Connecticut western news., 1921-12-29
INCOME TAX PERIOD
 NOW APPROACHING Ice Cream and Other Taxes Removed on January
 First

payers are duNlSeu lO lOS0 no tune m the compilation of their accounts for the year 1921. A new and important provision of the Revenue Act of 1921 is that every person whose gross in- come for 1921 was $5,000 or over shall file a return, regardless of the amount of net income upon which the tax is assessed. Returns are re- Quired of every single person whose net income was $1,000 or over and every married person living with husband or wife whose net income was $2,000 or over. Widows and widowers and persons separated or divorced from husband or wife, are regarded as single persons.
 Net income is gross income, less certain deductions for business cX- penses, losses, taxes, etc. Gross in- come includes practically all income received by the taxpayer during the year; in the case of the wage earner, salaries, wages, bonuses and com missions; in the case of professional men, all amounts received for pro- fessional services; in the case of far mers all profits from the sale of farm products, and rental or sale of land.
 Enactment of new revenue legis- lation has brought to the offices of Collectors of Internal Revenue flood of inquiries regarding various provisions. The Revenue Act of 1921 became effective November 23,
 1921, unless otherwise provided for"
 ''To avoid error in the preparation of their returns and later difficulties with the Bureau of Internal Revenue, taxpayers are advised to carefully note the changes and when they be- come effective.
 "The excess profits tax is repealed as of January l, 1922. The rates for 1921 are unchanged.
 "The surtax rates for the calendar year 1921 are unchanged, and range from 1 per cent on the amount of net income between $5,0OO and $6,000 to 65 per cent on the amount of net income in excess of $1,00O, ,000 For the calendar year 1922 the sur tax rates range from 1 per cent on the amount of net income between $G,000 and $10,00O to 5U per cent on the amount by which the net in- come exceeds $2OO,OOO.
 "The exemption allowed for a de- pendent is increased from $2OO to $400. Married persons living with husband or wife and heads of fami- 1 lies are allowed a personal exemption of $2,500 (instead of $2,00O) unless l the net income is in excess of $5,00O, 1 in which case the personal exemp- tion is only $2,000. The Act pro- | vides that in no case shall the reduc- tion of the personal exemption from $2,500 to $2,000 operate to increase the tax which would be payable if | the exemption were $2,50O by more than the amount of the net income | in excess of $5,000. This is to over come the disparity in the case of two 1 taxpayers, one of whom is just within | the lower $2,000 exemption and the | other just within the higher $2,5O0 | exemption.
 Single persons, and married per sons not living with husband or wife, are allowed an exemption of $1 ,000. Nonresident aliens are allowed a single personal exemption of $1,O0O. Persons having gross incomes for 1921 of $5,000 or over are required to make a return, regardless of the amount of net income.
 "Provision is made for the repeal as of January 1, 1922 of the tax on stockholders of a personal service corporation as such. After that date such corporations are to be taxed in the same manner as other corporations.
 "The income tax on corporations for the calendar year 1922 and there after is increased from 10 to 12@ per cent. The $2,OOO exemption allowed corporations is to be granted only to those corporations whose net income is $25,0O0 or less.
 Many persons arc under the i'm prcssion that the taxes on ice cream, soft drinks, etc, monthly returns of which are required, have been repeal { ed with the enactment of the new act These taxes remain in force until the end of the calendar year 1921.
 | eXccpt that after Janu- ary 1, 1922, there will be no tax where admission is 10 cents or less. January 1, 1922 the follow ing taxes are also abolished: on mGsi- cal instruments, sporting goods, chewing gum, portable electric fans, thermos bottles, fur articles, pleas ; ure boats and pleasure canoes, Gun less sold for more than $100), toilet medicines and numerous ] articles of apparel. I
 "On and after January 1, 1922 the E tax on various works of art is re- 1uced from 10 per cent to per cent, the tax on candy from per cent to 3 per cent and the tax on carpets, rugs, trunks, valises, purses, fans,
 Continued from page 4)