Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1920-02-06
MOST INCOMES ARE
TAXABLE THIS YEAR
HIGH WAGES BRING NEARLY
EVERYBODY WITHIN FEEDER 60
AL LAW.

last year will this year bring practi-
per cent of the married men in the
county within the range of the in
come tax which must be paid on or
before March Is.
There has been considerable misun-
derstanding in the past regarding the
income tax as is manifest by the fact
that last year 10000 persons paid a
fine of IS for tach failure to file an
income tax return for 1918, although
their income for that year was not
taxable. The delinquents last year
were persons whose income exactly
equaled the amount of the eXemp-
tions and who considered it unneces-
sary, therefore, to file return, and
others whose income was nontaxabl,
because of dependents, and who were
under similar mistaken impression.
Tax return blanks were forwarded
this week to all persons who made
returns in the past, but those who arc
this year obliged to make report or
pay tax for the first time must write
in to the collector of internal revenue
at Tacoma for the blank.
The revenue act provides IN eX-
emption of $1,000 for single persons,
$4,000 for married persons and
heads of families, and an additional
exemption of 5000 for each person
dependent upon them, if such person
is under Is years of age, of inca
pable of self-support.
For example, a single man with a
net income of $1,000 was support
ing sister for whom he was al
lowed an exemption of $500, placing
his income in the nontaxable list.
For this reason he did not file re-
turn. When his delinquency was dis
covered through return filed by his
employer, who is required to report
payments of $1,000 or more to each
employee, he was fined IS.
To avoid penalty, every person
whose income for the last year
cqualed or exceeded $1,000, or
$4,000, according to their marital
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.
WhetheA or not person is the
head of a family" and entitled to -
$4,000 exemption is question to be
determined largely by circumstances
surrounding each individual case.
The fixing of his status decides. In
many instances. whether his income
il taxable or nontaxable.
A head of a family is defined by
treasury regulations as a a person
who actually supports and maintains
one or more individuals who are
closely connected with him by blood
relationship, relationship by marriage
or by adoption. and whose right to
exercise family control and and pro-
vide for these dependents is based
upon some moral or legal obligation"
A single person is the head of a
family If he is tn sole support of rel
ativCs living in tht same house with
him and If he exercises contorl OF
household affairs. The words sole
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. stock dividends,
pensions, ETC., if meagre. enough still
to leave the recipient dependent, does
not preclude claim for exemption
Such income. however, must be in
Guided in the return of the head OF
the family.
The $1,000 additional exemption
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