The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-03-01
Details Of State Income
Tax Law Are Explained
Time for Filing Reports Extended
Interesting Data to Guard
Citizens

A general extension of time to
April 18th has been granted by the
Minnesota Tax Commission for the
purpose of fling State Income Tax
returns which were due on Marcn
15tn. Taxpayers who desire to take
advantage OF this extension of time
will be charged intesest at percent
Tor the tnlrry DAY extension on any
tax which would otherwise have
been due and payable on March Is.
Every person is required to file
a return on his net income in excess
of $1,000 it single; or $1,000 if mar
ried or if he is the head of house
hold. All taxpayers are required to
Tile returns ii their gross income
exceeds $4,000 irrespective of wheth-
er or not they have any net in
come. A credit of $3.50 is allowed
tor each person (other than hus-
band or wite) dependent upon re-
ceiving his chief support from the
taxpayer.
Salaries of officers and employ
ees of the State of Minnesota or any
of the cities, towns, or other SUBJ
divisions or agencies of the State
are subject to tax. A taxable in
come in an amount equal to the
value of such things. Considera-
tons received in the form of the
use of property as part of per-
sons compensation are taxable to
the extent of the value of such con-
siderations. For instance, a min
lister of the gospel or anyone else
who receives his compensation In
cash salary plus the use of a dwell
ing house, must include the rental
value of such dwelling house in his
gross income. Marriage fees, bap-
tismal offerings, and other amounts
received by a clergyman or relig.
ious worker for services rendered.
are taxable income. However. con-
tributions made by one to whom no
services had been rendered are
gifts and are not taxable.
AN employee of a corporation
who receives compensation in the
form of capital stocA of such cor
poration is required to include the
market value of such stock at the
date of its receipt by him in this
income. Notes received in paymen.
for services are to be included in
gross income to the amount OF
their fair market value at the date
of receipt. Patronage dividends
distributed by cooperative associa"
tions are taxable income to the re-
cipients.
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 in
come. In general, the term gross
income" includes all income deriv-
ed from any source whatsoever,
with the following exceptions: The
value of property acquired by gift
or inheritance is not to be includ-
ed in gross income. Amounts re-
ceived under accident or health in
surance contracts, workmens' COM
pensation acts, or by way of dam
ages received in any suit or agree
ment in payment of personal in
juries or sickness of the taxpayer
are exempt from tax. Amounts re-
ceived as compensation for the
death of any member of the tax
payers family are also exempt from
tax.
Pensions, family allotments, or
other similar allowances received
from either the Federal govern
ment or the State of Minnesota are
exempt from tax. Tax exempt in
terest includes interest received
from the State of Minnesota or the
United States government. This ex-
emption does not apply, however,
to interest received from other
states, nor does it apply to gains
derived from the sale of tax ex-
empt securities. :~"5
Salaries of Federal employees are
not taxable. In determining who
is a Federal employee, it is neces-
sary to inquire into the character
of the organization by which such
person is employed. In general, if
the organization is a branch of the
Federal government, the employee
would be considered to be exempt
from tax. i
Amounts deducted from wages of
employees under plan of unem-
ployment insurance are not consid-
cred income of such employees and
they should report only the net
amount of wages received. But de-
auctions from wages to be paid in
to pension funds, or any fund OK
cept unemployment insurance, are
to be reported as income just as
though such amounts had been re-
ceived as cash wages. State en-
ployees, however. are exempted
from tax on contributions to State