| Show PREPARING THE m WK N M TAX RETURNS FOH 1921 everybody whose income Is or oi moio has I 1 lo 10 0 pile file a return the following statement is issued by collector of internal R revenue evenue james H anderson district of utah tall the revenue act of 19 1921 11 contains contain two new and important provisions which are the subject of frequent inquiry the first relates to the personal exemptions allowed married persons and the second to tile the provision requiring that a return be made of gross income of or more the act provides that a i married person living with husband or wife whose net income tor for 1921 was or less shall be allowed a personal exemption of 2500 it if the net income of such person was over the exemption is 2000 under the revenue act of 1918 the personal exemption allowed a married person was 2000 regardless of the amount of net income the normal tax rate remains unchanged 4 per cent on the first of net income above the exemptions and S per cent on the remaining net income in order that an income slightly in excess of shall not be subjected to an inordinately disproportionate tax because of the reduction of the exemption to 2000 thereon the law provides that such reduction shall not operate to increase the tax which would be payable it if the exemption were 2500 by more than the amount an aunt of the net income in excess of for example on a net income of the tax without this saying saving clause would be which is 4 per cent cc n t on the amount 0 of net income less an exemption of 2 the actual tax is co computed in as follows from the net income of is deducted 2500 leaving 2510 the 4 per cent tax on which amounts to to this is added 10 the amount of net income in excess of 11 the personal exemptions allowed married persons apply also to the head of a family a person who supports in one household one or more relatives by blood marriage or adoption heretofore a person whose net income was less than his exemption 1000 it if single or 2000 it if married was not required to file a return under the revenue act of 1921 if the gross income of an individual equalled equal led or exceeded or it if the com combined bained gross income of a married couple and that of dependent minor children equalled equal led or exceeded a return must be filed regardless of the amount of net income net income is gross income less certain deductions the fact that allowable deductions from gross income for business expenses losses bad debts etc may reduce the net income to an amount below the personal exemptions of 1000 or 2 does not alter the requirement to file a return of gross income if such gross income equalled equal led or exceeded |
