The Carlisle independent. (Carlisle, Ark.) 1905-current, 1920-01-08
Income Tax Facts You Should
Know.

year paid a fine of So each for fail
ure to file an income tax return
for 1918, although their income
for that year was not taxable.
The revenue act provides an ex-
emption of $1,000 for single per-
sons, $4,000 for married persons
and heads of families, and an addi-
tional exemption of 5000 for each
person dependent upon the tax
payer, if such persons is under
Is years of age, or incapable of
self support. The delinquents
last year were persons whose in
come exactly equalled the amount
of the exemptions and who consid-
cred it unnecessary, therefore, to
file return and others whose in
come was nontaxable because of
dependents, and who were under
similar mistaken impression.
For example, a single man with
a net income of 1000 was sup
porting a sister for whom he was
allowed an exemption of 5000,
placing his income in the nontax
able list. For this reason he did
not file a return. When his de-
linquency was discovered through
a return filed by his employer,
who is required to report pay
ments OF 81 900 or more to each
employee, he was fined So.
To avoid penalty, every person
whose income for the last year
equaled or exceeded 81 900 or ST.,
900 according to their marital
status or their status as the head
of a family must file return.
The law makes no exceptions, the
penalty for failure being a fine OF
not more than 81 900.
Whether or not person Is the
head of the family and entitled
to-a 50 1000 exemption is question
% be determined largely by cir
sumstances surrounding each indi
fidual case. The fixing OF his
status decides, in many instances
whether his income Is taxable or
nontaxable.
4 head of family is defined by
treasury regulations as "a person
who actually supports and MAIN
tains one or more individuals who
are closely connected with him by
blood relationship, relationship by
marriage, or by adoption, and
whose right to exercise family con
rol and provide for these depend
ents is based upon some moral or
legal obligation. = A single per-
son is the head of the family if he
is the sole support OF relatives liv-
ing 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 person
to whom the dependents may look
to for support. Income from 9TH
er sources. such as interest on
bonds, stock dividends, pensions,
etc, if meagre enough still to
cave the recipient dependent,
oes not preclude claim for ex-
mption Such income. however,
must be included in the return Of
he. head of the family.
The 81 900 additional exempl
ion allowed the head of family
can not be divided between two
single members of a household. A
division OF responsibility excludes
the parties from such claim. a
Single person who does not qualify
as the head OF a family may still
claim an exemption of 5000 for
each person dependent upon him
for support, if such person is un-
der. Is years OF age or incapable
of self support. A son who has
left home but who sends to his
mother more than half the sum
required for her support is emit
tied to the 5000 exemption, pro,
vided the mother can not support
herself. Otherwise the amount
must be considered as a gift, and
therefore. is not deductible A
son living at home and support
ing his mother may claim the 81
600 exemption allowed the head
of family, but not an additional
exemption of 5000 unless the
mother is incapable Of self sup
port.
o-,
: