The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-03-16
HEART BALM CASH
MUST PAY TAXES
That Is Designated As An
Income, By Officials
ADVICEFOR WOMEN
AlImony Escapes Assessment
File Statements Early
Is Suggestion

According TO the statement Of F.
j. Nenno, cais5 deputy United States
revenue collector, Uncle Sam has
decided that a woman who has won
a breach Of promise case, or has ac
copied out of court a settlement as a
heart balm, must include the amount
IN her income tax return. The
oureau OF internal revenue has ruled
IN such cases that the amount re-
ceived is not to be regarded as re-
turn OF capital. since the benefits OF
which the injured party was depriv-
ed were merely anticipatory
Mr.. Nenno again calls attention to
the fact that to avoid penalty, all
income tax returns should be filed on
or before March Is.
Aiimo1y Is Untasabie.
Did you receive alimony during
the year 1922? Were you successful
In breach of promise suit entered
against former admirer? Personal
Questions, very, but important TO
those to whom they apply in the
preparation OF an income tax re
turn for the year 1899.
Amounts received as alimony are
not taxable income. SHch payments
40 0Ot nave 10 DE- 1nCluOe0 III inc
income tax return of the person re-
ceiving them. nor may they be de-
Quoted from the gross income of the
person paying them. In this respect,
payment of alimony may be likened
10 a personal or living expense.
which is not deductibe. However, a
woman who has won a breach OF
promise case. or has accepted out OF
court settlement as heart balm,
must include the amount in her in
come tax return. The bureau of in
ternal revenue has ruled in such
cases that the amount received lis
not To be regarded as return of
capital. since the benefits OF which
the injured party was deprived were
merely anticipatory."
May Deduct Dues.
Members Of a labor union may de-
duct as a business expense dues
paid 10 such organizations during
the year 1922. Such dues are held
by the bureau to be necessary eX
their wages. A member of a labor
union who. while on strike. receives
payment from an organization must
include in his income for the year
such items
The taxpayer who in 1922 recov-
cred damages for defamation of
personal character need not include
in his return such amount, mas
much as IL has been held TO be non
taxable income. The revenue act
specifically exempts amounts re-
ceived through accident or health
insurance, or under workmens
compensation acts as compensation
for personal injuries or illness, plus
any additional amount received by
suit or agreement in such cases..
To Avoid Penalty.
To avoid penalty. returns should
pe filed on or before midnight OF
March Is. Free advisory services in
the preparation OF the forms is Of
fered at the office of Collector of In
ternal Rev enue. ST. Paul, Mimi. and
the following branch offices: Mime
apolis. Duluth, st. Cloud, Winoaa,
Mankato.
In cases of sickness or absence
the collector is authorized TO grant
an extension of time not TO exceed
thirty DAYS. upon Application by the
Iaxpayer. In all other cases and
where an extension OF more than
thirty days is desired. the applica-
ton must be forwarded TO the com
missioner of internal revenue, Wash
iugton. ID. C. Requests for extension
of time for fling returns Of infor
nation Of salaries paid of $1,000 or
more must also be forwarded to the
commissioner Of internal revenue at
Washington.