Connecticut western news., 1921-02-17
INCOME TAX FACTS
 YOU SHOULD KNOW
Information for Those Exempt As We'll as State
 Employees

Births, deaths, and marriages dur ing the year 1920 affect materially income tax returns for that year. Millions of babies were added to family circles, each of whom brings an exemption of $20O in the parents income tax return.
 Widows and widowers who lost their husbands or wives during the year are especially affected. They are single for the purposes of the in- come tax law and are granted only an exemption of $1,00O, unless the head of family.
 Persons who were divorced or separated by mutual agreement dur ing. the year also must consider themselves as single persons.
 The status of the taxpayer on December 31, 1920, determines the amount of the exemptions. If on that day the taxpayer was married and living with wife or, husband, claim may be made for the $2,4O0 exemption. If single, or married and not living with wife or husband on December 31, the exemption is only $1,000. A % #
 Frequent inquiries are received by collectors of internal revenue from storekeepers and other businss men as to whether the taxpayer in busi- ness for himself. may deduct from his gross earnings an amount of salary paid to himself. Wages or salary drawn by taxpayer from his own business are more in the nature of a charge out of profits than a charge against profits. If deductible they would merely be added to his income and the effect would be to take money out of one pocket and put it in another. Therefore, claims for such deductions are not allow able. .... .
 Salaries paid to minor children employed in the conduct of a tax payers business are not allowable deductions. If, however, a son or daurhter has attained majority, or is allowed free use of their earnings without restriction, a reasonable amount paid as compensation for their services may be claimed. q
 A farmer who employs a man to assist in the operation of his farm may deduct from gross income the amount paid for such services. Like wise, if he employs a woman whose entire time is occupied in taking care of the milk, cream, butter, and churns, or if her services are devoted entirely to the preparation and serv- ing of meals furnished farm laborers and in caring for their rooms, the compensation paid her is an allow able deduction. If, however, she IS employed solely in caring for the farmers own household no deduction can be made.
 In arriving at net income upon which the tax is assessed, deductions may be made for ordinary and nee essary business expenses. The revenue act specifically prohibits the deduction of personal, family, or living expenses. ySuch expenses h. clude rent for a home, wages Of servants, cost of food and clothing for the family, education of children land all items connected with the maintenance, well-being, and pleas ure of the taxpayer and his family" "
 Salaries paid to State employees, including also employees of a town, county, or hamlet, are exempt from taxation. Thousands of persons en- gagged in business for themselves or as employees in private business re- ceive such additional compensation. A storekeeper may be elected mayor of his town. The amount paid fer such services sn)'.!d Ee entered cn his income ;ax return. but 1t is not taxable.
 State employees, EoweVe~, must consider carefully their income from all other sources. If, excluding tine amounts paid them by the State, 1t equals or exceeds $1,0G0 or $2,002, according to their marital status, 2 return of income must be filed and the tax paid on net income in excess of those amounts.