The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-26
1921 Income Tax Facts You Should
KNOW

thousands Of letters passed in cor
rcspondcncc last year between the bu-
rcau of internal revenue and persons
claiming an exemption Of $4,000 as
head of a family. Circumstances sur
rounding each individual case deter
min" largely whether a person is en-
Titled to such exemption. The fix
ing of his status decides. i'm many in
anccs, whether his income is taxable
or nontaNable. In either event. if his
net income for 1920 was $1,000 or
more if single and $4,000 or more if
married, he must file RETURN
y head of family is defined by
! treasury regulations as "a person
who actually supports and maintains
in one houS, hold one or more individ-
ualS who are closely connected with
him by blood relationship, relation
ship by marriage or by adoption, or
whose right 10 exercise family con-
troll and provide for these dcpcnd-
snts is based upon some moral or lc-
gal obligatory. married person
! living with husband or wife, in ad-
dition to the $4,000 exemption allow
cd such persons. can not claim Il ST.
600 exemption as the head of a fam
llN, irrespective of the question Of the
SuppOrt of others of tkc household
Single Persons.
y single pcrSOn-thc term includ-
ing widows, widowcrs. and persons
not living with wife an husband-is
the head of Il family if he is the sole
support Of one or more relatives liv-
| ing in the same house with him. ana
! II he exercises control of household
affairs The 900 additional cxem-
ption allowed Il single person as the
head Of Il family can not be divid-
! ed between two members of Il house
hold y division of responsibility for
/ control of household affairs" ex-
cludcs both parties from the claim
Whether Il person who does not con-
tinuously live in the same house with
dependent relatives is .cntitled to the
$1,000 exemption depends upon the
character of the separation If a par
cnt is absent on business part of the
year. or a child or other dependent
away ut school or on visit. tn.
common home being maintained. the
exemption applies.
If Il parent is compelled to main
itail his dependent children with
relatives or in boarding house, the
exemption may still apply If, how
ever, tho dependent continuously and
without necessity makes his home
elsewhere than with his bcncfactor.
the latter is not the head of fam
| lily. irrespective of the question of
| support
/ y taxpayer may not be the head
( Of a family and still be allowed an
exemption of $500 for each person
dependent upon him for chief sup
port if such person is under Is years
Of age on incapable of Sclf-supporj be-
cause mentally Or physically dcfcc-
tive. TIL" words "physically dcfec-
tive" refer not only to cripplcs. but
To persons defective because of old
age or i'll health. Neither residence,
relationship. nor legal dependency are
factors i'm determining the right of the
! taxpayer to such exemption TO rs-
! tabiSh his calm, the taxpayer must
have contributed during the year
more than onc-half of the sum need
! eel for the dependents support
Allowable Exemptions.
! The following are concrete cX-
amplrS of circumstances which GOV
!
OF family and for dependents:
A son who has LEFT homo sends his
mother more than half the sum re-
quircd for he" support. He is allowed
an exemption OF 500. unless the
mother is ab," To support herself, i'm
! which case the contribution is re-
Gardcd as Il gift.
y son living at home supports an
! invalid mother i'm the same household
lie il allowed Il deduction of $1,000
as the head "f Il family. plus an
additional 500 for his drprndrnt
who is phN%ical!y .ncapaciiatrd. cit
should be noted that the 5000 addi-
tiOnal exemption lOr dependents does
not apply (" husband or wife. even
though either ON" haas become Il to-
tai burden upon the othcrJ
y single man lives with and sup
ports a mother 20 Years OF Hgc and
TWO sisters - and , years of age. all
in good health His exemption *
200 as tn" head of u family. Since
his mother and sisters are neither un-
der IS years of age nor mentally or
physically ncapacitatcd. rc can not
claim an additional exemption for de
Pc ndcntS.
y WidoWCr is the entire support
Of a child under Is years of aCc. but
otherwise ncglccts it. His exemption
is $1,000. He is not tn" head of a
family. and is entitled only to the
$500 for dependent.