Evening star., 1933-02-01
BY DAVID BURNET,
Commissioner OF Internal Revenue.

Commissioner OF Internal Revenue.
After having arrived at the amount
of ne: income to be reported, individual
taxpayers are entitled to certain exemp-
tionS as follows:
A personal exemption of 81 900 for
single persons and s2,500 for married
persons living together and heads of
families, is allowed Where separate
returns are filed by husband and wife,
the exemption Of $2500 may be taken
them. In addition. a taxpayer may
claim credit of S4O0 for each depend
ent, that is, for each person under 18
years of age or Incapable OF self-sup-
port because mentally or physically de-
fective.
The term mentally or physically de-
fective" includes persons in i'll health
and the aged. If husband and wife
both contribute to the support of a de-
pendent, the S400 credit must be taken
by the one contributing the chief sup
por. and may not be divided between
them.
Neither relationship to nor residence
with the taxpayer is essential to claim
of s400 credit for a dependent The
taxpayer and the dependent may be
1CoAoeAeo Va OlACACllI CltlcS VI UIlIS-
lated
Head Of Family.
A taxpayer, though single. who sup
ports in one household one or more
relatives over whom he exercises family
control, is the head of family and en-
titled to the same exemption allowed
a married person (S2.500. Also he may
claim S400 credit for each dependent.
A taxpayer who supports in his home
minor children over whom he exercises
family control is classified as the head
Of a family, even though the children
may have an income of their own sufh-
cient for their maintenance. If he does
not support them. even though he does
exercise family control he cannot be
classified as the head of family.
It should be remembered that a
single person, whether or not the head
of a family. is required to file return
if his or her net income for 1892 was
81, 900 or more, regardless of whether
the income is nontaxable by reason of
the $4,000 exemption.
To avoid error, taxpayers should
ncte carefully the provisions of the
revenue act which relates to the per-
sonal exemption and credit for de-
pendents where a change of status oc-
ours during the taxable year. If the
status of taxpayer changes during the
year, the personal exemption allowed
to single person. head of family,
or married person living with hus-
band or wife, and the credit for de-
pendents must be apportioned accord
ing to the number of months during
which the taxpayer occupied each
status.
Part Disregarded.
For the purpose of such apporticn-
ment. a fractional part of month is
disregarded. unless it amounts to more
than half month, in which case 1t is
considered month. A taxpayer, for
example, who on October IA, ceased to
be the head of a family-the support in
one household of one or more relatives,
having been discontinued-iS entitled
to an exemption of $2,125, which is
9-12 of $2,500, plus 3-12 Of $1,000.
Husband and wife living together may
each make separate return of the in
come of each. or their income may be
included in single joint return. If
separate returns are filed, they cannot
report income which belongs to the
other, but must report only income
which actually belongs to each. If a
Joint return Is filed, such return Is
treated as taxable unit, and the in
come disclosed is subject to both nor
NAL tax and surtax. Husband and
wife may elect each year whether to
flle joint returns or separate returns.