1913 was the first year that Americans were required to pay income tax. Attached you will find the first Form 1040 used

[answerhappygod]

1913 Was The First Year That Americans Were Required To Pay Income Tax Attached You Will Find The First Form 1040 Used 1 (30.48 KiB) Viewed 36 times

1913 Was The First Year That Americans Were Required To Pay Income Tax Attached You Will Find The First Form 1040 Used 2 (70.41 KiB) Viewed 36 times

1913 Was The First Year That Americans Were Required To Pay Income Tax Attached You Will Find The First Form 1040 Used 3 (72.86 KiB) Viewed 36 times

1913 Was The First Year That Americans Were Required To Pay Income Tax Attached You Will Find The First Form 1040 Used 4 (44.89 KiB) Viewed 36 times

1913 was the first year that Americans were required to pay income tax. Attached you will find the first Form 1040 used in 1913 1. I would like for you to calculate how much tax one would pay in 1913 if their taxable income (line 7) was $15,000. Use box 8 to calculate the tax. 2. Also calculate their tax if their taxable income was $49.000 (line 7). Use box 8 to calculate the tax. (The answer is NOT $490) 3. What would be the effective tax rate on $49.000? (Calculate by taking total tax liability and dividing by $49,000) The answer is NOT 1.0%. 4. How much tax would a single person pay today if their taxable income was $49,000? Use tax table below. 5. What would be this person's effective tax rate? (Calculate by taking the total tax and dividing by $49,000). Any thoughts on comparing tax on $49.000 in 1913 vs. 2019. Keep in mind that $49,000 in 1913 would be equivalent to over $1 million today

TO BE PELLED IN BY COLLECTOR List. No District of Form 1040 TO BE FILLED IN BY INTERNAL REVENUE BUREAU INCOME TAX. File No. THE PENALTY FOR FAILURE TO HAVE THIS RETURN IN Assessment List THE HANDS OF THE COLLECTOR OF INTERNAL REVENUE ON OR BEFORE Page Line MARCH 1 IS 20 TO 51.000. BEITRUCTIONS ON PAGE UNITED STATES INTERNAL REVENUE. Date received RETURN OF ANNUAL NET INCOME OF INDIVIDUALS. ( Astfeeder, RETURN OF NET INCOME RECEIVED OR ACCRUED DURING THE YEAR ENDED DECEMBER 31, 191 FOR THE YEAR 1. PROM MARCH 1, TO DECEMBER 315 Filed by for for e) in the City Town, or Post Office of State of roman 1. Gross INCOME (see page 2, line 12) 2. GENERAL DEDUCTIONS (see page 3, line 7) $ 3. NIT INCOME Deductions and exemptions allowed in computing income subject to the normal tax of 1 percent 4. Dividends and net earnings received or accrued, of corpora- tions, etc, subject to like tax. (See page 2, line 11) 5. Amount of income on which the normal tax has been deducted and withheld at the source. (See page 2, line 9. column A) 6. Specific exemption of $3,000 or $4,000, as the case may be (See Instructions 3 and 19). Total deductions and exemptions. Cliems 4,5 and 6) $ 7. TAXABLE INCOME on which the normal tax of 1 per cent is to be calculated. (See Instruction 3). & When the net income shown above on line 3 exceeds $20.000, the additional tax therton must be calculated as per schedule below: INCOME TAX 1 per cent on amount over $20,000 and not exceeding $50.000 2 50.000 75,000 3 75,000 100,000 4 100,000 250,000 5 250,000 500.000 6 500,000 Total additional or super tax $ Total normal tax (I per cent of amount entered on line 7 Total tax liability

2 GROSS INCOME This statement must show in the proper spaces the entire amount of zains, profies, and income received by or accrued to the individual from all sources during the year specified on page 1. DESCRIPTION OF INCOME which has been Amount of become on which tax bus NOT odwide the bees deducted and withheld at the source 1. Total amount derived from salaries, wages, or compensation for personal service of whatever kind and in whatever form paid 2. Total amount derived from professions, vocations, businesses, trade, commerce, or sales or dealings in property, whether real or personal, growing out of the ownership or use of interest In real or personal property, including bonds, stocks, etc. 3. Total amount derived from rents and from interest on notes mortgages, and securities (other than reported on line 5 and 6) 4. Total amount of gains and profits derived from partnership business, whether the same be divided and distributed or not 5. Total amount of fixed and determinable annual gains, profits and income derived from interest upon bonds and mortgages or deeds of trust, or other similar obligations of corporations joint-stock companies or associations, and insurance compa nies, whether payable annually or at shorter or longer periods 6. Total amount of income derived from coupons, checks or bills of exchange for or in payment of interest upon bonds issued in foreign countries and upon foreign mortgages or like obli- gations (not payable in the United States), and also from coupons, checks, or bills of exchange for or in payment of any dividends upon the stock or interest upon the obligations of foreign corporations, associations, and insurance companies engaged in business in foreign countries 7. "Total amount of income received from fiduciaries 8. Total amount of income derived from any source whatever not specified or entered elsewhere on this page 9. TOTALS NOTIS - total of Com Aansoffor 10. ACGREGATI TOTALS OF COLUMOS A AND B 11. Total amount of income derived from dividends on the stock or from the net camings of corporations, joint-stock companies, associations, or insurance companies subject to like tax Crownline) 12. TOTAL "Gross Income to be entered on line 1 of first pape) $ $ $

Single- 2019 If taxable income is but not the tax is: Over- $0 $9,700 $39,475 $84,200 $160,725 $204,100 $510,300 over- $9.700 $39,475 $84,200 $160,725 $204,100 $510,300 10% of the amount over $0 $970 plus 12% of the amount over $9,700 $4,543 plus 22% of the amount over $39,475 $14,382 plus 24% of the amount over $84,200 $32,748 plus 32% of the amount over $160.725 $46,628 plus 35% of the amount over $204,100 $153,798 plus 37% of the amount over $510,300 no limit