The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1925-02-13
YOUR INCOME TAX.

III
your home one or more persons
closely related to you ana oven
whom YOU exercise FAMILY controi'
Won are the head of family anu
entitled under revenue act OF IVA
to the same personal exemption al
loweu a married. person., Sz,ooo. In
addition, a taxpayer is entitled to a
credit of S40O for each person de-
pendant upon him for chief support,
II such person is either unoer 10
wears of age or incapable of SELL
support because mentally or ply SIC
ally defective. Such dependent neea
not be a member of the taxpayer
For example, an unmar-
ried SON who supports IN his nome
an aged mother is entitled to an ex-
emptlon of $4,000 plus the SAW
creu.t for a dependent, a total Oh
$4,000. If from choice the mother
lived in another city, the son al
though her chief support, would be
entitled only to the $1,000 exemp-
ton, plus the $500 credit. The
mother not living with him, he Is
not considered the head of fam
lily.
An exemption as the head of a
family can be claimed by only one
member of a household.
The $400 credit does not apply
to the wife or husband of taxpay-
err, although one may be totally de-
pendent upon the other.
The revenue act of 1924 provides
that the status of a taxpayer rel
ative to the amount of his personal
shall be determined by
in accordance with
the number of months the taxpayer
was single, married or the head Of
a family. Under the preceding act
the amount of the exemption to
which the taxpayer was entitled was
determined by his status as single
person, married person, or the
head of family on the last day of
the taxable year, December 81, II
the return was made on the cal
endar year basis, as most are.
For example, taxpayer married
on September 80, 1924, would be
entitled to an exemption of $1,275.
For the First nine months he is
classified as a single man emitting
him to an exemption of $750-
three-fourths of the $1,000 exemp-
ton allowed a single person-and
for the last three months he is en-
titled to an exemption of $625-
one-fourth of the $4,000 exemption
allowed married person.
If on June 80, taxpayer ceased
being the head of a family-the
support in one household of a rel
alive or relatives being discontinued
-he is allowed an exemption of ST.
750-one half of the exemption of
81 900 granted single person plus
one-half of the exemption of $4,000
granted the head of a family. With
regard to the $400 credit for de-
pendent, the taxpayers status is de-
termined as of the last day of the
taxable year. If, during the year,
his support of such dependent
ceased, he is not entitled to this
credit.
In making out his income tax for
the year 1924 the business man.. pro-
fessional man, and farmer is re-
quired to use Form 1040, regardless
of whether his net income was or
was not in excess of $4,000. The
smaller form 1040A is used for re-
porting income of $4,000 or less de-
rived chiefly from salaries or wages.
Forms have been sent to persons
who last year filed returns of in
come. Failure to receive a form,
however, does not relieve the tax
payer from his obligation to file a
return and pay the tax within the
time prescribed, on or before March
Is, 1925. Copies of the forms may
be obtained from offices of collect
ors of internal revenue and branch
Offices. The tax may be paid in
full at the time of filing return, or
in four equal installments, due on
or before March Is, June Is, Sept
ember Is and December Is.
The taxpayer must include in his
income-tax return for the year 1924
all items of gross income specified
by law. In the case of a storekeep-
err. gross income usually consists of
gross profits on sales, together with
income from other sources The re-
turn must show the gross sales, pur-
chases, and cost Of goods sold. The
Professional man, lawyer, doctor, dem
list, must include all fees and other