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Show Your Hew Income Taxes SINGLE? YOU PAY MORE; JUNE BRIDEGROOMS PLACED ON PRORATE BASIS Editor's note: This is the third of six articles detailing the new federal income tax regulations which upwards of three million more citizens must meet before March 16. . By ROBEBT TALLET NBA Service Writer WASHINGTON, Jan. IS If you are an unmarried person without dependent, depen-dent, and earn upward of 120 a week, you will probably pay an income in-come tax to Unci Sam tins year even if you paid none last year. Twenty dollars a week is $1040 a year, gross. Sine th personal exemption ex-emption allowed single persons this year is oniy $1000, having been reduced re-duced from I1SO0 last year, this $20-a-week man must make out a return and pay a tax on that $40 above $1000. unless he ha other deductions, such aa those for taxes or contributions, which bring his net income below the $1000 mark. Th $40, if taxable, would of course be assessed at the lowest rata, 4 per cent, or $1.60. The aame nte applies to taxable income up to $4000, when the rate rise to I per cent Last year thia $1040 man would have paid no tax at all, since $1M0 waa exempt If he had paid, it would have been at rate beginning at IVi per cent, and not rising to k per can! until S8000 was reached. To show this difference, let' take the case of an unmarried person with no dependent and auumt b got last years 25 per cent "earned Income credit," as most small income wen in the "earned income" class: Nat . Tax Tax , fneeaae last year thia year $ l.te Naae $ 4. l.e Neae . 1 a !. $ s.fS 4. a . I SS S a 4,M IS IS It. ' s.ae i is ise.ee lMe 14S.1S aae.e Aa on th income of married persons, per-sons, th surtax this year become operative at 1 per cent on net incomes in-comes over $4000, Instead of $10,000. It ranges upward. Last year the maximum maxi-mum surtax was 10 per cent on net Income over $100,000; this year the maximum ia SS per cent on net income in-come ot over $1,000,000. a To consider, in detail. higher income in-come class among the single men, take Richard Roe, an unmarried man with no dependents and a net income of tM. 500. Roe will get personal exemption ex-emption of only $1000 (Instead of $1500) thia year, leaving I13.S00 on which he must psy tax. The rate on the tint $4000 will be 4 per cent, or $160; on the next $9500, S per cent or $760; as surtax, $160 more or total to-tal of $1080 tax. Last year on the sam Income Roe would have paid $480 tax. or $360 tax If hla entire Income had been "earned' Income." "HEAD OF A FAMILY" . However, an unmarried person who has th support of others on hi hands iOeatlaued aa Fas Twel I TAX ON SINGLE PERSONS MORE Juno Bridegroom Placed on Prorate Batla Under JU. 8. Schedule (Ceatlsaed Frees Fsse Oael I recognised by the law a the "head of a family" and as such he Is entitled to the 12500 exemption allowed married mar-ried men. Under the law In effect last year th term "head of a family" wa Interpreted to mean a taxpayer, though single, who "support and maintain In on household one or more Indlvldusls who are closely connected con-nected with him by blood relationship, relstionship by marriage or by adoption, adop-tion, and whose right to exercise fsm-ily fsm-ily control and provide for these dependent de-pendent indlvldusls is based upon some moral or legal obligation." This term will probsbly be sunilsrly Interpreted In-terpreted under the present law. In addition to the $2500 exemption, the "head of family" Is sllowed $400 credit for esch dependent If, for example, an unmarried son supports in hi own household n aged mother and a 17-year-old Slater (It being the sge limit for dependents, unless they are incapacitated I he is entitled to an exemption of 12500 as the "head of the family, plus a credit of t-tOO for esch dependent or. In this case, a total of 13300. The M00 credit however, how-ever, does not apply to the wife or husband of a taxpayer, though one may be totally dependent upon the other. ANOTHER NEWLYWEO PROBLEM It Is not absolutely necessary that this taxpayer and his dependents live under the ssme roof In order to clsim the exemption. If a child is away at school or if a widower Is obliged to maintain his dependent children with relatives, or there is equslly Justifiable Justifi-able reason of necessity for living apart, the law takes the common sense view. Whst happens In the esse of a single man who married during the year? His marital status must be prorsted by months; which means that if he became a bridegroom in the latter part of June he will be allowed exemption ex-emption for six months at the rate of a single men and for the other six months at the rate for a married man. In such esse, the total exemption for a man married in one of those June weddings would be six-twelfths of 11000, plus six-twelfths of $2500, or a total of $1750. Conversely, the same rule applies to a married man who became a widower wid-ower in 1932. However, if there were children this man may change his status to thst of the "head of a family" and continue to have the same exemption. exemp-tion. WHAT IS "MARRIED"? All such change in marital status must be prorated even with regard to husbands and wives "living together." togeth-er." If occasionally and temporarily the huabsnd Is away from home on business or the wife on a visit, the common homa being maintained, the $2500 exemption still applies. I Even the unavoidable absence of a husband or wife at a sanatorium does not preclude the exemption. But If there occurs a big "bust-up" between them and the husband continuously makes his home at one place and the wife at another, they are not living together within the meaning of Uncle Sam' income tax law and therefore both automatically revert to th atatua of single persons. j Next: Thing yea can dedael frees year new Ineeasa tax;ad things yea cant |