The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1944-01-10
Your Federal Income Tax

411NVxx1N n ga
/ who are mentally afflicted and phys
ically crippled, but also persons who,
by reason OF old age or impaired
health, are incapable Of self-support.
The mental or physical defect need
not be of permanent nature.
Dependents may fit either or both
Of the definitions. However, 1t is
important to understand that II a
taxpayer only qualities as head
of family" because Of dependent
who also fits the definition for
credit for dependent" then the
taxpayer cannot receive a $3.50
credit for that one dependent. The
reason for this is that the $1,000
personal exemption given a head
Of family" already provides the
equivalent OF q credit for one de-
pendent. For example, suppose Mr..
Y, q widower, supports two children,
both under Is. He receives a 1900
personal exemption on account OF
one child and a $3.50 credit for the
other.
To illustrate some slightly dif-
ferent situations. suppose Mr.. X,
who is single, supports his As year
old mother and also his 10 year old
sister. In this case, Mr.. X is en-
titled to the 1900 person exemp-
ton on account Of his mother even
though his mother could not qualify
for credit for dependenD and also
a $3.50 credit for his sister. II this
example is changed 10 assume that
the sister was Is years old and in
good health, then Mr.. x would still
receive the $1,000 personal exemp-
ton but no $3.50 credit for a depend
ent.
Unlike the personal exemption,
the credit for dependents may not
be divided between two persons FL
ing separate returns, but must be
taken by the one contributing the
chief support. However, where two
or more persons support the same
dependents and each furnishes the
chief support to different depend
ent. each may take the credit for
the dependent furnished chief sup
port. If husband and wife con-
tribute exactly to the support Of a
dependent, as may be the case in
community property States, either
may take the credit.
The "cridt for dependents" is
figured differently on the two
forms both for regular income tax
and for victory tax.
On short Form l040A the credit
for dependents is stated at $685.
Actually, the credit is $3.50 but the
extra $35 is a device to save the tax
payer using this form the incon-
venience OF figuring such things as
earned income credit" and makes
possible the use Of the simplihed tax
table on that form. Also on this form
the dependent credit for victory tax.
which actually Is 2 percent Of the
gross amount of the victory tax. is
combined with another percentage
credit for single or married persons
and the total is deducted from the
percent victory tax rate, SO that
the taxpayer selecting a net victory
tax rate in the table (near the bot
tom OF the back page) can figure
his net victory tax in ore arith-
metical step. On this form you
should count as dependents only
those that you had on July /, 1913,
without regard TO the situation in
other parts Of the year.
On long Form 1040, the credit for
dependents for the regular income
tax is $3.50 and the taxpayer must
show in Schedule I on page 3 for
how many months OF 1943 the de-
pendents were supported. If the de-
pendents we're not supported for a
full year. only a proportionate
amount Of the $3.50 may be claimed.
For instance, for O child born on
July / there can be allowed ION this
form) only SITS. Also for a child
which became 10 years of age on
July ] there can be allowed only
SITS. In both cases, the children
were clibADAC 4OI S1CNit 4OA VI IAle
IL months and the credit Is figured
at 6/12 of the $3.50. For purposes
OF this prorating. only whole months
are counted. More than half OF q
month is figured as whole month;
half month or less should be dis
regarded.
On long Form 1040. the credit fol
dependents for victory tax is figured
at 2 percent of the amount of the
victory tax as shown in Schedule X
on page 4. In the case Of depend
ents claimed for less than a full year
the credit against victory tax must
be prorated in similar manner az
In the case Of the regular income
tax.
A credit for dependent is not al
lowable with respect to a minor
child serving In the armed forces
Of the United States, since he Is no,
supported by any taxpayer during
the period Of such service.