Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-02-08

county in the United States to aiC
taxpayers in the preparation of their
income tax returns for the year 1922
Incarnation concerning the date OF
their arrival and the location of theil
Offices may be obtained by writing
the collector of internal revenue fol
the district in which the taxpayer
| lives.
Forms for filing returns Of individ
ual net income for the year 1922 are
being sent to taxpayers who filed re
turns for the year 1921. Failure to re
| ceive a form, however, does not re
lieve the taxpayer of his obligation
to file a return and pay the tax on
| time, on or before March Is, 1923
The forms, 1040A for filing returns
Of net income $4,000 and less and 1O4C
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 single
person whose net income for 1922 was
81, 900 or more or whose gross income
was $4,000 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 a correct re
turn.
II In the making of his income tax
return for the year 1922, taxpayer,
/ if single, is allowed an exemption of
| 81, 900. A married person, or head of
family, whose net income for the
year 1922 was $4,000 or less is allowed
an exemption of $4,000 The exempt
ion allowed married person or head
of a family whose net income was il
excess of $4,000 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
related to him or her by blood, mar
riage or adoption.
An additional credit of $500 is allow
ed for each person (other than hus-
band or wife, dependent upon the
taxpayer for chief support, if such
erson is under Is years of age or in
capable of self support because men
tally or physically defective. A single
man whose net income for 1922 was
$4,000 and who supports in his home
an aged mother would have no tax
to pay, but would nevertheless be re
quired to file return. The fact that
persons income may be nontaxable
by reason of the exemptions does not
Dullify the requirement to file re-
turn if his income was within the
prescribed figures $1,000 if single
and $4,000 if married.
The normal tax is per cent 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, Sept
amber Is, and December Is.
The revenue act of 1921 provides
that an income tax return shall be
! filed by every person, married or sin
gle, whose gross income for the year
1922 was $4,000 or more. Broadly
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 bust
ness expenses. In the case of a store
keeper, they include a reasonable al
lowance for salaries paid employees,
amounts spent for advertising, prem
iums for insurance against fire or
other business losses, the cost of wat
er, 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
operation and repair of an automobile
used making professional calls, dues
to professional societies, subscrip-
lions to professional journals, office
rent, and the cost of fuel, light heat
and water used in his Office, and the
hire of assistants.
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 (other than the dwelling, which
is personal expense) and cost OF
small tools used up in the course of a
year or two. Rent paid for a farm
also is an allowable deduction.
Deduction of personal or living ex'
penses such as rent paid for 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 re