The Western news. [volume] (Libby, Mont.) 1933-current, 1946-03-21
TAXABLE STATUS OF INCOME
OF MEMBERS OF ARMED FORCES

OF MEIMDEGSo Ut ARMED EOhCES
Members Of the Armed Forces are
granted six months from date of
discharge in which to file their
Montana State Income Tax Returns
for all back years under an Act
adopted by the l943 Legislature
! If, however, they have substantial
income from independent sources
no extension is granted for any per
iod. No penalty or interest shall
accrue on the nonpayment of tax
for the period of deferment
The personal exemption of a single
man is 100000 1t his income is
less than 100000 no return need
be filed The personal exemption
for husband and wife living to-
gether is S200000 If husband and
wife file separate returns the per
sonal exemption credit is 100000
each.
If a soldier marries during the
year and his wife receives no in
come, the 100000 personal exemp-
ton credit must be prorated ($83. 80 !
for each month prior to marriage
and Sl6667 for each month sub |
sequent to marriage) If the wife |
received income it should be in
cluded in the husbands return I'M
less she filed separately. II a Mon
tana soldier marrieS q nonresident |
wife, who receives separate income,
the personal exemption credit of
the service man will be that of a
single man (Sl00000). unless he in
cMdes the income of his nonresi-
dent wife in his return.
Conversely, if a nonresident SER
vice man marries a Montana wife
who receives income from sources
in Montana, she must file as a single
person Claiming 100000 personal
aXempton), unless she includes the
income of her nonresident huband,
n which case the personal exempt
on will be 100000.
This means that inductees from /
another State would not be required :
o file returns in Montana even !
hough they may have been sta :
Toned in Montana for the entire
ear unless it is in connection with {
joint return filed with the Mon t
ana wife who receives income from r
4ontana- sources
Women in the military service are {
ound by the same rules as the Y
1en. Service men never gain or Il
Ose their residential status by join v
lg the armed forces If they were b
1ducted or enlisted from Montana
1eir income is subject to the Mon
ana tax, and it is not subject to II
ne income tax of any other state
+ country
Voluntary allotments made by a l;
member" are includible in gross N
lcome. They are not taxable to "
is assigneeS The monthly fam e
y allowance to a members family II
taxable to such member only to r
lie extent of the amount charged
gainst his pay. The part contri- Ct
lted by the Government is in the eI
allure of a gift and none of the
'tal allowance is taxable to the U
apendents. NJ
The original Montana State In. n
me Tax Law adopted in 1888 Sc
provision which eX- &C
npted from taxation the income
persons in the military or naval W
rces. This provision was repealed w
, the 1889 Legislature
AS the law now stands, all mill We
ry pay is taxable; including mill Pl
ry base pay, longevity pay, over -
as pay, flight pay, divers pay,
ustering out pay special duty ~
y, also wages received during ac-
,e service by serViceman from
former employer. or any other
oney that is received in the form
extra pay. Money received for
avel or subsistence and quarters
uniforms is not taxable because
has no relation to compensation.
State Board of Equalization.