The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-01-12
.IF IN DOUBT, FILE
INCOME RETURNS, IS
COLLECTORS ADVICE

Many local people who believe they
are required to file a return under the
income tax law are making inquiry as
to what exemption is allowed. The
BLANKS must be filed before March Is.
The. revenue act provides an exemp-
lion Of $1,000 for single persons,
$4,000 for married persons and heads
Of families. and an additional exemp-
ZION of 5000 for each person depend
Bnt upon the taxpayer. il such person
Us under Is years of age, or incapa BILE
pf self-support.
Twenty thousand persons last year
bald a fine Of SIS each for failure to
lfile an income tax return for 1918, al
though their income for that year was
not taxable. The delinquests last year
we're persons whose income exactly
equaled the amount of the exemptions
md who considered it unnecessary,
whose income was nontaxa BILE because
4 dependents. and who were under
imilar mistaken impression.
let income Of $1,000. was supporting
sister for whom he was allowed an
Exemption of 5000, placing his income
h the nontaxable list. For this rea-
on he did not file a return. When
is delinquency was discovered
trough return filed by his employ
b. who is required to report payments
{ $1,000 or more to each employee. he
ras fined IS.
To avoid penalty every person
those income for the last year equaled
+ exceeded $1,000 or $4,000 accord
hg to their marital status or their
fatus as the head of family, must
lie return. The law makes no ex-
options, the penalty for failure being
fine of not more than $1,000.
Whether or not person Is the
head of a family" and entitled to a
"a, 200 exemption is a question to be
Astermihed largely by circumstances
Arrounding each individual case. The
king of his status decides. in many
distances, whether his income Is tax
ole or nontaxable.
IA head of a family is identified by
Measury regulation as "a person who
Htually supports and maintains one
more individuals who are closely
Snnected with him by blood relation
lip, relationship by marriage, or by
*option. and whose right to exercise
Amily control and provide for these
Npendents is based upon some moral
legal obligation"
Ia single person is the head of
Mnily If he is the sole support of
eatives living in the same house
eth him and if he exercises control
Household affairs. The words sole
spport' are used in the sense that
hre is no other person to whom the
6pendents may look for support. In
me from other sources, such as in
Fest on bonds, stock dividends,
nsions, etc, il meagre enough still
leave the recipient dependent, does
b preclude a claim for exemption.
oh income, however, must be in
Eded in the return of the head Of
family.
The $1,000 additional exemption al
yed the head Of family can not be
sided between two single members
la household. A division of respon-
ility excludes the parties from such
i'm. A single person who does not
alify as the head of a family may
Il claim an exemption of 5000 for
Ii person dependant upon him for
sport if such person is under IS
RS of age or incapable of self-sup-
It is entitled to the 5000 exemption,
svided the mother can not support
Eself. Otherwise the amount must
considered as gift, and, there.
He. is not deductible. A son living
Nhome and supporting his mother
" claim the $4,000 exemption al
Led, the head of a family. but not an
kltional exemption of 5000 unless
mother is incapable of self-sup-