The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1921-02-09
INCOME TAX FACTS
YOU SHOULD KNOW

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 sur
rounding each individual case deter
mine largely whether a person is en-
titled to such exemption. The fixing
of his status decides, in many in
stances, whether his income is taxable
or nontaxable. In either event, if his
net income for 1920 was $1,000 or more
if single, and $1,000 or more if mar
ried, he must file return.
A head of a family is defined by
treasury regulations as "a person
who actually supports and maintains
in one household one or more individ-
uals who are closely connected with
him by blood relationship, relationship
by marriage or by adoption, or whose
right to exercise family control and
provide for these dependents is based
upon some moral or legal obligation. v
A married person living with husband
or wife, in addition to the $4,000 ex-
emption allowed such person, can not
claim a $4,000 exemption as the head
of family, irrespective of the ques-
tion of the support of others of the
household.
Single Persons
A single person-the term including
widows, widowers and persons not
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
exercises control of household affairs,
The $1,000 additional exemption al
lowed a single person as the head of
family can not be divided between
two members of household. A divi-
sion of responsibility for control OF
household affairs" excludes both par
ties from the claim. Whether a per-
son who does not continuously live in
the same house with dependent rela-
tives is entitled to the $4,000 exemp-
ton depends upon the character OF
the separation. If parent is absent
on business part of the year, or a
child or other dependent away al
school on a visit, the common home
being maintained, the exemption ap,
plies.
III parent is compelled to maintain
bis dependent children with relatives
or in a boarding house. the exemption
may still apply. If, however. the de-
pendent continuously and without ne.
cessity makes his home elsewhere
than with his beenfactor, the latter l.
not the head of family, irrespective ot
the question of support.
A taxpayer may not be the head Of
e family and still be allowed an ex
emption of 5000 for each person de
pendent upon him for chief support i
such person is under Is years of agt
or incapable of self-support because
mentally or physically defective. TIT
words physically defective" refer not
only to cripples, but to persons defec
tive because of old age or i'll health
Neither residence, relationship, MOI
legal dependency are factors in deter
mining the right of the taxpayer t.
such exemption. To establish hi
claim, the taxpayer must have con
tributed during the year more thai
Ione-half of the sum needed for the de
pendent's support.
4 Allowable Exemptions
The following are concrete example
cf circumstances which govern the ex
Iemptions allowed the head of famil.
and for dependents:
A son who has left home sends nj
! mother more than half the sum re
Iquired for her support. He is allowe'
an exemption of $500, unless tn
mother is able to support herself, Il
which case the contribution is regard
. ed as gift.
A son living at home supports a
invalid mother In the same household