Five Mile Beach weekly journal., 1923-02-02
INCOME TAX FACTS. No. 1

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 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
receive 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, 1928. The
forms, 1040A, for filing returns of net
income S $4,000 and less, and 1040 for
filing returns of net income in excess
of IS, 1000, may be obtained from col
Iectors of internal revenue and deputy
collectors.
Returns are required of every single
person whose net income for 1925 was
81, 900 or more, or whose gross income
| was SIS, 900 or more, and of every mar
! ried person whose net income was
$4,000 or more, or whose gross income
was SIS, 900 or more. Careful study of
the instructions on the forms will
N
greatly aid in making a correct return.
INCOME TAX FACTS, No.
In the making of his income tax re-
turn for the year 1922, a taxpayer, if
single, is allowed an exemption of
81, 900. A married person, or head Of
a family, whose net income for the
year 1922 was $4,000 or less is al
lowed an exemption of $4,000. The
exemption allowed a married person
or head of a family whose net income
was in excess of $4,000 is $4,000. A
head of a family is a person who actu-
ally supports one or more persons liv-
ing in his or her household who are
closely related 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, if such
person 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
So, 900 and who supports in his home
an aged mother would have no tax to
pay, but would nevertheless be re-
quired to file a return. The fact that
a persons income may be non-taxable
by reason of the exemption does mo-
nullify the requirement to file a re-
turn if his income was within the pre-
scribed figures-$1, 900 if single and
$4,000 if married.
The normal tax is 4 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, Septem-
Der Is and December Is.
INCOME TAX FACTS, No. 3
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 SIS, 900 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
less certain specified deductions for
business expenses, losses, bad debts,
taxes, contributions, etc.
Among the most important items
in the returns of many taxpayers are
the deductions for business expenses.
In the case of a storekeeper, they in
clude a reasonable allowance for sal
aries paid employees, amounts spent
for advertising, premiums for insur-
ance against fire or other business
losses, the cost of water, light, heat
and fuel used in his place of business,
drayage and freight bills.
A professional man, doctor or lawyer
may claim as deductions the cost of
supplies used in the practice of his
profession, expenses paid in the oper-
alton and repair of an automobile used
in making professional calls, dues to
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 as
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 (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 a dwell
ing, hire of domestic servants, educa-
ton of children, etc, is expressly dis
allowed by the revenue act.
INCOME TAX FACTS, No..
In making out his income tax return