The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-02-19

employer will deduct from your
pay check 8 per cent Of the
amount which exceeds the portion
Of the 1894 exemption which Il
applicable to that pay period. In
other words, II you are paid
weekly the employer will deduct
5 per cent Of the excess over $i1
(1-62 OF $624).
Because you may receive In
come from sources other than
your wages, or for other rea-
sons, the amount which the en-
ployer deducts from your wages
may not correspond exactly to
the Victory Tax which you are
required 10 pay. Therefore, at
the end Of each year an adjust.
iaent must be made.
EMPLOYEE PAYS TOO
You viii Ale Q Victory Tax re.
turn, and II the amount which the
employer has deducted and paid
over to the government is not
enough, you will be required to pay
the additional Victory Tax at that
time. II the amount which the
employer has deducted Is too much,
the excess over the Victory Tax will
he applied on your ordinary income
tax. Or II you do not owe any In
come tax, IL will be refunded to you.
The Victory Tax return which
you Ale at the end Of the year will
loe figured on Victory Tax net In
come. In most cases this will be
almost the same as your gross in
come Tor ordinary income tax pir-
poses.
TO figure your Victory Tax net
income, you begin with gross In
come, excluding capital gains and
losses. II you use the optional
Form i040A In reporting your In
come for ordinary tax purposes,
your Victory Tax net income is
your gross income shown on that
return. II, however, you use Form
1910 you are entitled to certain de-
auctions.
PERSONAL LOAN LIABLE
First, you are entitled to. de-
duct the business expenses which
you subtracted from salaries and
other compensation for personal
services on line Of Form l04O,
or which you deducted from rents
and sOsN1eieS on 1ne Q. r sou
are not conducting your own busi-
ness, those are the only deductions
which you are entitled to, except
that ycu may deduct the expenses of
producing income which you includ-
- as~arvae, ekYamx GaSlpuak3aVAH nVa NfVNA
IT Of Form I040 If you are paying
aliinony and were entitled to deduct
that for ordinary income tax prlr-
poses, you also may deduct it for the
Victory Tax.
If you are carrying on your
own business there are certain other
items which you are entitled to de-
duct for Victory Tax purposes. You
may deduct the expenses which you
deducted In arriving at income from
business which you entered on line
Q OF Form lO40. You may also de-
duct taxes, interest. losses and bad
debts connected with carrying on
your trade or business. You may not
deduct non-business taxes, principal
or interest on personal loans, or bad
debts whge the loan was not made
as Q part Of your business.
Other business expenses which
you may deduct II determining the
income upon which Victory Tax q
70 be paid are depreciation. deple-
ton, contributions made b. you e.
an employer - Q pension fund Tor
your esnployes, The operating loas Of
your business which Was carried
o#ng from q pgssioue year and
ths amount which you deducted Coz
ordinary income tex purposes scg
the emogtisatlcn of eEAsgssney g.
cilllaes.
HaVing suhtTacted TIE Deductions
70 whlch 700 are entitled from your
gross income % arrive 60 Victory
Tax net income, sou then subtract
the oe9a which "A tai exempt % ar
rive e the auln upon which ne !
Per cent tax u 10 be paid, multiply
ihs remainder ~ 3 per cent end thar
& To.fF Vielers Tax.