Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1920-01-17
Some Pointers About Making Federal
Income Tax Returns.

pald Nne OF 50 each Tor failure TO
file an income-taX return for 1915, al
though their income for that year
was not taxable.
The revenue act provides an exemp-
ton of 81 900 for single persons, 81, 900
for married persons and heads of
families. and an additional exemp-
ton of $500 for each person Dependent
upon the taxpayer, if such person is
| under Is years of age, or incapable Of
selfsupport. The delinquents last
year were persons whose income
exactly equaled the amount of the
exemptions and who considered it
unnecessary, therefore, to file a re-
turn, and others whose income was
nOntaXable because of dependents,
aud who were under similar mis-
taken impression.
For example, a single man with
net income of / 900 was supporting
sister for whom he was allowed an
exemption of $500, placing his income
in the nontaXable list. For this rea-
son he did not file a return. When
his delinquency was discovered
through a return filed by his employ
er, who is required to report pay
ments of 81 900 or more to each en-
ploye. he was fined So.
! MUST FILE A RETURN.
TO avoid penalty, every person
whose income for the last year equal
ed or exceeded 81 900, or 50, 900 ac-
cording to their marital status or
their status as the head of a family,
must file return. The law makes
no exceptions, the penalty for failure
being fine of not more than 81 900
HEAD OF ! FAMILY.
/ Whether or not a person is the
head of family" and entitled to a
! -, 900 exemption is a question to be
determined largely by circumstances
surrounding each individual case.
The fixing of his status decides in
many instances, whether his income
is taxable or nontaxable.
| A head of family is defined by
| Treasury regulation as "a person
who actually supports and main
tains one ornore individuals who are
closely connected with him by blood
relationship, relationship by marri-
age, 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 person 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 household
affairs. The words "soIe support"
| are used in the sense that there is no
other person to whom the dependents
| may look for support. Income from
! other sources, such as interest on
bonds, stocks. dividends, pension,
etc, if meagre enough still to leave
the recipient dependent, does not
preclude claim for exemption. Such
income, however, must be included
in the return of the head of the family.
CAN NOT DIVIDE EXEMPTION.
The 81 600 additional exemption al
lowed the head of family can not
be divided between two single men,
bels of household. A division of
responsibility excludes the parties
from such claim. A single person
does not qualify as the head of
family may still claim an exemption
of 5000 for each person dependent
upon him for support. if such person
is under Is years of age or incapable
of self-support. \ son who has left
home bnt who sends to his mother
more than half the sum required for
her support is entitled 20 the $500 ex-
emption, provided the mother can not
support herself, otherwise the amount
must be considered as gift, and |
therefore, is not deductible. A son
living at home and supporting his
mother may claim the 50 1000 exemp-
ton allowed the head of a family. /
but not an additional exemption of
5000 unless the mother is incapable of /
self-support.