Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-01-12
No. 3.

Thousands Of letters passed in
Correspondence last year between
the bureau of internal revenue and
persons claiming an exemption of
$4,000 as head of a family Cir
cumstances surrounding each indi-
vidual case determine largely
whether a person is entitled to such
exemption. The fixing of his status
decides, in many instances, whether
his income is taxable or non-taS-
able. In either event, IL his net
income for 1920 was $1,000 or
more if single, and $4,000 or more
If married, he must file a return.
A head of a family is defined by
treasury regulations as "a person
who actually supports and main
tains in one household one or more
individuals who are closely con-
nected with him by blood relation
ship, relationship by marriage or
by adoption. or whose right to exs
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 family, irrespective
of the question of the support of
others OF the household.
Single Persons.
A single person-the term in
Guiding widows, widowers, and per-
sons not living with wife or hus-
band-is the head of n family If he
is the sole support of one or more
relatives living in the same house
with him, and if he exercises con-
troll of household affairs. The
$1,000 additional exemption allow
ed a single person as the head OF
a family can not be divided be-
tween two members of household.
A division of responsibility Tor
control of household affairs" ex-
cludes both parties from the
claim. Whether a person who does
rot continuously live in the same
house with dependent relatives is
entitled to the $4,000 exemption
depends upon the character OF the
separation. II parent is absent
on business part of the year, or
child or other dependent away at
school or on a visit, the common
home being maintained, the exemp-
ton applies. --r....., ~.
II a parent is compelled to main
tain his dependent children with
relatives or in a boarding house.
the exemption may still apply. IT,
however, the dependent continu"
ously and without necessity makes
his home elsewhere than with his
benefactor, the latter is not the
head of family, irrespective of the
question of support. ......,.--
A taxpayer may not be the head
of a family and stfll 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 or incapable of self
support because mentally or physi-
cally defective. The words "physi-
cally defective" refer not only TO
cripples, but to persons defective
because of old age or i'll health.
Neither residence, relationship, nor
legal dependency are factors in de-
termining the right of the taxpay-
err to such exemption. To establish
his claim, the taxpayer must have
contributed during the year more
than one-half of the sum needed
for the dependents support.
. Allowable Exemptions.
The following are concrete ex-
amples of circumstances which
govern the exemptions allowed the
head of a family and for depend
ents:
A son who has left home sends
his mother more than half the sum
required for her support. He IS
allowed an exemption of $780, un--
less the mother is able to support
herself, in which case the contri-
button is regarded as gift.
A son living at home supports
an invalid mother in the same
household. He Is allowed a de-
duction of $4,000 as the head of
family, plus an additional $500 for
his dependent, who. is physically
| incapacitated. ct should be noted
| that the 5000 additional exemption
| for dependents does not apply to
husband or wife, even though
=