Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-03-15
TIME EXTENSION
FOR INCOME TAX


A general extension or time to April
18th has been granted by the Mime
sofa Tax Commission for the purpose
of filing State Income Tax returns
which were due on March Is. Tax
payers who desire to take advantage
of this extension of time will be
charged interest at SO for the thirty
day extension on any tax which would
otherwise 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 $4,000 if married
or if he is the head of household.
All taxpayers are required to file re-
turns if their gross income exceeds
$4,000 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) depend
ent upon and receiving his chief sup
port 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 is an
amount equal to the value of such
things. Considerations received in
the form of the use of property as
part Of a persons compensation are
taxable to the extent Of the value of
such considerations. For instance, il
minister of the gospel or anyone else
who receives his compensation 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. baptismal Of
ferings, and other amounts received
by clergyman or religious worker
for services rendered are taxable in
come. However, contributions made
by one to whom no services had been
rendered are gifts and are not tax
able.
What to Include as Income.
An employe of a corporation who
receives compensation in the form of
capital stock of such corporation is
required to include the market value
of such stock at the date of it's re-
ceipt by him in his income. Notes
received in payment for services are
to be included in gross income to the
amount of their fair market value at
the date of receipt. Patronage divi-
dends distributed by cooperative as
| sociatiOns are taxable income to the
recipients.
A taxpayer who sells his home dur
ing the year must include the profit
| on the sale in his income. IL the
sale results in loss, such loss may
| be deducted from his income. In
general, the term gross income" in
cludes all income derived from any
source whatsoever, with the follow
ing exceptions; the value of property
| acquired by gift or inheritance is not
to be included in gross income.
Amounts received under accident or
health insurance contracts, work
| mems compensation acts, or by way
of damages received in any suit or
| agreement in payment of personal in
juries or sickness of the taxpayer are
exempt from tax. Amounts received
as compensation 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 or the
State of Minnesota are exempt from
tax. Tax exempt interest includes in
terest received from the State of Min
nesOta or the United States govern
ment. This exemption does not apply,
however, to interest received from
other states, nor does it apply to gains
derived from the sale of tax exempt
securities.
Salaries of federal employees are
not taxable. In determining who is a
federal employe, it is necessary to in
quire into the character of the Or
ganization by which such person is
employed. In general, if the organi-
cation is branch of the Federal gov
eminent, the employe would be con-
sidered to be exempt from tax.
Amounts deducted from wages of
employees under a plan of unemploy-
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 in
surance, are to be reported as income
just as though such amounts had been
received as cash wages. State en-
plOyes. however, are exempted from
tax on contributions to State Retire
ment funds.