Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-01-18
Again Time to Worry
Over Your Income Tax
FEDERAL RETURN MUST BE
MADE ON INCOMES BE-
FORE MARCH is


lar returns for the year 1921 Form
1O4OA for filing Individual returns of
net income of $4,000 or less for the
year 1922. The form is in six pages,
two of which provides for the return
proper, and two for making dupli-
cate and the instruction pages should
be detached and retained by the tax
payer, and the original return mailed
to the collector for the district in
which the taxpayer lives or has his
practical place of business. Form
1040 for filing returns of net income
in excess of $4,000 soon will be is
sued, and mailed to taxpayers who
filed similar returns for 1921. The
filing period is from January / to
March Is, 1928.
To avoid errors which may result
to their disadvantage, taxpayers are
advised by the Bureau of Internal
Revenue to study carefully the in
structions on the forms, especially
those with regard to credits for per
sonal exemptions and dependents.
Married persons required to make a
return on Form 1O4OA-those whose
net income was $1,000 or less-are al
lowed an exemption of $4,000. The
exemption for married persons whose
let income was in excess of $4,000 is
$4,000.
The exemption for single persons
IS $1,000 Also. whether married or
single, the taxpayer is allowed a
credit of $500 for each person depend
snt upon him for chief support, if
such person is under eighteen years
Of age or incapable of self support
because mentally or physically defec-
tive.
1t should be remembered that the
requirements to file return is placed
pom every married person whose net
ncome for 1922 was $4,000 or more
II whose gross income was $4,000 or
more, and upon every single person
whose net income was $1,000 or more,
n whose gross income was $4,000 or
more. The fact that by reason Of the
exemptions and credits, a persons
income is not taxable, does not nullify
he requirement. to file a return if
he ir2com .-tlls or exceeds these
pecified amounts Net incomey upon
which the tax is assessed, is gross
income less certain deductions for
BUSINESS expenses, bad debts, losses
contribution, ETC., provision for which
made on the FORMS
A head of family-"a person who
,ctually supports and maintains in
me household one or more individuals
Who are closely connected with him
~ blood relationship, relationship by
marriage or by adoption" is allowed
he same exemptions as a married
person.
In the returns of married aersons
must be included the net income of
10th husband and wife and dependent
amor children. Husband aud wife
nay make a joint return or separate
'eturns. They receive but one person
Il exemption, $4,000 or $4,000 as the
ease may be- If they make separate
returns the exemption may be taken
ny ether or divided between them.
The exemption of $500 for depend
ont may be claimed only by tie one
VITO furnishes, the dependent $ chief
support.
The taxpayers status on the last
lay of The taxable year-December
81. 1922 if made on the calendar year
basis determines the amount of his
exemptions and credits. If married
and living with wife or husband on
that day the exemption is $500 or
$4,000, according to the amount of net
income. If single and without depend
.nts on that day he may claim but
| $1,000 as his exemption, even though
he may have been married or the
head of a family during the greater
part of the year Widowers, widows,
divorces and persons separated by
mutual consent are classed as single
persons.
| The Bureau of Internal Revenue is
preparing to sel.d into each county
il the United States revenue officers.
who will aid taxpayers in making ont
| their returns. Similar services will be
offered city residents. But the Dur
eau's advice before seeking such as
sistance is to re. carefully the in
structions Unless the problem is
pc ticularly colaD!ex, study Of the
form will enable the taxpayer to
make a correct return.
The normal rate of tax of A per cent
on the first $4,000 of net income and
8 per cent on the remaining net in
come above the exemption re nains
unchanged. Surtax rates, which apply
only to incomes in excess of $4,000
are lowered, ranging for the calendar
year 1922 from 1 per cent on the
amount of net income between $4,000
and $4,000 to so per cent on the
amount by which the net income be-
tween $4,000 and to IS per cent on
the amount of net income in excess