(B) Taxable years beginning after December 31, 1964. In the case of a taxable year beginning after December 31, 1964, there is hereby imposed on the taxable income of every individual who is the head of a household a tax in accordance with the following table: The tax is: If the taxable income is: Not over $1,000.. ----- --- Over $1,000 but not over $2,000.. 14% of the taxable income. $140, plus 16% of excess over $1,000. $300, plus 18% of excess over $2,000. $660, plus 20% of excess over $4,000. $1,060, plus 22% of excess over $6,000. $1,500, plus 25% of excess over $8,000. $2,000, plus 27% of excess over $10,000. $2,540, plus 31% of excess over $12,000. $3,160, plus 82% of excess over $14,000. $3,800, plus 35% of excess over $16,000. $4,500, plus 36% of excess over $18,000. $5,220, plus 40% of excess over $20,000. $6,020, plus 41% of excess over $22,000. $6,840, plus 43% of excess over $24,000. $7,700, plus 45% of excess over $26,000. $8,600, plus 46% of excess over $28,000. $10,440, plus 48% of excess over $32,000. $12,360, plus 50% of excess over $36,000. $13,360, plus 52% of excess over $38,000. $14,400, plus 53% of excess over $40,000. $16,520, plus 55% of excess over $44,000. $19,820, plus 56% of excess over $50,000. $20,940, plus 58% of excess over $52,000. $27,900, plus 59% of excess over $64,000. $31,440, plus 61% of excess over $70,000. $35,100, plus 62% of excess over $76,000. $37,580, plus 63% of excess over $80,000. $42,620, plus 64% of excess over $88,000. $50,300, plus 66% of excess over $100,000. $63,500, plus 67% of excess over $120,000. $76,900, plus 68% of excess over $140,000. $90,500, plus 69% of excess over $160,000. $104,300, plus 70% of excess over $180,000. SECTION 1. TAX IMPOSED. (8) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES.-There is hereby imposed on the taxable income of (1) Every married individual (as defined in section 143) who makes a single return Jointly with his spouse under section 6013, and (2) Every surviving spouse (as defined in section 2(a)), A tax determined in accordance with the following table: If the taxable income is: Not over $1,000-- Over $1,000 but not over $2,000....... - The tax is: 14% of the taxable income. $140, plus 15% of excess over $1,000. $290, plus 16% of excess over $2,000. $450, plus 17% of excess over $3,000. $620, plus 19% of excess over $4,000. $1,380, plus 22% of excess over $8,000 $2,260, plus 25% of excess over $12,000. $3,260, plus 28% of excess over $16,000. $4,380, plus 32% of excess over $20,000. $5,660, plus 36% of excess over $24,000. $7,100, plus 39% of excess over $28,000. $8,660, plus 42% of excess over $32,000. $10,340, plus 45% of excess over $36,000. $12,140, plus 48% of excess over $40,000. $14,060, plus 50% of excess over $44,000. $18,060, plus 53% of excess over $52,000. $24,420, plus 55% of excess over $64,000. $31,020, plus 58% of excess over $76,000. $37,980, plus 60% of excess over $88,000. $45,180, plus 62% of excess over $100,000. $57,580, plus 64% of excess over $120,000. $70,380, plus 66% of excess over $140,000. $83,580, plus 68% of excess over $160,000. $97,180, plus 69% of excess over $180,000. $110,980, plus 70% of excess over $200,000. (b) HEADS OF HOUSEHOLDS.-There is hereby imposed on the taxable income of every individual who is the head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If the taxable income is: Not over $1,000---. Over $1,000 but not over $2,000__Over $2,000 but not over $4,000.... Over $4,000 but not over $6,000.. Over $6,000 but not over $8,000.... Over $8,000 but not over $10,000.... Over $10,000 but not over $12,000. Over $12,000 but not over $14,000__ Over $14,000 but not over $16,000.. Over $16,000 but not over $18,000-. Over $18,000 but not over $20,000. Over $20,000 but not over $22,000– Over $22,000 but not over $24,000. Over $24,000 but not over $26,000Over $26,000 but not over $28,000.... Over $28,000 but not over $32,000__ Over $32,000 but not over $36,000.... Over $36,000 but not over $38,000.... Over $38,000 but not over $40,000.... Over $40,000 but not over $44,000-Over $44,000 but not over $50,000---Over $50,000 but not over $52,000-Over $52,000 but not over $64,000_ Over $64,000 but not over $70,000-. Over $70,000 but not over $76,000-. Over $76,000 but not over $80,000. Over $80,000 but not over $88,000.... Over $88,000 but not over $100,000__ Over $100,000 but not over $120,000.... Over $120,000 but not over $140,000.. Over $140,000 but not over $160,000_ Over $160,000 but not over $180,000Over $180,000‒‒‒‒ The tax is: 14% of the taxable income. $140, plus 16% of excess over $1,000. $300, plus 18% of excess over $2,000. 6660, plus 19% of excess over 84,000. $1,040, plus 22% of excess over $6,000. $1,480, plus 23% of excess over $8,000. $1,940, plus 25% of excess over $10,000. $2,440, plus 27% of excess over $12,000. $2,980, plus 28% of excess over $14,000. $3,540, plus 31% of excess over $16,000. $4,160, plus 32% of excess over $18,000. $4,800, plus 35% of excess over $20,000. $5,500, plus 36% of excess over $22,000. $6,220, plus 38% of excess over $24,000. $6,980, plus 41% of excess over $26,000. $7,800, plus 42% of excess over $28,000. $9,480, plus 45% of excess over $32,000. $11,280, plus 48% of excess over $36,000. $12,240, plus 51% of excess over $38,000. $13,260, plus 52% of excess over $40,000. $15,340, plus 55% of excess over $44,000. $18,640, plus 56% of excess over $50,000. $19,760, plus 58% of excess over $52,000. $26,720, plus 59% of excess over $64,000. $30,260, plus 61% of excess over $70,000. $33,920, plus 62% of excess over $76,000. $36,400, plus 63% of excess over $80,000. $41,440, plus 64% of excess over $88,000. $49,120, plus 66% of excess over $100,000. $62,320, plus 67% of excess over $120,000. $75,720, plus 68% of excess over $140,000. $89,320, plus 69% of excess over $160,000. $103,120, plus 70% of excess over $180,000. (c) UNMARRIED INDIVIDUALS (OTHER THAN SURVIVING SPOUSES AND HEADS OF HOUSEHOLDS).— There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 143) a tax determined in accordance with the following table: If the taxable income is: Over $500 but not over $1,000. The tax is: 14% of the taxable income. $70, plus 15% of excess over $500. $145, plus 16% of excess over $1,000. $225, plus 17% of excess over $1,500. $310, plus 19% of excess over $2,000. $690, plus 21% of excess over $4,000. $1,110, plus 24% of excess over $6,000. $1,590, plus 25% of excess over $8,000. $2,090, plus 27% of excess over $10,000. $2,630, plus 29% of excess over $12,000. $3,210, plus 31% of excess over $14,000. $3,830, plus 34% of excess over $16,000. $4,510, plus 36% of excess over $18,000. $5,230, plus 38% of excess over $20,000. $5,990, plus 40% of excess over $22,000. $7,590, plus 45% of excess over $26,000. $10,290, plus 50% of excess over $32,000. $13,290, plus 55% of excess over $38,000. $16,590, plus 60% of excess over $44,000. $20,190, plus 62% of excess over $50,000. $26,390, plus 64% of excess over $60,000. $32,790, plus 66% of excess over $70,000. $39,390, plus 68% of excess over $80,000. $46,190, plus 69% of excess over $90,000. $53.090, plus 70% of excess over $100,000. (d) MARRIED INDIVIDUALS FILING SEPARATE RETURNS; EStates and TruSTS.-There is hereby imposed on the taxable income of every married individual (as defined in section 143) who does not make a single return jointly with his spouse under section 6013, and of every estate and trust taxable under this subsection, a tax determined in accordance with the following; table: If the taxable income is: Not over $500.. Over $500 but not over $1,000__ ------ --- The tax is: 14% of the taxable income. $70, plus 15% of excess over $500. 8145, plus 16% of excess over $1,000. $225, plus 17% of excess over $1,500. $310, plus 19% of excess over $2,000. $690, plus 22% of excess over $4,000. $1,130, plus 25% of excess over $6,000. $1,630, plus 28% of excess over $8,000. $2,190, plus 32% of excess over $10,000. $2,830, plus 36% of excess over $12,000. $3.550, plus 39% of excess over $14,000. $4,330, plus 42% of excess over $16,000. $5,170, plus 45% of excess over $18,000. $6,070, plus 48% of excess over $20,000. $7,030, plus 50% of excess over $22,000. $9,030, plus 53% of excess over $26,000. $12,210, plus 55% of excess over $32,000. $15,510, plus 58% of excess over $38,000. $18,990, plus 60% of excess over $44,000. $22,590, plus 62% of excess over $50,000. $28,790, plus 64% of excess over $60,000. $35,190, plus 66% of excess over $70,000. $41,790, plus 68% of excess over $80,000. $48,590, plus 69% of excess over $90,000. $55,490, plus 70% of excess over $100,000. [Sec. 1 as amended by sec. 803 (a), Tax Reform Act 1969 (83 Stat. 487) ]. PAR. 2. Paragraph (a) of § 1.1-1 is amended to read as follows: § 1.1-1 Income tax on individuals. (a) General rule. (1) Section 1 of the Code imposes an income tax on every individual, resident or nonresident, other than a nonresident alien individual subject to the tax imposed by section 871 (a) or section 877. For optional tax in the case of taxpayers with adjusted gross income of less than $5,000 (less than $10,000 for taxable years beginning after December 31, 1969) see section 3. The tax imposed is upon taxable income (determined by subtracting the allowable deductions from gross income). The tax is determined in accordance with the table contained in section 1. See subparagraph (2) for reference guides to the appropriate table for taxable years beginning on or after January 1, 1964 and before January 1, 1965, taxable year beginning after December 31, 1964 and before January 1, 1971, and taxable years beginning after December 31, 1970. In certain cases credits are allowed against the amount of the tax. See part IV (section 31 and following), subchapter A, chapter 1 of the Code. In general, the tax is payable upon the basis of returns rendered by persons liable therefor (subchapter A (sections 6001 and following), chapter 61 of the Code) or at the source of the income by withholding. For the computation of tax in the case of a joint return of a husband and wife, or a return of a surviving spouse, for taxable years beginning before January 1, 1971, see section 2. The computation of tax in such a case for taxable years beginning after December 31, 1970, is determined in accordance with the table contained in section 1(a) as amended by the Tax Reform Act of 1969. For other rates of tax on individuals, see section 5(a). For the imposition of an additional tax for the calendar years 1968, 1969, and 1970, see section 51(a). (2) For taxable years beginning on or after January 1, 1964, the tax imposed upon a single individual, a head (3) The income tax imposed by section 1 upon any amount of taxable income is computed by adding to the income tax for the bracket in which that amount falls in the appropriate table in section 1 the income tax upon the excess of that amount over the bottom of the bracket at the rate indicated in such table. (4) The provisions of section 1 of the Code, as amended by the Tax Reform Act of 1969, and of this paragraph may be illustrated by the following examples: Example (1). A, an unmarried individual, had taxable income for the calendar year 1964 of $15,750. Accordingly, the tax upon such taxable income would be $4,507.50, computed as follows from the table in section 1(a)(1): Tax on $14,000 (from table) Tax on $1,750 (at 41% as determined from the table) $3,790.00 717.50 Total tax on $15,750 $4,507.50 Example (2). Assume the same facts as in example (1), except the figures are for the calendar year 1965. The tax upon such taxable income would be $4,232.50, computed as follows from the table in section 1 (a) (2): purposes of determining this limitation the tax under section 1 (a) or (b) and the tax at the 87-percent rate shall each be computed before the allowance of any credits against the tax. Where the alternative tax on capital gains is imposed under section 1201 (b), the 87-percent limitation shall apply only to the partial tax computed on the taxable income reduced by 50 percent of the excess of net long-term capital gains over net short-term capital losses. Where, for purposes of computations under the income averaging provisions, section 1201 (b) is treated as imposing the alternative tax on capital gains computed under section. 1304 (e) (2), the 87-percent limitation shall apply only to the tax equal to the tax imposed by section 1, reduced by the amount of the tax imposed by section 1 which is attributable to capital gain net income for the computation year. (b) Taxable years beginning after December 31, 1970. If, for any taxable year beginning after December 31, 1970, an individual has earned taxable income which exceeds his taxable income as defined by section 1348, the tax imposed by section 1, as amended by the Tax Reform Act of 1969, shall not exceed the sum computed under the provisions of section 1348. For imposition of minimum tax for tax preferences see sections 56 through 58. PAR. 4. Section 1.1-4 is deleted and § 1.1-5 is redesignated as § 1.1-3: § 1.1-3 Change in rates applicable to taxable year. PAR. 5. Section 1.2 is amended by inserting section 1(b) (2), (3) and (4) before section 2, by revising section 2 to reflect the changes made by section 803(b) of the Tax Reform Act 1969, by revising the historical note, by adding thereafter section 2 as amended by section 803 (b) of the Tax Reform Act of 1969 and by adding a historical note. These amended and added provisions reads as follows: § 1.2 Statutory provisions Section 1. Tax imposed. *** (b) Rates of tax on heads of households-(2) DEFINITION OF HEAD OF HOUSEHOLD.-For of this purposes subtitle, an individual shall be considered a head of a household if, and only if, such individual is not married at the close of his taxable year, is not a surviving spouse (as defined in section 2(b)), and either— (A) maintains as his home a household which constitutes for such taxable year the principal place of abode, as a member of such household, of— (i) a son, stepson, daughter, or stepdaughter of the taxpayer, or a descendant of a son or daughter of the taxpayer, but if such son, stepson, daughter, stepdaughter, or descendant is married at the close of the taxpayer's taxable year, only if the taxpayer is entitled to a deduction for the taxable year for such person under section 151, For purposes of this paragraph and of section 2(b) (1) (B), an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual. (3) DETERMINATION OF STATUS.For purposes of this subsection (A) a legally adopted child of a person shall be considered a child of such person by blood; (B) an individual who is legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married; (C) a taxpayer shall be considered as not married at the close of his taxable year if at any time during the taxable year his spouse is a nonresident alien; and (D) a taxpayer shall be considered as married at the close of his taxable year if his spouse (other than a spouse defined in subparagraph (C)) died during the taxable year. (4) LIMITATIONS.- Notwithstanding paragraph (8), for purposes of this subtitle a taxpayer shall not be considered to be a head of a household (A) if at any time during the taxable year he is a nonresident alien; or (B) by reason of an individual who would not be a dependent for the taxable year but for (i) paragraph (9) of section 152 (1) IN GENERAL.-For purposes of section 1, the term "surviving spouse" means a taxpayer— (A) Whose spouse died during either of his 2 taxable years immediately preceding the taxable year, and (B) Who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (i) who (within the meaning of section 152) is a son, stepson, daughter, or stepdaughter of the taxpayer, and (ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151. For purposes of this paragraph, an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual. |