Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1922-02-06
Forms Used This Year Have
Been Revised and Sim
p!ified to Avoid
Confusion.
WHO ARE EXEMPTED
A few tax Examples Given
as Concrete Illustra-
-tiOns.
Tollowin. is article No. of the
series furnished by the internal
revenue Office at Dubuque.

St!tS III illSHt'l ~ NV lhtNi'ti
revenue Office at Dubuque.
Forms for making returns of income
for The wear 1921 have been revised
anG simplilicd.s and contain inStruc-
tiulS which if carefully followed will
be Of material aid to taxpayers III the
avoidance of errors.
Many Of these errors are due to mis-
understanding Of the exemption al
lowed head of Il family, defined by
treasury regulations as a person
who actually supports and maintains
in one household one or more indi
yidimS who are closely connected with
him Icy blood relationship. relationship
~ marriage or by adoption. or whose
Ii2h to exercise family control and
provide Tor these dependents is based
upuA some moral OF legal Obligation.
IL" exemptions allowed Il head OF
family under the revenue act OF 1871
are HE same as granted married
person $1,000 where the net income
for 1927 was $1,000 OF less and $1,000
whore the net income exceeded $4,000.
Circumstances surrounding each indi-
vidual case determine largely whether
Il person is entitled TO such exemption.
\ single person he term including
widowcrs. widows. and persons not
living with wife or husband-is the
heal Of Il family if he is the sole sup
port Of one or more relatives living i'll
the same house with him. and if he
exercises control of household affairs.
\ married person living with husband
or Wife in addition to the exemptions
allowed such persons. can not claim
All cxemntion as the head of Il family,
irrt pcctive of the support OF others
in the household.
Exemptions Net For All.
Il person who does not con-
tihu.,lSly live in the same house with
dependent relatives is entitled to the
exemptions depends upon the char
actcr OF the separation. If Il parent
is AWAY on business part of the year
or child or other dependent IS away
on y visit. the common home being
maintained, the exemptions may ne
claimed. If parent is compelled TO
maintain his dependent children with
III in,
exemption may still apply. II. now
ever. the dependent continuously ana
without necessity makes his home else
where than with his bcne1actor the
latter is not the head Of Il family, IRE
spectivc OF the question of support
\ taxpayer who is not the heau
Of a family may still be allowed the
eycr,ption of $500 for each person de-
pendent upon him for chief support.
if such person is under IL years "a
age or incapable of self support ne
ca,,s.. mentally or physically defective.
Tax Examples.
Following are concrete examples VI
fake, due under the revenue act ot l:'-l
ana circumstances governing eNeiilp-
,ions allowed Il head Of a family ana
for dependents:
!. married couple living together
ril., two children. 10 and l. years
Old had il net income Tor i'-i u
S!-Ao, Their tax is SIS. when j. +
p,r cent on loo. the amount OF thelf
mot income less the exemption Oh
s., 800 for married persons whose iie'
irrnrn Was less than $1,000. pms
$500 for each dependent. The tax Oh
,l.r .ome income for thc year l'-o
w.,- so.
married couple living t"Se'her
v.fta two children. 10 and IL years
old had Il net income Tor 80 VI
ST .Gn0. Their normal tax Is $40
with is ! per cent on $500. the
,r,,,,u, Of their net INCOME less the
cy,.aption of $1,000 allowed MARIE"
ucr.nus whose net income was III eA-
,.e.: Of $1,000. plus $500 for each de-
Incident. ON the same income ior io-V
tho normal tax was Sll4
single person living III nome anu
xu,,.ortinr an invalid mot her ana SIS
for Il wears old had u net income ioi
1871 of 5000. His tax i -. ne i
,l-nvpd the $500 individual eNeihp-
liam Granted the head of Il iahiiiS
r.b...r net income was less than N''.V'''
III, 800 for each dependent. w
shclId bc noted that the Si"o ao"i-
,;orul exemption for dependents "o'9
,n, .,unIy TO husband or VIE: even
,h,r.h either one has become Il teiai
b,r.lau mon the othcrl y Sll"i' man
ry,-s with and supports ho'llcr :"
vr. * old and two sisters !? ana =
yn;rs old. He iS allowed an tNehip-
,,o,. SIS head Of a family 'N-''"" OF
5000 depending upon whether his hei
ir.altp was 5000 ar less or III excess
nj ~ .Dto) but not the SiOO exemption