Smyrna times., 1920-03-03
FEDERAL INCOME TAX DUE
sIust be Paid by March Is 10 Escape

he Pc.-a.ty d ne Law
The ..me tcr filing eCc.al Income
az rctllns is drawing 20 . clcge, 2s
l.arch 18th is just owo weeks OF. 1t
Will reqLi.e imme Iate attention u
the taxpayer to avoid penalty, as
the government will not extend The
tme beyond that date. Numerous
.nquilies are received by collectors Of |
Internal RevenLe concerning The In |
come Tax in its relation 70 the com
bned net income of husband and |
WIFE Occasionally thcse questions
Indicate that there is in the mind Of |
The taxpayer The impression chat IN
come received by the husband if TuTn-
ed oNe % ,he wife may be regarded
as a gift and therefore not taxable.
ST ch, however, is not the case. If the
combined income of husband and wife
.ol the year 1919 equaled OF exceeded
$1,000, return mist be filed on or
le1orc March 18th, 1920. The rom-
til4ed net income CT hustan and wife
N excess CT $4,000 is taxable. The
law provides also that the income Of
minor dependent children must be in
Guided in the return of the parent.
For example, husbands net IN
come fog 1919 was $1,000 His wife,
employed as d seamstress. received
from such work a net income of $500
Two minor sons, dependent aPon ,heiI
"a ents, each received $500 as mes
seagers. The total family income was
S2,7C0 from which may he deducted
the personal exemption of $4,000 plus
$500 for each dependent son, leaving
q taxable income of $500, on which
the normal rate of 4 per cent, the TAX
IS $12.
How 10 Compute Surtax Rates
Where the combined income of hus-
band and wife is $4,000 or less, the
wife'S return may be included in that
of her husband. Where the combined
income exceeds $4,000, separate re-
turns are 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 combined tax on hus-
band and wife: The net income of
husband for 1919 was $1,000 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 $16O. On the re-
naming $1,000, at the normal rate of
8 per cent, the tax is $50, making a
total normal tax of the husband S24O.
in addition he pays a surtax of / per
cent on the amount of his net income
between $4,000 and $4,000, amounting
to $40, and per cent on the amount
of his net income between $4,000 and
$1,000, amounting to 500, making a
total normal tax and surtax of $27O.
The wife can claim no personal OK
emptiOn, and her entire income Of
$4,000 is taxed at the rate of per
cent, being less than $4,000. The
combined income of husband and wife
on an aggregate income of $4,000 is
$500.
Exemption Allowed Head of Family
The exemption of $4,000 allowed
The head of family is also the sub
ject of frequent inquiry. A single
person is the head of a family if he
is the sole support of the relatives
living in the same house with him,
and If he exercises control over house
hold affairs. In the absence of con
tlnued residence together the circum-
stances of the separation may Geter-
mine the amount of exemption.
Whether or not he is the head Of a
family, a single person, if his net in
come for 1919 was $1,000 or more.
must file a return. For example, a
wldower has son 8 years old son
whom he is supporting in a school be-
cause his income of $1,000 a year
does not permit him to maintain a
home. Since he is not married, he
must file return, but as head of q
family he is entitled to an exemption
: OF $4,000, with an additional exemp-
ton of 5000 because of dependent
| child.