Show YOUR INCOME TAX TAN No The exemptions u under der th the revenue act of 1924 and 10 lO for fol single per per- persons persons per persons sons and 2500 for parried named persons 1 living n together and md 1 ads of families In addition a is allowed I for each person de depe dent ident lent upon and receiving his chiefs chief 5 si port from the taxpayer er if such per on is under 18 18 years of age ape or Lie hIe of sup self port because mental or 01 physically defective The normal tax rat under the rev rev- revenue rev revenue act of 1 I is 2 er cr cent on the first of or net inc ne re le in excess of the personal ns credit for dependents etc 4 pe pc cent on the next and 6 G per enton the bal bal- balance balance bal balance ance Under the pre eding act the normal tax rate was I 4 per cent on the first of nc ere income above the exemptions and credits cr its and 8 per percent percent percent cent on the remaining net income The revenue act of 1924 contains a special provision for reduced educed taxes which did not appear it I ill previous laws An All net income up to is consid consid- considered considered considered ered earned income On this amount the taxpayer i entitled to a credit of 25 per cent of 1000 the amount of o othe the tax For example a er er single and without dependents may muy have re- re received received re received in 1924 a salar salary of 2000 and from a real estate tram transaction a profit of His total nit n net t income income was Without the b benefit of the 25 per cent reduction his tax would be 80 His actual tax is 60 From his pet income of h he is allowed a personal exemption of 1000 the tax of If 2 per cent on the fir firs is 80 fourth one fourth of which o 0 01 20 20 may be deducted I For the purpose of this credit in no case is the earned net in- in income income in income come considered to be n excess of A taxpayer er i ay have re- re received received re received for the year a net income from salar salary of but the 25 per cent rent credit can be applied applied to only half one half of this amount |