The Waterbury Democrat., 1945-01-16

termine whether to file Form 1O40 or your Withholding Receipt. The schedule for this purpose, at the bottom of Page 4, is clear and sim- pie. Take one line at 8 time, do exactly what is directed, and 1t would be hard to go wrong.
 Line Enter the amount shown by Item 5, Page l, as total income.
 Line Eff your income was un- der $5000, enter your total deduc- tions from Page 4. If your income was $5000 or over, you have a choice: enter either your total de- ductions or $500. whichever is greater.
 Line 3-Subtract the amount on Line from that on Line 1.
 Line 4-Multiply $500 by the number of exemptions listed in Item l, Page l, including yourself.
 Line 5-Subtract amount on Line 4 from that on Line 3.
 Line 6-Near bottom of Page 4 of Instruction Sheet that comes with Form 1040 is a surtax table. From it get the surtax on the amount on Line 5. For example: The surtax net income on Line is $l287 .83. The table shows the tax on any amount up to $2OOO is 20 per cent. Take 20 per cent of $1287.83, or $257.57, for Line 6. But if the amount on Line were $330251. which is over $20OO but less than $4O0O (se surtax table) you would take $400 plus 9 per cent ot $13O251 or $400 plus $28655, and get $686.55 for Line 6.
 Line 7-Almost nobody using these articles has such interest. Un- less you do, on this line copy the figure from Line 3.
 Line 8-If all the income was yours, enter 500. If you and your wife each had at least $500, enter 5000. If one of you had at leas. $500 and the other less, add the smaller income to $500 to get the entry for this line. If you and your wife each had less than $500. add the two incomes together for Line 8.
 Line 9-Subtract amount on Line from that on Line 2.
 Line 10-Multiply amount on Line by 3 per cent.
 Line 11-Add amounts on Lines and 10. This probably is your tax. So few are affected by Lines 12 to Is that l shall ignore them. SELECT SMALLEST TAX
 Now, if you are eligible to file the Withholding Receipt, compare the tax you have just worked out Cline ID with that given in the table for your income and your ex- emptions. Select whichever Is smaller. If the Withholding Re- ceipt tax is smaller, throw away Form 104O.
 If you chose to file Form lO40 or are required to, turn to Page l and complete the return.
 If your income was as much as $5OOO, as Item on Page ] enter the tax shown on Line IS (prob- ably the same as on Line ID on Page 4.
 YOuT 1AlCOlIlC Wdc AS~oo OAASSAA $5OOO, as Item enter either the tax shown on Line IS, Page 4, or the tax taken from the table without figuring your deductions and ere ditS.
 Item Ion Line A enter the total tax withheld by all of your and your wife's employers, and attach the Forms W-2. On Line B record any payments made with tax estim- ates, including any credits due you on account of 1943 overpayment Of taxes. Add the amounts on A and B and carry the total into the right hand column.
 If your tax Qtem 6) is greater than your payments Qtem D, sub tract Item ' from Item 6 and write the remainder as Item 8, ignoring Item g. Then Item 8 is what you must pay, in full, with Form lO4o, not later than March l5.
 ASK FOR REFUND
 If your payments Qtem D are greater than your tax Qtem 6), sup tract 6 from and enter the differ ence as Item g, ignoring Item g. Then Item is what Uncle Sam owes you.
 You can ask to have any sum shown as Item refunded to you, or can have 1t credited against lS45 tax estimates if you think lS45 wtthholdings will not coVsr your lsA5 tax liabilities.
 In view of the increased with holding rate, most persons in the s5OOO and under class will not have any substantial deficiency next