The Miller press. [volume] (Miller, S.D.) 190?-current, 1923-02-22
POINTERS ON
INCOME TAX
Income Tax Returns Must BE In Re.
venue Office By March
Fifteenth

county In the United States to aiC
taxpayers in the preparation of theil
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 fling returns OF individu-
al net income for the year 1922 are
being sent to taxpayers who filed re-
turns for the year 1921. Failure to
receive . form. however. does not re-
lieve the taxpayer Of his obligation to
file a return and pay the tax on time,
On Of before March 10, 1928. The
forms, 1e40A for filing returns of net
income $4,000 and less and 1040 for
filing returns of net income in excess
OF $4,000, may be obtained from coll
lectors of internal revenue and deputy
collectors.
Returns are required Of every single
person whose net income for 1922 Was
$1,000 or more or whose gross income
was $1,000 Or more and Of every mar
ried person whose net income was
$4,000 or more or whose gross income
was $4,000 or more Careful study Of
the instructions on the forms will
greatly aid in making acorrect return.
In the making OF his income tax
return for the year 1922, a taxpayer,
IL single, Is allowed an exemption of
$1,000. A married person, or head Of
a family, whose net income for the
year 1922 was 1000 Or less Is allowed
an exemption of $4,000. The exemp-
ton allowed a married person or head
of a family whose net income was I'm
excess of 5000 is $4,000. A head Of a
family Is a person who actually sup
ports one or more persons living in his
Or her household who are closely re-
lated to him or her by blood, marriage
or adoption.
An additional credit of $500 is al
lowed for each person (other than
husband or wife, dependent upon the
taxpayer for chief support, II such
person is under Is years Of age or In.
capable of seif-support because men-
tally o. physically defective. A single
nan whose net income for 1922 was
1000 and who supports In his home
an aged mother would have no tax
W pa. buI "ouiu iiStNco NC IL
quirea to file a return. The fact that
a persons income may be ~nontaxable
by reason of the exemptions does net
nullify the requirement to file a return
il his irccme was within the prescrib-'
ed figures-S1,0o0 If single and $4,000
IL married.
The normal tax Is 4 per rem on the
first $4,000 of net income in excess OF
the exemptions, and s per cent on the
remaining net income. The tax may
be paid In full at the time Of filing the
return, or in four installments due on
or before March Is, June Is, Septem-
Der Is, and December Is.
The went 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 $1,000 or more. Broad
ly speaking, gross income includes all
income received by the taxpayer dur
ing the year from salary or wages, or
from business, trade, profession, or
VOCATION" dealing in property, or the
transaction of any business carried on
for profit. Net income, upon which
the tax is assessed, is gross income
less certain specified deductions for
business expenses, losses, bad debts,
taxes, contributions. etc.
Among tho most important items in
the returns of many taxpayers are the
deductions for business expenses. In
the ease of a storekeeper, they include
paid employees, amounts spent Tor al"
vertising. premiums for insurance
against fire or other business losseS.
the cot of water, light, heat and fuel
used In his place of business, drayage
and freight bills.
A professional man. doctor or law
yer, may claim as deductions the cost
of supplies used in the practice OF his
profession, expenses paid in the oper-
alton end repair Of an automobile used
in making professional calls, dues 10
professional societies, subscriptions TO
professional journals, office rent, and
the cost OF fuel, light, heat and water
used in his office, and the hire OF az
sistants.
The farmer may deduct all amounts
paid in the production, harvesting and
marketing OF crops, including labor,
cost OF seed and fertilizer purchased,
cost of minor repairs to farm build
ings tother than the dwelling, which
Is personal expense) and cost of small
tools used up in the r Of a year
or two. Rent paid for a farm also
is an allowable deduction.
Deduction OF personal or living eN
penses such as rent paid for a dwell
ing, hire OF domestic servants. educa-
ton Of children, etc, is expressly dis
allowed by the revenue act.
In making out his income tax return
for the year 1922, the taxpayer is re-
CURED to include all items Of gross
income In the case Of a storekeeper
the gross income consist usually Of
the gross profits on sales, together
with income from other sources.
The returns must show the gross sales
purchases, and costs OF goods sold,
To reflect net income correctly. and
to ascertain gross income, inventories
are ordinarily required as of the be-
ginning and end OF each taxable year
The professional man, doctor. lawyer,
dentist, must include all fees and other
compensation for professional ser
vices.
The farmer is required to report as
gross income all profits derived from
the sale or exchange OF farm products,
including crops and live stock. wheth.