Evening star., 1948-03-04
Your Income Tax
(Ldst OF a Series.)
By the Asseeioted Press

March Is must:
/. File an estimate ON their 1913
fincome tax. -.
2. And make the first payment
on it.
You'll need form 104oES to file
your 1s48 estimated income tax re-
turn.
Some people, depending on their
case, also will need either form
1040 or the instruction sheet which
goes with it, so they can check the
tax table or the tax rate on the
back Of them.
Suppose your 194S income will be
under 5000. You don't have to
work out the estimated tax step by
step. You'll find the tax on your
income in the table on the back of
form 1040.
If you're In the 5000 or over
class, you work out your 1948 esti-
mated tax-as you did In making
your 1947 return-and find your tax
rate in the table on the back of the
instruction sheet.
The under 5000 people get an
allowance Of about 10 per cent for
deductions for things like charity
and medical care. They don't have
to claim 1t. It's already allowed for
in the tax table on the back Of
form 1040.
Deductions are Made.
| So they don't have to worry about
deductions, unless they want to
claim more than 10 per cent. If
they do, they can't use the 1040 tax
table. They'll have to work out
their tax, claiming the deductions
they want.
The 5000 or over people auto
matically can claim a deduction OF
$500 when they figure their esti-
mated tax.
If they want to claim more than
$500, they can. But-like any of
the under-$ 900 people who want to
claim more than their 10 per cent
they'll have to prove them when
they file their final return in 1949.
Here's a step-by-step example of
how to fill out your estimated 1948
income tax return.
You're married, with two chill
dren. Your weekly salary is $3.50.
For So weeks, or one year, that's
$9, 800. Subtract your standard $500
deduction. That leaves $500.
From that $500 subtract your
$4,000 in exemptions-$500 each for
yourself, wife and two children.
That leaves $3.50. That's the only
part of your 1948 income that's
taxable.
Use Instruction Sheet.
Now turn to the instruction sheet,
mentioned above. Where it shows
taxable income between $4,000 and
$4,000, you'll see the tax on the
first $4,000 Is 81 1860, plus 80 per cent
Of what's over $1,000. In your case
it's 80 per cent of the $3.50 over your
$4,000, or $258.
Add the $258 to the 1880, for a
total OF $1,618. But that's not the
tax you have to pay. There's an
other step. You deduct per cent
from the $1,618 tax, leaving you a
tax Of $l.537.10. That's your esti-
mated tax for 1948. It's the full tax
you figure you'll owe.
+; But you don't have to pay all that
now, or at the end of t948, because
most OF it will be taken out of your
salary by your boss before the end
of 1948. =:
: How much will he take out? He's
Withholding $26 a week from your
$3.50 weekly salary. That $26 a week,
multiplied by So weeks, gives you
a total of 1882 to be withheld
from your salary in 1948.
Turn to Form 1040ES.
Now for the first time turn to your
form 104oES. On line one, where
it says estimated income tax for
1948, you write your Total estimated
tax for 1948. That tax, as you
worked 1t out, is $1,537.10.
Beneath that, on line two, write
that 1882 in tax the boss will with
hold from your salary in 1948. Sub
tract it from the $1,537.10 on line
one and write the answer, $1S5.10, on
line three.
That $185.10-the difference be-
tween the $1,537.10 total tax and
the 1882 to be withheld from YOU
is the tax you'll have to start pay
ing by March Is.
You can pay 1t in full March is
or in quarterly installments of
$46.27-most people pay quarterly
on March Is, June Is, September
Is and January Is, 1949.
If you're going to pay in quarterly
installments, write that $46.27 on
line 7. Filling out the rest of Form
1040ES is simple.
dines four and five will apply
to some people and should be
filled out if they do.)
Error is Permissible,
Tear off the bottom of 104OES,
filled out, and turn it into the in
ternal Revenue collector with the
tax you owe, in installments or in
full.
The Government allows you to
make an error of 20 per cent in your
estimate.
If you discover later that you've
made a larger error, you can cor
rect 1t on those quarterly payment