Evening Republican, Volume 18, Number 13, Rensselaer, Jasper County, 15 January 1914 — SOMETHING ABOUT INCOME TAX LAW [ARTICLE]

SOMETHING ABOUT INCOME TAX LAW

If Single You Pay on Basis of $3,000 and If Married on $4,000 —Law • • is Simple : J

The new income tax law will probably interest all and affect a few in Jasper county. If you are married and your annual income exceeds $4,000 you will have to pay 1 per- cent, or $lO per thousand; if you are single you will be required' to pay on an income of $3,000. , The law will bring in large sums ; from the great corporations and, will affect many individuals. It is probable In Jasper county that there are quite a number of persons whose annual ineome will exceed the sums which impose the tax. In the ease of -merchants it wiN be difficult to ascertain just what the income amounts to, for the reason that frequently much of the-earnings from a business in shown by an increase of stock. With farmers it will also be difficult to show just the amount of earnings as frequently this is represented by additional stock, the value of which varies considerably. The law provides for a traveling revenue collector and the man named for the district composed of Lake Porter, LaporJte, Newton, White, Starke and Jasper ’is Clayton B. Stiver, 451 May street, Hammond. He will be able to give you information if you ar*e one of the unfortunates to have an income greater than $4,000 per year. The income tax „ law is simple enough. In figuring, it Is necessary to keep only two things in mind. The first of these Is that the year is the unit, and the second that one per cent is to be figured as ineome tax on any amount above tour thousand in the case of a husband and wife and three thousand dollars in the case of single person. The separate incomes of husband and wife are lumped to figure the income above four thousand dollars. -In■'the-ease of persons whose income is about twenty thousand dollars a year the procedure Is somewhat different.

The law makes ft Obligatory upon each person subject to the income tax to make an accurate return under oath or affirmation to the district revenue collector. It is not the duty of the collector to ferret out the tax dodger. Conviction may entail heavy penalty. The law went Into effect last March and for the year 1913 those who have to pay an income tax need do so only for five-sixths of the year. Their return must be made by February 28. The annual returns for which blanks are provided must show incomes derived from salaries, wages in what ever form paid for incomes from professions, vocations, business, trade, commerce or sales or dealings in property, whether real of personal growing out of the ownership or use of interest in real or personal property also from interest, rent dividends, securities or the transaction of any lawful business carried on for gain or profit.

In computing the net income on which the tax is to be paid the following exemptions are allowed: Actual expenses in carrying on a business, not Including personal living or family expenses. All Interest paid within the year by a taxable person dn indebtedness.

All national, state, county school and municipal taxes paid within the year. Losses actually sustained during the year incurred in trade or arising from fires, storms or shipwreck, not compensated by insurance. Worthless debts. A reasonable allowance for wear and- tear of machinery. Stock dividends net earnings of any corporation, joint stock company or Insurance company. Incomes growing out of corporations are paid at the source. Woman loves a clear, rosy complexion. Burdock Mlood Bitters is splendid for purifying the blood, clearing the skin, restoring sound digestion. All druggists sell it. Price; SI.OO.