A parent's right to claim his child as a dependent is still tightly bound by important restrictions.

But by far the most important and perhaps most misunderstood restriction says that a parent must still pay half of a child's support in order to have the right to count him as a dependent and use him as an exemption. At first glance this might seem that Dad has to at least match whatever Junior earns. This is not the case.

Suppose an enterprising student wins himself a scholarship from the University worth $1000 a year. Then suppose that he can earn still another $1000 a year. Father does not have to add $2000 to Junior's income in order to claim him as an exemption. For scholarships, under the new law, are tax exempt. The parent in this situation has to match only $1000--his son's actual earned income.

Imagine another case where the son has won an $800 scholarship, earns $700, and borrows another $400 from the Financial Aid Center. Here Father would have to match $1100. Although he can ignore the scholarship he must include the amount of a loan in the figure which he must balance, in the opinion of a Corporation tax counsel.

But suppose Grandmother has be-queathed Junior a yearly income of $10,000. If Dad is stingy he and son put their heads together and decide to save $8,500 of Junior's income each year. The son will contribute $1,500 toward his own expenses and Papa will add an equal amount. This gives Junior an annual income of $3000 during his college years as well as providing him with a kitty of $34,000 plus interest when he graduates.

Another catch in the 50 percent clause is the varying standard of living among students. The Financial Aid Center says a student can live comfortably here on $1800-1900 a year. Many young gentlemen of Mount Auburn Street, however, are living lives just as much cramped by the purse strings on incomes of $4000 and $5000 a year.

Since the average student expense here is, according to University figures, approximately $2400 per year, a student must watch himself when he starts earning over $1200.

Thus, as Graham R. Taylor '49, director of the Student Employment Office, commented this week, "The old problem is still there, but it affects far fewer people. Few college students can earn as much as $1200 a year, but literally thousands can easily top $600.

Next April 15, when all the tax returns are finally mailed in, a few sleepy-eyed students will find themselves several hundred dollars richer. Their pleasure-- if they notice the extra dollars-- will be well warranted, for in the next few years, until the tax law is changed again, many students will be financially better off as a result of it.

Inequalities and gaping loopholes still remain, but as far as the student is concerned Monro and Morgan have won their battle