Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1922-01-20
Changes in Income Tax Law

trict of North Carolina.
Forms 1040A, revised and sim
plified, for filing individual re-
turns of income for the calendar
year 1921 of So, 600 and less will
be available Wednesday, January
| Is at the Office of Collector Of
Internal Revenue, Raleigh,
in. G., and the following branch
offices: Winston Salem, Ashe-
vile, Charlotte, Wilmington,
Washington, Rocky Mount
Greensboro, Durham, Reidsville
and Statesville. A copy will be
mailed to taxpayers who last
year filed a return, but failure to
receive the form does not relieve
a taxpayer of his obligation to
file a return on time-on or be-
fore March Is, 1922. The form
has been reduced from six to
four pages, two Of which are de-
voted to instructions which should
be carefully read by the taxpay-
er before filling in the blanks. A
study of these instructions will
greatly lessen difficulties hereto
fore encountered in correctly
making out the returns. .t
On page l, under the head of
Income" are spaces for report
ing the following items: salaries,
wages, commissions, etc.; income
from partnerships, fduciaries,
etc.; rents and royalties; profit
Tor loss) from business or pro-
fession; profit Tor loss) from sale
of real estate; profit Tor loss)
from sale Of stocks, bonds, etc.,
and other income. Beneath are
spaces for entering deductions,
such as interest and taxes paid
during the year; losses oy fire,
storm, shipwreck, or other cas-
ualty or by theft, contributions,
bad debts, etc.
On page two are spaces for en-.
tering explanations of the various
items; j. e., the total amount of
incomesfrom business or profes-
sion, with dissertation ("groce-
ry" retail clotbEg", drug
store" Laundry" 'doctor"
lawyer, ''farmer") from
rents. and royalties, sale. of pro-
perty, etc.
Returns are required of every
single person and every married
person not living with husband
or wife, whose net income for
1921 was $1,000 or more, and of
every married person living with
husband or wife whose net in
come was $4,000 or more. If the
combined net income of husband,
wife and dependent minor child
ren equalled or exceeded $4,000,
or if the combined gross income
lof husband, wife and dependent
minor children equalled or ex.
ceeded $4,000, all such income
must be reported on a joint re-
turn or in seperate returns OF
husband and wife,. If single
and and the net income including
that of dependent minors, if any,
equalled or exceeded $1,000, or
/ if the gross income equalled or
exceeded SIS, 900, a return must
be filed. A minor, however,
having a net income of ST, 600 or
So, 00Q, according to marital stat
US or a gross income of $5, 600,
must file a return. The require
ment to file a return of gross
income, regardless of the amount
of net income, upon which the
tax is assessed is a new provision.
Met income" is gross income
less certain deductions which are
explained on the form.
Under each of the above con-
ditions, a return must be filed
even though no tax is due. The
exemptions are $1,000 for. single
persons and married persons not
living with husband or wife,
$25OO for married persons living
with husband or wife whose net
income for 1921 was $4,000 or less
and $1,000 for such persons
whose net income was more than
So, 600. The exemptions for de-
pendents "a person under eigh-
teel years of age or mentally or
physically defective" has been