The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-27
FACTS
YOU SHOULD KNOW


Numerous inquiries are received by
collectors of internal revenue con-
corning the income tax In its relation
to the combined net income OF hus-
band and wife. Occasionally these
questions Indicate that there liz in the
mind OF the taxpayer the impression
that income received by the husband
II turned over to the wife may be
regarded az a gift and therefore is not
taxable. Such. however. is not the
case. II the combined income of
husband and wife for the year 1919
equaied or exceeded $4,000, a return
must be filed on Or before March is,
1920. The combined net income OF
husband and wife in excess OF $4,000
Is taxable The law provides also
that the income OF minor dependent
children must be included in the re-
turn OF the parent
For example. a husbands net in
come for 1919 was $1,000. His wife,
employed as seamstress, received
from such work net income OF
$5oe Two minor sons, dependent
upon their parents, each received
1900 as messengers. The total family
income was s2,700 from which may
be deducted tho personal exemption
OF $4,000 plus $200 for each DEEPEN
dent son, leaving a taxable income
OF 5000. on which, at the normal rate
Of per cent, the tax Is s12.
Where the combined income of
husband and wife is $1,000 or less the
wife's return may be included in that
of her husband, Where the COM
bined income exceeds $4,000, separate
returns ar required for the purpose OF
computing the surtax, which applies
only to incomes in excess OF that
amount
The following will serve as an illus
tration of the com bined tax on hus-
band and wife: The.net income of a
husband for 1919 was $4,000 and that
Of his wife $4,000. From the hus-
bands income may be deducted the
personal exemption OF $4,000. On the
first $4,000, at the normal rate OF 4
per cent the tax is $3.50. On the
remaining $1,000. at the normal rate
OF per cent, the tax lis $50, making
the total normal tax of the husband
S240. In addition he pays surtax
of / per cent on the amount of his
net income between SIS, 200 and 5000.
amounting to SIC. and 2 per cent on
the amount of his net income between
S., 900 and $1,000, amounting to $50.
making a total normal and surtax of
SsT0. The wife can claim no per-
sonai exemption, and her entire In
come of $4,000 is taxed at the rate of
4 per cent, being less than $4,000.
The combined income of husband and
wife on an aggregate income OF
5000 Is $3.50.
The exemption of $1,000 allowed
4 - -. s.
ject OF frequent inquiry. A single
person Is the head OF a family II he
is the sole support Of the relatives lfv-
ing in the same house with him and
If he exercises control over house
hold affairs. In the absence Of con-
tinuous residence together the cir
cumstances OF the separation may de-
termine the amount of the exemption.
Whether or not he is the head OF
family, a single person. il his net III
come for 1918 was $1,000 or more.
must file a return. For example,
widower has = son nine years old
whom he is supporting in a school
because his income OF 81. 500 year
does not permit him to maintain
home. Since he is not married, he
must fiie a return. but as the head OF
a family he is entitled to an exemp-
ton Of $4,000, with an additional ex-
emption OF 5000 because of the do
rsandeat child.
Mere support OF dependent who
continuously and without necessity
resides elsewhere than in the home of
the taxpayer. however, does not con-
fer the $a.o0a exemption. though it
may be made the basis of 8 claim of
see for dependent Fer each per
son fother than husband or wife) de-
pendent upon him for support the tax
payer Is allowed an exemption OF
5000, provided such person is under
eighteen years of age or incapable
OF scif-support
This exemption does not depend
upon family relationship nor whether
the taxpayer and dependent are men-
bers OF the same household. Thus s.
taxpayer, unmarried and living in the
city. who supports 4 mother incapable
Of seif-support and who from choice
lives in the old homestead in the
country, Is entitled to an exemption
OF $1,000. The separation is not one
OF necessity. RI. however. the mother
should live under the same roof with
the son, he would be entitled TO the
81, 600 exemption allowed the head OF
family.
/ Careful study OF the forms now in
the hands OF collectors and deputy
collectors Of internal revenue for dis
tribution among taxpayers will aid
greatly in the fling of correct re-
turn. n. however, the taxpayers
meets with unusual difficulties he may
call upon the bureaus experts, who
are visiting every county in the
United States to assist taxpayers in
making out the forms The services
OF these experts Ia offered without
cost, but failure of the taxpayer to see
them does not relieve him from his
obligation to file his return, accom-
panied by at least one-fourth of the
amount of tax due, on or before
March Is, 1920.