1st Liberty Conv. 4%, 1947 2nd Liberty 4%, 1942 2nd Liberty Conv. 44%, 1942 3rd Liberty 44%, 1928 1st Liberty Conv. 4%, 1947 1st Liberty Conv. 44%, 1947, 2nd Liberty 4%, 1942 2nd Liberty Conv. 44%, 1942 3rd Liberty 44%, 1928 4th Liberty 44%, 1938 Surtaxes, Excess-Profits and WarProfits Taxes on interest on aggregate of bonds (described in this group) up to 11⁄2 times amount of Fourth Liberty Loan Bonds (not exceeding $30,000) originally subscribed for and owned at the date of owner's tax return, until two years after the date of the close of the war. Maximum for this group $45,000 of bonds. Surtaxes, Excess-Profits and WarProfits Taxes on aggregate amount of bonds (described in this group) up to three times amount of Victory Notes (not exceeding $6,666.66) originally subscribed for and owned at date of owner's tax return, until maturity of Victory Notes. Maximum for this group $20,000 of bonds. NOTE.—(1) The principal and interest of all Liberty Bonds and Victory Notes are exempt from any and all taxation by any state or any of the possessions of the United States, or by any local taxing authority, except estate and inheritance taxes. (2) Federal estate and inheritance taxes can be paid with any of the following bonds at par and accrued interest, provided they were owned continuously for at least six months prior to the date of the death of the owner: 1st Liberty Conv. 44%, 1947, of Third Loan 1st Liberty Conv. 44%, 1947, of Fourth Loan 2nd Liberty Conv. 44%, 1942 (3) Trusts and Partnerships.-In computing the foregoing maximum exemptions, each member of a partnership and each beneficiary of a trust is to be regarded as the owner of a proportionate part of the bonds or notes held by the partnership or held in trust and must combine such proportionate part of the bonds or notes so held with his individual holdings. FEDERAL INCOME TAX. INDIVIDUALS. Q. Who must file a return? A. Every individual having a net income for the taxable year of $1,000 or over if single or if married and not living with husband or wife; or $2,000 or over if married and living with husband or wife. If a husband and wife living together have an aggregate net income of $2,000 or over, each shall make a return unless the income of each is included in a single joint return. If the taxpayer is unable to make his own return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer. Q. When must I file a return? A. Any time after January 1st, but not later than March 15th. If, however, the return is made on the basis of a fiscal year, it must be filed on or before the 15th day of the third month following the close of the fiscal year. Q. Where must I file a return? A. With the Collector of Internal Revenue for the district in which you reside, or where you have your principal place of business. Q. Where can I get forms of return? A. At the office of the Collector of Internal Revenue for your district. Q. What is meant by net income? A. For the purpose of determining whether or not a Return should be filed, net income means gross income (not including exempt items e. g. interest on municipal bonds) less certain of the deductions mentioned on page 16 and briefly shown in the following example: If unmarried you would have to file a return in this case because your net income is $1,000 or over, but if you are married you would not have to file a return because the net income does not amount to $2,000 or over. Q. I have figured my net income as indicated in the preceding answer and find that I am liable to file a return. My personal exemptions (see next heading) however show I will have no tax to pay. Must I nevertheless file a return? A. Yes. Personal Exemptions and Credits. Q. Upon how much of my income am I allowed a personal exemption in computing the normal tax? A. If a single person, a personal exemption of $1,000 or if the head of a family or a married person living with husband or wife, a personal exemption of $2,000. A husband and wife living together receive but one personal exemption of $2,000 against their aggregate net income, and in case they make separate returns the personal exemption of $2,000 may be taken by either, or divided between them. $200 exemption is also allowed for each person, per annum, other than husband or wife, dependent upon and receiving his chief support from the taxpayer, if such dependent person is under 18 years of age, or is incapable of self-support because mentally or physically defective. In the case of a non-resident alien individual, who is a citizen or subject of a country which imposes an income tax, the personal exemptions shall be allowed only if such country allows a similar credit to citizens of the United States not residing in such country. Q. tax? What other credits am I allowed for the normal A. Dividends received from taxable corporations and also dividends from personal service corporations upon which income tax has been imposed. Interest on obligations of the United States and of the War Finance Corporation which is included in gross income because subject to the surtax. Rates of Taxes. Q. What are the rates of income tax I will have to pay? A. The rates of normal tax and surtax are given in the following table, except that in the case of non-resident aliens the reduction of the normal tax to 4% on the first $4,000 does not apply. Normal Tax for 1919 4% on first $4,000.00 of net income above Personal Exemp On page 4 will be found a chart in which the total Income Tax on stated incomes from $1,000 to $1,250,000 has been figured. This chart can be used in quickly estimating the amount of any individual Income Tax. Q. If I have paid income taxes and war taxes in a foreign country will such taxes be credited against my tax in this country? A. Yes. See section 222 of the Act. |