The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-03-09
STATE INCOME TAX FACTS
Time EXTENDED TO APRIL Is
Extension of Time April Is Granted Tax
Returns-nterst Charged 3ODay Extension Amy
Tax Due On March 18TH

were due on March 18th. Taxpayers
who desire to take advantage of this
extension of time will be charged in
tereSt at $50 for the thirty day ex-
tension on any tax which would other
wise have been due and payable on
March 18th.
Every person is required to file a
return on his net income in excess of
$1,000 if single; or $1,000 if married or
if he is the head of household. All
taxpayers are required to file returns
if their gross income exceeds $1,000
irrespective of whether or not they
have any net income A credit of $3.50
is allowed for each person (other than
husband or wife) dependent upon and
receiving his chief support from the
taxpayer.
Salaries of officers and employees of
the State OF Minnesota or any of the
cities, towns, or other subdivisions or
agencies of the state are subject to tax.
A taxable income in an amount equal
to the value of such things. Consider
atoms received in the form of the use
of property as part of persons COM
pensation are taxable to the extent of
the value of such considerations. For
instance, a minister of the gospel or
anyone else who receives his compenSa-
ton in cash salary plus the use of a
dwelling house, must include the rental
value of such dwelling house in his
gross income. Marriage fees, baptisrnal
offerings, and other amounts received
by clergyman or religious worker for
services rendered are taxable income.
However contributions made by one to
whom no services had been rendered
are gifts and are not taxable.
An employee of corporation who
receives compensation in the form of
capital stock of such corporation is re-
quired to include the market value of
such stock at the date of its receipt by
him in his income. Notes received in
payment for services are to be in
Guided in gross income to the amount of
their fair market value at the date of
receipt. Patronage dividends dis
tributed by cooperative associations are
taxable income to the Recipients.
A taxpayer who sells his home during
the year must include the profit on the
sale in his income. If the sale results
in loss, such loss may be deducted
from his income In general, the term
gross income" includes all income de-
rived from any source whatsoever, with
the following exceptions: The value of
property acquired by gift or Inheritance
is not to he included in gross income
Amounts received under accident or
health insurance contracts, workmens
compensation acts, or by way of
damages received in any suit or agree
ment in payment of personal injuries or
sickness of the taxpayer are exempt
from tax. Amounts received as COM
pensation for the death of any member
of the taxpayers family are also
exempt from tax.
Pensions, family allotments, or other
similar allowances received from either
the Federal government of the State
of Minnesota are exempt from tax
Tax exempt interest includes interest
received from the State of Minnesota
or the United States government. This
exemption does not apply, however, to
interest received from other states, nor
does not apply to gains derived from the
sale of tax exempt securities
Salaries of Federal employees are
not taxable. In determining who is
a Federal employee, 1T is necessary to
inquire into the character of the or
ganization by which such person is
In general, if the organi-
zation is branch of the Federal
government, the employee would be
considered to be exempt from tax.
Amounts deducted from wages of
employees under plan of umemploy-
ment insurance are not considered in
come of such employees and they Should
report only the net amount of wages
received. But deductions from wages
to be paid into pension funds. or any
fund except unemployment insurance,
are to be reported as income just as
though such amounts had been received
as cash wages. State employees, how
ever, are exempted from tax ON con-
tributions to State Retirement funds.
Reasonable and necessary travelling
expenses incurred by a taxpayer solely
on business. including railroad fares,
meals and lodging, are deductible ex-
penses. Railroad trainmen and others
similarly employed are permitted to
deduct the cost of board and lodging
while away from home on duty. If an
individual is reimbursed by his en-
ployer for his travelling expenses. such
expenses cannot be deducted from his
income. The cost of such travelling ex-
penSes would be deductible by the en-
ployer. Any taxpayer claiming de-
duction for travelling expenses must at