The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1923-02-22
INCOME TAX SERIES
FACTS BOILED DOWN


taxpayers IN the preparation of their
income tax returns for the year 1922
Information concerning the date of
their arrival and the location of their
Offices may be obtained by writing
the collector of internal revenue for
the district in which the taxpayer
lives.
Forms for filing returns of indi-
vidual net income for the year 1922
are being sent to taxpayers who filed
returns for 1921. Failure to receive
a form, however, does not relieve a
taxpayer of his obligation to file a
return and pay the tax on time, on
or before March Is, 1923. The
forms, 1O4OA, for fling the returns
of net incomes of $4,000 and less,
and 1040 for filing returns of net
income in excess of $4,000, may be
obtained from collectors of internal
revenue and deputy collectors.
Returns are required of every sin
gle person whose net income for
1922 was 81, 900 or more or whose
gross income was $4,000 or more,
and Of every married person whose
net income was $4,000 or more or
whose gross income was $4,000 or
more. Careful study of the instruc-
tons on the forms will greatly aid in
making a correct return.
Numhe 2
In the making of his income tax
return for 1922, a taxpayer, if sin
gle, is allowed an exemption of ST.
900. A married person, or head of
a family, whose net income for the
year 1922 was $4,000 or less is al
lowed an exemption of $4,000. The
exemption allowed a married person
or head of a family whose net in
come was in excess of $4,000 is $2,-
900. A head of a family is a person
who actually supports one or more
persons living in his or her house
hold who are closely related to him
or her by blood, marriage or adop-
ton.
An additional credit of $400 is
allowed for each person (other than
husband or wife) dependent upon
the taxpayer for support, if such
person is under IS years of age or
incapable of self support because
mentally or physically defective. A
single mar whose net income fol
1922 was $4,000 and who supports
in his home an aged mother would
have no tax to pay, but would never
theless have to file a return. The
fact that a persons income may be
nontaxable by reason Of the exemp-
tons does not nullify the require
ment to file a return if his income
was within the prescribed figures
$1,000 if single and $4,000 if mar
ried.
The normal tax is 4 per cent on
the first $4,000 of net income in ex-
cess of exemptions, and 8 per cent
on the remaining net income. The
tax may be paid in full at the time of
filing the return, or in four INSTALL
ments due on or before March Is,
June IL, September Is and Dec. Is.
Number 3
The revenue act of 1921 provides
that an income tax return shall be
filed by every person, married or
single, whose gross income for the
year 1922 was $4,000 or more.
Broadly speaking, gross income in
cludes all income received by the tax
payer during the year from salary
wages. or business, trade, profess
sion or VOCATION" dealing in prop
erty, or the transaction Of any bust
ness carried on for profit. Net in !
come, upon which the tax is asses :
sed, is gross income less certain speci-
fed deductions for business expenses
loses, bad debts, taxes, contributions,
etc.
Among the most important items s
In the returns of many taxpayers are t
the deductions for business expenses. v
In the case of a s~torekeeper, they
a reasonable allowance for
paid employees, amounts o
spent for advertising, premiums for p
against fire or other bust r
less losses, the cost of water, light, a
heat and fuel used in his place Of f
business, drayage and freight bills. r
A professional man, doctor or law q
yer, may claim as deductions the cost
Il supplies used in the practice of t.
lis profession, expenses paid In the a
operation and repair of an automo- ii
lie used in making professional calls,
Iues to professional societies, sub
criptions to professional journals, al
flee rent, and the cost of fuel, light,
eat and water used in his ONCE, 81
nd the hire of assistants.
The farmer may deduct all amounts 81