Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-12-16
new INCOME TAX Law
Many Changes Have Been Made In
the Revenue Act.
VALUABLE FACTS FOR TAX PAYERS
All Returns Must Be Filed Between
january and March 15th-Tax
May Be Paid in lnsta!Iments as

Heretofore.
To what extent will the average tax
payer be benefited by changes in reve-
nue legislation? What are his cXemp-
tions and deductions under the revenue
act of 1921 compared with the revenue
act of 1918? Hundreds of such ques-
tions are reaching the bureau OF inter-
nal revenue. The purpose of this arti-
Gle is to answer those most frequently
presented Later, by direction OF Com
missioner of Internal Revenue, David
H. Blair, there will be prepared for the
press a series of informative articles
telling the taxpayer in detail how to
make out his income FAX return for
1921
Probably the most important change
affecting the man of moderate income
is in the exemptions. Under the 1921
act a man with a net income of $4,000
and less is entitled to an exemption OF
$1,000. Under the revenue act of 1918
this exemption was limited to $4,000.
The revenue act of 1921 also provides
for each person dependent upon the
taxpayer if such person is under eigh-
teen years of age or incapable of self
support because mentally or physically
defective-an exemption of S40O. The
exemption under the revenue act of
1918 was 5000 for each dependent.
Thus a married man with two depend
ents whose net income for 1921 was
$4,000 will pay this year, tax of s6S
compared with $io4 on the same in
come for 1920.
1921 Exemptions.
The exemption of $500 or. less. an
to the head Of a family whose net in
come for 1921 was $1,000 or less an
increase of $50 compared with the 1918
act. A head of family, as defined by
present treasury regulations, is per-
sen who actAary supports and main
tains in one household one or more in
dividuals who are closely connected
with him by blood relationship, rela-
tionship by marriage, or by adoption
or whose ligLt to exercise family con-
troll and provide for these dependents
is based upon some moral or legal OBJ
legation"
The normal rate of tax, per cent on
the first $4,000 or net income above the
exemptions, and 8 per cent on the re-
naming net income, remains unchang-
ed. This applies to citizens and resi-
dents Of the United States. Alien non
residents are taxed to the ful s per
cent on income received from sources
within the United States. Non resi-
dent aliens are allowed only n single
personal exemption of $1,000. To over
come the disparity in the amount of
normal tax in the case of two taXpay-
ers, one Of whom is just within the
lower $4,000 exemption, the other being
just within the higher $4,000 eXemp-
ton, the act provides that the reduc-
ton of the personal exemption from
$500 to $4,000 shall not operate to in
crease the tax, which would be paya-
bic if the exemption were $1,000, by
more than the net income in excess OF
$4,000. For example, a married man or
head of family has net income for
1921 of 5000. Assuming that he has
no dependents, his tax, II shc were al
lowed only $4,000 exemption, would
be $1,000. Under the benefits Of the
above provision however, his tax is.
$40, 4 per cent on the amount of his
taxable income of $1,000. or 800, p'us
the amount by which his net income
exceeds $4,000.
Surtax Rates.
Many Inquiries are received relative
TO the surtaX rates. e..
Taxpayers in the preparation of their
returns should be careful to note that
the surtax rates for theI calendar year
Of 1927 remain unchanged. The surtaX
rates on incomes for 1921 range from 1
per cent on the amount of net incomes
between $4,000 and sG,uGO, TO G5 per
cent on the amount Of net income in
excess of S1,OCO,oOO. For the calendar
year 1922 and each calendar year
thereafter, the surtaX ranges from l
per cent on the amount OF net income
between $4,000 and $4,000 to 80 per
cent by which the amount of net in
come exceeds $2OO,UO0.
Returns Required.
Returns arc required Of every Single
person whose net income for 1921 was
$1,000 or over. every married person