The Wrangell sentinel., 1943-01-29
More On New Income
 Tax Laws
PERSONAL EXEMPTION


 credit against his net income which varies with his domestic status. that Is. whether he is ta1 single per son. tbl a married person living with husband or wife. or Gel a head of family. This credit is known as personal exemption, and is shown oil line 2I of the return Form To- 40. The amount Of the personal eX- emption also varies depending upon the period during which the tax prayer. occupied the particular eN- emption status.
 The personal exemption for a sim gle person is S500 for the year for a married person living with hus- band or wife. S1200: and for al head Of family $1200. Personal. exemption as head of a family has no effect on liability to file a re- turn.) For Federal income tax pur- poses, widows widowers. divoreees, and married persons separated by mutual consent. as well as persons who have never been married. are elassed as single persons
 4 head of family is defined as an individual who actually sup ports and maintains in one house. hold one or more individuals who are closely connected with him by blood relationship. relationship by marriage or by adoption and whose right to exercise family control and provide for those dependent indiy- iduals is based upon some moral or legal obligation A single person or a married person not living with husband or wife. may therefore. en- joy a head of family exemption un- der certain conditions.
 Taxpayers using a simplified Re turn (which is permitted if the gross income for the year is S3000 or less and derived solely from earnings from employment and or from diYi-I dends. interest and annuities) ob- tain 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 1 is entitled to S1200 personal exemption on Form 1040A; if heI were a widower on July l, his eX-. caption would be $500, irrespective. ef the date on which he became widower. The amount of the exemp- ton is not deductible from the in- come but is reflected in the amount of tax shown in the table on the re-. .frse side of the form.
 Taxpayers using return Form 1040l e9tain personal exemption propor- donate with the number of months during which the particular status is held Thus. for a person who mar ried on July l. lwho was not al head Of family prior to his mar-I riage) the personal exemption would be SS50 ($250 for the six months as a single man. plus $500 for theI six months as a married man. Inl this example it is assumed that theI wife has no income.
 Married persons may, however, file joint returns. even though oneI has no income. and by filing a joint return a couple married during theI year may obtain all exemption amounting to the exemption toI which they would De 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 exemp-I ton in a joint return would bel $110O l$250 for each spouse for, six months plus $500 for six months married status.) ,I
 If a husband and wife living to- gether both have Income and file separate returns on Form 1O40, 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 s1200