The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-02-16
INCOME TAX IN NUT SHELL

taxpayer. The stories are based on the
revenue act of 1921.
WHO? Single persons who had net
income of $1,000 or more, or gross in
come of $4,000 or more. Married cou-
pies who had net income of $4,000 or
more, or gross income of $4,000 or
more.
WHEN? March Is, 1922, is final date
for filing returns and making first pay
mentS.
WHERE? Collector of internal rev
enue for the district in which the per
son lives, or has his principal place of
business.
HOW; Full directions on Form
l040; also the law and regulations.
WHAT: Four per cent normal tax
on taxable income up to $4,000 in ex-
cess of exemption Eight per cent nor
mai tax on balance Of taxable income.
Sur-tax from per cent 70 65 per cent
on net incomes over $4,000 for the year
1921.
In making out his income tax return
for 1921, the average taxpayer will
find considerable saving in compari-
son with the amount of tax paid on
the same income for 1920.
The exemptions provided by the rev
enue act of 1921 are 81 900 for single
persons the term including widows.
widowers, divorces, and persons sep
arated from husband and wife bv mu-
tual agrecmenD, $500 for married
persons whose net income was $4,000
or less, and $1,000 for married persons
whose net income was $1,000 or more.
Under the revenue act of 1918 the per
sonal exemption allowed a married per-
son was $4,000, regardless of the
amount of net income Vhe personal
exemption allowed married person
applies also to the head of a family,
man or woman who supports in one
household one or more relatives by
blood, marriage, or adoption.
The exemptions for derendents-a
person who receives his chief support
from the taxpayer and who is under
ls years of age or incapable of self
support because mentally or physically
detectives increased from 5000 to
$500.
The act requires that return be
filed by every single person whose net
income for 1921 was 1000 or more,
every married person whose net in
come was $4,000 or more, and by every
person-Single or married - whose
gross income was $4,000 or more.
The requirement to file return of
gross income of $4,000 or more re-
gardleSs of net income is new pro
vision. Net income is gross income
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
$1,000, or if the combined gross in
come equaled or exceeded $4,000.
The period for filing returns is from
January | to March 10, 1929. Heavy
penalties are provided for failure or
"wilIful refusal" to file return on
time.
Forms l0iOA for incomes of $4,000
and less and 1910 for incomes in ex-
cess of $4,000 may be obtained from
the Offices of collectors of internal rev
enue and branch Offices. The tax may
be paid in full at the time of filing
the return, or in four equal Install
ments, due on or before March 10, June
Is, September Is, and December Is.
No 2
Changes in the revenue law are of
material benefit to the average family
man. Under the revenue act of 1921
IA married person, living with wife or
husband, whose net income for 1921
Was $4,000 or less, is allowed a per-
s0nal exemption Of $4,000 Under the
revenue act Of 1918 the exemption al
lowed a married person was $4,000, re-
gardless of the amount of net income.
The normal tax rate is the same, 4
per cent on the first $4,000 Of net in
come above the exemptions, and s per
cent on the remaining net income
Given his personal exemption of $4,000,
plus $500 for each dependent, a mar
ried man with three children--the aver
age American family-will pay this
year on net income of $4,000 tax
of Sl2. On the same income for 1921
he would have paid tax of $50.
Every citizen and resident of the
United States must determine for him
self whether his income for 1921 was
sufficient to require that return be
filed Full instructions for making out
return are contained on the forms, a
copy of which will be sent to taxpayers
who filed a return last year Failure
to receive return, however, does not
relieve taxpayer of his obligation to
file return on time, on or before
March Is, 1922. Forms may be OBJ