Evening star., 1946-01-06
Final Tax Estimates
On 1945 Income
Due January IS
BY the Associated Press.

Many Americans nave UuSlIlcoS W
transact with Uncle Sam by January
Is. That's the last day for filing final
estimates of 1945 income tax and for
making the last quarterly payment
of estimated tax.
Persons who must make tax esti-
mates are largely farmers, business
men, storekeepers, investors, lawyers,
doctors, domestic workers and farm
workers. The vast majority of wage
earners are not required to make tax
estimates.
Most persons In the tax estimating
class were supposed to file their first
guess" Of 1945 income tax and make
a quarterly payment last March Is.
Similar payments and revised esti-
mates Gf necessary were due June
IS and September Is.
Correct Previous Estimates.
The January Is declaration gives
the taxpayer an opportunity to cor
rece his previous estimates and pay
the final installment of estimated
tax.
A January Is estimate is not re-
quired from those who made pre-
vious estimate unless they wish to
revise, or amend that estimate. Like
wise, If the estimated tax already
has been paid in full, obviously no
payment is required on January Is.
However, for most farmers, the
January Is estimate will be their
first on 1945 income. Those who re-
ceive more than two-thirds of their
income from farming are allowed to
postpone their estimate of 1945 in
come tax until then.
Moreover, if they file their regular
1945 tax return by January Is and
pay the tax due, they can save
themselves additional work. In that
case, the return will serve both as
a return and q declaration, and a
separate declaration need not be
filed.
Regular Return Permitted.
Other tax estimators also may file
a regular return (Form 104O on
or before January Is instead Of q
declaration, and clear up their tax
situation for 1945. Otherwise they
may have to file an amended dec
laration by January Is and a regu-
lar return by March is.
Those required to file declarations
of estimated tax for 1945 were:
l. Every, person who was receiv-
ing or expected to receive, in 1945,
wages in excess of $1,000 plus $500
for each exemption except his own.
2. Every person who received or
expected to receive in 1945 more
than $100 income from sources other
than wages subject to withholding,
providing his total income amounted
to $500 or more.
For example, If you were single
and received only wages subject to
withholding you didn't need to file
. declaIa alton unless you received
more than $96.15 a week.
II you were married and had
no dependents, you didn't have to
file a. declaration unless you earned
more than $105.76 week or $458.33
month.
If you were married and had two
dependent children, you didn't have
to file q declaration unless your
wages for the year were more than
$500. That's assuming you didn't
receive more than 500 In income
outside of wages subject to with
holding.
On the other hand, If your wages
we're $2,500-or any other amount
and you received more, than 500
from dividends, interest, rents or
other sources apart from wages,
you were required TO file a declara-
ton Of estimated tax. That's pro-
viding, of course that your total
income for 1s45 amounted to $500
or more.
In estimating tax or revising your
estimate, it's important to remem-
Der that the new lower taxes do not
apply to 1945 income. The reduced
taxes are effective on income re-
ceived on and after January l, 1916.
You use the lower tax rates when
you estimate your tax for 1916 in
the March Is declaration.
Penalty May Be Imposed.
If after the income tax return
for the year 1S45 (due March 15)
has been filed, it is found that
taxpayer has underestimated his
tax by more than 20 per cent Cor
33h per cent in the case of farmers) ,,
a penalty may be imposed. The
penalty is equal to 6 per cent OF the
shortage in the estimate.
Taxpayers, including members of
the armed forces, who are outside
the continental United States on
January Is will have the usual ex-
.ensions or postponements.
Service pay of all enlisted mill
ary personnel is entirely exempt
rom taxation. No returns or dec
arations are required for such serv-
.ce income.
Declarations and revised declara-
ions of estimated tax are filed on
4 form called 1040-ES. This form
nay be obtained from Internal Rev.
3nue Offices. Copies of this form
nave been mailed by the Internal