The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1943-02-15

This Is No. IL Of q series of
IA articles prepared by . tax
expert to aid readers Of this
newspaper in preparing Fed
eral income tax returns. Clip
and save the articles for q
com plete reference when
making out your tax form.
BY NEA Service
Having arrived at your net
income on line 10 of u. S. In.
dividual Income Tax Return
form 1040, you still are entitled
to certain exemptions before
figuring how much tax, if any
you must pay.
Every individual is allowed
certain personal exemptions, to
be entered on line 20. If you are
single, you are entitled to $500
exemption. Married persons who
do not live with their spouses
are considered single.
For a married couple living
together throughout the entire
year, the total personal exemp-
ton is $1,000. If you and your
wife file separate returns, you
may split this $1,000 any way
you like. (The advantages and
disadvantages of filing separate
returns will be discussed in q
later article.)
HEAD OF FAMILY
If you did not reside with
your husband or wife through.
out the entire year, the answer
to the question of whether OF
not you were living together de.
Ponds upon the character of the
separation. II your wife is only
temporarily away on visit OF
you are away on business, anc
you maintain a joint home, yol
are entitled to the additional
exemption. The same is true
where your husband or wife j.
unavoidably away at a hospita
or asylum becaus, of sickness.
If you are single, but head o.
a family, you get the same per
sonal exemption as a married
couple $1,000. In order t.
qualify as the head of a family
you must actually support anc
live in the home with one OIL
more individuals who are close
ly related to you by blood OF
m arr age relationship or by
adoption. You must also hav,
the right to exercise family con
troll, based on legal or moral OBJ
legations, over such individuals
In addition to your persona
exemption, entered on line 20 O
form 1040, you are entitled t.
credit for dependents. A Deepen
dent must be under ID years O
age or incapable of supportin,
himself because he is mental,
or physically defective.
CHANGING STATUS
You are entitled to a credit O
$3.50 for each person (other thar
husband Or wife) dependent OF
you and receiving chief supper
from you. If you are head of /;
family, however, you are en-
titled to a credit of $3.50 fol
each dependent minus one -
since for one of your dependent
you are receiving a larger per
sonal exemption as head of fam
lily than you would as a singl,
person.
If your status changes durini
the taxable year. you receive
personal exemption and credi
for dependents proportionate I,
the number of months you wer'
in each status. More than hal
month is considered q full
month and less than half is dis
regarded. For instance, If 20,
have child born in the secont
half of March, you are entitled
to nine-twelfths of $3.50, since
the child was a dependent TO-
nine of the years twelv'
months.
The personal exemption Is ap
portioned in q like manner &C
cording to the number of month";
in which you lived togethel
where you and your husband Of
wife did not live togeth el
throughout the entire year. Tn,
personal exemption thus appor
toned is also Gas pointed out il
the first Of these articles) tn,
basis for determining whether
or not a return must be filed. I,
your gross income exceeds thu
personal exemption, return
must be filed.
After adding lines 81 and 20
you subtract their total from
your net income Cline 20) anc
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