Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1943-01-21
Federal Income Tax
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) a married person living with
husband or wife, or (c) head OF
family. This credit is known as per-
sonal exemption, and is shown on
line 81 of the return Form 1040. The
amount of the personal exemption
also varies depending upon the per-
iod during which the taxpayer occu-
pied the particular exemption status.
The personal exemption for a single
person is $500 for the year; for a
married person living with husband
or wife, $1,000; and for "head OF
family" $1,000. personal exemp-
ton as head of family has no effect
on liability to file return). For
Federal income tax purposes, widows,
widowers, divorces and married per-
sons separated by mutual consent, as
well as persons who have never been
married, are classed as single per-
sons.
A head of family is defined as "an
individual who actually supports and
maintains in one household one or
more individuals who are closely
connected with him by blood relation
ship, relationship by marriage or by
adoption, and whose right to eXer-
else family control and provide for
those dependent individuals is based
upon some moral or legal obligation y
A single person, or married person
not living with husband or wife, may
therefore, enjoy head of family ex-
emption 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 earnings
from employment and Tor from divi-
dends, interest and annuities) obtain
personal exemption based on their
status as of July of the year Thus
a taxpayer married and living with
husband or wife on July /, is entitled
to $1,000 personal exemption on Form
1040A; if he were widoWer on July
/, his exemption would be $500, ir-
respective of the date on which he
became a widoWer 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 104(
obtain personal exemptions proper
tionate with the number of months
during which the particular status
is held. Thus, for person who
married July l, (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 a single
man, plus $500 for the six months as
married MANI. In this example i
is assumed that the wife has no in
come.
Married persons may, however, file
joint returns, even though one ha:
no income, and by filing joint re.
turn a couple married during the yeal
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 in.
dividual exemptions prior to theil
marriage. In the example given the
total exemption in a joint return
would be $11OO ($250 for each spouse
for six months plus $500 for 81,
months married status).
If a husband and wife living to.
| gether both have income and file
separate returns on Form 1040, the
personal exemption applicable to {
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 return!
may not exceed $1,000.
CARD OF THANKS