Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1943-01-08


this series of articles By attorney
IN constructive.
This is the first of the serte
kindly contributed to the Toledo
the aUorkers of Local ~.
1t may appear strange that ar
pear in trade union paper. Yet,
hardest hit by the new income ia
which has not been particularly h
the working people of America b
Congress gave to corporations is
not even vet suspected by the peo-
n,e of the United States. The pro-
vision which allows railroads ana
other large corporate interests 10
huv in their own bonds without
even being required to pay a pro-
fit tax on the savings, grants a
fabulous saving to corporations
whose earnings from war business
are already enormous.
But the worker is faced with the
approach of March 10, l943 When
his report must be filled, and ms
first installment paid! Although
the individuals tax is higher TINS
wear than ever before each Ameri-
can will pay his or her share Will
inely and with the satisfaction
that he is contributing to the com
plete victory over fascism' Eaeh
American is expected to prepare a
correct return setting forth all
proper information, accurately
This means that you may properly
be as careful and frugal with your
government as you would be with
others. The law requires you to re-
port your income and the govern
ment expects you to take your
legal exemptions. Obviously the
man or woman who keeps COM
plete records is in the best position
to show his income, his expendl-
lures, and take his exemptions,
With the advent of the new year
accurate household and other re-
cord keeping assumes even great
er Importance.
The Internal Revenue Depart
ment expects vast increase IN the
number of persons required to
file an income tax return in 1943.
A single person is required TO file
a return il his or her income for
the year 1912 was $4,000 or more.
This, incidentally, amounts to an
income of only 1892 a week. A
married man living with his wife
during any part of the year of
1912 must file a return If his gross
income for the year amounts TO
$4,000 or more, or an average
weekly income of $23.08 per week.
Tables showing the graduated tax
are appended to the new form and
will not be reproduced here. This
article will briefly outline some of
the features of the new tax bill.
Wage earners will again be given
an option in the form TO be filed.
If your gross income of 1912 was
100000 or less and (a) all your
income was from personal services
(wages, salaries, fees, etc., divi-
dends, interest, or annuities (b)
you were not engaged in a busi-
ness either alone or in partner
ship and (c) you had no gains
or losses from the sale of property,
real or personal and (d) you re-
port your income on a cash basis
for the calender year, you may
choose whether you will file
your report on Form l040 or
1040 A. While you have the mat
ter in mind it would be we'll for
you to write TO the Internal Reye-
nue. Department, Federal Build
ing, Toledo, Ohio and ask them
to mail you the Form required.
If you have a difficult problem
you, of course, will desire help
and that can be obtained either
by consulting an attorney or an
accountant, or go directly to the
Internal Revenue Department. The
charge of attorneys for prepar-
ing and filing individual returns
usually vary from $500 10 $1,000.
The optional Form A is again
a simplified version which can be
filled out without difficulty. You
must list only your gross income
without deductions. You then find
the tax you have to pay by look
ing up your gross income tless a
$3s5.o0 credit for dependents) in
a table provided on the back of
the form. In this table, the gov
ernment automatically credits you
with deductions figured as about
SO of your gross income. IL is
obvious, therefore, that if your
ordinary deductions would amount
to more than six per cent Of your
gross income, it would not be adj
visable to use the optional form,
number 1040 A, but you would
use the regular Form 1040. 1t
will again be advisable for you to
give careful consideration to the
L