The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-03
Millions Go to Golfers of
U. S., as Payment on
Incomes Proceeds.
MARCH IS is DEADLINE
Officials Estimate Total of
Two Billions Will Be
Collected.
BY JOSEPH S. WASNEY
United Press staff Correspondent

WASHINGTON, March 3-Mil-
lions OF dollars began pouring into
the treasury, today, as first INSTALL
ments on the income tax due March
IS were transferred from Federal
reserve banks to Government cof-
fers.
Officials estimated that 2,500,0OO
individuals and 100000 corporations
would contribute more than $4,000
100000 in income taxes to Uncle
Sam in 1928
March collections will be about
$480,000, 900, a decrease of about $685.
100000 from last March, it was es-
tinlated.
While around 100000 persons
will file income tax returns, only
about half of them have taxable in
comes. Only 250,000 corporations
pay taxes, out of 100000 which make
returns.
Must File by March Is
All single persons with net in
comes of $500 and married couples
with net incomes of $500 must have
returns to their collector of inter
nal revenue before midnight March
Is to avoid penalty.
ANY person with gross income
of $1,000 or more must file return
whether he has a taxable income or
not.
Taxpayers are allowed reduction
OF $500 year for each dependent
under 10 years OF age or incapable OF
self support because mentally or
physically defective.
Single persons have $500 eX-
emption; a married man or "head
of family" has $500 exemption.
Normal rate is IL per sent on the
first $4,000 OF net income, which is
gross income minus personal exemp-
ton, credit for dependents, and al
lowable deductions.
Surtax After $4,000
The rate is per cent on the next
$4,000 and 5 per cent on the re-
mainder.
Surtax rate applies to net income
in excess of $4,000. 1t ranges up
to 20 per cent on incomes larger
than 100000.
The vast majority of taxpayers
are salaried persons and therefore
are entitled to an additional credit
o5 25 per. cent of the tax on their
net earned income, up to $4,000.
The treasury defines earned in
come as wages, salaries, profess
sional fees and other amounts re-
ceived as compensation for personal
services actually rendered" AN net
income, however, whether earned or
not. is considered earned up to
$4,000.
Ten thousand persons pay more
than half of the individual income
tax collected.
The treasury operates its NAM
moth collecting agency at an eX-
pense averaging $1.15 per 500 taken
in.
Many Deductions Allowed
The treasury allows taxpayers as
deductions money used for business
expenses, losses, interest paid, bad
debts, depreciation, rent and con-
tributions to charity and church.
Warming was issued by the inter-
nal revenue bureau today, however,
that all deductions must be made in
accordance with the complicated law
and regulations.
Taxes paid on real or personal
property during the calendar year
1927 are deductible, but no allow
.ance is made for last years income
tax payments. Custom duties pay
nent and Federal estate tax pay
ments also are deductible.
Gifts made to an individual are
not deductible.
Farmers Get Exemptions
Farmers can deduct all amounts
paid in the production, harvesting
and marketing Of crops, including
labor, cost of seed, fertilizer, minor
repairs to farm buildings and small
tools.
Professional men can deduct for
office rent. water used in Office, re-
pair and depreciation of automobiles
used for business, dues to profess
sional societies, and many other ex-
emptions.
State, county and municipal en-
ployes, paid by States or political
subdivisions, are exempt from in
come taxation, but Federal en-
ployes, working for the Government,
must pay some of their salary back
to the Government If they earn
more than the exemptions