Show Lower Exemptions Higher Rate Feature New Income Tax Editors Editor note This note TM Is the fhe th second of a series of Informative art artt- I ee regarding the th federal Income tax fax under the tl revenue act c of 0 1942 Information has ls been supplied by the bureau of Internal Infernal revenue One of the principal changes in the te new income tax t Jaw law is in the lowering of exemptions and increase of rates Every Ever individual is allowed a credit against hi net income follows Personal for a single i for as P roni exemption o for person peron I a married person living with husband or wife 1200 and for forhead fora a head of family 1200 The head of family Is defined for or federal federl income tax t purposes as s one who actually supports rt and maintains mants in fn one household houseold one oner or r more in are closely connected with wit him hm by blood bloo or marriage mariage relationship or by adoption lon tion and whose right to exercise family amily ton control and ad provide for these hese Individuals is based on some moral morl or legal obligation Figuring Exemption Taxpayers using the te simplified form for orm obtain personal exemption ex ex- emption on the basis bals of their status as of of t July 1 1942 Taxpayers who use form for 1040 obtain personal proportionate with wit the the number nuber of months mont the te particular status tatus was held M Married red per persOns s may file fie Joint returns even though one has no income and by doing so a couple married marred during 1942 may obtain the te exemption they are entitled to toor for or the period perio of ot married marred status plus lus the amount of their individual exempt exemptions ns prior to their marriage A husband and wife living to together together to to- gether who both have income may mayfe maylie geter file fe lie separate returns and obtain personal exemption applicable to toL toa toa a L married marred person but the te total personal exemption taken in the two wo separate returns may not exceed ex ex- coed ced 1200 1200 Credits Allowed In addition to to- personal to-personal exemptions lons credit also may be obtained for or each person other oter than hus bus band jand or wife dependent for chief support during dung 1942 provided that the he dependent either eiter was under 18 years of age age or Incapable of support self support sel-support because of mental or physical defect Credit for dependents is b based sed sedon on actual financial d dependency not noton noton noton on legal dependency alone The taxpayer must provide for more moreth th than n one half one of th the support or there is no dependency A person who person ho ho obtains head of family exemption for support of ofa a dependent may ay not claim addi addI- I I tiona exemption for dependents dependent unless he supports more mor than one one dependent dependent Amount of credit allowable for each dependent in form for 1040 is and Is proportionate with wt the te number of months of dependency A credit of for or each dependent depend depend- ent eat on July 1 is la allowed in i form for The earnings of a a minor child cid must be included In i the te return of the parent unless the child has become emancipated from parental parental pren- pren paren paren- tal tl authority in accordance with wt the laws law of the te state In which he lives live If I a minor has ha income of his own ow either eiter through his own o earning earnings earnings' earn earn- ear Ing ings' or from other oter sources he must file a return If I the total income income in in- i- i come for tor the year yer amounted to or more A minor Is one who has not yet reached full ful legal age which in Utah is 18 for tor women and 21 for men However a child cid may be emancipated by law before reachIng reaching reaching reach reach- ing full fuI legal age Even though a child has earnings earnings earn earn- ear ings of his own ow a parent is entitled entitled en en- titled to claim caim a credit for a dependent dependent dependent de de- de- de pendent provided that he furnished furnished fur fur- chief support for the child cid |