Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-03-01
MANY EXEMPTION.
CLAIMS ARE NOT
FOUNDED ON LAW
Internal Revenue office
Complies Set of income
Tax Exemptions Which
Are Allowed BY Rules.

Compensation for personal serV'
ices in the form of salaries, wages,
commissions, fees tips, bonuses ana
pensions form the principal item in
the returns of millions of taNpay-
ers. AS a general rule, all such in
come is subject to tax. However,
there are exceptions with which the
taxpayers in the interests of self as
we'll as the government, should
familiarize himself, local officers o.
the internal revenue office declared
yesterday.
Salaries paid to its officers and
employees by Il state or "poiltica'
subdivision thereof Getty, town,
county or hamlet) are exempt IRON
taxation, The reason for this Is
that the federal government does
not tax such activities of a state.
Fees received by a notary public
commissioned by a state are not
taxable, neither are fees paid jurors
Inv a state or political Subdivisions
thereof, Witness fees in law suits,
however, even though subpocnac .
Inv states attorney are net con5ld-
cred employees of the state ana FEE
received by them are subject to Ia.
alton.
The commissions of a receive
amounted by state, county cr mum.
.cinal court are not taxable. INC
commissions of an administrator Oh
executor are taxable because theE
are not paid by state or polllIcl'
subdivision, but out OF the esIaN'
of the deceased.
Salaries Of federal officers and
employees, including those OF the
territories and the District OF CO.
lumbia are subject to tax. Sa alleH
and fees paid by the United States
ia its ambassadors, minister's OF
consuls accredited to foreign couh
tries or by q foreign government 10
United states citizens are taxa pc
and the amount spent by them LOT
entertaining is nct deductaDle zee
maid n Juror by the federal govern
ment are taxable income, likewise
the fees received by referee, truS,
fee or receiver, under the natloha,
bankruptcy act. The fees received
by n notary public commissioner
nv the District Of Columbia are tax
able. .-.,x,
Annuities paid by the govern
ment to retired employees are 81"
tect to tax to the extent lhat NV
aggregate amount Of the payments
exceeds the amounts Withheld run
the compensation OF the empi3yG9,
Amounts deducted and WIIHHelu
from the basic salary, pay or com >
nensation paid to employees IN the
civil service of the United states
in accordance with the PROVISIONS
Of the act providing for pensions 70
government employees should DC
renorted for income tax purposes
The total compensation OF the EN-
Moves should be reported in gross
income No corresponding deduc .
lions can be taken for the amounts
Withheld, inasmuch as sueh
amounts are payments towards tht
purchase of annuitlOs proFlu u 10
in the act at. A.,
Inquiries received indicate the
| n preston in the minds of many
nerscns that all school teachers are
exempt from payment OF the IN
come tax. Teachers are not eN-
empt because engaged IN eduCd-
tional work. AS rule the salaries
paid public school teachers are eH s.
empt, but only for the reason lnal
they are employees of a state or po-
Htical subdivision thereof.
The special exemption OF 50, oVU
allowed under the revenue act CT
ll9tS persons in active service III
military and naval forces IS re-
pealed by the revenue act OIL lS@l,
Soldiers and sailors are allowed
onlv the exemptions granted other
individuals, $1,000 if single, or
VARIED and not living with wire
nr husband. $4,000 if married ana
living with wife or husband ana
Tho net income for 1921 was $5,oO0
or less, and $4,000 if married ana
living with wife or husband ana
the net income was mere than
q