The Waterbury Democrat., 1945-01-08
YOUR FEDERAL INCOME TAX OUR INCOME TAX SYSTEM
 No. {
THE REGULAR RETURN

or more; or Cb) they received a total of more than $l00 income from dividends, interest. or wages that were not subject to withhold lng, as in the case of investors, 5arm laborers, or domestics; or Co they received any amount of in- come from other sources, as in the ease of doctors. lawyers, landlords, shopkeepers, annuitants, etc; or (d) they had business expenses dnclud- ing travelling or reimbursed expens- es in connection with employment which cannot be shown in Form wa, RevO, or rental expenses, or losses from sale or exchange of property, to deduct from gross in- come in computing the adjusted gross income on which the tax table is based; or (e) they had allowable personal deductions which Hre greater than the 10 percent stand ard deduction and they wish to secure the full tax benefit from deducting such expenses and com putting the resulting tax.
 2. Those who are eligible to use the withholding Receipt as a re- turn but wish to itemize their de- ductions or to make their own com putation of tax at once instead of waiting for the collector.
 If you file Form 1940, enter your exemutions in item l on page 1 of the return. Wages and salaries should be entered in item after first deducting, on a separate sheet of paper to be attached to the re- turn, travelling or reimbursed ex- penSes incurred for your employer. Tn items and 3, enter all of your other taxable income, computing item 4 from the schedule on page 8 of the return. such as annuities or pensions (Schedule A, rents or royalties (Schedule B. business or professional income (Schedule O, gains and losses from sales or ex- changes of property (Schedule D, and income from partnerships, es- tates and trusts. and miscellaneous sources (Schedule E). These sched- ules, when filled in, automatically show the resulting adjusted gross income" (gross income after deduct ing certain eXpenscs) of reach class of income, and the total adjusted gross income (the sum om items 2, 3, and A should be entered in item 5 on page 1.
 ShOrt-FOrm Return on Form 1040
 If your adjusted gross income is less than 5000 and the total Of your allowable personal expenses deductible from adjusted gross in- come, such as charitable contribu- tions, interest taxes, medical eX- pessAssse -eaEualty losses, and miscel- laneous items. is not more than 10 percent of such income, you need not show or itemize these deduc- tions, but may use shortcut method of finding your tax in the tax table on page 2 of the return, which automatically allows you the benefit both of your exemptions and of the 10 percent standard deduc- tion. After finding your tax in the table, you may tear off the page on which the table is printed, leav- ing only 1-page return to be com- pleted and filed, with supporting income schedules on the back A husband and wife may file joint Short-form return and thus make use of the tax table if their com bined adjusted gross income is less than 5000, but if they file sepa- rate returns, either one may use this ahort-form return based on the tax table provided the other does not itemize deductions in a long form return.
 In determining the income tax on this short form return, it is nec- eSsary to list on the return only the names of persons for whom eXemp- tionS are claimed, the employers and the amount of income received from each, and the adjusted gross the typical wage or salary earner with no business deductions outside of his employment, his total in- come will also be his adjusted gross income. Other taxpayers should use the schedules on page of the re- turn or attach securely to the re- turn an itemized list of the bus mess or other deductions. if any that are claimed from total gross income in computing the adjusted gross income reported.
 The Short-form return based on the tax table cannot be used by a non resident alien, an estate, trust, a citizen claiming special tax treatment because of income re- ceived in a possession of the United States. a person making a return for short taxable year because of a change in the accounting period or person whose wife or husband itemizes allowable personal deduc- tions in computing net income.
 Prior law did not permit the use of the tax table by persons making returns on the accrual basis, or for a fiscal year, or for period of less than i2 months. For l944 and later years, however, these restrictions are removed except where a return is for a short period due to a change of accounting period. Ac- cOrdingly, the final return Of a de- cedent, for a period beginning af- ter December 3l, l943. to the date of his death. may now be made on the short form return if his ad- juSted gross income is less than S5,OO0.
 LOng-FOrm Return on Form l04O
 1T your adJuSIeu gross income IS less than 5000 but you are not sat- isfied with the standard deduction, and therefore wish to itemize and claim all of your deductions, yoIl should make long-form return on Form lO40, using the detailed tax compilation on page { instead of the tax table on page ?. If you file long Form l040 return you must itemize your allowable personal de- auctions, whereas if you wish to take advantage of the standard de- dllction you should file either the simplified Withholding Receipt re- turn on Form W-2 lRey) or the short Form i040 return. as the case may be.
 The long Form IO40 return should be used by every taxpayer who has