Henderson daily dispatch., 1944-04-05
Your Estimated
Income Tax
No. I.
TIE DECLARATION OF
OF ESTIMATED TAN
ITS PURPOSE

On o. before April 10. 1911. fiji
teen million people (including Scrv-
!ccmen who have taxable income
after excluding the firs, 81 500 of
service pay) must file declarations
OF estimated income and victory
taxes tog l9l4 and make Il quarterly
payment ON the basis of those de-
claraiionS. Originally due ON March
ID. the declarations were postponed
until April 10 III order 10 include
provisions of the new revenue bill,
the Revenue Act of 1913. which did
not become law until February -.
1914 and which changed in some
respects The basis for estimating the
1911 TAX. Certain farmers may elect
To wait until December Is before
they file. and persons who are out
side the continental United States
on April ID need not file their de-
claratlon al that time.
The 1914 declaration forms. Form
lO+O-ES. are printed slips 81 X 8
inches. similar i'll appearance and
general contents as the forms used
for thc 1913 declarations in Sep
temD"r and December. 1913 Tney
have been mailed 10 all persons who
filed declarations last year. TaXpay-
crs vino arc required To file for the
iirSt time this year may obtain
copies from any collector OF internal
revenue. together With work sheets
which will bc of assistance in pre-
pairing the estimate OF tax foy 1914.
These declarations arc par, o. the
nHE-:IS- I-pn nt
tionS which enable every TAXPAYER.
so far as possible, 10 keep suDstan-
TALLY up 10 date on his income tax
payments. The income tax is a maiu..
part OF the Federal governments
method Of paying for the war and
all other governmental costs. OF the
% million people vino filed tax re-
turns for 1913. the majority had
their taxes paid in full through
withholding from their wages With
holding, however, covers only the
normal income tax at 6"c. the Surtdx
al the lowest bracket rate OF l3G
and the victory tax at 81, People
with income III the higher brackets
must therefore make additional pay
mcntS during the year in order 10
keep current and not lall behind in
thcN tax payments.
Furthermore. Withholding aDplicS
only To certain wages and salaries.
and not 10 (a) wage, and saEtric,
paid 10 such persons as members
OF the armed forces. cIcreyNcn. az
rIcuiiural labor. and dOnc>ticS, nor
10 Co other forms of income. Sucn
as business profits. rclurns from
farming. interest, dividends. and
rents. Since taxes are not usually
collected al the source from such
incomes, the declarations with their
quarterly payments have the I'M
poriant function Of keeping people
with income from these sources uD
10 date with their tax payments for
1914. Since the amount of tax due
tor the year cannot be known at
this time. the law provides that the
current quarterly payments shall be
made on the basis OF an estimate
and after the close of the year the
. taxpayer can then determine his tax
liability on the basis o! actual fig
urcS as shown IN his regular income
tax return Tor the year.
When The declaration is filed
showing the taxpayers estimate OF
his probable taX Tor 1914. Il should
be accompanied by the frs, quar-
icrly ln>tallmcnt payment q. csti-
mated lax. and the remainder of the
lax >hOGld be paid on on before June
10. September -. aui DcccmD,r -.
Thus the current payment of est
mated tax ,ur 1914 To- DC made on
or Dcior" April - Is entirely SEP.
aratc and distinct lrom the payment.
If any. made on ur before March l5.
l9ii on account oi the 1913 tax.
In making an estimate OF prob
able 1914 tax this early IN the year.
taxpayers may feel that they arc
unable Ia make an accurate cSi.-
mate because OF unforeseen changes
/ that may occur later IN the year. Il
i not required. however. that the
estimate be absolutely accurate. tor
/ the laW permits an estimate 10 bc
made without penalty for undcrcs-
tmatlng (D II II is al least 80 per
cent correct Cor &c 2-3 percent cor
rect III the case of iMmCrsD. or (b)
. If il Is computed on last years IN
come at this yCar'S rates and CX-
cnptIonS, and is paid on time IN
quarterly nStallmCItS ur j. paid
ahead of time Cor, in the case of
farmers, is paid ON or before tho
18th day of the last month OF the
taxable year,.
In estimating his tax. each tan
payer should consider the. facts and
circumstances existing at the time
prescribed for filing the dCcldrat ion.
For instance. Il person employed al
That time al - given wage or salary
should presume for the purposes Of
the declaration, III the absence of
facts indicating the contrary. that
his pay will continue unchanged
To the end of tho year. II nc owns
shares Of stock ON which he has
received dividends regularly for
several years. he Shuuld. III the alb
ScnCC OF information indicating q
change III the dividend policy. in