The midland journal. (Rising Sun, Md.) 1885-1947, 1943-02-05
YOUR FEDERAL INCOME TAX
No A
Personal Exemption

Every individual is allowed a
credit against his net income which
varies with his domestic status,
that is, whether he Is (a) a single
person, (b) married person liv-
ing with husband or wife, or (c)
a head of family. This credit is
known as personal exemption, and
is shown on line 21 of the re-
turn Form 104O. The amount of the
personal exemption also varies de-
pending upon the period during
which the taxpayer occupied the
particular exemption status.
The personal exemtion for a sin
gle person is $500 for the year; for
married person living with hus-
band or wife, $1,000; and for a
head of family, $1,000. person
al exemption as head of a family
has no effect on liability to file a
retnrn). For Federal income tax
purposes, widows, widowers, di-
vorcees, and married persons sep
arated by mutual consent as we'll as
persons who have never been mar
ried, are classified as single per-
sons.
A head of family is defined as IAN
individual who actually supports
maintains in one household one or
more individuals who are closely
connected with him by blood rela-
tionsip, relationship by marriage or
by adoption, and whose right to ex-
ercise family control and provide for
these depenent individuals is based
upon some moral or legal obliga-
ton" A single person, or a mar
ried person not living with hus-
band or wife, may, therefore, enjoy
a head of family exemption under
certain conditions.
Taxpayers using a Simplified Re-
turn (Which is permitted If the
gross income for the year is $4,000
or less and derived solely from earn
ings from employment andIo from
dividends, interest, and annuities)
obtain personal exemption based on
their status as of July l of the
year. Thus, a taxpayer married and
living with husband or wife on July
is entitled to $1,000 personal ex-
emption on Form 1040-A; if he were
a widower on July 1, his exemption
would be $500, irrespective of the
date on which he became a widow
err. The amount of the exemption is
not deductible from the income but
is reflected in the amount of tax
shown in the table on the reverse
side of the form.
Taxpayers using return Form
1910 obtain personal exemption pro-
portionate with the number of
months during which the particular
status is held. Thus, for a person
who married on July (who was
not a head of family prior to his
marriage,) the personal exemption
would be $3.50 $3.50 for the six
months as single man, plus 5000
for the six months as a married
man). In this example it is assum-
ed that the wife has no income.
Married persons may, however,
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has no income, and by filing joint
return a couple married during the
year may obtain an exemption
amounting to the exemption to
which they would be entitled for
the period of married status, plus
the amount of their individual ex-
emptions prior to their marriage.
In the example given the total ex-
emption in a joint return would be
$1,100 ($250 for each spouse for
six months plus $500 for six months
married status.)
If a husband and wife living to-
gether both have income and file
separate returns on Form 1910, the
personal exemption applicable to a
married person may be taken in the
return of either or divided between
them in any way as they may agree,
but the total personal exemption
taken in the two separate returns
may not exceed $1,000.
HOTTSEHOTn HTNTC