Jasper County Democrat, Volume 22, Number 97, Rensselaer, Jasper County, 3 March 1920 — INCOME TAX RETURNS DUE [ARTICLE]

INCOME TAX RETURNS DUE

Business Men, Farmers and Wage Workers Must File Schedules of Income for 1919. MARCH 15 LAST FILING DATE. Net Incomes of SV W or © ver - ,f 81 gle; or $2,000 or Over If Married, Must Be Reported. The Income Tax imposed by Act of Congress on earnings of the year 1919 is now being collected. Returns under oath must be made on or before March 15 by every citizen and resident who had a net income for 1919 amounting to: SI,OOO or over, if single; or If married and living apart from wife (ot husband) ; or if widowed or divorced $2,000 or over, if married and living with wife (or husband). The status of the person on the last day of the year fixes the status for the year with- respect to the above requirements. Under any of these circumstances a

return must be made, even though no tax is due. Husband and wife must consider the Income of both, plus that of dependent minor children, in meeting this requirement; and, If sufficient to require a return, all items must be shown in a Joint return or in separate returns of husband and wife. A single person with minor dependents must Include t>-e income of suck dependents. A minor who has a net income of SI,OOO or more is not considered a dependent, and must file a separate return. Personal returns should be made on Form 1040 A, unless the net income exceeded $5,000, in which case Form 1040 should be used. Residents of Indiana should file their returns with, and make payments of Income Tax to, William L. Elder, Collector of Internal Revenue, Indianapolis. How to Figure Income. The best way to find out whether one must file a return is to get a Form 1040 A and follow the instructions printed on it. That form will serve as a reminder of every item of Income, and if a return is due it tells how to prepare and file it. If In doubt on any point as to Income or deductions, a person may secure free advice and aid from the nearest Internal Revenue office. Guesswork, estimates and other hit-or-miss methods are barred when a person is making out his Income Tax return. Accuracy and completeness must be insisted upon. The return is a sworn statement. As such it must be thorough and accurate. Salaried persons and wage earners must ascertain the actual compensation received. Overtime, bonuses, shares in the profits of a business, value of quarters and board furnished by the employer and other items which are compensations for services must be included. It must be borne In mind that compensation may be paid in ether forms than in cash. A bonus paid in Liberty Bonds is taxable at the market value of the bonds. A note received in payment for services is taxable Income at its face value, and the Interest upon it is also taxable. Other Returns Due. Every partnership doing business In the United States must file a return on Form 1065; and every personal service corporation must file a similar return. Corporations must file annual returns on Form 1120. Trustees, executors, administratbrs and others acting in a fiduciary capacity are required to file returns. In some cases, Form 1041 is used; in others, Form 1040; and still others, returps on both forms are required.

Information returns; bn Fortis'loo9 and 1096, must be filed by every organization, firm or person who paid, daring 1919, an amount of SI,OOO In salary, wages, Interest, rent, or other fixed or determinable income to another person, partnership, personal service corporation or fiduciary. These information returns should be forwarded directly to the Commissioner of Internal Revenue (sorting division), Washington, D. C.