Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-03-21
REVENUE REGULATIONS

COMPENSATION for personal services
in the form Of salaries, wages, COM,
missions, fees. tips, bonuses and
pensions form the principal Item IN
the returns of millions OF taxpayers.
AS a general rule, all such income IS
subject to tax. However, there are
exceptions with which the taxpayer
in the interests Of self as well as the
Government, should familiarize NM
self.
Salaries paid to it's officers and
EMPLOYEES by state or political
subdivision thereof" Getty, town.,
county or hamlet) are exempt from
taxation. The reason for this IS thaI
the Federal Government does not tax
such activities of a state. Fees re-
ceived by a notary public commits
stoned by a state are not taXaole,
neither are fees paid jurors by a
state or political subdivision Thereon
Witnesses 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. 49,. :.
The commissions Of a receiver APP.
pointed by state, county or munlcipal
court are not taxable. The commls-
sions of an administrator or executor;
are taxable because they are not
paid by a state or political subdivls-
ion, but out of the estate OF the de-
ceased. 49,: 4
Salaries of federal officers and
employees, including those Of the
territories and the District OF 60.
lumbia are subject to tax. ! Salaries
and fees paid by the United States to
its ambassadors, ministers: or con-
suls accredited to foreign countries
or by a foreign Government to
United States citizens are taxable,
and the amount spent, by them Tor
entertaining is not deductible. Fees
paid a juror by the Federal Govern
,nent are taxable income, likewise
the fees received by refere, trus-
tee or receiver, under the National
Bankruptcy Act. The fees received
by a notary public commissioned 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 the compen-
sation of the employees. Amounts
deducted and withheld from the ba.,
sis salary pay or compensation PAID
to employees in the civil service OF
the United States, in accordance with
the provisions of the act providing
for pensions to Government en-
ployees should be reported for income
tax purposes. The total compensa-
ton of the employees should be re-
ported in gross income. No CORES
bonding deductions can be taken for
the amounts withheld, in asmuch as
such amounts are payments towards
the purchase of annuities provided
for in the act.
Inquiries received indicate the
impression in the minds of many
persons that all school teachers are
exempt from payment of the income
tax. Teachers are not exempt be-
cause engaged in educational work.
AS rule the salaries paid public
school teachers are exempt, but only
for the reason that they are EN-
ployees of a state or political SUBJ
division thereof.
The special exemption of $500 al
lowed under the revenue act of 1918
persons in active service in military
and naval forces is repealed by the
revenue act of 1921. Soldiers and
sailors are allowed only the exemp-
tons granted other individuals, $1,000
if single, or married and not living
with wife Of husband, $4,000 if mar
ried and living with wife or husband
and the net income for 1921 was
$4,000 or less, and $4,000 if married
and living with wife or husband and
the net income was more than
$4,000. :,