HUONSOF AMERICANS ARE
MAKING INCOME TAX RETURNS
WASHINGTON, March 4 (by Asso
ciated Press).—Within the next ten
days, or by March 15, every unmar
ried man or woman who earned $1,000
or more in the calendar year 1918, and
every married person whose income
amounted to $2,000 or more must
make a detailed report of his income
to the federal revenue collector of his
district. On or before March 15 the
first installment of the income tax
must be paid, one-fourth of the entire
amount due, or all of it if the tax
payer chooses.
This means that millions of Ameri
cans must get to work at once to pre
pare their returns, and for the guid
ance of tax-payers, the internal reve
nue bureau has issued explicit in
structions covering the preparation
and filing of returns. This is the A.
B, C of the procedure:
First get a tax return from the reve.
nue collector’s office or from a bank.
There are many kinds of these forms.
If a person’s income was below $5,000
he should ask for the form especi
ally intended for the smaller incomes.
It might be advisable to get two or
three of these forms, since or.e may
be spoiled in the preparation. The
form is a six-page printed sheet, with
detailed instructions for reporting
avrious interns of income and for cal
culating the tax due. By following
thos form closey even an inexperi
enced person probably will have little
difficulty, particularly if his source ol
income was not complicated or if it
was in wages or salary rather than in
business transactions.
The tax rate for most individuals is
0 per cent. For a single person Ibis
is imposed on the difference between
the total net income for t ie year and
$1,000, the so-called exempted amount.
For a married man, or for the heads
of a family, the exemption is $2,000
and the 0 per cent tax is imposed on
the difference between that end the
total income. There is provision for
an additional exemption of $200 for
each child or other dependent person,
under 18 years of age or incapable of
self-support. Thus a married man
with one child an an aged parent
warn Id have an exemption of $2,200
and would pay tax on the difference
between this and his net income. A
man with two children would have ar
exemption of $2,400; three children
$2,600, and so on To illustrate the
calculation of tax:
A single man with a net income
last year of $2,000 will be taxed $60;
income of $3,000, tax $120; income of
$4,000, tax $180; income of $5,000, tax
$240.
A married man without children
and with an income of $2,500 last year
will pay a tax of $30; income of $3,000,
tax $60; income of $4,000, tax $120;
income of $5,000, tax $180.
The regular or normal fax is 12
per cent on incomes of more than
$5,000 in case of unmarried persons
and more thru $6,000 :'n Ihe case oi
married persons without children. In
other words, the tax is doubled on in
comes of $4,000 more than the spe
cific exemption. In addition, so-called
surtaxes superimposed on the regular
or normal tax arc assessed on net in
comes of more than $5,000, the addi
tional rate being 1 per cent tor Ihe
first $1,000 above that sum. 2 per cent
for the next. $2,000, 3 per cent for the
next $2,000, a.id 1 per cent increase
for each additional $2,000. Both the
12 per cent rate and the surtaxes may
be ignored by persons with incomes
of less than $5,000.
After the tax is figured, a person
must count at least on paying one
fourth of tho sum by March 15. The
second installment of one-fourth is
due June 15; the third quarter, Sep
tember 15, and (he last installment,
December 15. Penalties are provided
for failure to file on time or to pay
tho tax promptly, and tax officials
welcome returns and payments before
March 15. Payment in full by March
15 also will he welcomed on tho
ground that the government needs tho
money.
A husband and wife whose com
bined net income l'or this amounted
to $2,000 or more must file a return
either separately or jointly. If sep
arate returns are filed, either may
claim personal exemption of $2,000, or
this exemption may be divided. Warn
ings of dependent children must he
included as part of the income of the
head of the family. If an unmarried
person supports either partially <>r
wholly, a parent or some o.her rela
tive or friend, not living in ti e same
I household, this pjerson is not consid
ered the head of a family and is there
fore entitled only to the $1,000 ex
emption. If the parent is wholly de
pendent, however, and lives in the
taxpayer's household, this makes the
unmarried person the "head of the
family.”
If, because of the special exemp
tions for children and dependents or
because of the exemption of soldier’s
and sailor's pay, an unmarried per
son's income of more than $1,000 or
a married person’s income of more
than $2,000 is found not to be taxable,
this condition does not free the indi
vidual from filing a return. Thus
many persons who do not have to pay
a tax must file returns.
A head of a family is described of
ficially as "a person who supports one
or more, persons closely connected
with him by blood relationship, re
lationship by marriage, or by adop
tion.
The compensation of a man in the
military or naval service, either as an
enlisted man or an officer, is wholly
exempt from taxation, provided this
did not exceed $3,500. Income of sol
diers or sailers from private sources
is taxable, however, if it exceeds the
exemptions.
The law does not provide for a
number of deductions, however, from
gross income, and these are of inter
est, mainly to men who made a living
out of business enterprises. These
allowable deductions include the fol
lowing items:
Kxpenses pair or incurred during
1918 in carrying on any trade or busi
ness, including rentals and a reason
able allowance for salaries.
Interest paid or accrued in 1918, ex
t -;
cept on Indebtedness incurred for the
purchase ot tax-exempt stocks or
bonds.
'luxes paid or accrued, except in
come. war profits and excess profits
(axes and tluise assessed against local
benefits of a kind tending to improve
the value of the property.
Losses in business or trade, if not
compensated for by insurance or
otherwise.
Losses in any transaction entered
into tor profit in some sile-line of
business.
Losses or property not connected
with the taxpayer’s regular business
if arising from fires, storms or other
casualties, it not. covered by insur
ance.
Worthless debts charged off during
the year.
A reasonable allowance for depreci
ation ot property used in business or
trade.
A reasonable allowance for deple
tion as well as depreciation of of prop
erty in the case of mines, oil and gas
wells and other natural deposits.
Contributions to concerns operated
exclusively for charitable, religious,
educational or scientific purposes, not
in excess of 15 pr ent of th taxpayer’s
net income.
Amortization on buildings, machin
ery, equipment or other facilities con
I st.ructed or acquired for the produc
tion of articles contributing to the
| prosecution of the war.
The preceding items must be re
| ported in the return and deducted
according to the method set forth in
[the return blank form.
The following items are exempt
from taxation and need not be in
cluded in the returns:
Proceeds of life insurance polities;
returns of premium on life endow
ment and annuity policies; gilts, be
I quests or inheritance (income from
gifts i taxable, however); interest on
bonds of any state, county or muni
cipality; interest, on farm loans; in
terest on $5,000 less of Liberty bonds,
and on larger amounts in certain
cases provided by the bond act; pay
ments on account of accident or
health insurance or under workman’s
compensation acts.
To detect inaccuracies or fraud in
returns, tile internal revenue bureau
has instituted a system of checking
returns with other reports required
from all persons or interests which
paid out $1,000 or more to any indi
vidual during the year. The latter re
ports constituie the tax collecting ma
chinery's “information at the source”
which proved so valuable last year in
preventing tax dodging.
In addition to income taxes there is
a multiplicity of other (axes to he as
sessed (his year. Incorporated busi
nesses are requ’Ted to pay taxes on
net incomes at the rate of VI per cent,
with an exemption of $2,000. War
profits and excess profits taxes are as
sessed against corporations only.
The Revenue bureau has made a
provision for accepting tentative esti
mates of income in cases where tax
payers are not able to figure accur
ately their incomes before March 15.
In these cases, however, an install
ment payment of one-fourth of the
estimated amount is required on that
date and tax officials will guard
against any attempt to evade or mini
mize the tax payment then through
setting an unreasonably low estimate.
-»-_
TUBERCULOSIS IS RIFE
AMONG IRISH PEOPLE
DUBLIN, March 4 (by Associated
Press).- The Irish death rate now is
as high as it was fifty years ago, the
registrar general for Ireland states.
Seventy thousand persons die every
year in Ireland, and of these ten thou
sand die from tuberculosis. The en
forcement of the public health acts is
not, as in other countries, compulsory,
and eminent medical authorities think
that these laws should be more
strictly administered.
WILL AID WORTHY CAUSE
TOKIO, Feb. 1 (by mail). The em
peror and empress will give $i>00 an
nually to the Japanese Salvation Army
for the next ten years, it is an
nounced.
—♦—
The Daily Times job plant is
well equipped for all classe of com
mercial printing.
-«
Advertise In Hie Dally Times.
F ' .
Smith and
McConaghy
Plumbers and
Steamfitters
COR. FRONT and 8 ST8.
Auntie Keating’s
Wee
Shop
has outgrown its original
location, and has removed
into the
WILLIAMS BUILDING
First Street
with a complete line of
Men's, Women’s and Chil
dren's Goods.
Come in and look my
i stock over.
CHUTTER &
INGALLS
Producer*—Selling Agents
Fresh, Frozen, Salt
and Mild-Cured
FISH
Correspondence and Consign
ment* Solicited.
COLMAN BLDG. SEATTLE
TOKENS OF RESPECT
A well conducted funeral is a
token of respect to the deceased.
Our methods of conducting a
funeral have given us an oppor
tunity to serve you In a manner
that will command respect. We
are equipped to serve you sat
isfactorily.
K. E. HOLDEN PARLOR !
Second Street, between
A and B Ave.
|[___1
1 Cordova !
• •
• *
S •
• •
J The City Beautiful l
I Help to keep it so by using a •
S Garbage Can. Plenty of them at l
• •
• _ •
• •
! CORDOVA 2
: SHEET METAL WORKS •
• Phone 143 *
r.— --—4
iiiiiiiiniiiiiiinMniiiiiiiiiniininiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiniffiPBi
f OVER $30,000 STOCK NOW ON SALE |
I “THE HOME OF GOOD CLOTHES”
■ s
I Since war is over, merchandise began to drop, and we decided to do the same. Here is your chance to buy the highest |
grade of Clothing obtainable at a reduction of 25 to 35 per cent. It includes everything in the house except contract g
j goods, such as Arrow collars, U. S. and Hippress paks.
[ HERE ARE A FEW OF OUR ALLURING PRICES: |
I: —— ------ ■
| MEN’S SUITS
$25.00 Suits now..$15.00
35.00 Suits now . 26.75
40.00 Suits now. 30,.00
50.00 Suits now. 37.50
I MACKINAWS
1 $1 3.50 and $1 2.00 Coats now.$8.50
16.00 Coats now. 12.00
a LOGGER SHIRTS
| $ 10.00 Shirts now.-.$J*5JJ
8.00 Shirts now . 5*68
| I 1.00 Leather Vests now. o-75
$6.00 Men’s Moccasins now . $4-00
| WOOL BLANKETS
1 $15.00 Blankets now .
20.00 Blankets now. 15.00
| 9.00 Blankets now .----- 6*«5
I Twenty per cent off on all Suit Cases and Bags
sox
Over 5,000 pairs Woollen
Socks at followinig prices:
75c Sox now.$ .50
$1.00 Sox now.75
1.25 Sox now.00
1.50 Sox now. 1.15
BATTERIES
2- cell Batteries now .. 20c
3- cell Batteries now .. 30c
$2.00 and $1.75 Flash
lights, with batter
ies .$1.25
All Batteries New
50c Bee, Bicycle, Free
Lance Cards, 35c, or
three for.$1.00
75c Ties now.50c
20 Per Cent Off on All
Down Quilts
$4.00 Medlicott & Stan
field ’s Shirts and
Drawers now .... $3.00
MITTS
$2.00 Horsehide Mitts,
now.$1.50
75c Wool Mitss now. .55c
$3.00 Best Bib Overalls
now.$2.50
12-oz. Canvas Gloves,
per pair .20c
50c Leather - faced
Gloves, per pair ... .40c
25 Per Cent Off on all
Felt Shoes
Men’s Rubbers now $1.25
Ladies’ Rubbers now 90c
$4.50 and $5.00 Men’s
Four-buckle Arctics
now.$3.05
$6.00 Parkas now . .$4.00
25 Per Cent Off on all Fur
and Cloth Caps
All Khaki Clothing
Reduced
All Union Suits Reduced,
including Silk and Wool
MEN'S SHIRTS I
$3.00 Wool Shirts now ... .$2.25 1
5.00 Wool Shirts now . .3.75
6.00 Wool Shirts now . 4.50
5.00 and $6.00 Silk Shirts now. . 3.75 j
HATS |
$3.50 Hats now . .$2.50 j
5.00 Hats now. . 4.00 :
6.0 and $7.00 Hats now... 5.00 *
1
- -^
SWEATERS 1
$4.00 Sweaters now . $3.00 ]
6.50 Sweaters now _ 4.75 J
8.00 Sweaters now . 6.00 i
—---a
PANTS
$ 3.00 Pants now.$2.25 M
5.00 Pants now. 3.75 j
6.00 Pants now. 4.50 jg
10.00 Wool Riding Pants now. 7.50 ; j
HCE—No charges will be made for longer than thirty days. All or ders by mail filled promptly. 1
w] LAURIE BROTHERS ! ^carthy1 |