The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-01-15
BEGIN MAILING
INCOME BLANKS
Assessor of Incomes Send
ing Out Blanks from
A to X Now.
HAS NEW PROVISIONS
Here's the Dope on the 1925
Payment of Your Income
Tax - Many Reductions.

The annual hours of anguish for
many are beginning to arrive.
r. L. Cundy, assessor of incomes, is
today mailing out income tax blanks
to all those names and addresses of
record arranged alphabetically from
letters "A" to "K" inclusive. Those
whose names begin with the letters
"T" to "Z' will receive theirs in the
very near future, while the rest will
get their report blanks as the clerks
of the department get them out.
The blanks are being mailed to those
who will report an income during the
year 1924 of $500 or more. All persons
who do not within reasonable time get
blank from the assessors office are
urged to call or phone the office at
once. Failure to receive blank does
not excuse anyone from liability to
pay an income tax. "There are enough
blanks for ALL" declared Assessor
Cundy. The Office is located in the
Courthouse Annex at 312 Main street.
The last date for filing federal and
state income tax reports is March IA,
1926. Those filed after that date are
subject to a penalty, Cpndy points out,
and he has announced that his office
will be open daily and Saturday after
moons during the months fof January
and February.
Calls Attention to New Points.
In giving out the "glad news" to
those persons who will in this way
help finance the government, Cundy
calls attention to several provisions in
the new federal income tax law which
make a decided reduction in the tax
upon income of $4,000 dollars and less.
In addition to the reduction of the
rate from to per cent upon net in
comes of $4,000 or less, reduction Of
rs per cent is made in the case of all
incomes of $4,000 or less, and on $4,-
900 of incomes in excess of that
amount.
This additional 25 per cent reduc-
ton is the result of distinction be-
tween earned and unearned incomes
made in the new laws by which re-
bate of % per cent is made in the
tax on earned income limited to
$4,000. An earned salary, according
to the law, is one derived from
wages, salaries, fees from a profess
sion. or any amount received as COM
pensation for personal services ac-
tually rendered.
Reduction for Services.
When a person is in business or in
partnership and gives his services
as we'll as having an investment in
the business a reasonable amount of
such income will be termed earned in
come, In no case shall the amount of
earned income exceed 20 per cent of
the income from such source. The
maximum amount of earned income on
which reduction of rs per cent in
the tax shall be given shall in no case
exceed $4,000.
All incomes of $4,000 or less are
considered as earned and the reduc-
ton of % per cent is granted. An
income of $4,000 or less is considered
an earned income although it might
be entirely derived from interest on
bonds or from other sources not in
cluded as earned. Those whose in
come is $4,000 or less do not have to
classify their income as earned or
unearned, but when it is more than
$4,000 it must be separated into the
two clsssifcations.
New Rate Reductions.
Under the old law the federal in
come tax rate was 4 per cent on the
first $4,000 income above exemptions
and per cent on all above that
amount. The new rate is 2 per cent
on the first $4,000 income above ex-
emptions, per cent on the next
$4,000 and per cent on the balance,
with the credit of % per cent on the
first $4,000 as earned income and a
maximum credit of % per cent up to
$4,000 of earned income.
The surtax under the old law be-
gan at per cent on more than $4,000
and ran up to so per cent. The new
rate begins with / per cent on every
thing beyond $4,000 with maxi
mum of 40 per cent.
Extensions of time for filing in
come tax returns can no longer be
granted by the collector but only by
the commissioner in Milwaukee," said
Cundy today. The tax can be paid in
quarterly installments if desided, the
same as heretofore.