The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-02
INCOME TAX
In NUTSHELL
Furnished 6y U. S. Internal
Revenue Bureau.

Furnished BY U. S. Internal
Revenue Bureau.
WHOf Single persons who had
net income Of Loco or more,
or gross income Of 5000 or
more. Married couples who
had net income Of 5000 or
more, or gross income OF 5000
or more.
wHENf March Is, 1879, Is final
date for filing returns and max
ing first payments.
WHERE? Collector OF internal
revenue for the district In
which the person lives, or has
his principal place Of business.
Howl Four per cent normal
tax on taxable income up to
$4,000 I'm excess Of exemption.
Eight per cent normal tax on
balance of taxable income. Sur
tax from 1 per cent to IS per
cent ON /, net incomes over
$4,000 for the year 1891.
INCOME TAX FACTS
A new and important provision
In the revenue act of 1921 is that
every person whose gross income
for 1921 was 5000 or over shall
file a return, regardless Of the
amount of net income. II a hus-
band and wife living together have
an aggregate gross income or IS 200
or over, separate returns or a Joint
return may be filed.
Regardless of the amount Of gross
income, returns are required Of
every married person living with
husband or wife whose net income
for 1891 was $4,000 or over. and Of
eveiy singie person. or married
person not living with husband or
wife. whose net income was 1000
or over. Net income" upon which
the ta.- 10 assessed, il gross in
come" less certain specified dedlc-
tons. Gross income includes
gains, profits. and income derived
from salaries, wages, or compensa-
ever kind and in whatever form
paid, or from professions. voca
tons, trades, businesses. commerce,
or sales. or dealings In property.
whether real or personal. growing
out Of the ownership or use Of or
interest, rent, dividends. securities.
or the transaction of any business
carried on for gain or profit, or
gains or profits and incoms de-
rived from any source whatever.
Taxpayers may be divided into
four general classes-the wage
Garner or salaried class, business,
professional, and agricultural. Any
form Of compensation for personal
service rendered by the wage Garner
Is income, including salaries, wages.
commissions, fees, pensions paid
retired employees, and tips. All must
be included in gross income. II pay
ment for personal service Is made
partly in cash and partly in board
and lodging. a fair value must be
placed on the room and meals, and
the amount included as income.
The gross income Of the usual
business consists of the gross profits
on sales. together with income from
other sources. The return must
show the gross sales, purchases. and
cost Of goods sold. To reflect net in
come correctly. inventories are
necessary at the beginning and end
Of each taxable year.
The lawyer, doctor, architect.
author. dentist, clergyman must in
clude in his return of gross income
all fees, salaries. and like compensa-
ton for professional services.
Exemption Allowed Clergymen.
Certain items are specifically ex-
empt from income tax. In addition
to the items exempted by the reve-
nue. act OF 1918, such as proceeds of
life insurance policies, amounts re-
ceived through accident or health in
surance, value of property acquired
by gift or devise, interest on State
and certain Federal bonds, etc, the
revenue act of 1921 provides that
the rental value Of a dwelling and
its appurtenances furnished min
lister Of the gospel is exempt from
income tax, and need not be included
in the return.
The exemption Of $500 formerly
allowed persons in active military or
naval service Of the United States is
repealed. Amounts received under
the war-risk insurance and voca-
tional rehabilitation acts or from
war pensions of the United States
are exempt, and need not be included
in the return.
The farmer is required to report
as gross income all receipts derived
from the sale or exchange of farm
products, including crops and live
stock whether produced on the farm
or purchased and resold. Where farm
produce is exchanged for groceries,
merchandise, or other articles the
fair market value Of the articles re-
ceived must be reported as income.
A farmer who rents his farm on the
crop-share basis must report such in
come for the year in which the crops
are sold. Profit derived from the
sale or rental Of farm lands must be
reported.
Items to Be Included.
Every taxpayer ia reouired TO in