Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-02-28
By JAMES MARROW,

by JAMES MAkLOW,
Associated Press stan Writer.
There's no single answer to this
question of husbands and wives
when both have income: DO we
save by filing separate or joint tax
returns?" Try both ways before
deciding.
Remember:
l. Technically, a wife is not a de-
pendent
2. Combined incomes may save for
one couple by giving them full
benefit of exemptions, but cost an
other couple money by boosting
them into higher surtax bracket.
Here's what that means-you are
being hit by two kinds of taxes:
l. A fiat per cent normal tax
on all taxable incomes, large or
small.
2. A surtax which is 20 per cent
on all taxable income up to $4,000
and leaps by brackets to 81 per
cent on the highest incomes.
But everyone filing return gets:
!. A normal tax exemption of $500
from income before the normal tax
hits 1t.
2. A surtax exemption-to take
out of income before the surtax hits
it-of $500 for yourself, $500 for
each dependent, and $500 for your
wife is she has no income or. having
income, files jointly with you and
includes her income.
Difference Outlined.
Here's the difference between a
wife and a dependent.
You can claim as a dependent
and get $500 surtax exemption for
a closely related person who received
more than half his support from
you and whose income was less
than $500. You need not report his
income
But, as noted, you get $500
exemption for your wife only If she
had no income or If, having income
she files jointly with you and in
Guides her income.
If she had $500 or more income
she must file anyway, jointly or
separately.
If she had income of less than
$500 she does not have to file, but
If she doesn't file jointly with her
husband he gets no exemption fol
her.
(Some women with less than $500
| income will file separately to get
refund on taxes withheld from
them. If your wife wants to dc
this, work out separate and COM
bined returns to see whether you
lose or win on the deal0
Gets Both Exemptions.
If her income was over $500 and
she files separately, she gets her
own $500 normal tax exemption and
her own $500 surtax exemption. You
can't claim either in your return.
If her income was $500 or over
and she files jointly with you. you
each get a $500 surtax exemption
(total $1,000 and you each get a
$500 normal tax exemption (total
81 .o0o).
II her income was under $500 and
she files Jointly with you, you each
get $500 surtax exemption ttotal
81 ,000) but on the normal tax you
get your regular $500 exemption
while your wife gets an exemption
only for the amount Of her income
Example: Mr. Jones income was
81 900, his wife's, $3.50 Their normal
tax exemption is his regular $500,
plus her $3.50 income. If she made
$500 or over, she too would get a
full $500 exemption.
If their combined income was less
than 5000, husbands and wives
can file jointly on form Wa, the
withholding receipt. or the 1910 short
form or the 1040 long-form.
If their combined income was S.
600 or over but individually less
than 5000, they can make sep
arate returns on form W. or the
1040 short form or a joint return
on the 1040 long-form.
Each Allowed Deductions.
If they file separately on form
W. or the short-form, each is al
lowed a deduction of about 10 pei
cent figured right into the tax table
used with those forms.
If they file jointly on form W. OF
the 1040 short-form they are allowed
one deduction of about 10 per cent.
If they file separately on the 104O