Page:United States Statutes at Large Volume 90 Part 2.djvu/91

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1559

(C) by redesignating paragraph (3) as paragraph (2). (5) Subsection (d) of section 144 is hereby repealed. (6) Section 1211(b)(3) (relating to computation of taxable income for purposes of limitation on capital losses) is amended by striking out the last sentence thereof. (7) Section 1304(b) (relating to certain provisions inapplicable for income averaging) is amended by striking out paragraph (1) and by redesignating paragraph s (2), (3), (4), and (5) as paragraph s (1), (2), (3), and (4), respectively. (8) Section 6014(a) (relating to tax not computed by taxpayer) is amended— (A) by striking out in the first sentence "entitled to elect to p a y the tax imposed by section 3 " and inserting in lieu thereof "entitled to take the standard deduction provided by section 141 (other than an individual described in section 141(e))"; and (B) by striking out in the second sentence " p a y the tax imposed by section 3"' and inserting in lieu thereof "take the standard deduction*'. (9) Paragraph (5) of section 6014(b) is amended to read as follows: " (5) to cases where the taxpayer does not elect the standard deduction or where the taxpayer elects the standard deduction but is subject to the provisions of section 141(e) (relating to limitations in case of certain dependent tax p a y e r s). "

26 USC 144. 26 USC 1211. 26 USC 1304.

26 USC 6014. ^'»'«' P- 1558.

(c) CLERICAL AMENDMENTS. —

(1) The table of sections for part I of subchapter A of chapter 1 is amended by striking out the items relating to sections 3 and 4 and inserting in lieu thereof: "Sec. 3. Tax tables for individuals having taxable income of less than $20,000." (2) The table of sections for part IV of subchapter A of chapter 1 is amended by striking out "paying optional tax o r " in the item relating to section 36. SEC. 502. DEDUCTION FOR ALIMONY ALLOWED IN DETERMINING ADJUSTED GROSS INCOME. (a) IN GENERAL.—Section 62 (defining adjusted gross income) is 26 USC 62. amended by inserting after paragraph (12) the following new paragraph: "(13) ALI3IONY.—The deduction allowed by section 215." (b) CONFORMING AMENDMENT. — The first sentence of subparagraph

(A) of section 3402(m)(2) (relating to withholding allowances based 26 USC 3402. on itemized deductions) is amended by striking out "under section 62" and inserting in lieu thereof "under section 62 (other than paragraph (13) thereof)". (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 62 note, apply to taxable years beginning after December 31, 1976. SEC. 503. REVISION OF RETIREMENT INCOME CREDIT. (a) IN GENERAL.—Section 37 (relating to retirement income) is 26 USC 37, amended to read as follows: "SEC. 37. CREDIT FOR THE ELDERLY. " (a) GENERAL RULE. — I n the case of an individual who has attained

age €5 before the close of the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 15 percent of such individual's section 37 amount for such taxable year.

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