Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-17
100000 Will File
Returns on Incomes
BY HARDEN COLFAX.

The season of fret and flime Is upon
us, for some 100000 individuals will
file returns of their last years incomes
with Uncle Sans Internal Revenue
collectors within the next four weeks.
In addition, more than 100000 cor
porations' returns will be recorded.
Individual taxpayers really have lit
| tie to worry about this year that did
not perplex them last year, for the 1928
revenue act made no changes In rates
| applicable to individual incomes, or in
| personal exemptions, or in credits for
dependents. It did, however. increase
from $4,000 to $4,000 the maximum
amount of income to which the rs per
cent credit for earned income may be
| applied, a matter which affects some
| 125,O00 taxpayers whose incomes are
in excess Of $4,000.
There are major changes. however,
| in the law applicable to corporation in
| come taxes. The rate Is IL per cent
of net income under the new act, COM
pared to 1914 per cent charged last
| year and 10 per cent two years ago.
In addition, the credit allowed a do
nestle corporation with q net income
| Of $4,000 or less is now $4,000 instead
| Of $4,000.
The corporation tax has been yield
| ing about 5000, 900 900 more revenue
| than the individual income tax. What
will result from the change In rates
remains to be seen.
| OF course, not all Of those who are
preparing to file their individual re-
| turns for incomes during 1928 will pay
any tax whatsoever. Changes in the
| revenue act In recent years have re-
4
who must file returns at all, the present
law requiring returns from every un-
| married person whose net income last
| year was 81 500 or more and every
+, married head of the family whose net
income was $500, and from all, single
or married, whose gross income was as
much as 5000 without regard to the
net income. Five years ago 1885, 900
individuals filed returns. Tax reduc-
| ton lowered this total to 4.l63, 900 last
year. and of these only 2.470000 were
subject to tax. exemptions and deduc-
tons relieving the remainder from any
payments to Uncle Sam. Forty per cent
Of the individuAl> returns filed usually
last year. 835 per cent showed in
comes of $4,000 or more, and this pro-
portion accounted for As per cent of
the net incomes and for SO per cent of
the tax paid.
Because of longer experience with the
individual returns at fixed rate, in
structionS to taxpayers this year are
more clear.
The head of family, although not
married, is entitled to the same exemp-
ton as a married person, $500. and
to $400 for each person dependent
chiefly upon him If under 10 years
or incapable of self-support.
Persons married during the taxable
| year may acclaim credit for a proper
ton OF the year, but credits for de-
| pendentS depend upon the status on
December 81. Thus, a man married
July Is entitled to half the eyemp-
ton OF single person and half of
the higher exemption of a married per-
son, but II he supported a dependent
from January to December 80, and
then ceased to do so for any reason,
he Is not entitled to any part of the
| $500 credit for this former dependent.
No credit Is allowed for doctors
bills, household servants or other SINH
lar expenses but IL q passenger auto
mobile Is used more than so per cent of
the time in business or profession. the
wages OF chauffeur may be claimed
proportionately, and proportionate
credits for gas, oil. garage rent. re-
pairs and depreciation may be claimed
whether chauffeur Is employed or not
No deduction Is allowed for the pur-
chase price Of q new car. but II It be
bought on deferred payments the inter-
est ms be claimed as credit, as may