[Individual Income Tax Return for Perry Sayles] Page: 2 of 4
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EXPLANATION O CREDIT FOR DEPENDENTS CLAIMED IN ITEM 13
1. NAME OF DEPENDENT 2. RELATIONSHIP 3. INDICATE WHETHER 4. REASON FOR SUPPORT IF NOT UNDER 18
UNDER 18 YEARS OF AGE YEARS OF AGE
INTEREST ON GOVERNMENT OBLIGATIONS, ETC.
INTEREST
OBLIGATIONS AND SECURITIES AMOUNT OWNED RECEIVED
AT END OF YEAR OR ACCRUED
DURING THE YEAR
(a) Obligations of a State, Territory, or political subdivision thereof, or the District of
Columbia, or possessions of the United States-------------------------------------- $---------------- $
(b) Obligations of instrumentalities of the United States (such as obligations issued under
Federal Farm Loan Act, as amended, Home Owners' Loan Act, etc.)
(c) Obligations of the United States
DIVIDENDS FROM DOMESTIC CORPORATIONS
State the amount of dividends received from domestic corporations which are subject to income tax under
the Revenue Act of 1934, including your share of such dividends on stock owned by a partnership, syndi-
cate, pool, joint venture, etc., or an estate or trust --.------------------------------------------------$
INSTRUCTIONSLIABILITY FOR FILING RETURN
An income tax return must be filed by every citizen of the United States
whether residing at home or abroad, and every person residing in the United
States, though not a citizen thereof, having a gross income for the calendar year
1935 of $5,000, or over, or a net income for the same period of (a) $1,000 or over,
if single, or if married and not living with husband or wife, or (b) $2,500 or over,
if married and living with husband or wife, or (c) more than the personal exemp-
tion if the status of the taxpayer changes during the taxable year. If the com-
bined net income of husband and wife, including that of dependent minor
children, if any, is $2,500 or over, or if their combined gross income is $5,000 or
over, either each must make a return, or the income of each must be included
in a single joint return.
ITEMS EXEMPT FROM TAX
(a) Amounts received under a life insurance contract paid by reason of the
death of the insured.
( ) Amounts received (other than by reason of the death of the insured) under
a life insurance or endowment contract, not to exceed the premiums or considera-
tion paid for such contract. Amounts received as an annuity under an annuity
or endowment contract shall be included in gross income; except that there shall
be excluded from gross income the excess of the amount received in the taxable
year over an amount equal to 3 percent of the aggregate premiums or considera-
tion paid for such annuity (whether or not paid during such year), until the
aggregate amount excluded from gross income equals the aggregate premiums
or consideration paid for such annuity.
(c) Gifts (not made as a consideration for services) and property acquired by
bequest, devise, or inheritance (but the income from such property is taxable
and must be reported).
(d) Interest upon (1) obligations of a State, Territory, or a political subdivision
thereof, or the District of Columbia, or possessions of the United States; (2) obli-
gations of instrumentalities of the United States; and (3) all obligations of the
United States. Interest on 4% and 4%% Liberty bonds, United States Savings
bonds, and Treasury bonds, owned in excess of $5,000, and on obligations of
instrumentalities of the United States (except obligations issued under the
Federal Farm Loan Act, as amended) is subject to surtax if the surtax net income
is over $4,010.
(e) Amounts received as accident or health insurance for personal injuries or
sickness, plus damages received on account of such injuries or sickness.
(f) Rental value of a dwelling house and appurtenances thereof furnished a
minister of the gospel as part of his compensation.
(g) Compensation paid by a State or political subdivision thereof to its officers
or employees for services rendered in connection with the exercise of an essential
governmental function.
(h) Compensation received for services rendered without the United States
(except amounts paid by the United States or any agency thereof) by a citizen
who is a nonresident for more than six months during the taxable year.
INCOME
Salaries.-Enter as item 1 all salaries, wages, or other compensation received
from outside sources by (a) yourself, (b) your husband or wife if a joint return
is filed, and (c) each dependent minor child.
Interest.-Enter as item 2 interest received on bank deposits, notes, mortgages,
and corporation bonds, except that interest received on bonds upon which a
tax was paid at source by the debtor corporation should be entered as item 3.
The tax of 2 percent paid at source on such interest should be claimed as a credit
in item 16. Interest on bonds is considered income when due and payable.
Other income.-Enter as item 4 all other taxable income, including dividends
on stock of domestic corporations not subject to income tax under the Revenue
Act of 1934 (such as building and loan associations, etc.), and dividends on stock
of foreign corporations, income of an estate or trust, and your share (whether
received or not) in the profits of a partnership, syndicate, pool, joint venture, etc.
DEDUCTIONS
Taxes.-Enter as item 6 all personal taxes and taxes on property paid during
the year. Do not include Federal income taxes, nor estate, inheritance, legacy,
succession, and gift taxes. No part of foreign income and profits taxes is allowa-
ble as a deduction if a credit is claimed in item 17 of the return.
Contributions.-Enter as item 7 any contributions or gifts made during the'
year to any corporation or fund organized and operated exclusively for religious,
charitable, or educational purposes, no part of the net earnings of which inures
to the benefit of any private shareholder or individual, and no substantial part
of the activities of which is carrying on propaganda, or otherwise attempting,
to influence legislation. The amount claimed shall not exceed 15 percent of the
net income computed without the benefit of this deduction.
Furnish names of organizations and amounts contributed to each.Other deductiono.-Enter as item 8 any other deductions authorized by law,
including interest paid on personal indebtedness.
No deduction is allowable for the amount of any item or part thereof allocable
to a class of exempt income, other than interest. Items directly attributable to
such exempt income shall be allocated thereto, and items directly attributable
to any class of taxable income shall be allocated to such taxable income.
A taxpayer receiving any exempt income, other than interest, or holding any
property or engaging in any activity the income from which is exempt shall
submit with his return as a part thereof an itemized statement, in detail, showing
(1) the amount of each class of exempt income, and (2) the amount of items
allocated to each such class (the amount allocated by apportionment being
shown separately).
EARNED INCOME CREDIT, PERSONAL EXEMPTION, ETC.
In computing the normal tax, but not the surtax, there may be claimed a credit
against nee income of 10 percent of the amount of the earned ne income, but
not in excess of 10 percent of the amount of the entire net income. If the net
income is not more than $3,000, the entire net income shall be considered to be
earned net income. and if the net income is more than $3,000, the earned net
income shall not be considered to be less than $3,000.
A single person, or a married person not living with husband or wife, may
claim a personal exemption of $1,000. A person who, during the entire taxable
year, was the head of a family or was married and living with husband or wife,
may claim an exemption cf "2,500. If husband and wife file separate returns,
the personal exemption may be taken by either or divided between them.
A "head of a family" is an individual who actually supports and maintains
in one household one or more individuals who are closely connected with hins
by blood relationship, relationship by marriage, or by adoption, and whose right
to exercise family control and provide for these dependent individuals is based
upon some moral or legal obligation.
In addition to the personal exemption, a credit of $400 may be claimed for each
person (other than husband or wife) under eighteen years of age, or incapable of
self-support because mentally or physically defective, who received his or her
chief support from the taxpayer. This credit can be claimed only by the person
who furnishes the chief support, and cannot be divided between two individuals.
If the status of the taxpayer, insofar as it affects the personal exemption or
credit for dependents, changes during the taxable year, the personal exemption
and credit shall be apportioned in accordance with the number of months before
and after such change. For the purpose of such apportionment a fractional part
of a month shall be disregarded unless it amounts to more than half a month
in which case it shall be considered as a month.
GENERAL INFORMATION
AffidavitL-The oath will be administered without charge by any collector,
deputy collector, or internal revenue agent. If an internal revenue officer is not
available, the return should be sworn to before a person authorized to admin-
ister oaths, except an attorney or agent employed to represent the taxpayer
before the Department in connection with his tax.
The affidavit must be executed by the person whose income is reported or by
his legal representative or agent. The return may be made by an agent (1) if,
by reason of illness, the person liable for the making of the return is unable to
make it, or (2) if the taxpayer is unable to make the return by reason of contin-
uous absence from the United States for a period of at least 60 days prior to the
date prescribed by law for making the return. Whenever a return is made by
an agent it must be accompanied by a power of attorney on Form 935, or, in the
case of husband and wife, on Form 936 (copies of which may be obtained from the
collector of internal revenue).
The joint return of husband and wife must be signed by both spouses and
sworn to by the spouse preparing-filling in-the return. If the return is pre-
pared by both spouses, or is prepared by neither spouse, then both spouses
must swear to the return, except where one spouse acts for the other spouse
under a power of attorney submitted on Form 36.
Tax.-The tax may be paid at time of filing the return, or in four equal install-
ments payable quarterly provided each installment is paid on or before its
respective due date.
PENALTIES
For willful failure to make and file a return on time.-Not more than $10,000
or imprisonment for not more than one year, or both, together with the costs of
prosecution, and, in addition, 5 to 25 percent of the amount of the tax.
For willfully making a false or fraudulent return.-Not more than $10,000
or imprisonment for not more than five years, or both, together with the costs of
prosecution.
2-16+0 U. S. GO ERNMENT PRINTING OFFICE
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[Individual Income Tax Return for Perry Sayles], legal document, March 4, 1936; (https://texashistory.unt.edu/ark:/67531/metapth1156987/m1/2/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Hardin-Simmons University Library.