The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-02-23
Income Tax Facts
You Should Know

numerous iuuuiricH are received ht
collectors OF internal revenue concern
INK the income tuN Boo ita relation tn
the combined net income OF husband
and wife Occasionally these questions
Indicate that there Is lu tho mind OF
tina taxpayer the Impression that i'm
come received hN he husband 10 turn
ed over to tho wife mas be Scgurdod
as "a gift md therefore b. not taxable.
such. however b. not the clse. ~ the
combined Income OF husband and wiz,
for the year 1918 cqualcd or exceeded
". 900. = return must hr filed on ur
before March 30. 1890. The combined
net income ~ husband and wife ln eN-
cess OF s e.O00 b. taxable. The law pro-
vidcs also that the Income OF minor
I dependent children must ae Included
in the return OF the parent
For example, "a husbands net iu-
come for 1913 WAS $1,000. His wife
employed as a seumstrusH. received
from such work a net income OF $500.
Two minor sons. vuch received $500
az messengers The total family in-
come was $500. from which may hc
deducted the personal exemption ot
81 .O00 plus s20O for each dependent
son. leaving ~ taxable rrome OF $500.
on which. at ue normal rate co. A per
cent, the tax IN sl2
SurtaN Rate.
Whtre the combined income vi hus-
band wife is $4,000 OF Less the
wife's return may ho Included in that
90 nor husband. Where the combined
income exceeds $4,000, separate rec
turns are required for thr purpose cot
computing Tie surtaN. which applies
only 10 acomer tn eScorB OF TINT
The following WIN serve as am o.
lustratiou of the combined tax on hus-
huud and wife; Tho met income of o.
husband for 1919 was $1,000 and that
uf his wife $1,000. From the hushnud'F
/ WHNHUH HHNn. HA IgIHHNHnI HN. n.Hasu.H
exemption Of ke.nu ON the first
- 600. az the normal rate OF Z per
cent, the ttN D. $50 ON the rcuuiu-
ing 81 600. ut the normal rate OF IS
per cont, the tax ls $50, making the
total normal tax OF the husband 500.
In addition hc pays 81 surtaA Of 2 per
cent on tho amount Of his not income
between $1,000 and $4,000. amounting
Co $40, and . per cent ON the amount
~ his net income between $4,000 and
$4,000. amounting to $50. mukSE e.
total normal and suttuN OF se7t. Tho
wife cun rhtlm no personal exemption.
and her entire income of 81, 900 is
taxed az ono ratio OF 4 per cent. being
less than $4,000. The combined i'm
come OF husband and wife on ON age
resatc income Of $1,000 is $3.50.
Head Of n tumii,.
The exemption Of $1,000 allowed
the head OF a family ulHu ia the sub
iect uf frequent Inquiry. A single
IfN HNN o. inc NftN OF o. NNfmlNN no No
is The sole support OF the relatives live
ing in tho same house with him, aud
IL hc cNcrrIHea control over hounehpld
annlrs Co.. tho absence OF continuous
residence together the circumstance
uf the separation may determine tho
amount OFF D. exemption. Whether
or not hc is the head OF O. family. "a
single prrson. if his net income Tor
1913 WAf 81 600 or more. must Ole u
return for example "a WidnWcr has
"a son " years old whom he lH support
ing fu o. school because his income af
81 GOO q wear does not permit him to
maintain 10 home. Since he b. not
married Doc must ME "a return. hut as
mo hfuH uf 20 family he ls entitled TO
an exemption OF S2,0A0. with an adj
ditiounl exemption Of S200 because of
ttc d%oprudcnt child.
Dependents.
Mere aupport Of "a dependent who
; CouacituuUuaiY aud without necessity
ruaidcH elsewhere than Jon the home OF
The taxpayer, however, doe not con
Ter tnc 49, o exemption, though h
may ht Wsdo the basis of t claim uf
5000 fHr t depcndrnt For each per-
son tutH,H than husband or wifpl de-
pendent upon MIN for support the tHN-
payer tH allowed an exemption OF 5000.
provided sIch persun D. under rs years
Of r Hr Incapable Of scif-Hupport.
Ihis compton does not depend up-
on flml1 relationship nor whether
: the TAXPAYER and dependent are mem-
Z hcrs nf fhr same household. Thus q
~tuNnrNNI unmarried and living boz the
cltN. who supporta 90 mother incapable
of self support and who from choice
lives 200 The old homestead ln the
country. entitled fo an exemption of
: 81. zoo. The separation is not ono uf
+ ucrrsHf| 81. however. the mother
should I|te under the same root with
The son. be- would hc entitled TO the
81 600 compton allowed Tho hcN
ora f1miIt.
iNpcrts Oncr Services.
Careful study Of 40 forms uOw loo
The huUds of Collucto.H Hud deputy rul-
@loctors uf Internal rrVonue Tor dlHtri-
button among taxpayers VIII aid
greatly BOO Ming of a correct return.
li, however. the taxpayer meets with
unusual dinieulues he may call upOn