The journal. (Caldwell, Ohio) 1934-1961, 1959-01-08
INCOME TAX HINTS

Most self-employed farmers
now are covered by the Federal
social security law and must
pay a self-employment tax for
1858, Nathaniel LOCKER, Director
of Internal Revenue for the CO.
lumbus District, said today.
He said the rate of self-em-
ployment tax for 1858 is three
and three -eights percent, in adj
dition to any income tax pay
able.
Under the Federal Social Sec
urity law, Mr.. LOCKER said,
taxes are paid by employees and
their employers, and the sef-em-
ployment tax must be paid by
persons who are self-employed.
These taxes are placed in special
funds by the U. S. Treasury and
are used only to pay for old-age,
survivors and disability benefits
under the Federal social security
program, he said.
Mr.. LOCKER explained a self
employed person is one who
operates his own business. Farm
ers who operate a farm, either
on their own land or land rented
from someone else, are self-em-
ployed. This is true, he said
even though they may employ
someone else to do the farm
work and do not live on the
farm themselves.
LOCKER also reminded farmers
they must file a Federal income
tax return and pay any self
employment tax due, ever
though they owe no income tax
Normally, he added, no self
employment tax is due unles!
net earnings from self-employ
ment amount to $400 or more fol
the year.
However, he continued, farm
ers who have actual net earn
ings from the operation of then
farms of less than $400 may
under certain circumstances
elect to pay the self-employmen
tax and thus bring themselves IL
line to receive benefits unde
the social security system.
Mr.. LOCKER said the self-em
ployment tax rules, togethe
with rules pertaining to the Fed
eral income tax, are explained
in the instruction booklet which
farmers will receive in the mai
along with their blank return
forms.
For those who have unusua
problems, a copy of the officia
pamphlet, Farmers Tax Guide
may be obtained from thei
county farm agent or by callini
or writing to the Columbus dis
trict Internal Revenue Servic
office.
Mr.. LOCKER reminded farmer
that February Is is the deadlin
for filing their income and self
employment tax returns in even
they do not file an estimated re
| turn on January Is. If an esti
mated return was filed and tn
tax due paid on January Il
farmers have until April Is t
file their final return for tn
year 1883, he said. >,
If farmers need any help wit
their returns, they can also tele
phone their local Internal Re
venue office.
Good Records Necessary
| Good financial records for las
year are essential in the prepare
ton of an accurate 1858 Feders
income tax return, District Di
rector Nathaniel LOCKER of tn
Internal Revenue Service en-
phasized today.
He said complete records ar
particularly helpful to taxpay
ers who plan to itemize permis
sible deductions and who ma
have a basis upon which
obtain a refund.
He added:
"We have urged taxpayers
years past to be sure to kee
complete and detailed account
of sums they have spent In cor
tributions, medical expenses, IL
| terest payments, deductlb
{ taxes, and other items which OF
tax forms or instructions allo'
them to deduct.
while the filing season is Sti
: young and taxpayers are M
, under pressure, this is probabl
5 the best time in which to g
: such records together and sta
figuring the best tax situation.