The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-03-02
EXCEPTIONS In
TAXABLE INCOME
Salaries Paid 70 Officers and Employees
by State Are Exempt.

This statement is issued by Collscto,
| of Internal Revenue d. T. Gerof, distric
of Florida:
1 Compensation fer personal services n
| the form of salaries. wages, commissions
! fees. tips, bonuses and pensions form tht
principal item in the returns of million:
! of taxpayers. AS a general rule, all sucf
| income is subject TO tax. However, there
are exceptions with which the taxpayer
in the interest of self as well as the
government. should famiiiarise himself.
Salaries paid TO it's officers and EN-
, pleyees by a state or political sub
division thereof (oity, town, county OF
hamlet) are exempt from taxation. The
reason for this is that the federal govern
ment does not tax such activities OF a
state. Fees received by a notary public
commissioned by state are not taxable
neither are fees paid jurors by state
or political subdivision thereof, Wit
nesses in law suits, however, even though
subpoened by states attorney are not
considered employees Of the state, and
fees received by them are subject to
taxation.
The commissions OF a receiver appoint
ed by state. county or municipal court
are not taxable. The commissions Of an
administrator or executor are taxable be-
cause they are not paid by a state or
political subdivision, but out of the
estate OF the deceased.
Salaries of federal officers and en-
ployees, including those of the terri
tories and the District Of Columbia are
subject to tax. Salaries and fees paid
by the United States to it's ambassa-
doris, ministers or consuls accredited to
foreign countries OF by a foreign govern
ment to United States citizens are tax
IL - FHV
entertaining is not deductible. Fees paid
a juror by the federal government are
taxable income likewise the fees re-
ceived by referee, trustee or receiver,
under the National Bankruptcy Act. The
fees received by a notary public COM
nissioned by the District of Columbia
are taxable.
Annuities paid by the government to
retired employees are subject TO tax to
the extent that the aggregate amount
of the payments exceeds the amounts
withheld from tho compensation OF the
employees. Amounts deducted and with
held form the basic salary, pay or COM
pensation paid to employees in the civil
service of the United States, in accord
ance with the provisions of the act pro
viding for pensions to government en-
ployees should be reported for income
tax purposes. The total compensation of
the employees should be reported in
gross income. No corresponding deduc-
tons can be taken for the amounts with
held, inasmuth as such amounts are pay
ments towards the purchase of annuites
provided for in the act.
Inquiries received Indicate the i'm
preston in the minds of many persons
that all school teachers are exempt from
payment of the income tax. Teachers
are not exempt because engaged in edu-
cational work. AS a rule the salaries
paid public school teachers are exempt.
but only for the reason that they are
employees Of state or political subdivision
thereof.
The special exemption of $500 allowed
under the revenue act OF 1918 persons in
active service in military and naval
forces is repealed by the revenue act of
1871. Soldiers and sailors are allowed
only the exemptions granted other in
dividuals, $1,000 if single, or married and
not living with wife or husband, $4,000
il married and living with wife or hus-
band and the net income for 1921 was
$1,000 or less, and $4,000 il married and
living with wife or husband and the net
income was more than $1,000.