Page:United States Statutes at Large Volume 48 Part 1.djvu/719

 73d C ONGRESS. SESS. II. CH. 277 . MAY 10, 1934 . 693 (C) " Earned net income " means the excess of the amount of INCOM E TAX. PTA TI ON the earned income over the sum of the earned income deduc- of NETINCOME- tions. If the taxpayer's net income is not mor e tha n $3 ,00 0, C o Earned net in. his entire net income shall be considered to be earned net come ." income, and if his net income is more than $3,0 00, his earned net income shall not be considered to be less than $3,000. In no case shall the earned net income be considered to be more than $14,000. (b) CREDITS FOR BOTH NORMAL TAX AND SURTAX .-There shall be Cr edits for bot h nor- allowed for the purposes of the normal tax and the surtax the fol- mal tax and surtax lowing credits against net income (1) P ERSONAL EX EMPTION .-I n the c ase ofa single pe rs on, a Personal exemption. personal exemption of $1,000 ; or in the case of the h ead ofa Single person . family or a married person living with husband or wife, a personal ex emptio n of $2,50 0 . A husband and wi fe living together shall Husband and wife receive but one personal exemption . The amount of su ch personal liv ing to gether . exemption shall be $2,500 . If such husband and wife make Separate returns . sepa rate ret urns, th e person al exemp tion may be taken by eith er or divided between them. (2) CREDIT FOR DEPENDENTS .---$400 for each person (other than credit for depend- husband or wife) dependent upon and receiving his chief support ent,. from the taxpayer if such dependent person is under eighteen years of age or is incapable of self-support because mentally or physically defective. (3) CHANGE OF STATUS .-If the status of the taxpayer, insofar Change of status as it af fects the person al ex empti on or credi t for depen dents , during taxahle year. chan ges duri ng the t axable y ear, the personal exempti on and c redit shall be apportioned, under rules and regulations prescribed by the Commissi oner wit h the ap proval o f the Sec retary, in accor dance with the number of months before and after such change. For the purpose of such apportionment a fractional part of a month shall Apportionment. be disregarded unless it amounts to mor e tha n hal f a month in which case it shall be considered as a month. SE C. 26. CREDITS OF CORPORATION AGAINST NET IN COM E. For the purpose only of the tax imposed by section 13 there shall be allowed as a credit against net income the amount received as interest upon obligations of the United States or of corporations organized under Act of Congress which is allowed to an individual as a credit for purposes of normal tax by section 25 (a) (2) or (3). Part III-Credits Against Tax SE C. 31. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF UNITED STAT ES. The amount of income, war-profits, and excess-profits taxes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax, to the extent provided in section 131 . SEC. 32. TAXES WITHHELD AT SOURCE. The amount of tax withheld at the source under section 143 shall be allowed as a credit against the tax. SEC. 33. CREDIT FOR OVERPAYMENTS. For credit against the tax of overpayments of taxes imposed by this title for other taxable years, see section 322. Credits allowed cor- porations. Interest on United Sta tes sec urities. Ante, p. 682. CREDIT S AGAINST TAX. Taxes of foreign coun- tries and U .S. posses- sions. Extent of credit for. Post, p. 718 Taxes withheld st source. Post, p. 722 Overpayments Poet, p. 750.