The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-03-03
Salaries of Certain
Officials Are Exempt
Those Working For State, Coun-
ty, City and Hamlet Freed
Of Tax

!. Compensation for personal services
in the form Of salaries, wages, com
missions. fees, tips, bonuses and pen
sions from the principal item In the
returns of millions Of taxpayers. As
a general rule, all such income Is sub
ject to tax. However, three are excep-
tons with which the taxpayer in tne
interess OF self as we'll as the govern
ment, should familiariZe himself.
Salaries paid TO It's officers and EN-.
ployees by a state or political sub
division thereof" city, town, county
or hamlet are exempt from taxation.
The reason for this is that the feder-
al government does not tax such ac-
tivities Of a state. Fees received by
notary public commissioned by a
state. Fees received by a notary pub
lie commissioned by a state are not
taxable, neither are fees paid jurors
by a state or political subdivision
thereof. : ssses in law suits, how
ever, e though suDpoened by
states y are not considered
employee the state, and fees re-
ceiYed by them are subject to taxa
tion.
The commissions of q receiver ap-
pointed by state, county or municipal
court are not taxable. The commits
sions of an administrator or executor
are taxable because they are not paid
by a state or political subdivision, but
out of the estate OF the deceased.
- Salaries Of Federal
Salaries of federal officers and en-. :
ployees, including those Of the terri
tories and the District Of CoIum bia
are subject to tax Salaries and fees
paid by the United States to its am
bassadors, ministers or consuls &C
credited to foreign coutries or by a
foreign government to United States
citizens are taxable, and the amount
spent by them for entertaining is not
deductible. Fees paid a juror by the
federal government are taxable in
come, likewise the fees received by a
referee, trustee or receiver, under the
ceived by notary public commits
stoned by the District Of Columbia are
taxable.
Annuities paid by the government
to retired employer are subject to
tax to the extent tina he aggregate
amount Of the payments exceeds the
amounts withheld from the compen-
sation of the employees Amounts de-
Quoted and withheld from the basic
salary, pay or compensation paid to
employees in the civil service OF the
oAAS~A SSS~SS, 40 S>~S. Ss~-~~S =" AsAA sAAS
provisions of the act providing fof
pensions to Government employees
should be reported Tor income tax
PURPOSES. The total compensation of
the employees should be reported IN
gross income. No corresponding de-
auctions can be taken for the amounts
withheld, inasmuch as such amounts
are payments towards the purchase
of annslties provided for in the act.
Teachers Not Exempt
inquiries received indicate the i'm
preston on the minds Of many per-
sons that all school teachers are ex-
empt from payment OF the income tax.
Teachers are not exempt because en-.
gagged in educational work. AS rule
the salaries paid public school teach
ers are exempt, but only for the rea-
son that they are employees OF q
state or political subdivision thereof.
The special exemption of $500 al
lowed under the revenue act OF lSls
persons in active service in military
and naval forces Is repealed by the
revenue act Of 1921. Soldiers and sail
ors are allowed only the exemptions
granted other individuals, $1,00 II
single, or married and not living with
wife or husband, S2,506 If married and
living with wife or husband and the
net income for 1921 was 5000 or less,
and $4,000 IL married and living with
wife or husband and the net income
was more than 5000.