Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1926-03-05

/ liN can Dc Claimed hA ouIA one mem
Der Of a household.
The $500 credit does not apply "a
the wife or husband of taxpayer.
though one may be totally dependent
upon the other
The revenue act Of l9a6 provides
| that the status Of a taxpayer relative
10 the amount of hts personal eNemp-
lions shalt be determined by appots
tonment IN accordance with the mum
| Der Of months the taxpayer Vas sin
gle. married, or the head Of family.
Fer example couple married On
September 80, 1925, would be en-.
titled 10 an exemption Of $780,
that is. OLE Of $1,000 for the husband
while single, plus 9-12 Of $1,000 for
the wife while single, plus 3.l2 Of
| $4,000 fer the period during which
| they were married.
Ii ON June 80, a taxpayer ceased
! being head Of family the support
in one household of a relative o.
relatives being discontinued is
allowed an exemption of $500 One
half of the exemption Of 81 300 grant
ed single person plus one-half Of the
exemption of $500 granted the head
of family. With regard 10 the $aoo
credit for a dependent, the taxpayer
status is determined as of the last day
Of the taxable year. II. during the
year, his support of such dependent
ceased he is not entitled 10 this
credit
In making out his income tax for
the year 1925 the business man, pro
q. l.,
10 use Form 1910. regardless Of
whether his net income was OF was
not in excess of $1,000, The smaller
form 10i0A is used FOR reporting IN
| come Of $4,000 or less derived chiefly
| from salaries or wages.
Forms have been sent TO persons
who last year filed returns Of income.
| Failure TO receive form, however,
| does not relieve the taxpayer from his
obligation TO file "A return and pay the
tax within the time prescribed, on OF
before March 10, 1926 Copies of tn,
| forms may be obtained from offices al
Collectors of Internal Revenue and
branch offices. The tax may be paid
in full at the time OF filing the re-
| turn, or In four equal lnstallmcnta
| due on or before March 10, June 10,
September 10 and December 10.
The taxpayer must include in his In.
come-taX return for the year 1926 all
items of gross income specified by
| law. In the case of st0rekeeper
| gross income usually consists of gross
| profits on sales, together with income
from other sources. The return must
| show the gross sales, purchases, and
cost Of goods sold. The professional
| man, lawyer, doctor, dentist must in
clude all fees and other compensation
received from professional services.
The farmer must report as gross IN
| come the proceeds of sales or cN.
change of products raised on the
farm OF whether purchased by him
and iesold. He must report also gross
income from all other sources, such as
rentals or profits from the sale of
farm lands.
Net income, upon which the tax Is
assessed, is gross income less certain
deductions for business, expenses,
losses, bad debts, contributions, etc.
70 take full advantage of the deduc-
tons to which entitled Taxpayers
should read carefully the Instructions
on the form under the heads Of In
come from business or profession
Net income, upon which the Income
tax is assessed. is gross income less
certain specified deductions for bust
ness expenses, losses, contributions,
bad debts, etc. A stofekeeper may de
duet as business expense amounts
spent for rent Of his place Of business,
advertising, premiums for insurance
against fire or other LOSSES, cost OF
water, light and heat used in his place
Of business, drayage and freight bill,
and the cost Of maintenance and re-
pair to delivery wagons and trucks
and reasonable allowance for sal
aries.
A professional man, such az a law
yer, doctor, or dentist, may deduct the
cost Of supplies used in his profes-
ion. expenses paid in the operation
and repair Of automobiles used in
making professional calls, dues 10 pro
fessionai journals, office rent, cost OF
water, light, and heat used IN his
Office. aud the hire Of Office assistants.
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