Evening Republican, Volume 22, Number 316, Rensselaer, Jasper County, 3 January 1920 — DATA ON INCOME TAX AND HOW TO AVOID MISTAKES. [ARTICLE]

DATA ON INCOME TAX AND HOW TO AVOID MISTAKES.

Were you one of thousands of persons who last year, with unquestioned honesty of purpose, filed an incorrect income tax return? Are you, or have you been a claimant for refund of taxes overpaid? Have you been called upon by the bureau of internal revenue for payment of amounts owed the government through inadvertence or omissions in making out your income tax form? To sum it up, have you experienced trouble of any kind in filing your income tax return for 1918? If so, this is written for your benefit and for the benefit of more than 3,000,000 taxpayers who, on or before March 15, will file income tax returns for the year 1919. It is eertain a percentage of these returns will be incorrect. It is equally certain that the percentage of errors may be largely reduced if the taxpayers will acquaint themselves with the income tax provisions of the act of February 24, 1919, known as the revenue act of 1918, which provides for the collection of taxes for the year 1919 and subsequent years. Probably the most important change affecting the average taxpayer is in the normal rate, the exemptions of SI,OOO for single persons and $2,000 for married persons and heads of families remaining the same AS for 1918. The normal rate' for 1919 is 4 per cent on the first $4,000 of net income above the exemptions and 8 per eenton the remaining net income. The normal rate for 1918 was 6 and 12 per cent, respectively. This appliestoevery citizen and resident of the Umted States. Alien nonresidents receiving income from sources within the United States are taxed to the full 8 per cent on the income from such sources. , . . The surtax rates, which range from 1 per cent on the amount of net income between $5,000 and $6,000 to 65 per cent on the amount of income in excess of $1,000,000, remain unchanged. The tax, as in 1918, may be paid in full at the time of filing the return, or in four (installments, the first of which is due on or before March 15, the second on or before June 15, the third on or before September 15, and the fourth on or before December 15. The first; installment must accompany the filing of the return. The period for filing is from January 1 to Maren io.