Taxable Years Beginning in 1940 shall be considered as a dividend received by him from sources within the United States. See note following Sec. 396, Sec. 396. Shareholder's tax paid by corporation. If a personal service corporation is exempt for any taxable year under section 725 from excess profits tax, it shall, at the time of filing its return, pay to the collector an amount equal to the amount that would be required by section 143 (b) or section 144 to be deducted and withheld by the corporation if any amount required by this Supplement to be included in the gross income of the shareholder had been, on the last day of the taxable year of the corporation, paid to the shareholder in cash as a dividend. Such amount shall be collected and paid in the same manner as the amount of tax due in excess of that shown by the taxpayer upon a return in the case of a mathematical error appearing on the face of the return. In applying the above schedule to In applying the above schedule to In applying the above schedule to determine the tax of a taxpayer determine the tax of a taxpayer determine the tax of a taxpayer with one or more dependents there with one or more dependents there with one or more dependents there shall be subtracted from his gross shall be subtracted from his gross shall be subtracted from his gross income $385 for each such depend-income $385 $400 for each such de- income $400 for each such dependpendent. ent. ent. See note following Sec. 404, I. R. C., infra. Sec. 401. Rules for application of section 400. For the purposes of this Supplement Sec. 401. (a) Definitions— Sec. 401. (a) (1) "Married person" means a married person living with husband or wife. Sec. 401. (a) (2) "Dependent" Sec. 401. (a) (2) "Dependent" Sec. 401. (a) (2) "Dependent" means a person (other than husband means a person (other than husband means a person (other than husband or wife) dependent upon and re- or wife) dependent upon and re- or wife) dependent upon and receiving his chief support from the ceiving his chief support from the ceiving his chief support from the taxpayer on July 1 of the taxable taxpayer on July 1 of the taxable taxpayer if such dependent person year if on such date such dependent year if on such date such dependent is under eighteen years of age or is person is under eighteen years of person is under eighteen years of incapable of self-support because age, or is incapable of self-support age, or is incapable of self-support mentally or physically defective, exbecause mentally or physically de- because mentally or physically de- cluding as a dependent, in the case fective, excluding as a dependent, fective, excluding as a dependent, of a head of a family, one who |