Evening star., 1944-01-17
Your U. 5. Income Tax
lThia Is No. Is of a Series !

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When the pay-as-you-go system
of income tax collections started
last year you already owed your
1912 tax. To relieve you of paying
both your l942 and l943 taxes. in
the same year. Congress decided to
forgive part Of one years tax.
Your 1943 tax return will show
you how to figure how much tax
was forgiven and how much of it
you still owe. In general, you will
compare your 1912 tax with the tax
on your 1943 income to determine
which is larger and which is smaller,
You will be forgiven part of the
smaller years tax, and then you
will owe the unforgiven portion of
the smaller years tax plus all of
the larger years tax.
However, you will credit against
these tax liabilities (a) any pay
ments you made on your 1942 tax
(probably instailments paid In
March and June, 1943), (b) any in
come and victory taxes withheld in
1943 from your wages by your en-
ployer, and Co any estimated tax
you may have paid in September
and December, 1943. u
If, after taking these credits, you
owe balance, you can postpone for
one year without interest) any part
of the balance up to one-half of the
amount of the unforgiven portion
of the smaller years tax.
The eamount of your forgiveness
depends on the size of the smaller
years tax, and on whether you are
in the armed forces. However, in
the vast majority of instances, the
forgiveness will be simply IS per
cent of the smaller years tax. Nat
urally, if you had no tax for one of
the two years, 1912 or 1943, you
have nothing to be forgiven.
Here are the methods of figuring
tax forgiveness:
l. If the smaller years tax was
$50 or less, 1t is all forgiven.
2. If the smaller years tax was
more than $50 but less than $6668,
the forgiveness is a fiat $50.
3.If the smaller years tax was
more than $66.67, the forgiveness is
rs per cent.
4. If you were in any of the armed
forces in active service at any time
during either 1912 or l943, and your
1912 tax was larger than the tax on
your 1943 income, your forgiveness
Gas described in the three preceding
is increased by recon-
putting your 1912 tax to eliminate
as much of its excess over the l943
tax as is due to earned net income.
This may result in the 1912 tax as
recomputed being no greater than
the 1943 tax.
Special rules apply in those in
stances in which a married couple
filed either joint or separate returns
for 1942, but are filing differently for
l943.
In the first place, they need to
know how to enter the 1912 tax.
If they filed separately for 1912
and are filing jointly for 1943, they
should add their 1912 taxes, and
enter the total as their joint 1912
tax on their 1943 return.
II they filed jointly for 1912 and
are filing separately for 1943, and
the joint 1942 tax was smaller than
the total of their separate 1943 taxes,
they may divide the joint 1912 tax
between them in any proportion
they desire, so long as neithers share
exceeds his l943 tax. If they filed
jointly for 1912 and are filing sepa-
rately for l943, and the joint 1912
tax was larger than the total of
their separate 1943 taxes, then the
difference may be divided between
them, and each should report, as
his 1912 tax, his share of the differ
ence plus the amount of his i943
tax.
In the second place, they need to
know how to figure their forgive
ness.
If they flied separately for 1912
and are filing jointly for 1943, they
figure their forgiveness the same
as a married couple which had filed
jointly in both years. But if they
filed Jointly for 1912. and are filing
separately for 1943, they must figure
their forgiveness together, find how
much unforgiven tax they owe to-
gether, and then divide the unfor-
given tax between them In this last
instance, the joint figuring must be
shown on both returns and a state
ment must be attached showing how