Page:United States Statutes at Large Volume 91.djvu/169

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 135

"PART IV—DETERMINATION OF MARITAL STATUS "Sec. 143. Determination of marital status."

(3) The table of part s for subchapter B of chapter 1 (relating to computation of taxable income) is amended by striking o u t the item relating to part IV and inserting in lieu thereof the following: "Part IV. Determination of marital status."

SEC. 102. CHANGE IN DEFINITION OF TAXABLE INCOME TO REFLECT CHANGE IN TAX RATES AND TABLES. (a)

TAXABLE

INCOME

DEFINED.—Section

63

(defining

taxable

26 USC 63.

income) is amended to read as follows: "SEC. 63. TAXABLE INCOME DEFINED. " (a) CORPORATIONS.—For purposes of this subtitle, in the case of a corporation, the term 'taxable income' means gross income minus the deductions allowed by this chapter. " (b) INDIVIDUALS.—For purposes of this subtitle, in the case of an individual, the term 'taxable income' means adjusted gross income— " (1) reduced by the sum of— " (A) the excess itemized deductions, and " (B) the deductions for personal exemptions provided by section 151, and " (2) increased (in the case of an individual for whom an unused zero bracket amount computation is provided by subsection (e)) by the unused zero bracket amount (if any). " (c) EXCESS ITEMIZED DEDUCTIONS.—For purposes of this subtitle,

the term 'excess itemized deductions' means the excess (if any) of— " (1) the itemized deductions, over " (2) the zero bracket amount. " (d) ZERO BRACKET A M O U N T. — For purposes of t h i s subtitle, the

term 'zero bracket amount' means— " (1) $3,200 in the case of— " (A) a joint return under section 6013, or " (B) a surviving spouse (as defined in section 2(a)), " (2) $2,200 in the case of an individual who is not married and who is not a surviving spouse (as so defined), " (3) $1,600 in the case of a married individual filing a separate return, or " (4) zero in any other case. " (e) ITNUSED ZERO BRACKET A M O U N T. — " (1) INDIVIDUALS FOR WHOM COMPUTATION MUST BE MADE.—A

computation for the taxable year shall be made under this subsection for the following individuals: " (A) a married individual filing a separate return where either spouse itemizes deductions, " (B) a nonresident alien individual, " (C) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States), and " (D) an individual with respect to whom a deduction under section 151(e) is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins.

"Excess itemized deductions."

"Zero bracket amount."

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