Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-24
INCOME TAXLAW'S
TERMS EXPLAINED
Who Is Required Under the Act
to Make Returns to
Collectors.
TAX FOR PRESENT YEAR
ON TEN-MONTH PERIOD
Conditions Under Which Both Hus-
bands and Wives Must File
Reports.

beginning herewith, and continuing
daily. The Star will publish q series of
articles on the new federal income tax
law, by IN expert ON the subject, In an
endeavor to make clear for the benefit
OF Its readers the intricate provisions
of this act.
The first question which arises under
the income tax law is WHO is subject
to the tax?' and the answer is:
a. Every citizen Of the United States
residing in the United States;
(9 Every citizen of the United States
residing abroad;
States, though not citizen thereof.
Required to Make Return.
The next question which presents itself
is What are the requirements or con-
above classification liable to render
return and pay the tax?' Everybody
has to make a return who is
LIST. OF lawful age, and
I'd. Whose income is more than 5000
for the year.
A Treasury decision Of January 16,
1914. alters that part of the law for
this year. for the reason that the law
did not become effective until March 1.
1913, and only takes in ten months Of
the year, namely. March 1, 1913, to De-
cember 81, 1913, both inclusive. This
decision requires all persons whose in
come-that is to say. any income
between these periods-exceeds g., 500
will have to make a return this year.
Here arises a question which has been
asked any number Of times by married
people, and that is. Though the law
allowed married people $3,33333, will
we have to make a return on our net
income it it is not that much?" The
answer is. Yes" IL either has an in
come Of over $4,000 for this year.
Treasury decision. December 81, 1913,
rately has an income equal to or in
excess of $4,000 (Which will be $500
for ten months), a return Of the an
nual net income Is required under the
law. and such return must include the
income OF both, and in such case the
return must be made, even though the
combined incomes of both be less than
$1,000 ($3.S3s.33 this year,.
May Combine in Return.
The next question is "Who shall make
this return They may combine their
return so long as they show on the re-
turn sheet the income of each from the
various sources and give the name and
address of both. The husband is sup
posed to make this return, he being
looked upon as the head and legal repre-
sentative Of the household and having
control of the income and for this reason
being better prepared to ascertain the
total amount of income.
If the wife has a net income of more
than 5000 from her separate estate, and
her husband has other net income, the
total income of both being over $1,000,
then the wife's return is attached to that
of her husbands, or his income should
be included in her return. Then the
question is asked. Suppose neither has
an income of 5000 Cor $2,500 for the ten
months) and their combined income is
over $4,000 Tor $3.33333), what them"
They will have to make a return, for
the law holds them jointly and separate
ly liable for such return and for the pay
ment Of the tax.
The subject to be taken up tomorrow
will be General Deductions