The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1923-02-16
SOME INCOME TAX
FACTS To STUDY.
INTERNAL REVENUE BUREAU
GIVES OUT SOME RULES
ON THE TAX.

The following has been sent out
by the Bureau of Internal Revenue
and are well worth reading and
needing:
Revenue officers are visiting every
county in the United States to aid
taxpayers in the preparation OF
their income tax returns for the
wear 1922. A deputy will be IN
Ely on Feb 81 and %.
Forms for filing returns OF in
dividual net income for the year
1922 are being sent to taxpayers
who filed returns for the year 1871.
Failure to receive a form, however,
does not relieve the taxpayer of
his obligation to file return and
nav the tax on time, on or before
March Is, 1923. The forms,- 104OA
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 col
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 $4,000 or more
and of every. married person whose
net income was $4,000 or more.
Careful study of the instructions
on the forms will greatly aid Iii
making a correct return.
In the making of his income tax
return for the year 1922, tax
payer, if single, is allowed an ex-
emption of $1,000. A married per-
SON, or head of a family, whose net
income for the year 1922 was So
900 or less is allowed an exemption
of $4,000. The exemption allowed
a married person or head of fam
ily whose net income was IN ex-
cess of $4,000 is $4,000. A head
of a family is person who actu-
ally supports one or more persons
living in his or her household who
are closely related to him or her
by blood, marriage or adoption.
An additional credit of S4O0 is
allowed for each person (other
than husband or wife) dependent
upon the taxpayer for chief sup
port, if such person is under IL
years of age or incapable of self
support because mentally or physic-
ally defective. A single man whose
net income for 1922 was $4,000
and supports in his home an aged
mother would have no tax to pay,
but would nevertheless be required
to file a return. The fact that a
persons income may be nontaxable
by reason of the exemptions does
not nullify the requirement to file
a return if his income was within
the prescribed fgures-$1 900 If
mn
The normal tax is per cent on
the first $1,000 of net income. The
tax may be paid in full at the time
stallments due on or before March
10, June Is, September Is and
December Is.
The revenue act of 1921 provides
that an income tax return shall be
filed by every person, married OF
single, whose gross income for the
year 1922 was $4,000 or more
Broadly speaking, gross income in.
cludes all income received by the
taxpayer during the year from sal.
airy or wages, or from business
trade, profession or vocation, deal.
ing in property, or the transaction
of any business carried on fol-
profit. Net income, upon which
the tax is assessed, is gross income
less certain specified deductions fol
business expenses losses, bad debts
contributions, etc.
Among the most important items
in the returns of many taxpayers
are the deductions for business ex
penses. In the case of store
keeper, they include reasonable al
lowance for salaries paid employees
amounts spent for advertising
premiums for insurance against firt
or other business losses, the cost Of
water, light, heat and fuel used il
his place of business, drayage anc
freight bills.
A professional man, doctor o.
lawyer, may claim as deductions thu
cost of supplies used in the practic'
of his profession, expenses paid IL
the operation and repair Of al
automobile used in making profes
sional calls, dues to professional
societies, subscriptions to profes
sional journals, Office rent, and thu
cost of fuel, light heat and watel