, 1924-06-26
PROVISIONS OF
NEW TAX LAWS
GO INTO EFFECT

revenue act of 1924 was begun i'm
mediately upon the passage of the
new act. New regulations relating
to the income, estate, excise, special
stamp and other taxes provided for
are being prepared and will be is
sued at the earliest practicable mo-
Enent.
OF immediate interest to taXpay-
-ers is the provision for a 25 per cent
reduction on the income tax of in
d~ividuals for the year 1928. This
25 per cent reduction is not applic-
able to corporations. Many indivi-
dual taxpayers, anticipating the re-
duction, paid at the time of filing
their returns, on or before March
IS, 1924. only three fourths of the
amount reported on their returns.
These taxpayers have noting further
to pay this year, unless additional
tax is disclosed in the audit of their
returns.
If o~ne-fourth of the tax was paid
on or before March Is, payment of
one-half of a similar amount salts
fed the June Is requirement. The
tax remaining unpaid after June 10,
may be paid in equal installments
on or before September Is and De-
cember Is respectively.
Taxpayers paying on the INSTALL
ment plan, desiring, now that the
25 per cent reduction is an accom-
plished fact, to pay the remainder
of the tax in full, may of curse do
so, the advantage being to the Gov
as well as themselves in
the elimination of bookkeeping.
Taxpayers who paid in full the
amount of tax shown on their re
turns will receive a refund of rs
per cent without requirement of fill
ing a claim.
Returns under the 1924 act are
required of every single person
whose net income for 1924 was
81 900 or more or whose gross in
come was $4,000 or more and of
every married person whose net in
come was $4,000 or more or whose
gross income was $4,000 or more.
Under the 1921 act returns were re-
CURED of married persons whose net
income was $4,000 or more. The
1924 act provides that If a married
couple has an aggregate net income
of $500 or an aggregate gross In
come of $1,000 each shall make a
return, or the income of ach shall
be included in a single joint return,
in which case the a shall be CON-
puted on the aggregate net income.
Married persons not living together,
such as Divorces or persons separ-
ated by mutual consent, are classed
as single persons, as are widows and
widowers.
There is no change in the exemp-
ton for single persons. which Is Sl,-
900. Married persons, living to-
gether, and heads of families are
allowed an exemption of $4,000, re-
CARELESS OF the amount of net in
come. Under the 1921 act h ex-
emption for married persons and
heads of families was $500 II h
net income was $1,000 or less and
$4,000 II the net income exceeded
5000. No change is made in the
provision allowing a taxpayer. In ad-
dition to his personal exemption. a
credit of $500 for each dependent II
such dependent is under Is years
of age or incapable of self support
because mentally or physically de-
fective. This $500 credit is not al
lowed for the husband or wife OF a
taxpayer. though one may be-totally
dependent upon the other.
Formerly a taxpayers status on
the last day of the taxable year de-
termined the mount OF his exemp-
tons. II. the return having been
made on a calendar year basis. he
was married on December 81 he was
allowed the exemption granted a
married person for the full year
$500 or $4,000. according to the
amount OF net income). though the
ceremony may have been performed
on that day. A person who became
wido wor widower during the year
and was not remarked on December
81 was allowed only a $1,000 ex
emption granted a single person: II
during the year the head OF a fam
lily ceased the support In his nome
OF relatives. he was entitled only 10
the $1,000 exemption. an.
IN esta,us OF the taxpayer Is deter
mined by apportionment In aecord-
ance with the number OF months the
taxpayer was single. married. or the