The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-01-10
INCOME Tx FACTS
YOU SHOULD KNOW

Twenty thousand persons last year
paid fine of So each for failure to
file an income tax return for 1918, al
though their income for that year
was not taxable
The revenue act provides an ex-
emption Of $1,000 for single persons.
$4,000 for married persons and heads
Of families, apd an additional ex-
emption OF 5000 for each person de-
pendent upon the taxpayer. if such
person is under Is years of age. or
incapable of self-support. The delin-
quents last year were persons whose
income exactly equaled the amount
of the exemptions and who consider
ed it unnecessary, therefore, to file Il
return, and others whose income was
nontaxable because of dependents.
and who were under Il similar mis-
taken impression.
For example single man with a
net income of $1,000 was supporting
a sister for whom he was allowed an
exemption Of 5000. placing his income
in the nontaxable list For this reas-
on he did not file return. When his
delinquency was discovered through
return filed by his employer, who is
required to report payments Of ST.
900 or moro to each employee, be
was fined s5.
Must File q Return.
70 avoid penalty, every person
whose income for the. last year equal
ed or exceeded, $1,000. or $4,000, ac-
cording to their marital status or their
status as the head Of family, must
file a return The law makes no cx-
ceptions, the penalty for failure being
a fine not moro than $1,000.
Head Of Family.
Whether or not person IS the
head Of :. family and entitled to
$4,000 exemption is a question to be
determined largely by circumstances
surrounding each individual case The
fixing Of his status decides, in many
instances, whether his income IS tax
able or nontaxable.
head of Il family is defined by
Treasury regulation as "a person who
actually supports and maintains one
or more individuals who are closely
connected with him by blood rela-
tionshib, relationship by marriage or
BY adoption, and whose right to ex-
ercise family control and provide for
these dependents is based upon some.
moral or legal obligation a single
person is the head Of 4 family if he
is the sole support Of relatives living
in the-same house with him and if he
exercises control Of household affairs.
The words sole support are used in
the sense that there is no other per-.
son 20 whom the dependents may look
for support. Income from other sour
ccs, such as interest on bonds, stock
dividends. pensions, etc, if measre
enough still to leave the recipient de-
pendent, does not preclude claim
for exemption Such income, how
ever. must be included in the return
of the head Of the family.
Can Not Divide Exemption.
The 1000 additional exemption al
lowed the head of a family can not
be divided between two single mem
bers of the household. a division Of
responsibility excludes the parties
from such claim. a single persol,
who does not qualify! as the head OF
a family may still claim an exemption
of $500 for each person dependent
upon him for support, if such person
is under IS years of age or incapable
OF self-support. Son who has left
home but who sends TO his mother
more than half the sum required for
her support is entitled to the $500 cN-
cmption, provided the mother can not
support herself. Otherwise the
amount must be considered as a gift.
and therefore, is not deductihlc.
son living at home and supporting his
mother may claim the $4,000 cxemp-
ton allowed the head of q family, but
not an additional exemption Of SOU
unless the mc.hcr is incapable OF sell
support.