Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1943-01-21
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Personal Exemption

credit against his net income which
varies with his domestic status
that is, whether he is (a) single
person, (b) married person living
with husband or wife, or (c) {
head of family. This credit il
known as personal exemption, ant
is shown on line 81 of the return
Form 1040. The amount of thc
personal exemption also varies de.
pending upon the period during
which the taxpayer occupied the
particular exemption status.
The personal exemption for g
single person is $500 for the year;
for a married person living with
husband or wife, $1,000; and for a
"head of family" $1,000. personal
exemption as head of family has
no effect on liability to file a re-
turn.) For Federal income tax
purposes, widows, widowers, divor-
Gees, and married persons sepa-
rated 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 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 adoption, whose right
to exercise family control and pro-
vide for those dependent individuals
is based upon some moral or legal
obligation" A single person, or a
married person not living with
husband or wife, may, therefore,
enjoy a head of family exemption
under certain conditions.
Taxpayers using a Simplified
Return (which is permitted if the
gross income for the year is $500
or less and derived solely from
earnings from employment and FOR
from dividends, interest and an
nuities) obtain personal exemption
based on their status as of July /
of the year. Thus, a taxpayer
and living with husband or
wife on July 1 is entitled to $1,000
personal exemption on Form
1040A; if he were a widower on
July 1, his exemption would be
$500, irrespective of the date on
which he became widower. The
amount Of the exemption is not
deductible from the income but is
reflected in the amount of the tax
shown in the table on the reverse
side of the form.
Taxpayers using return Form
1040 obtain personal exemption
with the number of
during which the particular
status held. Thus, for a person
who married on July 1, (who was
not head of family prior 10 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 a married
man, In this example it is
assumed that the wife has no in
come.
Married persons may, however,
file joint returns, even though one
has no income, and by filling a
joint return a couple married dur
ing the year may obtain an exemp-
ton amounting to the exemption
to which they would be entitled
for the period of married status,
plus the amount of their individual
exemptions prior to their marriage.
In the example given the total
exemption in a joint return would
be $1100 $3.50 for each spouse for
six months plus 5000 for six
months married status.)
If a husband and wife living
together both have income and file
separate returns on Form 1O40, the
personal exemption applicable to a
married person may be taken in
the return or either or divided be-
tween them in any way they may
agree, but the total personal
exemption taken in the two sepa-
rate returns may not exceed $1,000,
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