the surtaX rates for the calendar
year 1921 remain unchanged. The sur
tax rates on incomes for 1921 range
from l per cent on the amount of net
income between $4,000 and $4,000 to
65 per cent on the amount of net
come in excess of 81, 900, 900. For the
calendar year 1922 and each calendar
year thereafter, the surtaX ranges
from 1 per cent on the amount of net
income between $4,000 and $4,000 to
so per cent by which the amount OF
net income exceeds $780, 600.
Returns Are Required
Returns are required to every sin
gle person whose net income for 1921
was $1,000 or over, eevry married
person living with husband or wife
whose net income vas $1,000, and ev-
cry married person living with hus-
band or wife whose net income was
$4,000 or over. Every person whose
gross income for the year was $4,000
or over must make a return regard
less of the amount of net income. This
requirement was not contained in the
revenue act of 1918. Every married
couple living together must make a
return, either separate or joint as de-
sired, if their aggregate net income
was $4,000 or over, or if their aggre-
gate gross income was $4,000 or more.
Gross income includes practically
every dollar the taxpayer received
the year 1921. Net income is
gross income less the exemptions and
deductions specifically provided for
by the act.
Period For Filing Returns
The period for filing returns is from
January l to March Is. 1922, when
made on the calendar year basis. If
the taxpayer makes his returns on
the fiscal year basis, the return must
be filed on or before the fifteenth day
the third month following the close
of the fiscal year. Nonresident aliens
must make return on or before the
fifteenth day of the sixth month fol
the close of the fiscal year, or,
if the return is made on a calendar
year basis or OF before June Is.
The Commissioner of Internal Re
venue may grant a reasonable extern
sion of time for filing returns Except
in the case of taxpayers who are
abroad, no such extension shall be for
a period of more than six months.
The return must be filed with the col
of internal revenue for the dis
trict in which the taxpayer lives or
has his principal place of business.
If the taxpayer has no legal residence
the return must be filed with the col
lector of internal revenue at Balti-
more
May Pay In Installments
This year as last, the tax may be
paid in full at the time of filing the
or in four quarterly install
ments, due on or before March Is,
June Is, September Is and December
Is. If any installment is not paid
when due, the whole amount becomes
due and payable upon notice and de-
mand from the collector. The penal
Ly for failure to file a return or pay
the tax within the time prescribed is