New-York tribune., 1920-01-11
Federal Income Tax Questions
Ancered for The Tribune by Morris Frey Assistant Treas
Of the Cuaran ty Trust Company

Q.--E. M. IT,: IN October. 1919. received
$4,000 from my employer in recognition OF
past seroices." covering at that time preiod
ot nine years months.
The Gift or bonus ,Uas made TO enable me
to buy home at time When houses to
rent soere scarce and rents er0rbitant.
Is there any prorision in income tar lac
oy Wh'ch income used for such purpose Is
not taxable?
II this income Is tdrdble. can 1t be as
and omly such part is represented by the
year 1919. on. one-tenth, be ta1ablc income
for that year?
My employer intends to charge the entire
amount OF as expenses paid during 1917
A.-Since the $4,000 to which you refer
was pad you in recognition of services rem
derd, 1T constitutes taxable income to you
and must be reported as 1919 income, since
it was received during that year.
ON d.: I haze been married for SEQ
eral months during 1919 Qrom Septembery.; .
% Am entitled to exemption up to $2,ooo
married man: (2) / hare also had
covered by Insurance; 90 l have paid for
the support of an immediate member OF my
family aoho acas Ill for several months. Can
! make deduction for this amount as a caar1-
A.-O You are entitled to an exemption
of $4,000 if living with your wife on De-
cember 81. 1919.
(2) Losses by fire. not compensated for
CD If the member of your family to whom
you refer was person other than your
wife and was under eighteen years of age
or incapable of self-support because mentally
or physically defective and received his chief
support from you during the taxable year.
you entitled to additional exemption
of $500 on his account. Such amount is not
an allowable deduction under the head of
charitable contributions.
o.. c.: should like to knoaU auhat tar
haze to pay on ny salary. am nom-
in Ne,c Yorh. Are there any exemptions
dlloared to a married man?
At-A nonresident is subject to the New
York State personal income tax salary
earned in New York State. No personal ex-
emption is allowed under the law to nor
resident The law provides however. that a
return must be filed. only in the following
cases:
1) BY married person living with hus-
band or wife. if his net income equals or
exceeds $4,000. and
(2) By, a single person. or married per-
not living with husband or wife, if his
net income equals or exceeds $1,000.
Under the law. however. your employer is
required to withhold l per cent of your en-
State Comptroller if such salary paid is in
excess of S. 000
q L. B.: L. Is the pension of a
Ciuu War reteram subject to ta1ation?
2. Is the interest on United States goU-
ernn,ent bonds subject to tanatiom under
the aforesaid laW?
Al. Pensions paid by the United States
Government to Civil War veterans are SUBJ
ject both to normal tax and to surtax
2. Interest received from United States
Government bonds, issued prior to the sec
ond Liberty Loan. and interest on 3a4 per
cent Victory notes is wholly exempt from
tax. Interest received on other issues of
Liberty bonds is wholly exempt from normal
tax. but from surtax only to the following
extent:
Exempt for life of bonds, As and AS
Aggregate holdings of $4,000. Exempt for
five years after declaration of peace, As and
4As-Aggregate holdings of $50, 900 Ex-
empt for two years after declaration of
peace, 1st ANS tissue of October "a, 1918
only, $4,000; 4th AIS. $50, 900. Condi-
tional exemption. 4s. I'd AIS and Sd AIS
Aggregate holdings of 1$45,000; 4s and 4As,
additional 2$20,000.
For two years after declaration of peace.
provided original subscription was made to
|. S30o09 Fourth Loan and still owned at the
date of the taxpayers income tax return.
If less than this amount, then the exemption
is equivalent to one and one-half times the
amount so subscribed and held
provided original subscription is made
for $500 Victory Liberty Loan of 1923 and
the notes still owned at the date Of the
taxpayers income tax return If less than
this amount is subscribed for. then the ex