Newspapers / The Perquimans Weekly (Hertford, … / Jan. 26, 1940, edition 1 / Page 6
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By FREDERICK B. HILL , Certified Public . Aeeountant it . Norfolk, Virginia '. " It is the purpose of this column to present to, the readers of The Per quimans Weekly a slight digest of the Income and Social Security (both -Federal and State) tax laws, as well as .the information relative to the Wage and Hour ' law; both based ipon the last regulations received, which will be presented as questions and answers, a form which it is thought most suitable for conveying tax. infornSation. . 'Whermoferit the purpose of this column to invite questions from the readers, of The Perquimans Weekly concerning features of the several , tax laws mentioned that might apply to a particular case. Answers, which will be furnished in subsequent issues, will be formulat ed according to law, where so appli cable, and opinions will be based up on the latest information available. Introduction: The first Federal Income Tax Act was passed in 1861 Additional Acts -were passed in 1862 and 1864. The fourth Act, known as the Revenue Act of 1894 was de clared unconstitutional in 1895, and in 1909 a Constitutional Amendment now known as the Sixteenth Amend meat, -w9 proposed by Congress. By February 25, 1913, all states ex cept Connecticut, Rhode bland and Utah, had ratified it. For legal purposes the Sixteenth Amendment became effective March 1, 1918. Since that time all the States have also passed Income Acta for State taxation. Who la Taxable? It might be stated broadly that every recipient or income to the United States is object to the Income Tax laws. In- "mo whhi resus upon me pnnci- j-;e or ability to pay. 'Everyone is (rot subject to the law in precisely i ;e same manner or to the same ex- u'nt, but a legal and moral obligation sts upon everyone to know his i atus. ; ... As, Affecting IndivldualA Individuals Required To Fire A Re- yfa: Every citizen of the United tafes must file a return whose irross income for the taxable year amount ed to $5,000.00 or over, or whose net ncome amounted to (a) $1,000.00 ii single, or if married and not living ith husband or wife; or (b) $2,500 t" married and living with" husband wife. jiinwny .yrws Income. All :ems of income subject to tax, and includes in general, compensation fax ncrsonal and professional services, business income, profit from sales of aid dealing in property; interest; vent, dividends, etc. Particular attention is directed to he fact that, beginning with the tax able year 1939, the salary of all offi cers and employees of the State, Cities, Counties and other political .subdivisions, is taxable, and such in t ome must be' included in the return :or the year 1939, together with oth er income, should there be any. Deductions: Certain items of ex pense or loss by which the statute el i iws a taxpayer to reduce his in come subject to tax, and includes ail :he ordinary and necessary expenses raid or incurred during "the taxable ear . in carrying on any trade or business; contributions; interest, tax rs' lasses from fire, theft, etc., and ",yd debts and certain other deduc ;'ns. Net Income: The balance of gross Income after deductions are sub tracted. - Other "Persons" Taxable As In dividuals: (a) Partnerships. The in- ;r.e 13 taxable to each partner ac- iicVa'r to his proportion and not to l ie- partnership as an entity. (b) Estates and Trusts, with some necessary exceptions, are subject to tax under the same rates as apply ing to- living individuals. - Where J Ate Returns Filed: Re turns; of residents of North Carolina should ba filed with the Collector of Internal, Revenue at Raleigh, North Carolina, or Greensboro. North Caro ?:na", or Vfith any office of a deputy ollector located in your section. The office of the deputy collector for i astern North Carolina is Seated at Elizabeth City. What Is A Taxable Year? In come taxes are computed on the basis of - a calendar year ending December j-lst. or a fiscal year of twelve aionths ending on the Jast day of any', of a family) $2,500.00 i.ionth. Credit for Dependents -When Should Tax Returns Bo U Two" Children) 800.00 Filed? Returns for a calendar yeai should be filed on or before March ,15th; returns for a fiscal year should if wed witnin seventy-nve aays ai ler the close of the year. For ex ample: A return for a fiscal -year ending June 80th should be filed on ur before September 15th. i'.'eWhat Are The Personal Exemp tions and Credits For Dependents? The personal exemption is $1,000 for a single person, and $2,500 for "a married couple or the head of a family. The credit for dependents is $400 for each person (other than husband or wife) whether related to the tax l ayer or not, whether living with him rr rH ?T' " Jent-npon and receiving ;ds t' ' f nrport from the taxpayer, 1 Ci dependent is either (a) ii ! t-'hteen years of age or (b) GifttolVorld'sJlcfasc .lit':. " j 'in., I This but, specially equipped to serve at freight or pas senger transport, or ai oup kitchen, li the first of several .which will be used in France to aid refugee children for whom the Foster Parent' Plan for War Children U ' caring. It is the gift of friends in America to the refuges ' children of the world. Originally establish for the bene incapable of self-support because de fective. The credits are allowed as deductions in computing; the tax. Earned Income Credit: This sec tion of the law deals with the al lowance of a special credit in addi tion to those already mentioned, which is based upon "earned net in come." The credit is allowed only to Individuals and not to estates, trusts, partnerships, corporations or other taxpayers. The credit is allowed against a net income for purposes of the normal tax only. It is 10 of earned net Income as defined, but not over 40 . of the net income. Earned net income is income from personal services rendered, less ex penses incurred in connection with the earning of such income, Tax payers having net income of $8,000 or less may. always receive a credit of 10 of the net income. Those having net income of $3,000 or more are to consider that tf minimum of $3,000 is earned income, regardless of the true nature "of the income, thereby being assured of a minimum credit of $300. In no case may earn ed income be considered as more than $14,000. Where taxpayers are engaged in trade or business in which both labor and capital are factors, e reasonable allowance as compensation shall be considered as earned income, but this amount may not be over 20 of .the commercial or book profits of the business. Such profits are those computed without regard to 4 Federal income tax laws. Persons in the so called learned professions' consider their entire business income as earn ed. The earned income credit is un changed under the alternative capital gain and loss tax computations. What Are The Rates? Special! forms for the different classifica tions of taxpayers will be furnished upon request by your nearest office of the Collector of Internal Revenue. Instructions that accompany the forms should be carefully studied. Without endeavoring to give a full explanation of the rates at this time, a brief mention of some of the simpler ones is made: Individual's: Normal Tax 4 of net income less several specific cre dits as follows: Personal Exemp tion; Credit for Dependents; Interest on Government Obligations, Etc; Earned Income Credit. Surtax The surtax is computed at the graduated rates shown on the table accompanying the return. The first $4,000 of net income, after de-. ducting personal exemption and cre dit for dependents, is exempt. An example of the computation of the tax of an individual is as follows: An individual received a salary of $4,000 as an officer of a corporation: $3,000 interest on commercial invest ments, and JjOOO iiterc3t on Gov ernment' bonds. Total gross income $10,000. He paid $300 taxes on real esrate and Si 00 personal' property - - -" ...... - - " ' (5 ... .- a:id hi.s two children under eighteen years of age. Gross Income $10,000.00 Allowable Deductions 400,00 ' Entire Net Income $ 9,600.00 Personal Exemption (Head Total Exemptions 3,300.00 Balance Subject to Surtax $ 6,300.00 Less Exemption . 4,000X0 liaiance taxable 2,300.00 Amount Taxable at 4 $ 2.000.00 Amount Taxable at 5 300.00 ' Balance Subject to Surtax ..$6,300.00 Less Int. on Gov. Bonds .$ 3,000.00 Earned' Income Credit (10 of Salary $4,000) , . 400.00 Bal. Subject Normal Tax $2,900.00 Computation Normal Tax $2,900.00 at 4 116.00 Total Tax . ; 211.00 "jjn't 'zythum a' funny word for you to be so fond of, mother?" , "What do you mean, child?" , ' "Well, 1 heard daddy say you were fond of the last 'word, ' so I looked it up.7 ( . fit of children In the bombed areas of 8paln, th Foster Parenti' Plan hat now been extended to include Polish and Finnish refugee. 8orae la.OOQ children are being cared for in nine colonies near Blarrita, France,' Betide the unit it E, Q, Muggeridge, executive secretary of the Plan, Beer Committee Drive Against Lawless Retailers Continues as Licenses of 40 Opera tors Are Revoked Investigators for the beer industry' will visit every North Carolina coun ty during 1940 to make certain that retail beer dealers conduct reputable places of business. Edgar H. Bain, of Goldsboro, State Director of the Brewers' and North Carolina Beer Distributors Commit tee, has announced that the indus try's "clean up or close up" cam paign has resulted in the revocation of 40 licenses in 13 counties, and re vocation proceedings against a score of other dealers in eight counties. "A majority of beer dealers con duct reputable places of business," Colonel Bain said, "but there is a minority which disregards the law and public decency. Our campaign is directed at these scattered outlets. During the next 11 months, our field representatives will check on these outlets and when necessary, we will request the county officials to re voke their licenses." In recent months, dealers in Bun combe, Mecklenburg, Guilford, Ire dell, Gaston, Columbus, Brunswick, Lenior, Haywood, Henderson, Burke, and Wayne counties have lost their licenses through efforts of our com mittee and local enforcement officers. Petitions requesting the revocation of licenses are now pending before county boards of commissioners of Richmond, Craven, Lenior, Alamance, Cabarrus, 'Transylvania, Buncombe and Rowan counties, ColorjejJ Bain said. Meetings Being Held By AAA Committeemen j : "Ask your County or community committeeman," will be the advice given, farmers who have problems concerning f the Triple-A progranj when a series, of meetings now in progress in the State have been concluded. .The 4,700 AAA commit teemen in North Carolina are being trained to better , administer ,,. the LFederal farm program, E. Y. Floyd, AAA executive officer of State Col lege, explained. ' v'!' The time and place of each meet ing will be announced locally oy the county farm agent, Floyd said.V In addition to the committeemen, other agricultural workers in the counties are being invited to attend the meet ings and learn about the Triple-A program. :, vV - , These include' home demonstration agents, assistant farm and , liome agents, vocational teachers, and' re presentatives of the Farm " Security Administration, - the Soil Conserva tion Service, Production Credit : As- sociaQdn, Farm Credit Administra- tiorf and Seed Loan division. Floyd said that discussions by " Ex tension specialists in forestry, dairy- ing, agronomy, and horticulture are features of the meetings in several of -the counties. . , - ' Specialists R. W. Graeber, J. A. Arey, E. C. Blair, and H.,R. Nis- wonger are attending the meetings In Wake,' Stanly, Randolph, Wa tauga, Ashe,'-. Davie, Gaston, Clay, Cherokee, ; and" Iredell Counties. Specialists' W. J. Barker, A. C. Kim rey, I T. Weeks, and L. P, Watson are assisting with the meetings in Beaufort, Wilson, - Jones, : Sampson, uolumbus, rerson, itocungnam, Juar- Extends Campaign Into Every County tin, Hertford, 'and Hoke Counties.: Timely Questions On Farm Answered i Question: What are some of the sources of protein in bog feeds ? Answer: " At least one-third, by weight, of the protein supplement should be composed of products from animal sources, such 48 digest er tankage or high grade fishmeal. Fifteen pounds of skim milk or but termilk will replace one pound of tankage. The remainder of the pro tein requirement may be provided from plant sources, such as cotton seed meal, soybean H meal, or pea nut oil meal. Complete directions for the feeding, breeding, and man agement ot swine are contained in a new Extension circular which may be obtained on request to the Agricul tural Editor at State College. Thej circular number is 238. Question: What are the fer- tilizer requirements of the tobacco CLOUDS YOUR EYES WILL TELL YOU WHY PUilt OIL'S NEW SOLVENIZED TUNE-UP PLAN IS SUCH A :HITWITH H0f0RISTSW25 STATES What a sATisrAcrioN it is to see excess carbon which has , been choking your motor, coming out the exhaust. '' Don't put off getting this Solvenized 'Tune-UpH Treat-" " ment for your car. It is STEP No. 1 of the "TUNE-IP'' PLAN. It gets rid of that excess carbon which clogs perform ance, sets up knocks, wastes gas and oil. It costs S1.C3 , money back if not satisfied you to be the sole judge. Takes only thirty minutes the smartest dollar you ever spent, the best half-hour, too. - Then take STEP Jfo.2 of the "TUUE-UP? PUW-start using Solvenized Pure-Pep Gasoline, a premium quality . gasoline AT TKE PRICE CF KCCLA3L Gallon for gallon it is as goo4 a gasoline as you can get for the money, plus " the same -exclusive solvent which tends to cleanse and lubricate the entire' fuel system and keep excess carbon from piling up. ' , , '."-6 Try this iStepTune-Up'PlaJi. Start today.v . . Net: Ifytr car U turn. ni nblhtfy anU-m; m $kmth rtemmiud mi if tkit Shtti4 pnmkm pmtity tUnt, nn Mtjk4 TtUtmnt, hc UfgUt sstii rmMth Julf . .. tJm VJAR NE17S! ii. v. KALTEt:-cr.:l Pare 07s Ace Cw inwtatar brings you the latest news from Europe. Tune in vry MonJtiy, Weinttdayi ni FriJay, 6:30 P.M. Btlm Tim 5:30 P, M. Cntnl Tim-' ColnmU Statitnt. , . ' , ' Copyrirtt lM,TbPrt OUCo. DdMM' - .es - r:::::::u::; Everyone, whether a stay-at. home or traveler, needs an all round cost for every season. A sug gestion by the February Good Housekeeping is this oatmeal tweed In soft beige. The back is loose and Bared and the sleeves full length. Completing tta'charm is a flattering laflor collar of lyn-dyl fox, plant bed? Answer: Two hundred pounds of a 4-8-3 fertilizer mixture for each 100 square yards of bed should be sufficient. If a lower grade fertili zer is used, it can be supplemented with from 60 to 100 pounds of cotton seed meal, provided the meal - js thoroughly mixed with the soil. The! fertilizer should be broadcast on the bed and thoroughly mixed with the upper 3 or 4 inches of the soil. Avoid the use of manure containing tobacco leaves, stalks, or roots. Question: Should a general plan be followed in locating fruit trees? Answer: Preferably. The location of the 'different fruits should fit in with the general plan of landscap- OF CARBON ROLL OUT ilf , "Whenvouiee a cloud of mtoke." a motorist receaav.' Jf 1 ' . - . dealer's station. Somebody ia getting a BE ,'f'i Meet At GcmUnt Bargain af the year Prmbm Qnatity SOLVENIZED V GASOLINE SEE YOUR FRIENDLY NEIGHBOR PURS OILC2ALER Hcrtfcrd, N. C. ing and beautifying the farm -J-Applet cherry, pear and nut trees may be et in the rear, of the lawn as shade : trees or near corners cf farm buildings ' -.in -order to provide attractive' settings, s Peach and plum trees may be set in the poultry yard , or along the border of the vegetable gardem - Grape vines may be trained as . arbors, i': planted ' as a i rear line fence for the lawn, or along the bor ders of the 'garden. . . . - ' ! i - ,i . ; Little Lights By Vlelaf Alfeyn Storey ; (Prem Petmiir) Gd HoKittttpmtl i , God bless each little light that b.n 'u .' In an unexpected place j 1 1 , On an altar in a darkened church ),,' Or in a sad, sad face. - God bless each little light and fan vtlts flamtnd fceepit righHU. UWiTT"- There is so much of darkness that , r We needeach little light. , - At a recent election a returning officer was questioning a Chinaman who had been naturalized. . . "What's your name?" asked the officer. 1t "Sneeze," said the Chinaman. -. . ' "Is that your Chinese name?" , "No," wax the reply. "I had to translate it into English." "Then what is your name?" de manded the officer, getting angry. "Ah Chew," said the Oriental.. TAYLOR THEATRE EDENTON, N. C Friday, JanS . Wm-oa VXmUx In " "ANOrfifiR THIN MAN v Saturday, Jan. 27 Three MesquHeers in ix "HEROES OF THE SADDLE - 1 - ',! Sunday, Jan. 28 Jane Withers and. Joe Brown, Jr. "HIGH SCHOOL' X Monday and Tuesday, Jan. -Nelson Eddy and Ilona MasMy in "BALALAIKA" I ' (Where there's wine, women and song) ' . Wednesday, Jan. 31 Gleasoa Family in "THE COVERED TRAILER" ... ISim- Solvenized Tune-Up Treatment." K3TKE BOY GETS RESULTS Dave Harris, Chicago, III. Dsvt Ntrris, -sndtr at Netn Dame '. UmittrtUy. tfttn maket the nuni-trip raw hi horn U Stuth frni (00 mllet) M 94 full tank cfgosoUn. -1 HrteturtyUru4tiitk$Ste$ bud TmwUp PUm, On tht vry int . trip ft$r th Tnatmtnt, th cor mm' driven artnnd South Btndftr 20 milts befwt ttmrHmg Saw Ckicegt. DtM did mt UUevt ht had entntk aaHn far A trip hath hat whan hi stopped far mare, the teuh ttill held aver a uU lea afftaUmetAa increase la giatHna mUiete of aver 10l - tt ' SURE 17ITU FUSE i 1 . isg? -ri fit, s'Wl", - I V "3' 'Co f 1 li . . . . ' f f- t p. r , i
The Perquimans Weekly (Hertford, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Jan. 26, 1940, edition 1
6
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