The Republican. [volume] (Oakland, Md.) 1877-current, 1952-01-31

series released by d. Mlllard raves, Comp
trocr of the Treasury State of Maryland.
1t is important to note at this time that Mr..
Tawes has suggested that Maryland Income
Tax Payers delay the filing of their returns
until the Legislature which meets Feb
ruary 9Th. of this year. has chance to act
on Mr. Tawess recommendation of Is per-
cent reduction on Income Taxes for the tax
able year 1851
In this final article we will cite
briefly the changes that were made
in the Maryland Income Tax Law by
the 1851 Session of the Maryland
Legislature.
PENSIONS. Investment income has
been REDEEMED so that a portion of
the pension received by retired en-
ployees to which they have contrib
uted, will not be taxed as investment
income but at the ordinary income
rate of 90.
ALIMONY. Payments received as
alimony are to be included in the re-
turn as taxable income by the re-
cipient and persons paying alimony
may now deduct such payments.
MILITARY EXCLUSION. Pay
ments received up to $1,000 as men,
bers of the armed forces of our
Country are to be excluded from
gross income. Any amount received
in excess of $500 by residents of
Maryland is subject to tax.
LOSSES. Losses are now deducti-
BILE if they arise from transactions
entered into for profit although not
connected with the taxpayers trade
or business.
BAD DEBTS. Provision has been
made for the deduction of debts as
certained to be partially worthless,
under certain conditions.
INVESTMENT INCOME EXPEN-
SEES. Expense incurred in acquisition
of investment income or in the care
of investment income producing prop
erty are now deductibe against the
investment income and a net invest
ment income thus developed. -.
OPTIONAL STANDARD DEDUC-
TON. In lieu of itemizing deductions
as has been required heretofore in
returns under the regular method of
computation, taxpayer may now
elect to use an optional standard de-
duction. The taxpayer may now de-
duct 1917 of the gross income to an
amount not in excess of $500.
INVESTMENT INCOME TAN
ABILITY. The frs $500 of net in
vestment income is to be included in
the return at the ordinary income rate
of 2ft. The form has been set up so
that this segregation can be made
without difficulty.
CORPORATIONS. An important
change affecting corporations is the
method to be now used in the alloca-
ton of corporation net income. In adj
dition to the ratios of Maryland bust
ness to total business and Maryland
property to total property, the third
ratio of Maryland payrolls to total
payrolls is to be used by corporations
engaged in business of manufacture
ing or selling tangible personal prop
erty.
Conclusion
BY the time this final article shall
have appeared every person who filed
an income tax return to the State of
Maryland for the year 1850 should
have received his form for the year
1851. New taxpayers or those who
are delinquent can obtain a form by
requesting same from our office. Also,
these forms are distributed to banks
and court houses and can in most in
stances be easily obtained. Branch Of
fees are maintained in Baltimore,
Cumberland, Dundalk, Washington
and Easton where forms, information
can be had.
Every principal town and city in
Maryland is visited by our representa-
tives during the filing period. An
itinerary of these visits will be re-
leased to the press and as in the past
will appear in your local newspaper.
Returns for the calendar year 1851
are due on or before April Is, 1852.
A remittance should accompany the
return if tax is developed. The re-
turn should not be sent in without
remittance as the law requires both
the filing of the return and the pay
ment of the tax. The tax can be paid
in four equal installments, however,
if the account becomes delinquent the
full balance becomes Immediately due.
The Income Tax Division is greatly
Handicapped year after year by tax
payers waiting until the last day to
file their returns or to seek assistance
from our offices. Persons having
problems requiring correspondence
with our office should make them
known early so that we will have
time to reply before the expiration
date for filing the return.
1t is the desire of our Income Tax
Division to cooperate with the tax