Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-01
The Income Tax Made Clear
DeductQs for Personal Exemption Determined by Your
Status Last Day of arabIe Year-Head of
Family Explained.

or more individuals who are closely con-
nected with him by blood relationship, by
marriage, or by adoption and whose right
to exercise family control and provide
for these dependent individuals is based
upon some moral or legal obligations"
Ia the absence Of continuous actual
residence together, whether or not per
son with dependent relatives is head Of
a family within the meaning of the sta
tute must depend on the character of the
separation.
If a father is absent on business, or a
child or other dependent is away at
school or on a visit, the common home
being maintained, exemption as head Of
a family is allowed.
If through force of circumstances, a
parent is obliged TO maintain his de-
pendent children with relatives or in a
| boarding house while he lives elsewhere,
, the exemption as head of a family is al
lowed
The regulations further state, however,
'if dependent without necessity (NOte
the last two, words continuously makes
his home elsef7hs re, his benesactOr is nol
Che head of family, irrespective of the
question Of>suppOrt."
HEAD OF A FAMILY
FURTHER EXPLAINED.
The Treasury Department further en-
! utAhuEs " assist lht tdA CT ~ d5tcA IA II
if he is. the head Of family in the fol
lowing:
/ Q. A widower has a child over IS years
Of age, whom he supports. who is away
from home attending school. What per
sonal exemption may be claimed by the
the widower who maintains the home?
! A. He is entitled to claim a personal
exemption Of $4,000 a. head of a family
/ provided his net income is under 1000.
he H., L ho
claim only 81 600 as a personal exemption
Q. What personal exemption may be
claimed by a son who actually supports
and maintains his dependent mOthen else
where than in his Gown home by reason
/ Of the fact that be is unable 10 earn
enough to support both in the mother 5
| place Of abode or to defray their joint
expenses In his place of employment?
/ A. The son Is properly classified f0r in
come tax purposes as the head of a
family and as such ID entitled to claim
personal exemption Of $500, provided
! his net income is under $1,000 If the net
! income Is above 5000 he may claim
! only $1,000 as a personal exemption.
OTHER EXEMPTIONS -
MADE CLEAR.
Q. In case both a husband and wife
contribute to the support Of q dependent,
how is the credit Of $500 for dependents
. 10 De tre0teU
A The credit of 500 must be taken by
the one contributing the chief support
and may not be divided between them.
Q. / was not actually living with my
wife on Dec. 81, 1921, due to her mental
incompetency at that time and consequent
confinement In an institution for treat
ment. What personal exemption may I
claim In my, return for the year 1922
% A The separation of a husband ana
wife due 10 tie fact that either has been
declared incompetent and confined in an
Institution for treatment is held % be
temporary in character and consequently
/ without effect in 80 far as the joint per
sonal exemption is concerned. In such
/ cases you may claim $500 as a personal
exemption provided your income is under
N$5, 90. If your net income is above $1,000,
! you may claim only $1,000 as a personal
exemption.
/ REPORT MUST BE FILED.
FAETHOUGH NO TAX Is IMPOSED.
/ Q. am the sole support of my mother,
maintaining a home in which she and
/ live. and, therefore, claim as head Of q
/ family a personal exemption Of 81. 500.
/ My net Inc 1me however, for taxable pur-
1 poses is o7'y $500 Am I required to
! file a return, in view OF the\fact that l
| do not have ,t pay tax?
A. Yes. In such a case you are re-
! CURED 10 file return. although you are
not subject 10 tax. The law requires
/ every married nan or head Of a family
I to file a retur whose net income ex-
( ceeds 50, 900 Failure to file a return sub
/ tects you to tho penalties for such ne
glect.