The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1944-12-28
DID YOU MAKE $500?
Here are Income Tax Game Rule,

WASHINGTON up Here
is an official Treasury eXplana-
ton of the revised feral income
tax collection system which be-
comes effective Jan. l under
the 1914 tax Simplificatlon law.
PURPOSE OF RETURN -
Under the pay-aS-you-go system
of income tax collections, most
individuals pay all or a Substan-
tial part of their income tax dur
ing the year IN which they re-
ceive their income. The tax Is
withheld from their wages or
paid in quarterly inStallmentS as
estimated tax, or both. However,
these payments do not exactly
equal the actual tax liability. 1t
is necessary for each taxpayer
TO file a return at the end of the
year showing his actual tau liza
bility, so that any additional
amount due may be collected or
any over payment may be re-
funded.
WHO MUST FILE-Everyone
(including minorS) whose 1914
income was $500 or more. Others
whose income was less than $500
but had tax withheld from their
wages should file TO get a refund.
WHEN TO FILE - Not later
than March Is, l945. File early.
Service men and women sta
toned outside of the United
States may postpone filing.
WHERE TO FILE - With the
Collector of Internal Revenue in
your district.
FORM OF RETURN - There
are two income tax return forms.
One form is on the Withholding
Receipts, Form W. (RevD, fur
nished by employers to en-
ployees in duplicate. The other
form is the standard return
form, called Form 1040. How
ever, Form 1040 may be used
either as a short or long form
return. Therefore, there are
three ways of making a return
as follows:
!. Withholding Receipt,-Ap-
proximately 30,000,000 persons
are expected to use the new sys-
tenn of making a return by stat
ing their income and exemptions
on their Withholding Receipts,
and permitting the Collector to
compute the tax. The Collector
will give them credit for tax al
ready paid and send either a bill
or a refund check for any diff
ference. If husband and wife
make combined return" on a
Withholding Receipt, the Collec-
tor will figure their tax on either
their combined or separate in
comes, which ever is to the tax
payers advantage. Generally
speaking, use Of a Withholding
Receipt as a return is limited to
persons whose income was less
than $4,000 and virtually all
from wages subject to withhold
ing.
2. Short-Form Return - An
estimated 10000, 900 persons are
expected to make "Short-form
returns" on Form 104O, which
is permitted in the case of any
one whose income was less than
$4,000 regardless of its source.
On short-form return, no de
auctions" are listed (other than
business deductions) and no
arithmetical computation of tax
is necessary, since the tax is
found in a table which auto
matically allows about 10 per
cent of the taxpayers total in
come for deductions" This is
called short form" because
half of the north may be torn
off, and only the top sheet needs
to be filed.
3. Long Form Return. - An
estimated 100000 persons are
expected to make long form"
returns on Form l040. This form
OF return is required in the case
Of any taxpayer whose 1914 in
come was $4,000 or more or who
(regardless Of the source or
amount Of his income) claims de-
auctions amounting to more
than 10 per cent of his income.
DEDUCTIONS - In the case
OF return made on With
holding Receipt or on a short
form Form 1040, the tax will be
figured from a table provided
by law which automatically al
lows about 10 per cent of the
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