Your Income Tax WHAT IS INCOME TAX? The federal income tax is, as the name implies a tax levied up on incomes, and it is payable in relation to the amount of income. Income, for Federal income tax ] imposes, means in general any compensation for ones services, v hether the compensation be in. money or in goods or other serv ices: it includes also the net value received for the product ol ones labor, as farm produce ;n the case , f a farmer; income from invest: merits; profit fn in business opera tioiis; and other gains from sales and exchanges of goods and prop erty. Certain limited categories cf income are, however, tax ex empt, and to the extent of such exemption are excluded in com puting the tax. Because of exemptions from the tax given to persons having less than certain stated Amounts of income, as well, as because of va i ious deductions and credits al lowable, only a small proportion of the number of persons receiv ing income have until recently been subject to the tax. Thus, of tlie estimated 55 million persons in this c; untry who receive in come in one form or another daring the calendar year 1941. on ly some 26 million persons were re the large num ber of persoi - now subject to the Federal .income tax. who have never reported income before for Federal tax purposes! an under standing of the la.-w and applica ble regulations is of prime im An income tax return is a dec laration on the part f the tax payer of his total taxable income fm: the year, together with the va rious deductions, exemptions, and credits to which r.-e is entitled. It is in reliance upon voluntary disclosure, and the intergrity of tax payers generally, that the cost of administrate n of the income tax can be kept at a minimum. Though the return is a voluntary statement, any person who will fully makes a return which he dt\e9 not believe to be true and correct in every material matter is subject to the penalties provid ed by law. The first requirement of the law is the filing of an apprqpriate return. For individuals generally, this must be done by Ma*'ch 15 following the end of the calendar year. The return must be filed with the appropriate Collector of Internal Revenue for the district in which is located the legal resi dence or principal place of busi ness of the person making the re turn. L nder Che present law every single person, and every married person not living with husband , r wife, having a total income (earnings, together with other income) of $500 or more, and married persons living with hus uund or wife throughout the tax able year, who have an aggregate income (total earnings of both husband and wife, together with other income) of $1,200 or more, regardless of the amount of net income, must tile a return. FORM OF RETURN Persons subject to the Federal tax must report their income to the Government on forms, or blanks, prescribed by regulations. These forms are, obtainable from any Collector of Internal Rev enue. and generally from any bank. Special forms are desig nated for corporations, for part nerships, loi trusts and fiduci aries, and foi nonresident aliens Farmers who keep no books of ac count on the accrual method must attach a special schedule to their | return (Form 1040F). For indi- j vidua Is, two forms are used, de- j pending upon the amount and i source of income to be reported. I Form 1040. This form is in ' tended for general use of iiuli-j viduals who are citizens of the United States, or residents in this country, whether citizens or not. ! It contains spaces to show the am-; ount of income from various sour- i resi deductions allowable, exemp tions and credits, and computation | of tax liability. As most of these items requite some explanation in order to be allowable, the form I also contains appropriate sched ules to show in more detail how the income or the deductions are determined. Form 1^40. This is a sim plified report, which may. at the option of the taxpayer who makes his return on the cash basic, be filed instead of form 1040 by citi zens and residents whose gross in c me was $5,000 or less during 1942. provided all this income consists, wholly of one or more of the following: salary, wages, divi dends. interest, or annuities. In using this form it is necessary for dependents, and insert appropri ate amount of tax in accordance with one’s personal exemption "Behind The Scenes In American Business" —By John Craddock— ' New Voik, Jan. IS.—ALL OUT: What total war means to Americans was maiie clear by President Roosevelt in his annual burget message to Ct tigress. Whereas the budget for 1043 “was an instrument for trans forming a peace economy into a war economy,” that for 1044 fis cal year beginning July 1 will re fled. “the maximum program for waging war.” A1J told, the chief executive asked for $109,000, 000,000. of which $100,000. 000.000 would be for war expendi tures alone—an outlay three times those of Great Britain, and 14 times those of Japan. It is twice the expenditures asked a year ago by the President, four times actual expenditures for the fiscal year 1942, and 16 times de fense expenditures for the fisial year 1941. Half of the $100. 000,\000,000 is to be raised by tax es. necessitating an additional $16,000,000,000 in taxes which are quite likely to be placed on status, as shown on the table on the reverse of the form. This form has no entries for deduc tions allowable, since the taxes in dicated in the table on the back of the form are computed after taking into account what have been considered average deduc tions for persons of this income class. A taxyaper should, therefore, consider carefully which form would be appropriate for his pur posees. Whichever form is em ployed. all the information called for in the spaces should be in serted so far as applicable to the taxpayer, in order to avoid the expense to the Government, and the possible inconvenience to the taxpayer, of .subsequent .check and inquiry. With each return form is a set of aeci mpanying instructions, and these instructions should be care fully read by the taxpayer be for making his return. Returns for the calendar year 1942 must be filed not later than March 15, 1943 They may be filed by mailing to the Collector of Internal Revenue of the ap propriate district in which he is located the legal residence or principal place of business of the taxpayer. If the return is filed by mailing, it should be posted in ample time to reach the Collec tcr’s office before March 15, 1943 Returns received later than the due date are subject to a penalty variable according to the lateness in filing. a ‘‘pay-as-you go" basis. To critics who declare that sacrifices of .Americans are riot comparable to those of the British, it might be pointed out that the effort re quired to meet our own program fully measures up to thf of any of our Allies. Under the 1943 budget, the per capita burden of the American effort is estimated at $S97 against ?440 for Brit ain. MYTH EXPLODING — Ameri can ingenuity has blasted the myth of German superiority in producing-precision optical instru ments, machined to tolerances as fine as 1-10,000 of an inch, are flowing from plants of Mergen thaler Linotype, Westinghouse to exceed that of this country in Electrica and llinneapolis-Money well Regulator Company and the latter's production alone is said World War I. An example ol the ingenuity that made this pos sible is the system of humidity control devised by Minneapolis Honeywell engineers. One of the bottlenecks of optical manufacture has been the effect of humidity on glass which, on some days, halted production entirely. The engineers discovered that glass absorbs and exudes moisture— minute amounts of water come out of the glass and deposit par ticles of soluble salt when humid ity is falling, making the glass sticky, and moisture stays within the glass when humidity rises. Us ing the know-how acquired in 58 years of devising temperature controls, they hit upon a plan for controlling humidity which makes production i ossible, regardless of the weather, for the tirst time in optical history This system has been made available to all com panies manufacturing sighting equipment for the armed forces. THINGS TO COME: A new strip cartoon magazine to be is sued quarterly by Parents Mag azine It will present true stories of today’s heroes and heroines A civilian ration kit pocket size. with four tiny compartments for sugar, coffee, butter and an egg . . A new odorless garden fertilizer, made mostly of gar bage, by Jean MacLean Che v cal Co ... A new non-wheat grid.de cake mix. high in potein value, a product to be marketed by Soy ! Fond Mills under the trade name “Golden Sov.'' •NOTHING FOR SALE’: buy ers Hocked to the American Fur niture Mart in Chicago in record numbers last week, but manu facturers had little to offer. In I fact, sales were rationed to keep I down the volume of orders that i would have set a new all-time high and some even displayed "Nothing For Sale” signs. One of the most stringently rationed items was upholstered furniture —with either wooden springs or : none at all. Modernistic furniture, 'much of it demountable—en j ough for a four-room apartment | could be packed in a 6x6x0 case ! predominated the market, ac | counting ror oo per cent ui me i total. Because of an increase in j the birth rate. Lullabye Furni i ture reported it -was 60 days be i hind on deliveries. A survey by | the Walnut Manufacturers As j sociation showed exhibits of din I ing room and bedroom furniture to I be 47 per cent below 1941 and 33 | per cent less than last year. The dearth of furniture was said to be I partly due to the fact that 65 per f cent of the nation's furniture makers are selling- to the govern ment and others are trying to get war contracts. TO THE RESCUE: Now that gas and rubber rationing are making stay-at-homes of ..millions I of Americans, it isn't surprising that old-fashioned games—the kind that were popular in the Gay Nineties—are coming back. 1 In fact, a survey of game popu i larity bv Marshall Field & Com 1 pany of Chicago, turned up some I interesting facts. Games 1 ike' rook, parc-hesi, flinch and domin os led the field. All sorts of games | for two are being played more i and more while chess and checker | sets. popular with the armed forces are in big demand And children’s games aren’t old-fash ! icned. Today's kiddies are play ing with toy soldiers and guns and i tanks and other make-believe 'fighting equipment (fashioned I from non-crmitical materials), j War games which have captured j the youngsters' imaginations' are ; “Commandoes.'’ “Flight Patrol.' j “Flying .Aces." and the like. So | instead of playing cowboy and j Indian and cutting out paper i dolls, the kiddies are working out I technical war maneuvers and pre ' tending that they, like their big brothers, are in the fight, too. BITS O’ BUSINESS: It's the department store buyers who throw the parties now for manu facturing sellers. reversing an age-old custom. They’re eager for anything they can find . . Lockhead has put a new giant transport- in the air capable of spanning an ocean with a light tank and its compliment of troops. TTie huge plane is power ed by four Wright 2,000-horse I power aircooled radial motors Subscribe To The Chcrryville Eagle At The Movies IN CHERRYVILLE I Playing — Thur. and Fri. < Lester Theatre Playing Sun. Late Show-Mon., Tuea. Lester Theatre ANNOUNCEMENT WE HAVE THIS WEEK COMPLETED MOVING OUR STORE FROM WEST MAIN STREET TO THE KENDRICK BUILDING FORMERLY OCCUPIED BY McDOWELL BRO S.ON THE SQUARE. THIS BUILDING HAS BEEN REPAINTED ON THE INTERIOR, AND WE ARE HAPPY TO ANNOUNCE TO THE PUBLIC WE WILL BE BETTER PREPARED TO SERVE YOU IN THE FUTURE. WE HAVE MORE ROOM AND OUR NEW STORE IS MODERN AND MORE CONVENIENT. WE APPRECIATE YOUR PATRONAGE SIN CE COMING TO CHERRYVILLE AND WANT YOU TO VISIT US IN OUR NEW BUILDING. CHERRyVILLE, N. C. Home Owned DIAL 2281 Home Owned LEE W. CAUBLE