Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1920-01-13
INCOME TAX FACTS
" YOU SHOULD KNOW
INCOME TAX FACTS, YOU SHOULD KNOW

NO. 2.
Twenty thousand persons last year paid a
fine of S. each for failure to file an income
tax return for 1913, although their income for
that year was not taxable
The revenue act provides an exemption of
$1,000 for single persons $4,000 for married
persons and heads of families, and additional
exemption of 5000 for each person dependent
upon the taxpayer, if such person is under
eighteen years of age, or incapable of self
support The delinquents last year were per-
sons whose income exactly equaled the amount
of the exemptions and who considered it un-
necessary, therefore, to file return, and others
whose income was non-taxabe because of de-
pendents and who are under similar mistaken
impression.
t~ For example, single man with a net in
come of $4,000 was supporting sister for
whom he was allowed an exemption of $780,
placing his income the non-taxable list. For
this reason, he did not file a return. When
his delinquency was discovered through a re-
turn filed by his employer, who is required to
report payments of $1,000 or more to each
employee, he was lined IS.
r. MUST FILE A RETURN
To avoid penalty, every person whose in
come for the last year equaed or exceeded
$1,000, or $4,000, according to their marital
status or their status as the head of family,
must file a return. The law makes no ex-
ceptions, the penalty for failure being fine
of not more than $1,000
/ HEAD OF A FAMILY
III Whether or not person is, the "head of a
a question to be determined largely by cir
cunStanceS surrounding each individual case
The fixing of his status decides, in many in
stances, whether his income is taxable or non
taxable.
= A head of family is defined by treasury
regulations as "a person who actually supports
and maintains one or more individuals who are
closely connected with him by blood relation
ship, relationship by marriage, or by adoption,
and whose right to exercise family control and
provide for these dependents is based upon
some moral or legal obligation" A single per-
son is the head of family if he is the sole
support of relatives living in the same house
with him and if he exercises control of house
hold affairs. The words sole support" are used
in the sense hat there is no other person to
whom the dependents may look for support.
Income from other sources, such as interest on
bonds, stock dividends, pensions, etc, if meager
enough still to leave the recipient dependent,
does not preclude claim for exemption Such
income however, must be included in the re-
turn of the head of the family
CANNOT DIVIDE. EXEMPTION
e The $1,000 additional exemption allowed the
head of family cannot be divided between
two single members of 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 ex-
emption of 5000 for each person dependent
upon him for support, if such person is under
eighteen years of age or incapable of Self4
support. A 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
exemption, provided the mother cannot support
herself. Otherwis the amount must be con-
bic. son living at home and sup orting his
mother may claim the $1,000 exemption allowed
the head of a fairly, but not an additional
exemption of $500 unless the mother is in
capable of Self-Support.