The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1944-12-28


taxes, medical expenses, casual
" losses and miscellaneous de-
ductible expenses. Use of those
forms is entirely optional, how
ever, and anyone who claims
larger deductions is entitled TO
itemize and deduct the actual
amount OF his deductible ex-
pcnSes by making a long-form
return on Form l040. Although
required TO make long-form re-
turns, persons with income of
$4,000 or more are permitted by
law to take a standard deduc-
ton of $50 in lieu of itemizing
deductions.
INCOME TAX RATES AND
EXEMPTIONS - The income
tax includes normal tax" and
a "SurtaX' Both are figured as
percentages of income but with
different rates and exemptions
The normal tax is a flat rate of
3 per cent. The surtaX is at
graduated rates ranging from 20
TO 81 per cent. For normal tax,
flat exemption of $500 is al
lowed for each taxpayer. In the
case of joint return of husband
and wife, the combined normal
tax exemption is $1,000 if each
has income of $500 or more: but
if the income Of either was less
than $500, the combined normal
tax exemption is $500 plus the
actual amount of the smaller
income. For surtax, an exemp-
ton of $500 is allowed for the
taxpayer, $500 for his wife and
$500 for each dependent rela-
tive.
TAX EXEMPT INCOME -
On not include in income any
wholly exempt items, such as
mastering out pay, first $500
of active military pay, govern
ment contributions TO monthly
family allowances, pensions and
disability compensation to war
veterans and their families, gifts,
requests, and social security ben
efits.
EXEMPTIONS - Each of the
return forms has a space for
writing the names of the per-
sons foA whom the taxpayer
claims exemptions. He lists his
own name first. Next, if mar
ried, he may list the name of his
wief provided (a) they are MAX
ing joint or combined return
which includes both their in
comes or (b) she had no income
and was not the dependent of
another. In addition, he may list
as dependents all close relatives
who received more than half of
their support from him during
the year, provided the depend
ent did not have $500 or more
income of his own druing the
year. Mote: The 1914 law
changed the rules for claiming
dependents. Principle changes
permit exemption for a depend
ent relative over 10, regardless
of mental or physical condition,
and prohibit an exemption for
dependent who has $500 or more
income or who is not related to
the taxpayer)
MORE THAN ONE RECEIPT
- Persons who changed jobs in
1914 should have one withhold
ing Receipt from each employer.
All of the receipts must be filed
together. However, if return
is made on one of the receipts,
only that one needs TO be filled
out but all other receipts must
be attached to it.
LOST RECEIPTS - Anyone
who has lost a Withholding
Receipt may ask his employer
for a copy. However, if he is
unable to replace it, he is not
permitted to make his return
on receipt but must, instead,
use Form l040.
OLD STYLE RECEIPTS -
During most of 1914, an old-style
of Withholding Receipt, entitled
Statement of Income Tax With
held from Wages" was issued
employees upon leaving their
jobs. Anyone having any old
style receipts should attach them
to his return along with all 9TH
err Withholding Receipts for
1914.
WHERE TO GET FORM 1040
- Copies of Form 1O40 with in
structions will be mailed by col
lectors TO all persons who filed
Declarations of Estimated In
come Tax in December, 1943,
and April, 1914 For the con-
venience of others who may |
need this form, copies may be |
obtained at any collectors Of !
flee, bank or post office, and |
from many employers.
WHERE TO GET HELP =
Information and assistance, if |
needed, can be obtained from |
Collector of Internal Revenue
in any district or from any of |
his branch offices.
BALANCE OF 1913 TAX =
Separate bills will be sent out |
shortly after the first of the year