Southwest Washington labor press. [volume] (Hoquiam, Wash.) 19??-19??, 1924-07-18
Income Tax Cut
Nets One Fourth

TACOMA, July 17.-Work on the
administration of the revenue act of
1924 was begun Immediately upon the
passage of the new act. New regu-
lations relating to the in :ame, estate,
cxcise. special, stamp and Other taxes
provided for are be 1g prepared and
will be issued at the earliest practic-
able moment, said Burns Poe, Col
lector Of Inland Revenue.
OF immediate interest to taxpayers
is the provision for a 25 per cent re-
duction on the income tax of indi-
viduals for the year 1923. This %
per cent reduction is not applicable
to corporations. Many individual tax
payers, anticipating the reduction,
paid at the time of filing their re-
turns, on or before March 10, 1924,
only three-fourths Of the amount re-
ported on their returns. These tax
payers have nothing further to pay
this year, unless additional tax is dis
closed in the audit of their returns.
How to Secure Reduction
If one-fourth of the tax was paid
on or before March Is, payment Of
one-half Of similar amount satisfied
the June Is requirement. The tax re.
naming unpaid after June Is may be
paid in equal installments on or be-
fore September 10 and December 10
respectively.
Taxpayers paying on the INSTALL
ment plan, desiring, now that the 25
per cent reduction is an accomplished
fact, to pay the remainder of the tax
in full, may of course do so, the adj
vantage being to the Government as
well as themselves in the elimination
of bookkeeping.
Taxpayers who paid in full the
amount of tax shown on their returns
will receive a refund of % per cent
without requirement of filing a claim.
Returns under the 1924 act are re-
quired of every single person whose
net income for 1924 was $1,000 or
more, or whose gross income was
5000 or more and of every married
person whose net income was $4,000
or more or whose gross income was
$1,000 or more. Under the 1921 act
returns were required of married per-
sons whose net income was $4,000 or
more. The 1924 act provides that if
married couple has an aggregate
net income of $500 or an aggregate
gross income of $1,000, each shall
make return, or the income Of each
shall be included in a single joint
return, in which case the tax shall
be computed on the aggregate net in
come. Married persons not living to-
gether, such as Divorces or persons
separated by mutual consent, are
classed as single persons, as are wild
ows and widowers.
Exemption Still $1,000
There is no change in the exemp-
ton for single persons, which is
$1,000. Married persons, living to-
gether, and heads of families, are al
lowed an exemption of $1,000, regard
less of the amount of net income.
Under the 1921 act the exemption for
married persons and heads of fam
lilies was $500 if the net income was
$4,000 or less and $4,000 if the net
income exceeded $4,000. No change
is made in the provision allowing
taxpayer, in addition to his personal
exemption, a credit of $4O0 for each
dependent if such dependent is under
1S years of age or incapable of self
support because mentally or, physic-
ally defective. This $400 credit is
now allowed for the husband or wife
of a taxpayer, though one may be
totally dependent upon the other.