The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-01
INCOME TAX FACTS

Forms fer making returns of in
come for the year 1921 have been re-
vised and simplified, and contain in
structions which if carefully followed
will be of material aid to taxpayers in
the avoidance of errors.
Many of these errors are due to mis-
understanding of the exemption all
lowed head of family defined by
Treasury regulations as 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 or by adoption, OF whose
right to exercise family control and
provide for these dependents is based
upon some moral or legal obligation I"
The exemptions allowed a head Of a
family under the revenue act of 1921
are the same as granted a married
person-s2, 500 where the net income
for 1921 was So, 900 or less and 81, 900
where the net income exceeded $4,000.
Circumstances surrounding each indf-
vidual case determine largely whether
person is entitled to such exemption.
A single person-the term including
widowers, widows, and persons not
living with wife or husbands the
head OF a family if he is the sole sup
port of one or more relatives living in
the same house with him, and IL he
exercises control of household affairs.
A married person living with husband
or wife, in addition to the exemptions
allowed such persons, can not claim
an exemption as the head of a family,
irrespective of the support Of others
in the household.
Exemptions Not For All
Whether a person who does not con-
tinuously live in the same house with
dependent relatives is entitled to the
exemptions depend upon the cllarac-
ter Of the separation. If a parent is
away on business part of the year
or child or other dependent is away
on a visit, the common home being
maintained, the exemptions may be
claimed. If parent is compelled to
maintain his dependent children with
relatives or in a boarding house, the
exemption may still apply. If, how
ever, the dependent continuously and
without necessity makes his home
elsewhere than with his benefactor,
the later is not the head OF a family,
irrespective of the question of support
A taxpayer who is not the head Of
a family may still be allowed the ex-
emption of $500 for each person de-
pendent upon him for chief support,
If such person is under is years of age
or incapable of self-support because
mentally or physically detective.
Tax EXAMPLES
Following are concrete examples OF
taxes due under the revenue act of
1921 and circumstances governing ex-
emptions allowed head of a family
and for dependents:
A married couple living together
with two children, 10 and IL years
Old had net income for 1921 of s4,-
500 Their tax is s4S, which is 4 per
cent on $1,000. the amount of their net
income less the exemption of $500
was les than $1,000, plus $500 for each
dependent. The tax on the same in
come for the year 1920 was ss4
a married couple Ewing together
with two children, 10 and Il years old
had a net income for 1921 Of $4,000.
Their normal tax is SIPS, which is 4
per cent on $4,000. the amount of their
net income less the exemption OF So
600 allowed married persons whose
net income was in excess of s., 900. plus
s400 for each dependent On the same
income for 1920 the normal tax was
S144.
\ single person living at home and
supporting an invalid mother and sis
tee II years old had net income for
1927 OF Ss.50o His tax ia So. He is
allowed the $500 individual exsmp-
ton granted the head OF 3 family
whose net income waa less than SIS
600. Plus $500 Tor each dependent 1T
should be noted that the $500 add
tional exemption for dependents does
not apply 70 husband or wife. even Tho
either ore has become total burden
upon the otaer) 4 single man lives
with and supports a mother 50 years
>ld and two sisters ~ and = years