Daily Kennebec journal., 1922-01-17

come Of 5000 and Lsss--Announee-
| meat To Be Made Of Dats Of Re-
lease Of Forms for Filing Return Of
Income More Than 5000
! In a statement issued Monday by
Hon. Frank j. Ham Of Augusta, col
lector of internal revenue for the Dis
trict Of Maine, it is learned that forms.
revised and simplihed, for Ming indi-
vidual returns Of income for the CAL
endar year 1921 Of $4,000 and less viii
! be available Wednesday, Jan. 1S, at the
office Of the collector at Augusta and
the branch Offices at Portland and Ban
gor.
A copy will be mailed to Taxpayers
who last year filed return, but fall
ure to receive the form does not re-
lieve a taxpayer Of his obligation 10
file return on time-on or before
March Is, 1899. The form has been
reduced from six to four pages, two
'of which are devoted to instructions
which should be carefully read by the
taxpayer before filing in the blanks.
A study Of these Instructions Will
greatly lessen difficulties heretofore
encountered in correctly making out
the returns.
On Page 1, under the head Income"
are spaces for reporting the following
| items: Salaries, wages, commissions,
ETC.; income from partnerships. fudu-
Charles, ETC.; rents and royalties;
profit Cor loss) from business or pro-
fession; profit Cor loss) from sale ct
real estate; profit Cor loss) from sale
, Of stocks. bonds, ETC., and other IN
come Beneath are spaces for enter
| ing deductions, such as interest and
taxes paid during the year; losses by
| fire, storm, shipwreck, or other cas-
ualty or by theft, contributions, bad
debts, etc.
On Page are spaces for entering
explanations of the various items.
namely, the total amount Of income
from business or profession, with de-
scription Grocery. retail clothing.
drug store, laundry, doctor, lawyer,
| farmer) from rents and royalties, sale
Of property. etc.
Returns are required Of every single
person and every married person not
living with husband or wife. whose
net income 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 hus-
band, wife and (dependent) minor chill
dren equalled or exceeded $4,000. or II
the combined gross income Of hus-
hand, wife and dependent minor chill
cd 8s0n0
such income must be reported on q
joint return or in separate returns of
husband and wife. If single and the
net income including that of depen.
dent minors, il any, equalled or ex-
ceeded $4,000, a return must be accord
ed to marital status % a gross inl
come Of $4,000, must file return. The
requirement to file return Of gross
income, regardless of the amount Of
ret income, upon which the tax is as
sessed is a new provision
"Net income" is gross income less
certain deductions which are explained
on the form.
Under each Of the above conditions.
return must be filed even though no
tax is due. The exemptions are $1,000
for single persons and married per-
sons not living with husband and
wife, $4,000 for married persons living
with husband or wife whose net income
for 1921 was $4,000 or less, and &20oo
for such personsjwhose net income was
more than $4,000. The exemptions for
dependents "a person under 1s years
, Of age or mentally or physically defer.
tive" has been increased from 5000 to
s40o.
| The normal tax rates are unchang-
ed 4 per cent of the first $1,000 Of net
income above the exemptions and 8 per
cent. on the remaining net income. The
tax this year as last. may be paid IN
full at the time of fling the return.
or in four equal installments.. due on
or before March Is. June Is, September
IS and December IS.
Heavy penalties are provided by the
new revenue act for failure to file a
return and pay the tax on time.
Announcement will be made through
the press of the date of release Of
forms for filing individual return Of
income Of more than $4,000.