Milford chronicle., 1922-01-20
NEW u. S. INCOME
TAX BLANKS READY
Made More Easy to Understand
and Can be Had by Applying
to H. T. Graham, Wilmington.

The following statement is issued b!
Collector of U. S. Internal Revenue H. I
Graham, District of Delaware:
Forms 1O4OA. revised and simplified
for filing individual returns OF income fol
the calendar year 1921 of $4,000 and less
will be available Wednesday, January Il
at the Office of Collector of Internal Rev
enue H. T. Graham, Post Office Building
A COPY will be mailed to taxpayers who
last year filed a return, but failure to re-
ceive the form does not relieve a tax
payer of his obligation to file a return on
time-on or before March Is, 1922. The
form has been reduced from six to four
pages, two of which are devoted to in
structions which should be carefully read
by the taxpayer before filling in the
blanks. A study of these instructions
will greatly lessen difficulties heretofor
encountered in correctly making out the
returns.
On paye /, under the head of Income"
are spaces for reporting the following
items: salaries. wages, commissions, ETC.;
income from partnerships, fidueiarles'
etc.; rents and royalties; profit (or loss)
from business or profession; profit Tor
loss) from sale of real estate; proht (oF
loss) from sale of stocks, bonds, etc. ana
other income. Beneath are spaces LOT
entering deductions, such as interest ana
taxes paid during the year; losses by nre'
storm. shipwreck, or other casualty OF
by theft, contributions. bad debts etc.
On mage 2 are spaces for entering ex-
q
the total amount of income from business
or profession, with description Cgro-
cery," retail clothing drugstore
laundry" doctor" lawyer" 'farmer'D
from rents, and royalties, sale of proper
ty etc.
Reteurns are required of every single
person and every married person not liV-
ing with husband or wife, whose net in
come for 1921 was $1,000 or more, and OF
every married person living with husband
or wife whose net income was $4,000 or
more. If the combined net income Of
husband and wife and dependent minor
children equalled or exceeded $2OOO' or
if the combined gross income of husband
wife and dependent minor children equal
led or exceeded $4,000, all such income
must be reported on joint return or in
separate returns of husband and wife.
If single and the net income including
that of dependent minors, if any, equal
led or exceeded $1,000, or if the gross in
come equalled or exceeded $4,000; re-
turn must be fled A minor, however
having a net income of $1,000 or $4,000 /
according to marital status OF a gross in
come of $4,000, must file return. The /
requirement to file a return of gross in /
come, regardless of the amount of net ,
income, upon which the tax is assessed /
is a new provision.
NET income" is gross income less GER
tain deductions which are explained on .
the form.
Under each of the above conditions, a .
return must be filed even though no tax .
is due. The exemptions are $1,000 for
single persons and married persons not
living with husband or wife, $25OO for
married persons living with husband or
wife whose net income for 1921 was
$4,000 or less and $1,000 for such persons
whose net income was more than $4,000.
The exemptions for dependents "a per-
son under eighteen years of age or men
ally or physically defective" has been I
increased from $500 to $4OO.
A head of a family-a person who ac-
.ually supports in one household on or
more persons related to him Cor her) by
blood, marriage or adoption, is granted
he same exemptions allowed a married
person. Il
The normal tax rates are unchanged,
,er cent on the first $4,000 of net income s
lbove the exemptions and per cent on '
he remaining net income. The tax this
year, as last, may be paid in full at the =,
ime of filing the return, or in four equal :
nstallments due on or before March Is,
une Is, September Is. and December Is.
Heavy penalties are provided by the :
lew revenue act for failure to file a re
urn and pay the tax on time.
Announcement will be made through t
he press of the date of release of Forms t
O4O for filing individual return of income a
more than $5OO0 b