Free trader-journal. (Ottawa, Ill.) 1916-1920, 1920-01-24
INCOME TAX LAWS'
ESTABLISH Who IS.
THE FAM|Ly'S HEAD.
SOME CHANGES ARE MADE IN
RULES OVER THOSE PRAC-
TlCEO IN 1919 SCHEDULES
MUST BE FILED BY MARCH IS.
MARCH rs.

Have yon filed your income tax
returns? If you do not file your re-
turns on which your income tax FOR
1919 will be based, by March 10,
1920, you will be subject to pay an
additional Is per cent Of the amount
due Uncle Sam and fined at the dis
erection OF the federal authorities for
your negligence.
Income tax blanks will be ready
for distribution within the next ten
days, and all persons who ill out and
mailed their returns last year are
asked to wait until these blanks reach
them, before taking any action in the
matter,
While most of the income tax pro-
visions are practically the same,
changes have been made, especially
IN regard to corporation paid incomes
on bonds, and for this reason it is
thought likely that some confusion
VIII result which may necessitate
the calling in OF aid.
Special instructions as to the ex-
emptions allowed IA head of a fam
ily' and as to who was entitled to
then, We're issued yesterday by the
income tax collector They follow:
Unmarried men and women vino
are bread winners for others are
granted special exemptions on their
earnings before figuring the income
tax now being collected. Although
Il return must be filed by every UNI
married person and by every married
person living apart from his wife cor
hUsnundl who had a net income of
$1,000 or more during 1919, recogni- |
tion H. made in the law of the home
burdens. carried by millions Of such
persons, and relief from excessive
taxation is especially provided.
Exemption of 5000.
In addition to the ordinary per-
sonal exemption of $1,000 and add
tional exemption of $1,000 Is granted .
to heads Of families and there is .
also provided an exemption of 5000
for each dependent under IS years OF
ago or who is mentally or physically !
defective.
The 5000 for each dependent may !
BE- claimed by any taxpayer who is .
the chief support Of such dependent. I
This is not confined to dependents /
who are members Of the family or
relatives. On the other hand it does .
not include servants or others who ,
are earning their living. And it does /
not apply to the wife or husband Of |
tha married taxpayer, even though |
such person may have become total .
burden.
II should be remembered that the |
person who claims exemption as
head of a family must quality for
it, Two single persons who divide
between them more or less equally,
the financial and other responsible
tiles OF a household can not claim
that either one is the head OF the
family. But If single person actu.
ally assumes the total responsibility
les OF the household and is aided by
having one of his brothers or sisters
support himself and contribute an
amount that could not practically be
considered more than his board. such
trivial circumstances must not be al
lowed to interfere with his clear
claim for exemption.
Who Is Head Of FamIv?'
single persons is head of fam
lily if by December 3lst he had be-
'oiilC VIC Noi- Shpppil VI Ni'S' lFIh
tives (by blood, marriage or adop.
tom living in the same house with
him and looked upon by them to ex.
ercise greater or less amount of
control in the matters affecting the
support and maintenance of the
household.
The phrase sole support is here
used in the sense that there is no
other person to whom the depend
entS are looking for a substantial
portion of their support, There may
be another source of income (such as
interest on bonds, dividends on stock,
pension), which, if meager enough,
TO still leave the recipient dependent,
should not interfere with the claim
for exemption. Such meager income
of dependents, as well as the inconse-
quental profit on the board of any
self-supporting member of the house
hold, must. however he included In
the return of the head of the house :.
mold.
Defined BY Article. ,
But a division OF responsibility will
in every case exclude the parties from ,
the claim for the additional exemp- :
ton. Article 800 of regulations As ;
defines that head of family is "a
person who actually supports and ,
maintains in one household one or :
more individuals who are closely
connected with him by blood rela. =,
tiOnshp, relationship by marriage or ,
by adoption, and whose right to exer. y
else family control and provide for =
these dependent individuals is based .
uron some moral or legal obligation"
Once the existence of the fact that y
a taxpayer is the principal cause for :
the creation or maintenance II a
home is established it can not be \
destroyed by his mere temporary or n
unavoidable absence from it. .