The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1922-03-03
More Income Tax News.

Compensation for personal SER
vices in the form of salaries, wages
commissions, fees, tips, bonuses and
pensions form the principal item in
the returns of millions of taxpay-
ers. AS general rule, all such in.
come is subject to tax. However,
there are exceptions with which the
taxpayer in the interests of self as
well as the Government, should
familiarize himself.
Salaries paid to its officers and
employees by state or political
subdivision thereof" (city, town,
county or hamlet) are exempt from
taxation. The reason for this is
that the Federal Government does
not tax such activities of state.
Fees received by notary public
commissioned by state are not
taxable, neither are fees paid by
jurors by state or political
commissioned by a state or political
subdivision thereof. 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.
uc COAlilitSctOuS VI q ECcclNeI
appointed by state, county or mu-
nicipal court are not taxable. The
commissions 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 officers and
employees, including those of the
territories and the District of Col
umbia are subject to tax. Salaries
and fees paid by the United States
to its ambassadors, ministers or
consuls accredited to foreign coun-
tries or by foreign Government to
United States citizens are taxable,
and the amount spent by them for
entertaining is not deductible. Fees
paid juror by the Federal Gov
eminent are taxable income, like
wise the fees received by a referee,
trustee or receiver, under the Ma
tional Bankruptcy Act. The fees
received by notary public COM
missioned by the District of Column
bia are Ia able.
Annuities paid by the govern
ment to retired employees are sub
ject to tax to the extent that the
aggregate amount of the payments
exceeds the amounts withheld from
the compensation of the employees.
Amounts deducted and withheld
from the basic salary, pay or COM
pensation paid to employees in the
civil service of the United States.
in accordance with the provisions of
the act providing for pensions to
Enuopr
reported in gross income. No cor
responding deductions can be taken
for the amounts withheld, inasmuch
as such amounts are payments
towards the. purchase of annuities
provided foIF In the act.
Inquiries received indicate the
in the minds of many
persons that all school teachers are
exempt from payment of the in
come tax. Teachers are not ex-
empt because engaged in education
al work. As rule the salaries
paid public school teachers are ex-
empt, but only for the reason that
they are employees of a state or
political subdivision thereof.
The special exemption Of $4,000
under the revenue act of
1913 persons In active service in
and naval forces is repeal
ed by the revenue act of 1921.
Soldiers and sailors are allowed
only the exemptions granted other
individuals, $1,000 if single, or
and not living with wife
or husband, $4,000 if married and
living with wife or husband and the
net income for 1921 was SIS 900 or
less, and $4,000 if married and liv-
ing with wife or husband and the
net income was more than $4,000.