The Belding banner-news., 1922-02-15
INFORMATION ON
A TOPIC WHICH
CONCERNS YOU
INCOME TAX FACTS THAT WILL
BE OF ASSISTANCE IN
FILING YOUR RETURN

In making out his income tax re-
turn for 1921, the average taxpayer
will find a considerable saving in
comparison with the amount of tax
paid on the same income for 1920.
The exemptions provided by the
revenue act of 1921 are 81 900 for
single persons (the term including
widows, widowers, Divorces, and
persons separated from husband and
wife by mutual agreement), $1,000
fer married persons whose net in
come was $4,000 or less, and $4,000
for married persons whose net in
come was $4,000 or more. Under the
revenue act Of 1918 the personal e.-
emption allowed a married person
was $4,000, regardless of the amount
Of net income. The personal exemp-
tion allowed a married person applies
also to the head of family, man or
woman who supports in one household
one or more relaiiges by blood, mar
riage or adoption.
The exemptions for dependents
person who receives MS chief sup
port from the taxpayer and who is
under 18 years of age or incapable
of self support because mentally or
physically defective--in increased
from 5000 to $400.
The act requires that a return be
filed by every single person whose
net income for 1921 was 81 900 or
more, every married person whose
net income was $4,000 or more, and
by every person-single or married.
whose gross income was $4,000 or
more.
The requirement to file a return
Of gross income of $4,000 or more
regardless of net income is new
provision. Net income is gross in
come less certain specified deductions
for business expenses, losses. bad
debts, etc, which are fully explained
on the forms.
Returns must be filed by married
couples whose combined net income
! for 1921, including that of dependent
minor children, equaled or exceeded
/ $4,000, or if combined gross income
/ equaled or exceeded $4,000.
The period for filling returns is
/ from January / to March Is, 1922.
Heavy penalties are provided for
! failure or "wilful REFUSAL to file a
return on time.
Changes in the revenue law are
, of material benefit to the average
family man. Under the nevenue act
Of 1921 a married person, living with
wife or husband, whose net income
for 1921 was $4,000 or less, is al
lowed a personal exemption of $4,000
Under the revenue act of 1918 the
exemption allowed a married person
was $4,000, regardless of the amount
of net income.
The normal tax rate is the same,
4 per cent on the first $4,000 of net
income above the exemptions, and 8
per cent on the remaining net in
come. Given his personal exemption
of $4,000 plus 400 for each depend
ent, married man with three chill
dren-the average American family
will pay this year on a net income
of $4,000 a tax Of $12. On the same
income for 1921 he would have paid
tax of $50.
Every citizen and resident of the
United States must determine for
himself whether his income for 1921
was sufficient to require that re-
turn be filed Full Instruction. for
making out return are contained on
the forms, a copy of which will be
sent to taxpayers who filed a retu-
last year Failure to receive a re-
turn, however, does not relieve tax
payer of his obligation to file return
on time, on or before March Is, 1922
Forms may be obtained from cdllec-
tors Of internal revenue and branch
Offices. The tax may be paid in full
lat the time of filing the return, OF
in four equal installments, due or
or before March 18th, June Is, Sep.
tember 15 and December Is.