Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-02-02
INCOME TAX FACTS
YOU SHOULD KNOW


WHAT EXEMPTIONS ARE ALLOWED.
FERNS for making returns of income
for the year 1891 have been revised and
simPliaed, and contain Instructions
which il carefully followed will be of
material aid to taxpayers in the avoid
aRce of errors.
Many of these errors are due to mis-
underv4a ding of the exemption allowed
a head of a family, defined by treasury
regulations as person VINO actually
supports and maintains in one household
one CT more individuals who are closely
connected with him by blood relation
ship, relationship by marriage or by
adoption, or whose right to exercise
family control an provied for these de-
nendents Is based upon some moral or
legal obligation"
The exemptions allowed a head of a
family under the revenue act of 1921 are
fae same as granted a married person
se,500 where the net income for 1921 was
5000 or less and 50 900 where the net
income exceeded 5000 Circumstances
surrounding each individual case deter
mine largely whether a person is entitled
to such exemption.
A single perSen-the term Including
wfdoweds, widows, and persons not liv-
| ing with wife or husbands the head
| OF a family If he is the sole support of
| one or more relatives living in the same
| house with him. and IL he exercises con-
| troll of household affairs. A married per-
/ son living with husband or wife, in addi-
| ton to the exemptions allowed such per-
| sons. can not claim M exemption as
| the head of a family, irrespective of the
! support Of others in the household
Exemptions Not For ALL
Whether person whe does not con-
| tinueusly live in the same house with
dependent relatives Is entitled to the
exemptions depends upon the char
| aeter of the separation. If a parent
| is away on business part of the year
| or child or other dependent is away
on visit, the common home being
maintained, the exemptions may be
claimed. If parent is compelled to
maintain his dependent children with
| relatives or in boarding house, the
exemption may still apply. If, how
ever, the dependent continuously an6
| without necessity makes his home else,
whfre than with the beHefactor, the lat
ter is not the head of a family, ire.
speetive of the question Of support.
A taxpayer who is not the heat
OF a family may still be allowed tn,
exemption of $500 for each person de
pendent upon him fer chief support
If such person is under IS years of ag
or incapable Of self-support becaus
mentally OF physically defective.
Tax ExamPies.
Following are concrete examples o
taxes due under the revenue act of 1872
and circumstances governing exemption
allowed a head of d family and for de
pendeRts
A married couple living together wit
two children, 10 and IL years old, ha
net income for 1921 of $4,000. The
tax is s4s. which ii per cent en- 81, 20
the amount eft their income less the eS
! er1Ptien Of $e566 fer married person
| | whose net income was less than SIS 90
1 plus $4ee for each dependent. The ia
on the same income fer the year 1876
was $s4
{ 1arried eeueie living Together wit
two children, 10 ana Il years cid. ha
l. net income for 1891 Of ss,6ee The
I normal tax is. 1928, which is per cen
: on 20, geo, the exemption Of 81 ,eee allow
e ed married persons whose net incon
e was In excess of $4,000, plus $500 fl
!. each dependent. On the same income (,
: 1920 the normal tax was s114.,
i single person living at home ar
d supporting an invalid mother and 81
+ ter II years old had a net income f
1921 Of $4,000. His tax is S. He
: allowed the $2,500 individual exemptit
e granted the head of a family whose n
d income was less than $4,000. plus 81
]. for each dependent. Ut should be not
=. that the $406 additional exemptit
= for dependents does not apply to hu
"a band or wife. even though either OF
d has become a total burden upon t
e other.) A single man lives with al
d supports mother 80 years old and ty
/ sisters 10 and 81 years old. He is
lowed an exer1ntion as head of a far
u lily (s2,5oa or $4,000, depending up,
1t whether his net inceme was S. 900
l. less or In excess Of $4,000 but not t
Is $500 exemption fer dependents, since /
l. | mother and sisters are neither under
or years Of age. nor mentally nor physic;
ID ly fncapacitated.
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