Evening star., 1941-11-23
Record Simplified
For Anticipated
u Million Payers
Nv HAROLD r. ROGERS.

millions of Americans will figure
out how much they owe Uncle Sam
was made public last night by the
Treasury Department.
Based on the new Internal Rev.
enue Act approved September 20 by
President Roosevelt, the new return
calls for the heaviest total income
taxes in the history of the United
States. 1t will dig deeper into the
pockets of the loWer-salaried than
any previous levy.
Exemptions never were so low
81 500 for married persons and $3.50
for single. Thousands who never
paid before will be taxed. The re-
turn. for income in the calendar
year 1941, is due on or before March
Is, with at least one-fourth Of the
| tax.
The new form. known as 1890
may be used by any one of the esti-
mated % 600, 900 people who are ex-
pected to help pay for the Govern
ment's tremendous defense program.
It is one of two different forms
offered the public under the new
/ tax law
Second Form Simpler.
/ The other form, more simplif1ed
return known as 1040-A. previously
made public in its tentative form,
may be used by income taxpayers
/ whose income is $1,000 or less and
! is wholly derived from salaries,
wages. other compensation for per-
/ Sonal services. dividends. interests.
rents, annuities or royalties 1t
carries table for quick computa-
ton of tax. But estates. trusts and
nonresident aliens may not use
the single-sheet form l040-A.
The new three-sheet form dis
closed last night shows any tax
payer for the first time how he
may figure how much tax he will
owe the Government on this years
income. From this return may be
figured the two different taxes nov
levied on incomes. the normal tax
of per cent and the surtax which
starts at per cent and runs up to
a top Of II per cent.
An important thing for every tax
payer with gross income under
$4,000 to know is how he may select
which one of the two different forms
he desires to use Persons who have
made careful study of the two
forms have discovered that CON-
putting the actual tax on the tWc
different forms usually brings twc
different answers. The taxpayer
with a gross income of 1000 or less
has the privilege of paying either
one Thus. If such man is willing
to do some extra computing. anc
perhaps a lot more head scratching
he can figure out which one of the
two forms to select so as TO pay the
lower tax.
Decision Must Stand.
The .law provides. however. that
having elected one form or the other
and filed q return. there is no re-
course to switching to the other
form and amending the return to
claim a lower tax. The law in this
matter referring to the simplified
AolAl Go says t1IS
choice shall be considered to have
been made if the taxpayer files the
return prescribed for this supple
ment and such election shall be ir-
revocable. If the taxpayer for any
taxable year has filed a return COM
putting his tax without regard to
this supplement. he may not there
after elect for such year to compute
his tax under this supplement"
There is a curious feature Of the
new form as it will work out In ap-
plying the surtax. In some cases a
single man would be subject to the
surtax of per cent but not to the
normal tax OF per cent. This re-
verses the traditionally accepted no.
ton of surtax, which formerly ap-
piled only to the higher brackets on
persons making larger salaries. The
surtax on 1910 incomes applied only
above $4,000
This year, the surtax falls on al
taxable income even more than the
normal tax. Take. for instance q
single man with an income of $500
He gets an exemption as a single
person of $3.50. This leaves him g
so-called "surtax net income" of $50
on which the surtax of per cent
is 50.
But in computing this mans nor
mai tax, he is allowed 10 per cent
earned income credit" which
amounts to 10 per cent of his in.
come Of $500, or $50 Subtract both
the $3.50 and the $50 from his tota
income of $500, and the man has M
income subject to the normal tax O.
per cent.
Separate Returns Allowed.
The new tax return permits hus
bands and wives to file separate re
turns, as a big drive in Congress t.
force them to file a joint return il
order to force higher taxes. failed o
enactment. In filing separate re
turns husbands and wives may es
cape the higher Surtaxes which the
would have had to pay If they ha'
filed a joint return.
Even the three page tax return ha
been simplified this year so tha
persons whose income is entirel
from salaries and other compenSa
ton for personal service, dividend:
interest, rents. royalties and an
nuities may fill in pages one AM
two of the new form. and disregar'
the remaining two pages. The form
is 50 printed that in such cases tn
taxpayer may tear off the secon'
sheet of the form on which page
three and four are printed ant
file only the first sheet. The thlr'
sheet also printed on both sides
contains instructions and the sur
tax tables.
Taxpayers who have income o
losses from other sources, such a
from business or sale or eXchang
of capital assets, will fill out tn
entire four pages of the form.
Printing is being rushed at tn
Government Printing Office so tn
forms will be in the hands of collec
tors of internal revenue by Janu
ary l. They are not available ye
for the public. 1t is understoo
forms will be mailed out later t
all taxpayers now of record.
The Bureau of Internal Reyenl]