The Coconino sun., 1922-02-10
INFORMATION ABOUT
 INCOME TAX RETURNS
 BY ALFRED FRANKLIN

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 The following statement is issue' by Alfred Franklin, collector of inter
 nal revenue, district of Arizona.
 Form 1040A, revised and simplified for filing individual returns of income for the calendar year 1921 of $5,O0' and less will be available Wednesday January IS, at the office of collector o1 internal revenue, Phoenix, Arizona. 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 obligations to tlle a return on time on or before March 15, 1922. The form has been reduced from six to four pages, two of which are devoted to instructions which should be carefully read by the tax payer before filling in the blanks. A study of these instructions will great ly lessen difficulties heretofore en- countered in correct making out of the returns.
 On page 1, under the head of "In- come," are spaces for reporting the following items: Salaries, wages, commissions, etc., income from part nerships, fiduciaries, etc.; rents and royalties; profit Cor loss) from busi- ness or profession; profit Cor loss) from the sale of real estate; profit Cor loss) from the sale of stocks, bonds, etc., and other income. Beneath are spaces for entering deductions, such as interest and taxes paid during the year; losses by fire, storm, ship wreck, or other casualty or by theft, contributions, bad debts, etc.
 Explanations
 On page 2 are spaces for entering explanations of the various items; i. e. the total amount of income from busi- ness or profession, with description ("grocery," "retail clothing" "drug store" laundry" doctor" lawyer" "farmer,") from rents and royalties, sale of property, etc.
 Returns are required on every sim gle 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 income was S2,000 or more. If the combined net income of husband, wife and dependent minor children equalled or exceeded $2,00O, or if the combined gross income of husband, wife and de- pendent minor children equalled or ex- ceeded $5,000, all such income must be reported on a joint return or in separate returns of husband and wife. If single and the net income includ- ing that of dependent minors, if any, equalled or exceeded $1 1,000, or if the gross income equalled or exceeded $5,- 900 return must be filed. A minor, however, having a net income of S1,- 900 or $2,000, according to marital status or gross income of $5,000, must file return. The requirements to file return of gross income, re- gardless 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.
 Exemptions
 Under each of the above conditions, a return must be filed even though no tax is due. The exemptions are $1,000 for single persons and married per sons not living with husband or wife, $2,500 for married presons living with husband or wife whose net income for 1921 was $5,000 or less and $2,000 for such persons whose net income was not more than $5,0O0. The exemptions for dependents, person under IS years of age or mentally or physical ly defective" has been increased from $200 to $400.
 A head of a family person who actually supports in one household one or more persons closely related to him Cor her) by blood, marriage or adop- tion, is granted the same exemptions allowed married person.
 The normal tax rates are unchanged 4 per cent on the first $4,000 of net income above the exemptions and 8 per cent on the remaining net income. | The tax this year, as last, may be paid in full at the time of filing the | return, or in four equal installments, due on or before March 15, June IS, September 15, and December 15.
 Heay penalties are provided by the new revenue act for failure to file a return and pay the tax on time.
 Announcement will be made through the press of the date of release of Forms ,l040 for filing individual re- ..yr- 9f income tax of more than s5,- V f