St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1962-01-12
Personal Exemptions
And Credits

tee.)
You are entitled to a $500 deduc-
ton on your Federal income tax re-
turn for each exemption. If you
are in an income bracket where
you will have to pay a tax, this
will result in a minimum reduction
of your tax of S12O.
The basic Federal exemptions
are those for the taxpayer and his
spouse. You and your spouse are
entitled to one exemption each,
plus an additional exemption of
5000 for each of you who is IS or
over by the end of the year or who
is blind. The personal exemptions
can be taken only once, however,
so that you cannot increase the
total number Of exemptions by fill
ing separate Minnesota or Federal
returns.
All deductions for exemptions
are based upon the happening of
an event during the taxable year.
Thus, subject to other rules deter
mining dependency, exemptions can
be claimed for children who are
born at any time during the tax
able year, for parents who live
only a part of the taxable year, and
for spouses you acquire by marri-
age or lose by death during a tax
able year.
In addition to exemptions for
you and your spouse, you may
claim a 5000 exemption for a rela-
tive who receives less than $500
gross income during a taxable year
and who receives more than one
half of his support from you dur
ing the taxable year. Non-relatives
can also constitute dependents
which will entitle you to an exemp-
ton where they satisfy the above
described rules and also live in
your home.
A child who is under 10 or who
is a student can be a dependent
for whom you will be entitled to
an exemption, whether or not he
earns in excess og $500 gross in
come, where you provide more than
one-half of the actual cost Of sup
porting the child. Under this pro-
vision, both you and the child are
entitled to a $50 exemption for the
child, but this $500 exemption can
not be claimed by you where the
child Is married and files a joint
return with his or her spouse.
You may be able TO claim an ex-
emption under Federal law for
person who otherwise qualities as
a dependent even though you con-
tributed less than one-half Of his
support. This situation occurs
where several persons contribute
to the support of. the dependent,
and where the group does contri-
butte more than one-half Of the
support of the individual. Under
this rule, you must agree as a
group which person shall be en-
titled to the exemption and file
Form 212O to formally bind the
group to this decision.
In computing your state income
tax you will be allowed credits
against your tax rather than ded-
uctions from your income. In gen
eral, state credits are allowed on
the same basis as the Federal ex-
emptions. In general credits
are allowed on the same basis as
the Federal exemptions. One sig
nificant difference is that the state
credit must be apportioned by you,
based upon the period during which
the right to credit exists. For ex-
ample, you would be entitled to
only one-half the total credit where
a child is born to you on July list.
Appordonment must also be made
where marital status changes dur
ing the taxable year, where you
become a resident Of the state dur
ing the year or where you are
claiming a credit for a dependent
who died during the year. However,
the over 65 credit and the blindness