The Columbia evening Missourian., 1921-12-21
1921 REVENUE
ACT IN FAVOR
OF TAXPAYER
Commissioner Blair Tells How
Persons Concerned Should
Make Income Re-
turn,
turn.
1921 SURTAX UNCHANGED
Period for Filing Individual
Tax Reports Is From Jan.
l.-March l on Calen-
dar Year Basis.


payer be benefited by changes in rcvenut
legislation? What are his exemption:
and deductions under the revenue ac'
Of 1921 compared with the revenue acI
of 1913? Hundreds of such question:
are reaching the Bureau OF Internal Rev
enue.
Probably the most important change
affecting the man Of moderate income j:
in the exemptions. Under the 1921 ac'
a married man with net income OF 50.
600 or less is entitled 10 an exemption
Of $500. Under the revenue act ol
1918 this exemption Was limited 10 sZ,
600. The revenue act Of 1921 also pro
vides for each person dependent upor
the taxpayer if such person is under cigh
teen wears Of age or incapable Of sell
support because mentally or physically
defective-an exemption of S40O. The
exemption under the revenue act OF l9ls
was $500 for each such dependent. Thus
a married man with two dependents
whose net income for 1921 was s5.OOt
will paw this year a tax Of s68, compared
with sl04 on the same income for l9Zo
1921 EXEMPTIONS
The exemption of $500 applies alse
TO the head Of a family whose ne, income
for 1921 was 5000 or less, an increase
of $500 compared with the 1915 act. A
head of family. as defined by present
treasury regulations, is "a person who
actually supports and maintains in one
household one or more individuals who
are closely connected with him by blood
relationship. relationship by marriage, oil
by adoption, or whose right to exercise
family control and provide for these de
pendenis is based upon some moral oi
legal obligation.
The normal rate of tax, per cent on
the first $4,000 Of net income above the
exemptions, and per cent on the re-
naming net income, remains unchanged
This applies to citizens and residents Of
the United States. Alien non-residenis
are taxed to the full 8 per cent on in
come received from sources within the
United States. Nonresident aliens are
allowed only single personal exemption
Of $1,000. To overcome the disparity in
the amount Of normal tax in,the case Of
two taxpayers. one of whom is just with
in the lower $1,000 exemp:,oE. the otheI
being just within the higher $500 ex
emption the act provides that the reduc
tion Of the personal exemption from 81,
500 10 $1,000 shall not operate 10 in
crease the tax. which would be payabl,
if the exemption were $500, by NOR,
than the net income in excess Of $1,000
For example, married man or head o
a family has net income for 1921 o
s5.0l0. Assuming that he has no de
pendants. his tax. If he were allowed onl,
the $1,000 exemption. would be sl20.4C
Under the benefits Of the above provi
sion however. his tax is sll0. per cen
on the amount Of his taxable income o
$500, or 500. plus the amount b
which his net income exceeds 5000.
suRTAx RATES
Taxpayers in the preparation Of thei
returns should be careful to note that tn
suriax rates for the calendar year 1872
remain unchanged. The sur,ax rates o
incomes for 1921 range from l per Ger
on the amount Of net income between IS
600 and $4,000 10 IS per cent on III
amount of net income in excess of 81
100000. For the calendar year 1922 an
each calendar year thereafter. the surta
ranges from / per cent on the amour
Of net income between $1,000 and slt
900 to 50 per cent by which the amour
Of net income exceeds 100000.
RETURNS REQUIRED
Returns are required Of every singl
person whose net income for 1921 wa
$1,000 or over. every married person nj
living with husband or wife whose n,
income was $1,000. and every marie
person. living with husband or wife who's
net income was $1,000 or over. Ever
person whose gross income for the yei
was $1,000 or over must make a retur
regardless Of the amour, Of net incom
This requirement was not contained
the revenue act Of 1918. Every marie
couple living together must make a r
turn. either separate or joint as desire,
if their aggregate net income was S2.0t
or more. or If their aggregate gross il
come was $1,000 or more.
Gross income inclu les practically e
cry dollar the taxpayer received durir
the year 1921. Net income is gross i
come minus the exemptions and dedu
iions specifically provided for by the az
PERIOD FOR FILING RETURNS
The period for filing returns is fro
January ] to March Is. 1922, when ma,
on the calendar year basis. II the ia