The midland journal. (Rising Sun, Md.) 1885-1947, 1943-07-09
Questions
And
Answers
On The Withholding Tax
That May Prove
Helpful

Still confused about the new pay
as-you-go income tax system, which
went into effect July l? Here are
the answers to some of the most fire.
Quently asked questions:
els the Withholding tax new
or additional levy?
A.-No. 1t is simply method of
income tax and Victory tax.
Q.-Does the 20 percent withhold
ing mean that 20 percent of my pay
check will be withheld each pay day?
A-No. Exemptions, even for a
single man with no dependents,
bring the amount considerably lower.
Q.-What are the exemptions?
A.-For single persons 1924 a
year, for married persons $1,248
and for each dependent 1912. On a
weekly basis of $12 for single per-
son, $24 for married person and Sc
for each dependent.
Q.-How does the exemption work
if both my wife and are employed?
A.-The personal exemption may
be divided and each take one half,
or one may claim ALL Each has the
same Victory tax exemption.
Q.-What happens to the first and
second quarterly installments l paid
March Is and June Is on my 1912
tax liability?
A.-Both are treated as part pay
ment of the 1943 tax.
Q.-What happens if my exemp-
ton status, which I filed with my
employer, changes?
A.-You should furnish your en-
ployer with a new Withholding ex-
emption certificate within 10 days
of such change.
Q.-Will exactly 20 percent of my
pay above my exemption be with
held?
A-Not necessarily. Your employ
er may elect to use wage bracket
tables which vary slightly from exact
computations. This shortcut method
is provided to simplify your employ
er's job of computing the amount to
be withheld for each worker.
Q.-Hasn't large part of my last
years tax been cancelled?
A.-Yes. From rs to 100 per cent,
depending upon the amont of your
taxes for the years 1912 and 1913
Q.-When will the part not can
celled have to be paid?
A.-You will pay it in equal parts
in March, 1914, and March, 1945.
Q.-Does my employer have the
use of my money he has withheld?
A-No. The money is a special
fund in trust for the United States
and is turned over by your employ
er to the Treasury, representing
your credit against the amount you
owe on income and Victory tax.
Q.-What proof have that l have
that much credit against my tax liza
bility?
A.-Shortly after the close of the
year or termination of your employ
ment your employer will furnish
you a receipt showing the amount
he has Withheld from your pay.
OWN I have to continue to
file a regular income tax return on
March Is as in the past?
A.-Yes. The Withholding levy is
simply a method to collect approx
mately the amount you will owe, but
you must make final return just
as in former years.
Q-Suppose when I make my re-
turn next March / find that more
than enough to pay my tax has been
withheld?
A.-The excess amount either
will be refunded to you or credited
against other income taxes due from
you.
Q.-Are any workers exempt from
the withholding tax?
A.-Yes. Certain specified classes.
including members of the armed
forces, farm labor, domestic SER
wants and ministers of the gospel.
Q.-How can / continue my reg
ular purchase of war bonds through
the payroll savings plan now that
the withholding tax is going into
effect?
Alt should be just as easy as
II has been in the past since this is
not an additional tax but merely an
installment of pay-as-you-go method
of paying your regular annual income
tar