The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1922-01-10
Your
Income Tax

for the Central National Bank
Savings and Trust Company,
Cleveland, is explaining the mys-
terry Of the income tax in simple
language for readers of the Ard
moreite. This is his second ar
ticle.
BY r. A. CONKEY
Question 12-How much of an in
dividuals net income is exempt from
taxation?
Answer DIFF single Tor married
and not living with husband or wife)
exemption is $1,000.
elf married and living with hus-
band or wife, or head of family, the
exemption Is $2500 unless the net in
come is over $4,000, in which case
the exemption is only $4,000.
(3)-If husband and wife both make
returns either may take the entire
exemption, or 1t may pc divided. put
the total for both shall not be more
than s2500.
(4)-A further exemption Of $500 is
allowed for each dependent person.
Q. 13-How should one proceed TO
make up return,
A. First, read the instructions on
the return carefully. Then fill out the
work sheet. which is attached to the
return, in pencil go over your an
swers and figures carefully and see
that they are correct before filling
out the return proper in ink.
When the return is completed 1t
must be signed and sworn to either
before a notary public or a deputy
collector. The return should then
be filed with the collector together
with payment Of at least the first
quarterly payment
II further assistance is required in
filling out the return go to the col
lector's office or TO your bank where
the necessary help can usually be
supplied.
Q.14-What is the rate Of tax.
A. II you are citizen or resident
Of the United States the rate of nor
NAL tax is four per cent Of the first
$4,000 OF your net income in excess Of
your personal exemption, and s per
cent OF all above the $4,000,
II your net income. before deduct.
ing personal exemption or credits. is
over $500, sur.tax attaches which
starts at $4,000 and is in addition
to the normal tax.
The sur.tax Is one per cent Of the
amount frora $4,000 to $4,000, two
per cent from $4,000 to $4,000. three
per cent from $4,000 to $4,000 and so
on up TO a maximum Of 65 per cent
Of all over Sl.o00.0o0
Q. l5-what items are not allow.
able deductions,
A. U-Personal. lifing or family
expense.
(2)-Any amounts paid out for new
buildings, for improvements or bet
ternents which 60 TO increase the
value OF any property.
(3)-Prcmiums paid on any life in.
surance policy under which the tax.
payer is directly or Indirectly q bene-
ficiary.
Q. l6-what items Of contributions
are allowable deductions?
Amy contributions or gifts mace
during the year TO any corporation or
community chest fund or foundation,
organized and operated exclusively for
religious, charitable. scientific. literary
or educational purposes, including
posts OF the American Legion or wo'
mems auxiliary units thereof. or fo'
the prevention OF cruelty 10 children
or animals. Also any amounts given
to the United States, any state, ter
ritory or the District OF Columbia for
exclusively public purposes.
O. Ills there a limit to tho
amount Of contributions allowed an
individual?
Ayes. YOU are only allowed An
amount equal 90 10 per cent OF youI
net income before deducting the con
jributions.
Q. ls-whlt items are entirely ex
empt from the taxi
A. G)-Proceeds OF life lnsuranc,
policies paid upon the death o; tht
insured
(2)-Amounts received by the In
sured as return OF premiums or
life insurance, endowment or annuit,
contracts.
tS)-The value OF property acquired
/ by gift. bequest or descent but Tho
iacome from such property must b'
-cturn, ID.
(D--lnterest upla bonds of state
tcrri,J,y. or any political subdivision
thereof or the District OF Columbia
or hanus of the United states or IT,
possession tuxccpt Liberty and Vic
tory loan bonds) fedora, farm lear
aud war finance corporation bonds
Interest from Liberty bonds. vicicr,
bonds and Treasury certificates on In
dcbtedness are entirely frec from Tho
"normi tax. br' it you hold az
amount in excess OF the exemption al
lowed by law the interest on sucf
cS,,Es is subject TO surtix.
'5l-Amourts received through nc
cident or health insurance or mdci
wofkmen's compensation for Injuries