Montana labor news., 1949-04-14
|Stat ncome Tax
COZ sions Exceed
IT :. Of Last Year

i; EAR more than onc-half mil
t.. ollars. so states John \. Mat
thews. Chairman OF the State Board
oi Equalization. Sam ID. Coca and
NJ. Joe Miller. members.
The total collections So lar this
year are Sl,532,W0 as compared to
S969.l79 Tor the same period last
year or a net increase OF 5Sft. The
number OF returns filed has not
increased in the same proportion.
The early filing OF Federal re-
turns may have persuaded taxpayers
III the higher brackets to file their
State returns earlier than last year.
Many taxpayers III the lower
brackets are postponing the filing
OF, their eturns.
This is the last week Tor the
filing OF more than 10000 re-
turns The deadline is April IS.
Returns voluntarily filed after that
date will carry a penalty.
The law provides Tor a $500 pen
atty ior those who iail to file re-
turns ior the purpose Of cvading the
tax. Some taxpayers who submit
themselves Tor examination frankly
admit that il is this penalty which
they wish to avoid. Taxpayers who
file voluntary delinquent returns are
entitled to the benefit OF the mini
mum penalty OF $500 or So. which
ever, is more. plus r. per month.
The Board points out that the
slow-up in the filing OF returns III
the lower brackets points III the
direction Of many delinquent returns.
The cost to the department Tor pro-
c~essing delinquent returns Tor back
wears is much more than the cost
hi processing returns filed curren-
tlv. The burden on the taxpayer IS
likewise increased. Many errors oc-
cur in returns which are prepared
at the last minute OF the iiling
period. j.
The Board states that offices will
be open until April Is in the court
houses at Butte. Missoula, Grea'
Falls and in the Roosevelt School
Building in Billings, INCLUDING al
day Saturday. The Board office II
Helena will also be open during
this period. Taxpayers who are II
doubt about their tax Liability should
call on one OF these offices or write
direct to the Board.
The tax rates are only ~ on tn
first $1,000 OF net income. III o.
the second $1,000. 81, on the thir'
$1,000 and Al on the balance.
For a single person the persona
exemption credit is $1,000. II he ha'
l,ocn a resident OF the State for
inll year and $1,000 for a marrict
mar and wife. II he resides IN TIN
state ior only a part OF the year tn
personal exemption is prorated Oh
the basis OF SS3.35 per month Tor
single maj and on the basis Q
ISlhobo ior a married couple.
The income OF a child if less thai
$500 must be included in the return
oi the parent in which case tn
~narcnt may claim a $500 dependenc,
credit. II the income OF the de
pendent is more than $500, II nec'
not be included in the income 0
the parent. in which cas- the paren
loses the $500 credit
Montana residents must includ
income received from all source
from both within and without tn
State. The Board states that Mon
tana has taxing jurisdiction Of al
of its citizens. This mca tina
a Montana resident is required T.
report his entire income even thong
lit may all be earned and receive
from sources without the state.
The income Of all military per
sonncl is taxable unless II be 10
personal injury or sickness proiit
I'm the sale Of real estate. whcthe
+, he a personal residence or bus
ircss property, is taxable.
Deductions include contribution
made to charitable, religious or ed
ucational institutions, not to eNcee'
!, 49, al the net income. This doe
not include contributions made t
, individuals. Interest paid on Dor
!, rowed money and all taxes levie
, aeains, and paid by the TAXPAYER
. Except State income taxes are de
! ductiblc. This does not includ
Federal excise tax paid by tn
manufacturer on automobiles. tire
and auto accessories. cigarette Ia
paid by the manufactures or deale'
cosmetic. jcwclry. fur coats. all
/. which is paid by the dealer.
dealer may. however. deduct thes
! payments as a part OF busineS
expense.
, The State Law does not perm
the deduction OF hospital, mcdica
dental expense or health insuranc,
None OF the recent changes J
|. the income tax law made by II
last legislature effect l94S returns.
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