The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-01-02
FORM lO4O-A ASKS
YOUR ATTENTION
BLANKS FOR INCOME TAX RE.
TURNS ARE MAILED TO IDAHO
RESIDENTS.

Collectors of internal revenue to-
day are mailing to taxpayers who
made similar returns for the year
1921 Form 1040 A for filing individu-
al returns of net income of $1,000 or
less for the year 1922. The form is
In six pages, two of which provide
for the return proper, and two for
making a duplicate of the return.
Two pages are devoted to instruc-
tions. The duplicate and the instruc-
ton pages should be detached and
retained by the taxpayer, and the
original return mailed to the collec-
tor for the district in which the tax
payer lives or has his principal place
of business. Form 1040 for filing
returns of net income in excess of
$4,000 soon will be issued, and mailed
to taxpayers who filed similar re-
turns for 1921. The filing period is
from January 1 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-
sonaI exemptions and dependents.
Married persons required to make
return on form 1O40 A-those whose
net income was $4,000 or less-are
allowed an exemption of $4,000. The
exemption for married persons whose
net income was in excess of 5000 is
$4,000
The exemption for single persons
is $1,000. Also, whether married or
single, the taxpayer is allowed a Gre
- dov,f
upon him for chief support, II such
or incapable Of self support because
mentally or physically defective.
It should be remembered that the
requirement to file a return is placed
upon every married person whose net
income for 1922 was $4,000 or more
or whose gross income was $4,000 or
more, and upon every single person
whose net income was $1,000 or more,
or whose gross income was $4,000 or
more The fact that reason of the
exemptions and credits persons in
come is not taxable, does not nullify
the requirement to file return If the
income equals or exceeds these
specified amounts. Net income, upon
which the tax is assessed, is gross
income less certain deductions for +
business expenses, bad debts, losses /
contributions, ETC., provision for which
is made on the forms.
A head of family-"a person who
actually supports and maintains in
one household one or more indivfdu-
ais who are closely connected with /
him by blood relationship, relation
ship by marriage or by adoption is
allowed the same exemptions as
married person.
In the returns of married persons
must be included the net income of
both husband and wife and depen-
dent minor children. Husband and
wife may make joint return or Sc
parate returns. They receive but one
personal exemption, $2,500 or $4,000 /
as the -case may be. If they make
returns the exemption may
be taken by either or divided be-
tween them. The exemption OF $40O /
for a dependent may be claimed only
by the one who furnishes the de-
pendent's chief support.
The taxpayers status on the last {
day of the taxable year--December 6
81, 1922, if made on the calendar year
basis, determines the amount OF his
and credits.
The bureau of internal revenue is :
preparing to send into each county +
in the United States revenue officers l
who will aid taxpayers in making out g
their returns Similar services will t
be offered city residents. But the I
bureaus advice before seeking such t
assistance is to read carefully the in t
Unless the problem is s
particularly complex, study of the
form will enable the taxpayer to 2
make a correct return.
The normal rate of tax of per c
cent on the first $4,000 Of net in
come and per cent on the remain- 5
ing net income above the exemption
remains unchanged. Surtax rates, d
which apply only to incomes in ex- {
cess of $4,000 are lowered ranging
Tor the calendar year 1922 from one 2
per cent on the amount of net income
between $4,000 and $4,000 to so per Is
cent on the amount by which the net
incomes exceeds 100000. For the I
year 1921 the surtax rates ranged +
from one per cent on the amount '
Of net income between $4,000 and n
$4,000 to 65 per cent on the amount t
Of net income in excess of $1,000,000. g