The Barre daily times. (Barre, Vt.) 1897-1959, 1921-01-26
INCOME TAX LESSON.
Head of Family Defined by Treasury
Regulation.

Head OF Family Defined by treasury
Regulation.
Thousands of letters passed in cor
respondence last year between the bu
reau of internal revenue and persons
claiming an exemption of $4,000 as head
of family. Circumstances surround.
ing each individual case determine
largely whether person is entitled
to such exemption. The fixing OF his
status decides, in many instances,
whether his income is taxable or non
taxable. In either event, if his net in
come for 1920 was 1000 or more if
| single, and $4,000 or more if married,
he must file return.
A head of family is defined by
treasury regulations as a person who
supports and maintains in one house
hold one or more individuals who are
closely connected with him by blood
relationship, relationship by marriage
or by adoption or whose right to ex-
ercise family control and provide for
these dependents is based upon some
moral or legal obligation. A married
person living with husband or wife,
in addition to the $4,000 exemption
allowed such persons, can not claim a
$4,000 exemption as the head of fam.
lily irrespective of the question of the
support of Others of the household.
Single Persons.
A single person--the term including
widows, wdowers and persons not liv-
living with wife or husbands the
head of family if he is the sole sup
port of one or more relatives living in
the same house with him and if he ex
ercises control of household affairs.
The 81 900 additional exemption al
lowed a single person as the head of
a family cannot be divided between
two members of household. A di-
vision of responsibility for Control of
household affairs" excludes both par
ties from the claim. Whether person
who does not continuously live in the
same house with dependent relatives is
entitled to the $1,000 exemption de
ponds upon the character of the sep
aration. If parent is absent on bust
ness part of the year, or child or
other dependent away at school or on
visit, the common home being main
tanned, the exemption applies.
other Angles to Exemption.
If parent is compelled to main
tain his dependent children with rela
tives or in a boarding house, the ex
emption may still apply.
II, however, the dependent continu-
ously and without necessity makes his
home elsewhere than with his benefac-
tor the latter is not the head of the
family, irrespective of the question of
support.
A taxpayer may not be the head of
family and still be allowed an ex
emption of 5000 for each person de-
pendent upon him for chief support if
such person is under Is years of age
or incapable Of self.support because
mentally or physically defective. The
words physically defective" refer not
only to cripples, but to persons defec
tive because OF old age or i'll health. |
Neither residence, relationship nor le
gal dependency are factors in deter
mining the right Of the tax payer TO
such exemption. To establish his
claim, the taxpayer must have contrib !
uted during the year more than one
half of the sum needed for the de
pendent's support
Allowable Exemptions.
The following are concrete examples
Of circumstances which govern the ex
pmptions allowed the head of a family
and for dependents.
A son who has left home sends his
mother more than half the sum re-
luired for her support. He is allowed
IN exemption of 5000, unless the moth
n is able to support herself, in which
,ase the contribution is regarded as
yift.
A son living at home supports an in
raid mother in the same household.
lie is allowed a deduction of $1,000
Is the head of the family, plus an adj
litional $500 for his dependent, who
: physically incapaeitated. tlt should
,e noted that the 5000 additional ex-
'mption for dependents does not apply
o husbands or wife, even though Ell
her one has become total burden
ipon the otherl.
A single man lives with and sup
,orts a mother 50 years of age, and
wo sisters. 10 and 2l years of age all
n good health His exemption is So
100 as the head Of the family. Since
is mother and sisters are neither un
er Is wears Of age nor mentally or
incapacitated, he cannot
lain an additional exemption for de-
A widower is the entire support of
child under Is years Of age, but l
therwise neglects IT, His exemption
81 200. He is not the head of a
lmily, and is entitled only to the
200 for a dependent
J. H. Burke.
Deputy Collector in Charge.