This pamphlet prepared by our Counsel, Breed, Abbott and Morgan, is the fifth edition of "Practical Questions and Answers" covering the Income Tax Law. It also contains a digest of all of the Federal Tax Laws now in force affecting individuals, partnerships and corporations, except the tariff law, the tax on distilled spirits and certain other internal revenue tax laws of limited application that have been on the statute books for many years. For a list of Irving publications, any of which will be forwarded upon request, see the final page of this booklet. DETAILS OF COMPUTATION TOTAL Percent of Amount of Percent of Amount of INCOME TAX CHART This chart and notes show total Income Tax, under the Revenue Act of 1918, payable for the year 1919, by the head of a family or a married person living with husband or wife and with no other dependents. DETAILS OF COMPUTATION Normal Normal Surtaz Surtax INCOME TAX Tax Tax INCOME TAX Normal Taz Normal Surtax Surtax Tax $1,000 None Exempt None Exempt None 56,000 11,170 8% 4,160 26% 7,010 2,000 None Exempt None Exempt None 57,000 11,520 8% 4,240 27% 7,280 3,000 $40 4% $40 Exempt None 58,000 11,870 8% 4,320 27% 7,550 4,000 80 4% 80 Exempt None 59,000 12,230 8% 4,400 28% 7,830 5,000 120 4% 120 Exempt None 60,000 12,590 8% 4,480 28% 8,110 6,000 170 4% 160 1% $10 61,000 12,960 8% 4,560 29% 8,400 7,000 270 8% 240 2% 30 62,000 13,330 8% 4,640 29% 8,690 8,000 370 8% 320 2% 50 63,000 13,710 8% 4,720 30% 8,990 9,000 480 8% 400 3% 80 64,000 14,090 8% 4,800 30% 9,290 10,000 590 8% 480 3% 110 65,000 14,480 8% 4,880 31% 9,600 11,000 710 8% 560 4% 150 66,000 14,870 8% 4,960 31% 9,910 12,000 830 8% 640 4% 190 67,000 15,270 8% 5,040 32% 10,230 13,000 960 8% 720 5% 240 68,000 15,670 8% 5,120 32% 10,550 14,000 1,090 8% 800 5% 290 69,000 16,080 8% 5,200 33% 10,880 15,000 1,230 8% 880 6% 350 70,000 16,490 8% 5,280 33% 11,210 16,000 1,370 8% 960 6% 410 71,000 16,910 8% 5,360 34% 11,550 17,000 1,520 8% 1,040 7% 480 72,000 17,330 8% 5,440 34% 11,890 18,000 1,670 8% 1,120 7% 550 73,000 17,760 8% 5,520 35% 12,240 19,000 1,830 8% 1,200 8% 630 74,000 18,190 8% 5,600 35% 12,590 20,000 1,990 8% 1,280 8% 710 75,000 18,630 8% 5,680 36% 12,950 21,000 2,160 8% 1,360 9% 800 76,000 19,070 8% 5,760 36% 13,310 22,000 2,330 8% 1,440 9% 890 77,000 19,520 8% 5,840 37% 13,680 23,000 2,510 8% 1,520 10% 990 78,000 19,970 8% 5,920 37% 14,050 24,000 2,690 8% 1,600 10% 1,090 79,000 20,430 8% 6,000 38% 14,430 25,000 2,880 8% 1,680 11% 1,200 80,000 20,890 8% 6,080 38% 14,810 21,360 8% 6,160 39% 15,200 1,840 12% 1,430 82,000 21,830 8% 6,240 39% 15,590 28,000 3,470 8% 1,920 12% 1,550 83,000 22,310 8% 6,320 40% 15,990 29,000 3,680 8% 2,000 13% 1,680 84,000 22,790 8% 6,400 31% 16,390 30,000 3,890 8% 2,080 13% 1,810 85,000 23,280 8% 6,480 41% 16,800 31,000 4,110 8% 2,160 14% 1,950 86,000 23,770 8% 6,560 41% 17,210 32,000 4,330 8% 2,240 14% 2,090 87,000 24,270 8% 6,640 42% 17,630 NOTES: INCOME:-The "Income" referred to in first column means NET INCOME arrived at as per following example: 8% 99,680 65% 746,010 Salary.. $2,000 Business Expenses.. $110 Dividends on Stocks.. 300 Interest Paid.. 20 Dealings in Stocks.. 100 Taxes Paid.. 30 Profits from Business.. 1,800 Losses.. 10 Interest, Liberty Bonds, if subject to surtax.. 100 Bad Debts.. 80 Partnership Profits-your share. 1,000 Depreciation.. 130 Other Taxable Income. 100 Gifts to Charities.. 20 Non-taxable income, i. e., gifts, interest on state and city bonds, certain nationa Ibonds, etc., is not required to be reported. See page ADDITIONS TO THE ABOVE TAX:-If you are single and without any dependents as described in the Statute, your exemption from the DEDUCTIONS FROM ABOVE TAX: (a) If you have dependents as described in the statute, your exemption from the normal tax is (b) If your income includes dividends, your normal tax as above computed will be reduced by 4% or 8% (according to the size of your income) of the amount of your dividends. (c) For status of interest on Liberty Bonds see page 6. Such interest, if subject to surtax, must be included in gross income, but is exempt from normal tax of 4%-8% as in the case of dividends. LIBERTY BONDS AND VICTORY NOTES Normal Income Tax. Interest on all Liberty Bonds and Victory Notes without limit as to amount, is exempt from Normal Tax, until maturity. Surtaxes, Excess-Profits and War-Profits Tax. Interest on Liberty Bonds and Victory Notes is also exempt from Surtaxes, Excess-Profits and War-Profits Taxes to the extent shown below. The exemptions mentioned in the last four groups are in addition to those mentioned in the second group. |