Date of Download: Jan 14, 2002

USCA (United States Code Annotated)

26 USCA S 151

Copr. © West 2002 No Claim to Orig. U.S. Govt. Works

_____________________________________________________________

26 U.S.C.A. § 151 I.R.C. § 151

UNITED STATES CODE ANNOTATED

TITLE 26. INTERNAL REVENUE CODE

SUBTITLE A--INCOME TAXES

CHAPTER 1--NORMAL TAXES AND SURTAXES

SUBCHAPTER B--COMPUTATION OF TAXABLE INCOME

PART V--DEDUCTIONS FOR PERSONAL EXEMPTIONS

Copr. © West Group 2001. No claim to Orig. U.S. Govt. Works.

Current through P.L. 107-56, approved 10-26-01

§ 151. Allowance of deductions for personal exemptions

(a) Allowance of deductions.--In the case of an individual, the exemptions provided by this section shall be allowed as deductions in computing taxable income.

(b) Taxpayer and spouse.--An exemption of the exemption amount for the taxpayer; and an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.

(c) Additional exemption for dependents.--

(1) In general.--An exemption of the exemption amount for each dependent (as defined in section 152)--

(A) whose gross income for the calendar year in which the taxable year of the taxpayer begins is less than the exemption amount, or

(B) who is a child of the taxpayer and who (i) has not attained the age of 19 at the close of the calendar year in which the taxable year of the taxpayer begins, or (ii) is a student who has not attained the age of 24 at the close of such calendar year.

(2) Exemption denied in case of certain married dependents.--No exemption shall be allowed under this subsection for any dependent who has made a joint return with his spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.

(3) Child defined.--For purposes of paragraph (1)(B), the term "child" means an individual who (within the meaning of section 152) is a son, stepson, daughter, or stepdaughter of the taxpayer.

(4) Student defined.--For purposes of paragraph (1)(B)(ii), the term "student" means an individual who during each of 5 calendar months during the calendar year in which the taxable year of the taxpayer begins--

(A) is a full-time student at an educational organization described in section 170(b)(1)(A)(ii); or

(B) is pursuing a full-time course of institutional on-farm training under the supervision of an accredited agent of an educational organization described in section 170(b)(1)(A)(ii) or of a State or political subdivision of a State.

(5) Certain income of handicapped dependents not taken into account.--

(A) In general.--For purposes of paragraph (1)(A), the gross income of an individual who is permanently and totally disabled shall not include income attributable to services performed by the individual at a sheltered workshop if--

(i) the availability of medical care at such workshop is the principal reason for his presence there, and

(ii) the income arises solely from activities at such workshop which are incident to such medical care.

(B) Sheltered workshop defined.--For purposes of subparagraph (A), the term "sheltered workshop" means a school--

(i) which provides special instruction or training designed to alleviate the disability of the individual, and

(ii) which is operated by--

(I) an organization described in section 501(c)(3) and exempt from tax under section 501(a), or

(II) a State, a possession of the United States, any political subdivision of any of the foregoing, the United States, or the District of Columbia.

(C) Permanent and total disability defined.--An individual shall be treated as permanently and totally disabled for purposes of this paragraph if such individual would be so treated under paragraph (3) of section 22(e).

(6) Treatment of missing children.--

(A) In general.--Solely for the purposes referred to in subparagraph (B), a child of the taxpayer--

(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of the family of such child or the taxpayer, and

(ii) who was (without regard to this paragraph) the dependent of the taxpayer for the portion of the taxable year before the date of the kidnapping,

shall be treated as a dependent of the taxpayer for all taxable years ending during the period that the child is kidnapped.

(B) Purposes.--Subparagraph (A) shall apply solely for purposes of determining--

(i) the deduction under this section,

(ii) the credit under section 24 (relating to child tax credit), and

(iii) whether an individual is a surviving spouse or a head of a household (such terms are defined in section 2).

(C) Comparable treatment for earned income credit.--For purposes of section 32, an individual--

(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of the family of such individual or the taxpayer, and

(ii) who had, for the taxable year in which the kidnapping occurred, the same principal place of abode as the taxpayer for more than one-half of the portion of such year before the date of the kidnapping,

shall be treated as meeting the requirement of section 32(c)(3)(A)(ii) with respect to a taxpayer for all taxable years ending during the period that the individual is kidnapped.

(D) Termination of treatment.--Subparagraphs (A) and (C) shall cease to apply as of the first taxable year of the taxpayer beginning after the calendar year in which there is a determination that the child is dead (or, if earlier, in which the child would have attained age 18).

(d) Exemption amount.--For purposes of this section--

(1) In general.--Except as otherwise provided in this subsection, the term "exemption amount" means $2,000.

(2) Exemption amount disallowed in case of certain dependents.--In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the exemption amount applicable to such individual for such individual's taxable year shall be zero.

(3) Phaseout.--

(A) In general.--In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the threshold amount, the exemption amount shall be reduced by the applicable percentage.

(B) Applicable percentage.--For purposes of subparagraph (A), the term "applicable percentage" means 2 percentage points for each $2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500". In no event shall the applicable percentage exceed 100 percent.

(C) Threshold amount.--For purposes of this paragraph, the term "threshold amount" means--

(i) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),

(ii) $125,000 in the case of a head of a household (as defined in section 2(b) [FN1],

(iii) $100,000 in the case of an individual who is not married and who is not a surviving spouse or head of a household, and

(iv) $75,000 in the case of a married individual filing a separate return.

For purposes of this paragraph, marital status shall be determined under section 7703.

(D) Coordination with other provisions.--The provisions of this paragraph shall not apply for purposes of determining whether a deduction under this section with respect to any individual is allowable to another taxpayer for any taxable year.

[(E) Repealed. Pub.L. 103-66, Title XIII, § 13205, Aug. 10, 1993, 107 Stat. 462]

(4) Inflation adjustments.--

(A) Adjustment to basic amount of exemption.--In the case of any taxable year beginning in a calendar year after 1989, the dollar amount contained in paragraph (1) shall be increased by an amount equal to--

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting "calendar year 1988" for "calendar year 1992" in subparagraph (B) thereof.

(B) Adjustment to threshold amounts for years after 1991.--In the case of any taxable year beginning in a calendar year after 1991, each dollar amount contained in paragraph (3)(C) shall be increased by an amount equal to--

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof.

(e) Identifying information required.--No exemption shall be allowed under this section with respect to any individual unless the TIN of such individual is included on the return claiming the exemption.

CREDIT(S)

2001 Electronic Update

(Aug. 16, 1954, c. 736, 68A Stat. 42; Dec. 30, 1969, Pub.L. 91-172, Title VIII, § 801(a)(1), (b)(1), (c)(1), Title IX, § 941(b), 83 Stat. 675, 726; Dec. 10, 1971, Pub.L. 92-178, Title II, § 201(a)(1), (b)(1), (c), 85 Stat. 510, 511; Oct. 4, 1976, Pub.L. 94-455, Title XIX, § 1901(a)(23), 90 Stat. 1767; Nov. 6, 1978, Pub.L. 95-600, Title I, § 102(a), 92 Stat. 2771; Aug. 13, 1981, Pub.L. 97-34, Title I, § 104(c), 95 Stat. 189; July 18, 1981, Pub.L. 98-369, Title IV, § 426(a), 98 Stat. 804; Oct. 22, 1986, Pub.L. 99- 514, Title I, § 103, Title XVIII, § 1847(b)(3), 100 Stat. 2102, 2856; Nov. 10, 1988, Pub.L. 100-647, Title VI, § 6010(a), 102 Stat. 3691; Nov. 5, 1990, Pub.L. 101-508, Title XI, §§ 11101(d)(1)(F), 11104(a), 104 Stat. 1388- 405, 1388-407; July 3, 1992, Pub.L. 102-318, Title V, § 511, 106 Stat. 300; Aug. 10, 1993, Pub.L. 103-66, Title XIII, §§ 13201(b)(3)(G), 13205, 107 Stat. 459, 462; Aug. 20, 1996, Pub.L. 104-188, Title I, §§ 1615(a)(1), 1702(a)(2), 110 Stat. 1853, 1868; Dec. 21, 2000, Pub.L. 106-554, § 1(a)(7) [Title III, § 306(a)], 114 Stat. 2763, 2763A-634; June 7, 2001, Pub.L. 107- 16, Title I, § 102(a), 115 Stat. 44.)

[FN1] So in original. Probably should be "2(b))".

ENACTMENT OF SUBSECS. (D)(3)(E) AND (F)

<Pub.L. 107-16, Title I, § 102, June 7, 2001, 115 Stat. 44, provided that applicable to taxable years beginning after December 31, 2005, subsecs. (d)(3)(E) and (F) are added to read as follows:>

<"(E) Reduction of phaseout.-->

<"(i) In general.--In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subparagraph (A) shall be equal to the applicable fraction of the amount which would (but for this subparagraph) be the amount of such reduction.>

<"(ii) Applicable fraction.--For purposes of clause (i), the applicable fraction shall be determined in accordance with the following table:>

<"For taxable years beginning The applicable>

<" in calendar year-- fraction is-->

<"2006 and 2007................................................. 2/3>

<"2008 and 2009............................................... 1/3 .>

<"(F) Termination.--This paragraph shall not apply to any taxable year beginning after December 31, 2009.">

PERSONAL EXEMPTION ADJUSTMENT

HISTORICAL AND STATUTORY NOTES

Revision Notes and Legislative Reports

1954 Act. House Report No. 1337, Senate Report No. 1622, and Conference Report No. 2543, see 1954 U.S. Code Cong. and Adm. News, p. 4177.

1969 Act. House Report No. 91-413, Senate Report No. 91-552, and Conference Report No. 91-782, see 1969 U.S. Code Cong. and Adm. News, p. 1645.

1971 Act. House Report No. 92-533, Senate Report No. 92-437, and House Conference Report No. 92-708, see 1971 U.S. Code Cong. and Adm. News, p. 1825.

1976 Act. House Report Nos. 94-658 and 94-1380, Senate Report No. 94- 938, and House Conference Report No. 94-1515, see 1976 U.S. Code Cong. and Adm. News, p. 2897.

1978 Act. House Report No. 95-1445, Senate Report No. 95-1263, and House Conference Report No. 95-1800, see 1978 U.S. Code Cong. and Adm. News, p. 6761.

1981 Act. Senate Report No. 97-144, House Conference Report No. 97-215, and Statements by Legislative Leaders, see 1981 U.S. Code Cong. and Adm. News, p. 105.

1984 Act. House Report No. 98-432, House Conference Report No. 98-861, Statements by Legislative Leaders, and Two Related Reports, see 1984 U.S. Code Cong. and Adm. News, p. 697.

1986 Act. House Conference Report No. 99-841 and Statement by President, see 1986 U.S. Code Cong. and Adm. News, p. 4075.

1988 Act. Senate Report No. 100-445 and House Conference Report No. 100- 1104, see 1988 U.S. Code Cong. and Adm. News, p. 4515.

1990 Act. House Report No. 101-881 and House Conference Report No. 101- 964, see 1990 U.S. Code Cong. and Adm. News, p. 2017.

1992 Acts. House Report No. 102-543(Parts I and II) and House Conference Report No. 102-650, see 1992 U.S. Code Cong. and Adm. News, p. 200.

1993 Acts. House Report No. 103-111 and House Conference Report No. 103- 213, see 1993 U.S. Code Cong. and Adm. News, p. 378.

1996 Acts. Senate Report No. 104-281 and House Conference Report No. 104-737, see 1996 U.S. Code Cong. and Adm. News, p. 1474.

2000 Acts. House Report No. 106-645 and Statement by President, see 2000 U.S. Code Cong. and Adm. News, p. 2459.

2001 Acts. House Conference Report No. 107-84, see 2001 U.S. Code Cong. and Adm. News, p. 46.

Amendments

2001 Amendments. Subsec. (d)(3). Pub.L. 107-16, § 102(a), added subpars. (E) and (F).

2000 Amendments. Subsec. (c)(6). Pub.L. 106-554, § 1(a)(7) [Title III, § 306(a)], inserted par. (6).

1996 Amendments. Subsec. (d)(3)(C)(i). Pub.L. 104-188, § 1702(a)(2), substituted "joint return" for "joint of a return".

Subsec. (e). Pub.L. 104-188, § 1615(a)(1), added subsec. (e).

1993 Amendments. Subsec. (d)(3)(E). Pub.L. 103-66, § 13205, struck out subpar. (E) which provided that par. (3) was not to apply to any taxable year beginning after Dec. 31, 1996.

Subsec. (d)(4)(A)(ii). Pub.L. 103-66, § 13201(b)(3)(G), substituted "1992" for "1989".

Subsec. (d)(4)(B)(ii). Pub.L. 103-66, § 13201(b)(3)(G), substituted "1992" for "1989".

1992 Amendments. Subsec. (d)(3)(E). Pub.L. 102-318, § 511, substituted "December 31, 1996" for "December 31, 1995".

1990 Amendment. Subsec. (d)(1). Pub.L. 101-508, § 11104(a), substituted exemption amount as meaning $2,000 for former provision as meaning $1,900 for taxable years beginning during 1987, $1,950 for taxable years beginning during 1988, and $2,000 for taxable years beginning after Dec. 31, 1988.

Subsec. (d)(2). Pub.L. 101-508, § 11104(a), substituted in heading "in case" for "in the case".

Subsec. (d)(3). Pub.L. 101-508, § 11101(d)(1)(F), substituted in subpar. (B) "1989" for "1987".

Pub.L. 101-508, § 11104(a), added par. (3). Former par. (3) redesignated (4).

Subsec. (d)(4). Pub.L. 101-508, § 11104(a), redesignated par. (3) as (4); substituted heading "Inflation adjustments" for "Inflation adjustment for years after 1989"; enacted subpar. "(A) Adjustment to basic amount of exemption" heading; and added subpar. (B).

1988 Amendment. Subsec. (c)(1)(B)(ii). Pub.L. 100-647 inserted "who has not attained the age of 24 at the close of such calendar year" after "student".

1986 Amendment. Subsec. (c). Pub.L. 99-514, § 103(b), redesignated former subsec. (e) as (c) and struck out prior subsec. (c) provision for an additional exemption for taxpayer or spouse aged 65 or more.

Subsec. (d). Pub.L. 99-514, § 103(b), redesignated as subsec. (d) former subsec. (f), as amended by Pub.L. 99-514, § 103(a), and struck out prior subsec. (d) provision for an additional exemption for blindness of taxpayer or spouse.

Subsec. (e). Pub.L. 99-514, § 103(b), redesignated former subsec. (e) as (c).

Pub.L. 99-514, § 1847(b)(3), substituted "section 22(e)" for "section 37(e)" in par. (e)(5).

Subsec. (f). Pub.L. 99-514, § 103(a) added subsec. (f) "exemption amount" provision and struck out prior "exemption amount" provision reading: "For purposes of this section, the term 'exemption amount' means, with respect to any taxable year, $1,000 increased by an amount equal to $1,000 multiplied by the cost-of-living adjustment (as defined in section 1(f)(3)) for the calendar year in which the taxable year begins. If the amount determined under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10 (or if such amount is a multiple of $5, such amount shall be increased to the next highest multiple of $10)."; the "exemption amount" provision redesignated by Pub.L. 99-514, § 103(b), as subsec. (d).

1984 Amendment. Subsec. (e)(5). Pub.L. 98-369 added par. (5).

1981 Amendment. Subsecs. (b), (c), (d)(1), (2), (e)(1). Pub.L. 97-34, § 104(c)(1), substituted "the exemption amount" for "$1,000" wherever appearing.

Subsec. (f). Pub.L. 97-34, § 104(c)(2), added subsec. (f).

1978 Amendment. Pub.L. 95-600 increased the exemption from $750 to $1,000 with respect to taxable years beginning after Dec. 31, 1978.

1976 Amendment. Subsec. (e)(4). Pub.L. 94-455 struck out "and educational institution" following "Student" in par. catchline, substituted in subpars. (A) and (B) "organization described in section 170(b)(1)(A)(ii)" for "institution", and struck out the provisions following subpar. (B) defining educational institution.

1971 Amendment. Pub.L. 92-178 increased the exemption from $650 to $675 with respect to taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972, and from $675 to $750 with respect to taxable years beginning after Dec. 31, 1971.

1969 Amendment. Pub.L. 91-172, § 801(a)(1), (b)(1), (c)(1), (d)(1), increased the exemption from $600 to $625 with respect to taxable years beginning after Dec. 31, 1969 and before Jan. 1, 1971, from $625 to $650 for taxable years beginning after Dec. 31, 1970 and before Jan. 1, 1972, from $650 to $700 for taxable years beginning after Dec. 31, 1971, and before Jan. 1, 1973, and from $700 to $750 for taxable years beginning after Dec. 31, 1972.

Subsecs. (b), (c). Pub.L. 91-172, § 941(b), substituted "if a joint return is not made by the taxpayer and his spouse" for "if a separate return is made by the taxpayer".

Effective and Applicability Provisions

2001 Acts. Pub.L. 107-16, Title I, § 102(b), June 7, 2001, 115 Stat. 44, provided that: "The amendment made by this section [adding subpars. (E) and (F) to subsec. (d)(3) of this section] shall apply to taxable years beginning after December 31, 2005." [See also Sunset Provisions note set out under this section.]

2000 Acts. Pub.L. 106-554, § 1(a)(7) [Title III, § 306(b)], provided that: "The amendment made by this section [enacting subsec. (c)(6) of this section] shall apply to taxable years ending after the date of the enactment of this Act [Dec. 21, 2000].".

1996 Acts. Amendment by section 1615(a)(1) of Pub.L. 104-188 applicable with respect to returns the due date for which, without regard to extensions, is on or after the 30th day after Aug. 20, 1996, except as otherwise provided, see section 1615(d) of Pub.L. 104-188, set out as a note under section 21 of this title.

Amendment by section 1702 of Pub.L. 104-188 effective as if included in provision of Revenue Reconciliation Act of 1990 [Pub.L. 101-508, Title XI, Nov. 5, 1990, 104 Stat. 1388-400, see Tables for classification] to which it relates, except as otherwise specifically provided, see section 1702(i) of Pub.L. 104-188, set out as a note under section 38 of this title.

1993 Acts. Amendment of subsec. (d)(4)(A)(ii), (B)(ii) by section 13201(b)(3)(G) of Pub.L. 103-66 applicable to taxable years beginning after Dec. 31, 1992, see section 13201(c) of Pub.L. 103-66, set out as a note under section 1 of this title.

1990 Act. Amendment by section 11104(a) of Pub.L. 101-508, applicable to taxable years beginning after Dec. 31, 1990, see section 11104(c) of Pub.L. 101-508, set out as a note under section 1 of this title.

1988 Act. Section 6010(b) of Pub.L. 100-647 provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1988."

1986 Act. Amendment by section 103 of Pub.L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub.L. 99-514, set out as a note under section 1 of this title.

Amendment by 1847(b)(3) of Pub.L. 99-514 effective as if included in the provisions of the Tax Reform Act of 1984, Pub.L. 98-369, Div.A, to which such amendment relates, except as otherwise provided, see section 1881 of Pub.L. 99-514, set out as a note under section 48 of this title.

1984 Act. Section 426(b) of Pub.L. 98-369 provided that: "The amendment made by subsection (a) [enacting subsec. (e)(5) of this section] shall apply to taxable years beginning after December 31, 1984."

1981 Act. Amendment by section 104 of Pub.L. 97-34 applicable to taxable years beginning after Dec. 31, 1984, see section 104(e) of Pub.L. 97-34, set out as a note under section 1 of this title.

1978 Act. Section 102(d)(1) of Pub.L. 95-600 provided that: "The amendments made by subsections (a) and (b) [amending this section and sections 6012(a) and 6013(b)(3) of this title] shall apply to taxable years beginning after December 31, 1978."

1976 Act. Amendment by Pub.L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see § 1901(d) of Pub.L. 94-455, set out as a note under section 2 of this title.

1971 Act. Section 201(a), (b) of Pub.L. 92-178 provided in part that the increase in exemption from $650 to $675 was effective with respect to taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972, and from $675 to $750 was effective with respect to taxable years beginning after Dec. 31, 1971.

1969 Act. Section 801(a)(1) of Pub.L. 91-172 provided in part that the increase in exemption from $600 to $625 was effective with respect to taxable years beginning after Dec. 31, 1969, and before Jan. 1, 1971.

Section 801(b)(1) of Pub.L. 91-172 provided in part that the increase in the exemption from $625 to $650 was effective with respect to taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972.

Section 941(c) of Pub.L. 91-172 provided that: "The amendments made by subsections (a) [amending section 6012 of this title] and (b) [amending this section] shall apply to taxable years beginning after December 31, 1969."

Sunset Provisions

All provisions of, and amendments made by, the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub.L. 107-16, June 7, 2001, 115 Stat. 38, not applicable to taxable, plan, or limitation years beginning after December 31, 2010, or to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2010, and the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to be applied and administered to those years, estates, gifts, and transfers as if the provisions and amendments of that Act had never been enacted, see section 901 of Pub.L. 107-16, set out as a note under 26 U.S.C.A. § 1.

Repeals

Section 801(c)(1) and (d)(1) of Pub.L. 91-172, which provided for an increase in the personal exemption to $700, effective with respect to taxable years beginning after Dec. 31, 1971, and before Jan. 1, 1973, and to $750, effective with respect to taxable years beginning after Dec. 31, 1972, was repealed by section 201(c) of Pub.L. 92-178.

Exemption Amount Adjustment for Certain Taxable Years

The exemption amount was adjusted for taxable years beginning in 1986 by section 4.03 of Revenue Procedure 85-55, formerly set out as a note under section 1 of this title.

The exemption amount was adjusted for taxable years beginning in 1985 by section 4.03 of Revenue Procedure 84-79, formerly set out as a note under section 1 of this title.

CROSS REFERENCES

Adjusted gross income minus deductions for personal exemptions as taxable income, see 26 USCA § 63.

Adjustment in deduction for personal exemption on making return for short period, see 26 USCA § 443.

Amounts paid by employer for dependent care assistance included in gross income, see 26 USCA § 129.

Credit for expenses for household and dependent care services necessary for gainful employment, see 26 USCA § 21.

Deductions for personal exemptions--

Income from Guam, American Samoa and Northern Mariana Islands, see 26 USCA § 931.

Income from Puerto Rico, see 26 USCA § 933.

Net operating loss, see 26 USCA § 172.

Partnerships, see 26 USCA § 703.

Self-employment partnership income, see 26 USCA § 1402.

Deductions allowed for estates and trusts, see 26 USCA § 642.

Determination of marital status, see 26 USCA § 7703.

Doubling of rates of tax on citizens and corporations of certain foreign countries, see 26 USCA § 891.

Eligible individual defined for purposes of determining earned income credit, see 26 USCA § 32.

Exception to addition to tax for failure by individual to pay estimated income tax, see 26 USCA § 6654.

Furnishing identifying number for certain dependents, see 26 USCA § 6109.

Income tax collected on wages at source, see 26 USCA § 3402.

Individuals treated as employees for purposes of determining fringe benefits, see 26 USCA § 132.

"Mathematical or clerical error" defined as in this section for purposes of restrictions applicable to deficiencies, see 26 USCA § 6213.

Nonresident alien entitled to benefits of this section, see 26 USCA §§ 873 and 874.

Persons required to make returns of income, see 26 USCA § 6012.

Phaseout of 15 percent rate and personal exemptions, see 26 USCA § 1.

Student for purposes of estate tax and valuation of certain farm, etc., real property defined with same meaning as within this section, see 26 USCA § 2032A.

Surviving spouse and head of household defined, see 26 USCA § 2.

Taxable income computed without any deduction for personal exemptions for purposes of determining limitation on credit, see 26 USCA § 904.

LIBRARY REFERENCES

Administrative Law

Applicable provisions, see 26 CFR § 1.151-1 et seq.

Encyclopedias

33 Am. Jur. 2d, Federal Taxation (1995) ¶¶ 1006, 1201, 1202, 1204, 1207, 1220, 1221, 1227-1230.

33 Am. Jur. 2d, Federal Taxation (1996) ¶¶ 1006, 1201, 1202, 1204, 1207, 1220, 1221, 1227-1230.

American Digest System

Deduction for personal exemptions, see Internal Revenue k3294 to 3298.

Encyclopedias

Personal exemptions, see C.J.S. Internal Revenue § 301.

Law Review and Journal Commentaries

Domestic relations tax reform. 20 Gonz.L.Rev. 251 (1984/85).

Overview of the state and federal tax responsibilities of bankruptcy trustees and debtors. John D. Howard, 93 Com.L.J. 43 (1988).

Texts and Treatises

2A Soc Sec LP, Applications and Payments § 34:74.

4 Estate Plan & Tax Coord, Decedent's Returns ¶¶ 81,072, 81,073, 81,075.

4 Fed Tax Coord 2d ¶¶ A-3000-3002, 3008, 3009, 3107-3113.

Rothenberg, Tax & Estate Planning for Divorce and Separation §§ 6:1, 6:2.

NOTES OF DECISIONS

Generally 2

Constitutionality 1

Dependents

Dependents - Generally 5

Dependents - Gross income 6

Dependents - Joint returns 7

Dependents - Students 8

Dependents - Support payments 9

Head of household 10

Power of court 3

Taxpayer and spouse 4

1. Constitutionality

Classification, whereby person with gross income of over the former exemption amount of $600 per year did not qualify as dependency exemption for taxpayer, and child under 19 or full-time student qualified as dependency exemption, though he had income in excess of $600, was not unreasonable. Scarangella v. C.I.R., C.A.3 1969, 418 F.2d 228.

Where taxpayer obtained divorce from wife during taxable year, Commissioner's disallowance of dependency exemption for wife was not violation of U.S.C.A. Const.Amend. 14 due process or equal protection rights, since U.S.C.A. Const.Amend. 14 does not apply to federal tax statutes; and this section and §§ 152 and 153 of this title, which deny exemption for person married to taxpayer for portion of taxable year, regardless of support taxpayer furnished, do not violate U.S.C.A.Const.Amend. 5 due process rights, since resulting classification is reasonable and not arbitrary or capricious. Hamilton v. Commissioner of Internal Revenue, U.S.Tax Ct.1977, 68 T.C. 603.

Petitioner's contention that to disallow dependency exemption deductions would deny constitutional rights of due process lacked merit, since deductions are allowed as matter of legislative grace, this section and § 152 of this title provide reasonable classifications for dependency exemption deduction and while the due process clause of U.S.C.A.Const.Amend. 5 is applicable to Federal tax statutes U.S.C.A. Const.Amend. 14 is inapplicable to federal tax statutes. Labay v. Commissioner of Internal Revenue, U.S.Tax Ct.1970, 55 T.C. 6, affirmed 450 F.2d 280.

2. Generally

In order to claim benefits afforded by exemption from taxation, taxpayer must bring himself substantially within terms of this section. C.I.R. v. Lake Forest, Inc., C.A.4 1962, 305 F.2d 814, on remand.

Treasury Department regulation, requiring taxpayer claiming other person as income tax exemption to sign affidavit stating that he has been unable to discover other person's tax identification number (TIN) despite requesting their TIN, does not create exception to statutory requirement that taxpayer provide TIN number for individuals on taxpayer's return in order for taxpayer to obtain exemption with respect to those individuals. Furlow v. U.S., D.Md.1999, 55 F.Supp.2d 360, reconsideration denied.

3. Power of court

$600 former personal exemption provided under this section was authorized as a matter of legislative grace and courts are powerless to enlarge the amount of that deduction. Crowe v. C.I.R., C.A.8 (Minn.) 1968, 396 F.2d 766.

4. Taxpayer and spouse

A husband, as a taxpayer, may not have claimed on his separate return a deduction for the personal exemption of his wife, in addition to his own exemption, where she had gross income during husband's taxable year. Jamieson v. C. I. R., C.A.7 (Ill.) 1965, 353 F.2d 1.

Taxpayer was not entitled to exemption for wife in year 1955, where they were not living together during last three months of 1955 and taxpayer testified that he had no knowledge as to whether his wife was working, had received earned or other income, or whether she had filed separate return. Breland v. U.S., C.A.5 (Miss.) 1963, 323 F.2d 492.

Taxpayer was not entitled to claim woman he formally married May 11, 1963, as personal exemption in 1963, since although legally married at end of year, he had filed separate return and she had gross income of her own. Von Tersch v. C. I. R., Tax Ct.1967, 47 T.C. 415.

Where petitioner, resident of New Jersey, married woman in Maryland in 1952 subsequent to entry of judgment nisi in her New Jersey divorce action but prior to entry of final judgment, Commissioner properly disallowed exemptions claimed for her and her children under this section and § 152 of this title, since under facts and applicable law, the woman and her children were not the wife and stepchildren, respectively, of petitioner, and statutory exemption urged by petitioner is only applicable where there has been a valid marriage to begin with; nor did petitioner prove that he contributed more than one-half of support of woman and her children during 1954 and unrelated dependents. Sheppard v. C.I.R., Tax Ct.1959, 32 T.C. 942.

Taxpayer was not entitled to exemption for wife under § 25(b)(1)(A) [I.R.C.1939 (now this section) ], since he was not married on last day of taxable year within meaning of § 25(b)(2)(B) [I.R.C.1939 (now § 153 of this title) ], the divorce decree having been rendered on December 6 and motion to vacate filed on December 29 not having effect of reviving marriage contract. Estate of Walsh v. C.I.R., Tax Ct.1957, 28 T.C. 1274.

Petitioner, who was separated from his wife under decree of separation a mensa et thoro in 1951, was not entitled in 1951 to exemption for wife under § 25(b)(1)(A) [I.R.C.1939 (now this section) ], or for deduction for medical expense paid for her under § 23(x) [I.R.C.1939 (now § 213 of this title) ], since nature of action in State where obtained was that of limited divorce, under which husband was not liable for wife's debts, and Congress intended to make limited divorce suffice to render parties unmarried for purpose of tax statute. Garsaud v. C.I.R., Tax Ct.1957, 28 T.C. 1086.

5. Dependents--Generally

See, also, Notes of Decisions under section 152 of this title.

Taxpayer was not entitled to claim his stepdaughter as dependent in substituted income tax return prepared by Internal Revenue Service (IRS), absent showing that another taxpayer could not have claimed her as dependent or that deduction would not have been disallowed under multiple support agreement provision. 26 U.S.C.A. §§§§ 151(c), 152(c). Maxwell v. U.S., N.D.Ga.2000, 127 F.Supp.2d 1358.

Taxpayer's submission of affidavit, stating that he did not know his son's taxpayer identification number (TIN) despite requesting that number from son, did not excuse taxpayer's failure to comply with statute requiring TIN to be reported for any individual for whom income tax exemption is claimed. Furlow v. U.S., D.Md.1999, 55 F.Supp.2d 360, reconsideration denied.

6. ---- Gross income

Petitioners were not entitled to dependency exemption deductions for 2 grandsons, for whom they provided total support of $1,000 each in taxable year, since each grandson had gross income of over former exemption amount of $600 and language in Internal Revenue Service instruction booklet accompanying return, on which they relied, that if a child was student, $600 limitation did not apply, did not support their position. Bunn v. Commissioner of Internal Revenue, U.S.Tax Ct.1970, 55 T.C. 271.

Petitioner, whose daughter had won $750 bond at church bazaar and had other income of $200, could not claim her as dependent under § 25(b)(1)(D) [I.R.C.1939 (now this section) ], as her income was in excess of $600 [former exemption amount]. Solomon v. C. I. R., Tax Ct.1956, 25 T.C. 936.

No exemption for a dependent is proper where it does not appear that the gross income of the alleged dependent was less than former exemption amount of $500 or that she received more than one-half of her support from the taxpayer. Hahn v. C. I. R., Tax Ct.1954, 22 T.C. 212, petition dismissed 216 F.2d 954.

Where taxpayer claimed a dependency credit for his mother who had rent and other income substantially in excess of the former $500 gross income limitation amount on dependents, under § 23 [I.R.C.1939] such items as taxes, maintenance, and the allowance for depreciation are deductions from gross income in determining statutory net income and not from total or gross receipts in determining statutory gross income, and the gross income of taxpayer's mother being more than $500, taxpayer is not entitled, under this section, to the dependency credit claimed. Gooch v. C.I.R., Tax Ct.1954, 21 T.C. 481.

7. ---- Joint returns

Income tax exemption was properly disallowed for son who was over 19 years old, earned more than $750 and was not student, and was properly disallowed for daughter-in-law where she filed joint return with the son. White v. C. I. R., D.C.Colo.1982, 537 F.Supp. 679.

Where taxpayers, who claimed dependency exemptions for son and daughter-in-law in 1975, provided over half support for daughter-in-law, who had no income; and daughter-in-law signed joint return with husband claiming refund for tax withheld from husband's reported earnings, although total income of couple did not necessitate filing of return and no tax liability would have existed for either if they had filed separately, Tax Court determined that taxpayers were entitled to dependency exemption for daughter-in-law, since joint return filed by their son and daughter-in-law constituted claim for refund under Rev.Rul. 54-567, 1954-2 C.B. 108, and Rev.Rul. 65-34, 1965-1 C.B. 86, which Tax Court approved. Martino v. Commissioner of Internal Revenue, U.S.Tax Ct.1978, 71 T.C. 456, acq.,.

8. ---- Students

Taxpayer was not entitled to dependency exemption under this section for 21- year-old son, on record showing that son was not a student and did not receive over half his support from taxpayer. Sibla v. Commissioner of Internal Revenue, U.S.Tax Ct.1977, 68 T.C. 422, nonacq.,, affirmed 611 F.2d 1260.

9. ---- Support payments

See Notes of Decisions under section 152 of this title.

10. Head of household

Where no one qualified as dependency exemption of unmarried taxpayer, taxpayer was not entitled to compute his income tax as head of household. Scarangella v. C.I.R., C.A.3 1969, 418 F.2d 228.

A grandfather, providing food, lodging, schooling, clothing, medical care and weekly allowance for one of his daughter's two infant sons after change of such son's name to that of grandfather pursuant to agreement between daughter and grandfather, who lived in house rented by him with daughter, her husband and two sons, was entitled to credit for former exemption amount of $400 for such grandson as infant dependent, but not to personal exemption of $2,500 as head of family, in computing his income tax, where daughter and her husband had abundant means to support themselves and sons, for whom they claimed credit in their tax return. Ellis v. C.I.R., C.C.A.5 (La.) 1940, 110 F.2d 954.

26 U.S.C.A. § 151

26 USCA § 151

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