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Full text of "Statistics of income"

BOSTON PUBLIC LIBRARY 



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STATrSTICS OF INCOME . . . 1958 



Individual 

INCOME TAX 
RETURNS 



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for 1958 






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U. S. TREASURY DEPARTMENT • INTERNAL REVENUE SERVICE 



Statistics of Income 



1958 



Individual 

INCOME TAX 
RETURNS 



for 1958 






Prepared under the direction of the 
Commissioner oj Internal Revenue 
by the Statistics Division 



U. S. TREASURY DEPARTMENT 



Internal Revenue Service • Publication No. 79 (9-60) 



Boston Public Library 
Superintendent Of Docuinents 

NOV] 5 IS HO 
DEPOSITORY 



UNITED STATKS 

GOVKKNiMKNT PHINTING OFFICE 

WASHINGTON : 1960 



¥ov sale by the Superintendent of Documents, U.S. Government Printinp; Office, Washington 25, D.C. - Price 75 cents (paper cover) 



LETTER OF TRANSMITTAL 



Treasury Department, 
Office of Commissioner of Internal Revenue, 

Washington, D. C, August 25, 1960. 

Sir: I am submitting this report, Stat ist ics of Income— 1958, 
Individual Income Tax Returns, under the provisions of section 6108 of 
the Internal Revenue Code of 1954-, which requires preparation and pub- 
lication annually of statistics reasonably available with respect to 
the operation of income tax laws. These statistics relate to individual 
income tax returns. Forms 104-0 and 104-OA, for the income year 1958, 
which were filed primarily during the calendar year 1959. 

The tabulations show classifications of taxpayers and of income, 
deductions, and exemptions. Special emphasis has been given to itemized 
deductions and also to Form 1040A returns with the extended income range 
covering earned income under $10,000. Sources of income and other data 
are shown by size of adjusted gross income. Also, there is information 
relative to taxable income, types of taxes, tax credits, tax withheld, 
and taxpayments . The major sources of income are presented for each 
State and for the two Standard Metropolitan Areas of Detroit and 
Pittsburgh. 

Respectfully, 



Dana Latham, 
Commissioner of Internal Revenue. 

Honorable Robert B. Anderson, 
Secretary of the Treasury . 



CONTENTS 

INDIVIDUAL INCOME TAX RETURNS 

Page 

Number of returns, income, and taxes 3 

Dividends 3 

Excludable sick pay 5 

Capital gain and losses 5 

Itemized nonbusiness deductions 6 

Contr ibut ions 6 

Medical deduction and expense 7 

Total itemized deductions 7 

Marital status of taxpayer 8 

Exempt ions 8 

Form 1040A, Individual Income Tax Returns 10 

Sole Proprietorships 12 

Sources of data and description of sample 14 

Sources of data 14 

Description of sample 15 

Explanation of classifications and terms 17 

Classifications 17 

Sources comprising adjusted gross income 18 

Itemized nonbusiness deductions 21 

Exempt ions 22 

Measures of individual income 22 

Tax items 23 

Basic tables, 1958: 

1. Number of returns, adjusted gross Income, taxable income, and income tax, 

by adjusted gross income classes and classes cumulated 27 

2. Sources of income and loss by returns with standard or itemized deduc- 

t ions 28 

'3. Sources of income and loss and nonbusiness deductions, by adjusted gross 

income classes 29 

4. Sources of income and loss, exemptions, taxable income, and tax items — 

all returns, joint returns, and returns of single persons not head of 
household or surviving spouse, by adjusted gross income classes 30 

5. Returns with itemized deductions — adjusted gross income, itemized deduc- 

tions, exemptions, taxable income, and tax items, by adjusted gross 
income classes 42 

6. Number of returns for selected sources of income or loss by size of 

source 4,4 

7. Number of returns for specified nonbusiness deductions by size of deduc- 

tion 48 

8. Returns with taxable income — taxable income, income tax, and tax credits, 

by taxable income classes for applicable tax rates 50 

9. Returns with income tax — adjusted gross income, taxable income, income 

tax, average tax, and effective tax rate, by adjusted gross income 
classes and types of income tax 52 

10. Adjusted gross income, exemptions, taxable income, and income tax — all 

returns, returns with standard deduction, and returns with itemized 
deductions, by adjusted gross income classes and by marital status of 
taxpayer 53 

11. Number of returns by adjusted gross income classes, by total number of 

exemptions, and by marital status of taxpayer 59 

12. Capital gains and losses, short- and long-term, and capital loss carry- 

over, by adjusted gross income classes 62 

13. Returns with self -employment tax — adjusted gross income, income tax, and 

self-employment tax, by adjusted gross income classes 64 

14. Returns with self-employment tax — adjusted gross income and self-employ- 

ment tax, by States and Territories 65 

15. Selected sources of income, adjusted gross income, taxable income, and 

income tax, by States and Territories 66 

16. Adjusted gross income and income tax, by adjusted gross income classes 

and by States and Territories 67 



VI CONTENTS 

Historical tables, 1949-1958: Page 

17. Number of retiirns by major characteristics, adjusted gross income and 

deficit, taxable income, and tax 72 

18. Returns with income tax — number, adjusted gross income, and average tax, 

by adjusted gross income classes 73 

19 . Sources of income by type 7,4 

20. Itemized deductions on returns with adjusted gross income, by type 74 

21. Selected sources of income by adjusted gross income classes 75 

22. Niimber of returns, adjusted gross income, and income tax, by States and 

Territories 7g 

SYNOPSIS OF LAWS 

A. Requirement for filing individual income tax returns, exemption allowances, 

and minimum and maximum tax rates, 1949-58 83 

B. Requirement for filing the self -employment tax schedule and self -employment 

tax rates, 1951-58 33 

FACSIMILES OF INDIVIDUAL INCOME TAX RETURNS 

Form 1040, Individual Income Tax Retiirn 87 

Schedule C IO7 

Schedule D Ill 

Schedule. F II3 

Form 1040A, Individual Income Tax Return 119 

INDEX 
Alphabetical index 12^; 



Individual 

Income Tax 

Returns 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



statistics presented in this report were compiled 
from a sample representing all individual income tax 
returns filed for the income year 1958. The number 
of returns for 1958 was 59.1 million, about lAO 
thousand fewer than for the previous year. This 
decrease in the number of returns reflects the eco- 
nomic recession of 1957-58 and the accompanying drop 
in employment . 

There were a few changes in the tax laws resulting 
from the "Technical Amendments Act of 1958" and the 
"Small Business Tax Revision Act of 1958" which 
affect the comparability of the detailed statistics 
contained in this report with similar data for 1957. 
These changes relate to: (1) Liberalization of 
the medical deduction for disabled persons aged 65 
and over, (2) Additional first year depreciation, 
(3) Uninsured casualty and theft losses of business 
property and capital assets held more than 6 months 
for the production of income, (4) Stockholders share 
of income from a small business corporation that 
elected not to be taxed as a corporation, and (5) 
Allowance of exemption for an alien, adopted child 
living with a United States citizen residing abroad. 
These changes are noted in the text description of 
the item affected. 

No revisions of data published in the Preliminary 
Report for 1958 were found necessary in compiling 
the tables for this report. 



NUMBER OF RETURNS, INCOME, AND TAXES 

Of the 59.1 million individual income tax returns 
for 1958,45.7 million were taxable and 13. <+ million 
nontaxable. Compared with the previous year, the 
number of taxable returns declined by 1.2 million, 
while the number of nontaxable returns increased 
nearly one-half million. 

Even though there were fewer returns for 1958, 
adjusted gross income increased to a new high of 
-.2 billion, about $83'4 million above that for 



T«ble A.— NUMBER OF RETURNS, INCOME, AND TAXES; 1958 AND 1957 



Number of returns, total 

Taxable 

Nontaxable 

Adjusted gross income (less deficit) 
Sources of income; 

Salaries and wages 

Dividends 

Interest 

Business or profession 

Partnership 

Sales of capital assets 

Rents and royalties 

Other 

Income tax after credits 

Self-employment tax 



59,035,182 
45,652,13* 
13,433,048 



59,825,121 
46,865,315 
12,959,806 



-739,939 

-1,213,181 

■1-473,242 



281,154 

227,551 
8,741 
3,659 
20,674 
9,232 
4,330 



280,321 

228,077 
9,124 
3,319 
20,339 
9,359 



1957. However, not every source showed a rise over 
the previous year. Salaries and wages, dividends, 
partnership profits, and rents and royalties de- 
clined, while interest, business profit, and sales 
of capital assets, all showed a rise for 1958. The 
most noticeable increase occurred in gain from sales 
of capital assets with a net increase over 1957 of 
$8-44 million. Salaries and wages after excludable 
sick pay were $526 million less than for 1957. 

Taxable income of $14-9.3 billion was slightly 
below the previous year and, correspondingly, the 
income tax after credits of $34.3 billion on the 1958 
returns was somewhat below the previous year's income 
tax. The self-employment tax of $589 million was 
$8 million higher than the 1957 self-employment tax, 
reflecting the increased business profits for the 
current year. 

Changes between the two years, 1958 and 1957, for 
the most significant items are presented in the text 
table A. 

Chart 1 gives the components of adjusted gross 
income for 1958, with salaries and wages forming 81 
percent, business profit 7 percent, and partnership 
profit and dividend income each 3 percent, of the 
total . 



CliatI 1. COMPONENTS OF ADIUSTED GROSS INCOME, 1958 



Poftnership Prol.l 




DIVIDENDS 

Domestic sind foreign dividends received during 
the income year 1958 by individuals filing Form 1040 
were obtained from data in Schedule A, Income from 
Dividends. Dividend receipts totaled $9.1 billion 
which was $374.3 million below total receipts for 
the previous year. At least some of this decrease 
can be attributed to the more liberal use of the 
1040A return. For the first time, this return could 
be used by wage earners with adjusted gross income 
of $5,000 under $10,000, and the maximum amount of 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 







Tal.li- 1).- 


-nlVIIlKNDS KLKilliLK \ 


>^D INKI.KIllil.K FOR EXCLDSION AND DIVIDENDS ELKilliI.E FDR T\\ CHEDIT. BY ADJUSTF.D C 


KOSS INCOME ('L \S.SE.S 








Dividends in adjusted 
gross income 


Domestic and foreign dividends received 


Dividend exclusions 
from gross income 


Dividends eligible 
for tax credit 


Tax credit for 
dividends received 


Adjusted gross income classes 


Number of 


Amount 


Total 


Not eligible for 
exclusions 


Eligible for 
exclusions 


Number of 


Amount 
f Thoit^ani! 


Number of 
retum.-- 


Amount 


Number of 


Amount 

•loll,,,) 




Number of 


Amount 


Number of 


Amount 


Number of 


Amount 




(1) 


(21 


(3) 


(4) 


(5) 


(6) 


(7) 


(3) 


(9) 


(10) 


(U) 


(12) 


(13) 


(14) 


Taxable returns: 


26,051 
47,512 
62,358 
85,304 

106,580 
124,915 
121,591 
151,309 
144,876 
310,608 
303,775 
262,399 
241,159 
199,831 
634,429 
285,009 
154,483 
258,686 
79,376 
12,733 
3,641 
3,788 
513 
227 


10,276 
23,489 
31,324 
54,673 
66,319 
90,672 
96,230 
116,596 
103,279 
221,659 
246,132 
228,591 
215,540 
185,730 
894,658 
675,706 
533,476 
1,486.956 
1,322,213 

499,127 
247,441 
483,120 
170,958 
252,722 


27,743 
54,695 
74,344 
100,358 
^125,682 
145,992 
150,628 
192,124 
182,025 

'397,*173 

402,342 

350,894 

313,739 

260,781 

787,^13 

321,414 

167,528 

272,309 

80,701 

12,810 

3,643 

3,792 

515 

227 


''ll,586 

26,016 

34,645 

59,450 

72,^49 

93,401 

104,119 

126, 592 

112,970 

■■ 244,043 

269,377 

249,820 

235,295 

202,563 

V49)'oi7 

699,533 

546,282 

1,508,743 

1,328,965 

'560,2^9 

247,756 

483,445 

171,000 

252,739 


(M 
3,404 
7,494 
5,798 
8,893 
12,674 
8,903 
16,718 
16,035 
29,790 
29,208 
25,347 
21,231 
14,328 
57,327 
30,311 
19,408 
42,211 
19,827 
4,101 
1,389 
1,631 
242 
106 


(') 

351 
1,372 
1,006 
651 
1,098 
2,074 
2,392 
1,478 
5,013 
3,277 
6,150 
3,458 
1,281 
16,081 
11,189 
10,443 
33,237 
23,103 
9,761 
6,022 
10,867 
3,134 
3,709 


27,395 

53,335 

70,249 

^97,618 

"■ 121,943 

137,086 

145,142 

183,904 

173,823 

^383'; 15 5 

387,169 

340,270 

303,811 

256, ■342 

775,331 

316,510 

165,503 

269,830 

30,318 

.1 -,■ , 

12,737 

3,633 

3,731 

512 

227 


11,442 
25,665 
32,773 
53,444 
'71,«3 
97,303 
102,045 
124,200 
111,492 
2'39,'035 
266,100 
243,670 
231,837 
201,282 
~93"5,'9"66 
683,344 
535,839 
1,475,506 
1,300,857 

"490,478 
241,734 
472, 578 
167,366 
249,030 


27,395 
53,335 
70,249 
97,280 
121,266 
136,405 
144,794 
133,227 
173,823 
383,155 
385,138 
333,916 
303,473 
254,649 
772,365 
316,336 
165,399 
269,794 
30,312 
12,787 
3,633 
3,781 
512 
227 


1,310 
2,527 
3,321 
4,777 
6,330 
7,729 
7,839 
9,996 
9,691 
22,339 
23,245 
21,229 
19,755 
16,833 
54,389 
23,827 
12,806 
21,737 
6,752 

1,112 
315 
325 
42 
17 


25,702 
45,318 
57,922 
82,563 
102,505 
115,333 
116,109 
142,219 
134,643 
292,140 
291,227 
249,741 
229,202 
192,672 
614,916 
273,335 
151,518 
255,652 
78,908 
12,700 
3,631 
3,776 
510 
227 


10,132 
23,138 
29,452 
53,667_ 
65,668 
39,574 
94,156 
114,204 
101,801 

216,646 
242,855 
222,441 
212,082 
134,449 
873, 577 
664,517 
523,033 
1,453,719 
1,294,105 
489,366 
241,419 
472,253 
167,324 
249,013- 


19,218 
33,058 
46,302 
67,915 
81,293- 
90,165 
92,866 
103,630 
107,752 
225,613 
233,755 
201,236 
182,467 
156,780 
529,113 
253,749 
141,514 
246,259 
77,970 
12,606 
3,621 
3,770 
503 
227 


354; 
386 
687 
1,231 
1,742 
2,435 
2,706 
3,181 
3.193 
7,199 
7,429 
7,485 
7,484 
6,321 

31,533 
24,421 
19,231 
54,806 
47,986 
17,646 
3,449 
15,956 
5,154 
6,972 


n 
$1 

$2 

$2 
$3 
*3 

$4 

«.5 
$6 
$7 
$8 
$9 

$1 
$1 
$2 
$2 
$5 
$1 
$1 
$2 
$5t 


000 under $1 
500 under $2 
000 under $2 
500 under $3 
000 under $3 
500 under $4 
000 under $4 
500 under $5 
000 under $6 
000 under $7 
000 under $8 
000 under $9 
000 under $1 
,000 under $ 
,000 under $ 
,000 under $ 
,000 under $ 
,000 under $ 
XD.OOO under 
)0,000 under 
»,000 under 
0,000 under ! 


500 

000 

500 

000 

500 

000 

500 

000 

000 

000 

ooo 

000 

,000 

5,000 

0,000 

5,000 

10,000 

00,000 

150,000 

200,000 

i500,000 

.1,000,000.... 






Total taxable returns 


3,626,655 


8,256,887 


4,429,072 


8,535,280 


378,739 


162,796 


4,307,724 


8,372,484 


4,298,751 


278, 393 


3,477,969 


3,094,091 


2,916,437 


233,757 


Nont 
No 

Unc 


utable returns: 
adjusted gross income 


27,788 
54,292 
76,050 
116,923 
98,143 
75,091 
61,831 
28,050 
24,541 
15,206 
10,253 
20,194 


37,882 
13,207 
23,580 
53,133 
61,970 
52,738 
55,709 
29,979 
32,592 
16,072 
10,969 
95,844 


33,384 
68,625 
87,413 
136,702 
110,102 
85,679 
66,629 
33,180 
26,24S 
15,552 
11,968 
21,259 


39,715 
16,274 
27,749 
60,449 
68,112 
57,784 

59,740 
32,035 
34,341 
17,280 
11,721 
97,286 


5,788 
6,874 
10,610 
10,222 
8,172 
9,207 
3,772 
3,422 

Y 7,109 


476 

983 
2,114 
2,050 
1,453 
1,667 

780 
316 

4,130 


30,525 

63,121 

79,529 

131.243 

105,663 

80,386 

64,211 

31,807 

f 24,880 

J 15,552 

1 10,948 

20,430 


39,239 
15,291 
25,635 
58, 399 
66,659 
56,117 

58,960 
31,719 
32,798 
17,039 
11,449 
95,212 


30,182 
61,768 
77,836 
127,854 
104,308 
79,867 
63,534 
31,807 
24,880 
15,552 
10,943 
20,430 


1,833 
3,067 
4,169 
7,316 
6,142 
5,046 
4,031 
2,056 
1,749 
1,208 
752 
1,442 


23,900 
43,449 
67,151 
110,429 
93,027 
69,619 

59,076 
26,676 
23,173 
15,204 
9,232 
19,016 


37,406 
12,224 
21,466 
51,083 
60,517 
51,071 
54,929 
29,663 
31,049 
15,831 
10,697 
93,770 


5,764 
21,044 
21,535 
21,717 
7,838 
9,835 
6,823 
(M 
4,422 


- 








$1,000 under tl 
$1,500 under $2 
$2,000 under $2 
$2,500 under $3 
$3,000 under $3 
$3,500 under $4 
$4,000 under $4 


500 


31 
312 
477 
743 
202 
347 
206 


500 


500 


500 


$5 






152 




Total nontaxable returns... 


603,362 


483,675 


696,741 


522,486 


65,176 


13,969 


658,795 


508,517 


648,966 


38,311 


564,952 


469,706 


103,124 


2,616 


Grand total 


4,235,017 


8,740,562 


5,125,811 


9,057,766 


443,915 


176,765 


4,966,519 


8,881,001 


4,947,717 


317,204 


4,042,921 


8,563,797 


3,019,561 


286,373 


Retu 
Retu 
Retu 


■ns under $5,C 
■ns $5,000 unc 
■ns $10,000 o 


no 

er $10,000... 


1,459,164 
1,339,538 
1,436,315 


980,689 
1,141,067 
6,618,806 


1,729,073 
1,742,727 
1,654,013 


1,071,628 
1,245,722 
6,740,416 


144,462 
121,271 
178,132 


22,961 
19,984 
133,320 


1,648,860 
1,687,857 
1,629,802 


1,043,667 
1,225,738 
6,606,596 


1,636,310 
1,632,441 
1,628,966 


90,939 
104,655 
121,610 


1,368,750 
1,270,712 
1,403,459 


957,728 
1,121,083 
6,484,986 


745,951 
1,003,921 
1,269,639 


18,149 
36,057 
232,167 



showing separately. However, the grand 



eludes data dele 



other income, which included interest and dividends, 
was raised from $100 to $200 for all 10<40A returns. 
These changes allowed more taxpayers with larger 
amounts of dividend income in 1958 to file the lO^OA 
return. Since dividend income on Form lOAOk is not 
identified as such, it is not included in the divi- 
dend statistics. Taxpayers affected by these changes 
had filed on Form lOA-O for 1957 and the dividends 
reported were included in the dividend data for 1957. 

Of the total dividends received, $317.2 million 
were excluded from adjusted gross incomes reported 
on Form 1040, under the provision that the first $50 
of domestic dividends qualifying for the exclusion 
be eliminated from gross income. After this exclu- 
sion, $8.7 billion foreign and domestic dividends 
remained to be included in adjusted gross income 
for 1958. 

Text table B presents the details reported by the 
taxpayer in Schedule A of the Form 10<+0. This table 
shows, by adjusted gross income classes, dividends 
in adjusted gross income, total foreign and domestic 
dividends received, dividends eligible and not eli- 
gible for exclusion, exclusions, dividends eligible 
for tax credit, and the frequency of returns with 
those items. 

Dividends not eligible for exclusion were those 
received from life or mutual insurance companies. 



China Trade Act corporations, tax-exempt organiza- 
tions, exempt farmers' cooperatives, certain corpo- 
rations doing business in possessions of the United 
States, and regulated investment companies unless 
specifically designated by the company to be taken 
into account for exclusion and tax credit. The so- 
called dividends from mutual and cooperative banks 
and savings and loan or building and loan associations 
were reported as interest for income tax purposes 
and therefore not eligible. 

Dividends eligible for the exclusion were those 
from fully taxable qualifying domestic corporations, 
such as the regular industrial, mercantile, and com- 
mercial corporations, whether received directly or 
through shares of fiduciary income or untaxed part- 
nership profit. The exclusion applied to dividends 
on nonwithdrawal capital stock of building and loan 
associations or similar organizations, and the true 
dividends from regulated investment companies. Also 
eligible for the dividend exclusion were the distri- 
butions of entrepreneurial and partnership enter- 
prises that elected to be taxed as a corporation. 

Exclusion of the first $50 of qualifying dividends 
was allowed in determining the amount of dividends 
to be included in gross income. If husband and wife 
filed jointly, each was entitled to apply the $50 
exclusion against his respective qualifying divi- 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



dends . When a taxpayer received less than $50 of 
qualifying dividends, the exclusion equaled the 
amount received. 

Dividends eligible for tax credit were the quali- 
fying dividends in adjusted gross income, that is, 
dividends eligible for exclusion less the applicable 
dividend exclusion. 

Less than one-half million returns showed approx- 
imately $177 million of foreign and other dividends 
not eligible for exclusion or for tax credit. Divi- 
dends eligible for exclusion were reported on nearly 
5 million returns and practically all of them showed 
that the exclusion was claimed. 

Four million returns had dividends eligible for 
tax credit and a tax credit for dividends received 
was claimed on 3 million returns, practically all of 
which were taxable returns. 



tions on the exclusion of benefits attributable to 
the employer's contributions. The employer-provided 
wage benefits were excludable at a rate not exceed- 
ing $100 per week. 

Excludable sick pay, claimed only on Form lO'+O 
returns, amounted to $622.7 million for 1958, which 
was $'+8.6 million above a similar deduction for 1957. 
The sick pay deduction for 1958 was 6 percent of the 
$10.3 billion wages from which it was deducted. 
Sick pay was reported on 1.5 million returns repre- 
senting over K percent of the Form 1040 returns with 
salaries and wages. 

Text table C, for 1958 returns showing excludable 
sick pay, gives the number of returns with this ex- 
clusion, the amount of salaries and wages remaining 
after the exclusion, and the excludable sick pay. 



CAPITAL GAINS AND LOSSES 



EXCLUDABLE SICK PAY 

The Internal Revenue Code allows individuals to 
exclude from income amounts received under a wage 
continuation plan for the period of absence on 
account of sickness or personal injury. If both 
employer and employee contributed to the plan, bene- 
fits attributable to the employee's contributions 
were excluded without limit, but there were limita- 

Tabls- C— EXCLUDiBLE SICK P4V BY ADJUSTED GROSS INCOME CLASSES 



Taxable returns: 

$600 under $1,000 

$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 

$2,500 under $3,000. 
$3,000 under $3,500. 
$3,500 under $4,000. 
$4,000 under $4,500. 



$10,00C. 



$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
Jl50,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total taxable 



Under $t00 

$600 under $1,000 

$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500., 

$2,500 under $3,000. 
$3,000 under $3,500. 
$3,500 under $4,000. 
$4,000 under $4,500. 
?4,500 under $5,000. 



,000 

Total nontaxable returns. 



Grand total. 



Returns with excludable 



5,415 



9,909 
8,591 



16,436 

23,832 

72,779 

132,884 

242,653 

311,482 

411,935 

519,499 

1,198,987 

1,145,451 

1,083,771 

940,676 

853,876 

1,509,630 
351,215 
166,792 
303,296 
147,076 

28,983 
11,546 
13,945 
2,701 
330 



l,895,o43 
5,248,576 
2,536,325 



15,437 

22,924 
26,718 
25,953 
36,678 
37,913 
75,714 
65,682 
61,299 
37,875 
32,910 

56,371 
12,108 
5,382 
9,641 

3,431 
419 



10,956 
10, 6U 
7,185 
8,865 
13,407 



259,127 
275,619 
87,951 



Capital gains of $4.9 billion were reported in 
adjusted gross income for 1958, on 3.5 million re- 
turns. However, only 50 percent of net long-term 
gain in excess of net short-term loss was taken into 
account for this purpose. The gain in adjusted gross 
income was 18 percent above that for 1957. 

A capital loss deduction was taken on 921 thousand 
returns in computing adjusted gross income for 1958. 
Both the entire capital loss of $2 billion before 
statutory limitation and the deduction after limi- 
tation of $549 million were somewhat less than last 
year's losses. More than 27 percent of the entire 
capital loss before limitation was used in computing 
adjusted gross income for 1958. 

Comparison of capital gain and loss data for 1958 
and 1957 is shown in text table D below. 

Table D.— C\PITAL GAINS AND LOSSES: 1956 AND 1957 

(Taxable and nontaxable returns] 





Capital gains in 
adjusted groSG income 


Capital losse.-i 




Number of 


Amount 


Number of 


Amount (Thousand dol'ars) 




Before 

limitation 


After 

limitation 




(1) 


(2) 


(3) 


(4) 


(5) 




3,4o9,064 
2,936,564 


4,879,114 
4,128,228 


920,578 
1,038,203 


1,997,682 
2,036,866 


549,110 




W.2,695 






DiTerence 


+532,500 


+750, 83t 


-117,630 


-39,184 


-93,585 







:xt for "Description of Sample. " 
,e variability is too large to w 
eludes data deleted for this re; 



Analysis of the returns with a capital loss used 
in computing adjusted gross income for 1958, shown 
in text table E, gives information as to the amount 
of capital loss available for carryover into the 
next year. Returns with a capital loss deduction 
are presented in two categories: (1) returns with 
capital loss completely deducted, that is, the cap- 
ital loss was small enough to be within the statu- 
tory limitation, and (2) returns with capital loss 
partially deducted, that is, the capital loss was 
so large that the deduction was limited to an amount 
equal to the smaller of (a) taxable income (adjusted 
gross income if tax table was used) computed with- 
out regard to capital gains and losses or personal 
exemptions, or (b) $1,000. The unused capital loss 
resulting from the limitation gives an indication 
of the amount of capital loss which can be carried 
into the subsequent year as a short-term capital 
loss. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 





Number of 


Net loss 


Approximate 


Returns with- 


Before 
limitation 


After 
limitation 


carryover 
into 1959 




(1) 


(2) 


(3) 


(4) 




5t>i,703 
89,866 


(Thousand dollars) 


Capital loss completely deducted: 


176,166 
47,068 


176,165 
47,068 




With carryover from 1953-57 


- 




59.; , 569 


223,234 


223,234 








Capital loss partially deducted: 


193,524 
132,485 


755, X8 
1,019,100 


193,441 
132,435 


5cl,907 


With carryover from 1953-57 


886,665 




326,009 


1,774,448 


325, 87e 


1,448,572 






Rl- turns with capital loss 


920,578 


1,997,682 


549,110 


1,448,572 



In the first category, returns with capital loss 
completely deducted, there were 594,569 returns 
which had $223.2 million of capital loss before 
statutory limitation. On each of these returns the 
loss was small enough to be within the limitation, 
and therefore, was deducted in full even though some 
of these returns had a capital loss carryover from 
prior years . 

In the second category, returns with capital loss 
partially deducted, there were 326,009 returns with 
capital loss before limitation of $1.8 billion. 
The capital loss on each of these returns was large 
enough that the statutory limitation was effective 
and the deductible loss was limited to $325.9 mil- 
lion, or 18 percent of the entire loss reported on 
these returns . 

Among these returns with capital loss partially 
deducted, there were 193,524- returns that had no 
capital loss carryover from 1953-57. Therefore, the 
capital loss before limitation of $755.3 million 
was the result of current year sales. Since the 
statutory limitation allowed a deduction of only 
$193.4 million, the remaining disallowed loss of 
$561.9 million is a capital loss carryover to 1959. 

Each of the remaining 132,485 returns with cap- 
ital loss partially deducted had a capital loss 
carryover from 1953-57. The entire loss before 
limitation reported on these returns amounted to $1 
billion of which only $132.4 million could be used 
as a deduction because of the statutory limitation. 
The disallowed capital loss of $886.7 million gives 
an approximation of the capital loss to be carried 
into 1959 from these returns. It is slightly over- 
stated because the portion of a carryover loss 
arising in 1953 that was not absorbed by capital 
gains and the $1,000 deduction in the current ;y'^ar 
cannot be carried into 1959, as the 5-year carry- 
over period has expired. It was not possible to 
determine from the return schedule the amount of 
1953 capital loss carryover which has expired. 

The approximate capital loss carryover into 1959 
consists of the unused loss of $561.9 million on re- 
turns with no carryover from 1953-57 and the $886.7 
million excess capital loss on returns with carry- 
over from prior years, making a total of $1.4 billion. 



ITEMIZED NONBUSINESS DEDUCTIONS 

There were 20.8 million returns on which non- 
business deductions of $27.5 billion were itemized 
and subtracted from adjusted gross income. The 
amount of total deductions represented 18.9 percent 
of the adjusted gross income reported on these re- 



turns. Contributions of $5.7 billion, interest paid 
of $6.3 billion, taxes of $7.5 billion, and medical 
deductions of $4.3 billion were higher than for any 
previous year for which such data were tabulated. 
Total itemized deductions increased $1.8 billion 
over itemized deductions for 1957. Ninety-seven 
percent of the 1958 returns with itemized deductions 
showed taxes, 96 percent contributions, 76 percent 
interest paid, and 59 percent a medical expense 
deduction. Of the 20.8 million itemized deduction 
returns, 19 million were taxable. 

Chart 2 shows a comparison of itemized deductions 
for 1958 with those for 1956, the most recent year 
that detailed deductions were tabulated. 



Chart 2 -ITEMIZED NONBUSINESS DEDUCTIONS: I95G AND 1958 




I I I I I I 

i 10 15 20 25 30 



Contributions 

Ninety-six percent of the 20.8 million returns 
with itemized deductions for 1958 had a deduction 
for contributions. The contributions occurred on 
20 million returns and amounted to $5.7 billion. A 
description of allowable contributions is given 
among the itemized nonbusiness deductions later in 
this report. 

In general, contributions equaling 20 percent of 
adjusted gross income were allowed as a deduction. 
However, there was an additional allowance to the 
extent of 10 percent of adjusted gross income, if 
such contributions consisted of gifts to churches, 
tax-exempt educational institutions, tax-exempt 
hospitals, and organizations directly engaged in 
continuous medical research. Also, an unlimited 
deduction for contributions was allowed individuals 
who met specified conditions. 

Text table F shows, by adjusted gross income 
classes, the number of returns and the deduction 
for contributions, together with the returns that 
showed the deduction to be in excess of 20 percent 
of adjusted gross income. For 1958, there were 177 
thousand returns with charitable deduction exceed- 
ing 20 percent of adjusted gross income and the ex- 
cess contributions were approximately $138 million. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



These 177 thousand returns represented less than 1 
percent of the 20 million returns with a deduction 
for contributions. Fifty-four percent of the returns 
with excess contributions were taxable returns on 
which 76 percent of the excess contribution appeared. 

The deduction for contributions in excess of 20 
percent of adjusted gross income is not the total 
amount of contributions allowed as a deduction to 
the special organizations. In some cases the special 
contributions exceeded the 10 percent limitation 
described above and the excess could be included 
with the contributions to which the 20 percent 
limitation applied. In other cases where the total 
contributions were less than 20 percent of adjusted 
gross income, any contribution to these special 
organizations would not be reflected in the group 
tabulated as having a deduction in excess of 20 
percent of adjusted gross income. The tabulation 
denotes only that the total deduction for contribu- 
tions, without regard to type, was in excess of 20 
percent of adjusted gross income. 

Basic table 7 presents a frequency distribution of 
all returns with a deduction for contributions for 
1958, in which the combined taxable and nontaxable 
returns are cross classified by adjusted gross in- 
come classes and size of deduction for contributions. 





rabiD F.— DEDUCTIBLE rONTRIBl'TlONS IN EXCt 
INCOME BY ADJUSTED GKO> 


SS OF 20 PERCENT OF ADJUSTED GROSS 
S INCOME CLASSES 




Number of 

returns 

with 

deduction 

for 
contribu- 
tions 


Deduction 

for 
contribu- 
tions 


Returns with deduction 

for contributions 
exceeding 20 percent of 
adjusted gross income 


Adjusted gross income classes 


Number of 
returns 


Amount in 
excess of 
20 percent 




(1) 


(2) 


(3) 


(4) 


Taxable returns: 


58, a7 
206,584 
362,676 
541,702 

695,472 

905,199 

1,093,&15 

1,285,522 

1,440,071 

3,078,354 
2,530,482 
1,756,085 
1,203,373 
780,867 

1,473,232 
419,662 
210,280 
320,517 
86,284 

13,694 

3,743 

3,874 

520 

233 


4,046 
18,621 
41,005 
72,167 

103,003 
148,178 
188,521 
240,248 
280,948 

634,740 
596,236 
453,201 
346,873 
252,343 

608,465 
248,775 
160,936 
373,091 
254,318 
98,895 
47,933 
113,269 
43,612 
81,248 


6,136 
5,793 
7,998 

7,176 
7,186 
5,853 
7,923 
6,190 
7,918 
5,455 
3,788 

J 4,155 

5,490 
2,255 
1,869 
3,618 
2,801 

1,073 
433 

799 
168 
83 


(1) 


$1 
$1 
$2 
$2 
$3 
$3 
$4 
$4 
$5 
$6 
$7 
$8 
$9 
$1 
$1 
$2 
$2 
$5 

$1 
$1 
*2 
$5 
$1 


000 under $1,500 

500 under $2,000 

000 under $2,500 

500 under $3,000 

000 under $3,500 

500 under $4,000 

000 under $4,500 


437 
545 
679 

1,226 

1,463 

929 

638 

1,287 


000 under $6,000 

000 under $7,000 

000 under $8,000 

000 under $9,000 


2,321 
2,155 
1,195 

2,506 


),000 under $15,000 


3,575 










),000 under $100,000 

0,000 under $150,000 

0,000 under $200,000 

X),000 under $500,000 

0,000 under $1,000,000 


10,681 

7,936 
4,264 
15,481 
7,723 






Total taxable returns 


18,470,288 


5,410,672 


95,857 


104, o88 


Nont 


xable returns: 


17,496 
110,214 
176,470 
183,324 
213,684 

191,740 
155,593 
140,875 
101,692 
79,311 
119,666 


2,li>; 
10,389 
22,446 
25,230 
31,922 
31,646 
28,085 
29,500 
23,502 
18,003 
60,277 


•j,S43 
15,125 
18,881 
12,700 

7,21o 

5,343 
3,791 

>■ 10,344 




$6 
$1 


» under $1,000 

000 under $1,500 


1,520 
2,391 


$2 

$2 
$3 
$3 


000 under $2,500 

500 under $3,000 

000 under $3,500 


958 
1,145 

736 


$4 
$4 


000 under $4,500 


23,221 


$5 










Total nontaxable returns... 


1,490,065 


283, It^ 


80,743 


32,815 


Retu] 
Retuj 
Hetui 




19,960,353 


5,693,836 


176,600 








7,959,487 
9,464,724 
2,536,142 


1,319,624 
2,315,958 
2,058,254 


133,973 
23,748 
18,879 




ns $5,000 under $10,000 


9,061 







for "Description of Sample 
variability is too largeto 
udes data deleted for this 



showing separately. Howeve 



Medical Deduction and Expenses 

Of the 20.8 million returns with nonbusiness 
deductions itemized for 1958, 12.2 million had a 
deduction for medical and dental expenses . The de- 
duction amounted to $4-. 3 billion. This deduction is 
analyzed in text table G to show the amount claimed 
by taxpayers under 65 years of age and by those 65 
years or over, together with the total medical and 
dental expense including drugs in excess of 1 per- 
cent of adjusted gross income, reported by each age 
jroup . The age group 65 years or over includes data 
from joint returns of husbands and wives where only 
one spouse was 65 years or more as well as joint 
returns where both spouses were 65 or over, and re- 
turns of all other individuals 65 years or more. 
When either spouse was 65 or more years of age, the 
medical expenses for both husband and wife on the 
joint return were allowed as though both were 65 
years of age. The majority of returns with medical 
deduction fall in the age group under 65. 

A description of expenses considered for this de- 
duction, the limitations on the amount allowed as a 
deduction, and rules relating to taxpayers age 65 
or over are given under itemized nonbusiness deduc- 
tions later in this report. 

Table G shows that for persons in the age group 
under 65 years, the total medical expenses reported 
were $5.3 billion, averaging $4-93 per return. This 
age group, which could deduct only the medical 
expenses in excess of 3 percent of adjusted gross 
income, deducted $3. A billion. This deduction was 
about 6-4 percent of the total medical expenses 
incurred, but only 5 percent of the adjusted gross 
income reported by this group . 

Persons in the age group 65 or over claimed a 
medical deduction on 1.5 million returns, or 12 per- 
cent of the 12.2 million returns with a medical 
deduction. Total medical expenses of $926.'+ million 
were reported, with an average per return of $627. 
This group was allowed a more liberal deduction 
amounting to $900.9 million, or 97 percent of their 
total medical expenses. This deduction was nearly 
8 percent of their adjusted gross income, and re- 
flects the increase allowed disabled persons 65 
years or over who could deduct medical expenses to 
the extent of $15,000 per person, for 1958. 

Basic table 7 presents a frequency distribution of 
the number of itemized deduction returns with a 
medical deduction by adjusted gross income classes 
cross classified by the size of the medical deduc- 
tion. In this table, the taxable and nontaxable 
returns are tabulated together. More than 5,000 
returns had a medical deduction of $10,000 or more. 



Total Itemized Deductions 

A new table based on the total amount of deductions 
claimed was prepared from the returns with itemized 
deductions for 1958. Text table H gives a distri- 
bution of the number of returns with itemized deduc- 
tions by adjusted gross income classes and by size 
of total deductions. Of the 20.8 million itemized 
deduction returns, there were 9.6 million returns, 
or 4-6 percent of the total, that had itemized deduc- 
tions under $1,000. Less than 12 thousand returns 
showed total deductions of $30,000 or more. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 











Tnblo (7.— MKDICVL DEOI 


rrioN \m e 


<PENSE, B^ 


\DJl!STED OltnSS INCOME CUSSES 


AND BY AGE nROUPS 












Number of 
returns 

with 
medical 


Deduction 

for 

medical 

expense 


Under 65 years of age 


Age 65 ..-ears or over 




Number of 
returns 


Adjusted 
income 


Deduction 

for 

medical 

expense 


Medical expense reported 


Number of 


Adjusted 

gross 


Deduc tion 

for 

medical 

expense 


Medical expense reported 


Adjusted gross income classes 


Total 

(Th.ws»ncl 


Dl'Ugs in 
excess of 

lit of 
adjusted 

gross 


Other 

medical 

and dental 

expense 

CTftouMnrf 
,hUtr,) 


Total 


Drugs in 
excess of 

1* of 
adjusted 


Other 
medical 
and dental 
expense 




(1) 


(2) 


(3) 


(4) 


(5) 


(■'} 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


(14) 


Taxable returns: 


29,656 
129,446 
239,082 
373,197 
494,778 
635,408 
743,602 
365,873 
943,682 

1,953,010 

1,539,558 

991,603 

634,443 

409,956 

631,075 

162,982 

68,322 

88,222 

25,102 

4,896 

1,388 

1,474 

190 

79 


2,849 
21,577 
46,267 
85,429 
127,564 
170,242 
205,940 
257,430 
270,333 

579,625 

461,887 

308,551 

225,670 

160,393 

330,429 

123,056 

68,798 

117,877 

53,373 

9,865 

3,230 

3,955 

725 

332 


29,655 
128,425 
209,840 
328,754 
429,349 
543,452 
649,605 
770,947 
859,534 

1,324,310 

1,464,109 

939,362 

594,771 

332,338 

601,723 
122,110 
44,154 
43,337 
5,794 

392 

125 

82 

2 

1 


26,439 

163,159 

371,339 

743,862 

1,183,001 

1,766,414 

2,445,749 

3,278,139 

4,084,238 

10,001,805 
9,464,059 
7,022,446 
5,035,525 
3,620,300 

7,051,619 

2,081,596 

973,255 

1,406,531 
437,672 
68,359 
21,184 
21,542 
1,704 
1,126 


2,349 
21,434 
41,564 
75,456 
109,476 
141,869 
175,763 
218,824 
235,488 
521,684 
425,236 
279,458 
197,473 
140,089 

256,449 
83,269 
37,202 
56,518 
17,282 

1,752 

465 

355 

7 

10 


3,e,;5 
26,371 
52,679 
98,734 
144,905 
194,792 
249,044 
317,051 
357,903 

321,433 
709,918 
489,937 
348,459 
248,535 

478,444 
148 ,449 
65,617 
99,158 
30,341 

3,887 

1.125 

1,022 

58 

50 


788 
5,581 
11,459 
21,334 
29,140 
35,640 
45,999 
59,448 
65,540 
136,364 
110,'035 
71,055 
52,043 
31,865 

51,437 

11,019 

3,618 

3,225 

400 

43 

2 

3 


2,857 
20,790 
41,220 
77,400 
115,766 
159,152 
203,045 
257,503 
292,363 

585,059 
599,833 
418,922 
296,426 
216,770 

426,957 

137,430 

62,999 

95,933 

30,441 

3,844 

1,124 

1,019 

58 

50 


(') 
29,242 
44,433 
65,429 
91,955 
93,997 
95,926 
89,143 

128,700 
75,449 
52,241 
39,672 
27,068 

79,352 
40,872 
24,168 
44,885 
13,308 
4,004 
1,263 
1,392 
133 
78 


(M 

52,366 
100,559 
130,150 
299,059 
352,186 
407,352 
422,635 
705,399 
487,072 
390,483 
334,123 
256,646 

964,156 
704,562 
539,782 
1,542,461 
1,244,058 
477,806 
217,343 
394,925 
127,944 
146,542 


(M 
4,703 
8,963 
18,088 
28,373 
31,177 
33,606 
34,645 

57,942 
35,651 
29,093 
28,192 

20,309 

53,980 
39,787 
31 , 596 
51,359 
36,091 

3,113 

2,765 

3,601 

719 

322 


(M 
4,868 
9,293 
18,927 
29,764 
32,978 
40,214 
36,533 

59,762 
37,214 
30,676 

30,608 
20,500 

55,592 
40,300 
32,077 
62,419 
36,&i2 
8,255 
2,775 
3,642 
1,104 
441 


(M 

1,061 
1,996 
3,758 
5,696 
6,407 
5,940 
6,284 

8,635 
6,183 
3,286 
3,242 

1,790 

4,600 
2,162 
1,165 
1,142 
243 
36 

8 

5 




$1 
*1 
$2 

$2 

*3 
$3 
*i 
$4 

$5 
$6 
$7 
$8 
$9 

$1 
$1 
$2 
$2 
$5 

$1 
$1 
$2 
$5 
$1 


000 under $1 
500 under $2 
000 under $2 

500 under $3 
000 under $3 
500 under $4 
000 under $4 
500 under $5 

000 under $6 
000 under $7 
000 under $6 
000 under $9 
000 under $1 

,000 under $ 
,000 under $ 
,000 under $ 
,000 under $ 
,000 under $ 

XI.OOO under 
0,000 under 
0,000 under 
0,000 under 


500 

000 

500 

000 

500 

000 

500 

000 

000 

000 

000 

000 

,000 

5,000 

0,000 

5,000 

0,000 

00,000 

1150,000 

i200,000 

1500,000. . . . 
11,000,000. . 


(') 
3,807 
7,297 
15,169 
24,068 
26,571 
34,274 
30,299 
51,127 
31,031 
27,390 
27,366 
18,710 

60,992 
38,138 
30,912 
a, 277 
36,399 
8,230 
2,770 
3,634 
1,099 








Total taxable returns 


11,023,024 


3,636,405 


51974,233 


61,276,753 


3,052,037 


4,893,219 


746,148 


4,147,071 


1,(K8,791 


10,349,093 


584,358 


504,738 


63,644 


541,094 


Nont 
Un 


xable returns: 


13,023 
81,932 
142,555 
154,436 
179 ,469 

159,675 
125,390 
106,699 
75,960 
57,306 
91,950 


3,553 
21,903 
57,176 
76,557 
84,207 

74,001 
71,413 
64,350 
42,750 
37,160 
114,056 


6,21C 
55,902 
86,751 
75,346 
100,963 
85,829 
78,150 
77,733 
58,914 
46,366 
75,791 


2,385 
54,801 
110,289 
131,579 
224,899 
240,709 
253,456 
289,243 
249,498 
220,255 
463,552 


1,955 
14,887 
33,277 
28,385 
41,284 

36,202 
34,025 
34,753 
23,101 
25,117 
52,636 


2,033 
16,528 
36,530 
32,327 
48,017 
43,471 
41,615 
43,411 
35,577 
31,719 
66,605 


592 
3,527 
7,481 
6,929 
8,325 
5,581 
5,537 
7,997 
4,832 
3,933 
9,114 


1,346 
13,001 
29,099 
25,393 
39,692 
35,390 
35,078 
35,414 
30,745 
27,781 
57,491 


6,318 
16,080 
55,804 
78,590 
78,505 
72,846 
47,240 
28,965 
17,045 
10,940 
15,159 


2,892 
13,136 
74,201 
135,936 

176,627 

200,418 
151,967 
107,792 
71,957 
50,928 
121,198 


1,598 
7,021 
23,399 
43,172 
42,923 
37,799 
37,337 
29,597 
14,649 
12,043 
61,420 


1,603 
7,074 
24,141 
48,877 
43,674 

38,356 
38,182 
29,863 

14,985 
12,185 
52,734 


184 
749 
2,794 
7,796 
4,422 
5,098 
4,599 
3,050 
4,091 
1,434 
1,337 


1,419 
6,325 
21,347 
41,081 
39,252 
33,258 
33,583 
26,813 
10,894 
10,751 


under $1,0 
000 under $1 
500 under $2 
000 under $2 
500 under $3 
000 under $3 
500 under $4 
000 u-nder $4 
500 under $5 




$1 
$1 
$2 

$2 
*3 
$3 
$4 
$4 


500 

000 

50.0 

000 

500 

000 

500 

000 








Total nontaxable returns. 


1,188,450 


647,141 


750,.',55 


2,240,763 


330,633 


397,888 


55,953 


331,935 


427,995 


1,108,152 


315,508 


321,674 


35,554 


285,120 


Grand total 


12,211,474 


4,283,546 


10,734,l83 


63,^17,531 


3,382,570 


5,2''1.107 


312,101 


4,479,00.;. 


1,.7,,,7S,-. 


ii„':7,:45 


900,875 


926,412 


99,1?8 


327,214 


Retui 
Retui 


ns under $5,C 
ns $5,000 unc 
ns $10,000 01 


)00 

er $10,000. 


5,557,224 
5,617,467 
1,036,783 


1,721,715 

1,331,977 

729,853 


4,633,237 

5,281,097 

820,354 


15,839,556 
35,588,952 
12,089,023 


1,301,780 

1,615,444 

455,445 


1,775,403 

2,582,321 

832,378 


331,758 
410,403 
69,925 


1,444,640 

2,271,913 

752,453 


923,937 
335,370 
215,429 


2,802,745 
2,253,390 
5,401,110 


419,936 
216,533 
264,407 


431,660 
225,222 
269,530 


65,359 
24,116 
9,723 


366,301 
201 ,106 
259,807 



MARITAL STATUS OF TAXPAYER 



EXEMPTIONS 



Husbands and wives, filing 36.8 million joint 
returns, comprise the largest group of the five mar- 
ital classifications for taxpayers for 1958. Nearly 
2 million other married persons filed returns sepa- 
rately from their spouse. 

Single individuals who did not claim status as 
head of household or surviving spouse filed 19.2 
million returns which was more than 500 thousand re- 
turns below the number filed by this group for 1957. 
The decrease in this group of returns forms the major 
part of the 74-0 thousand decrease in total returns 
filed for 1958. Nearly 1 million returns were filed 
by individuals claiming status as head of household 
and about 80 thousand returns were filed by surviv- 
ing widows and widowers for 1958. The 80 thousand 
returns filed by the latter group was 1/3 less than 
the number filed by surviving spouses for 1957. 

In text table I, the number of returns and amounts 
of adjusted gross income and taxable income are shown 
for the five marital classifications of taxpayers. 



Although there were about 3/<+ of a million fewer 
returns filed for the income year 1958, the total 
number of exemptions claimed increased 223 thousand. 
Since there were fewer taxpayer exemptions, the in- 
crease was among the exemptions for dependents and 
age and blindness of the taxpayer. 

Exemptions include all those claimed for personal 
exemption of the taxpayer, and on joint returns his 
spouse who was considered a taxpayer, dependents, 
and additional exemptions for taxpayer's age 65 or 
over and blindness. Exemptions for children depend- 
ents were tabulated as such for the first time in 
many years . Children claimed as dependents were 
included even though their address differed from 
that of the taxpayer. 

Text table J shows, for the five marital status 
classifications, the total number of exemptions, the 
per capita exemption of taxpayers, exemptions for 
children, and the aggregate number of exemptions for 
age, blindness, and dependents other than children. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Tablo H.— NUMBER OF ITEMIZED DEDUCTrON RETURNS BV ADJUSTED GROS? INCOME CLASSES AND SIZE OF T0T4L DEDUCTIONS 



Adjusted gross 



$1CX) 
$200 



$200 
$300 



$300 
$«» 



$400 
$500 



$500 
$1,000 



Taxable 

$600 under $1,000... 
$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 
$2,500 under $3,000. 
$3,000 under $3,500. 
$3,500 under $4,000. 
$4,000 under $4,500. 
$4,500 under $5,000. 



$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total taxable 



Nontaxable 

Under $600 

$600 under $1,000. 
$1,000 1 
$1,500 1 
$2,000 under $2, 
$2,500 under $3 
$3,000 under $3 
$3,500 under $4 
$4,000 under $4 
$4,500 under $5 
$5,000 or more. 



Total nontaxable 

Grand total 

Returns under $5,000 

Returns $5,000 under $10,000. 

Returns $10,000 or more 



Taxable returns: 
$600 under $1,000. 
$1,000 u 
$1,500 under $2,1 
$2,000 under $2, 
$2,500 und. 
$3,000 under $3, 
$3,500 undi 
$4,000 undc 
$4,500 undi 



000. 



$5,000 under $6,( 
$6,000 under $7,< 
$7,000 unde: 

$8,000 under $9,000 

$9,000 under $10.000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 

$1,000,000 or more 

Total taxable returns. 
Nontaxable returns : 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $3,500 

$3,500 under $4,000 

$4,000 under $4,500 

$4,500 under $5,000 

$5,000 or more 

Total nontaxable retun 

Grand total 

Returns under $5,000 

Returns $5,000 under $10,000 
Returns $10,000 or more 



^Sample 



67,066 

228,159 

389,618 

584,426 

744,640 

948, 514 

1,147,777 

1,339,914 

1,488,801 

3,165,452 

2,581,656 

1,786,710 

1,220,225 

793,847 

1,493,724 

424,654 

213,584 

324,742 

87,960 

13,780 
3,786 
3,915 



18,661 
65,447 
99,131 
59,375 



6,456 
49,532 
89,412 
129,160 

120,952 
72,414 
19,720 



39,147 
70,259 
112,483 
141,556 
159,268 
152,880 



30,934 
108,713 
250,016 
390,521 
579,395 
731,651 
870,541 
913,608 
1,577,1 
868,453 
371,758 
116,753 



64,966 
111,345 
198,016 
290,062 
428,562 
1,168,555 
1,136,653 
866,764 
594,686 
359,097 
446,567 
63,049 
20,745 
17,533 
1,720 

82 



5,803,293 



26,090 
140,525 
223,741 
223,937 
260,743 
217,750 
177,866 
156,572 
112,984 

85,473 
132,022 



23,531 
10,958 
5,106 



31,983 
33,720 
9,178 




18,102 
31,438 
32,719 
32,719 



5,141 
30,064 
88,283 
105,039 
122,633 
110,048 
84,963 
65,566 
35,809 
16,100 
15,973 



6,166 
16,317 
31,166 
45,625 
43,931 
47,617 
4A,170 
40,796 
30,771 
31,756 



8,564,601 
9,675,145 
2,571,676 



$1,500 
$2,000 



3,797 
17,085 
36,249 
69,635 



491,290 
95,577 
35,432 
31,821 
2,310 
140 



147,558 

(') 



360,456 
3,749 



679,619 



4,539,025 

2,974,940 

8,282 



338,653 



1,434,701 

4,157,516 

549,729 



Size of total deduct 



$2,000 
$2,500 



$2,500 
under 
$3,000 



$5,000 
$10,000 



$10,000 

$20,000 



$20,000 
$30,000 



78, 598 

110,150 
119,702 
112,289 
92,198 

272,237 
83,514 
35,420 
38,295 
3,166 
143 



23,654 
30,152 
41,635 
45,325 
38,983 
128,702 
61,511 
31,923 
35,287 
3,811 

131 



(') 

7,819 
20,153 
15,038 
25,274 
21,064 
96,255 
65,936 
39,147 
61,371 

7,944 

438 



4,817 
8,531 
5,445 

31,136 
26,864 
21,543 
4^,761 
8,865 
854 



20,997 
24,670 
25,369 
75,391 



1,974 
2,738 
18,178 
21,099 



2,773 
1,559 
2,536 



19,615 
18,877 
25,630 
15,059 
13,318 
22,203 

145,909 



339,684 

1,651,536 

656,652 



7,949 
6,615 
8,574 
8,301 
11,616 
13,970 

67,993 



5,323 
5,116 
9,275 



44,200 
188,995 
261,464 



24,238 
104,396 
271,247 



5,176 
15,422 

182,213 



10 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Table I.— Nl. MBF.K OF RETl'HNS, ADJILSTED GROSS INCOME, AND T \X \BLE INCOME BY 

MARIHL STATUS OF TAXPAYER 

[Taxable and nontaxable returns] 





Returns 


Adjusted 
gross income 
less deficit 




Marital status of taxpayer 


Number 


Percent 
of 
total 


income 




(1) 


(2) 


(3) 


(4) 


Joint returns of husbands and wives 

Separate returns of husbands and wives.. 


36,794,585 

1,990,772 

972, 601 

79,550 

19,247,674 


62.3 
3.4 
1.6 
0.1 

32.6 


221,272,356 

6,320,571 

4,883,233 

366,506 

48,311,426 


114,478,320 
3,570,007 






Returns of single persons not head of 








Total 


59,085,132 


100.0 


281,154,092 









Table J.— NUMBER OF EXEMPTIONS BY MARITAL STATUS OF TAXPAYER AND 
BY TYPE OF EXEMPTION 

[Taxable and nontaxable returns] 





Total 
number of 
exemptions 


Numbe 


r of exempti 


ons for— 




Taxpayers 


Children 


Age, blindness, 

and dependents 

other than 

children 




(1) 


(2) 


(3) 


(4) 


Joint returns of husbands and 


136,367,109 

3,402,229 

2,160,391 

212,798 

26,066,953 


73,589,170 

1,990,772 
972, 601 
79,550 

19,247,674 


55,105,908 

1,103,149 
541,339 
103,678 

2,603,932 




Separate returns of husbands and 




Returns of heads of household 

Returns of surviving spouse 

Returns of single persons not 
head of household or surviving 


»;6,451 
29,570 






Total 


168,209,480 


95,879,767 


59,453,006 


12,371,707 



for 59.5 million 

35 percent of the 

In text table K, 



Of the total 168.2 million exemptions claimed for 
1958, there were 95.9 million per capita exemptions 
for taxpayers . With the reduction in number of re- 
turns filed for 1958, there was a corresponding 
reduction of taxpayer exemptions as compared with 
1957. 

Children dependents accounted 
exemptions for 1958, which was 
total exemptions for the year, 
data for returns with children dependents show the 
number of returns, number of children dependents, and 
taxable income reported on these returns, by marital 
status of taxpayer and by adjusted gross income 
classes . 



FORM 1040A, INDIVIDUAL INCOME TAX RETURNS 

The revised return Form 10-40A for 1958 was filed 
by employees who had less than $10,000 total income 
consisting of salaries and wages, supported by With- 
holding Statements (Form W-2), and not more than a 
total of $200 of interest, dividends after exclu- 
sions, and other wages not subject to income tax 
withholding. Joint returns could be filed on this 
form if the total income of husband and wife did not 
exceed the specified limits. Heads of household and 
surviving spouse were not permitted to use this form. 
Although data for all 1040A returns are included in 
tables throughout this report, emphasis was given 
to a study of the characteristics to be found on 
this new form. The results are presented in text 
tables L, M, N, and 0. 

Table L shows sources, adjusted gross income, ex- 
emptions, taxable income, and income tax by adjusted 
gross income classes. Of the 17.1 million returns 
filed on Form lO'+OA, 2.3 million had adjusted gross 
income of $5,000 under $10,000, the extended income 
range for the revised form. Of these 2.3 million 



returns, only 30.7 thousand returns were nontaxable, 
and nearly all were joint returns. Adjusted gross 
income of $47.5 billion was reported on the 1040A 
returns, with $14-. 8 billion of this being on returns 
with adjusted gross income of $5,000 or more. 
Slightly over 20 percent of all salaries and wages 
for 1958 were reported on the 104-OA returns. Other 
income of $38.9 million was reported for 1958, an 
increase of $23.6 billion over the amount reported 
for 1957. Only $8.8 million of this increase was 
on returns with adjusted gross income $5,000 under 
$10,000. 

In table M, data for the 17.1 million lO^OA 
returns are distributed by marital status of the 
taxpayer. About 7 million of these returns were 
joint returns of husbands and wives, 9 million were 
returns of single persons not head of household or 
surviving spouse, and 1 million were returns of 
married persons filing separate returns. Exemptions 
of $23.7 billion were claimed on the 104-OA returns, 
representing about 40 million separate exemptions 
including the per capita exemption for taxpayers 
and exemptions for age, blindness, and dependents. 
Over 26 million exemptions were claimed on joint 
returns, 11.6 million on returns of single persons, 
and 1.6 million on separate returns of husbands and 
wives. The 40 million exemptions on the 1040A re- 
turns comprise 23.5 percent of the total exemptions 
claimed for 1958. 

Table N is a tabulation of data from the joint 
returns filed on Form 1040A. This table presents 
data by adjusted gross income classes for two cate- 
gories of joint returns, namely, returns with one 
spouse employed (either husband or wife) and returns 
with both spouses employed. Returns were considered 
as having both spouses employed when two or more 
salaries were reported and at least one, but not all, 
was labeled as the wife's earnings. If no salary 
was labeled as earned by the wife or if all salaries 
were labeled as earned by the wife, the return was 
considered to have had only one spouse employed. Of 
the 6.9 million joint returns, 5.7 million returns 
showed only one spouse employed, while 1.2 million 
returns had wages for both husband and wife. On 
the latter returns with both spouses employed, 
approximately $2 billion of wages was labeled as the 
wife's income and $4 billion was income of the hus- 
band. The wages of $2 billion do not represent all 
working wives because the wife who was sole support 
of the family was classified as a return with one 
spouse employed. 

Table shows a frequency of the number of 1040A 
returns with other income reported, by adjusted 
gross income classes cross classified by size of 
the other income. Among the 1040A returns, about 
one return out of 30 showed receipt of other income. 
Of the 580.8 thousand returns with other income, 

210.6 thousand returns, or 36 percent, had other 
income of $100 or more. In adjusted gross income 
classes $5,000 under $10,000, other income occurred 
on 139.6 thousand returns, all of which were taxable 
returns. In adjusted gross income classes under 
$5,000, the frequency of other income increased by 

154.7 thousand returns, or 54 percent, over the 
frequency for 1957, and the amount of other income 
nearly doubled with an increase of $14.9 million 
for 1958. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



11 



Table K.— RETURNS WITH CHILDREN DEPENDENTS— NUMBER OF CHILDREN DEPENDENTS AND TAXABLE INCOME BV ADJUSTED GROSS INCOME CLASSES AND MARlr\L STATUS OF TAXPAYER 



Adjusted gross 



Number of 
children 
dependents 



of husbands and wii 



Number of 
children 
dependents 



Taxable : 
$600 under $1,000. 
$1,000 unde; 
$1,500 under $2,( 
$2,000 under $2, 
$2,500 under $3 
$3,000 under $3 
$3,500 under $i 
$4,000 under $4 
$4,500 under $5 



000. 



$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000. . . 
$150,000 under $200,000... 
$200,000 under $500,000. . . 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total taxable retur: 
Nontaxable returns: 

No adjusted gross incom' 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under ;' " 



$2,500 under $3, 
$3,000 under $3 
$3,500 under $4 
$4,000 under $4 
$4,500 under $5 
$5,000 or more. 



Total nontaxable 
Grand total 



Returns under $5,000 

Returns $5,000 under $10,000. 
Returns $10,000 or more 



34,052 
110,096 
500,354 

734,803 

1,087,053 

1,366,659 

1,679,233 

1,862,812 

3,828,756 

3,053,717 

2,101,441 

1,407,136 

902,007 

1,511,546 

354,086 

160,743 

222,410 

47,119 



34,052 

110,096 

562,203 

1,013,593 

1,701,673 

2,404,991 

3,299,647 

3,953,061 

8,417,135 

6,838,526 

4,734,884 

3,123,679 

1,953,531 

3,293,514 

806,967 

375,434 

532,423 

110,553 

14,849 

3,X3 

3,270 



2,524 

37,033 

163,970 

375,531 

824,016 

1,387,074 

2,131,848 

2,927,005 

8,012,184 

8,779,789 

7,822,843 

6,456,855 

4,972,842 

11,332,243 

4,314,571 

2,686,140 

5,886,423 

2,524,674 

545,556 
198,850 
310,857 
101,405 
129,700 



546,199 

865,415 

1,145,255 

1,482,773 

1,714,358 

3,632,113 
2,964,951 
2,052,554 
1,384,551 
891,799 

1,488,372 

346,116 

156,655 

216,613 

45,786 

5,772 

1,392 

1,346 



742,169 
1,373,953 
2,055,624 
2,978,590 
3,700,400 
8,077,497 
6,678,486 
4,650,713 
3,084,226 
1,935,094 



523,469 

108,262 

14,551 

3,240 

3,151 



153 



226,458 

566,962 

1,048,829 

1,760,452 

2,585,248 

7,458,221 
8,460,529 
7,605,575 
6,339,599 
4,907,215 
11,U0,186 
4,211,002 
2,614,651 
5,736,560 
2,455,865 

530,025 
190,872 
295,824 
93,685 
87,825 



7,482 
19,403 
52,072 

41,796 
58,688 
58,533 
59,676 
45,398 

55,876 
25,110 
10,437 
9,000 
(M 
5,359 
2,710 
1,488 
1,243 
262 



91,461 
116,450 
35,175 

102,680 
49,965 
19,373 
13,919 

(M 

9,426 
3,718 
2,429 
1,623 



34,321 
70,379 
94,438 
107,470 
104,548 



(M 

48,871 
37,005 
27,400 
32,923 
12,685 



2,220 
2,582 
33,251 



757,251 



146,064 
301,172 
423,214 
761,053 
905,531 
817,697 
736,055 
599,447 
449,877 
234,735 
160,622 
183,569 



343,856 

583,456 

820,775 

1,492,296 

1,845,248 

2,118,749 

2,190,890 
2,064,802 
1,821,375 
1,066,090 
778,631 
1,043,739 



133,233 
215,167 
275,741 
526,730 
734, 172 
739,494 
681,167 
566,292 
431,846 
229,759 
157,905 
180,315 



320, 582 

447,788 

590,695 

1,117,837 

1,505,168 

1,914,168 

2,016,213 
1,944,619 
1,754,713 
1,048,293 
766,716 
1,031,065 



16,509 
32,358 
49,476 
32,574 
11,219 
10,898 
7,830 
4,921 



27,238 
51,926 
74,096 
64,256 
32,310 
37,287 
32,694 
18,475 



16,169,907 



4,871,821 



14,457,367 



28,205,484 
26,106,198 
5,146,324 



7,351,960 
36,046,788 
28,032,574 



10,745,772 
11,1CK,683 
2,263,897 



24,577,804 
25,452,177 
5,075,927 



6,253,288 
34,773,. 
27,358,591 



511,219 
103,973 
11,663 



Adjusted gross 



of heads of household 



Taxable 



Number of 
children 

dependent? 



Number of 
children 
dependents 



Taxable 

$600 under $1,000. 
$1,000 under $1,501 
$1,500 under $2,00i 
$2,000 under $2,50i 
$2,500 under $3 
$3,000 under $3 
$3,500 under $4 
$4,000 under $4 
$4,500 under $5 



000. 



$5,000 under ; 
$6,000 under 
$7,000 under : 

$3,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,030 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000. 
$1,000,000 or more 



Total taxable 



$600 under $1,000. 
$1,000 under $1,501 
$1,500 under $2,00f 
$2,000 under $2,501 
$2,500 under $3 
$3,000 under $3 
$3,500 under $4 
$4,000 under $4 
$4,500 under $5 



,000 < 

Total nontaxable 



Grand total 

Returns under $5,000 

Returns $5,000 under $10,000. 
Returns $10,000 or more 



(M 

3,138 
12,579 
19,671 
33,511 
37,975 
36,035 
33,346 
56,400 
28,604 
17,246 

5,077 

3,123 
2,623 
1,273 
2,502 



(') 
8,138 
14,271 
25,436 
47,389 
60,032 
49,236 
48,004 

30,531 
46,939 
29,093 
7,447 



(M 
2,469 
7,146 
15,253 
37,561 
51,510 
70,677 
80,392 

169,484 
101,894 
74,688 
27,211 
(M 

68,272 
33,458 
23,275 
63,542 
31,000 
6,739 
3,718 
7,442 
4,068 
2,312 



3,404 
4,072 



4,091 

5,774 
7,819 
6,470 
5,077 
3,124 



24,191 
31,182 
132,381 
123,065 
124,676 
121,158 
96,687 
64,310 
80,305 
30,593 
13,830 



25,480 
9,687 
7,635 
18,995 
10,322 

575 
1,275 



175,337 

180,532 

191,404 

150,294 

111,353 

149,996 

55,517 

31,629 

18,087 

7,797 

10,584 

3,362 

1,599 

2,087 



1,810 
28,077 
64,703 
97,179 
143,564 
187,674 
185,221 
147,739 
219,735 
111,306 
83,916 
43,402 
19,734 



13,179 
34,403 
14,802 



',492 



(M 
8,472 
11,552 
23,133 
17,035 
13,927 



3,743 
(') 
4,076 
3,510 



7,142 

7,123 
6,334 



11,212 
63,040 
106,953 
171,946 
124,799 
57,347 
37,529 
21,336 
11,069 



20,580 
96,187 
164,198 
281,688 
246,302 
149,649 
122 , 104 
78,624 
44,110 



228,665 
110,423 
15,287 



265,126 
389,323 
243,826 



1,379,993 
143,450 
10,972 



2,316,000 
269,360 
18,572 



356,542 
483,593 
152,272 



566335 O - 60 -2 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Tiiblo L.— FIHtM 1040\ KKll KN 



rwMii.F. rNriniF.. 



Adjusted gross income classes 


Number of 


Salaries 
and wages 


Other 
income 


Adjusted 
gross 


Exemptions 


Taxable 
Income 


Income tax 




(1) 


(2) 


(3) 


(4) 


(5) 


(f.) 


(7) 


Taxs 
$6( 
$1 
$2 
$3 
t4 
$5 
$6 
*7 
$8 
$9 

Nont* 
Unt 
$6( 
$1 
$2 
$3 
$4 

$5 
$6 
$7 
$8 
$9 

Retui 
Retui 




800,602 
2,301,602 
2,270,417 
2,218,270 
2,009,684 

1,030,660 
567,988 
333,328 
209,608 
119,119 


665,681 
3,382,877 
5,675,943 
7,739, 129 
8,999,768 
5,610,344 
3,665,093 
2,481,352 
1,770,984 
1,122,929 


1,241 
3.972 
3,771 
5,539 
6,421 
2,984 
2,298 
1,619 
1,030 
822 


666,922 
3,336,849 
5,679,714 
7,744,718 
9,006,189 
5,613,323 
3,667,391 
2,432,971 
1,772,014 
1,123,751 


480,361 
1,585,253 
2,328,187 
2,919,283 
3,299,645 

1,936,168 

1,132,499 

682,505 

411,037 

232,205 


120,266 
1,464,103 
2,785,068 
4,052,389 
4,306,982 
3,116,774 
2,169,055 
1,552,338 
1,183,790 

779,380 


24,015 




293,020 




557,011 




821,025 




981,305 




634,788 


nnn rt *7'nnn 


443,070 




318,898 




246,242 




162,842 


Total taxable retiirns 


11,861,278 


41,114,100 


29,747 


41,143,847 


15,007,143 


22,030,145 


4,482,216 


xable returns: 


2,401,806 
640,072 

1,055,710 
652,854 
379,852 
107,872 
25,562 

I 5,112 


744,402 
475,493 

1,517,418 
. 1,612,413 

1,311,590 
474,296 

137,306 
34,250 


2,718 
1,187 
2,044 
1,773 
1,234 
177 


747,120 

476,680 

1,519,462 

1,614,186 

1,312,824 

474 ,473 

137,306 

34,250 


1,743,839 
807,350 
2,125,123 
1,961,321 
1,424,826 
503,930 

137,422 
36,196 


~ 






_ 




_ 




_ 




_ 




_ 
















~ 








5,268,840 


6,307,168 


9,133 


6,316,301 


8,740,057 


- 


- 




17,130,118 


47,421,268 


33,880 


47,460,148 


23,747,200 


22,030,145 


4,482,216 




14,838,741 
2,291,377 


32,599,010 
14,322,258 


30,127 
8.753 


32,629,137 
14,831,011 


19,179,168 

4,5tS,032 


13,228,808 

8,801,337 


2,676,376 




1,805,340 







, of Sample" and "Expla 





Table M.— FORM 1040A RETURNS— INCOME, 


EXEMPTIONS, TAXABLE INCOME 


, AND TAX BV MARITAL STATUS OP TAXPAYER 








Marital status of taxpayer 




Number of 


Salaries 
and wages 

(Thousand 


Other income 


Adjusted 
gross 


Exemptions 

(T>,™„nrf 


Taxable 






Number of 
returns 


Amount 


Income tax 




ns: 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


Taxable retui 


4,807,191 

708,067 

6,X6,020 


23,045,939 
2,036,073 
16,032,083 


216.255 
12,270 
229,545 


14 ,417 

960 

14,370 


23,060,356 
2,037,038 
16,046,453 


9,350,158 

640,481 

4,516,50i 


10,905,545 
1,194,918 
9,929,682 


2,199,726 


Separate r 
Returns of 


turns of husbands and wives 






s'nplp nersons ot head of household or surviving spouse 




2,038,883 


taxable returns 




Total 


11,861,278 


41,114,100 


458,070 


29,747 


41,143,347 


15,007,143 


22,030,145 


4,482,216 


Nontaxable r 
Joint retm 
Separate r 
Returns of 


turns: 




2,096,595 

251,530 

2,920,715 


4,519,600 

220,742 

1,566,826 


68,506 
5,112 

49,077 


5,207 

450 

3,476 


4,524,807 

221,192 

1,570,302 


5,963,407 

310,732 

2,465,918 


: 




t f h ba ds and wives 






'Tte\e Dersons not head of household or survivinp s-pouse 






ontaxable returns 






Total 


5,268,840 


6,307,168 


122,695 


9,133 


6,316,301 


3,740,057 


- 


- 


a d 






17,130,118 


47,421,268 


580.765 


36,880 


47,4d0,148 


23,747,200 


22,030,145 













SOLE PROPRIETORSHIPS 

Preliminary data relating to businesses and pro- 
fessions carried on by individuals and reported in 
the business schedule C, or farm schedule F, or the 
taxpayer's equivalent schedule attached to returns. 
Form 10-40, for the income year 1958 are shown in 
text table P. Accounting periods for these busi- 
nesses were primarily January 1 - December 31, 1958, 
but there were some noncalendar accounting periods 
included. Early in 1961, when tabulations for sole 
proprietorships have been completed, comprehensive 
tables will be published in the report. Statistics 
of Income— 1958-59, U. S. Business Tax Returns. 
Although subject to revision the estimates in table 
P represent a coverage of all businesses owned and 
operated by sole proprietors during the income year, 
exclusive of those few who elected to be taxed as 



corporations. These estimates were compiled from 
the regular Statistics of Income sample of business 
returns. Form 1040. 

Table P shows that 8.8 million separate businesses 
were operated with total receipts of $163.4 billion, 
and the profit and loss when combined resulted in 
$20.8 billion net profit. This is about one-eighth 
of the overall business receipts. 

Number of businesses was the enumeration of each 
different type of business owned, or profession 
practiced, by any sole proprietor as reported on the 
attached business schedules, regardless of whether 
profit or loss was summarized on the face of the 
return, and/or included in adjusted gross income. 
If the business schedule included two or more kinds 
of business which could not be separated, the busi- 
ness was classified for the activity showing the 
largest percentage of total receipts. Since the 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



13 



TVBLE N.— JOINT RETl'RNS. FORM 1 



Nl'MBER. INCOME, EXEMPTIONS. TiXiBLE fSCOME, AND TAX FOR RETl'RNS WITH ONE OR BOTH SPCLSES EMPLOYED. BY ADJUSTED GROSS INCOME CLASSES 



l^anber of 
Joint 



spouse employed 



Taxable 

$600 under $1,000. .. 
$1,000 under $2,000. 
$2,000 under $3,000. 
$3,000 under $«,0OO., 
$4,000 under $5,000. 
$5,000 under $6,000., 
$6,000 under $7,000. 
$7,000 under $8,000., 
$8,000 under $9,000., 
$9,000 under $10,000, 
Total taxabli 

Nontaxable returns: 

Under $600 

$600 under $1,000 

$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8, OX) 

$8,000 under $9,000 

$9,000 under $10,000 

Total nontaxable returj 

Grand total 

Returns under $5,000 

Returns $5,000 under $10,000 



153,372 

615,022 

961,643 

1,177,386 

783,731 
495,903 
308,278 
196,316 
115,540 



132,922 
529,645 
802,136 
969,822 
626,780 
355,312 
135, 580 
116,051 
50,613 



215,168 
1,351,512 
2,824,819 
4,366,288 
3,424,223 
2,287,638 
1,377,821 
978,352 
478,964 



1,764 
1,491 
1,036 



215,506 
1,352,419 
2,826,730 
4,368,630 
3,425,987 
2,289,129 
1,378,857 
979,006 
479,293 



159,506 

894,159 

1,620,221 

2,207,636 

1,426,666 

313, 178 

424,227 

258,278 

111,348 



34,510 

323,237 

924,563 

1,724,505 

1,656,767 

1,247,055 

816,755 

622,836 

320,016 



6,902 
64,620 
185,064 
345,070 

331,231 
250,469 
165,600 
127,769 
66,362 



17,304,785 



17,315,557 



7,915,219 



7,670,294 



163,597 
191,715 
662,567 
582,302 
359,402 
106,849 

25,051 



156,951 
182,513 
598,151 
528,111 
322,082 
98,669 
21,472 

4,601 



54,876 
148,663 
833,733 
1,306,708 
1,114,703 
434,708 
115,738 



1,228 
1,352 
1,082 



55,060 
149,126 
884,961 
1,308,060 
1,115,785 
434,744 
115,738 



299,075 

365,945 

1,332,802 

1,601,317 

1,213,786 

464,104 

115,642 



; with both spouses employed 



Salaries and uages 



Taxable 

$600 under $1,000 

$1,000 under $2,000. 
$2,000 under $3,000. 
$3,000 under $.'.,CO0. 
$4,000 under $5,-000. 

$5,000 under $6,000. 
$6,000 under $7,000. 
$7,000 under $8,000. 
$8,000 under $9,000. 
$9,000 under $10,000 
Total taxable 

Nontaxable returns: 

Under $600 

$600 under $1,000. . . 
$1,000 under $2,000. 
$2,000 under $3,000. 
$3,000 under $4,000. 
$4,000 under $5,000. 
$5,000 under $6,000. 
$6,000 under $7,000. 
$7,000 under $8,000. 
$8,000 under $9,000. 
$9,X0 under $10,000 

Total nontaxable 

Grand total 

Returns under $5,000 

Returns $5,000 under $10,000 

See text for "Description of Sample" and "Explanation of Classificatioi 
-Sample variability is too large to warrant showi:ig separately. Howev* 



20,450 
35,377 
159,507 
207,564 

156,951 

140,591 
122,698 
80,265 
64,927 



35,190 
218,356 
560,134 
938,674 
363,277 
915,711 
917,831 
681,447 
610,534 



21,255 
134,051 
369,458 
646,676 
623,544 
641,447 
626,164 
443,071 
411,100 



13,935 
84,305 
190,676 
291,998 

239,733 
274,264 
291,667 
238,376 
199,434 



35,211 
218,613 
560,761 
939,378 
863,739 
916,162 
918,217 
681,770 
610,948 



24,539 
135,274 
296,008 
404,288 
309,193 
264,720 
239,260 
143,556 
118,096 



61,579 
208,566 
440,979 

468,178 
559,832 
587,141 
470,042 
431,760 



1,435 
12,315 
41,770 
88,262 
93,597 
112,829 
U9,617 
97,048 
89,766 



1,741,154 



,824,388 



656,639 



6,646 
9,202 
64,416 
54,191 
37,320 
8,180 



3,262 
7,525 
97,771 
134,853 
128,840 
35,066 



2,134 
4,108 
62,721 
92,690 
97,439 
29,150 



1,128 
3,417 
35,050 
42,163 
31,401 
5,916 



3,340 
7,574 
97,965 
135,105 
128,992 
35,208 



12,883 
16,871 
143,863 
166,562 
138,955 
35,582 



ieted for this 



count was on an ownership basis, separate businesses 
of husbands and wives filing jointly were separately- 
enumerated, even when each owned a similar type of 
business. However, if the same type of business 
involved several establishments, it was counted only 
once to reflect its ownership . In case of community 
property business income divided between husband 
and wife, it was assumed that unless otherwise 
stated, each type of business was jointly owned and 
as a result, it was counted only once. If on the 



other hand, the wife reported a business as noncom- 
raunity income, it was counted separately regardless 
of other community property business . 

In contrast to this method of enumeration was the 
method used in arriving at the frequency of profit 
or loss from business or profession tabulated in 
basic table 4-. This count represented the number of 
returns with profit or loss from businesses or farms 
summarized on the face of the return, and/or in- 
cluded in adjusted gross income, regardless of 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Ta 


ble O.-FORM 1040A RETURNS— NUMBER OF RETURNS WITH OTHER INCOME BY 
GROSS INCOME CLASSES AND BY SIZE OF OTHER INCOME 


VDJISTED 




Number of 
returns with 
other income 


Size of other income 


Adjusted gross income classes 


Under $100 


$100 under 
$150 


$150 through 
$200 




(1) 


(2) 


(3) 


(4) 


Taxable returns: 


17,893 
59,304 
60,838 
83,332 
97,135 

51,124 
37,321 
25,050 
15,848 
10,225 


10,736 
37,832 
44,989 
53,169 
65,950 
36,809 
25,562 
17,893 
11,247 


6,646 
19,427 
12,270 
26,074 
26,073 
12,270 
10,225 

6,135 
"I 7,158 






$1 
$2 
$3 
$4 

$5 
$6 
$7 
$8 
$9 


000 under $2,000 




000 under $4,000 




000 under $6,000 












000 under $10,000 




Total taxable returns 


458,070 


308,788 


126,278 


23,004 


Nont 
Un 

$6 
$1 
$2 
$3 

$5 
$6 
$7 
$8 
$9 


xable returns: 


38,854 
16,359 
27,096 
21,471 
15,848 


23,517 
9,202 

12,781 
7,668 
6,134 

(M 


14,315 
7,157 
13,804 
12,781 
9,714 
(M 


^ 


30 under $1 ,000 








000 under ^,000 










_ 




_ 




_ 




_ 






Total nontaxable returns 


122,695 


61,347 


58,793 


(M 


Retuj 
Retu. 




580, 7d5 


370,135 


185,071 


25,559 






441,197 
139,568 


274,023 
96,112 


149,283 
35,788 


17.891 


rns $5,000 under $10,000 




7,o68 



See text for "Description of Sample" and "Explanation of Classifications and Terms." 
^Sample variability is too large to warrant showing separately. However, the grand 
total includes data deleted for this reason. 



Table P.— SOLE PROPRIETORSHIPS 
(Preliminary Data) 

[Taxable and nontaxable returns] 



Agriculture, forestry. 

Mining 

Construction 

Manufacturing^ 

Transportatio 



tion, and sanitary 



Wholesale and retail trade^ 

Wholesale trade 

Retail trade 

Wholesale and retail trade not allocable. 

Finance, insurance, and real estate 

Services 



Nat 



of 






3,489,164 
35,413 
604,910 
179,967 

290,225 

1,880,131 
255,457 
1,552,566 
72,108 
436,296 
1,825,988 
57,617 



25,913,881 
1,286,608 

13,561,916 
6,323,870 

3,929,658 
85,157,755 
16,855,588 
63,811,388 
4,490,779 
6,106,808 
20,710,408 
408,085 



Combined net 
profit and 



545,104 
5,281,021 
1,122,102 
3,910,975 

247,94.4 

1,363,723 

7,189,981 

76,948 



^Definitions of manufacturing and trade groups have been changed slightly in accord- 
ance with revised 1957 Standard Industrial Classification. For details, see forth- 
coming Statistics of Income 1958-59, U. S. Business Tax Returns. 

whether the profit or loss was supported by attached 
schedules. Thus while business or farm schedules 
served as the basis for tabulating the number of 
businesses, information from the face of the return 
was the basis for tabulating profit or loss from 
business or profession. Whereas information from 
community property returns with business income was 
counted only once for number of businesses, it was 
counted twice for purposes of table 4- since it in- 
volves two separate returns representing husband 
and wife. Moreover, there is no reference in table 
4- to the number of different businesses owned by 
each sole proprietor filing a return. 

Total receipts were the gross receipts from sales 
and services or other business activities reduced 
by the value of returned goods, rebates, and allow- 
ances from the sales price or service charge. 
Farmers included the gross sales price of items 
raised or purchased. However, dividends on corporate 



stock received as business income were excluded from 
total business receipts so as to be reported with 
other dividends in the dividend schedule. It is 
quite probable that total receipts are somewhat 
understated because in some cases the sole proprietor 
failed to submit a detailed business schedule, or 
the schedule for some reason was not attached to 
the return. 

Combined net profit and loss was the net profit 
reduced by the net loss, resulting in a net profit 
for each industry as a whole. Net profit or net loss 
was that amount determined for income tax purposes, 
rather than for self-employment tax. Separate busi- 
ness profit and loss are not included in this report. 



SOURCES OF DATA AND DESCRIPTION OF SAMPLE 
Sources of Data 

Statistical information in this report was esti- 
mated from a sample of unaudited individual income 
tax returns. Forms 1040 and 1040A, filed by citizens 
and residents during the calendar year 1959 in the 
district offices of the Internal Revenue Service and 
with the Director of the International Operations 
Division in the National Office. The sample repre- 
sented all 1958 returns regardless of when filed. 
Most of the returns covered income for the calendar 
year 1958, but a relatively small number of returns. 
Form 1040, had noncalendar year accounting periods. 
Tentative returns and returns with no information 
regarding income and tax were eliminated from the 
tabulations and amended returns were used only when 
the original returns were excluded. 

An individual income tax return was required of 
every citizen or resident alien under 65 years of 
age (including minors) who had $600 or more of gross 
income for the year, every citizen or resident 65 
years or over who had $1,200 or more of gross income 
for the year, and every person regardless of age or 
gross income who had self-employment earnings of 
$400 or more during the tax year. Gross income, 
for purposes of filing, included earned income from 
sources without the United States, even though tax 
exempt. Citizens of Puerto Rico who were also cit- 
izens of the United States and aliens who were bona 
fide residents of Puerto Rico filed a return if they 
met the income test. Persons with gross income be- 
low the filing requirement who had wages from which 
income tax was withheld filed to claim refund of 
tax, although not otherwise required to do so. 

Two return forms were available for reporting 1958 
income. Form 1040A, the card-form, could be used by 
employees (other than head of household or surviving 
spouse) who earned less than $10,000, consisting of 
wages on Withholding Statements (Form W-2) and not 
more than $200 total of dividends, interest, and 
other wages not subject to income tax withholding. 
Form 1040, a four-page form with additional sched- 
ules, was provided for persons who either (1) were 
not eligible to file Form 1040A, or (2) elected to 
use Form 1040 rather than Form 1040A. Facsimiles 
of these returns are to be found on pages 87-119. 

There were 42 million returns filed on Form 1040 
and 17 million on Form 1040A. The number of 1040A 
returns showed an increase of 2.9 million over the 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



15 



number filed for 1957. This increase in the use of 
Form 104-OA was primarily the result of extending two 
limits on amounts which could be reported on this 
card-form: (1) total income was raised from under 
$5,000 to under $10,000, and (2) the total amount of 
dividends, interest, and wages not subject to income 
tax withholding was increased from $100 to $200. 
There were 2.3 million returns with adjusted gross 
income of $5,000 under $10,000 among the lOAOA's, 
and also an increase of 643 thousand returns with 
adjusted gross income under $5,000 for 1958. The 
42 million returns. Form 1040, were 3.7 million be- 
low the number filed for 1957. The larger part of 
this decrease occurred in the adjusted gross income 
group, $5,000 under $10,000. 

Taxpayers itemized their deductions on 20.8 mil- 
lion returns, or 35 percent of the total returns 
filed for 1958. This is the highest proportion of 
returns ever to show itemized deductions. One return 
out of every two filed on Form 1040 had itemized 
deductions. There were 38.3 million returns with 
election to use the standard deduction for 1958, a 
decrease of 1.4 million returns from the number 
showing standard deduction the previous year. 

In text table Q below, the number of returns for 
the income years 1958 and 1957 are distributed to 
show the type of deduction (standard or itemized) 
elected by the taxpayer, the form of return used, 
and three broad adjusted gross income groups. This 
distribution shows that there were 2.3 million fewer 
Form 1040 returns with adjusted gross income $5,000 
under $10,000 for 1958 than for 1957- The broad 
income group $10,000 or more was the only one to 
show an increase in the number of Form 1040 returns. 

Table Q also shows the number of returns with ad- 
justed gross income under $5,000 on which the income 
tax was determined from the tax table. These figures 
reveal that the tax table was used on 28.8 million 
returns, which is 48.7 percent of the total returns 
filed for 1958. This represents a drop from the 
previous year of over 1 million returns on which the 
income tax was determined from the tax table. Of 
these 28.8 million returns, 14.8 million were filed 
on Form 1040Aandl4 million were filed on Form 1040. 

Table Q.— NUMBER OF RETURNS BY FORM OF RETURN: 1958 AND 1957 
[Taxable and nontaxable returns] 



Form of re:um, adjusted gross income group, 
and type of deduction 


1958 


1957 


Change, 1958 
from 1957 




(1) 


(2) 


(3) 




59,085,182 


59,825,121 










33,273,760 
20,811,422 

28,791,518 
17,130,118 


39,669,760 
20,155,361 

29,899,888 
14,195,972 




With itemized deduction ( lOAO only) 

Returns on which tax table was used (included 
above ) 

Form 1040A 
With standard deduction, total 


+556,061 
-1,108.370 

+2.934,146 




2,291,377 
41,955,054 


45,529,149 




Adjusted gross Income $5,000 or more 

Form 1040 


+2.^91,377 








22,517,378 
15,612,264 
3,825,422 
21,143,642 


24,240,534 
17,397,743 
3,490,372 
25,473,788 




Adjusted gross income $5,000 under $10,000 


-2,285.479 


With standard deduction, total 


-4,330,145 




13,952.777 
5,937,119 
1,253,746 

20,811,422 


15,703,916 
8,530,781 
1,239,091 

20.155.361 




Adjusted gross income $5,000 under $10,000.. 

Adjusted gross income $10,000 or more 

With itemized deduction, total 


-2,593,552 

+14,555 
+556.061 




8,564,601 
9,675,145 
2,571,676 


8,536.618 
9,356,962 
2,251,781 


+27,983 
+308,183 
+319,895 


Adjusted gross income $5,000 under $10,000.. 
Adjusted gross income $10,000 or more 



Description of Sample 

The data presented for individual income tax 
returns for 1958 were based on a stratified system- 
atic sample of all Forms 1040 and 1040A filed during 
1959. The total sample consisted of 321,606 returns, 
about 0.54 percent of the total number filed for 
the year. 

Sample selection- — Uniform methods of classifying 
returns by type of form, presence or absence of 
business income, size of adjusted gross income, and 
taxpayment status were prescribed for each of the 
64 district offices and the International Operations 
Division in Washington, D. C, to facilitate the 
administrative processing of returns for collection 
and audit purposes. These classifications also 
provided effective sampling strata since the char- 
acteristics on which the strata were based correlated 
highly with the principal income and tax character- 
istics being estimated. The sample design was 
therefore adapted to fit these regular return sorting 
procedures. All returns with adjusted gross income 
of $50,000 or more were sent to the Statistics 
Division of the National Office where they were 
either sampled or accepted 100 percent. Returns 
with adjusted gross income under $50,000 were sam- 
pled in the field offices. 

Within each of the strata, returns were assigned 
consecutive account numbers and the sample was 
selected systematically by withdrawing from the 
various strata all returns with designated account 
number endings. For example. Form 1040A returns 
were selected according to the prescribed rate of 1 
in 500, by drawing returns having account numbers 
ending with 222 and 777. 

Text table R shows the number of returns filed, 
the number of returns in the sample, and the pre- 
scribed sampling rate by sampling strata. 



Table R.— NUMBER OF INDIVIDUAL INCOME TAX RETURNS FILED, NUMBER OF RETURNS IN 
SAMPLE, AND THE PRESCRIBED SAMPLING RATE BV SAMPLING STRATA 

[Taxable and nontaxable returns] 



Sampling strata 


Number of 
filed 


Number of 
in sample 


Prescribed 
sampling 




ill 


(2) 


13) 




59.197,824 


321,506 








Form 1040A 

Form 1040, adjusted gross income — 
Under $10,000: 


17,178,839 

29,021,881 
5,666,692 
3,147,335 

'2,585,935 
^1,145,447 

47,508 
45,327 

4,355 
4,231 

349,135 
128 


33,602 

85,739 
15,272 
9,159 

'75,453 
^32,513 

14,037 
45,327 

4,355 

4,231 

769 
128 


2/1,000 

3/1,000 
3/1,000 
3/1,000 

3/100 
3/100 

3/10 
1/1 

1/1 
1/1 

3/1,000 
1/1 


Schedule C 

Schedule F 

$10,000 under $50,000: 

Nonbusiness 

Schedules C and F 

$50,000 under $150,000: 


Schedules C and F 

$150,000 and over: 


Schedules C and F 

Prior year delinquent: 

Adjusted gross income under $50,000 

Adjusted gross income $50,000 and over 



Method of estimation Estimates for all returns 

filed were determined by multiplying the sample data 
by "weighting factors" obtained by dividing the 
number of sample returns received from each sampling 
stratum into the total number of returns filed in 
that stratum. For instance, the "weighting factor" 



16 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



of 511.2'+ for Form 1040A returns was obtained by 
dividing the number of returns in the sample, 33,602, 
into the total number of returns filed, 17,178,839. 
The primary sources of population data were counts 
made and submitted by the district offices and the 
International Operations Division showing the number 
of Form lO'+O and 104.0A returns filed during the 
calendar year 19,59. 

A comparison of the estimated number of returns 
shown in the national tables of this report with 
the number of returns reported filed in the district 
offices, as shown in text table R, will disclose 
slight differences. These differences occur for the 
following reasons: (1) An estimated 112,6<i2 returns 
were excluded from the tables because they showed 
no income information, (2) Form lO'+O returns were 
classified in the proper adjusted gross income size 
class regardless of the sampling strata to which they 
were assigned in the field offices and, (3) Weighted 
estimates were rounded . 

Separate "weighting factors" were used for the 
national tabulations and for the State tabulations . 
Reports received from each field office showing the 
number of returns filed by sampling stratum were 
used to derive "weighting factors" for the State 
tabulations. The "weighting factors" for the national 
tabulations were based on the aggregate number of 
returns filed in each stratum throughout all field 
offices. The achieved sampling ratios varied suffi- 
ciently among districts to warrant using two separate 
series of weights . The use of two separate series 
of weights is the reason for slight differences be- 
tween totals in the tables showing distributions by 
States and corresponding items in the national tables . 

Sampling variability. — The data from returns show- 
ing adjusted gross income of $150,000 or more are 
not subject to sampling variability since all such 
returns were Included in the sample. However, the 
estimates which include data from returns showing 
adjusted gross income under $150,000 are subject to 
sampling variability. Text table S below shows the 
range, in percent, that would not be exceeded in 19 
out of 20 estimates, based on a similar sampling 
system, for number of returns with adjusted gross 
income, amounts of adjusted gross income, taxable 
income, and income tax after credits, as shown in 
basic table 1 of this report, by adjusted gross in- 
come classes. In the presentation of this table, 
it was assumed that account number selection within 
strata would yield results equivalent to simple 
random sampling. 

Text table T shows, for estimates of number of 
returns, the range in percent that would not be 
exceeded in 19 out of 20 estimates, prepared from 
similarly selected samples . Sampling variability 
patterns are presented separately for each inde- 
pendent estimating stratum. For instance, if data 
from returns showing adjusted gross income under 
$10,000 reveal 100,000 returns having a certain 
characteristic, then the relative sampling error 
will be 11.7 percent. As another example, if data 
from returns showing adjusted gross income of 
$10,000 under $50,000 reveal 100,000 returns having 
a certain characteristic, then the relative sampling 
error of this estimate will be 3.6 percent. 

Data have been deleted from the tables where the 
estimated relative sampling variability was judged 
to be excessive. Where such a deletion has been 



Tables.— liEHTlVE S\MPLINfi V\RUBILITY 
s^iocialcd with B3limat«s presented in Basic TTbIc 1) 

[Taxable and nontaxable returns ] 



Returns with adjusted gros. 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

I under $2,500 



500 under 
000 under 
500 under 
000 under 
500 under 
000 under 
000 under 
000 under 
000 under 
000 under 



$3,000.. 
$3,500.. 
$4,000.. 
$4,500.. 
$5,000.. 
$6,000.. 
$7,000.. 
$8,000.. 
$9,000.. 
$10,000. 



$10,000 under $15,000... 
$15,000 under $20,000... 
$20,000 under $25,000... 
$25,000 under $50,000... 
$50,000 under $100,000. . 

$100,000 under $159,000. 
$150,000 under $200,000. 
$200,000 under $500,000. 
$500,000 under $1,000,00 
$1,000,000 or more 



Total. 



Estimated Tela 



Not subjec 
as all the 
were sampled 



Hot applicable 



Table T.— RELMIVE SAMPLING V 

[Taxable 


ARIABILITV OF ESriM\TED NUMBER OF RETUR.VS 

and nontaxable returns] 




stimated number of retu 


n>s 


Returns with adjusted gross income — 




Under 
$10,000 


$10,000 

under 
$50,000 


$50,000 

under 

$150,000 








(1) 


(2) 


l3) 




(P.r„„„ 




(0 

(1) 

51.6 
37.1 
30.1 

26.2 

23.4 
16.6 
11.7 

5.2 

1.'3 


36.6 
25.9 
16.4 
11.6 
9.5 

8.2 

7.3 
5.2 
3.6 

2.2 

1.5 

1.0 


9.3 




7.0 




4.3 




3.0 


'i'nnn 


2.4 




2.0 




1.7 


' -- 


1.0 


. ' _^. 






n.a. 








n.a. 




n.a. 







^Sample too small to yield reliable estimate of sampling variability. 

made, the applicable cells have been appropriately 
footnoted . 

Response and other nonsampling errors In proc- 
essing returns for collection purposes in the dis- 
trict offices and, later, in processing the sample 
of such returns for statistical purposes, several 
steps were taken to reduce taxpayer-reporting errors 
and other errors introduced in data processing 
operations. In the district offices, approximately 
88 percent of all individual returns filed during 
1959 were mathematically verified before they were 
made availablef or sample selection. Any corrections 
resulting from mathematical verification of the tax- 
payer's entries are reflected in the data tabulated. 

In transcribing and tabulating the information 
from the sampled returns, additional checks were 
imposed to improve the quality of the resulting es- 
timates. Returns which showed data in accompanying 
schedules but not on appropriate return lines, com- 
munity property returns on which the "halving" of 
income was incorrectly computed, and returns with 
other obvious errors were edited and recording 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



17 



errors amended. Mechanical transcribing was verified 
by the process of repeat card punching and, prior 
to tabulating, numerous tests for consistency were 
applied using an electronic computer, to assure that 
proper balance and relationship between return items 
and statistical classifications were maintained. 

An intensive system of sample management and 
control was used to insure the selection of the pre- 
scribed sample and prevent any serious imdercoverage . 
Sample controls were maintained on a district basis 
by the most detailed sampling strata. In addition, 
a name control file for internal use only, containing 
a historical record of tax return information for 
certain taxpayers who annually report large incomes, 
provided a further check on the completeness of the 
sample. 

Coverage was improved also by the inclusion of 
prior-year delinquent returns in the sample for the 
purpose of estimating data for 1958 returns that 
were filed after December 31, 1959. It was felt 
that the characteristics of 1958 returns filed too 
late to be included could best be represented by a 
sample of previous year delinquent returns filed 
during 1959. As can be seen in text table R, the 
number of delinquent returns filed during 1959 was 
nearly 350 thousand. 

However, the controls maintained overthe selection 
of the sample and the processing of the source 
data in the field offices did not completely elimi- 
nate the possibility of error. Also, practical 
operating considerations necessitated allowance of 
reasonable tolerance in controlling the processing 
of these data within the Statistics Division. 



EXPLANATION OF CLASSIFICATIONS AND TERMS 
Classifications 

Income statistics presented in the basic tables 
of this report are classified by adjusted gross in- 
come classes, size of taxable income, taxable and 
nontaxable status, form of deduction (standard or 
itemized), marital status of taxpayer, types of tax, 
size of income source and deduction, total number of 
exemptions, and States and Territories. 

Adjusted sross income classes. — The basis used for 
classifying data by size of income was the amount of 
adjusted gross income reported by the taxpayer on 
his return. Adjusted gross deficit and breakeven 
in adjusted gross income were classified as "No 
adjusted gross income." Whenever taxable and non- 
taxable data are tabulated together, the nontaxable 
data are distributed by class according to the amount 
of ad justed gross income shown on the return, although 
when tabulated separately, nontaxable data from re- 
turns with adjusted gross income of $5,000 or more 
are grouped in the nontaxable class, $5,000 or more. 

Taxable and nontaxable status. — Taxable and non- 
taxable classifications were dependent upon the 
presence or absence of an amount of income tax after 
credits, disregarding the self-employment tax. 

Taxable returns showed an income tax remaining 
after all allowable tax credits. Tax credits did 
not apply to returns. Form 104-OA. 

Nontaxable returns were without income tax after 
credits. Some nontaxable returns showed income tax 
before credits which was eliminated by the tax 
credits. 



Returns with standard deduction or with itemized 
deductions. — Returns with standard deduction in- 
cluded (1) all Form lO^OA returns, (2) Form 1040 
returns with adjusted gross income under $5,000 on 
which the income tax was determined from the tax 
table, (3) Form 104-0 returns with adjusted gross 
income of $5,000 or more on which the standard 
deduction was elected by the taxpayer, and (4) all 
returns with no adjusted gross income whether or not 
deductions were itemized . 

Returns with itemized deductions were Form 1040 
returns with adjusted gross income against which 
nonbusiness deductions were claimed by the taxpayer 
in the computation of taxable income. In the case 
of married persons filing separately, both parties 
were required to use the same form of deduction, 
standard or itemized. In a relatively few instances 
where the husband claimed all the itemized deduc- 
tions, leaving the wife with no deductions to claim, 
the wife's return was also regarded as an itemized 
deduction return. 

Taxable income classes This classification was 

applied to returns with a positive amount of tax- 
able income upon which the size class was based. 
Taxable income was reported on all Form 1040 returns 
with adjusted gross income $5,000 or more, and on 
those Form 1040 returns with adjusted gross income 
under $5,000 with itemized deductions. It was com- 
puted mechanically for Form 1040 and Form 1040A 
returns with adjusted gross income under $5,000 
where the tax table was used, and for Form 1040A 
returns with adjusted gross income of $5,000 under 
$10,000. The class intervals coincide with the tax- 
able income brackets of the three income tax rate 
schedules applying to (l) joint returns and returns 
of surviving spouse, (2) separate returns of hus- 
bands and wives and returns of single persons not 
head of household or surviving spouse, and (3) 
returns of head of household . 

ivlarital status of taxpayer — Marital status was 
determined by the taxpayer as of the last day of 
his tax year or the date of the death of a spouse . 
The 5 marital classifications — joint returns of 
husbands and wives, separate returns of husbands 
and wives, returns of heads of household, returns 
of surviving spouse, and returns of other single 
persons — were based on the marital condition indi- 
cated by the taxpayer with regard to name (or names) 
of taxpayer, joint signatures, exemption for the 
taxpayer or for himself and spouse, check mark 
denoting status as head of household or surviving 
spouse, and any other relevant data. 

Joint returns of husbands and wives were those on 
which a married couple reported their combined 
income, or returns of married persons only one of 
whom had income but, nevertheless, exemption for both 
could be claimed . 

Separate returns of husbands and wives were returns 
of married persons, each of whom filed a return 
irrespective of his spouse and reported only his own 
income, exemption, and tax. Returns with community 
income divided between husband and wife were in- 
cluded in this classification. 

Returns of heads of household were Form 1040 re- 
turns on which the taxpayer signified this status. 
Head of household is an unmarried person (or one 
married to a nonresident alien) who furnished more 
than half the maintenance of a home which was his 



18 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



residence and which he shared with any related 
person for whom he was entitled to the deduction for 
an exemption (except multiple support), or shared 
with his unmarried child, grandchild, or stepchild 
even though not a dependent, or who paid over half 
the cost of maintaining a household which was the 
principal abode of his parents, if either of them 
qualified as a dependent. 

Returns of surviving spouse were Form 1040 returns 
of widows and widowers who indicated this status. 
A surviving spouse is a taxpayer whose spouse died 
during either of the two preceding tax years and 
who had not remarried, but who had maintained as 
his home a household which was also the principal 
abode of his child or stepchild for whom the tax- 
payer was entitled to a deduction for exemption. 

Returns of single persons not head of household 
or surviving spouse were those of unmarried indi- 
viduals who did not claim status as head of house- 
hold or surviving spouse. 

Types of tax. — Returns wereclassif ied for the type 
of income tax reported, namely, the regular normal 
tax and surtax combined, or the alternative tax. 
In addition, returns with the unrelated self- 
employment tax were classified independently based 
on the presence of this tax. 

Returns with normal tax and surtax were those 
showing the regular normal tax and surtax including 
returns with tax determined from the tax table. 
Normal tax and surtax was found on all types of re- 
turns except those with long-term capital gain on 
which the alternative tax was less than the regular 
normal tax and surtax. 

Returns with alternative tax were returns with 
income that contained an excess of net long-term 
capital gain over net short-term capital loss and 
on which the tax computed by the alternative method 
was less than the regular normal tax and surtax on 
statutory taxable income. The alternative tax did 
not occur on returns with taxable income under 
$18,000. 

Returns with self-employment tax were those with 
a tax levied on the self-employment income of per- 
sons owning and operating a business (including 
partnerships) that conformed to the definition of 
trade or business as required for self-employment 
tax purposes. 

Size of specific income or loss. — For a frequency 
distribution of returns with certain sources of in- 
come or loss in adjusted gross income, returns were 
segregated according to the size of the specified 
income or loss. To provide adequate classification 
of small amounts, size intervals are narrow at the 
lower end of the scale. 

Size of deduction. — For four significant item- 
ized deductions — contributions, interest, taxes, 
and medical deduction — returns were classified 
according to the size of each of these deductions 
for separate frequency distributions of returns 
showing these items. 

Total number of exemptions. — The total number of 
exemptions for the taxpayer, his spouse, age, 
blindness, and dependents was used for a frequency 
distribution of returns. Return frequencies are 
tabulated for each marital status and for all re- 
turns. The range for total number of exemptions 
presented is: 1 through 5 total exemptions and 6 
or more total exemptions for all returns and for 



joint returns; and 1 through 3 total exemptions and 
4 or more total exemptions in the case of separate 
returns of husbands and wives, heads of household, 
surviving spouse, and other single persons. 

States and Territories. — This classification for 
the 48 States, 2 Territories, District of Columbia, 
and Other areas was determined from the 64 internal 
revenue districts in which returns were filed and 
from the International Operations Division of the 
National Office. Internal revenue districts, or 
groups of districts, are identical with State and 
Territory boundaries except that Alaska is in the 
Seattle, Washington district and the District of 
Columbia is in the Baltimore, Maryland district. 
Although Alaska and the District of Columbia are not 
separate districts, returns with these addresses 
were classified apart from other returns in the 
respective districts. The International Operations 
Division had charge of all returns with addresses 
outside the United States, Alaska, and Hawaii. These 
returns included those from Puerto Rico, Virgin 
Islands, Canal Zone, and returns with foreign ad- 
dresses, all of which were classified as "Other 
areas. " 

This year, returns having post office addresses 
within the two Standard Metropolitan Areas of 
Detroit, Michigan, and Pittsburgh, Pennsylvania, were 
separated from other returns filed in the respective 
States. Selected data are tabulated for each metro- 
politan area. Detroit, Michigan Metropolitan Area 
embraces Macomb, Oakland, and Wayne Counties. 
Pittsburgh, Pennsylvania Metropolitan Area embraces 
Allegheny, Beaver, Washington, and Westmoreland 
Counties. 

Sources Comprising Adjusted Gross Income 

Salaries and wages (net) tabulated were amounts 
of compensation included in adjusted gross income, 
with the exception of wages (less than $200 per 
return) that were reported in other income on returns. 
Form 1040A. Net salaries and wages excluded pay- 
ments covering an absence from work because of 
sickness or personal injury. Also, travel, trans- 
portation and other expenses connected with employ- 
ment were deducted from gross salaries and wages if 
they were excludable from adjusted gross income. 
(See definition of adjusted gross income page, 18. ) 
Gross salaries and wages prior to these adjustments 
comprised the full amount of wages, salaries, fees, 
commissions, tips, bonuses, and other forms of pay- 
ment for services performed for the employer, in- 
cluding value of merchandise or property received in 
payment, as well as the reimbursed expenses received 
by the employee from his employer. 

Dividends (after exclusions) were the domestic and 
foreign dividends reported in adjusted gross income 
on returns, Form 1040. These dividends comprised: 

1. Qualifying domestic dividends consisting of — 

a. Dividends from fully taxable corporations, 
received directly, or as a beneficiary of income 
from estates and trusts, or as a partner' s share of 
untaxed partnership net profit, together with 

b. The entire net profit of an entrepreneur 
who elected to be taxed as a corporation, and the 
entire share of net profit from any partnership that 
elected to be so taxed, the total of which was re- 
duced by an exclusion not exceeding $50, and 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



19 



2. Nonqualifying dividends, foreign and domestic, 
from which no exclusion was permitted. 

On joint returns, if both husband and wife received 
qualifying dividends, each excluded up to $50 against 
his respective dividends. Nonqualifying dividends 
were those from life or mutual insurance companies, 
China Trade Act corporations, certain corporations 
doing business in possessions of the United States, 
and foreign corporations. 

Dividends did not include the so-called "dividends" 
on deposits or withdrawal accounts in mutual savings 
banks, cooperative banks, domestic building and loan 
or savings and loan associations. Federal savings 
and loan associations, and Federal credit unions. 
All such receipts were considered interest for in- 
come tax purposes. 

Interest received was tabulated from returns, Form 
104-0, only. This item included interest from bonds, 
debentures, notes, mortgages, and personal loans, 
interest received or credited on bank deposits, 
savings accounts, and deposits in the organizations 
mentioned above, as well as partially tax-exempt 
interest and interest from tax-free covenant bonds 
received directly or through partnerships and 
fiduciaries. 

Business net profit or net loss was reported by 
individuals who were sole proprietors of a business, 
farm, or profession, and who did not elect to be 
taxed as a corporation. When there were two or 
more sole proprietorship activities during the year, 
the single amount of profit or loss tabulated in 
adjusted gross income represents the combined 
profits and losses from all business activities. 
The sole proprietor was required to exclude divi- 
dends from the business receipts and to report 
them with dividends for the purpose of dividend 
exclusion and tax credit. 

Business expenses deductible from business re- 
ceipts included such items as cost of goods sold, 
salaries and wages paid employees, interest on 
business indebtedness, taxes on business and busi- 
ness property, bad debts arising from sales or 
services, depreciation including the additional 
first-year depreciation, obsolescence, depletion, 
casualty losses on business property, rent, repairs, 
supplies, advertising, selling expenses, insurance, 
and other costs of operating the business. Com- 
pensation of the sole proprietor was not allowed 
as business expense and the net operating loss 
deduction was not reported among the business de- 
ductions. 

Partnership net profit or net loss was reported 
by persons who were members of a partnership, 
syndicate, joint venture, or association that did 
not elect to be taxed as a corporation. The part- 
ner's profit or loss from such a partnership was 
his share of the ordinary income or loss of the 
enterprise including the payments made to him as 
salary or for the use of capital. If the individual 
was a member of more than one partnership, the 
single amount of partnership profit or loss reported 
was the combination of all his shares, whether or 
not actually received. The ordinary income of the 
partnership did not include dividends qualifying 
for the exclusion, net short- and long-term capital 
gain or loss, interest on tax-free covenant bonds, 
nor partially exempt interest. The taxpayer's share 
of each of these items was reported in its respec- 
tive source. 



Net gain from sales of capital assets included in 
adjusted gross income was the amount of gain from 
sales or exchanges of property treated as capital 
assets. In computing this gain, the net short-term 
gain or loss was combined with the net long-term 
gain or loss after which the net long-term gain or 
the excess of net long-term gain over net short- 
term loss was reduced 50 percent. For the determi- 
nation of net short- and long-term gain and loss, 
the taxpayer included with his personal current-year 
transactions his five-year capital loss carryover 
as a short-term loss, and his share of (1) net 
short- and long-term gain received through fiduci- 
aries, (2) net short- and long-term gain and loss 
from partnerships, (3) distributed and undistributed 
long-term gain of regulated investment companies, 
and (4-) the excess net long-term gain over net 
short-term loss distributed by corporations that 
elected not to be taxed as such. The amount of net 
gain reported in adjusted gross income conforms to 
one of several conditions, namely, (1) 50 percent 
of the excess net long-term gain over net short- 
term loss which occurred on certain returns, (2) on 
returns with only a net long-term gain, 50 percent 
thereof, (3) on returns with both net short- and 
long-term gain, the entire amount of net short-term 
gain combined with 50 percent of the net long-term 
gain, (4-) on returns with only a net short-term 
gain, the entire net gain, and (5) the entire ex- 
cess of net short-term gain over net long-term loss 
reported on other returns. 

Net loss from sales of capital assets reported as 
a component of adjusted gross income was the de- 
ductible loss resulting from sales or exchanges of 
property treated as capital assets. To determine 
the deductible loss, all short-term gains and losses 
were merged with the long-term gains and losses, 
and the excess loss was allowed to the extent of the 
smallest of (1) amount of capital loss, (2) taxable 
income (ad justed gross income if tax table was used) 
computed without regard to capital gains and losses 
and the deduction for personal exemptions, or (3) 
$1,000. In merging the capital gains and losses, 
(1) net short- and long-term gain received through 
fiduciaries, (2) net short- and long-term gain and 
loss from partnerships, (3) distributed and undis- 
tributed long-term gain from regulated investment 
companies, and (4) the excess net long-term gain 
over net short-term loss distributed by corporations 
that elected not to be taxed as such, were combined 
with the taxpayer's current-year transactions and 
his five-year capital loss carryover. Any part of 
the capital loss incurred in the current year which 
was not deductible because of the limitation, may 
be carried forward into each of 5 succeeding years 
as a short-term capital loss until such time as it 
has been absorbed by capital gains or through the 
allowable capital loss deduction. If the capital 
loss carryover is not eliminated in the 5-year 
period, the remaining loss cannot be used. 

Short-term applied to gains and losses from sales 
or exchanges of capital assets held six months or 
less. Such gains and losses for the current year 
and the capital loss carryovers from the five pre- 
ceding years (treated as short-term losses) were 
combined to obtain the net short-term gain or loss. 
In this combination the net short-term capital gain 
or loss from partnerships and the net short-term 
capital gain from fiduciaries were also included. 



20 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Long-term applied to gains and losses from sales 
or exchanges of assets held more than six months 
which were treated as capital assets. Such current 
year gains and losses, taken into account at 100 
percent, were combined with net long-term capital 
gain or loss received through partnerships and net 
long-terra capital gain received through fiduciaries 
to obtain the net long-term gain or loss for the 
year. 

Capital loss carryover from 1953-57 was that por- 
tion of the net capital loss sustained in this 
5-year period which the taxpayer had been unable to 
offset against his capital gains, or the $1,000 
deduction allowed for capital loss in computing 
adjusted gross income in tax years subsequent to 
the year in which the capital loss arose. The 
carryover was reported with and treated as a short- 
term capital loss in the current year. 

Net loss from sales of capital assets before 
limitation was the entire loss, resulting from sales 
of property treated as capital assets, which was 
reported on returns having a capital loss in ad- 
justed gross income. The loss was a combination of 
current year short-term gains and lasses, the 5-year 
capital loss carryover, and the current year long- 
term gains and losses, and was without regard to 
the statutory limitation on the deductible capital 
loss 

Net long-term capi tai ^ain in excess of net short- 
term capital loss was the entire excess long-term 
capital gain reported on returns with alternative 
tax. 

One-half excess long-term gain was one-half of 
the excess of net long-term capital gain over net 
short-term capital loss. It was also the amount of 
capital gain included in adjusted gross income 
which, in the alternative tax computation, is sub- 
tracted from total taxable income to obtain the 
amount subject to partial tax, that is, to the 
normal tax and surtax rates. The 25 percent tax on 
capital gains was obtained by multiplying one-half 
excess long-term gain by 50 percent. The sum of tax 
computed at the normal tax and surtax rates and the 
capital gains tax equals the total tax obtained by 
the alternative tax method. 

Net gain or net loss from sales of property other 
than capital assets reported in adjusted gross in- 
come resulted from sales or exchanges of property 
which were not treated as capital assets. The 
entire amount of net gain from these transactions 
was included, and the net loss was fully deducted, 
in computing adjusted gross income. 

Pensions and annuities reported in adjusted gross 
income were only the taxable portion of amounts 
received during the income year. These taxable 
receipts were reported under two methods: (I) the 
general rule, referred to as the life-expectancy 
method, and (II) the three-year method. 

The life-expectancy method included the entire 
receipts from noncontrlbutory annuities and pensions, 
that is, where the employee contributed none of the 
cost, and also included the taxable portion of 
receipts from contributory pensions and annuities 
if the cost would not be recovered within 3 years. 
Receipts from such contributory annuities were in- 
cluded in adjusted gross income to the extent that 
they exceeded an amount, representing cost, computed 
according to the actuarial formula provided by the 
Income Tax Regulations. Once the excludable cost 
has been determined, it remains constant throughout 



the annuitant's lifetime. Contributory pensions 
and annuities were those where the employee contri- 
buted to the cost or was previously taxed on his 
employer's contribution and those received, for 
reason other than death of the insured, under an 
annuity, endowment, or life insurance contract. 

The three-year method included taxable receipts 
from contributory pensions and annuities, but only 
if the employer also contributed to the cost and the 
employee's cost would be returned in 3 years or less. 
If both conditions were met, all receipts were ex- 
cluded from gross income until the employee recovered 
the amount contributed by him plus contributions ' 
made by his employer on which the employee was pre- 
viously taxed. Thereafter, all amounts received 
became fully taxable. This method also applied to 
an employee's beneficiary if the employee died 
before receiving any annuity or pension payments. 

Net income or net loss from rents and royalties 
comprising a part of adjusted gross income was 
reported as a single item in the schedule provided 
for this purpose on the return. Consequently, the 
net income or loss available for tabulation repre- 
sented a combination of the income from both types 
of investments. Rents included not only rentals 
from real estate but also amounts received from 
renting any kind of property including farm rentals 
received in cash or crop shares. Royalties Included 
revenues from copyrights, patents, trademarks, 
formulas, natural resources under lease, and the 
like. Deductions against the gross receipts re- 
ceived from these investments were claimed for 
maintenance, repairs, interest, taxes, depreciation 
and depletion, obsolescence, and other expenses 
pertaining to the respective income. 

Income or loss from estates and trusts was the 
taxpayer's share of fiduciary income from any 
estate or trust under which he was a beneficiary. 
Income from estates and trusts included amounts 
required to be distributed and amounts credited to 
the beneficiary's account from current year fidu- 
ciary income, whether or not actually received by 
him, as well as amounts paid to him. It also in- 
cluded his share of any accumulation distribution 
made by the fiduciary of a complex trust which 
distributed income accumulated in prior tax years. 
The beneficiary's share of estate and trust income 
was reduced by his share of depreciation before 
reporting the amount as part of his adjusted gross 
income. The taxpayer excluded from his fiduciary 
income his share of capital gain, dividends quali- 
fying for the exclusion, and partially exempt 
interest, each of which was reported in its respec- 
tive source. A loss from estates and trusts was 
distributed to the beneficiary only upon termina- 
tion of a trust or an estate which had a net 
operating loss carryover, or a capital loss carry- 
over, or for its last tax year had deductions 
(other than exemption and charitable deduction) in 
excess of gross income. 

Other sources of income included such items as 
alimony received, prizes, awards, sweepstakes win- 
nings, gambling profits, recovery of bad debts and 
taxes deducted in a prior year, insurance received 
as reimbursement for medical expenses taken in a 
previous year, and any other income subject to tax 
for which no entry was provided on the return form. 
A new item reported in other sources was the tax- 
payer's share of distributed or undistributed 
current-year taxable income (exclusive of long-term 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



21 



capital gain) received from a small business corpo- 
ration which elected not to be taxed as a corporation. 
A total of $38,880,000 consisting of interest, 
dividends after exclusions, and wages not subject 
to income tax withholding was also included. Such 
income not exceeding $200 per return was reported 
in one sum as other income on 580,765 returns. 
Form 104-OA. For the purpose of a balanced adjusted 
gross income on returns. Form 1040, where a net 
operating loss deduction was claimed in computing 
adjusted gross income, the amount reported in other 
sources was reduced by the amount of net operating 
loss deduction. 

Income attributable to several tax years which was 
reported by the taxpayer in his current year return 
was included in its entirety, even though the in- 
come was earned over a period of time including 
prior tax years and thereby afforded special tax 
treatment. Income attributable to several tax years 
originated from (a) back pay received for work per- 
formed in previous years, if the back pay exceeded 
15 percent of gross income for the tax year, (b) 
inventions or artistic works, the creation of which 
required not less than 2K months and for which in- 
come received in the current year was at least 80 
percent of the aggregate gross income received for 
the work, and (c) compensation received for long- 
term services performed by an individual or a 
partner over a period of 36 months or more, if the 
amount received within the tax year was at least 80 
percent of the total compensation received for the 
services. For income tax purposes, such income was 
spread over specified periods, and the tax on the 
amount received in the current year was limited to 
the additional taxes that would have been paid for 
the years involved if the compensation had been in- 
cluded ratably in income over the period of the 
services. 

In addition to the earned income mentioned above, 
two other types of income had tax treatment that 
spread or averaged the income over a number of 
years. Gain realized from lump-sum payment at 
maturity of endowment or life insurance contracts 
was spread one-third in the current year and each 
of the two preceding years to determine the minimum 
income tax. An accumulation distribution from a 
complex trust, also, was thrown back to the tax 
years in which the income was deemed to have been 
received by the trust, if this method resulted in 
a lower income tax to the beneficiary. Regardless 
of these tax adjustments, the entire amount of such 
income reported by the taxpayer was tabulated in 
whatever source reported. 

Itemized Nonbusiness Deductions 

Contributions deductible from adjusted gross in- 
come consisted of gifts to organizations created in 
the United States or its possessions, or under our 
laws, and operated for religious, charitable, 
scientific, literary, or educational purposes ex- 
clusively, or for the prevention of cruelty to 
children or animals, and gifts made to veterans' 
organizations or to governmental agencies which use 
the gifts for public purposes. Individuals who 
were members of a partnership also included their 
pro rata share of contributions made by their part- 
nerships. The deduction could not exceed 20 percent 
of the adjusted gross income, except that an addi- 
tional amount, not in excess of 10 percent of 



adjusted gross income, was allowed for contributions 
made to churches, conventions or associations of 
churches (including the Salvation Army), tax-exempt 
educational institutions, tax-exempt hospitals, 
and certain organizations engaged in continuous 
medical research in conjunction with hospitals. 
Under specified conditions, there was an unlimited 
deduction for contributions. 

Interest paid was deductible interest paid on 
personal debts, mortgages, bank loans, and install- 
ment purchases of real or personal property, but 
did not include interest on money borrowed to buy 
tax-exempt securities or single premium life in- 
surance and endowment contracts. Interest relating 
to business, royalties, and rentals was reported in 
those schedules. 

Taxes allowed as a deduction from adjusted gross 
income included personal property taxes, State in- 
come taxes, certain State and local retail sales 
taxes. State gasoline taxes, automobile license 
fees, taxes paid to foreign countries or possessions 
of the United States unless a foreign tax credit 
was claimed, and real estate taxes except those 
levied for improvements that tended to increase the 
value of the property. Federal taxes were not de- 
ductible. Taxes paid on business property were 
reported in the business and rent and royalties 
schedules. 

Medical and dental expense was allowed as a de- 
duction from adjusted gross income with limitations. 
Expenditures considered for this deduction were the 
actual amounts paid during the tax year regardless 
of when the expense arose, for the health care of 
the taxpayer, his spouse, dependents, and any other 
person who could be claimed as a dependent except 
for the fact that he or she had $600 or more gross in- 
come or filed a joint return with his or her spouse. 
Such expenses included payments to physicians, sur- 
geons, dentists, nurses, oculists, chiropractors, 
osteopaths, hospitals, premiums paid on health and 
hospital insurance, cost of x-rays, laboratory fees, 
diagnoses, therapy treatments, psychiatric care, den- 
tures, crutches, hearing aids, and so on. Any sick 
and health insurance or hospital coverage received 
reduced the total medical expenses. The amount paid 
for drugs and medicines could be included in medical 
expenses only to the extent that it exceeded 1 per- 
cent of adjusted gross income. The deductible 
expense for medical care and drugs was the amount of 
such expenses in excess of 3 percent of adjusted 
gross income, if within the maximum limitation for 
this deduction. 

The maximum deduction allowed was ^2,500 multi- 
plied by the number of exemptions other than those 
for age and blindness, but could not exceed $10,000 
for husband and wife filing a joint return, for 
head of household, or for surviving spouse, nor 
could it exceed $5,000 for other single persons or 
married persons filing separate returns. However, 
there were special rules for any person who was 65 
years or over and for a married couple who filed a 
joint return if either was 65 or over. In these 
cases, the medical deduction for the taxpayer and 
spouse was not limited to the excess of 3 percent 
of adjusted gross income, but their medical ex- 
penses were allowed in full. Nevertheless, for 
other limitations for drugs and medicines, for 
dependent's medical expenses, and for maximum de- 
duction remained the same as set out above, unless 
the taxpayer or spouse was disabled. If 65 years 



22 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



or over and disabled, head of household, surviving 
spouse, other single persons, and married persons 
filing separate returns were allowed a maximum 
deduction not in excess of $15,000. If on a joint 
return, only one spouse was 65 or over and disabled, 
the maximum was still $15,000. If both were 65 or 
over and both disabled, the maximum allowance was 
$30,000, but no more than $15,000 medical expense 
for each could be taken. 

Other deductions included all other authorized 
nonbusiness deductions against adjusted gross in- 
come not elsewhere reported. Form 1040 for 1958 
did not carry a separate schedule for child care 
nor for casualty losses. Therefore, other deduc- 
tions included the limited deduction for child care 
paid by employed women and widowers; loss from 
theft; casualty losses resulting from fire, storm, 
and other physical forces; and uninsured casualty 
and theft losses of business property and capital 
assets held for production of income for more than 
6 months. Other deductible items were payments of 
alimony; expenses incurred in the collection of 
income or for management, conservation, or mainte- 
nance of property held for production of income 
subject to tax; taxpayer's share of interest and 
taxes paid by a cooperative apartment corporation; 
gambling losses not in excess of winnings reported 
in income; amortization of bond premium; expenses 
connected with taxpayer's employment, for example, 
dues to unions or professional societies, cost of 
tools and supplies for the job, and fees to employ- 
ment agencies; allowable expenses of taxpayer in 
connection with his employer's business which were 
in excess of the reimbursed amounts deducted from 
gross salaries; and expenses of education undertaken 
to maintain or improve skills required to perform 
duties of present employment status. 

Exemptions 

A deduction was allowed for personal exemption, 
exemption for dependents, and additional exemptions 
for age and blindness, in computing taxable income. 
The per capita exemption was $600 for the taxpayer 
and for his spouse if a joint return was filed, and 
for each son or daughter (including stepchild or 
adopted child) who was under 19 years of age or who 
was a student regardless of age, if the taxpayer 
furnished more than half of the support. If the 
child was 19 or over and not a student, exemption 
was allowed only if the child had less than $600 
gross income and the taxpayer met the support test. 
Also a per capita exemption was allowed for each 
dependent, specified below, with less than $600 
gross income who received more than half of his 
support from the taxpayer. To qualify as a depen- 
dent, the individual must have been a citizen or 
resident of the United States, or a resident of 
Canada, Mexico, Panama Canal Zone, the Republic of 
Panama, or under certain circumstances the Republic 
of the Philippines. Special provision was made in 
the 1958 Technical Amemdments Act for an exemption 
for an alien child adopted and living in the home 
of parents who are citizens residing abroad. 

Additional exemptions of $600 for age 65 or over 
and $600 for blindness were allowed for the tax- 
payer and, if a joint return was filed, the 
taxpayer's spouse. These additional exemptions 
were not allowed for dependents. 

If the income and dependency qualifications and 
the support test were met, an exemption of $600 



was allowed for parent, grandparent, or other 
direct ancestor; grandson, granddaughter, or other 
direct descendant; brother, sister, half brother, 
half sister; stepmother, stepfather, stepbrother, 
stepsister; mother-in-law, father-in-law, brother- 
in-law, sister-in-law, son-in-law, daughter-in-law; 
uncle, aunt, nephew, or niece if related by blood; 
and any person who lived in the taxpayer's home 
for the entire year and who was a member of his 
household, whether or not related to the taxpayer. 
Birth or death during the year did not eliminate a 
dependent if the support and other tests were met 
for the part of the year during which the dependent 
lived. 

An exception to the support test for a dependent 
provided that where an individual was supported by 
several persons none of whom contributed more than 
half, any one of the group who had contributed more 
than 10 percent of the total support could claim 
the exemption if each of the others who had contri- 
buted more than 10 percent, declared in writing that 
he would not claim the exemption for the year. 

The number of exemptions and amount claimed, 
shown in this report, contain exemptions for all 
returns and include the exemptions automatically 
allowed through use of the tax table. There is 
some duplication of exemptions because (a) dependents 
with less than $600 gross income containing wages 
subject to income tax withholding filed a return to 
claim refund of tax, and (b) children dependents 
under 19 years of age and dependent children 19 
years or over, who had gross income of $600 or more 
filed a return since their income met the require- 
ment for filing. Exemptions claimed on returns 
filed by these dependents were tabulated, as well as 
exemptions for the same dependents reported on re- 
turns of taxpayers rightfully claiming the depen- 
dents. 

Measures of Individual Income 

Adjusted gross income was gross income from all 
sources subject to income tax minus (a) ordinary 
and necessary expenses of operating a trade or 
business, (b) deductions attributable to rents and 
royalties, (c) expenses of outside salesmen attri- 
butable to earning salary or other compensation, 
(d) expenses of travel, meals, and lodging while 
away from home over night paid by an employee with 
respect to services rendered, (e) transportation 
costs related to the performance of services as an 
employee, (f) expenses paid or incurred in connec- 
tion with service as an employee under a reimbursed 
or other expense allowance arrangement with the 
employer, (g) exclusion for sick pay if the sick 
pay was included in gross salary, (h) depreciation 
and depletion allowed life tenants and income bene- 
ficiaries of property held in trust, (i) deductible 
losses from sales of capital assets and other 
property, (j) deduction equal to 50 percent of the 
excess of net long-term capital gain over net-short- 
term capital loss, and fk) net operating loss 
deduction. 

Adjusted gross deficit occurred in the event that 
the deductions allowed for the computation of ad- 
justed gross income, stated above, exceeded the gross 
income. 

Taxable income was adjusted gross income minus 
deductions, standard or itemized, and personal ex- 
emptions. The amount of taxable income shown 
throughout this report includes fa) the taxable in- 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



23 



come reported on Form 104-0 by taxpayers who itemized 
their nonbusiness deductions, regardless of the 
amount of adjusted gross income, and by taxpayers 
with $5,000 or more adjusted gross income who used 
the standard deduction, all of whom entered their 
taxable income on the return and (b) a mechanically 
computed amount of taxable income for taxpayers who 
were not required to enter the amount of taxable 
Income on the return. Taxpayers who did not enter 
taxable income on the return itself were (1) those 
with adjusted gross income under $5,000 whose tax 
was determined from the tax table, whether filed on 
Form 1040 or 1040A, and (2) those with adjusted 
gross income of $5,000 under $10,000 who filed Form 
lO'+OA and computed the income tax, using standard 
deduction and regular tax rates, in a tax computa- 
tion schedule which they retained. The taxable 
income was not required to be transferred to the 
card-form itself. 

In order that so significant an item as the tax 
base be presented for all taxpayers, the taxable 
income was computed for each return which lacked 
this important amount. Taxable income for tax- 
payers who employed the tax table was computed by 
(a) using the midpoint of the adjusted gross income 
bracket of the tax table into which the adjusted 
gross income fell as the amount of adjusted gross 
income, (b) providing a 10 percent standard deduc- 
tion based on the midpoint, and (c) allowing $600 
for each exemption claimed. This formula produced 
the amount of taxable income upon which the tax- 
payer's tax was based by way of the tax table. 
Taxable income for taxpayers with adjusted gross 
income of $5,000 under $10,000 who filed Form 1040A 
was computed by (a) using the total income re- 
ported, (b) deducting 10 percent of the total 
income as the standard deduction but limited to 
$500 in the case of a separate return of husband 
or wife, and (c) allowing $600 for each exemption. 
This formula provided the amount of taxable income 
used by the taxpayer in his retained tax computa- 
tion schedule. If these computations resulted in 
a negative amount of taxable income, it was not 
used. Taxable income computed for the above tax- 
payers is the only item in the tabulations which 
was not reported on the return themselves. 

Taxable income for partial tax, which occurred 
only on returns where the alternative tax was im- 
posed, was tabulated for the first time this year. 
Taxable income for partial tax was that part of 
taxable income subjected to normal tax and surtax 
rates in the computation of alternative tax. The 
amount of taxable income for partial tax was the 
regular taxable income reduced by an amount equal 
to fa) 50 percent of the net long-term capital 
gain, or (b) 50 percent of the excess of net long- 
term capital gain over the net short-term capital 
loss. Therefore, it excluded all long-term capital 
gain, but included the net short-term capital gain 
which was taxed at normal tax and surtax rates 
along with ordinary income. 

Tax Items 

Income tax rates on 1958 income remained the 
same as for the previous year, that is, 20 percent 
of the first $2,000 of taxable income, increasing 
to 91 percent of taxable income in excess of 
$200,000 for all persons except heads of household, 
in which case the maximum rate applied to taxable 



income in excess of 4-300, 000. Under the split- 
income provision, however, the 91 percent rate was 
effective only on taxable income in excess of 
$400,000 on joint returns and returns of surviving 
spouse. In any case, the maximum income tax before 
credits was limited to 87 percent of the taxable 
income. 

Income tax before credits was based on taxable 
income and calculated at the prescribed rates. It 
was either the regular normal tax and surtax com- 
bined, or tax from the tax table, or the alternative 
tax, before such amounts were reduced by tax 
credits. It did not include the self-employment 
tax. 

Normal tax and surtax was the income tax based 
on taxable income, computed at the regular rates, 
that is, the 3 percent normal tax rate combined 
with the graduated surtax rates. Regular normal 
tax and surtax occurred on returns where tax was 
determined from the tax table, whether Form 1040 
or 104-OA, and on other Form 1040 returns if the al- 
ternative tax was not applicable. 

Alternative tax was imposed in the case of tax- 
payers who had an excess of net long-term capital 
gain over net short-term capital loss, but only if 
the alternative tax was less than the regular normal 
tax and surtax. The alternative tax method of 
computation was the sum of (1) a partial tax com- 
puted at the regular rates on taxable income 
reduced by 50 percent of the excess long-term cap- 
ital gain over net short-term capital loss, and 
(2) an amount equal to 25 percent of the entire 
excess. Alternative tax was not effective on tax- 
able income under $36,000 reported jointly or by 
surviving spouse, $24,000 reported by head of 
household, nor $18,000 reported by other persons 
on separate returns. 

Tax credit for dividends received was allowed 
for qualifying domestic dividends included in ad- 
justed gross income. This tax credit was 4 percent 
of such dividends but could not exceed the smaller 
of (a) income tax reduced by foreign tax credit, 
or (b) 4 percent of the taxable income. 

Tax credit for retirement income was allowed 
against the income tax if the taxpayer qualified 
with respect to earned income in prior years. This 
tax credit was 20 percent of the retirement income, 
as defined by the Code, with a maximum credit of 
$240 for each retiree. If eligible, both husband 
and wife claimed the credit on a joint return. 
However, the credit could not exceed the income tax 
reduced by the two interest credits, foreign tax 
credit, and dividends received credit. 

Tax credit for foreign tax paid was permitted 
against the income tax only if nonbusiness deduc- 
tions were itemized and the foreign tax excluded 
from those deductions. The credit related to in- 
come and profits taxes paid to foreign countries 
or possessions of the United States, and included 
the taxpayer's share of such taxes paid through 
partnerships and fiduciaries. This tax credit was 
limited to the same proportion of the income tax 
before credits as the taxable income from foreign 
sources bore to the entire taxable income, but 
could not exceed the amount of foreign tax paid. 

Other tax credits were those for tax paid at 
source on interest from tax-free convenant bonds, 
and credit for partially tax-exempt interest, al- 
lowed only if nonbusiness deductions were itemized. 
Also included was any "throwback tax credit" 



24 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



claimed, on either standard or itemized deduction 
returns, by a beneficiary of an accumulation dis- 
tribution from a complex trust. 

Credit was allowed for tax withheld at source by 
the issuing corporations on tax-free covenant bond 
interest. The issuing corporation was required to 
withhold 2 percent of the total interest earned. 
The taxpayer also included his share of this credit 
alloted to him through partnerships and fiduciaries. 

Partially tax-exempt interest credit, allowed for 
interest on certain securities of the United States, 
was 3 percent of the amount of partially exempt 
interest included in adjusted gross Income reduced 
by the itemized deduction for amortization of bond 
premium on the bonds. But the credit could not ex- 
ceed the smaller of (a) 3 percent of the taxable 
income, or (b) income tax reduced by the credits 
for foreign tax paid and for dividends received. 

The throwback tax credit was the beneficiary's 
pro rata portion of taxes paid by a complex trust 
in preceding tax years. Taxes paid on accumulation 
distributions deemed distributed in prior years 
were not refunded to the trust but were allowed as 
a credit against the tax of the beneficiaries to 
whom distributions were made. Credit in excess of 
total tax liability of the beneficiary was treated 
as an overpayment and as such was refundable. 

Income tax after credits was the amount of income 
tax liability reported on the return exclusive of 
the self -employment tax. It was after the deduc- 
tion of all tax credits, but prior to the year-end 
adjustments for tax withheld from wages and payments 
on declaration of estimated tax which determined 
the overpayment of tax due status. Income tax after 
credits was the criteria for classifying taxable 
and nontaxable returns. 

Self -employment tax was reported by each indivi- 
dual who had self-employment income derived from 
solely owned trade or business and from his share 
of partnership income even though the enterprises 
elected to be taxed as a corporation. Certain 
types of income and deductions were not allowed in 
computing self -employment earnings, such as invest- 
ment income, capital gain or loss, net operating 
loss deduction, and casualty losses. The maximum 
amount subject to social security self-employment 
tax was $'+,200, although this maximum was reduced 
by the amount of wages received on which the so- 
cial security employee tax had been withheld by 
an employer. No exemption was allowed against the 
self-employment income subject to tax and the tax 
rate was 3 3/8 percent. This tax was paid regard- 
less of the taxpayer's age and even though social 
security benefits were received. 

Tax withheld, most of which was the income tax 
withheld from wages, also included the excess 
social security employee tax and credit for tax paid 
by a regulated investment company on undistributed 
capital gain. Income tax withheld from wages by 
employers was prescribed in withholding tables or 
was increased by agreement between employer and em- 
ployee. Withholding of social security employee 
tax in excess of $94.50 occurred in some cases 
where the employee worked for more than one employer 
during the year. Income tax on capital gain re- 
tained by a regiilated investment company was paid 
by the company and the taxpayer was allowed tax 



credit or refund for his proportionate share of the 
tax. 

Payments on 1958 declaration of estimated income 
tax were reported only on Form 1040. Payments on 
declaration also included the credit for an over- 
payment of the 1957 tax liability. Whether a 
taxpayer made payments on a declaration depended 
on the balance of estimated tax due after deducting 
his CI) estimated income tax to be withheld and (2) 
credit for prior-year tax overpayment. The prior- 
year tax overpayment credit was carried directly 
to Form 1040. Many declarations were nontaxable 
in the first instance. Others had no balance of 
estimated tax after deducting the estimated income 
tax to be withheld. Still others had a balance of 
estimated tax after deducting the estimated income 
tax to be withheld, but this balance was less than 
the prior-year tax overpayment credit. None of 
these taxpayers made payments on the declaration, 
although in the last type of case, the taxpayer 
carried the prior-year overpayment credit to his 
Form 1040. On declarations where a balance of es- 
timated tax due remained after deducting (1) the 
estimated income tax to be withheld and (2) the 
prior-year tax overpayment credit, the taxpayer 
made payments on the declaration. The prior-year 
overpayment credit and the payments on declaration 
were reported in one sum on Form 1040. 

In general, a taxpayer whose income consisted of 
wages subject to income tax withholding and not more 
than $100 of other income was required to file a 
Declaration of Estimated Tax, Form 1040-ES, if 
gross income could reasonably be expected to exceed 
(a) $10,000 in the case of a head of household or 
surviving spouse, (b) $5,000 in the case of other 
single persons or a married person filing sepa- 
rately, and (c) $5,000 in the case of a married 
person entitled to file a joint declaration and the 
combined income of husband and wife exceeded $10,000. 
Also, if income from sources other than wages sub- 
ject to income tax withholding could reasonable be 
expected to exceed $100, a declaration was required 
if total income was estimated to exceed $600 multi- 
plied by the number of total exemptions, plus $400. 

Tax due at time of filing was reported if the 
income tax withheld from wages and the payments on 
declaration (together with other items included 
therein) plus all current year tax credits were 
less than the income tax before credits combined 
with the self -employment tax. 

Overpayment of tax occurred when the sum of all 
tax credits, income tax withheld from wages, and 
payments on declaration (as previously described) 
exceeded the combined income tax before credits 
and the self-employment tax. On Form 1040A, an 
overpayment of tax resulted in a refund. On Form 
1040, the taxpayer who overpaid his tax could 
elect to receive: (1) a refund, (2) a credit on 
the subsequent year's estimated tax, or (3) a com- 
bination refund and credit. 

Refund of tax included all overpayments on Form 
1040A returns and the portion of overpayment which 
taxpayers requested as refund on returns, Form 1040. 

Credit on 1959 tax was the amount of 1958 tax 
overpayment on returns. Form 1040, which the tax- 
payers specified be credited toward their estimated 
income tax for 1959. 



BASIC TABLES 
INDIVIDUAL RETURNS. 1958 



Page 



1. Number of returns, adjusted gross income, taxable income, and 

income tax,- by adjusted gross income classes and classes 
cumulated 27 

2. Sources of income and loss by returns with standard or item- 

ized deductions 28 

3. Sources of income and loss and nonbusiness deductions, by 

adjusted gross income classes 29 

4-. Sources of income and loss, exemptions, taxable income, and 
tax items — all returns , joint returns, and returns of single 
persons not head of household or surviving spouse, by ad- 
justed gross income classes 30 

5. Returns with itemized deductions — adjusted gross income, item- 

ized deductions, exemptions, taxable income, and tax items, 

by adjusted gross income classes U2 

6. Number of returns for selected sources of income or loss by 

size of source <M- 

7. Number of returns for specified nonbusiness deductions by 

size of deduction 48 

8. Returns with taxable income — taxable income, income tax, and 

tax credits, by taxable income classes for applicable tax 
rates 50 

9. Returns with income tax — adjusted gross income, taxable in- 

come, income tax, average tax, and effective tax rate, by 
adjusted gross income classes and types of income tax 52 

10. Adjusted gross income, exemptions, taxable income, Eind in- 

come tax — all returns, returns with standard deduction, and 
returns with itemized deductions, by adjusted gross income 
classes and by marital status of taxpayer 53 

11. Number of returns by adjusted gross income classes, by total 

number of exemptions, and by marital status of taxpayer.... 59 

12. Capital gains and losses, short- and long-term, and capital 

loss carryover, by adjusted gross income classes 62 

13. Returns with self -employment tax — adjusted gross income, in- 

come tax, and self-employment tax, by adjusted gross 

income classes 6<+ 

14-. Returns with self-employment tax — adjusted gross income and 

self-emplojrment tax, by States and Territories 65 

15. Selected sources of income, adjusted gross income, taxable in- 

come, and income tax, by States and Territories 66 

16. Adjusted gross income and income tax, by adjusted gross income 

classes and by States and Territories 67 



25 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



27 



Table 1.— NUMBER OF RETURNS, ADJUSTED GROSS INCOME, TAXABLE INCOME, AND INCOME TAX, BY ADJUSTED GROSS INCOME CLASSES AND CLASSES CUMULATED 

[Taxable and nontaxable returns J 



ADJUSTED GROSS INCOE CLASSES 



$600 under $1,000 

$1 ,000 under $1 , 500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $3,500 

$3,500 under $4,000 

$4,000 under $4,500 

$4,500 under $5,000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $9,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15.000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total 

Returns with no adjusted gross 
Grsnd total 



CUMULATED FRCM LOWEST ADJUSTED GROSS INCCME CLASS 
Returns with adjusted gross income: 



Under 



■ $1,000.. 

■ $1,500.. 

■ $2,000.. 

■ $2,500.. 
$3,000.. 
$3,500.. 
$4,000.. 
$4,500.. 
$5,000.. 

■ $6,000.. 

■ $7,000.. 

■ $8,000.. 

• $9,000.. 

• $10,000. 
000. 



• $20 



Under $100,000. 



Under 



$150,000... 
$200,000... 
$500,000... 
$1,000,000. 



Returns with no adjusted gr 
Total returns 



CUMJLATED FROM HIGHEST ADJUSTED GROSS INCCME CLASS 



$500,000 . 
$200,000 ( 
$150,000 . 
$100,000 ( 



$10,000 < 
$9,000 o: 
$8,000 01 
$7,000 O! 
$6,000 oi 
$5,000 01 
$4,500 oi 
$4,000 01 
$3,500 01 
$3,000 oi 
$2,500 oi 
$2,000 oi 
$1,500 01 
$1,000 01 
$600 or 1 
All retui 
Returns wi- 
Total retui 



i, 950,030 
1,060,247 
,120,276 
1,570,536 
1,689,218 
1,723,909 
1,742,848 
1,729,578 
1,745,242 
1,639,977 
1,375,555 
,676,947 
1,226,844 
',171,701 
,452,594 

,488,095 
583,262 
264,732 
369,939 
91,715 
14,080 



58,700,924 
334,258 



1,950,030 
',010,277 
,130,553 



5,278,1 
7,449,' 
10,676,: 
15,353, 
a,729,( 

25,369,1 
29,114,; 
32,843,1 
36,586,' 
40,310,1 
43,999,1 
47,570,. 
51,690,1 
54,750,1 
58,700,1 



1,276,547 
2,446,545 
5,130,735 
6,238,242 
8,309,041 

10,228,363 
12,151,696 
13,993,172 
15,906,540 
17,284,356 
34,898,888 
30,257,563 
24,101,749 
18,379,327 
13,746,399 



1,647,892 
661,634 

1,114,707 
359,724 
499,249 



282,166,418 
^1,012,326 



957,554 
1,556,491 
2,383,725 
3,424,1 
4,464,313 
5,556,243 
6,869,989 
7,757,425 
16,561,375 
15,725,994 
13,646,249 
11,059,382 
3,773,922 
20,026,941 
7,484,786 
4,552,214 
9,974,924 
4,987,211 

1,348,600 
529,512 
862,534 
274,855 
364,825 



38,062 
190,127 
305,682 
466,973 

671,815 
885,734 
1,112,033 
1,382,118 
1,563,208 
3,336,990 
3,177,815 
2,778,601 
2,273,624 
1,822,007 



689,633 
291,744 
515,853 

174,941 
233,159 



149,337,414 



'281,154,092 



357, 'JO.. 


„ 




586,642 


50 


c 


331,384 


56 


R 


971,361 


63 





347,416 


73 


8 


024,363 


81 


a 


251,207 


87 


3 


422,908 


91 





375, 502 


93 


5 


363,597 


97 


7 


951,859 


98 


7 


216,591 


99 


2 


586,530 


99 


3 


673,245 


99 


9 


692,:-;; 







I adjusted gross 



1,276,547 
11.9 3,723,092 

8,853,827 

15,092,069 
.'3,401,110 

33,629,473 
45,731,169 
59,779,341 
75,685,881 
92,970,237 

127,869,125 
158,126.688 
182,228,437 
200,607,764 
214,354,163 
243,563,354 
253,623,824 
259,505,231 
271,833,160 
277,883,212 
279,531,104 

;eo,i92,738 

. «,X7,445 
.31,667,169 
,82,166,413 
^1,012,326 
^231,154,092 



499,249 

358,973 

1,973,680 

2,635,314 

4,283,206 

10,333,258 

22,661,187 

28,542,594 

38,598,064 

67,812,255 

81,553,654 

99,937,981 

124,039, 7X 

154,297,293 

189,196,181 

206,430,537 

222,387,077 

236,385,249 

248,536,945 

258,765,308 

267,074, X9 
273.312,591 
278,443,326 

280,889,871 

232,166,418 

'1,012,326 

^281,154,092 



11.9 
16.2 
21.2 
26.8 
32.9 

45.3 
56.0 
64.6 

71.1 
76.0 



99.1 
99.3 
99.7 
99.8 

100.0 



18.2 
26.2 
37.0 



191,664 
1,149,218 
2,705,709 
5,089,434 
8,514,120 
12,978,' 
18,534,676 
25,404,665 
33,162,090 
49,723,465 
65,449,459 
79,097,708 
90,157,090 
98,931,012 
113,957,953 
126,442,739 
130,994,953 
140,969,877 
145,957,1 
147,305,688 
147,835,200 
148,697,734 
148,972,589 
149,337,414 



364,825 

639,680 

1,502,214 

2,031,726 

3,330,326 

3,367,537 

13,342,461 

22,394,675 

30,379,461 

50,406,402 

59,180,324 

70,239,706 

83,887,955 

99,613,949 

116,175,324 

123,932,749 

130,802,738 

136,358,931 

140,823,294 

144,247,930 

146,631,705 

143,188,196 

149,145,750 

149,337,414 

149,337,414 



33.3 
43.8 
53.0 
60.4 
66.2 
79.7 
84.7 
87.7 
94.4 
97.7 
98.6 
99.0 
99.6 
99.8 
100.0 



12.3 
15.3 
20.3 
33.3 
39.6 
47.0 
56.2 
66.7 
77.8 
83.0 
87.6 
91.3 
94.3 
96.6 
98.2 
99.2 
99.9 
100.0 
100.0 



38,062 

228,189 

533,871 

1,000,844 

1,672,659 
2,558,443 
3,670,476 
5,052,594 
6,615,802 
9,952,792 
13,130,607 
15,909,208 
18,182,832 
20,004,839 
24,296,232 
26,053,294 
27,221,837 
30,323,659 
32,430,317 
33,119,950 
33,411,694 
33,927,552 
34,102,493 
34,335,652 



233,159 
408,100 
923,958 
1,215,702 
1,905,335 
4,011,993 
7,113,815 
8,282,353 
10,039,420 
14,330,813 
16,152,820 
13,426,4 
21,205,045 
24,332,360 
27,719,350 
29,233,058 
30,665,176 
31,777,209 
32,562,993 
33.334,808 

33,301,781 
34,107,463 
34,297,590 
34,335,652 
34,335,652 



less adjusted gross defici 



28 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



-SOURCES OF INCOME AND LOSS BY RETURNS WITH STANDARD OR ITEMIZED DEDUCTIONS 

[Taxable and nontaxable returns] 



Showing adjusted gross 



Showing no adjusted gross 



Salaries and wages (net) 

Dividends (after exclusion) ; 

Interest received 

Business or profession: 

Net profit 

Net loss 

Partnership: 

Net profit 

Net loss 

Sales of capital assets: 

Net gain 

Net loss 

Sales of property other than capital assets: 

Net gain 

Net loss. 

Pensions and annuities: 

Life expectancy method 

3-year method 

Rents and royalties: 

Net Income 

Net loss 

Estates and trusts: 

Other sources 

Adjusted gross income or deficit 

See text for "Description of Sample" and "Explanation of Classificat 

^Sample variability is too large to warrant showing separately. How 

^Not available. 

^Negative "Other sources. " 

^Adjusted gross income less adjusted gross deficit. 

'Adjusted gross deficit. 



51,588,438 
4,235,017 
7,407,870 



227,550,557 
8,740,562 
3,659,211 



1,909,920 
*281,154,092 



33,184,330 
1,779,887 
3,425,729 



i, 424 ,459 
,497,949 
,353,679 



8o5,967 
.,807,4 



deleted for ■ 



92,113 
27,788 
51,825 



'280,732 
'1,012,326 



18,311,995 
2,427,342 
3,930,316 



111,929,637 
7,204,731 
2,264,674 



1,324,685 

145,358.961 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



29 



-g^«^ opr-r>-sr3 



» ? I J 












jto<^'^ SoSom or 



" ^ 












;2as 8£ipf 



oto-4-o--j •^t*-r~-D-'D coc*--jf---f iAo\irt-ju% "Aior^f^c^- 
f-ivrc^.HO -.ft-ic^TOsr ojtoOiHOj o*oc-od- r->r<>-*tcj 



5 w ^ ^ oj 8^ 



hSo^coo^ r-imc^ior- of-ooiTi rHcpt-i3co r-tntnt^-i 






1?:?:^ §§«"9 S^w^S ^^5^. ^ l^i- 












tHOOr-cn-t ■£> r-l U' f\l ■^ So^OO'fiCM -^(nCOrHrH rj'DrHO-} 






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,^^« ^^^"^ «^^^^ mil §§|§c 
i§i §§§§§ §§§§§ SSSSS o^„o? 






30 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



^ e^ 



gs 



1^ 






l^il 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



31 






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CNJUSt^ -^O^Q^-H «- 






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S'i I 



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l^sll lllsl Isssl iiiii „„„„8 M " S o«,egg gggogi, -h -o ■e--o 

OJ-adds dasad 3d333 ooooo SooS a -^c 333d3o to q SJa 

3000 ooooo QOQQO O O O d O OOOOO O !o-^ 3oOO OOOOOO O t ^-t/X* 

QJOOO OOgOO OOOOO ooooo .---o tH O-O *H OOO OOOOOO H O WMW 

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32 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



i i; 



5 ^: 












IJ. = 

2 ^ f 



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9-^*l-** W* 



at.'O'Otj -S'S-O'O'D -D'C-O-O-n CCGCC §§§§0 

t^SSSS SSSSS SSSSS 33333 ffffi 



§§ §§§§! §§§§§ 



iiii mil 



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g g g 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



33 









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s i; 



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S^ -^ 2: "^ r- «0 00 c-> St <M O D- (-\ Q O r 
o I^ ^S^^ ;g t^ '^ c^ ov o* o S in .1 






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34 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



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08 g .| S^ §§§ §§§§§S 3 I |j 






INDIVIDUAL INCOME TAX RETURNS FOR 1958 



§ s 

I I; 



Q -a 

a! I 






!iS ^^SiKS 5r 






WTO-j-> i><nov(^-4 









-j>|inf>jc> r.i3r-o r-vO^Rr 



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||111 11111 mil ^Plf 8888^ 



*SSS feSiSfei I S t8§ 

iiiii mils S ? |°-3 

g**^US SSS*S-tt ^<S^«S"S^ ^^^^SJjS. -«.^^^^ ^ ^ :§ig,5^^ ^SS^iJ.^ 5 5 5 



35 



36 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



§ 34 
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-i^c^SS n^SSS 



53&§ SgS§S SSSSS ^SSR! 
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62 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 









S%0-*TO<n F-^t^C 









rv g" <C ^* tfC p-" c 



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isfoSsd'^ rofNiQfMC^ c^i^^j-sr 






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*«»«0 e-< oj-O h OOO OOQOOO £-1 O Ml 



37 



38 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 






^goo^. CTi-JtMCOQ ->t Q ■^ ^ O O-J" 
rt'^\0'fl 0^00^^0>0 i-i rS c^ O r-t oj 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



39 



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I 



Ik 



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si I 

3^ i 



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JS 






40 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



5 s- 



Is 









I I ^^s ;3;h S 






"Be"" 

I £ '3 I -S 



i3 a 



11 i 

2 S s 









;3S 



Ik 






;;h SE; S3^ o c 



6668 : e 






islll lllll lllll 11111 ||ff§ •s .-s g^iii iiliis ■s ? fS'S 

■§ooo ooooo ooQoo SiSgS 88880 1? 34 ^SoBB oooaos « S ^** 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



41 



I 1 i 

I I; 



i 

i 

s I 



i s 

I I 



§ 3^ 



h3 TlrHOnrvJ ^C^f^l>rH O'3'M'ntb tJi O 









JS:}5 5K3S5 






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l8 : I 1 

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^S§§§ §§§§§ §§§§§ §§§§§ oogoS 



3 88S 



:^§§5 §§§§§S 






III 



42 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Adjusted gross 



Number of 

returns witl 

itemized 

deductions 



Deduction for — 



Contributions 



$600 under $1,000. . . 
$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 

$2,500 under $3 
$3,000 under $3 
$3,500 under $4 
$^,000 under $4 
$i,500 under $5 



',000 under $15,000. . 
,000 under $20,000.. 
,000 under $25,000.. 
,000 under $50,000. . 
,000 under $100,000. 



$50 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000. 
$1,000,000 or more 



Total taxable 

Nontaxable returns: 

Under $600 

$600 under $1,000... 
$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 

000. 



$2, 



500 under $3i 
000 under 
500 under $4 
000 under $4, 
500 under 
■,000 or more 

Total nontaxable return; 

Grand total 

Returns under $5,000 

Returns $5,000 under $10,000. 
Returns $10,000 or more 



67,066 
228,159 
389,618 
584,426 

744,640 

948,514 

1,147,777 

1,339,914 

1,488,801 

3,165,452 
2,581,656 

1,786,710 

1,220,225 

793,847 

1,493,724 
424,654 
213,584 
324,742 
87,960 

13,780 
3,786 
3,915 



59,809 

290,004 

690,228 

1,324,182 

2,052,010 
3,084,041 
4,317,440 
5,694,084 
7,076,597 

17,360,420 
16,709,005 
13,352,887 
10,328,247 
7,512,798 

17,673,508 
7,283,596 
4,752,609 

10,899,201 
5,816,203 

1,611,635 
648,352 

1,104,087 
354,379 
481,596 



58,217 
206,584 
362,676 
541,702 

695,472 

905,199 

1,093,645 

1,285,522 

1,440,071 

3,078,354 
2,530,482 
1,756,085 
1,203,373 
780,867 

1,473,232 
419,662 
210,280 
320,517 
86,284 

13,694 
3,743 
3,874 



18,621 
41,005 
72,167 

103,003 
148,178 
188,521 
240,248 
280,948 

634,740 
596,236 
453,201 
346,873 
252,343 

608,465 
248,775 
160,936 
373,091 
254,318 

98,895 
47,933 
113,269 
43,612 
81,248 



12,553 
77,969 
165,599 
291,205 

422 ,411 
584,575 
790,713 
987,250 
1,164,816 

2,655,626 
2,244,608 
1,594,898 
1,093,458 
707,372 

1,283,949 
326,445. 
154,281 
222,244 
56,744 



5,817 
18,009 
40,769 

62,747 
105,265 
172,196 
241,798 
321,423 

865,604 
875,957 
704', 423 
522,043 
376,656 

754,700 
232,901 
128,699 
239,518 
125,691 

37,424 
17,477 
31,361 
10,051 
5,673 



50,362 
197,375 
354,652 
543,016 

703,595 

909,959 

1,113,347 

1,313,124 

1,463,891 

3,130,926 
2,557,022 
1,776,429 
1,211,565 
783,818 

1,479,689 
419,680 
211,040 
320,085 



13,577 
3,729 
3,861 



2,938 
17,464 
39,258 
73,998 

105,281 
159,961 
223,923 
287,547 
368,698 

905,748 
861,676 
688,304 
528,412 
376,653 

895,710 
363,974 
231,540 
510,025 
262,640 

69,256 
29,302 
47,928 
13,960 
17,041 



29,656 
129,446 
239,082 
373,197 

494,778 
635,408 
743,602 
866,873 
948,682 

1,953,010 

1,539,558 

991,603 

634,443 

409,956 

681,075 
162,982 
68,322 
88,222 
25,102 



2,849 
21,577 
46,267 
85,429 

127,564 
170,242 
206,940 
257,430 
270,333 

579,626 
461,887 
308,551 
225,670 
160,398 

330,429 
123,056 

68,798 
117,877 

53,373 

9,865 
3,230 
3,956 



1,690 
12,875 
24,788 
43,983 

64,280 
88,823 
122,594 
163,937 
184,119 

433,308 
406,271 
319,538 
262,997 
162,381 

399,354 
164,212 
102,138 
223,475 
155,835 

49,685 
23,451 
42,521 
11,942 
13,076 



12,300 
76,354 
169,327 
316,346 

462,875 

672,469 

914,174 

1,190,960 

1,425,521 

3,419,026 
3,202,027 
2,474,017 
1,885,995 
1,328,431 

2,988,658 
1,132,918 

692,111 
1,463,986 

851,857 

265,125 
Ul,393 
239,035 
80,291 
117,370 



26,090 
140,525 
223,741 
223,937 
260,743 

217,750 
177,866 
156,572 
112,984 
85,478 
132,022 



8,564,601 
9,675,145 
2,571,676 



10,046 
114,491 
288,095 
387,576 
581,594 

601,568 
575,624 
583,153 
478,524 
404,646 
856,721 

,882,043 



28,613,717 
66,010,081 
50,735,163 



17,496 
110,214 
176,470 
183,324 
213,684 

191,740 
155,593 
140,875 
101,692 
79,311 
119,666 



7,959,487 
9,464,724 
2,536,142 



2,164 
10,389 
22,446 
25,230 
31,922 

31,646 
28,085 
29,500 
23,502 



1,319,624 
2,315,958 
2,058,254 



8,912 
39,182 
73,400 
94,365 
126,228 

126,091 
117,536 
116,565 



5,361,140 
8,405,150 
2,062,574 



2,129 
7,090 
15,904 
23,349 
34,693 

40,901 
41,929 
42,792 
39,459 
36,187 
87,742 

372,175 



1,253,234 
3,408,430 
1,607,490 



19,557 
110,544 
183,794 
196,272 
233,355 

197,161 
164,155 
146,320 
107,481 
81,715 
122,433 



4,066 
15,101 
33,439 
39,085 
43,456 

46,558 
44,749 
33,397 
33,230 
28,131 
67,897 



1,610,280 
3,415,033 
2,455,033 



13,023 
81,982 
142,555 
154,436 
179,469 

159,675 
125,390 
106,699 
75,960 
57,306 
91,950 

,183,450 



5,557,224 
5,617,467 
1,036,783 



3,563 
21,908 
57,176 
76,557 
84,207 

74,001 
71,413 
64,350 
42,750 
37,160 
114,056 

647,141 



1,721,716 

1,831,977 

729,353 



1,569 
5,938 
14,396 
15,686 
21,903 

18,028 
25,964 
26,475 
25,585 
25,004 
112,705 

293,753 



13,491 
60,426 
143,861 
179,907 
221,181 

211,134 
212,140 
201,514 
164,526 
144,485 
442,677 



,792,991 

12,632,246 

;, 072, 671 



for "Description of Sainple" and "Explanation of Classifications and Terms . " 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



43 



Tax credit for— 



Dividends received 



Retirement in 



Other 
dollar,) 



(2t) 



$600 under $1,000 

$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 

$2,500 under $3,003. 
$3,000 under $3,500. 
$3,500 under $4,000. 
$4,000 under $4,500. 
$4,500 under $5,000. 



$5,000 under $6,000. . 
$6,000 under $7,000.. 
$7,000 under $3,000.. 
$8,000 under $9,000. . 
$9,000 under $10,000. 



$10,000 under $15,000.. 
$15,000 under $20,000.. 
$20,000 under $25,000.. 
$25,000 under $50,000.. 
$50,000 under $100,000. 



$100,000 under $150,000 

$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000., 
$1,000,000 or more 



Total taxable returns. 



lontaxable 

Under $600 

$600 under $1,000 

$1,000 under $1,500. 
$1,500 under $2,000. 
$2,000 under $2,500. 



000. 



$2,500 under 
$3,000 under 
$3,500 under $4 
$4,000 under 
$4,500 under 
$5,000 or more 

TOi-al nontaxable : 



Returns under $5,000 

Returns $5,000 under $10,000. 
Returns $10,000 or more 



40,240 
139,965 
322,108 
586,062 

864,189 
1,319,707 
1,813,834 
2,325,909 
2,861,519 

6,711,065 
5,752,153 
4,023,722 
2,748,893 
1,749,801 

3,300,660 
948,026 
482,165 
739,123 
193,232 

29,873 



67,066 
228, 159 
389,618 
584,426 

74^,640 

948,514 

1,147,777 

1,339,914 

1,488,801 

3,165,452 
2,581,656 
1,786,710 
1,220,225 
793,847 

1,493,724 
424,654 
213,584 
324,742 
87,960 

13,780 
3,786 
3,915 



7,269 
73,685 
198,793 

421,774 

724,946 
1,091,865 
1,589,432 
2,177,215 
2,789,557 

7,230,329 
7,754,825 
6,855,148 
5,693,359 
4,434,566 

11,384,190 
5,202,652 
3,578,333 
8,696,092 
4,771,114 

1,316,637 
519,031 
856,996 

273,018 
363,784 



1,427 
14,608 
39,568 
84,048 

144,661 
218,431 
319,292 
438,355 
562,246 

1,456,033 
1,563,738 
1,390,508 
1,165,435 
917,667 

2,439,240 
1,227,475 
926,064 
2,749,888 
2,064,083 

692,763 
296,825 

531,771 
179,547 
240,487 



(1) 

11,552 
15,992 
32,159 

40,358 
44,745 
50,139 
59,234 
59,940 

120,278 
123,812 
102,196 
94,315 
84,110 

311,271 
189,039 
118,462 
223,470 
75,835 

12,438 
3,584 

3,751 



1,090 
1,271 
1,608 
1,896 



19,880 
19,169 
16,835 
51,597 
47,388 

17,532 
8,427 

15,934 
5,152 
6,972 



3,723 


150 


8,855 


453 


14,991 


1,118 


19,705 


2,426 


21,476 


2,564 


20,122 


2,680 


20,162 


3,336 



27,603 
24,577 
17,087 
12,273 
10,532 

28,325 
16,147 

9,190 
15,454 

6,541 

1,283 



3,413 
1,883 
2,034 

5,171 
3,012 
1,635 
2,830 
1,177 

238 



11,420 
8,470 
7,099 
18,642 
10,137 

2,708 
1,042 
1,251 



2,066 
1,378 
1,024 
4,268 



2,022 
1,690 

2,737 



1,420 
14,459 
39,221 
83,160 

142,771 
214,915 
315,446 
433,805 
556,941 

1,447,1 
1,554,263 
1,381,8 
1,158,751 
911,615 

2,412,048 
1,203,904 
906,520 
2,690,490 
2,010,502 

672,690 
286,382 
512,914 
173,614 
232,547 



78,004,670 



236,514 



31,785 
122,621 
262,987 
314,408 
447,777 

450,429 
421,186 
423,073 
344,047 
281,245 
495,250 



13,373,091 
21,471,042 
5,720,357 



22,398 
12,722 
12,916 
8,874 
6,491 
6,685 

109,527 



7,041,757 
9,553,997 
2,567,487 



8,503 
6,535 
6,408 
13,265 



9,133,676 
31,977,505 
36,965,894 



26,090 
140,525 
221,700 
209,329 
237,951 

195,352 
165,144 
143,656 
104,110 
78,987 
125,337 



684 
2,016 

3,030 
1,711 
1,703 
1,304 
1,283 
3,128 

14,920 



1,834,428 
6,495,239 
11,349,413 



5,764 
12,231 

12,543 
5,803 
6,789 
4,758 



8,681 
20,355 
208,899 



13,922 
21,767 

21,383 
L2,045 
12,219 
8,874 
6,152 
5,061 

103,464 



207,775 
96,820 
78,289 



1,176 
1,143 
1,179 



23,166 
16,976 

14,307 



4,754 
15,561 
61,327 



1,802,138 
6,454,205 

11,101,611 



al includes data deleted for this 



566335 O - 60 ■ 



44 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 





















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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



45 



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47 









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48 



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1,462 
2,239 

376 
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52 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Table 9 . —RETURNS WITH INCOME TAX— ADJUSTED GROSS INCOME, TAXABLE INCOME, INCOME TAX, AVERAGE TAX, AND EFFECTIVE TAX RATE, 
BY ADJUSTED GROSS INCOME CLASSES AND TYPES OF INCOME TAX 



ALL TAXABLE RETUHNS 



$600 under $1,000... 

,000 under $1,500. 

$1,500 under $2,000. 

$2,000 under $2,500. 

,500 under $3,000. 
,000 under $3,500. 
,500 under $4,000. 
,000 under $4,500. 
,500 under $5,000. 

i,000 under $6,000. 

>,000 under $7,000. 

',000 under $8,000. 

1,000 under $9,000. 
',000 under 



000. 



$50 



,000 under $15,000.. 

,000 under $20,000.. 

,000 under $25,000.. 

,000 under $50,000.. 

,000 under $100,000. 



),000 under $150,000. . . 

$150,000 under $200,000... 

$200,000 under $500,000... 

$500,000 under $1,000,000. 

.,000,000 or more 



Total . 



RETURNS WTH NORMAL TAX Affl) SURTAX 



$600 under $1,000... 

.,000 under $1,500. 

$1,500 under $2,000. 

$2,000 under $2,500. 

:,500 under $3,000. 
1,000 under $3,500. 
1,500 under $4,000. 
,000 under $4,500. 
,500 under $5,000. 

,000 under $6,000. 
1,000 under $7,000. 
,000 under $8,000. 
,000 under $9,000. 
,000 under 



,000. 



$50 



,000 under $15,000.. 

,000 under $20,000.. 

,000 under $25,000.. 

,000 under $50,000.. 

,000 under $100,000. 



0,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



RETURie WITH ALTERNATIVE TAX 



Under $15,000 

$15,000 under $20,000.. 
$20,000 under $25,000.. 
$25,000 under $50,000.. 
$50,000 under $100,000. 



$100,000 under $150,000... 
0,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
'1,000,000 or more 



Total. 



Returns under $5,000 

Returns $5,000 under $10,000. 
Returns $10,000 or more 



1,296,407 
2,127,075 
2,111,329 
2,537,591 

2,807,388 
3,062,908 
3,232,549 
3,488,552 
3,465,499 

6,224,634 
4,644,506 
3,214,399 
2,167,447 
1,451,196 

2,484,984 
587,465 
264,487 
369,515 
91,605 

14,049 
3,845 
3,937 



1,083,049 
2,683,333 
3,675,817 
5,714,958 

7,735,369 
9,957,051 
12,134,645 
14,817,446 
16,461,528 

34,086,295 
30,049,915 
24,009,958 
13,343,492 
13,733,221 

29,176,927 
10,041,825 

5,875,992 
12,313,280 

6,042,852 

1,644,279 
658, 563 

1,109,680 
356,220 
482,640 



191,196 

953,797 

1,534,510 

2,351,308 

3,390,578 
4,446,465 
5,537,377 
6,859,499 
7,749,024 

16,553,8 
15,724,265 
13,645,969 
11,059,382 
8,773,922 

20,026,310 
7,484,521 
4,551,665 
9,973,1 
4,986,906 

1,348,568 
529,147 
862,534 
274,855 
364,825 



38,062 
190,127 
305,632 
466,973 

671,815 

885,784 

1,112,033 

1,382,118 

1,563,208 

3,336,990 
3,177,815 
2,778,601 
2,273,624 
1,822,007 

4,291,393 
1,757,062 
1,163,543 
3,101,822 
2,106,658 



1,727 
2,991 
4,418 
8,394 
22,997 

49,088 
75,876 
131,028 
329,456 
987,962 



262,188,335 



752 



1,296,407 
2,127,075 
2,111,329 
2,537,591 

2,807,388 
3,062,908 
3,232,549 
3,488,552 
3,465,499 

6,224,634 
4,644,506 
3,214,399 
2,167,447 
1,451,196 

2,484,984 
587,363 
261,306 
344,196 
46,794 



1,083,049 
2,683,333 
3,675,817 
5,714,958 

7,735,369 
9,957,051 
12, IX, 645 
14,817,446 
16,461,528 

34,086,295 
30,049,915 
24,009,953 
18,343,492 
13,733,221 

29,176,927 
10,039,791 

5,804,355 
11,291,464 

3,003,517 

554,530 
179,397 
250,142 
66,374 
125,539 



191,196 

953,797 

1,534,510 

2,351,308 

3,390,578 
4,446,465 
5,537,377 
6,859,499 

7,749,024 

16,553,1 
15,724,265 
13,645,969 
11,059,382 
8,773,922 

20,026,310 
7,482,641 
4,488,554 
9,094,440 
2,430,167 

440,786 
133,365 
181,446 
45,661 
72,097 



466,973 

671,815 

885,784 

1,U2,033 

1,382,118 

1,563,: " 

3,336,990 

3,177,815 
2,778,601 
2,273,624 
1,822,007 

4,291,393 
1,756,468 
1,147,015 
2,774,855 
1,024,621 

235,337 
82,659 

122,740 
35,714 
59,435 



1,727 
2,990 
4,390 
8,062 
21,1 

47,313 
78,873 
135,774 
368, 186 
1,265,638 



254,978,113 



U3, 172, 119 



692 



3,181 
25, 319 
44,811 

9,075 
2,797 
3,033 



(') 

71,637 
1,021,816 
3,039,335 

1,089,749 
479,166 
859,533 
289,846 
357,101 



63,111 

878,646 

2,556,739 

907,732 
390, 232 
681,088 
229,194 
292,728 



(') 

21,528 

326,967 

1,082,037 

454,296 
209,085 
393,118 
139,227 
173,674 



50,060 
74,753 
129,614 
320,800 
918,910 



7,210,222 



31,487 



24,129,298 
17,702,182 
3,820,654 



74,263,196 
120,222,881 
67,702,253 



33,013,754 
65,757,398 
50,402,417 



6,615,302 
13,389,037 
14,330,813 



See text for "Description of Sample" and "Explanation of Classifications and Terms." 

^Sample variability is too large to warrant showing separately. However, the grand total includes data deleted for this 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



53 












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54 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



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53 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



55 



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56 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



i?3 









R8S 8S8S8 S88_S°- 



l|iii mil mil §§§55 

3000 OQOOO OOQOQ SoSSo 
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QOO OOQQO 



!5§§§ §§§§§S 3 ? 
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3^«>«»*» «»«»«»*i«i-» 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



57 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



i?| s ^ 



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INDIVIDUAL INCOME TAX RETURNS FOR 1958 

Sm^Jh!^ hS^SS ° In oj fv) ?5 oi tS ^ rg oj ° f^ pa r! I^ S fR f^ ™ S 


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59 



60 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



1^ 
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l*-*^** « » > i o w i ■«» 



88888 °.°.°,8 : S 
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INDIVIDUAL INI30ME TAX RETURNS FOR 1958 



61 






jS^toF^ f^SSSc 






•««>«■■«> -«■-»»■■«'-«■■«■ » > « ft « 



58888 °.°A8 : U 






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|«|ll lllllg = 

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62 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 

















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INDIVIDUAL INCOME TAX RETURNS FOR 1958 



63 



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64 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



Table 13.— RETURNS WITH SELF-EMPLOYMENT TAX— ADJUSTED GROSS INCOME, INCOME TAX, AND SELF-EMPLOYMENT TAX, BY ADJUSTED GROSS INCOME CLASSES 



Adjusted gross . 



Number of 


Adjusted 


Income tax 


Silf 


returns with 


gross 


after 


employment 


self- 


income 


credits 


tax 


employment 








tax 


Ml.,.) 


'ZTi'.Z'') 


(Thovattnd 
doll.t.) 


(1) 


(2) 


(3) 


(4) 


69,815 


58,246 


1,971 


1,959 


150,908 


195,036 


9,138 


5,724 


214,477 


376,308 


23,391 


10,861 


288,012 


648,884 


37,815 


17,862 


325,492 


895,803 


57,487 


23,993 


335,623 


1,092,826 


71,021 


28,973 


353,909 


1,325,759 


95,613 


33,029 


378,865 


1,606,688 


120,445 


40,026 


322,125 


1,531,941 


125,128 


34,318 


532,202 


2,914,980 


267,752 


57,085 


365,150 


2,357,611 


240,111 


40,492 


259,488 


1,933,776 


223,289 


30,278 


216,803 


1,833,994 


225,711 


26,073 


159,265 


1,510,549 


198,911 


19,697 


397,020 


4,772,620 


711,813 


51,671 


163,201 


2,802,686 


502,894 


22,084 


80,333 


1,781,513 


366,438 


11,063 


106,000 


3,496,839 


906,823 


14,525 


23,573 


1,557,123 


565,047 


3,253 


3,669 


436,044 


188,409 


507 


956 


163,071 


74,918 


128 


852 


238,735 


113,585 


112 


97 


63,638 


31,952 


13 


39 


75,963 


36,802 


5 


4,747,874 


33,675,633 


5,196,464 


473,731 


57,684 


'99,906 


- 


2,738 


229,026 


101,973 


. 


5,168 


378,899 


302,044 


_ 


10,296 


468,425 


572,172 


- 


17,469 


334,625 


589,747 


- 


16,927 


263,133 


591,717 


- 


15,848 


184,904 


501,451 


_ 


13,304 


153,318 


494,886 


_ 


12,986 


94,303 


355,463 


_ 


9,051 


48,254 


201,042 


_ 


5,180 


28,971 


136,364 


- 


3,134 


27,915 


172,845 


- 


3,336 


2,269,457 


^3,922,798 


- 


115,437 


7,017,331 


^37, 598,431 


5,196,464 


589,168 


4,680,768 


^11, 481,444 


542,009 


308,346 


1,560,118 


10,710,127 


1,155,774 


176,888 


776,445 


15,406,860 


3,498,c*l 


103,434 



Taxable returns: 

$600 under $1,000 

$1,000 under $1,500., 
$1,500 under $2,000., 
$2,000 under $2,500., 



,500 under $3, 



000., 



000., 



,500 under $5; 
sOOO under $6,( 
1,000 under $7,( 
',000 under 
1,000 under 
',000 under $10,000., 



,000 under $15,000. . 
,000 under $20,000.. 
,000 under $25,000.. 
,000 under $50,000.. 
,000 under $100,000. 



$10 

$15 

$20 

$25 

$50 

$100,000 under $150,000... 

$150,000 under $200,000... 

$200,000 under $500,000... 

$500,000 under $1,000,000. 

$1,000,000 or more 



Total taxable returns. 



Under $600 , 

$600 under $1,000. 
$1,000 under $1,50( 
$1,500 under $2,00( 
$2,000 under $2,50( 



$2 



500 under $3,i 
,000 under $3, 

500 under $4,i 
,000 under $4, 

500 under $5,i 
>,000 or more.. 



Total nontaxable ■ 



irns under $5,000.. 
Returns $5,000 under ; 
irns $10,000 or mo: 



See text for "Descriptl' 
^Adjusted gross deficit 
^Adjusted gross 



I of Sample" and"Explanation of Classifications and Terms." 
less adjusted gross deficit. 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



65 



Table 14.— RETURNS WITH SELF-EMPLOYMENT TAX— ADJUSTED GROSS INCOME AND SELF -EMPLOYMENT TAX, BY STATES AND TERRITORIES 

[Taxable and 



States and Terri 



Adjusted 
gross incom 
less deficit 



Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

District of Columbii 
Florida 

Georgia 

Illinois 

Indiana 

Kansas 

Kentucky 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 



5,052 
34,668 
89,699 
513,983 

80,939 
76,150 
U,232 
16,908 
152,069 

121,148 
17,008 
44,632 
413,140 
195,197 

268,264 
157,292 
152,551 
82,751 
38,114 

86,995 
135,628 
252,204 
225,630 

76,785 

223,587 
46,316 

133,671 
11,877 
20,532 

186,339 
30,908 
560,142 
198,840 
73,945 

325, 354 
124,564 
83,435 
358,098 

24,811 

74,793 
78,949 
142,757 
387,547 
31,863 

19,319 
126,453 
106,014 

51,205 
218,585 

18,032 



414,083 
34,680 
243,940 
298,318 
3,839,499 

482,913 
515,784 
83, 394 
149,509 
893, 373 

574,396 
111,724 
213,518 
2,471,624 
922,571 

1,205,904 
703,347 
550,682 
472,283 
163,498 

538, 304 
815,029 
1,392,517 
919,329 
254,939 

980,244 
234,530 
608,333 
37,856 
106,008 

1,231,557 
180,710 

3,871,609 
672,907 
296,604 



268,827 
295, 64A 
541,216 
2,105,261 
178,989 

78,201 
553, 396 
716,717 
202, 176 

929, 342 



3,502 
5,8U 
50, 117 

7,307 
7,325 
1,172 
1,511 
12,660 

8,859 
1,36A 
3,354 
37,365 
16,461 

23,213 
12,581 
9,933 
6,808 
2,725 

7,831 
12,346 
22,155 
17,250 

4,566 

16,843 
4,023 

11,630 
1,150 
1,755 

18,526 
2,395 
53,323 
12,440 
6,231 

27,542 
9,454 
7,632 

33,460 
2,010 

4,311 
6,285 
8,989 
31,116 
2,685 

1,458 
8,891 

10,031 
3,390 

17,243 

1,408 



United States'' 

See text for "Description of Sample" and "Explanation of Classifications and Terms." 
^Returns of citizens of Puerto Rico who are also citizens of United States, nonresid 
Zone or Virgin Islands, and citizens abroad. 

^Includes Territories of Alaska and Hawaii and other areas listed in footnote 1. 



iding in Puerto Ric 



of United States : 



66 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



-SELECTED SOURCES OF INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, AND INCOME TAX, BY STATES AND TERRITORIES 

[Taxable and nontaxable returns] 



States and Te 



Dividends 
(after 



Combined 
partnership 



Combined 
net gain 
and loss 
from sales 
of capital 



(1) 



(2) 



M 



(9) 



(10) 



Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delairare 

District of Columbia. 

Florida 

Georgia 

Illinois 

Indiana - . . . . 

Kansas 

Kentucky 



Maine 

Maryland 

Massachusetts 

Michigan, total 

Detroit standard metropoli 
Remainder of State 



Minnesota. . . 
Mississippi. 
Missouri .... 

Montana 

Nebraska .... 

Nevada 

New Hampshir< 
Neu Jersey. . 
New Mexico. . 
New York 



Pennsylvania, total... 
Pittsburgh standard 
Remainder of State.. 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 



798,233 

46,476 

357,947 

437,224 

5,380,726 

577,895 

942.535 

152,585 

331,081 

1,420,349 

1,007,090 

215,402 

213,093 

3,717,343 

1,521,475 

947,704 

735, 522 

833,388 

815,793 

335,518 

1,147,038 

1,965,671 

2,575,775 

1,275,178 

1,300,597 

1,141,280 
414,701 

1,439,689 
225,722 
496,852 
101,535 
222,377 

2,218,235 
261.903 

6,411,995 

1,236,162 
206,125 

3,300,687 
698,374 
586,487 

4,056,485 
860,346 

3,196,139 
314,252 
571,968 
224,344 
990,437 

2,776,751 
270,570 
128,313 

1,199,987 
964,507 
560,207 

1,353,315 
111,200 
119,297 



2,779,641 
254,300 
1,365,060 
1,159,447 
23,727,656 
2,124,748 
4,153,354 
711,856 
1,367,407 
4.711,378 
3,457,977 
756,912 
643,006 
16,033,985 
5,833,200 
2,612,140 
2,367,545 
2,592,825 
2,961,744 
1,005,710 

4,831,623 
7,686,864 
10,947,201 
5,986,069 
4,961,132 
3,815,858 
1,155,133 
5,112,595 

626,810 
1,327,388 

443,577 

772,787 
9,970,770 

967,385 
27,429,449 

3,627,303 

442,031 

13,736,643 

2,277,336 

2,187,418 

15,746,951 

3,627,773 

12,119,178 

1,170,517 

1,753,740 

474,219 

3,144,535 

9,942,140 

1,030,651 

377,907 

4,324,186 

4,037,081 

1,918,390 

4,856,128 

399,499 

409,212 



43,611 
19,871 
909,013 
33,806 
300,702 
105,592 
61,171 
303,950 
87, 551 
20,008 
11,924 
541,436 
111,599 
61,345 
52,952 
79,488 
68,474 
62,404 
148,946 
422,312 
288,274 
159,114 
129,160 

127,831 
19,449 

214,722 
19,852 
36,612 
14,188 
29,357 

369,363 

14,090 

1,612,696 

104,416 
10,300 

468,440 
60,760 
75,834 

765,860 
182,955 
582.905 
61,858 
40,018 
9,256 
76,195 
267,855 
19,069 
20,006 

136,631 
90,335 
54,237 

169,241 

11,078 
33,046 



25,355 
1,637 
29,759 
14,511 
550,987 

48,962 
65,749 
5.972 
24,767 

182,340 
33,562 
7,840 
15,134 

193.456 
69,942 
65,404 
45,540 
23,338 
35,749 
17,756 
73,092 

121,999 

176,899 
86,322 
90,577 
82,744 
10,710 
30,512 
16,145 
25,438 
3,221 
14,689 

120,377 
12,985 

493,669 

39,458 
10,552 

169,435 
23,774 
54, 531 

150,430 
30, 570 

119,910 
20,250 
14,575 
11,117 
33, 503 

141,965 
14,225 
8,066 
45,111 
82,311 
11,995 

103,017 
11,736 
7,032 



208,130 
10,814 
116,208 
165,921 
1,976,423 

264,098 
303,386 
38,758 
54,633 
431,817 
306,288 
49,004 
143, 9b9 
1,486,057 
538,161 

778,977 
412,624 
295,090 
208,455 

81,610 
312,759 
527,735 
745,390 
326,485 
413,905 
522, 394 
111,603 
549,779 
147,872 
410,560 

44,173 

69,287 
674,624 

78,626 
1,940,503 

393,638 
202,278 
1,035,820 
273,183 
247,808 

1,202,651 
245,474 
957,177 
77,032 
141,045 
191,203 
241,318 
1,106,490 
85, 807 
45,556 

263,513 
389,252 
117,827 
551,995 
40,925 
^349 



131.659 
13,383 
60,997 
66,536 
1,101,615 
121,152 
122,423 
13,309 
47,391 
188,945 
141,858 
25,503 
30,170 
629,136 
173,184 

221,185 
124,344 
123,353 
145,507 
15,722 
127,997 
168,211 
355,950 
187,671 
168,279 
185,840 
62,429 
204,817 
45,163 
93,742 
15,121 
15,356 
341,346 
42,208 
1,234,631 

126,627 
53,764 
372,033 
117,659 
161,261 
573,691 
106,984 
466,707 
19,777 
50,921 
39,526 
152,029 
514,531 
39,455 
11,055 
117,236 
201,751 
41,869 
133,060 
17,964 
2,021 



31,141 
2,912 
55,115 
30,067 

625,314 
43,262 
81,061 
12,634 
19,764 

202,896 
55,065 
8,905 
27,505 

272,743 
76,377 

115,469 
54,095 
38,175 
47,293 
13,630 
53,829 
98,370 

131,451 
63,219 
68,232 

100,046 



40,734 
17,741 
9,673 

123,195 
17,100 

623,450 
46,611 
14,946 

160,315 
44,017 
60,493 

173,927 
42,996 

130,931 
16,015 
14,266 

32,663 
50,523 

235,484 
17,041 
8,051 
49,795 
69,230 
18,702 

100,711 
19,964 
11,231 



17,858 
27,377 

445,207 
43,929 
38,056 
4,036 
19,965 
83,271 
30,833 
15,943 
9,623 

236,696 
65,328 
68,018 

105,117 
37,577 
96,307 



51,707 
32,360 
103,424 
62,053 
41,371 
49,182 
40,590 
94,748 
21,420 
62,457 

12,265 

2,311 
63,488 
23,553 

119,158 
59,744 
12,805 

173,432 
30,887 
35,320 

133,409 
40,429 
92,980 
6,320 
25,941 

15,' 
44,1 
346,859 
8,701 
2,353 
46,846 
48,282 
22,123 
74,762 
10,507 
4,236 



3,291,834 
285,361 
1,712,650 
1,507,479 
29,770,013 
2,755,736 
5,141,238 
909,922 
1,655,251 
6,269,910 



3,967,906 
3,197,240 
3,251,131 
3,606,286 
1,223,815 

5,660,245 
9,202,549 

12,921,648 
6,959,170 
5,962,473 
4,964,750 
1,443,458 
6,399,( 

912,288 

2,013,793 

566, 527 

931,225 

11,863,692 
1,137,707 

34,017,074 

4,455,781 

761,562 

16,310,287 
2,933,377 
2,836,326 

18,967,329 
4,321, 

14,646,221 
1,389,8 
2,058,384 

789,833 
3,784,554 
12,697,359 
1,231,6 

483,167 
5,051,267 
4,985,990 
2,211,208 
6,120,661 

514,613 

434,241 



1.515.229 

176,356 

850,296 

636,210 

16,569,586 

1,460,339 

3,041,304 

531,657 

982,414 

3,067,503 

1,941,444 

457,552 

428, 354 

11,282,683 

3,720,036 

1,993,281 
1,629,411 
1,575,718 
1,785,097 

582,094 
3,083,139 
4,953,339 
6,991,099 
3,968,799 
3,022,300 
2,518,019 

534,140 
3,405,471 

454,727 
1,007,842 

325,475 

472,565 
6,731,995 

586,380 
18,569,948 
1,821,959 

336,166 
3,987,155 
1,424,447 
1,539,619 

10,253,154 

2,450,521 

7,802,633 

737,228 

844,443 

367,703 

1,756,789 

6,561,319 

591,267 

216,703 

2,528,751 

2,792,723 

1,070,733 

3,172,724 

270,776 

216,049 



341.908 
38,812 
194,233 
143,410 
3,816,218 

329,270 
719,754 
153,451 
231,221 
718,672 
437,015 
101,791 
93,716 
2,622,089 
825,964 
435,864 
362,454 
351,212 
412,281 
128,329 

635,079 

1,124,516 

1,607,459 
927,239 
680,170 
565,036 
127,704 
731,955 
100,269 
223,876 
76,320 
101,790 

1,539,359 
130,050 

4,494,095 
405,310 
73,364 

2,040,652 
325.006 
343,661 

2,367,996 
563,715 

1,799,231 
171,729 
181,999 
80,214 
405,425 

1,540,539 
127,678 
47,254 

558,767 
622,938 
237,411 
700,507 
59,940 
45,417 



57 



United States^ 59,079,620 227,618,223 8,764,981 3,663,373 20,672,665 



See text for "Description of Sample" and "Explanation 
^Returns of citizens of Puerto Rico who are also citi; 
Zone or Virgin Islands, and citizens abroad. 
^Net loss exceeded net profit. 
^Includes Territories of Alaska and Hawaii and other i 



332,646 3,214,103 281,251,669 149,400,911 34,350,979 57 



of the United State 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



67 



Table 16.— ADJUSTED GROSS INCOME AND INCOME TAX, BY ADJUSTED GROSS INCOME CLASSES AND BY STATES AND TERRITORIES 

[Taxable and nontaxable returns] 



Adjusted gross 



No adjusted gross inci 

Under $1,000 

$1,000 under $2,000.. 
$2,000 under $3,000.. 
$3,000 under $4,000.. 
$4,000 under $5,000.. 

000 under $6,000.. 
000 under $7,000.. 
000 under $8,000. . 
000 under $9,000. . 
000 under $10,000. 



$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000... 
$200,000 under $500,000. . . 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



No adjusted gros: 

Under $1,000 

$1,000 under $2 
$2,000 under $3 
$3,000 under $4 
$4,000 under $5 

$5 



$8 



$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000. . . 
$200,000 under $500,000. . . 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



No adjusted gros: 

Under $1,000 

$1,000 under $2 
000 under $3 
000 under $4 
000 under $5 



000 under $6,000.. 
000 under $7,000.. 
000 under $8,000.. 
000 under $9,000.. 
000 under $10,000. 



$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000. . . 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



No adjusted gross 

Under $1,000 

$1,000 under $2 
$2,000 under $3, 
$3,000 under $4 
$4,000 under $5 



$5 



000 under $6,( 

000 under $7,( 
000 under 

000 under $9,000. . 

000 under $10,000. 



000. 



$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



111,195 
117,456 
131,773 
107,410 
89,547 

85,826 
48,938 
31,127 
22,551 
14,087 

23,566 



58,440 
176,763 
328,367 
375,779 
401,295 
470,449 
316,052 
232,389 
190,764 
133,695 

275,653 
80,985 
44,111 

131,039 
56,270 
9,423 



31,280 
26,814 
24,809 

17,753 



33,122 
20,645 
3,891 
2,106 
2,284 

2,776 



4,490 
3,629 
3,911 
2,847 
3,121 
3,483 

6,821 

1,029 

469 



■'1,667 
2,717 
5,856 
9,895 
10,447 
19,924 
19,822 
25,308 
21,488 
26,190 
32,751 



2,175 
3,124 
2,659 
3,276 
3,855 



35,511 
45,523 
43,981 

43,066 
33,614 
20,363 
11,803 
10,070 
14,341 
3,590 
1,927 
2,395 



•^26,308 
22,479 
67,232 
89,268 
159,483 
196,707 

233,833 
217,860 
152,970 
100,805 
96,333 
167,601 
61,422 
42,569 
77,542 
30,943 
8,772 



18,210 
20,464 
16,724 
11,807 
12,033 
24,041 
10,366 
8,295 
20,023 
11,025 
3,511 
1,436 
1,996 



4,495 
82,410 
78,241 
79,033 
61,495 
40,353 
30,299 
18,396 
15,236 



8,379 
2,173 
1,186 
1,646 



'7,161 
44,035 
116,448 
195,425 
213,575 
133,458 
164,442 
118,101 
113,712 
68,977 
46,562 

98,262 
37,574 
25,740 
55,788 
17,000 



out 



31,697 
519,293 
591,364 
535,762 
578,180 
613,351 
606,917 
509,389 
390,638 
282,827 
195,142 
362,028 
78,220 
30,823 
41,642 
10,675 
1,357 
434 



'32,723 

272,925 

375,336 

1,337,943 

2,032,237 

2,772,843 

3,326,601 

3,299,824 

2,918,376 

2,395,649 

1,848,246 

4,249,068 

1,330,824 

684,603 

1,378,314 

706,276 

163,237 

74,327 

115,231 

31,227 

39,549 



31,174 
158,895 
249,835 

315,786 
342,529 
324,461 
236,754 
242,469 
617,818 
232,868 
136,914 
352,041 
244,534 
64,959 
31,633 
50,798 
15,760 
19,074 



6,496 
67,983 
63,604 
63,111 
75,034 
76,613 
59,485 
43,309 
31,789 
24,709 
12,863 
25,177 
5,314 
2,642 
3,395 



'13,135 
36,503 
104,201 
168,062 
261,500 
344,320 
327,391 
312,931 
237,675 
209,676 
120,962 

295,508 
90,311 
58,335 
133,775 
46,503 
10,780 
4,790 
6,862 
3,236 



5,394 
10,789 
19,488 
29,723 



43,138 
16,005 
12,014 
33,621 
16,034 

4,550 
2,200 
3,368 
1,661 



98,278 
99,163 

90,917 

110,754 

119,315 

133,131 

76,906 

59,817 

46,955 

26,068 

47,568 

12,019 

6,034 

9,395 

2,237 

326 



51,252 
145,277 
232,288 
387,399 
536,796 
727,775 
501,288 
443,977 
398,167 
246,962 
559,276 
205,950 
133,802 
318,088 
149,281 
38,875 
17,151 
34,696 
10,463 
9,282 



8,478 
17,811 

38,171 
54,051 

74,753 
55,877 
54,336 
50,876 
33,621 
83,010 
35,227 
27,085 
82,396 
52,983 
16,1 

16,213 
5,605 
3,959 



(M 

12,346 
17,619 
20,650 
16,878 
18,431 

17,583 
11,320 
8,361 
9,348 
3,801 
8,628 
2,403 
1,209 
1,106 



5,967 
25,734 
51,016 
59,344 
82,630 
95,456 
77,570 
62,561 
84,485 
36,242 

102,751 
41,521 
26,776 
36,860 
36,341 

5,811 
6,937 
17,904 
17,605 
40,892 



'909,922 



District of Columbi! 



43,691 
45,815 
46,542 
29,874 
20,748 
12,587 
12,050 
8,299 
18,057 
5,092 
2,187 
2,517 



(M 
16,386 

74,304 
107,745 
162,199 
209,742 
163,147 
134,566 
95,000 
101,730 
79,423 
215,196 
87,529 
48,473 
81,984 
45,721 

12,984 
4,777 

10,583 
1,112 
3,519 



19,887 
16,305 
11,666 
14,544 
10,066 
33,674 
16,017 
9,828 
21,208 
15,937 
5,490 
2,091 
4,735 



15,389 
175,228 
214,813 
217,978 
202,220 
162,670 

133,361 
94,194 
55,337 
41,442 
23,760 

49,661 
13,740 
7,735 
9,367 
2,324 
335 



'31,651 
93,792 
318,647 
541,561 
704,445 
730,319 
728,611 
609,555 
412,391 
350,085 
224,316 
590,430 
237,085 
172,527 
318,277 
152,418 
39,727 
15,113 
35,913 
13,174 
13,175 



11,065 
27,313 
40,051 
53,517 
61,918 
63,756 
46,781 
42,506 
27,667 
84,279 
40,750 
34,048 
80,407 
53,267 
16,386 
6,386 
16,364 
5,387 
5,604 



6,753 

127,704 

171,519 

155,571 

140,770 

122,974 

89,209 

56,773 

41,521 

30,541 

16,477 

28,182 

8^661 

4,220 

4,997 

1,014 



718,672 



257,945 
383, 349 
491,232 
550,707 
487,385 
368,212 
310,756 
258,263 
154,359 
329,362 
150,956 

93,443 
169,083 

66,701 

15,653 
7,295 
5,789 
4,966 



8,604 
17,492 
31,815 
44,158 
42,353 
37,004 
34,144 
32,020 
19,300 
47,690 
25,273 
17,966 
40,939 
22,762 
6,422 
3,322 
2,584 
2,512 



31,505 
36,036 
30,235 
34,703 
21,000 

15,684 
10,599 
12,325 

7,058 



(1) 

. 17,244 
51,009 
76,823 

123,097 
93,539 
85,892 
68,177 
92,111 
59,557 

104,769 
34,081 
18,190 
38,239 
14,763 

(') 
1,016 
1,373 



1111 



(M 

27,949 
30,032 
32,350 
30,249 
25,864 
19,684 
17,933 
7,440 
5,913 



Total. 



108,554 
115,813 
55,516 
50,236 
41,252 

69,133 

37,541 
13,304 
23,328 



end of table. See 



for "Deseriptii 



'32,876 
204,433 
620,162 
982,614 
1,551,002 
2,043,970 

2,384,321 

2,074,764 

1,884,079 

1,446,954 

1,250,406 

2,321,497 

734,328 

450,459 

981,153 

406,917 

162,010 

48,023 

77,337 

33,692 

14,991 

'19,640,236 



and "Explanation of Clasaifi 



1,836 
4,215 
6,952 
9,701 
9,679 

11,551 
6,572 
6,366 
5,374 

10,334 
6,614 
2,591 
5,972 
2,470 
1,942 
243 
409 



21,234 
331,751 
416,959 
393,367 
441,398 
453,762 

434,440 

319,560 

251,960 

171,093 

132,188 

199,212 

43,136 

20,303 

28,857 

6,179 

1,324 

282 

278 



2,254 
29,358 
73,175 
139,232 
200,670 
249,693 
220,723 
223,074 
183,289 
168,686 

344,953 
130,071 
91,918 
255,233 
149,586 
74,677 
22,340 
36,897 
17,732 
8,028 



10,236 
179,047 
176,123 
186,430 
198,696 
209,414 

131,005 
133,058 
75,696 
46,975 
42,683 
57,210 
11,045 
5,037 
7,100 
1,411 

189 



'16,733 
91,999 
261,494 
466,766 
694,192 
939,860 
993,415 
358,670 
563,920 
397,214 
403,262 

665,904 
188,622 
111,742 
235,272 
91,419 
22,359 
10,582 
13,716 
3,867 
6,752 



10,222 
32,022 
53,245 

84,251 



100,136 
34,622 
23,076 
62,269 
34,019 

9,968 
5,072 
6,966 
1,725 
2,806 



9,539 

121,479 

138,503 

136,965 

117,539 

123,159 

98,825 

70,090 

48,635 

25,954 

16,599 

26,013 

6,188 

3,455 

3,827 



'19,015 
68,058 
201,430 
346,297 
407,245 
551,600 
540,796 
450,635 
363,686 
219,865 
155,757 
306,196 
106,798 
77,168 



8,017 
2,434 
5,216 



68 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



16. —ADJUSTED GROSS INCOME AND INCOME TAX, BY ADJUSTED GROSS INCOME CLASSES AND BY STATES AND TERRITORIES- 

[Taxable and nontaxable returns] 



No a 1 justed gross 

Under $1,000 

$1,000 under $2 
$2,000 under $3 
$3,000 under $*; 
$A,000 under $5 



000. 



000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000... 

$200,000 under $500,000 

$500,000 under $1,000,000. 

$1,000,000 or more 

Total 



No adjusted gross 

Under $1,000 

$1,000 under $2,0 
$2,000 under $3,0 
$3,000 under $i,0 
$^,000 under $5,0i 



000 under $6. 



000 I 



$7, 



$10, i 



000 under 

000 under $9,000 

000 under $10,000 

,000 under $15,000 

,000 under $20,000 

,000 under $25,000 

,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 

$1,000,000 or more 

Total 



No adjusted gross 

Under $1,000 

$1,000 under $2 
$2,000 under $3 
$3,000 under $4 
$4,000 under $5 



$5, 



000 

000 under $6,000 

000 under $7,000 

000 under $8,000 

000 under $9,000 

000 under $10,000... 

1,000 under $15,000.. 

,000 under $20,000.. 

1,000 under $25,000.. 

,000 under $50,000.. 

1,000 under $100,000. 



$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 

$1,000,000 or more 

Total 



,000 ■ 



,000. 



$2,000 under $3,i 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000. . . 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



7,793 
101,031 
111,617 
36,994 
90,514 
90,943 
75,176 
53,660 
42,329 
20,266 
17,160 
24,635 
6,243 
2,866 
3,454 



4,238 
124,540 
145,735 
146,644 
134,442 
135,975 
116,525 
99,193 
69,142 
46,069 
32,805 

66,148 
12,641 
4,842 
6,528 
1,321 



^14,565 
53,617 
166,055 
217,873 
315,277 
403,809 
410,361 
347,558 
314,637 
172,015 
162,740 
283,274 
107,369 
64,928 
113,477 
47,509 
6,802 
3,787 
9,022 
1,645 



^4,825 
64,571 
216,491 
366,315 
463,765 
608,854 
637,021 
642,953 
515,361 
390,085 
312,351 
780,063 
215,597 
106,932 
212,437 
36,075 
19,329 
7,654 
10,010 
2,660 
1,036 



7,309 
12,076 
22,302 
35,578 
36,939 
35,195 
37,326 
21,433 
21,292 
42,694 
19,529 
13,343 
29,022 
17,372 

3,103 

1,774 

4,350 

701 



10,394 
24,335 
36,055 
56,703 
59,103 
68,683 
62,013 
49,382 
40,952 
115,425 
38,072 
21,633 
53,285 
30,503 



1,147,038 '5,660,245 

Michigan — Continued 



8,174 

164,961 

163,060 

133,394 

166,461 

139,414 

140,091 

112,916 

67,946 

43,115 

33,743 

47,315 

9,035 

3,968 

5,426 

1,239 

153 



4,455 
31,876 
32,137 
33,915 
28,230 
29,525 
21,357 
11,963 
9,694 
6,565 
4,435 



Remainder of Stat' 
^12,442 
83,166 
235,292 
345,523 
581,508 
354,646 
767,095 
731,766 
506,618 
407,025 
313,269 



84,469 
17,982 

9,050 
19,151 

6,960 
26,013 



Montana 
^7,543 
16,863 
46,739 
33,095 
96,480 
131,222 

118,136 
77,477 
72,214 
54,982 
42,072 

31,813 
33,338 

16,802 



9,499 
19,867 
41,137 
73,330 
69,643 
77,101 
54,204 
50,946 
42,090 

81,425 
27,747 
17,374 
45,119 



10,237 
3,191 
7,846 
7,612 
5,302 

11,984 
5,816 
3,545 

11,403 

2,192 

146 



Total. 



4,760 

137,239 

133,067 

121,483 

111,450 

103,496 

76,247 

47,596 

30,729 

19,469 

14,399 

20,365 

5,600 

2,022 

4,015 

767 



6,500 
234,324 
233,989 
259,113 
273,543 
261,652 

202,006 
158,309 
114,295 
65,376 
42,995 



145,928 

142,321 

139,392 

116,291 

87,387 

53,474 

36,946 

24,293 

36,056 

9,030 

4,150 

6,529 

1,330 

163 



5,422 
65,414 
77,571 
78,432 
73,380 
60,415 

44,683 
29,810 
19,714 
11,304 
3,449 

13,710 
3,735 
1,752 
2,659 



^19,778 
76,895 
194,330 
301,824 
390,052 
465,233 
416,321 
305,310 
228,411 
163,460 
U0,723 

240,031 
95,712 
44,880 
131,761 
49,963 
9,901 
4,539 
7,117 



^11,352 

120,158 

351,151 

647,293 

955,382 

1,171,521 

1,107,257 

1,023,226 

853,156 

553,997 

405,201 

762,919 

304,516 

193,777 

431,525 

225,800 

48,432 

21,490 

27,681 

3,390 

1,024 



•^19,182 
83,113 
235,797 
369,318 
496,143 
623,342 
633,330 
566,713 
393,710 
310,425 
230,648 

423,793 
155,369 
92,639 
212,034 
35,677 
19,591 
8,538 
16,538 
7,796 
3,813 



'4,433 
35,557 
113,755 
196,906 
257,564 
269,237 

244,726 
193,882 
147,936 
96,527 
79,878 

162,236 
64,891 
38,937 
86,787 
18,499 
10,116 
1,048 
3,269 



5,625 
16,692 
29,432 
40,658 
40,390 
31,250 
26,276 
20,275 
13,966 
34,222 
16,417 
3,673 
32,878 
17,739 
4,410 
2,126 
3,533 



1,393 
19,840 
53,539 
87,012 
106,303 
103,699 
107,054 
97,637 
69,613 
51,263 
110,367 
51,694 
37,650 
107,140 
75,693 

13,663 
9,153 

11,620 
4,159 



1,042 
11,535 
24,056 
40,552 
56,904 
53,449 
56,176 
42,947 
36,384 
30,394 

59,940 
25,303 
18,146 
50,750 
23,386 
7,577 
3,675 
7,402 
3,635 
1,133 



5,071 
11,740 
18,566 
23,527 
23,199 
19,300 
17,035 
12,107 

9,956 
24,559 
12,093 

8,150 
24,175 

6,999 

4,341 

453 

1,475 



6,081 
99,650 
113,259 
125,879 
109,794 
97,25 
74,492 
65,040 
39,260 
21,122 
13,305 
29,472 
7,135 
3,155 



13,997 
301,753 
297,436 
250,152 
292,039 
362,380 
294,007 
232,793 
160,481 
111,768 

76,099 
123,034 

24, 594 
9,947 

15,677 

3,665 

493 



3,584 
80,530 
75,669 
68, 395 
55,678 
38,563 
30,538 
21,887 
14,555 
6,114 
5,311 

7,701 
2,619 

1,272 
1,517 



8,959 
9,344 
8,879 
11,613 
15,764 
11,532 
9,314 
6,263 
6,511 
3,585 



n2,303 
50,870 
168,356 
315,459 
383,723 
433,063 
404,685 
419,293 
290,619 
178,412 
173,381 
344,537 
121,104 
70,676 
143,605 
73,940 
20,400 
8,473 
10, 582 
1,334 
1,072 



Total 

2 32, 977 

153,303 

434,673 

626,900 

1,022,815 

1,633,139 

1,611,719 

1,510,759 

1,199,157 

945,781 

719,624 

1,498,993 
413,698 
221,932 
512,155 
242,570 

59,418 
28,863 
55,230 
14,450 
44,396 



45,829 
112,136 
169,590 
195,520 
174,147 
165,896 
139,953 
107,945 
52,059 
54,399 
90,307 
43,919 
28,044 
50,459 
15,427 

702 
477 



Nevada 

3,965 
13,021 
21,160 
41,411 
63,920 

63,179 
60,684 
46,561 
54,947 
34,335 



4,172 
2,220 
2,172 
1,170 
3,755 



5,933 
16,495 
23,466 
32,313 



33,215 
21,934 
23,630 

51,182 
22,150 
15,120 



(M 



7,000 
5,809 
5,332 
6,962 



CM 

53,781 
61,290 
45,044 
50,963 
40,992 
32,752 
17,467 
10,493 
5,355 
5,066 
5,780 
1,731 



1,521 
18,392 
37,616 
75,132 
149,152 

152,976 
161,403 
137,263 
118,273 
96,294 

222,048 
73,964 
44,010 

130,071 
89,273 
25,886 
13,519 
28,318 
3,773 
23,505 



274 
2,714 
6,941 
10,536 
10,263 
13,835 
13,966 
12,022 
6,012 
6,866 
13,080 
6,325 
5,169 
11,894 
5,315 



5,823 
136,797 
134,376 
111,758 
125,578 
172,966 
153,916 
119,377 
92,535 
63,653 
42,356 
30,769 
15,559 
5,979 
10,251 
2,376 

345 

117 



Maine 

25,312 
90,869 
113,541 
178,318 
183,528 
179,320 
112,727 
78,253 
49,553 
43,074 

67,630 
29,371 
20,506 
41,214 
13,936 

7,683 



standard luetropoli' 
'20,535 
65,137 
199,381 
231,377 
441,307 
778,493 
344,624 
773,993 
692,539 
533,756 
401,355 
945,393 
263,603 
133,438 
333,957 
158,101 
41,436 
19,313 
.36,129 
7,490 
18,378 



16,521 
187,595 
193,171 
211,936 
171,062 
169,240 

152,593 
107,243 
76,677 
43,972 
26,942 
48,737 
11,056 
6,434 
8,937 
2,045 

273 



(M 

24,549 
31,404 
34,371 
30,600 
29,017 
26,462 
17,671 
10,038 
5,383 



'55,697 
95,732 
285,326 
523,198 
596,532 
757,342 
331,230 
693,060 
573,426 
414,948 
254,636 
571,384 
190,394 
143,892 
298,243 
133,404 

33,063 
17,933 
23,461 
4,327 
7,664 



(1) 
11,492 
47,025 
86,959 
106,759 
128,605 
145,328 
114,467 
75,324 
45,579 

65,355 
32,340 

15,771 
22,855 
11,054 



(M 



end of table. See text for "Description of Sample" and "Expla 



of Classifications and Terms." 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



69 



.—ADJUSTED GROSS INCOME AND INCOME TAX, BY ADJUSTED GROSS INCOME CLASSES AND BY STATES AND TERRITORIES - 
[Taxable and nontaxable returns] 



Adjusted gross 



No adjusted gross income... 

Under $1,000 

$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $^,000 

$4,000 under $5,000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$3,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000. . . 

$200,000 under $500,000 

$500,000 under $1,000,000. 

$1,000,000 or more 

Total 



N3 adjusted gross income... 

Under $1,000 

$1,000 under $2,000 

$2,000 jnder $3,000 

$3,000 under $4,000 

$i,000 under $5,000 

$5,000 under $6,000 

$6,000 under $7,000 

$7,000 under $8,000 

$8,000 under $9,000 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $203,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 

$1,000,000 or nxjre 

Total 



No adjusted gross inc 

Under $1,000 

$1,000 under $2,000. 
$2,000 under $3,000. 
$3,000 under $4,000. 
$4,000 under $5,000. 



$5, 



000 under $6,000 

000 under $7,000 

000 under $8,000 

000 under $9,000 

000 under $10,000 

000 imder $15,000 

000 under $20,000 

000 under $25,000 

000 under $50,000 

000 under $100,000 

1,000 'inder $150,000... 

1,000 under $200,000... 

1,000 under $500,000... 

1,000 under $1,000,000. 



No adjusted gross int 

Under $1,000 

$1,000 under $2,000. 
$2,000 under $3,000. 
$3,000 under $4,000. 
$4,000 under $5,000. 



$5, 



000 linder $6,000 

000 under $7,000 

000 under $8,000 

000 under $9,000 

000 under $10,000 

000 under $15,000 

000 under $20,000 

000 under $25,000 

$25,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000..., 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000. 

$1,000,000 or more 

Total 



■ Jersey 



New York 



North Carolii 



8,107 
220,168 
215,763 
237,921 
266,291 
285,083 
272,072 
214,778 
143,651 
99,801 
69,814 
122,280 
27,611 
12,804 
17,279 
3,770 
791 



^16,627 
118,471 
319,642 
596,677 
931,802 
1,280,420 

1,493,325 

1,390,552 

1,074,046 

845,276 

660,342 

1,441,891 

469,269 

283,888 

568,855 

244,000 

89,648 

19,668 

32,155 

11,121 

9,271 



1,325 
15,463 
45,022 
81,772 
120,585 
148,189 
152,793 
123,895 
107,260 
90,303 
211,709 
81,393 
56,595 
142,566 
87,208 
39,750 
3,975 
15,493 
5,236 
3,827 



4,149 
38,799 
37,674 
25,763 
27,336 
30,647 

24,660 
24,877 
13,304 
10,733 
6,621 

12,557 
2,050 
1,185 
1,272 



^49,831 
21,742 
54,534 
64,050 
95,829 
137,022 
135,225 
158,819 
99,199 
92,172 
62,374 
146,300 
34,991 
26,264 
40,675 
12,176 



10,708 
16,018 
11,204 
11,118 
7,654 

21,465 
6,537 
5,538 

10,911 
4,535 

408 



25,479 
634,274 
707,655 
802,503 
848,535 
875,691 
711,681 
526,753 
351,353 
258,884 
154,670 
307,226 
86,045 
40,282 
57,814 
17,682 
3,138 
986 
1,125 



'116,376 

330,647 

1,058,485 

2,017,426 

2,972,259 

3,931,483 

3,896,420 

3,402,317 

2,627,477 

2,187,025 

1,465,179 

3,629,951 

1,474,757 

897,386 

1,954,291 

1,178,548 

381,371 

169,622 

317,276 

96,891 

144,639 



3,786 
47,879 
135,540 
246,8 
363,270 

372,295 
352,703 
297,488 
265,551 
189,941 
519,983 
246,450 
168,210 
455,307 
372,025 

145,323 
69,816 

136,451 
43,754 
61,435 



8,051 

186,169 

224,804 

242,195 

179,251 

131,611 

87,415 

64,038 

36,723 

23,989 

9,367 

25,103 

7,293 

3,455 

5,243 



587,424 
478,128 
413,261 
273,626 
203,537 
93,564 

294,231 
124,454 

76,496 
179,779 

53,662 

9,948 
4,728 
5,504 
2,117 
5,044 



,494,095 



North Dakota 



Ohio 



Oregon 



34,172 
34,408 
29,780 
28,301 
24,874 
18,457 
12,556 
6,248 



18,587 
49,208 
72,659 
99,066 
111,094 

101,756 



45,987 
40,458 
(1) 
54,451 
18,125 
13,581 
19,843 
11,684 



1,842 
3,898 
5,165 
8,857 
8,527 
7,782 
5,269 
4,781 
(M 
3,059 
3,232 
2,551 
5,133 



15,509 
375,306 
385,150 
341,812 
389,657 
448,262 
398,648 



^44,605 

195,540 

568,695 

850,079 

1,369,871 

2,021,869 

2,131,004 

1,834,795 

1,528,793 

1,176,329 

940,934 

1,655,394 

517,583 

287,917 

635,810 

345,468 

79,143 

32,606 

58,649 

12,401 

12,012 



73,364 3,300,687 '16,310,287 2,040,652 



2,113 
26,826 
57,353 
114,994 
137,775 
215,736 
200,762 
181,876 
150,502 
127,545 
247,596 
91,020 
57,618 
161,643 
125,918 
34,906 
14,787 
29,083 
5,693 
6,846 



7,909 
85,547 
110,851 
100,867 
93,096 
83,339 
69,532 
42,626 
25,9L2 
21,812 
12,138 
22,430 
5,461 
2,530 
2,836 



^15,159 
44,281 
161,452 
251,822 
342,163 
399,073 
381,094 
274,666 
193,454 
183,932 
116,503 
264,132 
94,104 
55,735 
95,433 
51,890 

12,174 
4,873 

10,570 
4,824 
6,351 



5,594 
12,505 
21,562 
33,109 
37,174 
28,457 
21,053 
22,205 
15,287 

38,753 
16,236 
11,032 
24,658 
18,629 
5,418 
2,078 
5,462 
2,446 
3,112 



66,545 
57,048 
61,939 

73,044 

71,328 
51,554 
40,267 
25,593 
16,901 
22,892 
5,495 
2,224 
3,524 
822 



^23,822 
42,681 
98,138 
141,938 
217,746 
349,800 
388,979 
332,601 
301,516 
215,706 
160,212 
269,011 
92,590 
49,994 
122,173 
55,789 



Total 



Pittsburgh standard metropolitan e 



16,312 
442,856 
528,303 
510,970 
546,653 
551,813 
493,419 
323,042 
216,015 
126,683 
88,150 
134,524 
30,794 
15,501 
22,320 
7,570 

1,033 



^50,970 

233,553 

782,010 

1,276,331 

1,915,128 

2,486,635 

2,701,475 
2,088,372 
1,612,410 
1,072,290 
336,046 



123,795 
42,914 
59,762 
27,823 
52,065 



2,811 
39,163 
95,155 
163,721 
222,728 

267,953 
223,815 
191,443 
135,506 
110,908 
238,395 
94,503 
69,955 
196,369 
177,414 
53,065 
20,000 
29,327 
12,969 
22,791 



056,485 '18,967,829 
South Garolini 

^3,398 
45,618 
141,990 
240,793 
320,135 
296,330 
243,288 
211,445 
119,931 
95,511 
66,718 

127,509 
51,735 
31,536 
42,562 

22,578 
4,765 



4,846 
86,328 
95,352 
97,265 
92,717 
66,267 
44,736 
32,802 
16,229 
11,375 
7,070 
10,812 
3,009 
1,421 
1,323 



4,136 
10,489 
19,093 
21 ; 528 
20,402 
19,861 
12,768 
11,410 



9,897 
7,484 
1,951 



4,253 
91,316 

105,643 
94, 317 
96,174 

103,275 

127,478 
70,535 
53,174 
31,158 
27,346 

36,257 
8,368 
3,709 
5,658 
1,267 
255 



45,196 
156,774 
232,194 
336,118 
469,160 

697,143 
455,434 
396,797 
262,577 
253,303 
424,379 
142,153 
32,220 
139,612 
33,275 
30,355 
12,052 
19,335 
7,479 
23,128 



8,373 
16,429 
32,384 
44,637 

71,528 
48,642 
50,321 
32,714 
34,650 



16,903 
49,779 
30,662 

13,397 
5,830 
9,420 
3,128 
8,995 



3,816 
37,532 
43,852 
35,141 
30,887 
20,503 
19,610 
9,205 
7,422 
6,334 



63,431 
87,942 
108,354 
90,851 

106,553 
59,075 
55,925 
53,151 

52,799 
22,32] 
15,272 
24,243 
5,483 

(M 

833 



7,313 
4,055 
3,417 
6,432 
1,959 

(M 



Remainder of Stat 



Rhode Island 



12,054 
351,540 
422,660 
416,653 
450,479 
443,538 

365,941 
252,507 
162,841 
95,525 
60,804 
93,267 
22,426 
11,792 
16,662 
6,303 
778 



^43,384 

188,357 

625,236 

1,044,637 

1,579,010 

2,017,475 

2,004,327 

1,632,933 

1,215,613 

309,713 

577,243 

1,156,225 

386,483 

263,160 

553,479 

421,694 

93,440 
30,862 
40,427 
20,349 
23,937 



2,352 
30,785 
78,726 
131,337 
178,091 
196,425 
175,173 
141,122 
102,792 
76,253 
173,461 
63,988 
53,047 
146,590 
146,752 
39,668 
14,170 
19,907 
9,841 
13,796 



32,427 
46,076 
46,932 
45,706 
46,434 

33,629 
22,319 
15,406 
7,223 
4,504 

8,150 
2,165 
1,085 
1,659 



'276 
15,377 
69,179 
119,427 
159,674 
210,169 
133,226 
143,295 
116,661 
60,991 
42,569 

96,005 
37,533 
23,832 
57,235 
28,167 



7,237 
160,376 
175,693 
169,119 
129,327 
94,441 

84,094 
58,471 
30,503 
27,441 
13,646 

24,107 
6,465 
3,279 
4,708 
1,271 



,221 



'38,445 
91,184 
259,435 
421,639 
450,639 
422,488 
459,265 
378,553 
227,231 
231,844 
129,137 
282,472 
111,141 
72,523 
153,413 
32,134 
19,632 
8,555 
10,109 
2,130 



7,247 
17,513 
29,363 
32,003 
42,550 
39,742 
26,262 
27,113 
15,910 
41,196 
19,775 
14,422 
40,624 
30,070 



27,535 
348,703 
396,307 
357,877 
372,025 
326,625 
289,754 
206,567 
136,523 
80,016 
59,789 
109,285 
30,042 
13,130 
17,517 



Texas 

'71,455 

191,638 

534,830 

893,662 

1,299,625 

1,465,911 

1,588,838 

1,337,333 

1,023,353 

679,082 

565,352 

1,232,042 

513,506 

292,139 

574,379 

262,853 

70,317 

32,956 

57,714 

22,163 

30,571 



end of table. See te 



70 



INDIVIDUAL INCOME TAX RETURNS FOR 1958 



-ADJUSTED GROSS INCOME AND INCOME TAX, BY ADJUSTED GROSS INCOME CLASSES AND BY STATES AND TERRITORIES— Co 

[Taxable and nontaxable returns) 



No adjusted gross ini 

Under $1,000 

$1,000 under $2,000. 



000 under $6,000 
000 under $7,000, 
000 under $8,000 
000 under $9,000, 
000 under 



000. 



$25 



000 under $15,000. . 
000 under $20,000.. 
000 under $25,000.. 
000 under $50,000.. 
000 under $100,000. 



$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



No adjusted gross inci 

Under $1,000 

$1,000 under $2,000.. 
$2,000 under $3,000.. 
$3,000 under $i,O0O. . 
$4,000 under $5,000.. 

,000 under $6,000.. 

,000 under $7,000. . 

,000 under $8,000.. 

,000 under $9,000.. 

,000 under $10,000. 



$6 



',000 under $15,000.. 

,000 under $20,000.. 

1,000 under $25,000.. 

,000 under $50,000.. 

1,000 under $100,000. 



$25 
$50, 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total. 



(M 

36,240 

31,523 

27,015 

27,880 

33,478 

38,854 

21,411 

19,431 

11,574 



ington 



66,362 
99,199 
152,708 
213,457 
139,069 
145,574 
98,599 
65,000 
134,477 
34,428 
19,163 
28,046 
15,211 

(M 



2,260 
2,972 
6,024 
10,641 

17,806 
12,379 
14,623 
11,292 
7,592 



5,271 



12,881 
26,670 
20,974 
19,813 
16,956 



2,719 
559 



7,182 
38,893 
52,698 



2,370 
2,473 
4,570 



5,306 
1,193 
(1)' 



6,863 
162,483 
205,326 
171,373 
160,919 
133,168 
104,658 
75,026 
49,476 
33,431 
26,800 



^23,629 
94,460 
303,316 
423,740 
564,764 
599,016 

571,803 
485,776 
368,265 
283,386 
253,390 
586,744 
180,176 

92,418 
150,506 

63,022 



1,013 
11,365 
23,116 
40,321 
51,099 

54,157 
52,355 
43,400 
35,779 
34,265 
86,210 
31,011 
18,121 
34,507 
21,674 
8,003 



75,513 
49,189 
30,971 
49,315 
10,021 
3,443 
5,859 
1,191 
194 



'17,536 
51,991 
141,419 
224,415 
356,447 
579,849 
664,853 
574,805 
563,787 
416,239 
293,492 
577,772 
171,340 
77,605 
192,282 
78,623 
22,310 
5,975 
9,053 



67,841 
53,558 
42,154 
22,467 
12,914 
7,323 
13,134 
3,722 
1,222 



45,810 
134,310 
201,123 
256,628 
305,410 
292,565 
273,362 
168,647 
109,668 

69,590 
153,076 

64,083 



560,207 '2,211,208 



24,783 
27,284 
29,991 
19,423 
14,179 
9,411 

23,195 
11,873 

5,854 
17,785 
12,387 

4,377 
547 

1,545 



8,196 
175,452 
184,044 
157,637 
161,168 
177,253 
153,231 
111,609 
79,292 
48,960 
29,594 

43,824 
10,418 
4,630 



237,411 1,353,315 



^10,407 
96,937 
269,865 
398,928 
567,378 
801,325 
840,471 
723,826 
589,567 
412,863 
280,012 

510,968 
180,400 
103,570 
207,016 
90,863 
26,550 
8,706 
17,756 



1,045 
13,513 
26,211 
43,711 
76,398 
77,061 
75,497 
69,146 
51,773 
37,884 
74,789 
30,409 
20,012 
49,090 
30,096 
11,051 
3,542 
7,396 



(1) 

12,506 

15,208 

13,308 

11,920 

11,536 

14,433 
11,380 
6,423 
3,557 

4,247 



See text for "Description of 
^Sample variability is too la 
^Adjusted gross deficit. 
'Adjusted gross income less adjusted gross defi 
^Returns of citizens of Puerto Rico who are alsi 
Virgin Islands, and citizens abroad. 



22,840 
32,772 
42,073 



74,229 
46,795 
30,148 

50,407 
15,610 
11,487 
22,533 
5,002 



(M 



1,380 
1,758 
3,284 
4,336 
7,179 
7,107 
5,291 
3,605 

7,813 
2,871 
2,360 
6,005 
1,901 

(M 



7,295 
23,781 
21,192 
15,066 
15,878 

7,014 

4,719 



^937 
10,612 
29,923 

38,801 
54,618 
31,406 
25,374 
28,667 
37,119 
39,645 



of United States 



deleted for 



iding in Puerto Rici 



14,350 
27,869 
56,769 

64,013 
60,160 
64,367 
53,435 
41,008 
87,290 
31,692 
16,373 
49,713 
30,462 

9,049 

2,730 
4,389 



2,240 
2,766 
2,263 



11,109 
4,587 

1,933 



of United States residing in Panama Canal Zone 



HISTORICAL TABLES 
INDIVIDUAL RETURNS. 1949-1958 

Page 

17. Number of returns by major characteristics, adjusted gross 

income and deficit, taxable income, and tax 72 

18. Returns with income tax — number, adjusted gross income, and 

average tax, by adjusted gross income classes 73 

19 . Sources of income by type 74- 

20 • Itemized deductions on returns with adjusted gross income, by 

type 74. 

21. Selected sources of income by adjusted gross income classes.. 75 

22. Number of returns, adjusted gross income, and income tax, by 

States and Territories 78 



71 



72 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



Table 17.— NUMBER OF RETURNS BY MAJOR CHARACTERISTICS, ADJUSTED GROSS INCOME AND DEFICIT, TAXABLE INCOME, AND TAX 



of 



leturns with adjusted gross i: 
Taxable: 

With income tax 

Self-employTiient tax only. 
Nontaxable: 

Self-employment tax only. 

Other nontaxables 



Returns with : 



adju 



gros 



Nontaxable; 

Self-employment tax only. 
Other nontaxables^ 



Number of — 

Taxable returns 
Nontaxable 



Returns with itemized deductions. 
Taxable 

Nontaxable: 

With adjusted gross income... 
With no adjusted gross income 

Returns with standard deduction.. 



Taxable 

Nontaxable: 

with adjusted gross income 

With no adjusted gross income^. 



Number of returns ' 



self-employment 
taxable income. . 



Number of returns by source of inco 

Salaries and wages 

Dividends in adjusted gross inc 

Interes t received^ 

Annuities and pensions: 

Life expectancy method 

3-year method 

Income from estates and trusts. 



Business profit 

Partnership profit 

Net gain from sales of capital assets. 
Net gain from sales of other property. 

Rents and royalties net income 

Other : 



Business loss 

Partnership loss 

Net loss from sales of capital assets. , 
Net loss from sales of other property.. 

Rents and royalties net loss 

Net operating loss deduction* 

Loss from estates and trusts 



Amount of adjusted gross 



Amount of adjusted gross deficit, total. 
Returns with only self -employment tax. 



59,085,182 
58,700,92.4 



20,811,'i22 

19,053,714 



38,273,760 
26,598,420 



51,588,438 
4,235,017 
7,407,670 

740,180 

268,920 

370,879 

6,880,831 

1,611,329 

3,469,064 

104,270 

4,039,106 



1,499,888 
266,259 
920,573 

130,753 
1,513,200 



59,825,121 
59,407,673 



20,155,361 
18,569,233 



39,669,760 
28,296,082 



6,992,226 
47,116,645 



52,596,961 
4,168,499 
7,286,314 

659,356 

261,085 

362,324 

6,775,335 

1,606,524 

2,936,564 

127,417 

4,097,602 



1,474,967 
265,951 

1,038,208 
150,294 

1,404,920 

20,167 



59,197,004 
53,798,843 



18,458,563 
16,972,938 



40,733,441 
29,285,703 



51,912,814 
3,924,583 
6,715,135 

613,747 

209,212 

375,008 

7,381,270 

1,550,819 

3,148,460 

98,875 

4,090,501 



1,591,397 
244,719 
783,596 
206,108 

1,319,253 

28,102 



58,250,188 
57,818,164 



16,891,084 
15,434,733 



41,359,104 
29,254,332 



51,255,701 
3,715,617 
6,330,784 

575,633 

192,029 

360,155 

6,736,435 

1,687,570 

2,899,881 

109,983 

3,985,860 



1,508,662 
267,102 
654,121 
157,919 

1,253,080 

20,978 



56,747,008 
56,306,704 



is, 701, 595 
13,711,830 



41,CK5,413 
28,921,230 



4,211,656 
42,814,133 



49,925,305 
3,631,007 
6,124,385 

[ 730,279 
368,806 

6,320,812 
1,538,046 
2,411,147 
135,062 
3,363,618 



1,464,726 
223,949 
664,034 
207,456 
1,143,837 
34,781 
12,258 



57,838,184 
57,415,885 



12,209,756 
422,299 



14,426,417 
12,932,132 

1,089,008 
405,277 

43,411,767 
32,291,019 
11,120,748 

4,217,492 



50,373,912 
4,495,133 
5,579,720 

735,471 
426,823 
6,121,474 
1,&;9,591 
1,987,723 
93,741 
4,061,630 
1,861,744 



1,281,395 

241,505 
789,370 
151,152 
1,192,880 
38,205 



56,528,817 
56,107,089 



12,240,257 
421,728 



12,835,776 
11,462,609 



43,693,041 
32,413,664 



49,842,862 
4,218,722 
5,196,439 

634,381 
425,659 
5,791,797 
1,625,320 
2,034,196 
98,733 
3,865,368 



124,402 

1,054,992 

29,987 



55,447,009 
55,042,597 



12,405,800 
404,412 



11,581,695 
10,212,822 



43,865,313 
32,435,788 



48,538,699 
4,033,391 
4,324,056 

598,330 
432,106 
6,127,629 
1,692,545 
2,132,037 
100,765 
3,835,520 
2,353,892 



1,017,713 
219,839 
582,413 
180,335 
977,980 
30,570 



53,060,098 
52,655,564 
38,186,682 

14,468,832 
404,534 



10,320,293 
8,724,545 



42,739,9 
29,462,136 



45,147,211 
3,668,423 
4,410,271 

525,514 
387,298 
5,876,922 
1,872,550 
1,895,963 
117,067 
3,727,762 
2,273,576 



250,928 
668,038 
182,540 
899,337 



149,337,414 



281,308,431 



835,201 
149,363,077 



141,532,061 
33,265,247 



229,863,409 



216,087,449 



203,097,033 



179,374,473 



726,202 
726,202 



13,374,922 
18,374,922 



'Excludes returns with no information 1953-56 and 1958. 

^Reported on Form 1O40. 

^Not available after 1953. Includes Forms 1O40A showing wages 

'Not available prior to 1951 nor for 1955-53. 



exceeding $100 per retuj'n, reported 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



73 



Tabu 18.— RETURNS WITH INCOME TAX— NUMBER, ADJUSTED GROSS INCOME, INCOME TAX, AND AVERAGE TAX, BY ADJUSTED GROSS INCOME CLASSES 



NUMBER OF RETURNS 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,00a under $4,000 

$i,000 under $5,000 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Total 

ADJUSTED GROSS INCCME 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Total 

INCOME TAX AFTER CREDITS 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 ujider $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Total 

AVEEAGE INCOME TAX PER TAXABLE RETURN 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

,150,000 under $200,000 

.,'jO,000 under $500,000 

■ 10,000 under $1,000,000 

,-,000,300 or more 



,296,407 
1,127,075 
1,111,329 
1,537,591 
1,807,388 
,,295,457 
,,954,051 
',702,182 
1,484,984 
587,465 
264,487 

369,515 
91,605 
14,049 
3,345 
3,937 
531 
236 



1,338,986 

2,257,213 

2,252,645 

2,764,261 

2,930,022 

6,682,982 

7,454,551 

17,697,020 

2,211,504 

543,154 

250,583 

366,156 

93,289 

14,089 



1,117,050 
2,831,221 
3,937,439 
6,225,270 
8,079,602 
23,443,457 
33,541,308 
119,494,167 

25,971,375 
9,294,499 
5,576,891 

12,220,088 

6,124,500 

1,681,598 

632,301 

1,122,465 

393,591 

427,474 



262,188,335 252,169,296 



.,083,049 
1,683,333 
1,675,817 
i, 714, 958 
',735,369 
1,091,696 
.,278,974 
1,222,381 

1,176,927 
1,041,325 
,,875,992 
!,313,280 



.,644,279 
658,563 
,109,680 
356,220 
482,640 



38,062 

190, 127 

305,532 

456,973 

671,315 

1,997,817 

2,945,326 

13,389,037 

4,291,393 
1,757,062 
1,168,543 

\ 3,101,822 
2,106,658 
689,633 
291,744 
515,358 
174,941 
233,159 
34,335,652 



39,228 

201,203 

332,570 

520,852 

716,095 

2,169,991 

3,150,403 

13,381,929 

3,851,330 

1,638,348 

1,120,885 

3,104,270 

2,173,193 

716,994 

307,373 

536,036 

200,731 

231,648 



1,727 

2,991 

4,418 

8,394 

22,997 

49,083 

75,376 

131,023 

329,456 

987,952 



423 
756 
1,742 
3,016 
4,473 
8,478 
23,295 
50,390 
77, U4 



1,357,447 

2,392,096 

2,364,317 

2,873,453 

3,169,007 

7,153,365 

7,650,165 

16,179,494 

1,918,975 

497,449 

234,745 

346,246 

39,095 



1,130,213 
3,005,109 
4,129,399 
6,474,182 
8,737,643 
25,144,783 
34,380,979 
3,296,216 
22,543,784 
8,531,736 
5,215,782 



5,900,331 

1,679,344 

659,130 

1,138,037 

396,602 

549,625 

249,551,275 



39,381 

213,334 

344,842 

548,045 

769,289 

2,312,101 

3,186,754 

12,190,219 

3,369,114 

1,520,665 

1,053,133 

3,009,248 

2,128,630 

708,331 
297,130 
545,677 
202,455 
288,234 



1,437,846 

2,483,242 

2,447,663 

2,961,513 

3,313,528 

7,529,308 

7,619,205 

14,328,468 

1,517,076 

425,730 

210, 172 

I 120,427 

I 190,539 

77,563 



1,200,421 
3,106,659 
4,265,817 
6,666,813 
9,157,665 
26,407,948 
34,203,137 
94,801,910 



3,284,321 
I 7,133,272 

5,149,111 

1,542,840 
674,131 

1,140,318 
414,315 
550,864 



42, 172 

216,479 

352,943 

551,714 

793,795 

2,381,762 

3,129,354 

10,614,024 

2,692,340 

1,308,272 

961,030 

( 745,939 

I 1,962,136 

1,852,467 

653,397 

305,830 

549,179 

209,848 

290,935 



23,892 

50,425 
77,317 
135,370 
341,408 
1,075,500 



I 6,194 

I 10,295 

23,883 

50,643 

77,631 

136,987 

336,295 

1,106,410 

663 



1,292,938 
2,426,670 
2,431,232 
3,073,559 
3,452,029 
7,924, 537 
7,545,254 
12,355,239 



291,668 
161,897 
70,332 

11,617 
3,192 
3,234 

437 



1,078,798 
3,047,987 
4,237,823 
6,922,726 
9,505,225 
27,312,489 
33,328,835 
81,237,475 



1,389,769 
546,951 
915,760 
293,111 
406,532 
209,668,830 



37,648 

213,519 

344,535 

575,180 

817,847 

2,467,295 

3,049,831 

9,210,378 



614, 555 
257,014 
455,363 
154,785 
222, 374 



1,361,444 
2,632,034 
2,787,231 
3,335,910 

3,685,629 
8,202,537 
7,656,402 
12,490,576 



264,008 
150,981 
60,260 

12,461 
2,692 



1,146,237 
3,299,462 
4,365,679 
7,493,336 
10, 156, 359 
28,746,397 
34,370,599 
31,752,318 



753,081 
252,379 
275,263 

210,483,602 



255,864 
449,372 
695,210 

988,259 
2,871,975 
3,545,531 
10,443,227 



1,566,556 
1,786,009 
1,645,090 



414,246 
149,012 
169,496 



1,420,812 
2,760,133 
2,963,805 
3,568,839 

3,883,813 
8,552,203 
7,279,244 
10,609,222 



14,114 
3,195 



1,610,092 

2,754,583 

3,115,581 

3,814,784 

4,173,241 

8,858,530 

6,949,135 

3,699,138 

831,819 

295,919 

( 154,766 

I 93,693 

149,837 

67,447 

( 12,045 



42,333,675 41,594,222 



1,191,714 
3,463,102 
5,176,733 
3,030,291 
10,717,097 
29,930,509 
32,575,069 
68,763,095 



891,963 
273,310 
289,224 



1,354,605 
3,452,761 
5,446,167 
8,578,144 
11,530,006 
30,946,234 
31,016,829 
55,338,593 

9,923,727 

5,073,155 

( 3,447,638 

I 2,556,301 

5,651,016 

4,500,312 

I 1,440.965 

I 687,244 

1, 100,454 

349,694 

344,640 

183,243,590 



46,964 

271,039 

477,751 

748,512 

1,022,509 

2,941,669 

3,323,844 

8,349,348 

2,024,375 

1,153,592 

1,520,457 

1,830,556 

1,811,292 

934,889 
495,354 
164,954 
130,195 



52,901 
80,518 
140,805 
354,199 
1,106,333 
625 



i 65,203 

153,380 

400,570 

1,168,938 



2,059 
3,575 
6,026 



155,200 

396,543 

1,217,541 



50, 542 
241,320 
461,740 
721,975 

998,321 
2,728,262 
2,919,638 
5,607,556 
1,594,410 
978,921 
I 759,746 
I 628,012 
1,677,416 
1,773,160 

( 687,725 

I 356,130 

612,801 

211,452 

213,653 



1,570,113 

2,653,365 

3,333,412 

4,132,168 

4,585,740 

8,668,606 

5,740,400 

6,114,699 

679,114 

255,019 

139,837 

83,645 

136,462 

62,689 



1,310,310 
3,331,544 
5,318,935 
9,290,893 
12,652,390 
30,154,936 
25,557,691 
39,046,068 
8,143,940 
4,396,990 
3,110,433 
2,281,381 
5,144,080 
4,192,517 
1,386,519 
676,791 
1,141,235 
419,452 
433,407 



40,337 

197,079 

413,125 

647,370 

890,984 

2,177,241 

2,043,783 

3,983,698 

1,157,379 

757,996 

615,381 

505,853 

1,382,086 

1,517,006 

613, 196 
328,914 
602,558 
239,881 
260,550 



I 6,703 

11,195 
26,364 

[ 57,096 

I 83,855 

156,927 

404,306 

1,249,433 



651 

1,704 

2,961 

4,401 

6,048 

10,128 

24, 199 

53,026 

83,312 

U3,486 

385,042 

1,189,726 

431 



74 



INDIVIDUAL INCOME TAX RETURNS. 1949-1958 



Table 19.— SOURCES OF INCOME BY TYPE 



[eturns with adjusted gross income: 
Positive income: 

Sa laries and wages^ 

Dividends in adjusted gross income^... 

Interest received^ 

Annuities and pensions: 

Life expectancy method 

3-year method 

Income from estates and trusts 

Business profit 

Partnership profit 

Net gain from sales of capital assets. 
Net gain from sales of other property. 

Rents and royalties net income 

Other sources* 

Total 

Losses: 

Business loss 

Partnership loss 

Net loss from sales of capital assets. 
Net loss from sales of other property. 

Rents and royalties net loss 

Net operating loss deduction^ 

Loss from estates and trusts 

Total 

Adjusted gross income 



;eturns with no adjusted gross income: 
Positive income: 

Salaries and wages^ 

Dividends in adjusted gross deficit^.. 

Interest received^ 

Annuities and pensions: 

Life expectancy method 

3-year method 

Income from estates and trusts 

Business profit 

Partnership profit 

Net gain from sales of capital assets. 
Net gain from sales of other property. 

Rents and royalties net income 

Other sources' 

Total 

Business loss 

Partnership loss 

Net loss fYom sales of capital assets. 
Net loss from sales of other property. 

Rents and royalties net loss 

Net operating loss deduction^ 

Loss from estates and trusts 

Other sources ( negative) 

Total 

Adjusted gross deficit 



227,354,096 


227,949,466 


215,482,206 


200,580,472 


185,794,926 


137,607,362 


174,193,394 


160,336,699 


138,956,127 


124,798,953 


8,702,680 


9,090,207 


8,566,577 


7,819,949 


7,030,900 


5,804,993 


5,334,215 


6,030,895 


6,130,906 


5,218,206 


3,618,353 


3,290,387 


2,846,566 


2,555,609 


2,349,915 


2,0a,369 


1,822,337 


1,684,015 


1,582,398 


1,511,555 


883,443 
435,429 


754,404 
384,057 


655,595 
284,477 


624,567 
244,995 


> 799,292 


670,329 


581,672 


499,306 


429,767 


441,969 


613,471 


616,593 


617,738 


565,036 


583,434 


1,636,754 


1,700,139 


1,739,064 


1,639,754 


1,435,302 


22,868,229 


22,462,196 


23,629,9(>i 


20,566,259 


19,218,571 


18,646,959 


18,180,679 


18,131,463 


16,846,649 


15,613,095 


9,792,725 


9,936,979 


9,36£,565 


9,530,872 


8,973,393 


3,784,424 


8,799,142 


8,352,180 


8,554,469 


7,894,590 


4,792,409 


4,048,433 


4,874,682 


5,024,200 


3,614,012 


2,473,486 


2,761,088 


3,185,644 


3,181,051 


1,886,459 


74,426 


87,146 


71,854 


93,616 


104,930 


60,359 


102,826 


83,761 


101,494 


100,890 


3,9a,429 


3,888,584 


3,859,966 


3,660,430 


3,497,917 


3,605,573 


3,432,513 


3,299,943 


3,183,655 


3,024,215 


2,190,652 


1,932,052 


1,297,767 


792,714 


679,067 


889,025 


794,378 


1,199,951 


1,008,812 


1,030,824 


285,247,342 


284,440,504 


271,555,897 


252,058,719 


232,746,855 


232,251,633 


213,202,383 


205,042,926 


131,655,582 


162,955,058 


1,385,671 


1,351,743 


1,491,639 


1,297,251 


1,293,519 


1,073,477 


1,009,459 


939,922 


840,420 


635,138 


372,488 


337,673 


333,264 


330,305 


259,724 


266,799 


241,285 


231,766 


223,547 


248,785 


528,572 


622,057 


421,409 


357,641 


362,625 


437,349 


348,557 


268,302 


313,886 


331,192 


111,585 


116,990 


162,611 


121,497 


' 129,023 


111,682 


89,145 


126,056 


132,306 


101,086 


665,037 


640,838 


540,132 


509,487 


401,740 
58,329 


457,509 
40,391 


383,212 
43,724 


342,834 
36,511 


230,930 


266,667 


17,571 


12,772 


23,028 


13,360 


5,540 


- 


- 


- 


- 


- 


3,080,924 


3,132,073 


2,972,083 


2,629,541 


2,511,000 


2,338,207 


2,115,332 


1,945,391 


1,791,139 


1,582,868 


282,166,418 


281,308,431 


268,583,814 


249,429,132 


230,235,855 


229,863,409 


216,087,449 


203,097,033 


179,374,478 


161,373,205 


196,461 


127,443 


135,775 


131,633 


157,697 


126,058 


145,638 


144,998 


116,998 


84,195 


37,882 


33,550 


39,079 


30,954 


16,966 


23,286 


25,409 


25,120 


26,793 


28,021 


40,858 


28,563 


25,447 


28,000 


20,315 


20,780 


24,562 


13,200 


12,706 


16,275 


'!> 


(°) 


1,713 


(') 


} 6,777 


(») 


2,139 


503 


2,048 


1,439 


4,547 


(») 


7,639 


578 


(») 


4,722 


11,096 


22,361 


10,318 


8,066 


21,747 


63,750 


31,986 


30,964 


16,041 


30,740 


14,314 


31,078 


16,735 


16,451 


17,433 


26,739 


24,413 


22,572 


30,150 


18,476 


34,656 


13,865 


21,038 


17,638 


86,705 


79,795 


116,449 


102,150 


117,350 


65,040 


74,777 


96,777 


77,520 


69,061 


(') 


(') 


(») 


3,134 


2,881 


2,526 


13,770 


5,142 


1,694 


5,e02 


40,474 


56,668 


60,488 


36,839 


38,375 


53,693 


56,583 


53,415 


40,797 


35,417 






15,706 


5,013 


11,624 


19,731 


6,958 


8,598 


10,262 


9,965 


449,152 


422,510 


459,401 


393,914 


420,382 


365,487 


409,902 


425,057 


336,959 


292,130 


830,727 


834,836 


885,605 


869,969 


1,015,290 


940,584) 


873,919 


756,666 


758,250 


763,734 


205,914 


217,129 


207,389 


199,192 


213,518 


248,9161 


150,234 


227,316 


187,740 


189,353 


20,538 


20,638 


17,056 


17,572 


16,821 


24,88f! 


16,905 


16,373 


16,742 


19,501 


45,929 


44,489 


148,910 


97,067 


70,035 


70,954 


50,624 


73,267 


53,140 


72,716 


70,124 


45,329 


36,209 


101,810 


27,802 


73,894 


24,892 


38,322 


47,293 


46,104 


- 


- 






86,136 


161,411 


90,865 


68,668 


- 


- 


280,732 


245,824 


- 


- 


- 


- 


- 


- 




- 


1,416,478 


1,410,375 


1,318,947 


1,292,773 


1,434,862 


1,520,647 


1,207,439 


1,185,612 


1,063,165 


1,091,408 


1,012,32b 


987,865 


859,546 


898,865 


1,014,480 


1,155,153 


797,541 


760,548 


726,202 


799,280 



o income tax withholding, reported 
eived through partnerships and fidu 



^Excludes wages, for 1949-57 less than $100 and for 1958 less than $200 per return, not subje 
1954, salaries and wages are after excludable sick pay and allowable employee expense. 

^Dividends reported on Forms 1040. Beginning 1954, includes dividends eligible for exclusion 
after exclusions. 

■'interest reported on Forms 1040. Includes partially tax-exempt interest received directly or through partnerships and fiduciaries. 

''includes wages not subject to income tax withholding, dividends, and interest, not exceeding $100 per return for 1949-57 nor $200 for 19 
Beginning 1955, reduced by net operating loss deduction. 

'por 1949-50, net operating loss deduction was reported as a business deduction; for 1955-58, it was an adjustment which reduced "Other 

^For 1954-58, salaries and wages are after excludable sick pay and allowable employee expense. 

''For 1955-56, reduced by net operating loss deduction. 

^Sample variability is too large to warrant showing separately. However, the total contains data deleted for this reason. 



income on Fv^rms 1040A. Beginning 
All tabulated amounts, however, art 

reported in one sum on Forms 1040A. 



Table 20.— ITEMIZED DEDUCTIONS ON RETURNS WITH ADJUSTED GROSS INCOME, 


BY TYPE 








Type of deduction 


1958 1 1957 1 1956 | 1955 | 1954 | 1953 


1952 


1951 1 1950 


1949 




mous.nd dollar,) 




6,269,154 
7,430,346 
5,693,336 
4,283,546 

3,771,026 


L (Not 
(available) 


r 4,810,079 

5,827,909 

4,877,793 

< 3,472,903 

110,577 

347,894 

L 3,165,569 


1 (Not 
ravailable) 


3,201,287 
4,076,630 
3,891,173 
2,971,172 
87,960 
444,245 
2,730,760 


2,735,359 
3,639,153 
3,552,448 
2,391,339 

392,644 
2,878,234 


2,221,353 

3,167,773 
3,114,739 
2,133,130 

367,517 
2,552,035 


•avi?ia\le, 


■ 1,494,928 
2,199,940 
2,258,009 
1,556,294 

306,572 
2,097,950 


1,224,004 


Taxes 


1,952,731 


Contributions 


2,029,550 


Medical and dental exnense 


1,432,699 








227,596 


Other deductions 


1,337,155 








27,497,903 


25,691,588 


22,612,729 


19,997,485 


■ 17,403,227 


15,589,177 


13,556,552 


11,856,378 


9,913,693 


8,753,738 







INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



75 



Adjusted gross 



Table 21 . —SELECTED SOURCES OF INCOME BY ADJUSTED GROSS INCOME CLASSES 



SALARIES AM) UAGESl 
Returns vith adjusted gross income 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000^ 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 imder $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Total 

Returns vith no adjusted gross inci 
Grand total 



1,128,719 
1,862,471 
3,904,993 
4,846,089 
6,662,191 

8,522,612 
22,510,230 
29,557,033 
109,423,351 

22,647,613 
5,700,081 
2,741,831 



,068,182 

451,670 
146,630 
177,335 
25,978 
10,643 



1,083,262 
1,858,101 
3,974,643 
5,048,631 
7,087,397 

8,810,665 
23,876,171 
32,022,396 
109,093,871 

19,541,232 
5,067,839 
2,532,595 
4,995,800 
2,115,655 

463,642 
155,813 
180,197 
32,507 
9,049 

227,949,466 



1,087,986 
1,853,051 
4,165,125 
5,252,048 
7,289,584 

9,393,512 
25,456,095 
32,675,903 
98,046,618 

16,256,390 
4,426,768 
2,273,670 
4,456,298 
2,029,914 



215,482,206 



1,074,269 
1,970,417 
4,378,953 
5,688,277 
7,603,711 

10,165,026 
27,079,405 
32,788,655 
85,563,600 

12,313,204 
3,655,396 
1,947,202 
( 1,285,890 
I 2,628,218 
1,680,933 

407,839 
142,553 
167,679 
31,409 
7,836 



200,712,105 



1,137,682 
1,958,083 
4,433,881 
5,873,995 
8,119,186 

10,641,552 
28,790,162 
32,468,575 

72,550,811 



375,500 
120,346 
142,322 
17,062 
6,108 



135,952,623 



1,208,770 
1,974,738 
4,587,925 
6,257,596 
8,470,037 

10,956,687 
29,243,923 
32,721,872 
73,196,798 



2,714,536 
2,272,934 
1,383,787 

430,495 

124,054 

16,289 

4,193 



187,733,920 



1,197,251 
1,964,031 
4,763,672 
6,761,372 
9,147,821 

11,757,228 
30,554,952 
31,342,772 
60,361,693 



2,435,160 
2,102,804 
1,415,540 

463,227 

140,743 

17,596 

4,439 



1,146,950 
2,154,234 
4,765,215 
7,062,581 
9,758,258 



12, 



,191 



31,270,695 
29,561,094 
47,621,929 

5,626,778 

2,308,530 

' 1,455,628 



372,495 
139,834 
160,592 
24,074 
4,077 



1,093,015 
2,247,748 
5,003,951 
7,866,925 
10,880,058 

13,995,835 
30,717,185 
23,861,823 
31,515,233 

4,175,514 
1,855,309 
1,205,394 
847,817 
1,768,317 
1,256,908 

330,615 
133,105 
164,845 
27,827 
7,693 

138,956,127 



Returns with adjusted gross : 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000^ 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



13,207 
33,856 
76,622 
93,294 
107,411 

122,028 

249,473 

246,916 

1,141,067 

902,4 

686,7 

534,650 

1,490,635 

1,325,594 

500,945 
248,850 
486,348 
173,778 
268,788 



Total. 



adjusted gross 



13,190 
46,286 
76,218 
103,416 
112,009 

126,162 

243,555 

248,651 

1,205,321 

909,330 

687,088 

555,163 

1,515,706 

1,337,553 

543,819 
272,131 
513,149 
192,143 
289,307 

9,090,207 

33,550 



11,016 
30,433 
66,284 
83,725 
102,587 

101,644 

238,110 

226,897 

1,007,925 

852,897 

664,455 

511,237 

1,595,905 

1,285,630 

543,917 
251,820 
495,611 
191,563 
298,920 

3,566,577 

39,079 



13,273 
35,254 
73,884 
85,559 
95,903 

109,095 
219,895 
225,344 
986,005 

745,815 
560,954 
447,336 
382,213 
1,022,511 
1,128,788 

503,035 
239,550 
471,294 
137,071 
286,153 

7,819,949 

30,954 



10,178 
36,901 
65,505 
95,448 
93,973 

94,509 
200,461 
243,493 
946,788 



780,502 

868,526 

1,003,075 

420,263 
200,724 
376,622 
143,601 
202,998 

7,030,900 

16,966 



16,520 
45,296 
91,6.47 
104,656 
103,491 

109,970 
194,240 
202,211 
923,150 



613,459 
719,058 
730,003 

441,507 
259,377 
93,413 
118,724 

5,804,993 

23,286 



18,235 
42,557 
68,815 
39,243 
90,594 

101,725 
196,131 
199,570 
845,370 



593,130 
729,432 
802,253 



312,377 
100,881 
132,139 

5,SX,215 

25,409 



11,126 
39,959 

71,780 



102,454 
199,416 
229,364 
853,185 

551,141 
404,406 
326,531 
273,148 
735,213 
841,279 

359,342 
199,297 
354,894 
130,601 
149,702 

5,030,895 

25,120 



13,255 
44,003 
83,102 
88,256 
93,955 

101,619 
207,767 
227,541 
780,146 

525,703 
398,190 
335,540 
267,081 
758,936 
866,875 

335,392 
205,692 
408,822 
158,822 
179,203 



INTEREST RECEIVED' 



Returns with adjusted gross 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000^ 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

,000 under $30, 

,000 under $50, 

,000 under $100 



$50 



,000. , 



$100,000 under $150,000... 
$150,000 under $200,000... 
$200,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 



Total 
Returns 



th 1 



adjusted gross 



30,360 
66,408 
119,714 
125,110 
142,054 

130,464 
256,374 
246,323 
937,560 

451,995 
255,049 
169,785 
373,004 
190,775 

52,735 

20,476 
31,907 
8,473 
8,237 



23,563 
54,264 
110,631 
129,774 
119,550 

122,393 
224,553 
209,724 
861,455 

403, 510 
235,591 
147,336 
344,640 
190,032 

43,108 
19,207 
30,545 



3,290,387 
28,563 



21,968 
52,878 
100,672 
109,234 
112,167 



334,714 
190,415 
127,420 
324,563 
157,602 

43,300 
16,623 
24,363 

7,451 



29,683 
49,508 
97,353 
110,399 
99,520 

104,748 
174,364 
196,225 

622,810 

282,214 
157,421 
114,601 
36,428 
195,793 
135,470 

37,487 
15,302 
23,153 
6,483 
5,145 



21,955 
53,966 
94,934 
107,508 
106,019 

92,533 
176,014 
186,123 

544,4 



33,203 
13,916 
21,099 

5,441 
5,851 

2,349,915 

20,315 



21,171 
58,011 
39,031 
94,303 
85,395 

83,890 
167,893 
153,417 
463,900 



18,497 
4,969 
4,948 

2,021,. 

20,730 



19,515 
48,018 
31,132 



75,985 
128,429 
138,933 
397,137 



1,822,337 
24,562 



17,963 
45,531 
71,327 
75,550 
74,709 

71,350 
131,510 
128,559 
358,724 

165,038 
102,492 
71,158 
56,769 
129,139 
105,539 

31,971 
14,334 
20,710 
5,124 
5,358 



19,571 
44,154 
74,529 
77,865 



56,922 
119,395 
125,364 
313,921 

145,219 
92,049 
63,633 
53,721 

126,715 
98,633 

31,302 

14,514 
23,040 
7,035 
6,148 

1,582,1 

12,706 



Footnotes at end of table. 



76 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



Table 21.— SELECTED SOURCES OF INCOME BY ADJUSTED GROSS INCOME CLASSES— Continued 



Adjusted gross 



BUSIKESS PROFIT 
Returns with adjusted gross income 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000^ 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Total 

Returns with no adjusted gross inc 
Grand total 



141,708 
311,799 
631,416 
745,8 



946,780 
2,104,r " 
2,099,512 
5,906,726 

2,832,505 
1,739,041 
1,240,592 



639,4 

84,856 
22,057 
23,266 
5,586 
3,523 



953,238 
2,016,971 
1,966,346 
5,719,711 

2,814,309 
1,755,545 
1,162,654 
2,384,638 
820,783 

105,207 
24,420 
31,271 



22,462,196 
63,750 



141,559 
365,389 
722,451 
912,076 
1,067,262 

1,163,462 
2,223,430 
2,166,671 
5,851,631 

2,844,344 
1,716,864 
1,182,472 
2,383,227 

729,112 

97,246 
27,552 
25,177 
3,521 
5,958 



148,721 
363,410 
740,022 
907,243 
1,033,484 



1,0 



1,601 



4,817,069 

2,439,150 
1,489,921 
1,095,738 

687,976 
1,278,793 

594, 

87,752 
26,552 
22,151 



20,566,259 
30,964 



140,3 

351,725 

727,315 

874,895 

982,191 

1,068,887 
2,030,897 
1,659,320 
4,587,587 



97,073 
25,205 
25,587 
4,815 
3,393 

19,218,571 

16,041 



1,117,768 
2,161,646 
1,738,647 
4,437,881 



109,996 
23,707 
3,950 
3,622 

18,646,959 

30,740 



105,506 
300,727 
672,572 
922,504 
995,599 

1,137,327 
1,994,450 
1,608,172 
4,087,451 

1,952,696 
1,207,256 

1,338,082 



37,901 
8,703 

4,537 



110,282 
295,738 
728,071 
963,095 
1,143,414 

1,199,742 
2,137,1 
1,643,200 
3,845,706 

1,845,160 

1,111,531 

722,619 

530,230 

1,030,518 

592,563 

120,883 
45,980 
49,098 
10,149 
5,593 



114,250 

324,004 

760,470 

1,023,688 

1,112,335 

1,148,598 
1,987,815 
1,512,663 
3,433,953 

1,672,103 
930,517 
657,762 
466,571 
915,644 
518,650 

108,929 
45,033 
42,470 
10,005 
5,684 

16,846,649 

16,785 



PARTNERSHIP PROFIT 
Returns with adjusted gross income: 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 139,833 

$3,000 under $4,000 390,792 

$4,000 under $5,000' 434,593 

$5,000 under $10,000 1,982,053 

$10,000 under $15,000 1,333,276 

$15,000 under $20,000 993,434 

$20,000 under $25,000 746,657 

$25,000 under $30,000 I -, onn /oj 

$30,000 under $50,000 ( ' ' 

$50,000 under $100,030 1,077,687 

$100,000 under $150,000 236,710 

$150,000 under $200,000. 

$200,000 under $500,00 101,435 

$500,000 under $1,000,000 18,500 

$1,000,000 or more 8,655 

Total .-. . 9,792,725 

sted gross income 17,433 



14,152 
30,353 
77,919 
91,119 
136,536 

143,858 

366,^52 

472,467 

2,028,768 

1,392,921 
984,322 
747,154 

1,945,585 

1,033,209 



96,576 

19,137 
11,435 

9,936,979 

26,739 



16,694 
29,404 
66,949 
90,795 
111,029 

151,173 

395,649 

441,200 

1,932,182 



1,778,210 
927,671 

229,513 
75,232 
99,149 
14,935 
3,767 

9,368,565 

24,413 



21,249 
39,528 
75,846 
109,059 



197,795 

475,302 

516,311 

2,017,557 

1,261,849 
900,070 
681,380 
525,325 

1,221,649 
864,953 

236,442 
85,299 

108,622 
21,633 
16,359 



15,953 
42,612 
73,154 
109,592 
139,110 

195,356 

499,378 

524,379 

1,918,999 



1,106,191 

1,085,314 

345,897 

226,849 
76,267 , 
97,570 
18,696 
9,141 

8,973,893 

30,150 



28,178 
41,165 
122,912 
136,535 
191,775 

189,498 

488,679 

543,540 

1,907,899 



83,977 
7,504 
9,238 

8,784,424 

18,476 



19,096 
30,079 
99,112 
122,307 
167,412 

208,154 

481,853 

523,664 

1,397,693 



324, 103 

94,503 
12,179 
6,737 

,799,142 

34,656 



16,706 
48,311 
96,867 
160,234 
200,335 

262,254 



1,051,772 
705,792 
537,934 
443,065 

1,075,101 
860,375 

263,131 
120,821 
130,461 
22,340 
11,971 



21,497 
60,550 
141,159 
194,078 
258,331 

296,255 

590,004 

533,728 

1,671,464 

979,046 
655,394 
531,980 
396,470 
945,936 
790,584 

232,332 
104,599 
120,174 
20,875 
9,513 

8,554,469 

21,038 



RENTS AND ROYALTIES NET INCOME 



Returns with adjusted gross i 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 

$2,500 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000' 

$5,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $25,000 

$25,000 under $30,000 

$30,000 under $50,000 

$50,000 under $100,000 

$100,000 under $150,000... 
000 under $200,000... 
,000 under $500,000... 
,000 under $1,000,000. 



$500 



$1,000,000 or more 

Total 

Returns with no adjusted gross 
Grand total 

Footnotes at end of table. 



49,915 
102,791 
184,871 
168,828 

173,451 

163,074 
299,092 
265,693 
920,658 

436,454 
256,399 
177,907 
391,164 
186,049 

65,984 
19,963 
38,440 
8,494 
7,202 



39,071 
97,569 
199,338 
189,541 
173,646 

143,580 
260,990 
272,386 
916,936 

413,785 
245,380 
175,094 



55,799 
24,582 
38,761 



3,888,584 
56,668 



98,725 
165,689 
139,740 
182,279 

150,352 
290,067 
284,039 
922,922 

407,483 
244,176 
148,185 
393,462 
206,348 

63,314 
22,200 
31,251 
11,175 



49,025 
99,395 

193,780 
193,291 
160,259 

168,491 
248,386 
275,361 
856,754 

370,803 
213,825 
151,199 
115,945 
252,711 
179,863 

60,149 
22,093 
26,598 
11,563 
9,939 

3,660,430 

36,839 



41,127 
104,290 
188,819 
187,277 
179,552 



54,837 
16,968 
23,660 
7,544 
11,577 

3,497,917 

38,375 



45,824 
124,392 
222,799 
202,593 
177,305 

156,324 



55,024 
22,779 
7,812 
7,633 

3,605,573 
53,693 



50,957 
126,343 
205,770 
180,549 
193,229 

164,104 
298,717 
309,033 
703,866 



30,245 
9,747 
9,457 

3,432,513 

56,583 



48,165 
122,690 
183,913 
184,474 
163,302 

173,332 
286,648 
269,209 
725,908 

275,666 
164,292 
113,690 



49,728 
24,002 
38,128 
10,807 
5,835 

3,299,948 

53,415 



50,527 
123,492 
193,824 
191,576 
192 ,682 

163,665 
293,103 
274,183 
634,310 

266,130 
157,472 
106, 199 
85,523 
186,746 
143,211 

46,093 

20,212 
31,614 



3,183,655 
40,797 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



77 



Table 21.— SELECTED SOURCES OF INCOME BY ADJUSTED GROSS INCOME CLASSES— Continued 



Adjusted gross 



NET GAIN FROM SALES OF CAPITAL ASSETS' 
Returns with adjusted gross income: 

Under $600 

$600 under $1,000 

$1,000 under $1,500 

$1,500 under $2,000 

$2,000 under $2,500 



$2,500 under $3,000.. 
$3,000 under $4,000.. 
$^,000 under $5,000^. 
$5,000 under $10,000. 



$50, 



000 under $15,000.. 
,000 under $20,000. . 
000 under $25,000.. 
,000 under $30,000.. 
,000 under $50,000.. 
000 under $100,000. 



$100,000 under $150,000. . . 

$150,000 under $200,000 

$200,000 under $500,000 

$500,000 under $1,000,000. 
$1,000,000 or more.. 



Total. 



37,784 
40, 186 
64,185 
68,271 
90,877 

102,852 
226,943 

200,402 
770,713 

478,126 
313,791 
236,069 



543,000 

232,796 
130,035 
288,404 
131,512 
207,989 



,792,409 



23,284 
30,565 
63,473 

77,517 
76,570 

96, 596 

153,870 
147,009 
658,133 

418,554 
265,128 
201,438 

499,430 

450,835 

215,374 
118,403 
268,416 
150,959 
132,829 



4,048,433 
79,795 



24,671 
35,604 
68,933 
91,719 
82,148 

78,381 
177,789 
157,514 
723,981 

484,023 
315,623 
225,448 
675,595 

584,060 

292,570 
138,576 
321,853 
154,496 
241,698 



4,874,682 
116,449 



25,150 
31,594 
63,294 
66,171 
85,536 

78,582 
160,465 
166,223 
737,695 

505,190 
315,266 
24.4,3i9 
206,135 
545,813 
584,414 

279,105 
155,398 
352,739 
172,962 
248,119 



5,024,200 
102,150 



20,495 
30,410 
57,167 
58,313 
66,076 

66,450 
150,584 
133,241 
554,328 



190,598 
103,502 
244,209 
107,312 
166,997 



3,614,012 
117,850 



23,168 
24,137 
57,547 



67,681 
120,881 
124,908 
429,908 



191,165 

212,733 
239,314 



148,129 
69,489 

70,806 



2,473,-186 
65,040 



26,232 
27,556 
52,306 
75,277 
72,695 

71,874 
137,801 
144,446 
445,218 



209,578 
242,771 
290,963 



176,568 
86,991 
74,005 



21,807 
27,239 
58,668 
74,925 
80,772 

94,152 
168,461 
155,947 
526,485 

268,752 
177,354 
136,261 
109,252 
280,244 
319,090 

153,938 
96,578 

236,179 
99,022 

100,518 



25,107 
52,092 
61,613 
60,680 

82,557 
150,798 
169,433 
548,260 

271,947 
178,163 
134,689 
101,002 
275,264 
304,552 

156,603 
98,251 
229,949 
132,378 
131,283 



2,761,088 
74,777 



3,185,644 
96,777 



3,181,051 

77,520 



21,097 
24,145 
38,513 
53,935 
58,201 

62,442 
137,437 
137,385 
364,957 

158,883 
96,901 
67,610 
51,114 
134,720 
149,645 

68,994 
42,776 
97,455 
46,193 
74,057 



1,886,459 
69,061 



^Excludes wages, for 1949-57 less than $100 and for 1958 less than $200 per return, i 
alaries and 'rages are after excludable sick pay and allowable employee expense. 
^For 1949-52, includes nontaxable returns with income exceeding the class limit. 
'Dividends reported on Forms 1040. Beginning 1954, includes dividends eligible for < 



ithholding, reported i 



I Forms 1040A. For 1954-58, 



ed through partnerships 



eluded from adjusted gross 



All tabulated i 



short-term gain < 



78 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



Table 22.— NUMBER OF RETURNS, ADJUSTED GROSS INCOME, AND INCOME TAX, 


BY STATES AND TERRITORIES 






States and Territories 


1958 


1957 


1956 


1955 


1954 


1953 


1952 


1951 


1950 


1949 


mJWER OF RETUHNSl 


798,233 
46,476 
357,947 
437,224 
5,380,726 

577,895 
942,535 
152,585 
331,081 
1,420,349 

1,007,090 

215,402 

213,CS3 

3,717,343 

1,521,475 

947,704 
755,522 
833,388 
815,793 
. 335,513 

1,147,038 
1,965,671 
2,575,775 
1,141,280 
414,701 

1,439,689 
225,722 
496,852 
101,535 
222,377 

2,218,235 

261,903 

6,411,995 

1,236,162 

206,125 

3,300,687 
698,374 
586,487 

4,056,485 

314,252 
571,968 
224, 34i 
990,437 
2,776,751 

270,570 
128,313 
1,199,987 
964,507 
560,207 

1,353,315 
111,200 
119,297 


797,638 
49,789 
344,657 
437,599 
5,361,993 

575,065 
953,721 
153,896 
337,129 
1,377,490 

1,006,981 

212,520 

213,015 

3,794,017 

1,547,965 

953,282 

745,702 
.861,887 
819,737 
343,808 

1,177,889 
1,984,951 
2,699,377 
1,156,436 
412,648 

1,455,037 
230,389 
497,461 
99,205 
225,714 

2,248,216 

253,793 

6,522,596 

1,240,340 

205,814 

3,416,230 

705,955 

591,142 

4,162,856 

320,589 
571,904 
224,341 
999,391 
2,780,837 

269,233 
132,575 
1,199,797 
969,665 
593,185 

1,374,699 
116,263 
97, 132 


783,854 
38,440 
321,053 
435,817 
5,155,868 

571,640 
948,846 
151,794 
332,361 
1,282,833 

989,083 

207,901 

211,155 

3,789,915 

1,560,526 

959,867 
746,312 
849,680 
785,486 
341,666 

1,190,659 
1,978,612 
2,715,040 
1,148,791 
409,517 

1,467,753 
230,720 
504,203 
99,000 
219,487 

2,230,3Ce 

238,738 

6,458,901 

1,210,540 

206,616 

3,422,694 

703,782 

603,542 

4,168,160 

325,855 
564,304 
225,008 
987,464 
2,726,396 

262,742 
133,980 
1,187,217 
971,396 
586,368 

1,365,707 
111,087 
61,883 


739,524 
47,185 
300,697 
415,988 
5,089,543 

552,922 
941,287 
146,365 
342,596 
1,182,710 

962,294 

205,298 

207,584 

3,745,696 

1,552,459 

968,399 

751,806 
833,055 
753,639 
330,246 

1,142,863 
1,967,702 
2,726,998 
1,137,958- 
377,712 

1,466,425 
239,700 
506,436 
95,964 
221,136 

2,182,689 

225,458 

6,393,653 

1,163,918 

206,016 

3,424,898 
690,467 
592,592 

4,134,583 
23,360 

329,620 
542,655 
229,308 
947,411 
2,643,005 

258,100 
132,868 
1,152,305 
956,097 
572,779 

1,355,304 
112,669 
29,451 


713,389 

279,907 

390,897 

4,733,521 

522,393 
919,793 
140,203 
346,729 
1,093,433 

386,480 

196,816 

199,676 

3,664,301 

1,528,812 

949,318 
733,946 
797,181 
726,310 
337,301 

1,084,152 
1,946,708 
2,631,029 
1,109,306 
336,270 

1,443,093 
218,442 
497, 166 
89,406 
215,998 

2,140,475 

211,876 

6,347,819 

1,102,039 
200,647 

3,218,821 
663,978 
573,796 

4,115,703 
21,325 

317,935 
518,343 
224,952 
908,671 
2,536,573 

247,331 
128,901 
1,105,919 
982,470 
568,245 

1,324,829 
108,252 


731,401 

269,193 

399,306 

4,640,312 

527,275 
932,475 
142,296 
358, 314 
1,051,866 

920,035 

200,739 

200,197 

3,780,956 

1,582,879 

960,696 
744,285 
823,859 
745,188 

341,047 

1,220,258 
2,013,856 

2,706,164 

1,136,124 

345,964 

1,467,128 
221,685 

501,474 
84,721 
222,857 

2,191,420 

211,922 

6,510,765 

1,099,125 

201,670 

3,365,384 
674,504 
582,873 

4,261,351 

333,802 
525,688 
220,008 
928,575 
2,492,889 

248,910 
133,947 
1,100,376 
994,502 
607,584 

1,353,327 
111,093 


710,102 

263,003 

384,817 

4,598,269 

509,876 
903,371 
139,153 
397,855 
979,277 

884,181 

198,799 

204,223 

3,702,381 

1,560,771 

956,125 
735,424 
300, 319 
706,734 
341,265 

1,240,093 
2,010,392 
2,550,756 
1,114,900 
331,583 

1,432,531 
219,313 
502,039 
82,165 
216,777 

2,117,199 

204,076 

6,435,701 

1,067,239 

211,000 

3,254,058 
652,877 
536,167 

4,217,689 

331,571 
514,812 
221,491 
873,469 
2,454,639 

249,544 
132,687 
1,082,020 
979,781 
610,803 

1,335,781 
106,711 


706,228 

235,389 

366,990 

4,290,151 

501,563 
896,247 
134,674 
371 , 578 
904,277 

344,144 

189,836 

199,127 

3,711,052 

1,521,399 

953,011 
709,666 
781,023 
674,174 
328,614 

1,309,272 
1,965,876 
2,555,269 
1,082,642 
320,712 

1,398,118 
218,104 
502,962 
69 ,903 
216,956 

2,089,995 

194,157 

6,299,130 

1,034,528 

203,780 

3,207,570 
675,187 
574,454 

4,180,637 

335,221 
490,804 
222,991 
856,721 
2,374,600 

241,693 
131,591 
1,001,078 
953,480 
589,091 

1,319,702 
106,318 


634,960 

214,002 

344,316 

4,078,066 

471,209 
870,345 
128,079 
373,762 
822,036 

770,782 

179,871 

191,116 

3,593,433 

1,464,200 

938,132 
669,904 
715,431 
637,844 
320,483 

1,162,059 
1,931,414 
2,477,041 
1,076,359 
291,822 

1,345,958 
208,597 
478,657 
65,544 
210,103 

2,008,440 
179,164 

6,123,930 
958,858 
198,629 

3,066,256 
606,613 
552,769 

4,060,469 

327,753 
452,555 
215,239 
804,601 
2,237,638 

225,356 
126,495 
956,580 
910,934 
599,684 

1,285,947 
101,191 


610,931 


fll^ V 


- 


. 




A V 










459,267 


r ticut 




1 




. '. . - mlumbia 




PI -d 2 


770,264 




725,497 






Tri h 








. . 






954,663 




654,528 


„ +,.„w 








- 




J 


1,104,645 






, ,. 








M' 'q-^iDDi 






1,358,024 














. . 






1,941,010 




















2,977,078 






n ^ 








Pi t^ Ri d Virpin Islands 


- 




321,008 






_ th DakQt 








T 






216,304 


Virginia 


917,380 
906,292 


. y-pp-„io 






1,267,743 




101,625 


Other areas' 


- 




59,079,620 


59,823,551 


59,180,568 


58,251,893 


56,305,881 


57,422,765 


56,316,869 


55,041,685 


52,664,631 


51,499,609 
















a/.o..w 


do/;.r=) 










3,291,834 
285,361 
1,712,650 
1,507,479 
29,770,013 

2,755,736 
5,141,238 
909,922 
1,655,251 
6,269,910 

4,167,257 

896,695 

890,415 

19,640,236 

7,004,294 

3,967,906 
3,197,240 
3,251,131 
3,606,286 
1,223,815 

5,660,245 
9,202,549 
12,921,648 
4,964,750 
1,443,458 

6,399,098 
912,288 

2,018,793 
566,527 
931,225 

11,863,692 
1,137,707 

34,017,074 

4,455,781 

761,562 


3,216,964 
290,254 
1,598,086 
1,423,375 
28,559,931 

2,579,683 
5,151,011 
895,720 
1,556,075 
6,056,183 

4,011,521 

897,985 

849,284 

19,923,139 

7,252,595 

3,654,332 
2,962,089 
3,359,160 
3,640,116 
1,255,725 

5,685,935 
9,106,049 
14,238,093 
4,907,244 
1,392,740 

6,249,130 
974,573 

1,749,155 
530,165 
908,346 

11,667,443 
1,111,271 

33,893,484 

4,467,355 

673,681 


2,964,568 
234,171 
1,456,967 
1,417,590 
26,643,536 

2,551,364 
4,984,439 
874,233 
1,523,972 
5,414,935 

3,793,532 

835,360 

832,577 

19,234,581 

7,032,222 

3,474,393 
2, 821, 165 
3,121,415 
3,296,122 
1,193,432 

5,511,023 
8,751,324 
13,910,812 
4,716,179 
1,351,135 

6,188,542 
890,246 

1,767,094 
496,276 
839,322 

11,135,104 

965,266 

32,208,136 

4,230,500 

663,252 


2,679,330 
244,100 
1,263,300 
1,311,805 
25,132,639 

2,225,143 
4,625,939 
794,649 
1,555,827 
4,607,886 

3,519,978 

801,826 

729,642 

17,270,748 

6,592,920 

3,270,824 
2,739,766 
2,920,886 
3,025,241 
1,028,641 

4,928,627 
8,285,733 
13,401,902 
4,373,102 
1,204,171 

5,936,919 
897,301 

1,679,067 
455,553 
797,094 

10,304,398 
891,310 

30,427,648 

3,984,982 

575,222 


2,445,188 

1,133,078 
1,221,340 
22,023,493 

2,137,817 
4,330,913 
659,777 
1,474,718 
4,069,109 

3,149,890 

719,347 

750,695 

16,597,198 

6,103,459 

3,276,360 
2,748,186 
2,772,582 

2,800,016 
1,031,944 

4,531,032 
7,553,935 
12,194,265 
4,077,055 
1,076,518 

5,494,885 
840,262 

1,666,113 
410,893 
750,875 

9,626,661 

804,415 

28,907,625 

3,591,944 

552,491 


2,451,310 

1,065,139 
1,178,792 
20,361,528 

2,072,906 
4,275,815 
691,070 
1,488,332 
3,807,180 

3,080,357 

705,874 

676,761 

16,558,187 

6,309,457 

3,282,905 
2,687,459 
2,733,890 
2,731,283 
1,066,856 

4,828,309 
7,809,602 
12,619,118 

4,010,779 
1,053,530 

5,639,955 
811,641 

1,703,596 
368,385 
760,947 

9,623,391 

805,671 

28,338,061 

3,503,692 

581,462 


2,287,810 

1,028,023 
1,064,449 
20,100,403 

1,924,615 

3,901,967 

652,433 

1,666,677 
3,447,667 

3,040,741 

662,693 

685,693 

15,797,279 

5,865,932 

3,093,004 
2,556,368 
2,625,929 
2,515,010 

1,036,442 

4,716,487 
7,494,638 
10,847,852 
3,911,846 
1,012,679 

5,181,397 
784,291 

1,636,387 
365,899 
663,649 

8,855,507 

792,097 

26,946,431 

3,358,545 

591,704 


2,247,438 

853,869 
1,075,003 
17,781,044 

1,800,684 
3,656,371 
603,774 
1,465,478 
3,068,460 

2,670,363 

653,243 

669,047 

15,291,223 

5,542,162 

3,057,144 
2,372,300 
2,389,652 
2,307,898 
924,022 

4,528,162 
6,882,364 
10,414,660 
3,608,219 

954,077 

4,889,219 
772,597 

1,648,425 
277,413 
657,231 

8,256,719 

696,934 

25,421,567 

3,150,874 

617,192 


1,836,199 

747,769 

948,913 

15,558,376 

1,609,065 
3,219,023 
545,893 
1,413,048 
2,594,907 

2,308,074 

583,616 

530,309 

13,469,090 

4,816,972 

2,387,396 
2,075,564 
2,116,609 
2,079,747 
847,446 

3,317,212 
6,309,165 
9,204,619 
3,429,054 
820,156 

4,346,393 
694.052 

1,474,351 
257,323 

578,200 

7,307,069 

620,901 

22,977,615 

2,759,007 

549,467 


1,634,742 




- 


. 


642,640 


Ark 




r 1 'f 






1,454,309 






n 1 




m t 'ot of rolumbia 




2 


2,263,498 




2,064,459 


Hawaii 


















2,735,521 






K t k 








M ■ 






3,381,243 






U' hf 


7,760,425 


Minnesota 










4,152,012 




















6,453,503 


New Mexico 





















end of table. 



INDIVIDUAL INCOME TAX RETURNS, 1949-1958 



79 



Table 22.— NIIMBER OF RETURNS, ADJUSTED GROSS INCOME, AND INCOME TAX, BY STATES AND TERRITORIES— Cone 



and Territorii 



ADJUSTED CffiOSS INCOME^— Continued 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Puerto Rico and Virgin Islands 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington^ 

West Virginia 

Wyoming 

Other areas* 

United states' 

INCCME TAX AFTER CREDITS 

Alabama 

Alaska 

Ar i zona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia 

Florida'' 

Illinois 

Indiana 

Kansas 

Kentucky 

Maine 

Maryland-' 

Massachusetts 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York' 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Puerto Rico and Virgin Islands 

Rhode Island 

South Carol ina 

South Dakota 

Tennessee 

Utah 

Virginia 

Washington^ 

West Virginia 

Wisconsin 

Wyoming 

Other areas' 

United States' 



310,287 
933,377 
836,326 
967,829 



389,818 
058,384 
789,833 
784,554 
697,359 

281,689 
483,167 
051,267 
985,990 
211,208 

6,120,661 
514,613 
434,241 



281,251,669 



341,908 
38,812 
194,233 
143,410 
3,816,218 

329,270 
719,754 
153,451 
231,221 



437,015 
101,791 
93,716 
2,622,089 
825,964 

435,864 
362,454 
351,212 
412,281 
128,329 

685,079 

1,124,516 

1.007,459 

565,036 

127,704 

781,955 
100,269 
223,876 
76,320 
101,790 

1,539,359 

130,050 

4,494,095 

405,310 

73,364 

2,040,652 
325,006 
343,661 

2,367,996 



171,729 
181,999 
80,214 
405,425 
1,540,539 

127,678 
47,254 
558,767 
622,938 
237,411 

700,507 
59,940 
45,417 



17,389,492 
2,871,543 
2,584,107 

19,513,876 



693,770 
3,796,296 
12,356,351 

1,210,617 
485,857 
4,997,439 
4,665,784 
2,491,355 

6,157,596 
543,190 
380,569 



323,363 
38,312 
183,156 
133,857 
3,650,876 

308,411 
727,089 
164,399 
213,070 
712,895 

419,306 
101,430 
83,035 
2,695,317 
894,409 

382,461 
321,627 
370,527 
427,308 
129,248 

675,769 

1,111,125 

1,844,636 

550,228 

119,481 



1,487,159 
127,330 

4,434,724 
416,596 
63,730 

2,219,449 
328,978 
291,606 

2,480,178 

164,769 
179,898 
63,286 
389,588 
1,536,437 

123,060 
46,491 
542,757 
564,834 
279,447 

716,869 

60,955 
49,447 



16,919,511 
2,762,684 
2,748,824 

18,814,973 



1,357,408 
1,953,856 
671,758 
3,673,637 
11,581,769 

1,155,318 
480,734 
4,752,338 
4,526,620 
2,298,203 

5,916,479 
493,013 
221,342 



267,653,322 



293,807 
32,080 
166, 183 
133,344 
3,373,902 

311,905 
711,347 
161,748 
207,224 
644,329 

385,097 
92,403 
89,123 
2,611,643 
851,909 

350,576 
303,256 
326,503 
388,475 
122,745 

646,807 

1,053,170 

1,839,256 

526,262 

119,728 

746,046 
97,412 

191,471 
69,245 
90,742 

1,411,688 
106,494 

4,232,431 
381,101 
60., 074 

2,149,144 
300,680 
332,267 

2,373,040 



166,319 
175,210 
59,847 
377,869 
1,404,530 

116,232 
48,531 
520,952 
544,624 
243,830 

686,386 
58,905 
17,169 



15,917,578 
2,572,734 
2,501,058 

17,358,034 
58,333 

1,305,004 
1,838,845 
645,905 
3,295,848 
10,696,062 

1,041,548 
406,288 
4,384,985 
4,202,739 
2,055,O?2 

5,480,112 



248,779,023 



265,376 
32,282 
140,561 
114,137 
3,203,108 

261,289 
629,646 
155,364 
211,851 
521,484 

354,661 

84,356 

69,637 

2,189,678 

774,859 

327,874 
295,560 
299,348 
337,321 
99,482 

563,566 

1,023,410 

1,687,906 

479,228 

101,591 

707,178 
93,183 

178,280 
62,559 
83,282 

1,265,901 
96,338 

3,947,023 
351,336 
51,462 

1,978,564 
269,320 
285,104 

2,080,488 
994 

165,508 
159,573 
53,270 
325,301 
1,284,540 

100,444 
40,617 
460,397 
501,047 
205,292 

622,459 
49,734 
11,191 



13,985,208 
2,440,907 
2,427,856 

16,167,247 
54,759 

1,145,238 
1,697,197 
653,976 
3,115,501 
10,243,638 

916,952 

395,251 

4,040,840 

4,263,326 

1,909,633 



122,154 

112,351 

2,712,536 

242,683 
579,527 
122,882 
198,493 
441,261 



324,799 
285,953 
279,260 
301,572 

94,161 

511,408 
861,447 
1,523,997 
428,629 
93,956 

636,757 
89,707 

176,026 
55,585 
74,769 



3,643,412 
304,673 
45,446 

1,670,881 
257,366 
270,500 

1,871,750 
1,230 

133,240 
140,929 
55,392 
297,279 
1,208,671 

83,989 
33,979 
415,799 
500,075 
184,974 



34,350,979 34,382,205 32,706,061 29,653,960 26,707,201 29,447,266 27,889,716 24,268,092 18,389,534 



14,793,481 
2,426,682 
2,290,259 

16,851,700 



1,213,827 
1,738,783 
631,981 
3,121,764 
9,636,925 

930,959 

381,610 

3,889,100 

4,140,917 

2,063,685 



123,797 

109,740 

2,836,356 

257,037 
621,055 
128,749 
219,126 
450,395 

322,706 
82, 129 
68,342 
2,343,043 
792,854 

358, 389 
307,052 
305,518 
321,701 
110,151 

595,562 

1,014,510 

1,772,474 

472,187 

97, 173 

734,844 
94,791 

194,096 
49,767 
87,626 

1,275,118 

91,501 

3,851,980 

330,854 

53,685 

2,024,999 
276,194 
290,606 

2,185,934 



154,676 
161,242 
59,375 
332,233 
1,223,160 

99,119 
38,227 
443,127 
541,342 
209,892 



13,298,984 
2,259,852 
2,316,087 

15,877,555 



909,692 

387,605 

3,721,293 

3,963,940 

2,065,157 



128,813 

100,262 

2,761,782 

250,542 
593,247 
124,124 
249,113 
408,481 

340,067 

30,683 

77,978 

2,215,931 

710,958 

331,511 
306,250 
285,662 
310,305 
110,076 

596,218 
980,446 
1,470,551 
457,051 
97,146 

681,645 
90, 524 

183,130 
52,654 
72,411 

1,166,757 

94,464 

3,656,252 

327,289 

53,426 

1,794,080 
267,793 
302, 123 

2,055,379 



152,007 
177,746 
56,670 
300,640 
1,222,734 

92,647 
37,008 
427,054 
530,356 
219,542 



12,579,855 
2,209,293 
2,228,677 

15,140,296 



1,130,209 
1,500,042 
626,089 
2,690,510 
8,793,470 

847,179 

384,539 

3,271,159 

3,789,088 

1,837,849 



97,987 

95,093 

2,320,749 

209,202 
499,452 
113,465 
205,066 
347,360 

270,254 

72,761 

64,198 

2,000,619 

628,066 

304,518 
248,399 
232,064 
254,235 

86,170 

512,850 
830,396 
1,287,949 
378,824 
86,585 

581,951 
84,505 

177,406 
39,455 
66,059 

998,208 

77,542 

3,315,250 

288,634 
56,000 

1,550,625 
230,307 
273,303 

1,797,449 



75,732 
34,330 
346,541 
472,971 
163,267 



10,711,935 
1,925,065 
2,004,8 

13,420,151 



1,055,155 
1,306,858 
557,368 
2,376,817 
7,874,215 

712,171 

352,663 

2,927,108 

3,254,719 

1,727,911 



74,810 

74,320 

1,739,734 

160,012 
379,930 
110,057 
170,054 
254,167 



247,277 
191,037 
178,429 
201,705 
65,225 

367,626 
650,438 
968,137 
299,539 
66,753 

438,202 
63,894 

135,422 
32,262 
49,153 

742,887 

57,740 

2,626,329 

218,691 

41,173 

1,037,976 
180,553 
205,952 

1,344,389 



109,031 
101,903 
40,509 
210,346 
882, 519 

53,033 
26,871 
253,349 

335,349 
132,030 



^Excludes returns with no adjusted gross income, 1949-54, and for 1955-56 and 1958 returns with no informatii 

^Includes returns from Panama Canal Zone, 1949-55. 

^For 1949-51, includes all returns from Puerto Rico and Virgin Islands and for 1952 part of such returns. 

* Includes part of the returns from Puerto Rico and Virgin Islands for 1952 and all such returns for 1953. 

'For 1949-54, includes returns from Alaska. 

'For 1955, returns with foreign addresses except those with Canadian and Mexican addresses filed in States co 
Puerto Rico who are also citizens of the United States, nonresident aliens residing in Puerto Rico, citizens o 
and citizens abroad. 

'includes Territories of Alaska and Hawaii and other areas listed in footnote 6. 

^Adj'usted gross income less adj'usted gross deficit, 1955-58. 



Synopsis of Laws 



SYNOPSIS OF LAWS 



Page 



Table A — Requirement for filing individual income tax returns, 
exemption allowances, and mininrom and maximum tax 
rates, 19-49-58 83 

Table B. — Requirement for filing the self -employment tax schedule 

and self-employment tax rates, 1951-58 83 

82 



SYNOPSIS OF LAWS 



83 



Table A. —REQUIREMENT FOR FILING INDIVIDUAL INCOME TAX RETURNS, EXEMPTION ALLOWANCES, AND MINIMUM 

AND MAXIMUM TAX RATES, 1949-58 



Items 


1958 


1957 


1956 


1955 


195'i 


1953 


1952 


1951 


1950 


19-^9 




(Dollars) 




V / 




600 




Additional exemptions for age 65 or older and for blindness^ 


600 




(Percent) 








20.^ 
91.0 
87.2 


17.4 

80.0 






20.0 
91.0 


22.2 
92.0 


16.6 
82.1 
77.0 












■ 











^For 1954-58, persons 65 years of age or over, gross income $1,200. Gross income for 1958 includes earned income 
from sources without the United States, even though tax-exempt. 

^Additional exemptions allowed only for taxpayer and, if joint return was filed, his wife. 

^Income tax before credits need not exceed the indicated percentages of net income for 1949-53, nor of taxable income 
for 1954-58. 



Table B. —REQUIREMENT FOR FILING THE SELF -EMPLOYMENT TAX SCHEDULE AND SELF -EMPLOYMENT 

TAX RATES, 1951-58 



Items 


1958 


1957 


1956 


1955 


1954 


1953 


1952 


1951 




(Dollars) 






V ; 




Self-employment net earnings requirement for filing return 

Maximum self-employment income subject to self -employment tax... 


400 
4,200 


400 
3,600 




(-Percent; 






X, J 








3 


l// 















Facsimiles of 

Individual Income 

Tax Returns, 

1958 



RETURN FORMS 

Page 

Form 1040: Individual Income Tax Return 1958 87 

Schedule C, Profit (or Loss) From Business or Profes- 
sion 107 

Schedule D, Gains and Losses From Sales or Exchanges 

of Property Ill 

Schedule F, Farm Income and Expenses 113 

Form lO^OA: Individual Income Tax Return 1958 119 

86 



FACSIMILES OF TAX RETURNS, 1958 



87 



U. S. INDiVIDOAL INCOME TAX RETURN-1958 



or Other Taxable Year Beginning --, 1958. Ending , 

(PLEASE TYPE OR PRINT) 



Name . 



Home 
address . 



(If this is a joint return of husband and wife, use hrst names and middle initials of both) 



(Number and street or rural route) 



(City, town, or post office) 



(Postal zone number) 



Your Social Security Number 



Wife's Social Security Number 



If Income Was All From Salaries and Wages, Use Pages 1 and 2 Only. See Page 3 of the Instructions. 



Check blocks which apply. f(a) Regular $600 exemption D Yourself □ Wifel Enter 

Check for wife if she had no ) (y Additional J600 exemption if 65 or over at end of taxable year . D Yourself D Wife } «emptlon*s 
income or tier income is 1 [ checked 

included in this return. i(c) Additional $600 exemption if blind at end of taxable year. ... D Yourself D WifeJ >. 

List first names of your children who Enter number 

qualify as dependents,- give ' "' <>♦ children 

address if different from yours. - lilted ^ 

Enter number of exemptions claimed For other persons listed at top of page 2 

Enter tfie total number of exemptions claimed on lines 1 , 2, and 3 



Enter all wages, salaries, bonuses, commissions, tips, and other compensation before payroll deductions (Including any 
excess of expense account or similar allowance paid by your employer over your ordinary and necessary business expenses. See instructions, pp. 5-6.) 



Employer's Name 



Where Employed (City and State) 



5^ = 

C/) 


6. 


i 


7 


Oi 




() 


8 






u_ 


9 


o 


10. 


00 


11. 



Enter totals here - 



Less: Excludable "Sick Pay" in line 5 (See instructions, page 7. Attach required statement). . . 

Balance (line 5 less line 6) 

Profit (or loss) from business from separate Schedule C 4 

Profit (or loss) from farming from separate Schedule F 4 

Other income (or loss) from page 3 (dividends, interest, rents, pensions, etc.). . 
ADJUSTED GROSS INCOME (sum of lines 7, 8,9, and 10) » 



(b) Income Tax Withheld 



If either you or your 
wife had more than 
one employer and the 
social security tax 
(PICA) withheld from 
wages exceeded 
$94.50, see Instruc- 
tions, page 5. 



Unmarried or legally separated persons qualifying as "Heed | — , Widows and widowers with dependent child who are entitled to the . — . 
of Household," see instructions, page 7, and check here I I special tax computation, see Instructions, page 8, and check here I I 



12. 



Tax on income on line 11. (If line 1 1 is under $5,000, and you do not itemize deductions, use Tax 
Table on page 1 6 of instructions to find your tax and check here D- If line 1 1 is $5,000 or more, or 
if you itemize deductions, compute your tax on page 2 and enter here the amount from line 9, page 2). 

1 3. (a) Dividends received credit from line 5 of Schedule J $ 

(b) Retirement income credit from line 12 of Schedule K. . . . | 

14. Balance (line 12 less line 13) 



was all 

from wages, < 
omit lines 13 
through 16 



1 5. Enter your self-employment tax from separate Schedule C or F. 
V 1 6. Sum of lines 1 4 and 15 

(a) Tax withheld (line 5 above). Attach Forms W-2, Copy B 13 

(b) Payments and credits on 1958 Declaration of Estimated Tax (m^tructlons!) •!_ 

District Director's office where paid - - 



If your tax (line 12 or 16) is larger than your payments (line 17), enter the balance due here— — 

Pay in tuii with this return to "Interna! Revenue Service." IS icss than $1.00, file return without payment. 

if your payments (line 1 7) ore larger than your tax (line 1 2 or 1 6), enter the overpayment here 

Sf less than Sl.aO, the overpayment will be refunded only fj:pon application. 

Amount of line 19 to be: (a) Credited on 1959 estimated tax $_ ,- (b) Refunded $_.. 



cticrge 



If *'Yo5,*' did you subn 
County in wliich you In 



itemized accounting of e?:penses I 



panali'tpi of perjury (t^ot this relu 
■ue, correct, and ccmplele return, 
equired to be reported in the retur 



xpenses lo your employer? D Yes D No /See p,ioe 
nployer? n Yes D No Vinsiruciic 



ony Fsditol 
before 19=8? 
G No 



vhich .he hcs any Un 



the tc^xpayer, his decia 



BOTH HUSBAND AND WIFE MUST SIGItll 



(Signature of prepo 



(Date) 

o70 — 16—71557-1 



8 FACSIMILES OF TAX RETURNS, 1958 

Form 1040-1958 EXEMPTIONS FOR PERSONS OTHER THAN YOUR WIFE AND CH3LDPvEN 



Pa9e2 



Name 


Relationship 


Months lived in your 

home. If born or died 

during year also write 

"B" or "D" 


Did dependent have 
gross income ol 
$600 or more? 


Amount YOU fur- 
nished lor dependent's 
support. II 100% 
write "All" 


Amount *uinished by 

OIHtRS including 

dependent 










$ 


$ 






































Enter on line 3, pase 1, the number of exemptions claimed above. 

-> If an exemption is based on a multiple-support agreement of a group of persons, attach information described on page 5 of instructions. 


ITEMIZED DEDUCTIONS— IF YOU DO NOT USE TAX TABLE OR STANDARD DEDUCTION 

It Husband and Wife (Not Legaliy Separated) File Separate Returns and One Itemizes Deductions, the Other Must Also EtemSze 

Stale to whom paid. It necessary write more than one item on a line or attach addilional sheets. Please put your name and address on any attachments. 



Contributions 



Interest 



Taxes 



Medical and 
dental expense 

(if 65 or over, 
see Instructions, 
page 10) 



Other 
Deductions 

(See page 10 of 
Instructions and 
attach informa- 
tlon required) 



Total paid but not to exceed 20% of line 11, page 1, except as described on page 8 of instructions. 



Total interest 



Total taxes 



Submit itemized list. Do not enter any expense compensated by Insurance or otherwise 

1 . Cost of medicines and drugs IN EXCESS of 1 percent of line 1 1 , page 1 

2. Other medical and dental expenses 

3. Total 

4. Enter 3 percent of line 1 1 , page 1 



5. Allowable amount (excess of line 3 over line 4). (See instructions, page 1 0, for limitations.) 



Total 



TOTAL DEDUCTIONS (Enter here and on line 2 of Tax Computation, below). 



TAX COMPUTATION— IF YOU DO NOT USE THE TAX TABLE 



1 . Enter Adjusted Gross Income from line 1 1 , page 1 , 

2. If deductions are itemized above, enter total of such deductions. If deductions are not itemized one/ //ne 1, 
above, is $5,000 or more: (a) a married person filing a separate return enter $500; 

(b) all others enter 1 percent of line 1 , or $1 ,0(X), whichever is smaller , 

3. Balance (line 1 less line 2) 

4. Multiply $600 by total number of exemptions claimed on line 4, page 1 

5. TAXABLE INCOME (line 3 less line 4) 

6. Tax on amount on line 5. Use appropriate tax rate schedule on page 1 5 of instructions. Do not use 
Tax Table on page 16 



7. If you had capital gains and the alfemative tax applies, enter the tax from separate Schedule D . 



8. Tax credits. If you itemized deductions, enter: 

(a) Credit for income tax paymsnts to a foreign country or U. S. possession (Attach Form 1116). . 

(b) Tax paid at source on tax-free covenant bond interest and credit for partially tax-exempt interest. 



(c) Total. 



9. Enter here and on line 1 2, page 1 , the amount shown on line 6 or 7 less amount claimed on line 8(c). . 



70 — 10—74557-1 



FACSIMILES OF TAX RETURNS, 1958 89 

Form 1040—1958 Page 3 

IF INCOME WAS ALL FROM SALARIES AND WAGES. TEAR OFF THIS PAGE AND FILE ONLY PAGES 1 AND 2 

Schedule A. INCOME FROM DIVIDENDS (income from savings (Building) and Loan Associations and Credit Unions should be entered as interest in Schedule B) 



1. Name oF qualifying corporation declaring dividend (See instructions, page 11): 

(Indicate by (H), (W), (J) whettier stock is held by husband, wife, or jointly) 



2. Total 

3. Exclusion of $50 (If both husband and wife received dividends, each is entitled to exclude 
not more than $50 of his (her) own dividends) 

4. Excess, if any, of line 2 over line 3. Enler here and on line 1, Schedule J 

5. Name of nonqualifying corporation declaring dividend: 



6. Enter total of lines 4 and 5 . 



Schedule B.— INCOME FROM INTEREST 



Nsme of payer 



Enter total here-^ 



Schedule D Summary.— GAINS AND LOSSES FROM SALES OR EXCHANGES OF PROPERTY 



1. From sole or exchange of capital assets (from separate Schedule D) 

2. From sale or exchange of property other than capital assets (from separate Schedule D) 



Schedule E.— INCOME FROM PENSIONS AND ANNUITIES (See instructions, page 12) 

Part I.— Genera! Rule 



1 . Investment in contract 

2. Expected return 

3. Percentage of income to be excluded 
(line 1 divided by line ?) 



% 



4. Amount received this year 

5. Amount excludable (line 4 multiplied 
by line 3) 



6. Taxable portion (excess of line 4 over line 5). 



-Where your cost wiil be recovered within three years and your employer has contributed part of the coat 



1 . Cost of annuity (amounts you paid) . 

2. Cost received tax-free in past years . 

3. Remainder of cost (line 1 less line 2). 



$ -- 



4. Amount received this year. 



5. Taxable portion (excess, if any, of line 4 over line 3). 



Schedule G.— INCOME FROM RENTS AND ROYALTIES 



I. Kind and location of property 



3. Depreciation (explain 
inSch. I) or depletion 



1 . Totals [$ 

2. Net income (or loss) from rents and royalties (column 2 less sum of columns 3, 4, and 5). 
Schedule H.— OTHER INCOME 



1 . Partnerships (name and address) 

2. Estates or trusts (name and address) . 

3. Other sources (state nature) -.. 



Total income (or loss) From above sources (Enter here and on line 10, page 1). 



o70 — 10 — 74557-1 



90 FACSIMILES OF TAX RETURNS, 1958 

Form 1C40— 1958 Page 4 

IF INCOME WAS ALL FROM SALARIES AND WAGES, TEAR OFF THIS PAGE AND FILE ONLY PAGES 1 AND 2 



Schedule 1.— EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED IN SCHEDULE G 


1. Kind of property (i( buildings, slate material of 

wtiich constructed). Exclude land and other 

nondepreciable property 


2. Date acquired 


3. Cost or other 
basis 


4. Depreciation allowed 

(or allowable) in prior 

years 


5. f^lethod of 
computing 
depreciation 


6. Rate (%) 
or life 
(years) 


7. Depreciation 
for this year 




































































































Schedule J.— DIVIDENDS RECEIVED CREDIT (See instructions, page 14) 



1 . Amount of dividends on line 4, Schedule A 

2. Tentative credit (4 percent oF line 1) 

LIMITATION ON CREDIT 

3. Tax shown on line 1 2, page 1 , plus amount, if any, shown on line 8(b), page 2 , 

4. 4 percent of taxable income , 

Taxable (a) If tax is computed on page 2, the amount shown on line 5, page 2. 

Income j (b) IF Tax Table is used, the amount shown on line 11, page 1, less 10 percent thereof, and less the 
iVieans deduction for exemptions ($600 multiplied by the number of exemptions claimed on line 4, page 1). 

5. Dividends received credit. Enter here and on line 1 3(a), page 1 , the smallest of the amounts on line 2, 
3, or 4, above 



Schedule K.— RETIREMENT INCOME CREDIT (See instructions, page 14) 



This credit does not apply; 1. If you received pensions or annuities of $1,200 or more from Social Security or Railroad Retirement; 

2. if you are under €5 years of age and had "earned income" of $2,100 or more; OR 

3. If you are 65 or over and under 72, and had "earned income*' of $2,409 or more^ 



If separate return, use column B only. If joint return, use column A for wife and column B for husband >■ 

Did you receive earned income in excess of $600 in each of any 1 calendar years before the taxable year 
1958? Widow or widowers see instructions, page 14 

If answer above is "Yes" in either column, furnish all information below in that column. 

1 . Retirement income for taxable year which is included in line 11 , page 1 , of this return: 

(a) For taxpayers under 65 years of age: 

Enter only income received from pensions and annuities under public retirement 
systems 

(b) For taxpayers 65 years of age or older: 

Enter total of pensions and annuities, interest, gross rents, and dividends 

LIMITATION ON RETIREMENT INCOME 

2. Maximum amount of retirement income for credit computation 

3. Deduct: 

(a) Amounts received in taxable year as pensions or annuities under the Social Security 
Act, the Railroad Retirement Acts, and certain other exclusions from gross income . . 

(b) Earned income received in taxable year: 

(This line does not apply to persons 72 years of age or over) 

(1) Taxpayers under 65 years of age, enter amount in excess of $900 

(2) Taxpayers 65 or over and under 72, enter amount in excess of $1 ,200 

4. Total of lines 3(a) and 3(b) 

5. Balance (line 2 minus line 4) 

6. Line 5 or line 1 , whichever is smaller -. 



DYes DNo 



n Yes n No 



1,200 



00 



1,200 



00 



7. Tentative credit (20 percent of line 6). 



8. Total tentative credit on this return (total of amounts on line 7, columns A and B). 

LIMITATION ON RETIREMENT INCOME CREDIT 

9. Amount of tax shown on line 1 2, page 1 

10. Less: Dividends received credit from line 5, Schedule J, above 

11. Balance (line 9 less line 10) 

1 2. Retirement income credit. Enter here and on line 1 3(b), page 1 , the amount on line 8 or line 1 1 , whichever 
is smaller 



070— 16— 74557-1 



FACSIMILES OF TAX RETURNS. 1958 



91 



Helpful Information on 



HOW TO PREPARE YOUR 



Income Tax Return 
on Form 1040 



for 1958 










Instructions — Form 1040 (1958) 



You can save money for yourself and 
your Government, if you — 

File your return early— Make sure the figures are right 

The final date for filing your return is April 15, but tax- 
payers who wait until the last minute often make costly 
mistakes. 

You should be able to prepare your return with the assist- 
ance of the information contained in this pamphlet. The 
instructions are arranged in the same order as the lines 
and pages of Form 1040. If you need help from the Internal 
Revenue Service, you can ask questions by phone of our 
nearest office or come in for other assistance. 

Commissioner of Internal Revenue 



566335 O - 60 - 7 



92 



FACSIMILES OF TAX RETURNS, 1958 



2 

Page 
Accounting methods and records . 7 

Annuities 12 

Business or professional income 

(Schedule C) .'. 7 

Casualty losses and thefts 10 

Child care (Form 2441 ) 10 

Computation of tax 3, 15 

Contributions 8 

Credits against tax 5, 8, 15 

Declaration of estimated tax. ... 14 

Dependents 4 

Depreciation 13 

Dividends ^11 

Dividends received credit 14 

Education expenses 10 

Employee business expenses 6 

Estates and trusts 13 



WHO MUST FILE A TAX RETURN 

Every citizen or resident of the United 
States — whether an adult or minor — 
who had $600 or more gross income in 
1958 must file; if 65 or over, $1,200 or 
more. To determine whether you must 
file, include earned income from sources 
without the United States, even though 
not taxable (see page 5) . A person with 
income of less than these amounts should 
file a return to get a refund if tax was 
withheld. A married person with income 
less than her (his) own personal exemp- 
tion (s) should file a joint return with 
husband or wife to get the smaller tax or 
larger refund for the couple. For self- 
employment tax filing requirements, see 
page 8 of these instructions. 

MEMBERS OF ARMED FORCES 

Members of Armed Forces should give 
name, service serial number, and per- 
manent home address. 

WHEN AND WHERE TO FILE 

Please file as early as possible. You 
must file not later than April 15. Mail 
your return to the "District Director of 
Internal Revenue" for the district in 
which you live. U. S. citizens abroad 
who have no legal residence or place of 
business in the United States should file 
with Director of International Opera- 
tions, Internal Revenue Service, Wash- 



CONTENTS 

Page 

Exemptions 4 

Farm income (Schedule F).... 7 

Head of household 7 

Interest 9, 1 1 

Joint return 4 

Married persons 4 

Medical and dental expenses. ... 9 

Miscellaneous expenses 10 

Net operating loss 7 

Other income 13 

Outside salesmen 6 

Partnerships 13 

Payment of tax 2,8 

Pensions 12 

Refunds 8 

Regulated investment companies 
(Form 2439) .^ 6 

GENERAL INSTRUCTIONS 

ington 25, D. C. A list of the District 
Directors' offices is set out below. 

WHERE TO GET FORMS 

As far as practical, the forms are 
mailed directly to taxpayers. Additional 
forms may be obtained from any Inter- 
nal Revenue Service office, and also at 
most banks and post offices. 

HOW TO PAY 

The balance of tax shown to be due 
on line 18, page 1, of your return on 
Form 1040 must be paid in full with 
your return if it amounts to $1.00 or 
more. Checks or money orders should 
be made payable to "Internal Revenue 
Service." 

SIGNATURE AND VERIFICATION 

You have not filed a valid return un- 
less you sign it. Husband and wife both 
must sign a joint return. 

Any person (s), firm, or corporation 
who prepares a taxpayer's return also 
must sign. If the return is prepared by 
a firm or corporation, the return should 
be signed in the name of the firm or 
corporation. This verification is not 
required if the return is prepared by a 
regular, full-time employee of ihe tax- 
payer such as a clerk, secretary, book- 
keeper, etc. 



LOCATIONS OF DISTRICT DIRECTORS' 



Following Is a list of Ih* DislricI Directors' offlct 
If there it more than one District Director's office 
your Stole and you ore not sure which one to us 
consult your local pott office. 

ALABAMA — Birmingham 3, Ala. 

ALASKA — Tacomo 2, Wash. 

ARIZONA — Phoenix, Ariz. 

ARKANSAS— Little Rock, Ark. 

CALIFORNIA— Los Angeles 12, Colif.; San Francisco 

Calif. 
COLORADO — Denver 2, Colo. 
CONNECTICUT— Hartford, Conn. 
DELAWARE— Wilmington 99, Del. 
DISTRICT OF COLUMBIA— Baltimore 2, Md. 
FLORIDA— Jacksonville, Fla. 
GEORGIA — Atlanta 3, Go. 
HAWAII— Honolulu 13, T. H. 
IDAHO — Boise, Idaho. 

ILLINOIS — Chicago 2, III.; Springfield, III. 
INDIANA — Indianapolis, Ind. 
IOWA— Det Moines 8, Iowa. 
KANSAS— Wichita 21 , Kont. 



KENTUCKY— Louisville 2, Ky. 

LOUISIANA— New Orleans, La. 

MAINE — Augusta, Moine. 

MARYLAND — Baltimore 2, Md. 

MASSACHUSETTS — Boston IS, Most. 

MICHIGAN — Detroit 31, Mich. 

MINNESOTA— St. Paul 1, Minn. 

MISSISSIPPI— Jockson S, Miss. 

MISSOURI — St. Louis 1, Mo.; Kansas City 6, Mo. 

MONTANA— Helena, Mont. 

NEBRASKA — Omaha 2, Nebr. 

NEVADA— Reno, Nev. 

NEW HAMPSHIRE — Portsmouth, N. H. 

NEW JERSEY— Industrial Office BIdg., Newark 2, N. J.; 

7th and Cooper Streets, Camden, N. J. 
NEW MEXICO — Albuquerque, N. Mex. 
NEW YORK— Brooklyn 1, N. Y.; 24S West Houston 

Street, New York 14, N. Y.; 484 Lexington Avenue, 

New York 17, N. Y.; Albany 10, N. Y.; Syracuse 1, 

N. Y.; Buffalo 2, N. Y. 
NORTH CAROLINA— Greensboro, N. C. 
NORTH DAKOTA— Fargo, N. Dak. 
OHIO — Cleveland 15, Ohio; Columbus 15, Ohio; Toledo 

1, Ohio; Cincinnati 2, Ohio. 



Page 

Reimbursed expenses 6 

Rents and royalties 12 

Retirement income credit. ..;... 14 
Sale or exchange of property 

(Schedule D) 11 

Sale of personal residence 11 

Self-employment tax (Sch. SE). 8 

Sick pay exclusion (Form 2440) . 7 
Social security (F. I. C. A.) tax 

credit 5 

Tax deductions 9 

Tax rate schedules 15 

Tax Table 16 

Travel expenses 6 

Wages and salaries 5 

When and where to file returns. . 2 

Widows and widowers 8 



YOUR RIGHTS OF APPEAL 

If you believe there is an error in any 
bill, statement, or refund in connection 
with your tax, you are entitled to have 
the matter reconsidered by the office of 
the District Director. You will be given 
an opportunity to discuss any change in 
your tax which is proposed, and you will 
be advised of further appeal rights if 
you cannot reach an agreement. Upon 
request by the District Director you 
must be able to support all deductions 
claimed by you. 
OTHER PUBLICATIONS 

Copies of the following Internal Rev- 
enue Service Publications may be ob- 
tained from your District Director: 
*Your Federal Income Tax . 

(I. R. S. Pub. No. 17) . . . Price 35j^ 
*Tax Guide for Small Business 

(I. R. S. Pub. No. 334) . . Price 35/ 
Employer's Tax Guide, Circular E 

(I. R. S. Pub. No, 15) Free 

Farmers' Tax Guide 

(I.R. S. Pub. No. 225) Free 

Tax Guide for U. S. 
Citizens Abroad 

(I. R. S. Pub. No. 54) Free 

Casualties, Thefts, Condemnations 

(I. R. S. Pub. No. 155) Free 

*Also available from the Superintend- 
ent of Documents, Government Print- 
ing Office, Washington 25, D. C. 

OFFICES 

OKLAHOMA — Oklahoma City, Okla. 

OREGON — Portland 12, Greg. 

PANAMA CANAL ZONE — Director of International Oper- 
ations, Internal Revenue Service, Washington 25, D. C. 

PENNSYLVANIA— Philadelphia 7, Pa.; Scranton 14, Pa.; 
Post Office and Courthouse Building, Pittsburgh 30, Pa. 

PUERTO RICO— Sonturce Building, Sanlurce, P. R. 

RHODE ISLAND — Providence 2, R. I. 

SOUTH CAROLINA— Columbia, S. C. 

SOUTH DAKOTA— Aberdeen, S. Dak. 

TENNESSEE — Nashville 3, Tenn. 

TEXAS — Austin 14, Tex.; Dallas 1, Tex. 

UTAH— Salt lake City, Utah. 

VERMONT— Burlington, Vt. 

VIRGINIA— Richmond, Va. 

VIRGIN ISLANDS — Charlotte Amolle, SI. Thomal, V. I. 

WASHINGTON— Tacoma 2, Wash. 

WEST VIRGINIA — Parkersburg, W. Va. 

WISCONSIN — Milwaukee 2, Wis. 

WYOMING — Cheyenne, Wyo. 

FOREIGN ADDRESSES — Taxpayers with legal residence 
In Foreign Countries — Director of International Opera- 
tions, Internal Revenue Service, Washington 25, D. C. 

o6»— 10— 7«6S8-1 



FACSIMILES OF TAX RETURNS, 1958 



93 
3 



WAGE EARNERS-NEW FORM FOR INCOME UNDER $10,000 



This year the simplified card form (Form 1040 A) has been extended to many more taxpayers, 
able to use it (instead of Form 1040) IF: 



You may be 



1. Your gross income was lesslhan $10,000, AND 

2. It consisted of wages reported on withholding statements (Forms W-2) and not more than $200 total of other wages, interest, and 

dividends, AND 

3. You wish to take the standard deduction (about 10% of your income) instead of itemizing deductions. 

Form 1040A and its special instruction sheet provide further information about its use. One of the special features 
is that if your income is less than $5,000, you can choose to have the Internal Revenue Service figure your tax for you. 
You can obtain these forms from any Internal Revenue Service office and from most banks and post offices. 



HOW TO USE FORM 1040 



Form 1040 is designed to meet the needs of all persons who do not use card Form 1040A described above. Most tax- 
payers who use Form 1040 will find it necessary to use only a part of the form. Therefore, it is so arranged that pages 3 
and 4 may be discarded if not needed. 

• If your income was less than $5,000 and all from salaries and wages, you may need page 1 only. 

• If your income was all from salaries and wages, you need only the first two pages of Form 1040. 

• Income from farming or other business, which is figured on a separate schedule, is to be reported on page 1. All 
other income is to be reported on page 3. 

• Page 2 contains a schedule for claiming exemptions for persons other than your wife and children, for itemizing 
your nonbusiness deductions, and for figuring your tax. 

• Page 4 contains the schedules for computing the credits for dividends received and retirement income. 

HOW TO FILL IN FORM 1040 

Filling in the form involves FOUR STEPS: 



STEP 1 

Claiming Your 

Exemptions 



List on page 1 exemptions for yourself (and for your wife, if you are filing a joint return or if she 
had no income) and for your children. List exemptions for dependents other than your children in the 
schedule at the top of page 2. 

DETAILED INSTRUCTIONS, PAGE 4 OF THIS PAMPHLET. 



STEP 2 
Reporting Your 



Enter income from salaries and wages on page 1 ; also, income from farming and other business 
income, the details of which will be shown in separate Schedules F and C. All other income is to be 
reported on page 3. If you are an employee, see pages 6 and 7 of these instructions for infor- 
mation relating to the treatment of sick pay and special deductions for travel expenses, reimbursed 
expenses, etc. 

DETAILED INSTRUCTIONS, PAGES 5, 6, AND 7 OF THIS PAMPHLET. 



STEP 3 

Claiming Your 

Deductions 



The law allows you to reduce your income by certain contributions to charity, expenditures for 
interest, taxes, extraordinary medical and dental expenses, child care, certain losses, and miscellaneous 
items, provided you itemize them on your return. Since there are restrictions on these deductions, 
refer to pages 8, 9, 10, and 1 1 of this pamphlet for details. 

The law also provides a "standard deduction" for persons who do not wish to Hst their deductions. 
The Tax Table on page 16 automatically allows a standard deduction for persons having income of less 
than $5,000. The standard deduction for those with income of $5,000 or more is 10 percent of the 
income on line 11, page 1 of the form, but not to exceed $1,000 ($500 for a married person filing a 
separate return). It will be wise to compare the total of your itemized deductions with the standard 
deduction to see which method is better. 

DETAILED INSTRUCTIONS, PAGES 8, 9, 10, AND 11 OF THIS PAMPHLET. 



STEP 4 

Figuring Your 

Tax 



If you do not itemize deductions and if your income on line 11, page 1 of the form, is less than 
$5,000, you must use the Tax Table on page 16. If you itemize your deductions or if your income 
is $5,000 or more, you must use the tax computation schedule on page 2 of the form and the tax rate 
schedules on page 15 of this pamphlet. See page 7 if you are unmarried or legally separated, main- 
tain a home, and have a dependent living with you. Also see page 8 if you are a widow or widower 
and have a dependent child. 

DETAILED INSTRUCTIONS, PAGE 15 OF THIS PAMPHLET. 



»«e— 19—74688-1 



94 
4 



FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 1 OF FORM 1040 



MARRIED PERSONS— JOINT OR SEPARATE RETURNS 



Advantages of a Joint Return. — In most 

cases it is advantageous for married 
couples to file joint returns. The law 
provides "split income" benefits in fig- 
uring the tax on a joint return which 
often results in a lower tax than would 
result from separate returns. 

How To Prepare a Joint Return. — In a 

joint return you must include all income 
and deductions of both husband and 
wife. In the return heading, list both 
names including middle initials (for 
example : "John F. and Mary L. Doe") . 
Both must sign the return. 

A husband and wife may file a joint 
return even though one of them had no 
income. A joint return may not be 
filed if either husband or wife was a 



nonresident alien at any time during 
the taxable year. 

When a joint return is filed, the cou- 
ple assume full legal responsibility for 
the entire tax, and if one fails to pay, 
the other must pay it. 

How To Prepare a Separate Return. — In a 

separate return each must report his 
or her separate income and deductions 
and fill in a separate form. The "split 
income" provisions of the Federal tax 
law do not apply to separate returns of 
husband and wife. When filing sep- 
arate returns, the husband and wife 
should each claim the allowable deduc- 
tions paid with his or her own funds. 
(In community property States, deduc- 



tions resulting from payments made out 
of funds belonging jointly to husband 
and wife may be divided half and half.) 
If one itemizes and claims actual deduc- 
tions, then both must do so. 

Changes in Marital Status. — If mar- 
ried at the end of your taxable year, 
you are considered married for the en- 
tire year. If divorced or legally sep- 
arated on or before the end of your 
year, you are considered single for the 
entire year. If your wife or husband 
died during the year, you are considered 
married for the entire year, and may 
file a joint return. You may also be 
entitled to the benefits of a joint return 
for the two years following the death of 
your husband or wife. See page 8. 



HOW TO CLAIM YOUR EXEMPTIONS 

You Are Allowed a Deduction of $600 for Each Exemption for Which You Qualify as Explained Below 



LINE 1— EXEn/IPTIONS FOR YOU AND 
WIFE 

For You. — You, as the taxpayer, are al- 
ways entitled to at least one exemption. 
If, at the end of your taxable year, you 
were blind or were 65 or over, you get 
two exemptions. If you were both 
blind and 65 or over, you get three 
e>:emptions. Be sure to check the 
appropriate blocks. 

For Your Wife. — An exemption is al- 
lowed for your wife (or husband) if 
you and she are filing a joint return. 
If you file a separate return, you may 
claim her exemptions only if she had no 
income and did not receive more than 
half her support from another taxpayer. 
Otherwise, your wife's exemptions are 
like your own — one, if she was neither 
blind nor 65 or over; two, if she was 
either blind or 65 or over; three, if she 
was both blind and 65 or over. 

In Case of Death. — If your wife or hus- 
band died during 1958, the number of 
her or his exemptions is determined as 
of the date of death. 

Proof of Blindness.— If totally blind, 
a statement of such fact must be at- 
tached to the return. If partially blind, 
attach a statement from a qualified phy- 
sician or a registered optometrist that 
( 1 ) central visual acuity did not exceed 
20/200 in the better eye with correcting 
lenses, or (2) that the widest diameter 
of the visual field subtends an angle no 
greater than 20°. 



LINE 2— EXEMPTIONS FOR YOUR 
CHILDREN 

You are entitled to one exemption for 
each child (including a stepchild, or 
legally adopted child), if during the 
taxable year, that child : 

1. Income.— Received less than $600 
gross income (unless the child was un- 
der 19 or was a student, in which case 
this limitation does not apply), and 

2. Support. — Received more than half 
of his or her support from you (or from 
husband or wife if a joint return is filed ) , 
(see definition below of support), and 

3. Married Children. — Did not file a 

joint return with her husband (or his 
wife), and 

4. Nationality. — Was either a citizen or 
resident of the United States or a resi- 
dent of Canada, Mexico, the Republic 
of Panama or the Canal Zone; or was 
an alien child adopted by and living 
with a United States citizen abroad. 

Definition of Support. — Support in- 
cludes food, shelter, clothing, medical 
and dental care, education, and the like. 
Generally, the amount of an item of 
support will be the amount of expense 
incurred by the one furnishing such 
item. If the item of support furnished 
by an individual is in the form of prop- 
erty or lodging, it will be necessary to 
measure the amount of such item of 
support in terms of its fair market value. 
In computing the amount of sup- 
port include amounts contributed by 



the dependent for his own support and 
also anjounts ordinarily excludable from 
gross income. 

In figuring whether you provide more 
than half of the support of a student, 
you may disregard amounts received by 
him as scholarships. 

Definition of Student. — The law de- 
fines a student as an individual, who 
during each of 5 calendar months dur- 
ing the year, is (a) a full-time student 
at an educational institution or (b) 
pursuing a full-time course of institu- 
tional on-farm training under the su- 
pervision of an accredited agent of an 
educational institution or of a State, or 
a political subdivision of a State. • 

LINE 3— EXEMPTIONS FOR PERSONS 
OTHER THAN YOUR CHILDREN 

You are entitled to one exemption for 
each other dependent who meets all the 
following requirements for the year: 

1. Received less tlian $600 gross in- 
come, and 

2. Received more than half of his or 
her support from you (or from husband 
or wife if a joint return is filed), (see 
definition of support on this page) , and 

3. Did not file a joint return with her 
husband (or his wife), and 

4. Was either a citizen or resident 
of the United States or a resident of 
Canada, Mexico, the Republic of Pan- 
ama or the Canal Zone, and 

5. Either (1) for your entire taxable 
year had your home as his principal 
place of abode and was a member of 
your household; Or (2) was related to 

o»9— 16— 74MS-I 



FACSIMILES OF TAX RETURNS, 1958 



95 



INSTRUCTIONS FOR PAGE 1 OF FORM 1040— Continued 



you (or to husband or wife if a joint 
return is filed) in one of the following 
ways: 

Mother Stepbrother Son-in-law 

Father Stepsister Daughter-in-law 

Grandmother Stepmother The following if 

Grandfather Stepfather related by blood: 

Brother Mother-in-law Uncle 

Sister Father-in-law Aunt 

Grandson Brother-in-law Nephew 
Granddaughter Sister-in-law Niece 

The information concerning these de- 
pendents must be shown in the schedule 
at the top of page 2 of Form 1040. 

Birth or Death of Dependent. — You can 

claim a full $600 exemption for a de- 



pendent who was born or died during 
the year if the tests for claiming an 
exemption for such dependent are met 
for the part of the year during which he 
was alive. 

Exemptions for Individuals Supported by 
More Than One Taxpayer. — If several per- 
sons contributed toward the support of 
an individual during the taxable year, 
but none contributed over half of the 
support, they may designate one of their 
number to claim the exemption if: 

(a) They as a group have provided 
over half of the support of the indi- 
vidual ; and 



(b) Each of them, had he contrib- 
uted over half of the support, would 
have been entitled to claim the indi- 
vidual as a dependent; and 

(c) The person claiming the exemp- 
tion for the individual contributed over 
10 percent of the support; and 

(d) Each other person in the group 
who contributed over 10 percent of the 
individual's support makes a declara- 
tion that he will not claim the individ- 
ual as a dependent for the year. Form 
2120, Multiple Support Declaration, is 
available at any Internal Revenue Serv- 
ice office. 



HOW TO REPORT YOUR INCOME 

The law says all kinds of income in cifically exempt must be included in in finding out what kinds of income 

whatever form received are subject to your return, even though it may be must be reported on your income tax 

ta.x with specific exceptions. This offset by expenses and other deductions, return and what items are exempt from 

means that all income which is not spc- The following examples will help you tax. 

Examples of Income Which Must Be Reported 

Wages, salaries, bonuses, commissions, Industrial, civil service and other pen- Alimony, separate maintenance or sup- 

sions, annuities, endowments. port payments received from (and 

Rents and royalties from property, pat- deductible by) your husband (or 

ents, copyrights. 

Profits from business or profession. 

Your share of partnership profits; estate 
or trust income. 

Examples of Income Which Should Not Be Reported 

Government payments and benefits Workmen's compensation, insurance, Federal and 
made to veterans and their families damages, etc., for injury or sickness. benefits, 

except nondisability retirement pay. Interest on State and municipal bonds. Railroad Retirement Act benefits. 

Dividends on veterans' insurance. Life insurance proceeds upon death. Gifts, inheritances, bequests. 



fees, tips, and gratuities. 
Dividends. 

Interest on bank deposits, bonds, notes. 
Interest on U. S. Savings bonds. 
Profits from sales or exchanges of real 

estate, securities, or otlier property. 



ife). For details see Other Deduc- 
tions, page 10 of this pamphlet. 



State Social Security 



ROUNDING OFF TO WHOLE-DOLLAR 
AMOUNTS 

If you wish, the money items on your 
return and accompanying schedules re- 
quired by such return may be shown as 
whole-dollar amounts. This means that 
you eliminate any amount less than 50 
cents, and increase any amount from 
50 cents through 99 cents to the next 
higher dollar. 
ATTACHMENTS TO THE RETURN 

Attachments may be used in the prep- 
aration of your return and supplemental 
schedules, provided they contain all of 
the required information and that sum- 
marized totals of the items shown in the 
attachments are entered on the return 
and schedules. This does not apply to 
page 3 of the business and farm sched- 
ules (Schedules C and F) which the 
Service separates from the returns and 
transmits to the Social Security Admin- 
istration for the recording of informa- 
tion in benefit accounts, or to any tax 
computation portion of a form or sched- 
ule. 
LINE 5— WAGES, SALARIES, ETC. 

Enter all wages, salaries, etc., on 
the lines provided. If more space is 



needed attach a separate statement. 
You must report the full amount of your 
wages, salaries, fees, commissions, tips, 
bonuses, and other payments for your 
personal services even though taxes and 
other amounts have been withheld by 
your employer. 

Payment in Merchandise, etc. — If you 

are paid in whole or in part in mer- 
chandise, services, stock, or other things 
of value, you must determine the fair 
market value of such items and include 
it in your wages. 

Meals and Living Quarters. — Employees 

who, as a matter of choice, receive meals 
and lodging from their employers 
whether or not it is agreed to be part of 
their salaries must include in income 
the fair market value of the meals and 
lodging. 

However, if, for the convenience of 
your employer, your meals are furnished 
at your place of employment or you arc 
required to accept lodging at your place 
of employment as a condition of your 
employment, the value of the meals or 
lodging is not to be reported in your 
return. 



Earned Income From Sources Without The 

United States. — For the purpose of de- 
termining whether an income tax return 
must be filed for years beginning in 
1958, gros^ income must be computed 
without regard to the exclusion provided 
for income earned from sources with- 
out the United States. If you received 
such income and believe it is excludable 
for income tax purposes, complete 
Form 2555 and attach it to your Form 
1040. 

Income Tax Withheld. — Itemize the 

taxes withheld, and report the total 
amount on line 17 (a). If you have 
lost any Withholding Statement, ask 
your employer for a copy. If you can- 
not furnish Withholding Statements for 
all taxes withheld from you, attach an 
explanation. 

Excess Social Security (F. !. C. A.) Tax 

Credit.— If more than $94.50 of Social 
Security (F. I. C. A.) employee t.tx wa'; 
withheld during 1958 because tithcr you 
or your wife received waives from more 
than one employer, the excess should be 
claimed as a credit against income lax. 
Enter any excess of Soci.il Security 
(F. I. C. A.) tax withheld over $94.50 

o6»— 10— 746t.8-I 



96 
6 



FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 1 OF FORM 1040— Continued 



on line 5, column (b), and write 
"F. I. C. A.- tax" in the "Where Em- 
ployed" column. If a joint return, do 
not add the Social Security (F. I. C. A.) 
tax withheld from both husband and 
wife to figure the excess over $94.50; 
compute the credit separately. 

Credit for Taxes Paid by Regulated Invest- 
ment Companies. — If you are entitled to a 
credit for taxes paid by a regulated 
investment company on undistributed 
capital gains, enter the credit on line 
5, column (b), and write "Credit from 
regulated investment company" in 
"Where Employed" column. To sub- 
stantiate the credit claimed attach Copy 
B of Form 2439 to page 1 of Form 1040 
in the same manner as Withholding 
Statements, Form W-2. 
EMPLOYEE BUSINESS EXPENSES 

Certain expenses incurred by an em- 
ployee in connection with his employ- 
ment, amounts charged to his employer, 
and any advances, allowances, or reim- 
bursements he receives for such expenses 
must be taken into account in deter- 
mining his income tax liability. UndeY 
certain circumstances, however, the ex- 
penses — and an equal amount of the 
employer's payments — need not be 
shown on the return. The following 
instructions will assist you in making 
your computation: Part I deals with de- 
ductible expenses and Part II with re- 
porting requirements. (Note: You do 
not have to report in your return em- 
ployer paid expenses incurred for in- 
cidentals, such as the purchase of office 
supplies for the employer or local trans- 
portation in connection with an errand.) 

Part I. Employee Business Expenses Which 
Are Deductible 

The law requires that certain em- 
ployee business expenses be handled 
differently from other expenses. The 
rules are as follows: 

A. Travel, transportation, and out- 
side salesmen expenses: 

You may deduct these expenses from 
the amounts you are required to report 
in item 5, page 1, to the extent they arc 
not paid for by your employer. See Part 
II for reporting requirements. Travel, 
transportation, and outside salesmen ex- 
penses mean : 

( 1 ) Expenses for travel, including 
the cost of meals and lodging, while 
temporarily away, at least overnight 
but ordinarily for less than a year, from 
the city, town or other general area 
which constitutes your principal or 
regular business location arc deductible 
as expenses for travel while "away from 
home." For this purpose, "home" 



means your principal or regular business 
location. 

(2) Transportation expenses in con- 
nection with your duties as an employee 
are deductible even though you are not 
away from home as explained above. 
Transportation expenses include pay- 
ments for actual travel or, if you use 
your own car, they include the business 
portion of the cost of operation, includ- 
ing fuel, repairs, and depreciation. The 
cost of commuting between your resi- 
dence and your principal place of em- 
ployment is a personal expense and is 
not deductible. 

(3) If you are an "outside salesman" 
you may deduct all of the expenses 
which are ordinary and necessary in 
performing your duties. This means 
that in addition to the expenses de- 
scribed above you are entitled to deduct 
other business expenses such as business 
entertainment, stationery, and postage. 
The term "outside salesman" means one 
who is engaged in full time solicitation 
of business for his employer away from 
the employer's place of business. It 
does not include a person whose prin- 
cipal activities consist of service and 
delivery as, for example, a milk driver- 
salesman. 

B. Other employee business expenses: 
If you itemize deductions on page 2 
of your return, you may deduct (under 
the heading "Other Deductions") ordi- 
nary and necessary business expenses, 
other than those described in "A" above 
to the extent that they are not paid for 
by your employer. Examples of such 
expenses are entertainment, professional 
and union dues, and the cost of tools, 
materials, etc. 

Part 11. Reporting Employee Business Ex- 
penses 

Expenses you paid or incurred as an 
employee, ■ or expenses which you 
charged to your employer, or expenses 
for which you received an advance, al- 
lowance, or reimbursement should be 
handled as follows: 

A. Employees who are required to 
and do account to their employers: 

If you were required to and did sub- 
mit an expense voucher or other ac- 
counting to your employer in which you 
listed your business expenses by cate- 
gories (i. e., transportation, meals and 
lodging while away from home over- 
niglit, entertainment expenses, and 
other business expenses), and if your 
answer is "Yes" to the questions on page 
1 of Form 1040 relating to reimbursed 
expenses, you may report as follows: 

(1) // employer's jiaymcnls equaled 
business expenses. — You need not re- 



port these items on your return either 
itemized or in total amount. 

(2) // employer's payments exceeded 
business expenses. — If you received from 
or charged to your employer (for ex- 
ample, through the use of credit cards) 
amounts in excess of your actual busi- 
ness expenses, or if your employer paid 
your personal expenses for you, the ex- 
cess amounts and the amount of per- 
sonal expenses must be included in 
income on line 5, page 1, of Form 1040, 
and must be identified as "E.xcess 
Reimbursements." 

(3) // expenses exceeded employer's 
payments. — If you wish to claim a de- 
duction for the amount of the excess ex- 
penses, you must, in addition to answer- 
ing the questions relating to business 
expenses on page 1 of Form 1040, sub- 
mit the following information "with your 
return : 

(a) The total of all amounts re- 
ceived from or charged to your em- 
ployer for business expenses, including 
amounts charged directly or indirectly 
through credit cards or otherwise, 

{b) The- nature of your occupation, 

[c) The number of days away from 
home on business, and 

{d) The amount of your expenses 
which constitute ordinary and necessary 
business expenses broken down into such 
broad categories as transportation, 
meals and lodging while away from 
home overnight, entertainment ex- 
penses, and other business expenses. 

In preparing your statement and 
claiming your expenses be sure to sep- 
arate the expenses as explained in Part 
I which are deductible in computing 
the amount to be entered on line 5, page 
1, of the return and those expenses 
which are deductible on page 2 of the 
return. Form 2106 is available in any 
Internal Revenue Service oflSce for use 
in listing these expenses. 

If you received per diem, in lieu of 
subsistence, of not more than $15 per 
day, or a mileage allowance of not more 
than 12/2 cents per mile for travel 
within the continental limits of the 
United States, it will be considered that 
you were required to account to your 
employer, and you will be required to 
leport only the excess of the allowance 
over your actual expenses. 

B. Employees who do not account to 
their employers or who are not reim- 
bursed for their expenses: 

If you were not required to account 
to your employer (or if you were re- 
quired to accoimt and did not) or if 
your em]5loycr did not pay for your busi- 
ness exprnses in connection with your 



FACSIMILES OF TAX RETURNS. 1958 
INSTRUCTIONS FOR PAGE 1 OF FORM 1040— Continued 



97 
7 



duties as an employee, submit the in- 
formation required in subparagraph (3) 
above in a statement attached to your 
return, answer the questions on page 1 
of Form 104O relating to reimbursed 
expenses and complete your return as 
follows: 

(1) // employer's payments equaled 
business expenses. — No further entry 
with regard to the transactions need be 
made on the form. 

( 2 ) // employer's payments exceeded 
business expenses. — If you received 
from or charged to your employer (for 
example, through the use of credit 
cards) amounts in excess of your actual 
business expenses, or if your employer 
paid your personal expenses for you, the 
excess amounts and the amount of per- 
sonal expenses must be included in in- 
come on line 5, page 1, of Form 1040, 
and identified as "Excess Reimburse- 
ments." 

(3) // your business expenses exceed- 
ed employer's payments or the employer 
did not pay for your expenses. — You 
may claim deductions for those business 
expenses not paid by him as explained 
in subparagraph (3) of Part II. 

LINE 6— EXCLUSION FOR "SICK PAY" 

The law allows you to exclude from 
income amounts received under a wage 
continuation plan for the period during 
which you were absent from work on ac- 
count of personal injuries or sickness. 
If both you and your employer contrib- 
ute to the plan, any benefits attrib- 
utable to your own contributions are 
excludable without limit, but there are 
certain limitations on the exclusion of 
the benefits attributable to your employ- 
er's contributions. In the case of such a 
contributory plan, it will be necessary for 
you to know to what extent any benefits 
are attributable to your contributions 
and to what extent they are attributable 
to your employer's contributions. 

The employer-provided wage contin- 
uation payments can be excluded at a 
rate not to exceed $100 a week. In cases 
where these payments exceed a weekly 
rate of $100, the exclusion is figured by 
multiplying the amount received by 100 
and dividing the result by the weekly 
rate of pa'^Tncnt. 

If your absence is due to sickness, the 
exclusion of employer-provided wage 
continuation payments does not apply 
to the amounts received for the first 7 
calendar days of each absence from 
work. However, if you were (a") hos- 
pitalized on account of sickness for at 
least one day at any time during the ab- 
sence from work, or (b) injured, the 
exclusion applies from the first day of 
absence. 



If you received sick pay and it is in- 
cluded in your gross wages as shown on 
Form W-2, enter the gross wages on 
line 5, and enter on line 6 the amount 
of such wages to be excluded. If you 
claim an exclusion of any sick pay, at- 
tach a statement showing your compu- 
tation, and indicating the period or 
periods of absence, nature of sickness or 
injury, and whether hospitalized. Or, 
in lieu of a statement you may use Form 
2440 which may be obtained from any 
Internal Revenue Service office. 

LINE 8— BUSINESS OR PROFESSION 

General. — The law taxes the profits 
from a business or profession — not its to- 
tal receipts. Therefore, separate Sched- 
ule C (Form 1040), which contains fur- 
ther instructions, is provided to help you 
figure your profit or loss from business. 

If some of your expenses are part 
business and part personal, you can de- 
duct the business portion but not the 
personal portion. For instance, a doctor 
who uses his car half for business can 
deduct only half the operating expenses. 

Everyone engaged in a trade or busi- 
ness and making payments to another 
person of salaries, wages, commissions, 
interest, rent, etc., of $600 or more in 
the course of such trade or business 
during his taxable year must file infor- 
mation returns. Forms 1096 and 1099, 
to report such payments. If a portion 
of such salary or wage payments was 
reported on a Withholding Statement 
(Form W-2), only the remainder must 
be reported on Form 1099. 

Accounting Methods and Records.— Your 

return must be on the "cash method" 
unless you keep books of account. "Cash 
method" means that all items of taxabl 
income actually or constructively re- 
ceived during the year (whether in cash 
or in property or services) and only 
those amounts actually paid during the 
year for deductible expenses are shown, 
income is "constructively" received 
when it is credited to your account or 
set aside for you and may be drawn 
upon by you at any time. Uncashed 
salaiy or dividend checks, bank interest 
credited to your account, matured bond 
coupons, and similar items which you 
can turn into cash immediately are 
"constructively received" even though 
you have not actually converted them 
into cash. 

An "accrual method" means that you 
report income when earned, even if not 
received, and deduct expenses when 
incurred, even if not paid within the 
taxable period. 

The method used in keeping your 
records may be the cash metliod, or an 
accrual method, so long as income is 



clearly reflected. However, in most 
cases you must secure consent of the 
Commissioner of Internal Revenue, 
Washington 25, D. C, before changing 
your accounting method. 

Net Operating Loss. — If, in 1958, your 

business or profession lost money instead 
of making a profit, or if you had a cas- 
ualty loss, or a loss from the sale or other 
disposition of depreciable property (or 
real property) used in your trade or 
business, you can apply these losses 
against your other 1958 income. If 
these losses exceed your other income, 
tlie excess of this "net operating loss" 
must be carried back three years to off- 
set your income for 1955 first, and then 
1956 and 1957, and any remaining 
excess may be carried forward against 
your income for the years 1 959 through 
1963. If a carryback entitles you to a 
refund of prior year taxes, ask the Dis- 
trict Director for Form 1045 to claim a 
quick refund. For further information, 
see section 172 of the Internal Revenue 
Code of 1954 and section 122 of the 
1939 Code. 

If you had a loss in preceding years 
which may be carried over to 1958, you 
should apply the net operating loss de- 
duction as an adjustment of the amount 
entered on Hne 11, and attach a state- 
ment showing this computation. 

LINE 9— FARMING 

For the assistance of farmers, a sepa- 
rate Schedule F (Form 1040) is provided 
to report farm income for income and 
self-employment tax purposes.^ Addi- 
tional instructions for farmers have 
been provided for use with Schedule F 
which may be obtained from any Inter- 
nal Revenue Service office. 

SPECIAL COMPUTATIONS 
Unmarried Head of Household.— The law 

provides a special tax rate for any indi- 
vidual who qualifies as a "Head of 
Household." Only the following per- 
sons may qualify: (a) one who is un- 
married (or legally separated) at the 
end of the taxable year, or (b) one who 
is married at the end of the year to an 
individual who was a nonresident alien 
at any time during the taxable year. 
In addition, you must have furnished 
over half of the cost of maintaining as 
your home a household which dining 
the entire year, except for temporary 
absence, was occupied as the principal 
place of abode and as a member of such 
household by ( 1 ) any related person 
(see those listed under requirement 5 at 
the top of page 5 of these instructions) 
for whom you are entitled to a deduc- 
tion for an exemption, unless the de- 
duction arises from a multiple support 
agreement, (2) your unmarried child, 

too— IC— 745fiS-l 



98 
8 



FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 1 OF FORM 1040— Continued 



grandchild, or stepchild, even though 
such child is not a dependent or (3) 
your married child, grandchild, or step- 
child for whom you are entitled to a 
deduction for an exemption. 

If you qualify under (a) or (b) 
above, you are entitled to the special 
tax rate if you pay more than half the 
cost of maintaining a household (not 
necessarily your home) which is the 
principal place of abode of your father 
or mother and who qualifies as your 
dependent. 

The cost of maintaining a house- 
hold includes such items as rent, prop- 
erty insurance, property taxes, mort- 
gage interest, repairs, utilities (gas, 
telephone, etc.) and cost of food. Such 
expenses do not include the cost of 
clothing, education, medical treatment, 
vacations, life insurance, and transpor- 
tation. Do not include the value of per- 
sonal services performed by you or by 
the person qualifying you as Head of 
Household. The above expenditures 
are to be considered only for determin- 
ing whether you are entitled to the use 
of.the head of household tax rate. Do 
not claim them as deductions on your 
return unless they are otherwise allow- 
able. 

The rates for Head of Household are 
found in tax rate schedule HI on page 
15 of these instructions. 

Widows and Widowers. — Under certain 
conditions a taxpayer whose husband 
(or wife) has died during either of her 
two preceding taxable years may com- 
pute her tax by including only her in- 
come, exemptions, and deductions, but 
otherwise computing the tax as if a joint 
return had been filed. However, the 
exemption for the decedent may be 
claimed only for the year of death. 

The conditions are that the taxpayer 
(a) must not have remarried, (b) must 
maintain as her home a household 
which is the principal place of abode of 
her child or stepchild for whom she is 
entitled to a deduction for an exemp- 
tion, and (c) must have been entitled 
to file a joint return with her husband 
(or wife) for the year of death. 



USE OF TAX TABLE ON PAGE 16 OF 
THESE INSTRUCTIONS 

Purpose of Table. — ^The table is a short- 
cut method of finding your income tax 
if your adjusted gross income, line 11, 
page 1, of your return is less than $5,000. 
It is provided by law and saves you the 
trouble of itemizing deductions and 
computing your tax on page 2 of the 
return. The table allows for an exemp- 
tion of $600 for each person claimed as 
an exemption, and charitable contribu- 
tions, interest, taxes, etc., appro.ximat- 
ing 10 percent of your income. 

How To Find Your Tax.— Read down 

the income columns until you find the 
line that fits the income you reported on 
line 1 1 , page 1 . Then read across that 
line until you come to the exemption 
column which is headed by a number 
corresponding to the number of exemp- 
tions you claimed on line 4 on page 1. 
The figure you find there is your tax. 

LINE 13(a) — See page 14 of these instructions. 
LINE 13(b) — See page 14 of these instructions. 

LINE 15— SELF-EMPLOYMENT TAX 

Every self-employed individual must 
file an annual return of his self-employ- 
ment income on Form 1040 if he has at 
least $400 of net earnings from self- 
employment in his taxable year, even 
though he may not have sufficient in- 
come to require the filing of an income 
tax return or is already receiving social 
security benefits. 

Generally, if you carry on a business 
as a sole proprietor, or if you render 
service as an independent contractor, or 
as a member of a partnership or similar 
organization, you will have self-employ- 
ment income. 

If your income is derived solely from 
salary or wages, or from dividends or 
interest on investments, capital gains, 
annuities, or pensions, you will have no 
self-employment income and no self- 
employment tax to pay. 

The computation of self-employment 
tax is made on separate Schedule C or 



separate Schedule F, which with at- 
tached Schedule SE should be filed 
with your individual income tax return. 
The self-employment tax is a part of 
the total tax to be paid with your income 
tax return. Enter on line 15 the amount 
of your self-employment tax shown on 
line 34, separate Schedule C, or line 18, 
separate Schedule F. 

Any declaration of estimated income 
tax required to be filed may include esti- 
mated tax on self -employment income. 

If a citizen living abroad is self- 
employed, he should consult the perti- 
nent sections of I. R. S. Pub. 54. 

LINE 17(a)— CREDIT FOR TAX WITHHELD 

Enter the total amount of income tax 
withheld, credit for excess F. I. C. A. 
tax, and credit for taxes paid by regu- 
lated investment companies as shown on 
fine 5, column (b). Also see explana- 
tion for line 5 on pages 5 and 6 of these 
instructions relating to these credits. 

LINE 17(b)— CREDIT FOR ESTIMATED 
TAX PAYMENTS 

If you paid any estimated tax on a 
Declaration of Estimated Income Tax 
(Form 1040-ES) for 1958, report the 
total of such payments on line 17(b). 
If on your 1957 return you had an 
overpayment which you chose to apply 
as a credit on your 1958 ta.x, include 
the credit in this total. 

See page 14 of these instructions for 
filing requirements for 1959 declaration 
of estimated income tax. 

LINES 18 AND 19— BALANCE OF TAX DUE 
OR REFUND OF OVERPAYMENT 

Show on line 18 any balance you 
owe, or on line 19 the amount of any 
overpayment due you, after taking 
credit for the amounts entered on line 
17. 

In order to facilitate the processing 
of collections and refunds, balances due 
of less than $1.00 need not be paid, and 
overpayments of less than $1.00 will be 
refunded only upon separate application 
to your District Director. 



INSTRUCTIONS FOR PAGE 2 OF FORM 1040 

Itemized Deductions— If you do not use Tax Table or Standard Deduction. 



CONTRIBUTIONS 



If you itemize deductions, you can 
deduct gifts to religious, charitable, 
educational, scientific, or literary organ- 
izations, and organizations for the 



prevention of cruelty to children and 
animals, unless the organization is op- 
erated for personal profit, or conducts 
propaganda or otherwise attempts to 
influence legislation. You can deduct 
gifts to fraternal organizations if they 



are to be used for charitable, religious, 
etc., purposes. You can also deduct 
gifts to veterans' organizations, or to a 
governmental agency which will use the 
gifts for public purposes. A contribu- 
tion may be made in money or property 



o59— 16— 74568-1 



FACSIMILES OF TAX RETURNS, 1958 99 

INSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 9 



(not services). If in property, it is 
generally measured by the fair market 
value of the property at the time of 
contribution. 

For the contribution to be deductible, 
the recipient of the contribution must 
have been organized or created in the 
United States or its possessions, or under 
our law. The law does not allow deduc- 
tions for gifts to individuals, or to other 
types of organizations, however worthy. 
In general, the deduction for contri- 
butions may not exceed 20 percent of 
your adjusted gross income (line 11, 
page 1 ) . However, you may increase 
this limitation to 30 percent if the extra 
10 percent consists of contributions 
made to churches, a convention or as- 
sociation of churches, tax-exempt edu- 
cational institutions, tax-exempt hos- 
pitals, or certain medical research 
organizations. 

If all your contributions were to these 
churches, schools, hospitals, or medical 
research organizations, you can deduct 
the contributions made but not more 
than 30 percent of your adjusted gross 
income. To compute the deduction for 
contributions you should first figure the 
contributions to these special institutions 
to the extent of 10 percent of your ad- 
justed gross income and the amount in 
excess of 10 percent should be added to 
the other contributions to which the 20 
percent limitation applies. Attach a 
schedule showing this computation. 

While you can deduct gifts to the 
kind of organizations listed below, you 
cannot deduct dues or other payments 
to them, for which you receive personal 
benefits. For example, you can deduct 
gifts to a YMCA but not dues. 

Some examples of the treatment of 
contributions are: 
You CAN Deduct Gifts To: 
Churches, including assessments 
Salvation Army 
Red Cross, community chests 
Nonprofit schools and hospitals 
Veterans' organizations 
Boy Scouts, Girl Scouts, and other similar 

organizations 
Nonprofit organizations primarily engaged 
in conducting research or education for 
the alleviation and cure of diseases such 
as tuberculosis, cancer, multiple sclerosis, 
muscular dystrophy, cerebral palsy, polio- 
myelitis, diabetes, and diseases of the 
heart, etc. 

You CANNOT Deduct Gifts To: 
Relatives, friends, other individuals 
Political organizations or candidates 
Social clubs 
Labor unions 
Chambers of commerce 
Propaganda organizations 

INTEREST 

If you itemize deductions, you can 
deduct interest you paid on your per- 



sonal debts, such as bank loans or home 
mortgages. Interest paid on business 
debts should be reported in separate 
Schedules C or F or Schedule G, page 3, 
of Form 1040. Do not deduct interest 
paid on money borrowed to buy tax- 
exempt securities or single-premium life 
insurance. Interest paid on behalf pf 
another person is not deductible unless 
you were legally liable to pay it. In fig- 
uring the interest paid on a mortgage 
on your home or on an installment con- 
tract for goods for your personal use, 
eliminate such items as carrying charges 
and insurance, which are not deducti- 
ble, and taxes which may be deductible 
but which should be itemized separately. 
The law allows a deduction for inter- 
est paid for purchasing personal prop- 
erty (such as automobiles, radios, etc.) 
on die installment plan where the in- 
terest charges are not separately stated 
from other carrying charges. This de- 
duction is equal to 6 percent of the 
average unpaid monthly balance under 
the contract. Compute the average un- 
paid monthly balance by adding up the . 
unpaid balance at the beginning of 
each month during the year and divid- 
ing by 12. The unpaid balance at the 
beginning of each month is determined 
by taking into account the amounts re- 
quired to be paid under the contract 
whether or not such amounts are ac- 
tually paid. The interest deduction 
may not exceed the portion of the total 
carr^'ing charges attributable to the 
taxable year. 

You CAN Deduct Interest On: 

Your personal note to a bank or an individual 

A mortgage on your home 

A life insurance loan, if you pay the interest 

in cash 
Delinquent taxes 

You CANNOT Deduct Interest On: 

Indebtedness of another person, when you arc 
not legally liable for payment of the interest 

A gambling debt or other nonenforccable ob- 
ligation 

A life insurance loan, if interest is added to 
the loan and you report on the cash basis 

TAXES 

If you itemize deductions, you can 
deduct most non-Federal taxes paid by 
you. You can deduct, State or local 
retail sales taxes if under the laws of 
your State they are imposed directly 
upon the consumer, or if they are im- 
posed on the retailer (or wholesaler in 
case of gasoline taxes) and the amount 
of the tax is separately stated by the 
retailer to the consumer. In general, 
you cannot deduct taxes assessed for 
pavements or other local improvements, 
including front-foot benefits, which tend 
to increase the value of your property. 
Consult your Internal Revenue Service 
office for circumstances under which 



local improvement taxes may be de- 
ducted. If you paid foreign income 
taxes, you may be entitled to a credit 
against your tax rather than a deduc- 
tion from income. Form 1116 should 
be used to claim this credit. 

Do not deduct on page 2 any non- 
business Federal taxes, or any taxes paid 
in connection with a business or profes- 
sion which are deductible in Schedule G 
or separate Schedule C or F. 
You CAN Deduct: 
Personal property taxes 
Real estate taxes 
State income taxes 
State or local retail sales taxes 
Auto license fees 
State capitation or poll taxes 
State gasoline taxes 
You CANNOT Deduct: 
Any Federal excise taxes on your personal 
expenditures, such as taxes on theater ad- 
missions, furs, jevk'clr>', cosmetics, trans- 
portation, telephone, etc. 
Federal social security taxes 
Hunting licenses, dog licenses 
Auto inspection fees 
Water taxes 
Taxes paid by you for another person 

MEDICAL AND DENTAL EXPENSES 

If you itemize deductions, you can de- 
duct, within the limits described below, 
the amount you paid during the year 
(not compensated by hospital, health or 
accident insurance) for medical or den- 
tal expenses for yourself, your wife, or 
any dependent who received over half 
of his support from you. List name and 
amount paid to each person. If you 
pay medical expenses for a dependent 
who gets over half of his support from 
you, you can deduct the payments even 
though you are not entitled to an exemp- 
tion for that dependent because he had 
$600 or more gross income. 

You can deduct amounts paid for the 
prevention, cure, correction, or treat- 
ment of a physical or mental defect or 
illness. If you pay someone to perform 
both nursing and domestic duties, you 
can deduct only that part of the cost 
which is for nursing. 

You can deduct the cost of transpor- 
tation primarily for and essential to 
medical care, but you cannot deduct 
any other travel expense even if it bene- 
fits your health. Meals and lodging 
while away from home receiving medi- 
cal treatment may not be treated as 
medical expense unless they are part of 
a hospital bill or are included in the cost 
of care in a similar institution. 

Figuring the Deduction. — You can de- 
duct only those medical and dental ex- 
penses which exceed 3 percent of your 
adjusted gross income. However, in 
figuring these expenses, the amount paid 
for medicine and drugs may be taken 

CS''— 18— 7155S-1 



100 
10 



FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 



into account only to the extent it ex- 
ceeds 1 percent of your adjusted gross 
income. There is a schedule provided 
on page 2 to make this computation. 

Any expense (other than medical) 
claimed as a deduction for the care of 
children and certain other dependents 
should not be included in your medical 
expense deduction. 

Limitations. — The deduction may not 
exceed $2,500 multiplied by the num- 
ber of exemptions other than the exemp- 
tions for age and blindness. In addi- 
tion, there is a maximum limitation as 
follows : 

(a) $5,000 if the taxpayer is single 
and not a head of household or a widow 
or widower entitled to the special tax 
rates ; 

(b) $5,000 if the taxpayer is married 
but files a separate return; or 

(c) $10,000 if the taxpayer files a 
joint return, or is a head of household 
or a widow or widower entitled to the 
special tax rates. 

Subject to the Foregoing Limitations, You 
CAN Deduct as Medical Expenses Pay- 
ments To or For : 

Physicians, dentists, nurses, and hospitals 

Drugs or medicines 

Transportation necessary to get medical care 

Eyeglasses, artificial teeth, medical or surgi- 
cal appliances, braces, etc. 

X-ray examinations or treatment 

Premiums on hospital or medical insurance 

You CANNOT Deduct Payments For: 
Funeral expenses and cemetery plot 
Illegal operations or drugs 
Travel ordered or suggested by your doctor 

for rest or change 
Premiums on life insurance 

Special Rules for Persons 65 or Over. — 

(a) If not disabled. — If either you 
or your wife were 65 or over during 
the taxable year, the maximum limita- 
tion for amounts spent is the same as 
set out above. However, amounts de- 
ductible for medical and dental ex- 
penses for you and your wife, if either 
was 65 or over, are not restricted to the 
excess over 3 percent of your adjusted 
gross income. In effect, the 3 percent 
rule may be disregarded. But the 
amounts spent by you for medicine and 
drugs for yourself, your wife, and your 
dependents are still limited to the excess 
over 1 percent of your adjusted gross 
income, and amounts spent by you for 
your dependents' medical expenses are 
deductible only to the extent they exceed 
3 percent of your adjusted gross income. 

(b) // disabled.— If either you or 
your wife are disabled and 65 or over, 
you may qualify for an increased maxi- 
mum limitation. For this purpose dis- 
abled means that an individual is unable 
to engage in any substantial gainful ac- 



tivity by reason of any medically deter- 
minable physical or mental impairment 
which can be expected to result in death 
or to be of long-continued and indefinite 
duration. Consult the nearest Internal 
Revenue Service office for further in- 
formation. 

OTHER DEDUCTIONS 

Expenses for the Care of Children and Cer- 
tain Other Dependents. — There is allowed 
a deduction not to exceed a total of 
$600 for expenses paid by a woman or 
a widower (including men who are di- 
vorced or legally separated under a 
decree and who have not remarried) 
for the care of one or more dependents 
if such care is to enable the taxpayer to 
be gainfully employed or actively to seek 
gainful employment. For this purpose, 
the term "dependent" does not include 
the husband (wife) of the taxpayer and 
is limited to the following persons for 
whom the taxpayer is entitled to a de- 
duction for an exemption: 

(a) under 12 years of age; or 

(b) physically or mentally incapable 
of caring for themselves. 

Do not deduct any child care pay- 
ments to a person for whom you claim 
an exemption. 

In the case of a woman who is mar- 
ried, the deduction is allowed only (a) if 
she files a joint return with her husband ; 
,and {b) the deduction is reduced by the 
amount (if any) by which their com- 
bined adjusted gross income exceeds 
$4,500. If the husband is incapable of 
self-support because he is mentally or 
physically defective, these two limita- 
tions do not apply. 

If the person who receives the pay- 
ment performs duties not related to de- 
pendent care, only that part of the pay- 
ment which is for the dependent's care 
may be deducted. 

If you claim this deduction, attach a 
detailed statement showing the amount 
expended and the person or persons to 
whom it was paid. If you wish, you may 
obtain Form 2441 from any Internal 
Revenue Service office for this purpose. 

Casualty and Losses Thefts.— If you item- 
ize deductions, you can deduct your net 
loss resulting from the destruction of 
your property in a fire, storm, automo- 
bile accident, shipwreck, or other losses 
caused by natural forces. Damage to 
your car by collision or accident can be 
deducted if due merely to faulty driving 
but cannot be deducted if due to your 
willful act or willful negligence. You 
can also deduct in the year of discovery 
losses due to theft, but not losses due to 
mislaying or losing articles. 



The amount of loss to be deducted is 
measured by the fair market value of 
the property just before the casualty less 
its fair market value immediately after 
the casualty (but not more than the cost 
or other adjusted basis of the property), 
reduced by any insurance or compensa- 
tion received. Explain in an attached 
statement. 

If your 1958 casualty losses exceed 
your 1958 income, the excess must be 
treated in the same manner as a net 
operating loss described on page 7. 
You CAN Deduct Losses On : 
Property such as your home, clothing, or 

automobile destroyed or damaged by fire 
Property, including cash, which is stolen 

from you 
Loss or damage of property by flood, light- 
ning, storm, explosion, or freezing 
You CANNOT Deduct Losses On : 
Personal injury to yourself or another person 
Accidental loss by you of cash or other per- 
sonal property 
Property lost in storage or in transit 
Damage by rust or gradual erosion 
.Animals or plants damaged or destroyed by 
disease 

Expenses for Education. — Expenses for 

education may be deducted if the edu- 
cation was undertaken primarily for 
the purpose of: 

(a) Maintaining or improving skills 
required in your employment or other 
trade or business, or 

(b) Meeting the express require- 
ments of your employer, or the require- 
ments of applicable law or regulations, 
imposed as a condition to the retention 
of your salary, status, or employment, 
but only if the expenses are to 
meet the minimum education required. 

Expenses incurred for the purpose of 
obtaining a new position, a substantial 
advancement in position, or for per- 
sonal purposes are not deductible. The 
expenses incurred in preparing for a 
trade or business or a specialty are per- 
sonal expenses and are not deductible. 

The rules for reporting deductible 
education expenses are the same as 
those shown on page 6 for the reporting 
of "Employee Business Expenses." If 
you are required therein to attach a 
statement to your return explaining the 
nature of the expenses, also include a 
description of the relationship of the 
education to your employment or trade 
or business. If the education was re- 
quired by your employer, a statement 
to that effect from him would be 
helpful. 

Miscellaneous. — If you itemize deduc- 
tions, you can deduct several other types 
of expenses under "Other Deductions." 

If you work for wages or a salary, you 
can deduct your ordinary and necessary 
employee business expenses which have 
not been claimed on page 1 . 

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FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 



101 

11 



You CAN Deduct Cost Of: 

Safety equipment 

Dues to union" fir professional societies 

Entertaining customers 

Tools and supplies 

Fees to employment agencies 

You CANNOT Deduct Cost Of: 
Travel to and from work 
Entertaining friends 
Bribes and illegal payments 

You can deduct all ordinary and nec- 
essary expenses connected with the pro- 
duction or collection of income, or for 
the management or protection of prop- 
erty held for the production of income. 



If you are divorced or legally sepa- 
rated and are making periodic payments 
of alimony or separate maintenance un- 
der a court decree, you can deduct these 
amounts. Periodic payments made 
under either (a) a written separation 
agreement entered into after August 16, 
1954, or (b) a decree for support en- 
tered after March 1, 1954, are also de- 
ductible. Such payments must be in- 
cluded in the wife's income. You can- 
not deduct any voluntary payments not 
under a court order or a written sepa- 
ration agreement, lump-sum settle- 



ments, or specific maintenance pay- 
ments for support of minor children. 

You may deduct gambling losses to 
the extent of gambling winnings only if 
you itemize deductions. 

If you are a tenant-stockholder in a 
cooperative housing corporation, you 
can deduct your share of its payments 
for interest and real-estate taxes. 

Computation of Tax. — For determina- 
tion of tax, other than from the Tax 
Table, see page 15. 



INSTRUCTIONS FOR PAGE 3 OF FORM 1040 



SCHEDULE A— DIVIDENDS 

If you own stock, the payments you 
receive out of the company's earnings 
and profits are dividends and must be 
reported in your tax return. Usually 
dividends are paid in cash, but if paid 
in merchandise or other property, they 
are taxable at their fair market value. 

If a distribution is not paid from 
earnings and profits, it is not taxable as 
a dividend, but is treated as reduction 
of the cost or other basis of your stock. 
It is not taxable untU it exceeds your 
cost or other basis, after which you must 
generally include it as a gain from the 
sale or exchange of property, for which 
special tax treatment is provided. 

In some cases a corporation distrib- 
utes both a dividend and a repayment 
of capital at the same time; the check 
or notice will usually show them sep- 
arately. In any case, you must report 
the dividend portion as income. 

There are special rules applicable to 
stock dividends, partial liquidations, 
stock rights, and redemptions ; call your 
Internal Revenue Service office for more 
complete information. 

You may exclude from your income 
$50 of dividends received from quali- 
fying domestic corporations. 

If a joint return is filed and both hus- 
band and wife have dividend income, 
each one may exclude $50 of dividends 
received from qualifying corporations, 
but one may not use any portion of the 
$50 exclusion not used by the other. 
For example, if the husband had $200 
in dividends, and the wife had $20, only 
$70 may be excluded on a joint return. 

Use Schedule A to list your dividends 
including dividends you receive as a 
member of a partnership or as a bene- 
ficiary of an estate or trust, and to show 
the amount of the exclusion to which 
you are entitled. Dividends from 
mutual insurance companies which are 
a reduction of premiums are not to be 
included. So-called "dividends" from 



the following corporations are con- 
sidered interest and should be reported 
as interest in Schedule B: 

Mutual savings banks, cooperative 
banks, domestic building and loan as- 
sociations, domestic savings and loan 
associations, and Federal savings and 
loan associations, on deposits or 
withdrawable accounts; and Federal 
credit unions. 

Taxable dividends from the following 
nonqualifying corporations should be 
reported on line 5 of Schedule A: 

(a) life insurance companies, and 
mutual insurance companies (other 
than mutual marine or mutual fire in- 
surance companies issuing perpetual 
policies) . 

(b) China Trade Act corporations. 

(c) so-called exempt organizations 
(charitable, fraternal, etc.) and exempt 
farmers' cooperative organizations. 

(d) regulated investment companies 
except to the extent designated by the 
company to be taken into account as a 
dividend for these purposes. 

(e) corporations deriving 80 percent 
or more of their income from U. S. pos- 
sessions and 50 percent or more of their 
income from the active conduct of a 
business therein. 

(f) corporations which are not 
domestic corporations. 

See page 14 for the credit for divi- 
dends received. 
SCHEDULE B— INTEREST 

You must include in your return any 
interest you receive or which is credited 
to your account (whether entered in 
your pass-book or not) and can. be with- 
drawn by you. All interest on bonds, 
debentures, notes, savings accounts, or 
loans is taxable, except for certain gov- 
ernmental issues. Examples of interest 
which is fully exempt from tax are (a) 
interest from State and municipal bonds 
and securities and (b) interest on any 
$5,000 principal value of Treasury 
bonds issued before March 1, 1941. 



If you own United States Savings or 
War bonds (Series A to F, inclusive), 
the gradual increase in value of each 
bond (as shown in the table on its back) 
is considered interest, but you need not 
report it in your tax return until you 
cash the bond or until the year of final 
maturity whichever is earlier. How- 
ever, if you report income on the cash 
method, you may at any time elect to 
report each year the annual increase in 
value, but if you do so you must report 
in the first year the entire increase to 
date and must continue to report the 
annual increase each year. 

SCHEDULE D— SALE AND EXCHANGE 
OF PROPERTY 

If you sell your house, car, furniture, 
securities, real estate, or any other kind 
of property, you must report any profit 
from the sale on your tax return. Gen- 
erally, such profits are capital gains if 
the property was not held for sale to 
customers in the ordinary course of bus- 
iness. Separate Schedule D (Form 
1040) is provided to compute capital 
gains and losses, and the results from 
other transactions /in property. 

Nonbusiness Bad Debts. — If you fail to 
collect a personal loan, you can list the 
bad debt as a "short-term capital loss" 
provided the loan was made with a true 
expectation of collecting. So-called 
loans to close relatives, which are really 
in the nature of gifts, must not be listed 
as deductible losses. 

Sale of Homes, etc. — General Rule.— The 

law requires you to report any gains 
from the sale or exchange of your resi- 
dence or other nonbusiness property, 
but does not allow you to claim any loss 
from the sale of a home or other asset 
which was not held for the purpose of 
producing income. Your gain from the 
sale of this kind of property is the dif- 
ference between ( 1 ) the sales price and 
(2) your original cost plus the cost of 
permanent improvements. If deprecia- 



c59— 16— 7J558-1 



102 
12 



FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 3 OF FORM 1040— Continued 



tion was allowed or allowable during 
any period because you rented the house 
or used part of it for business puiposes, 
the original cost must be reduced by the 
amount of depreciation which was al- 
lowed or allowable. 

Special Rule.— Deferring Gain When Buy- 
ing New Residence. — If you sold or ex- 
changed your principal residence dur- 
ing 1958 at a gain and within one year 
after (or before) the sale you purchase 
another residence, and use it as your 
principal residence, none of the gain 
is taxable if the cost of the new resi- 
dence equals or exceeds the adjusted 
sales price of the old residence. See, 
however, instructions below for infor- 
mation to be furnished. If instead of 
purchasing another residence, you begin 
construction of a new residence ^cither 
one year before or within one year after 
the sale of your old residence) and 
use it as your principal residence not 
later than 18 months after the sale, none 
of the gain upon the sale is taxable if 
your costs attributable to construction 
during, plus the cost of land acquired 
within, the period beginning one year 
before the sale and ending 18 months 
after the sale equals or exceeds the ad- 
justed sales price of the old residence. 
If the adjusted sales price of your old 
residence exceeds the cost of your new 
residence, the gain on the sale is tax- 
able to the extent of such excess. 

The adjusted sale price is the gross 
selling price less commissions, selling ex- 
penses, and the expenses for work per- 
formed on the residence in order to assist 
in its sale, such as redecorating expenses. 
Redecorating expenses must be for work 
performed during the 90-day period 
ending on the day on which a contract 
to sell is entered into, and must be paid 
wdthin 30 days after date of sale. 

If you sold or exchanged your resi- 
dence at a gain, report the details of the 
sale in separate Schedule D. If you do 
not intend to replace, or if the period 
for replacement has passed, report the 
details in the year of sale. If you have 
acquired your new residence and used 
it as your principal residence, enter in 
column (h) only the amount of taxable 
gain, if any, and attach statement show- 
ing the purchase price, date of purchase, 
and date of occupancy. 

If you have decided to replace, but 
have not done so, or if you are unde- 
cided, you should enter "None" in col- 
umn (h). When you do replace with- 
in the required period, you must advise 
the District Director, giving full details. 
When you decide not to replace, or the 
period has passed, you must file an 
amended return, if you previously filed a 



return. Since any additional tax due 
will bear interest from the due date of 
the original return until paid, it is ad- 
visable to file the amended return for 
the year of sale as promptly as possible. 
Form 2119 is available at any Internal 
Revenue Service office for reporting this 
transaction. 

SCHEDULE E-PENSIONS AND ANNUITIES 

Noncontributory Annuities. — The full 

amount of an annuity or a pension of 
a retired employee, where the employee 
did not contribute to the cost and was 
not taxable on his employer's contribu- 
tions, must be included in his gross 
income. The total of the payments 
received during his taxable year should 
be shown on line 6, part I of Schedule E. 
However, if there is a death-benefit 
exclusion, this rule does not apply; con- 
sult the Internal Revenue Service. 

Other Annuities. — Amounts received 
from other annuities, pensions, endow- 
ments, or life insurance contracts for a 
reason other than the death of the 
insured, whether paid for a fixed num- 
ber of years or for life, may have a 
portion of the payment excluded from 
gross income. The following types are 
included under this rule: (a) pensions 
where the employee has either con- 
tributed to its cost or has been taxed 
on his employer's contributions, and (b) 
amounts paid fef a reason other than 
the death of the insured under an an- 
nuity, endowment, or life insurance 
contract. 

Schedule E is provided for reporting 
the taxable portion of the annuity. If 
you are receiving payments on more 
than one pension or annuity, fill out a 
separate schedule for each one. 

Special Rule for Certain Types of Em- 
ployees' Annuities. — There is a special rule 
provided for amounts received as em- 
ployees' annuities where part of the cost 
is contributed by the employer and the 
amount contributed by the employee 
will be returned within 3 years from the 
date of the first payment received under 
the contract. If both of these condi- 
tions are met, then all the payments re- 
ceived under the contract during the 
first three years are to be excluded from 
gross income until the employee recov- 
ers his cost (the amount contributed by 
him plus the contributions made by the 
employer on which the employee was 
previously taxable); thereafter all 
amounts received are fully taxable, 
This method of computing taxable in- 
come also applies to employee's bene- 
ficiary if employee died before receiving 
any annuity or pension payments. 

Example: An employee receives .$200 



a month under an annuity. While he 
worked, he contributed $4,925 toward 
the cost of the annuity. His employer 
also made contributions toward the cost 
of the annuity for which the employee 
was not taxable. The retired employee 
would be paid $7,200 during his first 
3 years, which amount exceeds his con- 
tribution of $4,925. Therefore, he 
excludes from gross income all the pay- 
ments received from the annuity until 
he has received $4,925. All payments 
received thereafter are fully taxable. 

General Rule for Annuities. — Generally, 

amounts received from annuities and 
pensions are included in income in an 
amount which is figured upon your life 
expectancy. This computation and 
your life expectancy multiple can be 
found in the regulations covering an- 
nuities and pensions which may be ob- 
tained at any Internal Revenue Seiv- 
ice oflSce. Once you have obtained 
the multiple it remains unchanged and 
it will not be necessary to recompute 
your taxable portion each year unless 
the payments you receive change in 
amount. In making this computation 
you can get help from the Interna! 
Revenue Service as well as from some 
employers and insurance companies. 

Amounts Received Under Life- Insurance 
Policies by Reason of Death.— Generally, a 

lump sum payable at the death of the 
insured under a life insurance policy is 
excludable from the gross income of the 
recipient. For more detailed informa- 
tion, call or visit your Internal Revenue 
Service office. 

SCHEDULE G— RENTS AND ROYALTIES 

If you are not engaged in selling real 
estate to customers, but receive rent 
from property owned or controlled by 
you, or royaldes from copyrights, min- 
eral leases, and similar rights, report the 
total amount received in Schedule G. 
If property other than cash was re- 
ceived as rent, its fair market value 
should be reported. 

You are entitled to various deductions 
which are indicated in Schedule G. In 
the case of buildings you can deduct 
depreciation, as explained on page 13. 

You can also deduct all ordinary and 
necessary expenditures on the property 
such as taxes, interest, repairs, insurance, 
agent's commissions, maintenance, and 
similar items. However, you cannot 
deduct capital investments or improve- 
ments but must add them to the basis 
of the property for the purpose of de- 
preciation. For i^.xample, a landlord 
can deduct the cost of minor repairs but 
net the cost of major improvements such 
as a new roof or remodeling. 

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FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 3 OF FORM 1040— Continued 



103 
13 



Expenses, depreciation, and depletion 
should be listed in total in the columns 
provided in Schedule G. 

If You Rent Part of Your House— 

If you rent out only part of your prop- 
erty, you can deduct only that portion 
of your expenses which relates to the 
rented portion. If you cannot deter- 
mine these expenses exactly, you may 
figure them on a proportionate basis. 
For example, if you rent out half of 
your home, and live in the other half, 
you can deduct only half of the depre- 
ciation and other expenses. 

Room rent and other space rentals 
should be reported as business income 
in separate Schedule C if services are 
rendered to the occupant; otherwise, 
report such income in Schedule G. If 
you are engaged in the business of sell- 
ing real estate, you should report rentals 
received in separate Schedule C. 

SCHEDULE H— OTHER INCOIVIE 

Partnerships. — A partnership does not 
pay income tax unless it elects to be 
taxed on the same basis as a domestic 
corporation. It does, however, file an 
information return on Form 1065. Only 
one Form 1065 need be filed for each 
partnership. Each partner must report 
in his personal tax return his share of 
his partnership's taxable income and 
pay tax on it. 

Include in Schedule H your share of 
the ordinary income (whether actually 
received by you or not) or the net loss 



of a partnership, joint venture, or the 
like, whose taxable year ends within or 
with the year covered by your return. 
Other items of income, deductions, etc., 
to be carried to the appropriate sched- 
ule of your individual return are showTi 
in Schedule K of the partnership return. 
Your share of such income of the fol- 
lowing classes should be entered on the 
appropriate lines on Form 1040: 

Dividends. 

Interest on tax-free covenant bonds. 
Partially tax-exempt interest. 
Gains from the sale or exchange of 
capital assets and other property. 

If the partnership is engaged in a 
trade or business, the individual partner 
may be subject to the self-employment 
tax on his share of the self-employment 
income from the partnership. In such 
a case the partner's share of partnership 
self-employment net earnings (or loss) 
should be entered on line 28(b), page 3, 
separate Schedule C. Members of farm 
partnerships should use Schedule F to 
figure self-employment tax. 

Estates and Trusts.— If you are a bene- 
ficiary of an estate or trust, report in 
your personal tax return your taxable 
portion of its income (whether actually 
received or not) which, for the taxable 
year, is either required to be distributed 
to you or has been paid or credited to 
your account. Your share of such in- 
come of the following classes should be 
entered on the appropriate lines on 
Form 1040: 



Dividends. 

Interest on tax-free covenant bonds. 

Partially tax-exempt interest. 

Gains from the sale or exchange of 
capital assets and other property. 
All other taxable income from estates 
and trusts should be included in Sched- 
ule H of your return. Any deprecia- 
tion (on estate or trust property) which 
is allocable to you may be subtracted 
from estate or trust income so that only 
the net income received will be included 
in your return. Information with re- 
spect to these items may be obtained 
from the fiduciary. 

Small Business Corporations. — If you are 

a shareholder in a. small business cor- 
poration which elects to have its cur- 
rent taxable income taxed to its stock- 
holders, you should report your share of 
both the distributed and undistributed 
current taxable income as ordinary in- 
come in Schedule H except that por- 
tion which is reportable as a long-term 
capital gain in Schedule D. Neither 
type of income is eligible for the divi- 
dend received credit or the exclusion. 
Your share of any net operating loss 
should be treated in the same manner 
as if the loss were from a proprietorship. 
Other Income. — If you cannot find 
any specific place on your return to list 
certain types of income, you should re- 
port such income in Schedule H. This 
is the proper place to report amounts 
received as alimony, support, prizes, and 
recoveries of bad debts and other items, 
which reduced your tax in a prior year. 



INSTRUCTIONS FOR PAGE 4 OF FORM 1040 



SCHEDULE I— DEPRECIATION 

A reasonable allowance for the ex- 
haustion, wear and tear, and obsoles- 
cence of property used in the trade or 
business or of property held by the tax- 
payer for the production of income shall 
be allowed as a depreciation deduction. 
The allowance does not apply to inven- 
tories or stock-in-trade nor to land apart 
from the improvements or physical 
development added to it. 

The cost (or other basis) to be recov- 
ered should be charged off over the 
expected useful life of the property. 
Similar assets may be grouped together 
as one item for reporting purposes in 
the depreciation schedule. For guid- 
ance, comprehensive tables of "average 
useful lives" of various kinds of build- 
ings, machines, and equipment in many 
industries and businesses have been 
published in a booklet called Bulletin F, 
which may be purchased for 30 cents 
from the Superintendent of Documents, 



Government Printing Office, Washing- 
ton 25, D. C. 

Straight Line Method.— To compute, 

add the cost of improvements to the cost 
(or other basis) of the asset and deduct 
both the estimated salvage value and 
the total depreciation allowed or al- 
lowable in past years. Divide the result 
by the number of years of useful life re- 
maining to the asset — the quotient is the 
depreciation deduction. 

Declining Balance Method.— Under this 

method a uniform rate is apphed each 
year to the remaining cost or other basis 
of property (without adjustment for 
salvage value) determined at the be- 
ginning of such year. For property 
acquired before January 1, 1954, or 
used property whenever acquired, the 
rate of depreciation under this method 
may not exceed one and one-half times 
the applicable straight-line rate. 



Special Rules for New Assets Acquired 
After December 31, 1953. — The cost or 

other basis of an asset acquired after 
December 31, 1953, may be depreciated 
under methods proper before that date; 
or, it may be depreciated under any of 
the following -methods provided (1) 
that the asset is tangible, (2) that it has 
an estimated useful life of three years or 
more, and (3) that the original use of 
the asset commenced with the taxpayer 
and commenced after Dec. 31, 1953. 

If an asset is constructed, reconstruct- 
ed, or erected by the taxpayer, so much 
of the basis of the asset as is attributable 
to construction, reconstruction, or erec- 
tion after December 31, 1953, may be 
depreciated under methods proper be- 
fore that date; or, it may be depreciated 
under any of the followjng methods pro- 
vided that the asset meets qualifications 
(1) and (2) above. 

(a) Declining balance method. — This 
method may be used with a rate not in 

e59 — X6— 74558-1 



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FACSIMILES OF TAX RETURNS, 1958 
INSTRUCTIONS FOR PAGE 4 OF FORM 1040— Continued 



excess of twice the applicable straight- 
line rate. 

(b) Sum of the years-digit method. — 
The deduction for each year is com- 
puted by multiplying the cost or other 
basis of the asset (reduced by estimated 
salvage value) by the number of years 
of useful life remaining (including the 
year for which the deduction is com- 
puted) and dividing the product by 
the sum of all the digits corresponding 
to the years of the estimated useful life 
of the asset. In the case of a 5-year life 
this sum would be 15 (5 + 4 + 3 + 2 + 1). 
For the first year five-fifteenths of the 
cost reduced by estimated salvage value 
would be allowable, for the second year 
four-fifteenths, etc. 

(c) Other methods. — A taxpayer may 
use any consistent method which does 
not result in accumulated allowances at 
the end of any year greater than the 
total of the accumulated allowances 
which would have resulted from the use 
of the declining balance method. This 
limitation applies only during the first 
two-thirds of the property's useful life. 

Additional First Year Depreciation For 

Small Business. — Taxpayers (not includ- 
ing trusts) may elect to write off in the 
year of acquisition 20 percent of the cost 
of tangible personal property having an 
aggregate value of not more than 
$10,000 ($20,000 on a joint return) 
acquired by purchase for use in a trade 
or business or to be held for the produc- 
tion of income. The additional depre- 
ciation is limited to property acquired 
after December 31, 1957, with a re- 
maining useful life of 6 years or more 
and which is not acquired from a per- 
son (other than a brother or sister) 
whose relationship to the taxpayer 
would result in the disallowance of 
losses. In regard to the remaining cost 
of the property, depreciation may be 
taken in the same manner as explained 
above beginning with the year of 
acquisition. 
SCHEDULE J— DIVIDENDS RECEIVED 

CREDIT 

The law provides a credit against tax 
for dividends received from qualifying 
domestic corporations. This credit is 
equal to 4 percent of such dividends in 
excess of those which you may exclude 
from your gross income (see page 1 1 of 
this pamphlet). The credit may not 
exceed the lesser of: 

(a) the total income tax reduced by 
the foreign tax credit; or 

(b) 4 percent of the taxable income. 
SCHEDULE K— RETIREMENT INCOME 

CREDIT 

You may qualify for this credit which 
is generally 20 percent of retirement in- 
come if you received earned income in 



excess of $600 in each of any 10 calendar 
years — not necessarily consecutive — be- 
fore the beginning of your taxable year. 

The term "earned income" means 
wages, salaries, or professional fees, and 
other amounts received as compensation 
for personal services actually rendered. 
It does not include any amount received 
as an annuity or pension. If you were 
engaged in a trade or business in which 
both personal services and capital were 
material income-producing factors, a 
reasonable allowance as compensation 
for the personal services rendered by 
you, not in excess of 30% of your share 
of the net profits of such trade or busi- 
ness, shall be considered as earned 
income. 

If you are a surviving widow (wid- 
ower) and. have not remarried, you may 
use the earned income of your deceased 
husband (wife), or you may combine 
such income with your earned income, 
for the purpose of determining whether 
you qualify. If a husband and wife 
both qualify and each has retirement in- 
come, each is entitled to the credit. 

Retirement income for the purpose 
of the credit means — 

(a) In the case of an individual who 
is not 65 years of age before the close 
of his taxable year, only that income 
received from pensions and annuities 
under a public retirement system (one 
established by the Federal Government, 
a State, county, city, etc.) which is 
included in gross income in his return. 

(b) In the case of an individual who 
is 65 years of age or over before the 
close of his taxable year, income from 
pensions, annuities, interest, rents, and 
dividends, which are included in gross 
income in his return. (Gross income 
from rents for this purpose means gross 
receipts from rents without reduction 
for depreciation or any other expenses. 
Royalties are not considered rents for 
this computation.) 

The amount of the retirement income 
used for the credit computation may 
not exceed $1,200 reduced by: 

(a) any amount received and exclud- 
ed from gross income as a pension or 
annuity under the Social Security Act 
and Railroad Retirement Acts and by 
other ta.x-exempt pensions or annuities. 
This reduction does not include ( 1 ) that 
part of a pension or annuity which is ex- 
cluded from gross income because it 
represents, in effect, a return of capital 
or tax-free proceeds of a like nature, or 
(2) amounts excluded from gross in- 
come which are received as compensa- 
tion for injuries or sickness or under 
accident or health plans; and 

(b) in the case of any individual who 



is not 65 before the close of the taxable 
year, any amount of earned income in 
excess of $900 received in the taxable 
year; and in the case of an individual 
who is 65 or over but who is not 72 
before the close of the taxable year, any 
amount of earned income in excess of 
$1,200 received in the ta.xable year 
(neither of these limitations applies to 
an individual who is 72 or over at the 
close of the year) . 

1959 DECLARATIONS OF ESTIMATED TAX 
Who Must File. — For many taxpayers 
the withholding tax on wages is not suf- 
ficient to keep them paid up on their 
income tax. The law requires every 
citizen or resident of the United States 
to file a Declaration of Estimated In- 
come Ta.x, Form 1040-ES, and to make 
quarterly payments in advance of 
filing the annual income ta.x return if: 
(a) his gross income can reasonably 
be expected to consist of wages subject 
to withholding and of not more than 
$100 from other sources, and to exceed — ■ 

( 1 ) $ 1 0,000 for a head of a household 
or a widow or widower entitled to the 
special tax rates; 

(2) $5,000 for other single indi- 
viduals ; 

(3) $5,000 for a married individual 
not entitled to file a joint declaraiion; 

(4) $5,000 for a married individual 
entitled to file a joint declaration, and 
the combined income of both husband 
and wife can reasonably be expected to 
exceed $10,000; OR 

(h) his gross income can reasonably 
be expected to include more than $100 
from sources other than wages subject to 
withholding and to exceed the sum of: 

( 1 ) $600 for each of his exemptions plus 

(2) $400. 

The Internal Revenue Service will 
mail Form 1040-ES, as far as is prac- 
ticable, to each person who may need it. 
Others required to file should obtain the 
form from any Internal Revenue Serv- 
ice office in time to file by April 15, 
1959. Farmers may postpone filing their 
1959 declarations until January 15, 
1960. 

Additional Charge for Underpayment of Esti- 
mated Tax. — It is important that you 
estimate your tax carefully. It will 
avoid the difficulties of paying a large 
balance with your final return. 

Furthermore, there is an additional 
charge imposed by law for underpay- 
ment of any installment of estimated 
tax. Details of this additional charge, 
and exceptions to it, are printed on 
Form 1040-ES and Form 2210. If you 
had an underpayment and believe one 
of the exceptions applies, attach a state- 
ment or Form 2210 to your return. 

o69—ia— 74658-1 



FACSIMILES OF TAX RETURNS, 1958 



105 
15 



TAX COMPUTATION.— Page 2, Form 1040 

If you do not use the Tax Table on page 16, then figure 
your tax on amount on line 5, page 2 of your return, by using 
appropriate tax rate schedule on this page. 

Schedule I applies to (1) single taxpayers who do not 
qualify for the special rates for "Head of Household" or for 
"Widow or Widower," and (2) married taxpayers filing sep- 
arate returns. 

Schedule II applies to married taxpayers filing joint 
returns, and to widows or widowers who qualify for the 
special rates. It provides the split-income benefits. 

Schedule III applies to unmarried (or legally separated) 
taxpayers who qualify as "Head of Household." 

LINE 8(a)— Credit For Foreign Income Taxes 

If you itemize your deductions and claim credit for foreign 
income taxes, you should submit with your return Form 1116 
which contains a schedule for the computation of the credit 
with appropriate instructions. This form may be obtained 
from your Internal Revenue Service office. 

LINE 8(b)— Credit For Partially Tax-Exempt Interest 

If you itemize your deductions, you may deduct on line 
8(b), page 2 of your return, a credit for partially tax-exempt 
interest. This credit is 3 percent of the partially tax-exempt 
interest included in gross income. The credit may not exceed 
the lesser of (a) 3 percent of taxable income (line 5, page 2, 
Form 1040) for taxable year or (b) the amount of tax less the 
credit for income taxes paid to foreign countries and posses- 
sions of U. S. and the credit for di\idends received. 



Schedule I. (A) SINGLE TAXPAYERS who do not qualify for rates in 
Schedules II and III, and (B) married persons filing separate returns 

If the amount on 

line 5, page 2, is: Enter on line 6, page 2: 

Not over $2,000 20% of the amount on line 5. 

Oier— B:,t not ortr— of excess over — 

$2,000 —$4,000 $400, plus 22% —$2,000 

$4,000 — $6,000 $840, plus 26% — $4,000 

$6,000 — $8,000 $1,360, plus 30% — $6,000 

$8,000 —$10,000 $1,960, plus 34% —$8,000 

$10,000 —$12,000 $2,640, plus 38% —$10,000 

$12,000 —$14,000 $3,400, plus 43% —$12,000 

$14,000 —$16,000 $4,260, plus 47% —$14,000 

$16,000 —$18,000 $5,200, plus 50% —$16,000 

$18,000 —$20,000 $6,200, plus 53% —$18,000 

$20,000 —$22,000 $7,260, plus 56% —$20,000 

$22,000 —$26,000 $8,380, plus 59% —$22,000 

$26,000 — $32,000 $10,740, plus 62% — $26,000 

$32,000 —$38,000 $14,460, plus 65% —$32,000 

$38,000 —$44,000 $18,360, plus 69% —$38,000 

$44,000 —$50,000 $22,500, plus 72% —$44,000 

$50,000 —$60,000 $26,820, plus 75% —$50,000 

$60,000 —$70,000 $34,320, plus 78% —$60,000 

$70,000 —$80,000 $42,120, plus 81% —$70,000 

$80,000 —$90,000 $50,220, plus 84% —$80,000 

$90,000 —$100,000 $58,620, plus 87% —$90,000 

$100,000 — $150,000 $67,320, plus 89% — $100,000 

$150,000 — $200,000 $111,820, plus 90% — $150,000 

$200,000 $156,820, plus 91% — $200,000 

Schedule III. Unmarried (or legally separated) taxpayers who qualify 
as HEAD OF HOUSEHOLD. 

// the amount on 

line 5, page 2, is: Enter on line 6, page 2: 

Not over $2,000 20% of the amount on line 5. 

Oifr— Bril not oier — of excel! over— 

$2,000 — $4,000 $400, plus 21% — $2,000 

$4,000 —$6,000 $820, plus 24% —$4,000 

$6,000 — $8,000 $1,300, plus 26% — $6,000 

$8,000 —$10,000 $1,820, plus 30% —$8,000 

$10,000 —$12,000 $2,420, plus 32% —$10,000 

$12,000 —$14,000 $3,060, plus 36% —$12,000 

$14,000 —$16,000 $3,780, plus 39% —$14,000 

$16,000 —$18,000 $4,560, plus 42% —$16,000 

$18,000 —$20,000 $5,400, plus 43% —$18,000 

$20,000 —$22,000 $6,260, plus 47% —$20,000 

$22,000 — $24,000 $7,200, plus 49% — $22,000 

$24,000 —$28,000 $8,180, plus 52% —$24,000 

$28,000 —$32,000 $10,260, plus 54% —$28,000 

$32,000 —$38,000 $12,420, plus 58% —$32,000 

$38,000 —$44,000 $15,900, plus 62% —$38,000 

$44,000 —$50,000 $19,620, plus 66% —$44,000 

$50,000 — $60,000 $23,580, plus 68% — $50,000 

$60,000 —$70,000 $30,380, plus 71% —$60,000 

$70,000 —$80,000 $37,480, plus 74% —$70,000 

$80,000 —$90,000 $44,880, plus 76% —$80,000 

$90,000 —$100,000 $52,480, plus 80% —$90,000 

$100,000 — $150,000 $60,480, plus 83% —$100,000 

$150,000 — $200,000 $101,980, plus 87% — $150,000 

$200,000 — $300,000 $145,480, plus 90% — $200,000 

$300,000 $235,480, plus 91% — $300,000 

oSU— 10 — 74668-1 



Schedule II. (A) MARRIED TAXPAYERS filing joint returns, and (B) 

certain widows and widowers. (See page 8 of these instructions) 

If the amount on 

line 5, page 2, is: Enter on line 6, page 2: 

Not over $4,000 20% of the amount on line 5. 

Oiei — But not over — o/ excess over — 

$4,000 — $8,000 $800, plus 22% — $4,000 

$8,000 —$12,000 $1,680, plus 26% —$8,000 

$12,000 — $16,000 $2,720, plus 30% — $12,000 

$16,000 —$20,000 $3,920, plus 34% —$16,000 

$20,000 —$24,000 $5,280, plus 38% —$20,000 

$24,000 —$28,000 $6,800, plus 43% —$24,000 

$28,000 —$32,000 $8,520, plus 47% —$28,000 

$32,000 —$36,000 $10,400, plus 50% —$32,000 

$36,000 — $40,000. . . ■ $12,400, plus 53% — $36,000 

$40,000 — $44,000 $14,520, plus 56% — $40,000 

$44,000 — $52,000 $16,760, plus 59% — $44,000 

$52,000 —$64,000 ... $21,480, plus 62% —$52,000 

$64,000 — $76,000 $28,920, plus 65% — $64,000 

$76,000 —$88,000 $36,720, plus 69% —$76,000 

$88,000 —$100,000 $45,000, plus 72% —$88,000 

$100,000 — $120,000 $53,640, plus 75% — $100,000 

$120,000 — $140,000 $68,640, plus 78% — $120,000 

$140,000 — $160,000 $84,240, plus 81% —$140,000 

$160,000 — $180,000 $100,440, plus 84% — $160,000 

$180,000 — $200,000 $117,240, plus 87% — $180,000 

$200,000 — $300,000 $134,640, plus 89% — $200,000 

$300,000 — $400,000 $223,640, plus 90% — $300,000 

$400,000 $313,640, plus 91% — $400,000 



106 



FACSIMILES OF TAX RETURNS, 1958 



TAX TABLE FOR CALENDAR YEAR 1958 
FOR PERSONS WITH INCOMES UNDER $5,000 NOT COMPUTING TAX ON PAGE 2 OF FORM 1040 

Read down the income columns below until you Rnd the line covering the adjusted gross income you entered on line 11, page 1, Form 1040. Then read across to the appropriate 
column headed by the number corresponding to the number ol exemptions claimed on line 4, page 1. Enter the tax you find there on line 12, page 1. 



If total income on 
line U. page 1, is— 


And the number of exemptions If total income on 
claimed on line 4, page 1, is— line 11, page 1, is— 


And the number of exemptions claimed on line 4. page 1. is— 






1 


mm 

\ ' II 

more' W^i At least 
there 
is no 
tax xM 


But less 
than 

$2, 350 
2,375 


1 
And you are- 


2 

And )fou are- 


3 
And you are- 


4 


5 


6 


7 


At least 


But less 
than 


Single ! 
or a 1 An un- 
married' married 
person \ head o( 
filing ia house- 
sepa- i hold 
rately I 


Single 1 ': (*) 

ot a 1 An un- ; A 
married ; married ; married 
person • head of ; couple 

filing ;a house-; filing 

sepa- [ hold ; jointly 

rately ; I 


Single 

married 
person 
filing 
sepa- 
rately 


i (*) 
Anun-i A 
married; married 
head of ; couple 
a house-; filing 
hold 1 jointly 


If 8 or 
more 
there 
is no 
tax 




Your tax is— 


Your tax is— 


$0 
675 


$675 
700 


$0 i $0 SO $2,325 
4 ; 0,0 2,350 


$301 i$301 
305 : 305 


$181 i$181 ;$181 
185 i 185 i 185 


$61 
65 


$61 i $61 
65 i 65 


$0 



$0 



$0 



$0 



700 
725 
750 

775 


725 
750 
775 
800 


8 
13 
17 
22 









2, 375 
2, 400 
2,425 
2. 450 


2,400 
2,425 
2,450 
2.475 


310 ; 310 
314 ; 314 
319 i 319 
323 i 323 


190 i 190 ; 190 
194 i 194 i 194 
199 : 199 : 199 
203 1 203 ! 203 


70 

74 
79 
83 


70 ; 70 
74 ; 74 
79 ; 79 
83 1 83 



























800 
825 
850 
875 


825 
850 
875 
900 


26 
31 
35 
40 








2, 475 
2, 500 
2, 525 
2, 550 


2.500 
2,525 
2,550 
2,575 


328 i 328 
332 i 332 
337 1 337 
341 i 341 


208 : 208 : 208 
212 i 212 ; 212 
217 i 217 ; 217 
221 : 221 : 221 


88 

92 

97 

101 


88 i 88 
92 i 92 
97 ; 97 
101 : 101 


























900 
925 
950 
975 


925 

950 

975 

1,000 


44 
49 
63 

58 








2, 575 
2, 600 
2, 625 
2, 650 


2,600 
2.625 
2,650 
2,675 


346 i 346 
350 i 350 
355 i 355 
359 1 359 


226 I 226 ; 226 
230 : 230 ; 230 
235 i 235 i 235 
239 ! 239 ! 239 


106 
110 
115 
119 


106 i 106 
110,; 110 
115 1 115 
119 j 119 


























1,000 
1.025 
1,050 
1,075 


1,025 
1,050 
1,075 
1, 100 


62 
67 
71 
76 








2, 675 
2, 700 
2, 725 
2,750 


2,700 
2, 725 
2,750 
2,775 


364 i 364 
368 ! 368 
373 i 373 
377 i 377 


244 ! 244 ; 244 
248 i 248 i 248 
253 i 253 : 253 
257 ; 257 ■ 257 


124 
128 
133 
137 


124 ! 124 
128 ; 128 
133 1 133 
137 ; 137 


4 
8 
13 
17 




















1,100 
1,125 
1, 150 
1, 175 


1, 125 
1,150 
1, 175 
1,200 


80 
85 
89 
94 


2,775 
2,800 
2, 825 
, 2,850 


2,800 
2,825 
2,850 
2,875 


382 ! 382 
386 ; 386 
391 : 391 
395 : 395 


262 ; 262 1 262 
266 i 266 '; 266 
271 i 271 ; 271 
275 1 275 1 275 


142 
146 
151 
155 


142 i 142 
146 1 146 
151 i 151 
155 i 155 


22 
26 
31 
35 




















1,200 
1,225 
1,250 
1,275 


1,225 
1,250 
1,275 
1,300 


98 
103 
107 
112 


, ;:j 2,875 
1 2,900 
I ; "i 2,925 
1 ;« 2,950 


2,900 
2,925 
2,950 
2, 975 


400 : 400 
405 i 404 
410 : 409 
415 : 414 


280 ; 280 i 280 
284 ; 284 ; 284 
289 : 289 i 289 
293 : 293 ■ 293 


160 
164 
169 
173 


160 ; 160 
164 ; 164 
169 ! 169 
173 i 173 


40 
44 
49 
53 




















1,300 
1,325 
1,350 
1,375 


1,325 
1,350 
1,375 
1,400 


116 
121 
125 
130 




1 

5 

10 


2, 975 
3, 000 
3, 050 
3, 100 


3,000 
3,050 
3, 100 
3, 150 


420 i 419 
427 1 426 
437 ; 435 
447 i 445 


298 i 298 i 298 
305 ; 305 i 305 
314 : 314 ; 314 
323 ; 323 i 323 


178 
185 
194 
203 


178 : 178 
185 ; 185 
194 ; 194 
203 ; 203 


58 
65 
74 
83 




















1,400 
1,425 
1,450 
1,475 


1,425 
1,450 
1, 475 
1, 500 


134 14 3, 150 
139 19 3,200 
143 23 3,250 
148 28 3,300 


3,200 
3,250 
3,300 
3,350 


457 ! 454 
467 ; 464 
476 C 473 
486 ; 482 


332 ; 332 : 332 
341 i 341 ; 341 
350 ; 350 ■ 350 
359 : 359 : 359 


212 
221 
230 
239 


212 ! 212 
221 i 221 
230 ; 230 
239 ; 239 


92 
101 
110 
119 




















1,500 
1,525 
1,550 
1,575 


1,525 
1,550 
1,575 
1,600 


152 
157 
161 
166 


32 
37 

41 
46 


3, 350 
3, 400 
3, 450 
3, 500 


3,400 
3,450 
3,500 
3,550 


496 : 492 
506 1 501 
516 ; 511 
526 j 520 


368 i 368 ; 368 
377 : 377 ; 377 
386 i 386 i 386 
395 j 395 ; 395 


248 
257 
266 
275 


248 ; 248 
257 ; 257 
266 1 266 
275 i 275 


128 
137 
146 
155 


8 
17 
26 
35 














1,600 
1,625 
1,650 
1,675 


1,625 
1, 650 
1,675 
1,700 


170 
175 
179 

184 


50 
55 
59 
64 


3, 550 
3, 600 
3, 650 
3, 700 


3,600 
3,650 
3,700 
3,750 


536 ; 530 
546 ; 539 
556 ! 549 
566 : 558 


404 I 404 ; 404 
414 ; 413 ; 413 
424 : 423 ; 422 
434 ; 432 i 431 


284 
293 
302 
311 


284 : 284 
293 i 293 
302 ; 302 
311 : 311 


164 
173 
182 
191 


44 
53 
62 
71 














1,700 
1,725 
1,750 
1,775 


1,725 
1,750 
1,775 
1,800 


188 
193 
197 
202 


68 
73 

77 
82 


3, 750 
3,800 
3, 850 
3, 900 


3,800 
3,850 
3,900 
3,950 


575 : 567 
585 i 577 
595 ; 586 
605 ; 596 


443 : 441 : 440 
453 : 451 ; 449 
463 : 460 ; 458 
473 i 470 : 467 


320 
329 
338 
347 


320 1 320 
329 ; 329 
338 ; 338 
347 j 347 


200 
209 
218 
227 


80 
89 
98 
107 














1,800 
1,825 
1,850 
1,875 


•1, 825 
1,850 
1,875 
1,900 


206 
211 
215 
220 


86 
91 
95 
100 


3, 950 
.4,000 
4, 050 
^ 4, 100 


4,000 
4,050 
4, 100 
4, 150 


615 1 605 
625 : 615 
635 i 624 
645 ; 634 


483 ; 479 ; 476 
493 ; 489 : 485 
503 1 498 ; 494 
513 ; 508 i 503 


356 
365 
374 
383 


356 ; 356 
365 '; 365 
374 : 374 
383 '; 383 


236 
245 
254 
263 


116 
125 
134 
143 




5 

14 

23 








1,900 
1,925 
1,950 
1.975 


1,925 
1,950 
1,975 
2,000 


224 
229 
233 
238 


104 
109 
113 
118 


4, 150 
' 4, 200 
0^4, 250 
4,300 


4,200 
4,250 
4,300 
4,350 


655 1 643 
665 i 653 
674 ; 662 
684 : 671 


523 i 517 ; 512 
533 ; 527 ; 521 
542 ; 536 ; 530 
552 ; 545 j 539 


392 
401 
410 
420 


392 i 392 
401 i 401 
410 ; 410 
419 1 419 


272 
281 
290 
299 


152 
161 
170 
179 


32 
41 
50 
59 








2,000 
2,025 
2,050 
2,075 


2,025 

2,050 

2,075 

1 2, 100 


242 

247 
251 
256 


122 
127 
131 
136 


2 4, 350 

7 4, 400 

11' 4, 450 

16 4,500 


4,400 
4,450 
4,500 
4,550 


694 : 681 
704 i 690 
714 i 700 
724 : 709 


562 ; 555 ; 548 
572 ; 564 ; 557 
582 i 574 ; 566 
592 ! 583 : 575 


430 
440 
450 
460 


429 ; 428 
438 1 437 
448 ; 446 
457 : 455 


308 
317 
326 
335 


188 
197 
206 
215 


68 
77 
86 
95 








2,100 
2,125 
2,150 
2,175 


! 2, 125 
2,150 
2, 175 
2,200 


260 
265 
269 
274 


140 20 4, 550 
145 25 4,600 
149 29 4, 650 
154 34 4,700 


4,600 

4,650 

I 4,700 

4,750 


734 ; 719 
744 : 728 
754 : 738 
764 i 747 


602 i 593 i 584 
612 1 602 ; 593 
622 ; 612 ; 602 
632 j 621 ; 611 


470 
480 
490 
500 


467 ; 464 
476 i 473 
486 ; 482 
495 j 491 


344 
353 
362 
371 


224 
233 
242 
251 


104 
113 
122 
131 




2 

11 


2,200 
2,225 
2.250 
2,275 


2,225 
2,250 
2,275 
2.300 


278 
283 
287 
292 


158 
163 
167 
172 


38 ra 4.750 , 4,800 
43 II 4,800 4,850 
47 r 1 4, 850 4, 900 
52 h'i 4, 900 4, 950 


773 i 756 
783 i 766 
793 i 775 
803 : 785 


641 ; 630 : 620 
651 i 640 i 629 
661 ; 649 : 638 
671 ; 659 ; 647 


509 
519 
529 
539 


504 ; 500 
514 ; 509 
523 i 518 
533 : 527 


380 
389 
398 
407 


260 
269 
278 
287 


140 
149 
158 
167 


20 
29 
38 

47 


2,300 1 2,325 


296 


176 56 . 4,950 5,000 


813 : 794 


681 i 668 ; 656 


549 


542 ; 536 


416 


296 


176 


56 


16 ( 


:ti^Thiacol 


iimo mmj i 


IsobeuM 


d b/ * widow or widowei 


wllhdeper 


dent child who 


meets certain qualiflcatio 
net C69-16— 74S58-1 


ns whic 


li are explained o 


n|>a£G8 


of these 


InalrucI 


on*. 



FACSIMILES OF TAX RETURNS. 1958 



107 



SCHEDULE C 
(Form 1040) 



U. S. Treasury Department — Internal Revenue Service 

PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION 

(Compute Social Security Self-Employment Tax on Page 3) 



1958 



Attach this schedule to your Income Tax Return, Form 1040 — Partnerships, Joint Ventures, Etc., Must File On Form 106S 



For Calendar Year 1958, or other taxable year beginning 



, 1958, and ending 



, 195 



Name as shown on page 1, Form 1040 

If you had more than one business, or husband and wife had separate businesses, a separate page 1 of Schedule C must be completed 
for each business. 



A. Principal business activity: 

(See instructions, page 2) 



(Retail trade, wholesale trade, lawyer, etc.) 



(Principal product or service) 



B. Business name: ... 

C. Business location: 



(Number and street ( 



(City or psost office) 



(County) 



D. Did you file an Employer Quarterly Tax Return, Form 941, for any quarter of 1958? CH Yes C] No. E. Employer's Identification 

Number,ifany F. Is this business within the legal boundaries of a municipality? I I Yes I I No. 

6. Did you own this business on December 31, 1958? CH Yes □ No. H. How many months in 1958 did you own this business? 



1. 
2. 
3. 

4. 
5. 

6. 

7. 
8. 
9. 
10. 

11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 
21. 
22. 
23. 



Total receipts $ , less allowances, rebates, and returns $. 

Inventory at beginning of year 

Merchandise purchased $ , less any items withdrawn 

from business for personal use $_ 

Cost of labor (do not include salary paid to yourself) 

Material and supplies 

Other costs (explain in Schedule C-2) 

Total of lines 2 through 6 

Inventory at end of year 

Cost o£ goods sold (line 7 less line 8) 

Gross profit (line 1 less line 9) 

OTHER BUSINESS DEDUCTIONS 



Salaries and wages not included on line 4 (exclude any paid to yourselO . . • ■ $- 

Rent on business property 

Interest on business indebtedness 

Taxes on business and business property 

Losses of business property (attach statement) 

Bad debts arising from sales or services 

Depreciation (explain in Schedule C-1) 

Repairs (explain in Schedule C-2) 

Depletion of mines, oil and gas wells, timber, etc. (attach schedule) 

Amortization (attach statement) 

Other business expenses (explain in Schedule C-2) 

Total of lines 1 1 through 21 

Net profit (or loss) (line 10 less line 22). Enter here; on line 24, page 3; and on line 8, pagel. Form 1040. 



Schedule C-1. EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED ON LINE 17 


1 . Kind of properly (if buildings, slate material 
o( wtiicti constructed). Exclude land and 
ottier nondepreciable property 


2. Date 
acquired 


3. Cost or 
other basis 


4. Depreciation al- 
lowed (or allowable) 
in prior years 


5. Method of com. 
puting depreciation 


6. Rate(%) 
or life (years) 


7. Depreciation 
for this year 






$ — 


. $ 






$ 








































































Schedule C-2. EXPLANATION OF LINES 6, 18, AND 21 


Line No. 


Explanation 


Amount 


Line No. 


Explanation | Amount 






$ 






$ 







































































108 



FACSIMILES OF TAX RETURNS, 1958 



INSTRUCTIONS 



Page 2 



If you owned a business, or practiced a profession, you must 
fill in separate Schedule C on other side and enter the net profit 
(or loss) on line 8, page 1, Form 1040. 

Separate Schedule C should include income from (1) sale of 
merchandise, or products of manufacturing, mining, and construc- 
tion; (2) business service; and (3) professional service. In general, 
you should report any income in the earning of which you have 
incurred expenses for material, labor, supplies, and the like. 

All farmers should use separate Schedule? (Form 1040) to report 
their form income whether reporting on the cash or accrual method. 

Income from any trade or business is subject to the social security 
self-employment tax, unless specifically excluded. See page 4. 

Item A — Business Activity. — State the general classification of 
business activity, as well as the principal product or service. For 
example, "Wholesale food," "Retail men's apparel," "Manufac- 
ture of upholstered wooden household furniture," "Transportation 
by truck," "Broker, real estate," "Contractor — carpenter work," 
"Physician," etc. Do not use such terms as "partnership," "owner," 
"student," etc. The "principal business activity" is the one which 
accounts for the largest percentage of your total receipts. 

Item C — Business Location. — Do not use home address as 
business address unless business is actually conducted from home. 
Enter street address rather than box numbers. 

Line 1 — Total Receipts. — Include all income derived from your 
trade or business. Enter in the space provided such items as re- 
turned sales, rebates, and allowances from the sale price or service 
charge. 

If you have dividend income from stocks held by you in the 
ordinary course of carrying on your trade or business, such dividends 
must be considered together with your dividends from stocks regu- 
larly held for investment purposes in computing your dividend 
exclusion and credit on pages 3 and 4, Form 1040. 

Installment Sales. — If you use the installment method of report- 
ing income from sales, you must attach to your return a schedule 
showing separately for the years 1955, 1956, 1957, and 1958 the 
following: (a) Gross sales; (b) cost of goods sold; (c) gross profits; 
(d) percentage of profits to gross sales; (e) amounts collected; and 
(t) gross profits on amounts collected. 

COST OF GOODS SOLD 

Lines 2-9. — If you are engaged in a trade or a business in 
which the production, purchase, or sale of merchandise is an income 
producing factor, you must take inventories of merchandise and 
materials on hand at the beginning and end of the taxable year in 
order to reflect the gross profits correctly. The usual methods of 
valuing inventory are (a) cost or (b) cost or market whichever is 
lower. The method properly adopted for the first year in which inven- 
tory is taken must be continued unless permission to change is se- 
cured from the Commissioner of Internal Revenue, Washington 25, 
D. C. Application for permission to change the method of valuing 
inventories must be made in writing and filed with the Commissioner 
within 90 days after the beginning of the taxable year in which it 
is desired to effect a change. You should enter the letters "C" or 
"C or M" immediately before the amount column if inventories are 
valued either at cost, or at cost or market whichever is lower. 

Other methods of valuing inventories of material or merchandise 
are provided for dealers in securities, for farmers, for miners, for 
manufacturers who produce more than one product from a single 
process, and for retail merchants using the "retail method." 

A special method based on cost, LIFO, is allowable only if you 
file an application on Form 970 with your return for the first year 
used. The reguirements for adopting and using the LIFO method 
are set forth on Form 970. Thereafter, you must attach a separate 
schedule showing: (a) a summary of all inventories; (b) with respect 
to inventories computed under the LIFO method, the computation of 
quantities and cost by acquisition levels. 

OTHER BUSINESS DEDUCTIONS 

Line 11 — Salaries and Wages. — Enter all salaries and wages 
not included as "Cost of Labor" in "Cost of Goods Sold." Do not 
deduct any salary or wages for your own services or services of 
others not performed in connection with your business. 

Line 12 — Rent on Business Properly. — Rents paid or accrued 
on business property in which you have no equity are deductible. 
Do not include rent for a building, or any part thereof, which you 
occupy solely for residential purposes. 

Line 13 — Interest on Business Indebtedness. — Interest on 
business indebtedness to others is deductible. Do not include 
interest to yourself on capital invested in or advanced to the business. 



Line 14 — Taxes on Business and Business Property. — Include 
taxes paid or accrued on business property or incurred in carrying 
on your business. Federal import duties and Federal excise and 
stamp taxes are deductible if paid or incurred in carrying on a 
trade or business. Do not include taxes assessed against local 
benefits of a kind tending to increase the value of the property 
assessed, as for paving, sewers, front foot benefits, etc. 

Line 15 — Losses of Business Property. — You may deduct losses 
of business property by fire, storm, or other casualty, or theft, to the 
extent not compensated by insurance or otherwise and not made 
good by repairs claimed as a deduction. Attach a statement show- 
ing a description of the property, date acquired, cost, subsequent 
improvements, depreciation allowed or allowable since acquisition, 
insurance, salvage value, and deductible loss. 

Line 16 — Bad Debts Arising From Sales or Services. — Include 
debts, or portions thereof, arising from sales or professional services 
that have been included in income, which have been definitely 
ascertained to be worthless; or such reasonable amount as has 
been added within the taxable year to a reserve for bad debts. A 
debt which is deducted as bad and which reduces your tax must, 
if subsequently collected, be returned as income for the year in 
which collected. 

Line 17 — Depreciation and Obsolescence. — You may deduct 
a reasonable allowance for exhaustion, wear and tear, and 
obsolescence of property used in the trade or business. For 
additional information regarding depreciation, especially on new 
property acquired or constructed after December 31, 1953, see 
depreciation section in the instructions for Form 1040. 

If a deduction is claimed on account of depreciation, fill in Sched- 
ule C-1. In case obsolescence is included, state separately amount 
claimed and basis upon which it is computed. The value or cost 
of land must not be included in this schedule, and where land and 
buildings were purchased for a lump sum, the cost of the building 
subject to depreciation must be established. The adjusted prop- 
erty accounts and the accumulated depreciation shown in the 
schedule should be reconciled with those accounts as reflected on 
your books. 

Line 18 — Repairs. — You may deduct the cost of incidental 

repairs, including labor, supplies, and other items, which do not 
add to the value or appreciably prolong the life of the property. 
Expenditures for new buildings, machinery, and equipment, or for 
permanent improvements or ijetterments which increase the value 
of the property are chargeable to capital accounts. Expenditures 
for restoring or replacing property are not deductible, since such 
expenditures are chargeable to capital accounts or to depreciation 
reserve depending on how depreciation is charged on your books. 

Line 19 — Depletion of Mines, Oil and Gas Wells, Timber, 
Etc. — If a deducKon is claimed on account of depletion, procure 
from your District Director Form M (mines and other natural deposits). 
Form O (oil and gas), or Form T (timber), fill in and file with 
return. If complete valuation data have been filed with question- 
naire in previous years, then file with your return information 
necessary to bring depletion schedule up to date, setting forth in 
full a statement of all transactions bearing on deductions from or 
additions to value of physical assets during the taxable year with 
explanation of how depletion deduction for the taxable year has 
been determined. (See sections 615 and 616 of the Internal Rev- 
enue Code of 1954 for election to capitalize or deduct expendi- 
tures for exploration and development of mineral properties.) 

Line 20 — Amortization. — If you elect the deduction with respect 
to the amortization of the adjusted basis of (a) any emergency 
facility with respect to which the Government has issued a certificate 
of necessity, or (b) a grain storage facility, a statement of the perti- 
nent facts should be filed with your return. (See sections 168 
and 169 of the Internal Revenue Code of 1954.) 

For the election to amortize research or experimental expenditures 
not subject to depreciation or depletion, see section 174 of the Code. 

For the election to amortize trademark or trade name expendi- 
tures, see section 177 of the Code. 

Line 21 — Other Business Expenses. — Include all ordinary 
and necessary business expenses for which no space is provided 
in the schedule. Any deduction claimed should be explained 
in Schedule C-2. Do not include cost of business equipment or 
furniture, expenditures for replacements, or for permanent improve- 
ments to property, or personal living and family expenses. 

Net Operating Loss Deduction. — Any net operating loss 
deduction should be applied as an adjustment of the amount entered 
on line 11, page 1, Form 1040. See instructions for Form 1040 and 
submit computation. o«— 16—74556-1 



FACSIMILES OF TAX RETURNS, 1958 



109 
Pages 



COMPUTATION OF SOCIAL SECURITY SELF-EMPLOYMENT TAX 
(See Instructions — Page 4) 



► I£ you had wages o£ $4,200 or more which were subject to the deduction for social security, do not fill in this page. 

► Complete only one page 3; if you had more than one business, combine profits (or losses) from all of your businesses on this page. 

► Each self-employed person must file a separate schedule. See instructions, page 4, for joint returns and partnerships. 
NAME OF SELF-EMPLOYED PERSON (as shown on social securily card) 



24. Net profit (or loss) shown on line 23, page 1 (Enter combined amount if more 
than one business) 



25. Add to net profit (orsubtrocl from net loss) losses of business property shown on line 

15, page 1 

26. Total (or difference) 



28 



30. 



31. 



27. Net income (or loss) from excluded services or sources included on line 26 (See "Exclusions," page 4) . 
Specify excluded services or sources _ 

Net earnings (or loss) from self-employment — 

(a) From business (line 26 less any amount on line 27) 

(b) From partnerships, joint ventures, etc. (other than farming) 

(c) From service as a minister, member of a religious order, or o Christian Science practitioner 

Enter only if you elect Social Security coverage by filing Form 2031 (See instructions, page 4). 

(d) From farming reported on line 12 or 13, separate Schedule F (Form 1040) 



29. Total net earnings (or loss) from self-employment reported on line 28. Enter here and on line 6 below . . . . 
(If line 29 is under $400, you are not subject to self-employi-iont tax. Do not fill in rest of page.) 



The largest amount subject to social security self-employment tax is 

($4,800 for years ending after December 31, 1958) 

Less: Total wages, subject to deduction for social security, paid to you during the 
taxable year. (For wages reported on Form W-2, see "F. I. C. A. Wages" box.) 
Enter here and on line 7, below 



4,200 



00 



32. Balance (line 30 less line 31) 

33. Self -employment income — line 29 or 32, whichever is smaller. Enter here and on line 8, below 

34. Self-employment tax — take 3%% °' the amount on line 33. (You can do this by multiplying the amount 

on line 33 by .03375.) Enter this amount here and on line 15, page 1, Form 1040 



Important. — The amounts reported on the form below are for your social security account. This account is used in 
figuring any benefits, based on your earnings, payable to you, your dependents, and your survivors. Fill in each 
item accurately and completely, but do not detach. 



SCHEDULE SE (Farm 1040) 
U. S. Treasury Department 
Internal Revenue Service 



U. S. REPORT OF SELF-EMPLOYMENT INCOME 

For Crediting to Your Social Security Account 



1958 



Indicate year covered by this return (even though income was received only in part of year): 
1_ n Calendar year 1958 D Other taxable year beginning 1958. ending 

If less than 12 months, was short year due to (a) O Death, or (b) EH Change in accounting period, 
or (c) D Other. 



BUSINESS ACTIVITIES SUBJECT TO SELF-EMPLOYMENT TAX (Grocery Store, Resta 



nt, etc.) 



BUSINESS ADDRESS (Number and Street, City or Post Office, Postal Zone Number, State) 



SOCIAL SECURITY ACCOUNT NUMBER 
' OF PERSON NAMED IN ITEM 5 BELOV^ 



PRINT OR TYPE NAME OF SELF-EMPLOYED PERSON AS SHOWN ON SOCIAL SECURITY CARD 



PRINT OR TYPE HOME ADDRESS (Number and Street or Rurol Route) 



(City or Post Office, Postal Zone Number. State) 




ENTER TOTAL EARN- 
INGS FROM SELF-EM- 
6. PLOYMENT SHOWN 
ON LINE 29 ABOVE. . 



ENTER WAGES, IF 

7. ANY, SHOWN ON 

LINE 31 ABOVE... 



ENTER AMOUNT 
8. SHOWN ON LINE 33 



048—16—74668-1 



110 



FACSIMILES OF TAX RETURNS, 1958 



INSTRUCTIONS FOR SOCIAL SECURITY SELF-EMPLOYMENT TAX Page 4 



In general, every individual deriving self-employment income 
during the taxable year of $400, or more, from a trade or business 
carried on by him or from a partnership of which he is a member 
is subject to the self -employment tax. This computation is made on 
lines 24 through 34. This tax must be paid regardless of age and 
even though the individual is receiving social security benefits. 

Ministers, Members ol Religious Orders, and Christian 
Science Practitioners. — Duly ordained, commissioned, or licensed 
ministers of churches, members of religious orders (who have not 
taken a vow of poverty), and Chrishan Science practitioners are 
not automatically covered by the Social Security Act, but may 
elect to be covered by hling Form 2031. Copies are available in 
the office of any district director of Internal Revenue. The instruc- 
tions on the form set out the provisions of the law which permit 
these forms under certain conditions to be filed to cover ministers, 
and others mentioned above, retroactively to 1956 for social secu- 
rity purposes. If you wish to be covered, do not delay filing 
your income tax return beyond the due date even though you 
have not obtained a Form 2031. In such case, complete page 
three of this schedule, file it with Form 1040, and then hie Form 
203 1 as promptly as possible to make your election. This also applies 
to persons who have assumed that by paying the self-employment 
tax as shown in Schedule C they were covered for social security 
purposes. If a Form 2031 was not filed, one should now be filed. 

Ministers, and others mentioned atiove, who desire coverage 
shall, in addition to their other items of income for 1958 and sub- 
sequent years, include for the purpose of determining net earnings 
from self-employment (but not for income tax purposes) the rental 
value of a parsonage or allowance for the rental value of the par- 
sonage, and the value of meals and lodging furnished them for the 
convenience of their employers. 

No deductions for personal exemptions. — The deductions for 
peisonal exemptions are not allowable in determining net earnings 
from self-employment. 

Form income. — Farmers report farm income and net income from 
self -employment from farming on separate Schedule F (Form 1040). 
EXCLUSIONS 

Income (or loss) from the following sources and deductions attrib- 
utable thereto are not taken into account in figuring net earnings 
from self-employmenl. Use line 27 to exclude any such amounts 
reported on page 1 that should not be taken into account in figuring 
your self-employment income. 

Doctors o£ medicine. — Income from the performance of service 
as a doctor of medicine or income from the performance of such 
service by a partnership. 

Christian Science practitioners. — Income from the perform- 
ance of service as a Christian Science practitioner, unless such 
Christian Science practitioner elects by filing Form 2031 to be 
covered by the Social Security Act, as explained above. 

Religious services. — Income from the performance of service 
by a duly ordained, commissioned, or licensed minister of a church 
in the exercise of his ministry or by a member of a religious order 
in the exercise of duhes required by such order, unless such minister 
or member of a religious order elects by filing Form 2031 to be 
covered by the Social Security Act, as explained above. 

Employees and. public officials. — Income from the perform- 
ance of service as: 

(a) a public official, including a notary public; 

(b) an employee or employee representative under the railroad 
retirement system; or 

(c) an employee. 

Note. — The income of an employee over the age of 18 from 
the sale of newspapers or magazines to an ultimate consumer 
is subject to the self-employment tax if the income consists of 
retained profits from such sales. 
Real estate rentals. — Rentals from real estate, except rentals 
received in the course of a trade or business as a real estate dealer. 
This includes cash and crop shares received from a tenant or 
sharefarmer. These amounts should be reported in Schedule G of 
Form 1040. However, rental income from a farm is not excluded if 
the rental arrangement provides for material participation by the 
landlord and he does participate materially in the production or 
in the management of the production of farm products on his land- 
Such income represents farm earnings and should be reported on 
separate Schedule F (Form 1040). 

Payments for the use or occupancy of rooms or other space where 
services are also rendered to the occupant, such as rooms m hctels. 
boarding houses, apartment houses furnishing hotel services, tourist 
camps, or homes, or space in parking lots, warehouses, or storage 
garages do not constitute rentals from real estate and are included 
in determining net earnings from self-employment on Schedule C. 

Interest and dividends. — Dividends on shares of stock, and 
interest on bonds, debentures, notes, certificates, or other evidences 
of indebtedness, issued with interest coupons or in registered form 



by a corporation, or by a government or political subdivision thereof, 
unless received in the course of a trade or business as a dealer in 
stocks or securities. These amounts should be reported in Schedules 
A and B of Form 1040. 

Property gains and losses. — Gain or loss: (a) from the sale or 
exchange of a capital asset; (b) to which sections 631 and 1231 
are applicable; or (c) from the sale, exchange, involuntary con- 
version, or other disposition of property if such property is neither 
(1) stock in trade or other property of a kind which would properly 
be includible in inventory if on hand at the close of the taxable 
year, nor (2) property held primarily tor sale to customers in the 
ordinary course of the trade or business. These amounts should be 
reported on separate Schedule D (Form 1040). 

Net operating losses. — No deduction for net operating losses of 
other years shall be allowed in determining the net earnings from 
self-employment. Such deduction should be applied as an adjust- 
ment of the amount shown on line 11, page 1, of Form 1040. 
MORE THAN ONE TRADE OR BUSINESS 

If an individual is engaged in more than one trade or business, 
his net earnings from self-employment are the combined net earn- 
ings from self-employment of all his trades or businesses. Thus, the 
loss sustained in one trade or business will operate to reduce the 
income derived from another trade or business. An individual shall 
fill in and file only one page 3 of this form, including Schedule SE, 
for any one year. 
JOINT RETURNS 

Where husband and wife file a joint income tax return, page 3 of 
Schedule C (Form 1040) should show the name of the one with self- 
employment income. Where husband and wife each have self- 
employment income, a separate Schedule C must be attached for 
each. In such cases the total of amounts shown on line 23 of each 
separate schedule should be entered on line 8, page 1, Form 1040, 
and the aggregate self-employment tax (line 34) should be entered 
on line 15, page I, Form 1040. 
COMMUNITY INCOME 

For the purpose of computing net earnings from self-employment, 
if any of the income from a trade or business is community income, 
all the income from such trade or business is considered the income 
of the husband unless the wife exercises substantially all the man- 
agement and control of the trade or business, in which case all of 
such income is considered the income of the wife. (Also see instruc- 
tions on Partnerships below.) 

If separate income tax returns are filed by husband and wife, 
a complete Schedule C should be attached to the return of the one 
with self-employment income. Community income included on such 
a schedule must be allocated between the two returns (on line 8, 
page I, Form 1040) on the basis of the community property laws. 

PARTNERSHIPS 

In computing his combined net earnings from self-employment, a 
partner should include his entire shore of such earnings from a 
partnership including any guaranteed payments. No part of that 
share may be allocated to the partner's wife (or husband) even 
though the income may, under State law, be community income. In 
the case of a husband and wife partnership, like other partnerships, 
the distributive share of each should be entered in Schedule H, 
page 3 of Form 1040, for income tax purposes. For self-employment 
tax purposes the distributive share of each partner should be enter- 
ed on line 28(b), page 3, of this form (except that farm partnership 
earnings are to be reported on line 11(b), separate Schedule F 
(Form 1040) rather than on line 28(b) of this schedule). 

Note: If a member of a continuing partnership dies after August 
28, 1958, a pro rata share of the partnership's ordinary income (or 
loss) for its current year must be included in the partner's net earn- 
ings from self-employment.' The rule may also apply for deaths 
occurring after 1955 and before August 29, 1958. In such cases con- 
sult your nearest Internal Revenue Service office as to how to report. 

SCHEDULE SE (Form 1040) 

Schedule SE, which is the lower portion of page 3 of Schedule C, 
provides the Social Security Administration with the information on 
sell-employment income necessary for computing benefits. 

To assure proper credit to your account, be sure to enter your 
name and social security account number on Schedule SE (Form 
1040) exactly as they are shown on your social security card. If 
you do not have a social security account number, you must get 
one. These account numbers are obtainable from any Social Secu- 
rity district office. Your local post office will give you the address. 
Do not delay filing your return beyond the due date. 

Regardless of whether joint or separate returns. Form 1040, 
aie filed by husband and wife. Schedule SE (Form 1040) 
must show only the name of the one with the self-employ- 
ment income. However, if both had net earnings from self- 
employment, a separate Schedule SE must be filed by each. 



U. S- GOVERNMENT PRINTING OFFICE : 1958- 0-471467 



c48— 16— 74556-1 



FACSIMILES OF TAX RETURNS, 1958 



111 



SCHEDULE D 
(Form 1040) 



U. S. Treasury Department — Intenial Revenue Service 

GAINS AND LOSSES FROM SALES OR EXCHANGES OF PROPERTY 

Attach this schedule to your Income Tax Return, Form 1040 



1958 



For Calendar Year 19S8, or other taxable year beginning 



, 1958. and ending 



. 195 



Nome and Address as shown on page 1 of Form 1040 



(I) CAPITAL ASSETS 



Short-Term Capital Gains and Losses — Assets Held Not More Than 6 Months 


t. Kind of property (i( necessary, attach stale- 
ment of descriptive details not sfiown below) 


b. Date acquired 
(mo., day. yr.) 


c. Date sold 
(mo., day, yt.) 


d. Gross sales price 
(contract price) 


e. Depreciation 

allowed (or 

allowable) since 

acquisition or 

March 1, 1913 

(attach schedule) 


f. Cost or other 
basis and cost of 
subsequent im- 
provements (if not 
purchased, attach 
explanation) 


g. Expense of sale 


h. Gain or loss (column d 
plus column e loss 
sum of columns f 
and s) 


1. _ - 














$ 


































































2. Enter your share of net short-term gain (or loss) from partnerships and fiduciaries 








3. Enter unused capital loss carryover from 5 precedinq taxable years (Attach statement) 






4. Net short-term gain (or loss) from lines 1.2. one 


13 




$ 











Long-Term Capital Gains and Losses — Assets Held More Than 6 Months 




5 














$- - 


















































































6. Enter the full amount of your share of net long-term gain (or loss) from part 


nershiDS and fiduciaries .... 






7. Net long-term gain (or loss) from lines 5 and 6 




$ 


8. Combine the amounts shown on lines 4 and 7. and enter the net gain (or 


loss) here 


$ 


9. If line 8 shows a GAIN— Ent 
there is a loss or no entry on 

10. Deduct line 9 from line 8. Ent 

11. If line 8 shows a LOSS— Ente 

(a) the amount on line 8; (b) taj 
for exemptions: or (c) $1,000. . 


3r 50 percent of line 7 or 50 percent of line 
line?) 


8, whichever is smaller. (EUiter zero if 




er balance here and on line 1, Schedule D Summary on page 3 of Form 1040 

r here and on line 1, Schedule D Summary, Form 1040, the smallest of the following: 
able income computed without regard to capital gains and losses and the deduction 


$ 



COMPUTATION OF ALTERNATIVE TAX. — Use only if the net long-term capital gain exceeds the net short-term capital loss, or if there 
is a net long-term capital gain only, and you are filing (a) a separate return with taxable income exceeding $18,000, or (b) a joint return, 
or OS a surviving husband or wife, with taxable income exceeding $36,000, or (c) as a head of household with taxable income exceeding 
$24,000. 



12. Enter the amount from line 5, page 2, of Form 1040 

13. Enter amount from line 9 above 

14. Balance (line 12 less line 13) 

15. Enter tax on amount on line 14 (Use applicable fax rate schedule on page 15 of Form 1040 Instructions) 

16. Enter 50 percent of line 13 

17. Alternative tax (line 15 plus line 16). If smaller than amount on line 6, page 2, Form 1040, enter this alternative 
tax on line 7, page 2. Form 1040 



(11) PROPERTY OTHER THAN CAPITAL ASSETS 



a. Kind ot property (it necessary, attach state- 
ment of descriptive details not shown below) 


b. Date acquired 
(mo., day, yr.) 


c. Date sold 
(mo., day, yr.) 


d. Gross sales price 
(contract price) 


e. Depreciation 

allowed (of 

allowable) since 

acquisition or 

March 1, 1913 

(attach schedule) 


f. Cost or other 
basis and cost of 
subsequent im- 
provements (if not 
purchased, attach 
explanation) 


g. Expense of sale 


h. Gain ot loss (column d 
plus column e less 
sum of columns f 
and g) 


1 














$ 








































. 










2. Enter your share of non-capita 


gain (or loss) from partnerships and fiduci 


cries 








3. Net gain (or loss) from lines 1 a 


nd 2. Enter 1 


lere and on lir 


e 2, Schedule 


D Summary on page 3 of Form 1040. . . . 


$ 



c59— 16—74552-1 



112 



FACSIMILES OF TAX RETURNS, 1958 



INSTRUCTIONS— (References are 

GAINS AND LOSSES FROM SALES OR EXCHANGES OF 
PROPERTY. — Report details in schedule on other side. 

"Capital assets" defined. — The term "capital assets" means 
property held by the taxpayer (whether or not connected with his 
trade or business) but does NOT include — 

(a) stock in trade or other property of a kind properly includible 
in his inventory if on hand at the close of the taxable year; 

(b) property held by the taxpayer primarily for sale to cus- 
tomers in the ordinary course of his trade or business; 

(c) property used in the trade or business of a character which 
is subject to the allowance for depreciation provided In 
section 167; 

(d) real property used in the trade or business of the taxpayer; 

(e) certain government obligations issued on or after March 1, 
1941, at a discount, payable without interest and maturing 
at a fixed date not exceeding one year from date of issue; 

(f) certain copyrights, literary, musical, or artistic composi- 
tions, etc.; or 

(g) accounts and notes receivable acguired in the ordinary 
course of trade or business for services rendered or from 
the sale of property referred to in (a) or (b) above. 

Special rules apply to dealers in securities for determining capital 
gain or ordinary loss on the sale or exchange of securities. Certain 
real property subdivided for sale may be treated as capital assets. 
Sections 1236 and 1237. 

If the total distributions to which an employee is entitled under 
an employees' pension, bonus, or profit-sharing trust plan, which is 
exempt from tax under section 501(a), are paid 'o the employee in 
one taxable year, on account of the employee's separation from the 
service, the aggregate amount of such distribution, to the extent it 
exceeds the amounts contributed by the employee, shall be treated 
as a long-term capital gain. 

Gain on sale of depreciable property between husband and wife 
or between a shareholder and a "controlled corporation" shall be 
treated as ordinary gain. 

Gains and losses from transactions described in section 1231 
(see below) shall be treated as gains and losses from the sale or 
exchange of capital assets held for more than 6 months if the total 
of these gains exceeds the total of these losses. If the total of these 
gains does not exceed the total of these losses, such gains and losses 
shall not be treated as gains and losses from the sale or exchange 
of capital assets. Thus, in the event of a net gain, all these trans- 
actions should be entered in the "long-term capital gains and losses" 
portion of Schedule D. In the event of a net loss, all these trans- 
actions should be entered in the "property other than capital assets" 
portion of Schedule D, or in other applicable schedules on Form 1040. 

Section 1231 deals with gains and losses arising from — 

(a) sale, exchange, or involuntary conversion, of land (includ- 
ing in certain cases unharvested crops sold v/ith the land) 
and depreciable property if they are used in the trade or 
business and held for more than 6 months, 

(b) sale, exchange, or involuntary conversion of livestock held 
for draft, breeding, or dairy purposes (but not including 
poultry) and held for 1 year or more, 

(c) the cutting of timber or the disposal of timber or coal to 
which section 631 applies, and 

(d) the involuntary conversion of capital assets held more than 
6 months. 

See sections 1231 and 631 for specific conditions applicable. 

Description of property listed. — State following facts: (a) For 
real estate (including owner-occupied residences), location and 
description of land and improvements; (b) tor bonds or other evi- 
dences of indebtedness, name of issuing corporation, particular 
issue, denomination, and amount; and (c) for stocks, name of corpo- 
ration, class of stock, number of shares, and capital changes 
affecting basis (including nontaxable distributions). 

Basis. — In determining gain or loss in case of property acquired 
after February 28, 1913, use cost, except as specially provided. 
The basis of property acquired by gift after December 31, 1920, is 
the cost or other basis to the donor in the event of gain, but, in the 
event of loss, it is the lower of either such donor's basis or the fair 
market value on date of gift. If a gift tax was paid with respect 
to property received by gift, see section 1015(d). Generally, the 
basis of property acquired by inheritance is the fair market value 
at time of acquisition which usually is the date of death. For special 
cases involvinq property acquired from a decedent, see section 1014. 
In the case of sales and exchanges of automobiles and other prop- 
erty not used in your trade or business, or not used for the produc- 
tion of income, the basis for determining gain is the original cost 
plus the cost of permanent improvements thereto. No losses are 
recognized for income tax purposes on the sale and exchange of 
such properties. In determining GAIN in case of property acquired 
before March 1, 1913, use the cost or the fair market value as of 
March 1, 1913, as adjusted, whichever is greater, but in determin- 
ing LOSS use cost as adjusted. 



to the Internal Revenue Code of 19S4) 

Sale of a personal residence. — See Form 1040 instructions for 

special rules applicable to sale or exchange of your residence. 

Losses on securities becoming worthless. — If (a) shares of 
stock become worthless during the year or (b) corporate securities 
with interest coupons or in registered form become worthless during 
the year, and are capital assets, the loss therefrom shall be con- 
sidered as from the sale or exchange of capital assets as of the last 
day of such taxable year. 

Losses on small business stock. — In the case of an individual 
a loss on section 1244 stock which would (but for that section) be 
treated as a loss from the sale or exchange of a capital asset shall, 
to the extent provided in that section, be treated as a loss from the 
sale or exchange of an asset which is not a capital asset. 

Nonbusiness debts. — If a debt, such as a personal loan, becomes 
totally worthless within the taxable year, the loss resulting therefrom 
shall be considered a loss from the sale or exchange, during the 
taxable year, of a capital asset held for not more than 6 months. 
Enter such loss in column (h) and describe in column (a) in the 
schedule of short-term capital gains and losses on other side. This 
does not apply to: (a) a debt evidenced by a corporate security with 
interest coupons or in registered form and (b) a debt acquired in 
your trade or business. 

Classification of capital gains and losses. — The phrase 
"short-term" applies to gains and losses from the sale or exchange of 
capital assets held for 6 months or less; the phrase "long-term" 
applies to capital assets held for more than 6 months. 

Treatment of capital gains and losses. — Short-term capital 
gains and losses will be merged to obtain the net short-term, 
capital gain or loss. Long-term capital gains and losses (taken into 
account at 100 percent) will be merged to obtain the net long- 
term capital gain or loss. If the net short-term capital gam exceeds 
the net long-term capital loss, 100 percent of such excess shall be 
included in income. If the net long-term capital gain exceeds the 
net short-term capital loss, 50 percent of the amount of such excess 
is allowable as a deduction from gross income. This deduction is 
given effect on line 9 of Schedule D. 

Limitation on allowable capital losses. — If the sum of all the 
capital losses exceeds the sum of all the capital gains (all such 
gains and losses to be taken into account at 100 percent), then 
such capital losses shall be allowed as a deduction only to the 
extent of (1) current year capital gains plus (2) the smaller of either 
the taxable income of the current year (or adjusted gross income if 
tax table is used) or $1,000. For this purpose taxable income is 
computed without regard to capital gains or losses or the deduction 
for exemptions. The excess of such allowable losses over the sum 
of items (1) and (2) above is called "capital loss carryover." It 
may be carried forward and treated as a short-term capital loss in 
succeeding years. However, the capital loss carryover of each 
year should be kept separate, since the low limits the use of such 
carryover to the five succeeding years. In offsetting your capital 
gain and income of 1958 by prior year loss carryovers, use any 
capital loss carryover from 1953 before using any such carryover 
from 1954 or subsequent years. Any 1953 carryover which cannot 
be used in 1958 must be excluded in determining total loss carry- 
over to 1959 and subsequent years. 

Collapsible corporations. — Gain from the sale or exchange of 
stock in a collapsible corporation is not a capital gain. Section 34 1 . 

"Wash sales" losses. — Losses from the sale or other disposition 
of stocks or securities are not deductible (unless sustained in con- 
nection with the taxpayer's trade or business) if, within 30 days 
before or after the date of sale or other disposition, the taxpayer 
has acquired (by purchase or by an exchange upon which the 
entire amount of gain or loss was recognized by law), or has entered 
into a contract or option to acquire, substantially identical stock 
or securities. 

Losses in transactions between certain persons. — No deduc- 
tion is allowable for losses from sales or exchanges of property 
directly or indirectly between (a) members of a family, (b) a cor- 
poration and on individual (or a fiduciary) owning more than 50 
percent of the corporation's stock (liquidations excepted), (c) a 
grantor and fiduciary of any trust, (d) a fiduciary and a beneficiary 
of the same trust, (e) a fiduciary and a fiduciary or beneficiary of 
another trust created by the same grantor, or (f) an individual and 
a tax-exempt organization controlled by the individual or his 
family. Partners and partnerships see Section 707(b). 

Long-term capital gains from regulated investment com- 
panies. — Include in income as a long-term capital gain the amount 
you are notified on Form 2439 which constitutes your share of the 
undistributed capital gains of a regulated investment company. 
You are entitled to a credit of 25 percent of this amount which should 
be claimed on line 5, column (b), page I, Form 1040. Enter such 
amount in column (b) and write "Credit from regulated investment 
company" in the "Where Employed " column. The remaining 75 
percent should be added to the basis of your stock. Also include in 
income as a long-term capital gain any capital gain dividend which 
is paid to you by such company. 

:E 1958 0-471468 o50— 16— 74552-1 



FACSIMILES OF TAX RETURNS, 1958 



113 



SCHEDULE F 
(Foim 1040) 



U. S. Treasury Department — Internal Revenue Service 

SCHEDULE OF FARM INCOME AND EXPENSES 

(Compute Social Security Self-Employment Tax on page 3) 

Attach this schedule to your Income Tax Return, Form 1040 



1958 



For Calendar Year 1958, or other taxable year beginning 



1958, and ending 



195 



Nome and Address as shown on page 1, Form 1040 



FARM INCOME FOR TAXABLE PERIOD— CASH RECEIPTS AND DISBURSEMENTS METHOD 

(Do not inclnde soles of livestock held for draft, breeding, or dairy purposes; report such sales on Schedule D (Form 1040). 

Report sales of other livestock in the applicable column below.) 



SALES OF LIVESTOCK AND PRODUCE RAISED 


OTHER FARM! NCOME 


Kind 


Quantity 


I. Amount 


Kind Quantity 


2. Amount 


Items 


3. Amount 


Cattle 




$ -.- 


Dairy products. . . 




$ 


Mdse. rec'd for produce 


$ 












Meat products. . . 
Poultry, dressed. . 
Wool 






Breeding fees 

Wood and lumber 








































Agricultural program pay- 
ments 

Patronage dividends, rebates 
or refunds 

Other (specify); 










Sirup and sugar. 
Other (specify): 








Bees 












Grain 












Hay 




























































Fruits and nuts . 
















Total of C 


Jolumns 


, 2, and 3. Ent 


er here and on line 


1 of summary below 


$ 



SALES OF PURCHASED LIVESTOCK AND OTHER PURCHASED ITEMS 






a. Description 


b. Dale acquired 


c. Gross sales price 


i. Cost or other basis 


e. Prolil(orloss) 




$ 


$ 


$ 
































Total (enter on line 2 of summary below) 








$ 



FARM EXPENSES FOR TAXABLE YEAR (See Instructions) 

(Do not include personal or living expenses or expenses not attributable to production of farm Income, such as taxes, insurance, repairs, etc, on you 


r dwelling) 


Items 


1. Amount 


Items 


2. Amount 


Items 


3. Amount 




$ 


Veterinary, medicine . . 


$ 


Freight, trucking 

Automobile upkeep. . . . 


$ 










Seed, plants purchased. 




Storage, warehousing . 










Conservation expenses. 

Other farm expenses 
(specify): 
























Breeding tees 




Utilities 










Rent of farm, pasturage . 
er here and on line 4 of 








Total of Columns 
page 2 (accrua 


1, 2, and 3. Ent 
method) 


summary below (c 


ash method) or line 6, 


$ 



SUMMARY OF INCOME AND DEDUCTIONS— CASH RECEIPTS AND DISBURSEMENTS METHOD 





$ 




4. Farm expenses (from above) 


$ 










2. Profit (or loss) on sale of purchased live- 






6. Other farm deductions (specify): 






3. Gross Profits* 


$ 




7. Total Deductions 


$ 




8. Net farm profit (or loss) (line 3 minus line 7). Enter here, on line 1 1, page 3 of this schedule, and on hne 
9, page 1, Form 1040 


$ 





• Use thia amount for optional method of computing net ( 



ell-employment. (See line 13. page 3.) 



c69— I©— 74fiM-l 



114 



FACSIMILES OF TAX RETURNS, 1958 





DEPRECIATION (Set 


tnstmctiotts) 






Page 2 


1. Kind of property (if buildings, state material 
of which constructed). Exclude land and other 
nondepreciable property 


2. Date acquired 


3. Cost or other basis 


4. Depreciation 
allowed (or allow- 
able) in prior years 


5. Method of comput- 
ing depreciation 


6. Rate (%) 
or life (years) 


7. Depreciation for 
this year 






$ 


$- 






$ 












































































































































































































































































Total (enter on line 5 of summary on page 1 (cash method) or line 7, below (accrual method)) 


$ 



FARM INVENTORY— ACCRUAL METHOD 

(Do not include sales of livestock held far draft, breeding, or daiijr purposes; report such sales on Schedule D (Forni 1040), 

and omit them from ^^On hand ot beginning of year" column) 



Description 
(Kind of livestock, crops, 


On hand at beginning of year Purchased during year 


Raised 
during year 


Consumed or 

lost during 

year 


Sold during year 


On hand at end of year 




Quantity 


Inventory value 


Quantity 


Amount paid 


Quantity 


Quantity 


Quantity 


Amount received 


Quantity 


Inventory value 






$-_ ..._. 




$ 








$ 




1 








































































































































































































Totals 


$ 




$ 








$ 




$ 




(Enter on line 3) 


(Enter on line 4) 


(Enter onlinel(b)) 


(Enleron line 1(a)) 



SUMMARY or INCOME AND DEDUCTIONS— ACCRUAL METHOD 



1(a). Inventory of livestock, crops, and products at end of year. 

(b). Sales of livestock, crops, and products during year 

(c). Other farm income (specify): 



2. Total 

3. Inventory of livestock, crops, and prod- 

ucts at beginning of year 

4. Cost of livestock and products purchased 

during year 

5. Gross profits (line 2 minus the sum of lines 3 and 4)*. 



6. Farm expenses (from page 1) 

7. Depreciation (from above) 

8. Other farm deductions 
(specify): _.._ _. 



Total Deductions . 



10. Net farm profit (or loss) (line 5 minus line 9). Enter here, on line 1 1, page 3 of this schedule, and on line 
9, page 1, Form 1040 



•Use this amount for optional method ol computing net earnings from self-employment. (See line 13 page 3.) 



(■59~I6— 71554-1 



FACSIMILES OF TAX RETURNS, 1958 



115 



Pages 



COMPUTATION OF SOCIAL SECURITY SELF-EMPLOYMENT TAX ON FARM EARNINGS 

(For socicil security) 
(See instructions — Page 4) 

► If you had wages of $4,200 or more which were subject to the deduction for social security, do not fill in this page. 

► Each self-employed person must file a separate schedule. See instructions, page 4, for joint returns and partnerships. 

► If you had net earnings from self-employment from both farm and nonfarm sources, fill in only lines 1 1 and 12 (line 13, if applicable), 

and use separate Schedule C to compute your self-employment tax. Net farm earnings from self-employment should be entered on 
line 28(d) of separate Schedule C (Form 1040). 

NAME OF SELF-EMPLOYED PERSON (as shown on social security card) 



CHOICE OF METHODS. — A farmer must report his net farm earnings for self-employment tax purposes. Net earnings may be com- 
puted under the optional method (line 13, below) by a farmer whose GROSS profits are $1,800 or less, or whose GROSS profits are 
more than $1,800 and NET earnings are less than $1,200. If your GROSS profits from farming are not more than $1,800 and you 
elect to use the optional method, you need not complete lines 11 and 12. 



11. Net farm profit (or loss) from: 

(a) Line 8, page I (cash method), or line 10, page 2 (accrual method) 

(b) Farm partnerships 

12. Net earnings from self -employment from farming. Total of line 11 (a) and (b). Enter here and on line 6 below. 

Computation Under Optional Method 

13. If gross prohts from farming (see note below) are: 

(a) Not more than $1,800, enter two-thirds of the gross profits 1 

(b) More than $1,800 and the amount on line 12 above is less than $1,200, enter $1,200 J 



)ss profitf 
hod), plu 



! the total of the gross profits on line 3, page 1 (cash method), or line 5, page 2 
ihar« of gross profit from farm partnerships as explained on page 4. 



If line 12 (or line 13, if used) is under $400, do not fill in rest of page. 



Computation of Social Security Self -Employment Tax 

14. The largest amount subject to social security self-employment tax is 

($4,800 for years ending offer December 31, 1958) 
Less: Total wages, subject to deduction for social security, paid to you during the tax- 
able year. (For wages reported on Form W-2, see "F. I. C. A. Wages" box.) 

Enter here and on line 7, below 

Balance (line 14 less line 15) 



15, 



16 



4,200 



17. Self-employment income. Enter here your choice of: 

EITHER ( 1 ) the smaller of line 1 2 or 16 OR (2) the smaller of line 1 3 or 1 6. Enter here and on line 8 below . 

18. Self-employment tax — take 3?-^% of the amount on line 17. (You can do this by multiplying the amount 
online 17 by .03375.) Enter this amount here > i on line 15, page 1, Form 1040. 



Important. — The amounts reported on the form below are for your social security account. This account is used in figuring 
any benefits, based on your earnings, payable to you, your dependents, and your survivors. Fill in each item 
accurately and completely, but do not detach. 



SCHEDULE SE (Fonn 1040) 
U. S. Treosiuy Dep<irfancnt 
Inlcraal Revemvc Serrice 



S. REPORT OF SELF-EMPLOYMENT INCOME 

For Crediting to Your Social Security Account 



1958 



Indicate year covered by this return (even though income was received only in part of year): 

I I Calendar year 1958 L1 Other taxable year beginning 1958. ending 

If less than 12 months, was short year due to (a) LH Death, or (b) LJ Change in accounting period, i 
(c) D Other. 



FAIiM ACTIVITIES SUBJECT TO SELF-EMPLOYMENT TAX (Raising livestock, custom harvesting, etc.) 



FARM ADDRESS (Rural Route, Post Office, State) 



SOCIAL SECURITY ACCOUNT 
4 NUMBER OF PERSON NAMED 
IN ITEM 5 BELOW 



PRINT OR TYPE NAME OF SELF-EMPLOYED PERSON AS SHOWN ON SOCIAL SECURITY CARD 



PRINT OR TYPE HOME ADDRESS (Number and Street, or Rural Route) 



(City or Town, Postal Zone Number, State) 



PLEASE DO NOT WRITE IN THIS SPACE 



ENTER AMOUNTS, IF ANY. SHOWN ON 



UNE 12 ABOVE.. $_ 



LINE 13 ABOVE.. $ 



_ ENTER WAGES, IF 
7. ANY, SHOWN ON 
LINE 15 ABOVE. . $ 



„ ENTER AMOUNT 
8. SHOWN ON 

UNE 17 AB O VE. . 

0&9 — 1»— 74M4-I 



I 



116 



FACSIMILES OF TAX RETURNS, 1958 



Page 4 



SOCIAL SECURITY SELF-EMPLOYMENT TAX INSTRUCTIONS 



Individuals deriving income from farming operations are 
subject to self-employment tax. See page 3 for computation of 
earnings from self-employment and self-employment tax. Tfiis 
tax must be paid regardless of age and even though the indi- 
vidual is receiving social security benefits. 

Optional method for computing net earnings from self- 
employment from farnning. — If a farmer's gross income for 
the year from farming is not more than $1,800, he may report 
two-thirds of his gross farm income instead of his actual net 
earnings from farming. If his gross income from farm self-employ- 
ment is more than $1,800 and his actual net earnings from 
farming are less than $1,200, he may report $1,200. For the 
purpose of the optional method, a partner should compute his 
share of gross profits from a farm partnership in accordance 
with the partnership agreement. In the case of guaranteed 
payments, his share is his guaranteed payments plus his share 
of the gross profits after such gross profits are reduced^ by all 
guaranteed payments of the partnership. 

SHARE-FARMING ARRANGEMENTS 

An individual who undertakes to produce a crop or livestock 
on land belonging to another for a proportionate share of the 
crop or livestock produced, or the proceeds thereof, is con- 
sidered to be an independent contractor and a self-employed 
person rather than an employee. His net earnings should be 
reported on Schedule F (Form 1040) for income tax and self- 
employment tax purposes. 

Form rentals. — Rental income from a farm counts for social 
security purposes it the arrangement provides for material 
participation by the landlord and he does participate materially 
in the production of the crop or livestock or in the management 
of the production of the farm products. Such rental income is 
farm earnings and should be reported on page 1 or 2 of this 
schedule. "Material participation" means the taking of an 
important part in the actual production or in the making of 
management decisions. 

MORE THAN ONE TRADE OR BUSINESS 

If an individual is engaged in farming and in one or more 
other trades or businesses, his net earnmgs from self-employment 
are the combined net earnings from self-employment of all his 
trades or businesses. Thus, the loss sustained in one trade or 
business will operate to reduce the income derived from another 
trade or business. In such cases, use both Schedule F (Form 
1040) and Schedule C (Form 1040) to determine net profit from 
the farm and nonfarm activities, respectively. Make the com- 
bined computation of self-employment tax on page 3 of Schedule 
C. Fill in only lines 1 1 through 1 3 on page 3 of Schedule F. 

JOINT RETURNS 

Where husband and wife file a joint income tax return, 
page 3 of this schedule should show the name of the one with 
self-employment income from farming. Where husband and 
wife each had self-employment income, a separate Schedule F, 
or a separate Schedule C, whichever is appropriate, must be 
filed by each. However, the total of the amounts shown as 
profit (or loss) from all businesses should, for income tax pur- 
poses, be reported on line 8 or 9, on page 1, Form 1040, and 
the combined self -employment tax should be entered on line 15, 
page 1, of Form 1040. 

COMMUNITY INCOME 

For the purpose of computing net earnings from self-employ- 
ment (but not for income tax), if any of the income from a trade 
or business is community income, all the income from such 
trade or business is considered the income of the husband unless 
the wile exercises substantially all the management and con- 
trol of the trade or business, in which case all of such income 
is considered the income of the wife. (Also see instructions on 
partnerships below.) 



If separate income tax returns are filed by husband and 
wife, a complete Schedule F or Schedule C, whichever is appro- 
priate, must be attached to the return of the one v/ith self- 
employment income. Community income included on such a 
schedule must, however, be allocated, for income tax purposes 
between the two returns (on line 8 or line 9, page 1, Form 1040) 
on the basis of the community property laws. 

PARTNERSHIPS 

In computing his combined net earnings from self-employment, 
a partner should include his entire share of such earnings from 
a partnership including any guaranteed payments. No part of 
that share may be allocated to the partner's wife (or husband) 
even though the income may, under State law, be community 
income. However, in the case of a husband and wife farm 
partnership, like other partnerships, the distributive share of 
each must be entered as partnership income in Schedule H, 
page 3, of Form 1 040 for income tax purposes, and on line 11 (b) , 
page 3, of separate Schedules F for self-employment tax pur- 
poses. (Use separate Schedule C, page 3, to report nonfarm 
income for social security purposes.) 

Note: If a member of a continuing partnership dies after 
August 28, 1958, a pro rata share of the partnership's ordinary 
income (or loss) for its current year must be included in the 
partner's net earnings from self-employment. The rule may also 
apply for deaths occuriing after 1955 and before August 29, 
1958. In such cases consult your nearest Internal Revenue 
Service office as to how to report. 

EXCLUSIONS FROM SELF-EMPLOYMENT 

In determining the amount of net farm earnings from self- 
employment the following items should be excluded: 

Real estate rentals. — Rentals from real estate, including 
any personal property that is leased with the land. This includes 
rentals received in cash or crop shares. These amounts should 
be reported in Schedule G of Form 1040. See, however, "Farm 
Rentals" under "Share-Farming Arrangements" on this page. 

Property gains and losses. — Gains and losses from the sale, 
exchange, or involuntary conversion of capital assets and 
other property which is not held primarily for sale to customers. 
These amounts should be reported on separate Schedule D. 

Net operating losses. — In determining the net earnings 
from self-employment, no deduction for net operating losses of 
other years shall be allowed. Such deduction should be applied 
as an adjustment of the amount shown on line 11, page 1, 
Form 1040. 

Other items. — ^Any other item of income or expense which 
was included in line 12 and which does not enter into the com- 
putation of net farm earnings from self -employment should be 
eliminated from line 12 and an explanation attached. 

SCHEDULE SE (FORM 1040) 

Schedule SE, which is the lower portion oi page 3 of Sched- 
ule F, provides the Social Security Administration with the in- 
formation on self-employment income necessary for computing 
benefits under the social security program. 

To assure proper credit to your account, enter your name 
and social security account number on Schedule SE (Form 1040) 
exactly as they are shown on your social security card. If you 
do not have a social security account number, you must get one. 
These account numbers are obtainable from any Social Security 
district office. Your local post office will give you the address. 
Do not delay filing your return beyond its due date. 

Regardless of whether joint or separate returns, Form 
1040, are filed by husband and wife, Schedule SE (Form 
1040) must show only the name of the one with self-em- 
ployment income. However, if both had net earnings 
from self-employment, a separate Schedule SE must be 
filed by each. 069—16—74554-1 tpo 19560-471469 



FACSIMILES OF TAX RETURNS, 1958 



117 



INSTRUCTIONS 

FOR 
"SCHEDULE r 
(FORM 1040)" 



ADDITIONAL INCOME TAX INSTRUCTIONS FOR FARMERS 

FOR PREPARING SCHEDULE OF FARM INCOME AND EXPENSES 



1958 



For the assistance of farmers, a separate Schedule F 
(Form 1040) is provided and should be used by all 
farmers for income tax and self employment tax purposes. 
METHOD OF ACCOUNTING 

Farmers may compute their income either on the cash 
receipts and disbursements method or on an accrual 
method, but whichever method is adopted in filing their 
first return must be followed until the consent of the 
Commissioner of Internal Revenue, Washington 25, D. C, 
is received to change the method. 

CASH RECEIPTS AND DISBURSEMENTS METHOD 

A farmer using the cash receipts and disbursements 
method shall include in his gross income for the taxable 
year (1) the amount of cash and the value of merchan- 
dise or other property received from the sale of livestock 
and produce which were raised during the taxable 
year or prior years, (2) the profits received from the sale 
of any livestock and other items which were purchased, 
and (3) gross income received from all other sources. 
Such income should be reported on page I of Schedule F. 
The farm expenses will be the actual amounts paid out 
during the taxable year plus deductions such as depre- 
ciation, depletion, amortization, etc. 
ACCRUAL METHOD 

For a farmer using an accrual method, the gross 
profits are obtained as indicated in summary of income 
and deductions on page 2 of Schedule F. The farm 
expenses will be the actual expenses incurred during 
the year, whether paid or not. 

Farmers who compute income on an accrual method 
and use inventories may value their inventories accord- 
ing to the "farm-price method," in addition to other 
methods, which provides for the valuation of inventories 
at market price less direct cost of disposition. Farmers 
raising livestock may value their inventories of animals 
according to either the "farm-price method" or the 
"unit-hvestock-price method." 

If the use of the "farm-price method" of valuing inven- 
tories for any taxable year involves a change in method 
of valuing inventories from that employed in prior years, 
permission for the change shall first be secured from 
the Commissioner. 

INCOME 

All the farm income from whatever source must be 
reported in Schedule F. Anything of value received 
instead of cash, such as groceries received in exchange 
for produce, must be treated as income to the extent of 
its market value. 

The value of farm produce consumed by the farmer 
and his family need not be reported as income, but 
expenses incurred in raising such produce must not be 
claimed as deductions. 

Recoveries from insurance on growing crops should 
be included in gross income. 

A farmer, who rents all or a part of his crop land on a 
crop share basis, under a bona fide rental agreement, 
and who receives crop shares as rent, shall report the 
crop shares as rental income only for the year in which 
they are reduced to money, or the equivalent of money. 

If a farmer pledges commodities as security for a loan 
from the Commodity Credit Corporation, income is not 



considered received until the pledged commodities are 
sold. However, a farmer may elect to include in gross 
income amounts received during the year as loans from 
the Corporation. If he does so elect he should file with 
his return a statement showing details of such loans, and 
he must continue to report similar loans as income until 
he receives permission from the Commissioner to change 
his method of accounting. 

Report gains and losses from sales or exchanges of 
capital assets and other property in separate Schedule D 
(Form 1040). 

The term "farm" embraces the farm in the ordinarily 
accepted sense, and includes stock, dairy, poultry, fruit, 
truck farms, and all land used for farming operations. 
A person cultivating or operating a farm for recreation 
or pleasure, the result of which is a continual loss from 
year to year, is not regarded as a farmer. 

Patronage dividends received from cooperatives in 
cash or its equivalent are to be included in farm income 
to the extent of their fair market value in the year re- 
ceived. However, such dividends in the form of certifi- 
cates of indebtedness, revolving fund certificates, stock 
certificates, etc., which have no fair market value, and 
over which you have no control either as to the amount 
or time of receipt, are to be included in income only in the 
year cash or other property becomes subject to payment 
on demand, regardless of your accounting method. 
Dividends received on purchases of capital assets or 
depreciable property used in farming are not included 
in income, but the purchase price of such items must be 
reduced accordingly. Dividends you receive on non- 
business purchases are not included in income. 

The following situations may be treated as involun- 
tary conversions provided you purchase similar property 
within the replacement period (generally within one 
year after the year in which you first realize gain): (1) 
livestock which are destroyed by or on account of dis- 
ease, or sold or exchanged because of disease, (2) land 
lying within an irrigation project which is sold or dis- 
posed of to meet acreage limitations under Federal rec- 
lamation laws, and (3) livestock (other than poultry) 
held for draft, breeding, or dairy purposes which are 
sold or exchanged solely on account of drought in ex- 
cess of the number which would be sold under usual 
business practices. 

EXPENSES AND OTHER DEDUCTIONS 

In general, a farmer who operates a farm for profit 
is entitled to deduct from gross income as necessary 
expenses all amounts actually expended in carrying on 
the business of farming, except those which represent 
capital investment. The following is a list of such 
expenses (taken from the classification appearing on 
page 1 of Schedule F, though any other equally descrip- 
tive classification may be used): 

Labor hired. - Amounts paid for regular farm labor, 
piecework, contract labor, and other forms of hired 
labor. Do not deduct the value of your own labor or 
that of your wife or family. Only that part o* the board 
which is purchased for hired labor should be deducted. 
The value of products furnished by the farm and used in 

c59— 16— 74553-1 



118 



FACSIMILES OF TAX RETURNS. 1958 



the board of hired labor is not deductible. However, 
the cost of rations purchased for laborers or share- 
croppers is deductible. Do not deduct amounts paid to 
persons engaged in household work except to the extent 
that the services of such persons are used in boarding 
and otherwise caring for farm laborers. Amounts paid 
for services of such employees engaged in caring for the 
farmer's own household are not deductible. 

Feed purchased.— Cost of grain, hay, silage, mill 
feeds, concentrates, and roughages purchased, and 
amounts paid for grinding, mixing, and processing of feed. 

Machine hire. — Amounts paid for threshing, combin- 
ing, silo filling, baling, ginning, and other machine hire. 

Supplies purchased.- Cost of twine, spray materials, 
poisons, disinfectants, cans, barrels, baskets, egg cases, 
bags, and other similar farm supplies purchased. 

Cost of repairs and maintenance. Amounts ex- 
pended for repairs and maintenance of farm buildings 
(except your dwelling), offences, drains, and other farm 
improvements, and for repairs and maintenance of farm 
machinery and equipment; cost of ordinary tools of short 
life or small cost such as shovels, rakes, etc. Amounts 
paid for replacements of, or additions to, farm machin- 
ery, farm buildings, or other farm equipment of a 
permanent nature are not deductible. 

Fertilizers and lime. — Cost of commercial fertilizers, 
lime, and manure purchased during the year, the benefit 
of which is of short duration. 

Taxes. — State and local taxes. Do not deduct Fed- 
eral income taxes; estate, inheritance, legacy, succession, 
and gift taxes; nor taxes assessed for any improvement 
or betterment tending to increase the value of the prop- 
erty assessed. Do not deduct taxes on your dwelling or 
household property and other taxes not related to the 
business of farming. 

Insurance.— Cost of all insurance on farm buildings 
(except your dwelling) and on improvements, equipment, 
crops, and livestock. 

Farm Interest. — Interest paid on farm mortgages and 
other obligations incurred in carrying on farming. 

Utilities. — The farm share of the expenditures for 
water rent, electricty, telephone, etc. Do not deduct 
personal expenses. 

Rent of farm, part of farm, or pasturage. — Rent 
paid in cash. A tenant farmer paying rent to his land- 
lord in the form of crops raised on the farm (under a 
crop share agreement) may not deduct as rent the value 
of the crop given to the landlord, but the tenant may 
deduct all amounts paid by him in raising the crop. 

Automobile upkeep.-- For automobiles used exclu- 
sively in farm operations, all expenses of operation, 
repair, and depreciation. For automobiles used both 
for farm and personal transportation, only that part of the 
expense which applies to the farm use may be deducted. 

Conservation expenses. — You may deduct certain 
expenditures made by you (including any amount paid 
on any assessment levied by a soil or water conservation 
or drainage district to defray expenditures made by such 
district) for soil or water conservation and the preven- 
tion of erosion if such expenditures are in respect of 
land used by you in your business of farming. 

The term "expenditures" for this purpose means ex- 
penditures (a) for the treatment or moving of earth, includ- 
ing but not limited to, leveling, grading, terracing, and 
contour furrowing; (b) the construction, control, and pro- 
tection of diversion channels, drainage ditches, earthen 
dams, watercourses, outlets, and ponds; (c) the eradica- 
tion of brush; and (d) the planting of windbreaks. You 



may not deduct expenditures for the construction, instal- 
lation, or improvement of facilities which are subject to 
the allowance for depreciation or expenses which are 
deductible elsewhere. 

The allowable deduction for any one year may not 
exceed 25 percent of your gross income from farming, 
but any excess may be carried over to succeeding years 
with the same limit applying to those years. The phrase 
"gross income from farming" means the gross income of 
the farmer from the business of producing crops, fruits 
or other agricultural products or raising livestock; it 
includes such income from a farm other than the one on 
which expenditures for soil and water conservation, or for 
the prevention of erosion, were made. 

To claim a deduction for these expenditures you must 
(a) elect to do so for the first taxable year which begins 
after December 31, 1953, and ends after August 16, 
1954, for which such expenditures are paid by claiming 
such deduction on your return; or, (b) secure consent from 
the District Director of Internal Revenue for any other 
year. Once you have elected to do so, you must con- 
tinue to treat such expenditures as deductions in all 
future taxable years unless you secure consent from the 
District Director to change. 

Other farm expenses. Fees paid for advertising 
farm products; expenditures for stamps, stationery, ac- 
count books, and other office supplies purchased for farm 
use; expenditures for travel in connection with the farm 
and similar expenditures. Amounts expended for pur- 
chase of automobiles, farm machinery, farm buildings, 
or other farm equipment of a permanent nature are not 
deductible. 

Depreciation. Allowance for depreciation of build- 
ings, improvements, machinery, or other farm equipment 
of a permanent nature. Similar assets may be grouped 
together as one item for reporting purposes in the depre- 
ciation schedule on Schedule F. In computing depreci- 
ation do not include the value of farm land or land on 
which farm buildings are located. Do not deduct repairs 
or depreciation on the dwelling you occupy or on your 
personal or household equipment. Do not claim depre- 
ciation on livestock or any other property included in your 
inventory. Depreciation, however, may be claimed on 
livestock acquired for work, breeding, or dairy purposes 
which are not included in your inventory of livestock 
purchased or raised for sale. See the instructions for 
Form 1040 for methods of computing depreciation. 

Losses. — Losses of farm buildings, machinery, and 
other farm property not included in your inventory, to 
the extent not compensated by insurance or otherwise. 
Losses of property included in your inventory are taken 
care of by the reduced amount of the inventory at the 
close of the year. The total loss of a prospective crop 
by frost, storm, flood, or fire, is not deductible. When 
using the cash method, the value of animals raised 
by you and lost by death is not deductible, while m 
the case of animals purchased and lost by death, the 
cost less depreciation allowed or allowable is deductible 
to the extent the loss is not compensated by insurance or 
otherwise. Do not deduct personal losses. 

Amortization. If you elect the deduction with respect 
to the amortization of the adjusted basis of a grain 
storage facility, a statement of the pertinent facts should 
be filed with your return, (See section 169 of the 
Internal Revenue Code of ] 954.) 

Net operating loss deduction. Any net operating 
loss deduction should be applied as an adjustment of the 
amount entered on line 11, page 1, Form 1040. See 
instructions for Form 1040 and submit computation. 



JOVERNMENT PRINTING OFFICE : I95S O ■ 



FACSIMILES OF TAX RETURNS, 1958 



119 



Form 1040A U. S. INDIVIDUAL INCOME TAX RETURN (Less than $10,000 lotal income) 



1958 



Please 
print - 



I. Namc(l(fh.i ISO io.nl 



ol husband end v„lc, use I.nl 



ind m.ddle .n.l.als ol bolh) 



Home oddrns (Number and s 



5 WAGES SHOWN ON FORMS W-5 AND OTHER INCOME INCOME TAX WITHHELD EMPLOYER'S NAME. Whct» employed. Write (W) before name o( each o( wife's employcrj 



2.You.SocialS«unlyNo 



Wrfc's Social Security No. 



3. Do you owe any Federal lax for yeais before 1958? □ Yes □ No 

4. Is your wife (husband) matin3 a separate return? Q Yes [""] No 

l( "yes," write 
her (his) nome 



II lolol income (item 9) is 
$10,000 or more, OR il other 
income (item 6) ii o«er SSOO, 
you must use Form 1040. 



6 OTHER 
INCOME 



o.Yo 



9 TOTAL INCOME- 



8. If you had an expense allow< 

8 and checl< here D if oppropfic 



charsed cKpenses to your employer, see instruction 



from Tax Table Of from tax compulation scfiedule ^ 



1 1. If ttem 10 IS larger tfian item 7, enter balance due 



12. If. 



7 IS larger than item 10, enter refund 
DEPAFTTMENT 



Enclose Forms W-2, Copy B. If your income was $5,000 or more, you must compute your 
tax. However, if your income was less than $5,000, you may hove the Internal Revenue 
Service compute your tax by omitting items 10, 1 1, and 12. U you compuU your own tax, 
^ poy fco/once {item 77) m full with return to your District Director. 
List your exemptions and SIGN on other side. 



PLEASE DO NOT BEND, PIN OR TEAR THIS CARD 



13. Exefflptions for yourself and wife 


Check blocks whrch apply. Check for w,f. ( W "=3"'°' *600 exemption □ Yourself □ Wife \ Enter numbo 

,f she had no income OR rf hei income is (b) Additional $600 exemption if 65 or o.er at end of 1 958-. □ Yoursel Q Wife ( <>' "!'T'?'" 
included in this return. ( (c) Additional $600 exemption ,( blind at end of 1958 □ Yourself □ Wife ) ' > 




14. Exemptions for your children and other dependents (List below) 




NAME 

> Enter figure 1 in the last column to light 

for each name listed 

(Gi.e add.ess ,( diKerenl l,om you.s) 


Relationship 


ANSWER ONL 

Monihi lived ,n your 
home If born Ol 

died during year also 
wrile -B" or "D" 


t FOR DEPENOEN 

Did d^pendenl have 
gross income of $600 


TS OTHER THAN YO 

Amount YOU furnished 
(oi dependent's sup- 
port. Ill 00% write 
"ALL" 


UR CHILDREN 

Amount furnished by 

OTHERS including 

dependent 












$ 


$ 


































































SIGN 


1 declare under the penalties of periury that to the best of my l<nowledge and belief this is a true, correct, and complete return. 1 

1 


HERE 


(You. signature) (Dile) (l( ihii ii > joint return, wile'i signiture) (D.le) 
• If this IS o loml lelurn, BOTH HUSBAND AND WIFE MUST SIGN e»en if only one has income / 



120 



FACSIMILES OF TAX RETURNS, 1958 



For Employees 

WHO EARNED LESS THAN $10,000 IN 1958 

The enclosed card. Form 1040A, offers a simple way for employees receiv- 
ing less than $10,000 total income to file their 1958 U. S. income tax returns. 

To use CARD (Form 1040 A) FOLLOW THESE SIMPLE STEPS 

® 







Read instructions below. See "Who May Use Form 
1040A." If you may not use Form 1040A, file Form 
1040. 

(2) Fill out the copy on page 3. 

^5) Transfer answers from the copy to the card. Keep 
^"^ the copy for your records. If your name and address 



are already printed on the card form, please use it as 
your return and correct the name and address, if 
necessary. It is already punched for high-speed 
machine handling. 

(2) Sign the card and mail it together with your With- 
holding Statements (Forms W-2, Copy B) to your 
District Director of Internal Revenue. 



GENERAL INSTRUCTIONS 



WHO MUST FILE A TAX RETURN Every citizen or 

resident of the United States under 65 who had $600 or 
more gross income; if 65 or over, $1,200 or more. 

WHO MAY USE FORM 1040A If your gross income was 

less than $10,000 and consisted entirely of wages reported 
on Withholding Statements (Forms W-2) and not more 
than $200 total of dividends, interest, and other wages not 
subject to withholding, you may use the card form. A 
husband and wife may file a joint return if their combined 
incomes do not exceed these limits. 

WHO MAY NOT USE FORM 1040A.— File Form 1040 
instead of Form 1040A if — 

(1) you had income from sources other than or in 
amoimts larger than those stated above, 

(2) either husband or wife itemizes deductions, 

(3 ) you claim the tax status of head of household or sur- 
viving husband or wife, 

(4) you claim dividends received credit or retirement 
income credit, 

(5) you claim an exclusion for "Sick Pay" paid directly 
to you by your employer and this amount is in- 
cluded in the total wages shown on your Form W-2, 

(6) you claim deductions for travel, transportation, or 
"outside salesmen" expense (however, see instruc- 
tion 8, page 2), 

(7) you claim credit for payments on estimated tax or 
an overpayment from 1957. 

WHEN TO FILE.^Please file as early as possible on or 
after January 1, 1959, but not later than April 15, 1959. 

WHERE TO FILE.— With the District Director of Internal 
Revenue for your district. 

WHERE TO GET FORMS.— If you need a Form 1040, you 
can get one from any Internal Revenue office, and from 
most banks and post offices. Your employer will furnish 
you with a Withholding Statement (Form W-2). 

HOW TO PAY. — Checks or money orders should be made 
payable to "Internal Revenue Service." You need not pay 
a balance of tax due of less than $1.00, and a refund of less 
than $1.00 will not be made unless you apply for it. 

o67— 16--74366-1 



SIGNATURE. — You have not filed a valid return unless 
you sign it. Both husband and wife must sign a joint 
return. 

COMPUTATION OF TAX ON FORM 1040A: 

(1) It your income was less fhan $5,000. — You may 

figure your own tax from the Tax Table on page 4, or you 
may have the Internal Revenue Service do it for you. 

The Tax Table allows about 10% of your income as de- 
ductions which include charitable contributions, interest, 
taxes, losses, medical expenses, child care expenses, and 
certain miscellaneous deductions. If your deductions ex- 
ceed 10% of your income, it will be to your advantage to 
use Form 1040 and itemize them. 

(2) If your income was $5,000 or more and less fhan 
$10,000. — You must use the standard deduction and com- 
pute your own tax. A tax computation schedule is pro- 
vided on page 3 to make this computation. 

MARRIED COUPLE: 

(1) How fo compufe tax. — A husband and wife may file 
a joint return even though one had no income. To assure 
any benefits of the spht-income provisions, they nuist file a 
joint return. Both husband and wife must sign a joint 
return. If your income was under $5,000 and you choose 
to have the Internal Revenue Service figure your tax, it 
will be computed on the combined incomes or on the 
separate incomes, whichever results in the smaller tax or 
larger refund. If you figure your own tax, be sure to 
make both computations and enter the smaller tax or 
larger refund on your return. 

(2) How to prepare a joint return. — In a joint return 
you must include all income of both husband and wife. 
In the return heading, list both names (for example: 
"John F. and Mary L. Doe"). Both must sign the 
return. A joint return may not be filed if either husband 
or wife was a nonresident alien at any time during the 
taxable year. 

(3) How to prepare a separate return. — In a separate 
return each must report his or her separate income and 
fill in a separate form. The "split income" provisions of 
the Federal tax law do not apply to separate returns of 
husband and wife. 

Instructions I040A (1958) 



FACSIMILES OF TAX RETURNS, 1958 

INSTRUCTIONS FOR PREPARING FRONT OF FORM 1040A 



121 



® 



If you are married and are filing a joint return as 
husband and wife, be sure to enter the first names and 

middle initials of yourself and your wife. For example: 

John F. and Mary L. Doe. 

(^ Enter your social security number and your wife's 
^^^ social security number, if any, even though she files a 
separate return. 

(^ (?) Answer questions 3 and 4. 

f?) Fill in the information from each of your 1958 With- 
^^ holding Statements, Forms W-2. If both hvisband 
and wife had wages, write "W" before name of each of 
wife's employers. If you had more than three employers, 
list the information on a separate statement. If you have 
lost any Withholding Statements, ask your employer for 
a new statement. If you cannot furnish Withholding 
Statements, attach an explanation. 

TWO OR MORE EMPLOYERS.— If either you or your wife 
worked for two or more employers and they withheld a 
total of more than S94.50 of social security (F. I. C. A.) tax 
from your wages, you may claim the excess as a credit 
against your income tax. For a joint return, figure the 
credit separately for husband and wife. To claim the 
credit: 

a. Add up the social security (F. I. C. A.) tax withheld by all your 
employers from your wages in 1958. 

b. Subtract S94.50. 

c. Enter the balance in the "Income Tax Vithheld" column of item 5 
and write "F. I. C. A. tax" in the "Where Employed" column. 

(£) Enter all other taxable income from dividends, in- 
^"^ terest and wages not subject to withholding. Exclude 
SjO of dividends received from domestic corporations. 
This exclusion does not apply to so-called dividends re- 
ceived from mutual savings banks or savings (building) 
and loan associations on deposits or withdrawable accounts. 
If a joint return is filed and both husband and wife had 
dividend income, each is entitled at most to a S50 exclusion 
and one may not use any portion of the S50 exclusion not 
used by the other. For example, if the husband had $200 
in dividends, and the wife had $20, only $70 may be ex- 



cluded on a joint return. If item 6 exceeds $200, you must 
file a Form 1040. 



(7) 



Enter total of income tax withheld and excess social 
security (F. I. C. A.) tax credit, if any. 

(D REIMBURSED EMPLOYEE EXPENSES 

If you account to your employer for business ex- 
penses (or when you travel on business he gives you a flat 
allowance for subsistence and mileage of not more than 
$15.00 per day and 12^4 cents per mile), and he pays 
for them (either by advances or reimbursements or by 
allowing you to use a charge accoimt), you may file Form 
1040A without showing these amounts by simply checking 
the box in item 8 [7] on the front of Form 1040A. How- 
ever, if your employer's payments are more than your 
expenses, you may not use Form 1040A; you must use 
Form 1040. 



Enter total of wages and other income. 



(D 

(iD ^D (it) Computation of tax liability. 

a. If your income was /ess fhan $5,000. — You may 

figure your own tax from the Tax Table on page 4, or you 
may have the Internal Revenue Service do it for you. If 
you figure your own tax, complete items 10, and II or 12. 
If you have the Service figure your tax, you will be sent a 
bill for the balance due or a check for the refund. 

b. If your income was $5,000 or more and /ess fhan 
$10,000. — You must compute your own tax and use the 
standard deduction of 10%. (If your itemized deductions 
are in excess of 10% of your total income, it will be to 
your advantage to use Form 1040.) A tax computation 
schedule is provided on page 3 to figure your tax. 

Enter the tax liability from line 6 of the tax computa- 
tion schedule as item 10 of Form 1040A. Keep the tax 
computation schedule for your records; do not attach it to 
your return. The Internal Revenue Service will verify 
the tax computation and adjust for any errors. 

Any balance of tax shown to be due on item 11 must be 
paid in full when you file your return if it amounts to SI. 00 
or more. 



INSTRUCTIONS FOR PREPARING BACK OF FORM 1040A 



(J3^ Fill in this item to receive credit for your exemptions 
^"^ and for those of your wife. Age and blindness are 
determined as of December 31, 1958. 

Marital Status. — If married at the close of your tax- 
able year, you are considered married for the entire year. 
If divorced or legally separated on or before the close of 
your year, you are considered single for the entire year. If 
your wife or husband died during the year, you are consid- 
ered married for the entire year, and may file a joint 
return. 

(^4^ Fill in this schedule to receive credit for exemptions 
^"^ for your children, stepchildren, and other dependents. 
Each dependent must meet all of the following tests: 

a. Received more than one-half of his or her support from you (or 
from wife or husband if a joint return is filed). 

b. Received less than 8600 gross income. (This test does not apply 
to your cliildren or stepchildren who are under 19 or who are students 
for 5 calendar months of the year.) 

c. Did not file a joint return with her husband (or his wife). 



d. Was either a citizen or resident of the United States or a resident 
of Canada, Mexico, the Republic of Panama, or the Canal Zone. 
(This does not apply to an alien child legally adopted by and living 
with a United States citizen abroad.) 

e. EITHER (1) for the entire year 1958 had your home as his prin- 
cipal place of abode and was a member of your household ; OR ( 2 ) was 
related to you (or to husband or wife if a joint return is filed) in one 
of the following ways: 

Child Sister Mother-in-law The following if 

Stepchild Grandchild Father-in-law related by blood: 

Mother Stepbrother Brother-in-law Uncle 

Father Stepsister Sister-in-law Aunt 

Grandparent Stepmother Son-in-law Nephew 

Brother Stepfather Daughter-in-law Niece 

BIRTH OR DEATH OF DEPENDENT.— You can claim a 
full S600 exemption for a dependent who was born or died 
during the year if the tests for claiming an exemption for 
such dependent are met for the part of the year during 
which he was alive. 057-16-74356-1 



122 



FACSIMILES OF TAX RETURNS, 1958 



Form 1040A 



U. S. INDIVIDUAL IKCOME TAX RETURN (Less than $10,000 total income) 



1958 



Please (1) Name (II .his .s <= ioin. rclurr 

print — ^ 



o! husband and wife, 



®- 



■(2)^. 



Social Security No. 



Wife's Social Security No. 



Home address (Numbei 



3 J Do you owe any Federal lax (or years before I958?___ □ Yes D No 

^ J Is your wife (fiusbond) making a separate return? lJ Yes lJ No 



5. WAGES 5HOWN ON FORMS W-2 AND OTHER INCOME 



INCOME TAX WITHHELD 



EMPLOYERS NAME. Where employed. Write (W) beloi 



of each of wife's employers 



If total iacome (item 9) is 
110,000 or more, OR if other 
income (item 6) is over S200, 
you must use Form 1040. 



6 OTHER/- « 

incomev. u 



You 



9. TOTAL INCOMEl 



m 



®'° 



I 

1 0. Enter tax From Tax Table or from tax computation sch edule M Q 

11. If item 10 is larger than item 7, enter balance due-Mi j*^ 

12. If item '7 is larger than ite m 10, enter refund -( J2 ) > 



jif you had an expense allowance or charged expenses to your employer, see instruction 
_y 8 and check here I I if appropriate. 

Enclose Forms W-2, Copy B. If your income was $5,000 or more, you must compute your 
tax. However, if your income was less than $5,000, you may have the Internal Revenue 
Service cpmpute your tax by omitting items tO, 1 1, and 12. // you computeyour own tax, 
•^ pay balance {item 77) in full with return to your District Director. 
List your exemptions and SIGN on other side. 



PLEASE DO NOT BEND, PIN OR TEAR THIS CARD 



FRONT 



R C©FY=KEEP FOE YOUR RECORDS 



^ BACK 



(]\) Exemptions for yourself and wife 


Check blocks which apply. Check tor w.fc ( '•"^ ^'^"^'" ^''°° "^-"P'"" D Yourself Q \ 

If she had no income OR if her income is (b) Additional $600 exemption if 65 or over at end of I958_. □ Yourself □ \ 
included in this return. (c) Additional $600 exemption if blind at end of 1958 Q Yourself □ \ 


'V'ife \ Enter number 
iVife (■ °' exemptions 
I checked 






(14) Exemptions for your children and other dependents (List below) 






NAME 

> Enter figure 1 In the last column to rieht 

for eacli name listed 

(Give oddress i( different from yours) 


Relationship 


ANSWER ONL^ 

Months lived in yoor 

home. If born or 
dieid during year also 


f FOR DEPENDEN 

Did dependent have 
gross income o( $600 


TS OTHER THAN YOUR CHILDREN 

Amount YOU furnished . , , , , , ,. 

, J J ,. Amount lurnistied by 

tor dependent s sup- nTHFP^ i.,^l,,J;„« 

poit. 1(100% write UIHtKb includinj 

•■ALL" dependent 


•* 
•* 
•* 










$ 


S 






























































15. Enter total number of exemptions listed in items 13 an 








SIGN 


1 declare under the penalties of perjury that to the best of my knowledge and belief this is a true, correct, and complete retu.n. 


HERE 


(Your jignthire) (Dale) (11 this is » joint retiim, wife's (ignilure) (Dale) 
• If this is a joint return, BOTH HUSBAND AND WIFE MUST SIGN even If only one has income. 



TAX COMPUTATION SCHEDULE [U se only ij total income, item 9 oj Form 1040 A, is $5,000 or more) 

1. Enter total income from item 9 of Form 1040A $ 

2. A married person filing a separate return enter $500; all others enter 10 percent of line 1 

3. Balance (line 1 less line 2) 

4. Multiply $600 by total number of exemptions claimed in item 15 of Form 1040A 

5. Taxable income (line 3 less line 4) 

6. Tax on amount on line 5. Use appropriate tax rate schedide below. Enter bere and as item 10 
of Form 1040A (Do not attach this schedule to Form 1040A) 



If you are a single faxp< 
separate return 
If llie amount on line 5 is: 
Over But not over 

$0 $2,000 

$2,000 !t4.000-_. 


lyer or o married taxpayer filing a 
use this tax rate schedule 

Enter on line 6: 

20% of the amoinit on line 5 
$400, plus 22% of exeess over $2,000 
$840, plus 26% of excess over $4,000 
$1,.360, plus 30%! of excess over $6,000 
$1,960, plus 34% of excess over $8,000 


If you are married taxf 

If the amount on line 5 is 
Over But not over 

$0 $4,000 

$4,000 $8,000- 

$8,000 $9,999.99 


>ayers fifinj a joint return, use this tax 
rate schedule 

Enter on line 6: 

.. 20% of the amount on line 5 


S4,000 


$6,000 


$6,000 
58,000 


$8,000 

$9,999.99 


.. $800, plus 22% of excess over $4,000 
... $1,680, plus 26%) of excess over $8,000 



c57— 16— 74366-1 



FACSIMILES OF TAX RETURNS. 1958 



123 



PACE 4 TAX TABLE FOR INCOMES UNDER $5,000 

If your total income (item 9 on your return) is $5,000 or more, use Tax Computation Schedule on page 3 instead of this Tax Table 



To find your tax read down income columns until you find the line covering the total income shown as item 9. Then read across 
to appropriate column headed by number corresponding to number of exemptions claimed on item 1 5. Enter tax as item 1 0. 



$0 
675 
700 
725 
750 
775 
800 
825 
850 
875 
900 
925 
950 
975 
000 
025 
050 
075 
100 
125 
150 
175 
200 
225 
250 
275 
300 
325 
350 
375 
400 
425 
450 
475 
500 
525 
550 
575 
600 
625 
650 
675 
700 
725 
750 
775 
800 
825 
850 
875 
900 
925 
950 
975 
000 
025 
050 
075 
100 
125 
150 
175 
200 
225 
250 
275 
300 



$675 
700 
725 
750 
775 
800 
825 
850 
875 
900 
925 
950 
975 
1,000 



$0 


$0 


4 





8 





13 





17 





22 





26 





?.l 





35 





40 





44 





49 





53 





58 





62 





67 





71 





76 





80 





85 





89 





94 





98 





103 





107 





112 





116 





121 


1 


125 


5 


130 


10 


134 


14 


139 


19 


143 


23 


148 


28 


152 


32 


157 


37 


161 


41 


166 


46 


170 


50 


175 


55 


179 


59 


184 


64 


188 


68 


193 


73 


197 


77 


202 


82 


206 


86 


211 


91 


215 


95 


220 


100 


224 


104 


229 


109 


233 


113 


238 


118 


242 


122 


247 


127 


251 


131 


256 


136 


260 


140 


265 


145 


269 


149 


274 


154 


278 


158 


2S3 


163 


287 


167 


292 


172 


296 


176 



J2, 325 
2,350 
2,375 
2,400 
2,425 
2,450 
2,475 
2,500 
2,525 
2,550 
2,575 
2,600 
2,625 
2,650 
2,675 
2,700 
2,725 
2,750 
2,775 
2,800 
2,825 
2,850 
2,875 
2,900 
2,925 
2,950 
2,975 
3,000 
3,050 
3, 100 

3, 150 
3,200 
3,250 
3,300 
3,350 
3,400 
3,450 
3,500 
3,550 
3,600 
3,650 
3,700 
3,750 
3,800 
3,850 
3,900 
3,950 
4,000 
4,050 

4, 100 
4, 150 
4,200 
4,250 
4,300 
4,350 
4,400 
4,450 
4,500 
4, 550 
4,600 
4, 650 
4,700 
4,750 
4,800 
4,850 
4,900 
4.950 



$2, 350 
2,375 
2,400 
2,425 
2,450 
2,475 
2,500 
2,525 
2, 550 
2,575 
2,600 
2,625 
2,650 
2,675 
2,700 
2,725 

2, 750 
2,775 
2,800 
2,825 
2,850 
2,875 
2,900 
2,925 
2,950 
2,975 
3,000 
3,050 

3, 100 
3, 150 
3,200 
3,250 
3,300 
3,350 
3,400 
3,450 
3,500 

3, 550 
3,600 
3,650 
3,700 
3,750 
3,800 
3,850 
3,900 
3,950 
4,000 
4,050 

4, 100 
4, 150 
4, 200 
4,250 
4,300 
4,350 
4,400 
4,450 
4, 500 
4,550 
4,600 
4, 650 
4,700 
4,750 
4,800 
4,850 
4,900 
4,950 
5,000 



And the number of exemptions is— 



person 
filing 
sepa- 
rately 



And yo 
Single or 
a married 
person 
filing 
sepa- 
rately 


A 

married 
couple 
filing 
jointly 


3 
And you are- 
Single or ; ^ 

"""8 : iZg 

r^f^efy i """^'^ 


4 


5 


. 6 



If 8 or 
more 
there 
i$ no 









Your 


tax is— 








$301 


$181 


$181 


$61 


$61 


$0 


$0 


$0 


305 


185 


185 


65 


65 











310 


190 


190 


70 


70 











314 


194 


194 


74 


74 











319 


199 


199 


79 


79 











323 


203 


203 


83 


83 











328 


208 


208 


88 


88 











332 


212 


212 


92 


92 











337 


217 


217 


97 


97 











341 


221 


221 


101 


101 











346 


226 


226 


106 


106 











350 


230 


230 


110 


110 











355 


235 


235 


115 


115 











359 


239 


239 


119 


119 











364 


244 


244 


124 


124 


4 








368 


248 


248 


128 


128 


8 








373 


253 


253 


133 


133 


13 








377 


257 


257 


137 


137 


17 








382 


262 


262 


142 


142 


22 








386 


266 


266 


146 


146 


26 








391 


271 


271 


151 


151 


31 








395 


275 


275 


155 


155 


35 








400 


280 


280 


160 


160 


40 








405 


284 


284 


164 


164 


44 








410 


289 


289 


169 


169 


49 








415 


293 


293 


173 


173 


53 








420 


298 


298 


178 


178 


58 








427 


305 


305 


185 


185 


65 








437 


314 


314 


194 


194 


74 








447 


323 


323 


203 


203 


83 








457 


332 


332 


212 


212 


92 








467 


341 


341 


221 


221 


101 








476 


350 


350 


230 


230 


110 








486 


359 


359 


239 


239 


119 








496 


368 


368 


248 


248 


128 


8 





506 


377 


377 


257 


257 


137 


17 





516 


386 


386 


266 


266 


146 


26 





526 


395 


395 


275 


275 


155 


35 





536 


404 


404 


284 


284 


164 


44 





546 


414 


413 


293 


293 


173 


53 





550 


424 


422 


302 


302 


182 


62 





566 


434 


431 


311 


311 


191 


71 





575 


443 


440 


320 


320 


200 


80 





585 


453 


449 


329 


329 


209 


89 





595 


463 


458 


338 


338 


218 


98 





605 


473 


467 


347 


347 


227 


107 





615 


483 


476 


356 


356 


236 


116 





625 


493 


485 


365 


365 


245 


125 


5 


635 


503 


494 


374 


374 


254 


134 


14 


645 


513 


503 


383 


383 


263 


143 


23 


655 


523 


512 


392 


392 


272 


152 


32 


665 


533 


521 


401 


401 


281 


161 


41 


674 


542 


530 


410 


410 


290 


170 


50 


684 


552 


539 


420 


419 


299 


179 


59 


694 


562 


548 


430 


428 


308 


188 


68 


704 


572 


557 


440 


437 


317 


197 


77 


714 


582 


566 


450 


446 


326 


206 


86 


724 


592 


575 


400 


455 


335 


215 


95 


734 


602 


584 


470 


464 


344 


224 


104 


744 


612 


593 


480 


473 


353 


233 


113 


754 


622 


602 


490 


■182 


302 


242 


122 


764 


632 


611 


500 


491 


371 


251 


131 


773 


641 


620 


509 


500 


380 


260 


140 


783 


651 


629 


519 


509 


389 


269 


149 


793 


661 


638 


529 


518 


398 


278 


158 


803 


671 


647 


539 


527 


407 


287 


167 


813 


681 


656 


549 


536 


416 


296 


176 



INDEX 



[Asterisk (*) indicates new items] 



Accounting period 

Accumulation distribution from a complex trust.. 
Additional exemption allowances for age and 

blindness 

Additional first year depreciation 

Adjusted gross deficit 22 , 

Adjusted gross income 3, 27, 29, 32, 53, 

Basis for classifying data 

Classified by: 

Form of deduction 15, 28, 29, 42 

Marital status 8, 12, 36, 40, 50, 51 

Sources 18-21, 28, 32, 66, 

States and Territories 65 

Types of tax 18, 52, 64, 

Computation 

Cumulated 

Form 1040A 

Age and blindness, exemptions for. (See Statis- 
tics of Income- 1957 , Individual Income Tax 
Returns. ) 
Age, blindness and dependents other than chil 

dren, exemptions for 

Age, exemption for. (See Stat ist ics of Income- 

1956, Individual Income Tax Returns .) 
Allowance of exemption for an alien adopted 
child living with a U. S. citizen residing 

abroad 

Alternative tax 18, 20, 23, 50. 

Amended returns 

Annuities and pensions. (See Pensions and 

annuities. ) 
Artistic works and inventions, income attribut- 
able to 

Audit revisions not tabulated 

Average income tax 



B 
Back pay 21 

Business net profit or net loss... 3, 13, 14, 19, 28-30, 
34, 38, 45, 66, 72, 74, 76 



C 

Calendar year returns 14 

Capital gains and losses: 

Analysis of data 5, 6 

Computation of: 

Capital loss carryover 19, 20, 62 

Capital loss deduction 19 

Long-term gains and losses 20, 62, 63 

Net gain from sales 19 , 62 , 63 

Net long-term gain in excess of net 

short-term loss 20 , 63 

Net loss from sales 19 , 62 

Net loss from sales before limitation... 20, 62 

One-half excess long-term gain 20, 50, 51 

Sales of capital assets.. 3, 28, 29, 31, 35, 39, 

46, 50, 51, 62, 63, 66, 72, 74, 77 

Short-term gains and losses 19, 62, 63 



Page 

14 

21, 24 

22 

3 

72, 73 

72, 74 

17 

, 55-58 
, 53-58 
72, 74 
-70, 78 
65, 73 
22 
27 
12, 13 



8, 10, 22 



3, 22 

■52, 63 

14 



21 

14 

52, 73 



Capital loss carryover. (See Capital gains and 

losses. ) 
Capital loss deduction. (See Capital gains and 
losses. ) 

Casualty losses 22, 74 

Changes in tax laws: 

Small Business Tax Revision Act of 1958 3 

Technical Amendments Act of 1958 3, 22 

Child care , deduction for 22 , 74 

•■Children dependents, returns with 8, 10, 11 

Classifications and terms 17, 24 

Community income 13, 17 

Comparability of data 3 

Contributions, deduction for 6, 7, 18, 21, 29, 42, 

48, 74 
Credit on 1959 tax 24, 33, 37, 41 



Declarations of estimated tax. Form 1040ES 24 

Deductible contributions in excess of 20 percent 

of adjusted gross income 6, 7 

Deductible expenses for: 

Business or profession 

Rents and royalties 

Salaries and wages 

Reimbursed and travel expenses 

Deductions: 

Itemized nonbusiness.... 6-9, 15, 17, 18, 21- 

29, 42, 43, 48, 49, 57, 58, 

Standard 15, 17, 23, 28, 55, 

Deficit , adjusted gross 22 , 

Dependents. (See Exemptions. ) 

Description of sample 

Disabled persons 65 years or over 

Distributed or undistributed current-year tax- 
able income 3, 20, 21 

Dividends : 

After exclusions 18, 19, 28-30, 34, 38, 44, 66 

Exclusions 4, 5 

Received 3, 4, 5 

Tax credit for 4, 5, 23, 32, 36, 40, 43 

Drugs, expense for. (See Medical deduction and 
expense . ) 



E 

Effective tax rates 52 , 83 

Estates and trusts, income or loss 20, 29, 32, 36, 

40, 47 

Estimated tax, payment on declarations of 24, 33 

37, 41 

Excludable sick pay 5, 18 

Exclusions from: 

Dividends received 4, 5 

Salaries and wages 18 

Exemptions 8, 10, 12, 13, 18, 22, 32, 36, 40, 43, 

53-61, 83 





19 




20 




18 




18 


!3, 


28. 


72, 


74 


56, 


72 


72, 


73 


15 


-17 


3 


, 7 



124 



INDEX 



Exemptions — Continued Page 

Additional allowance for age, blindness, and 

dependents other than children 8, 10, 22 

Age and blindness combined. (See 

Statistics of Income- 1957 , Individual 
Income Tax Returns.) 
Age only. (See Statistics of Income- 
1956, Individual Income Tax Returns.) 

Allowances for 22 

»Children dependents 8 , 10 

Form 1040A 12, 13 

Ordinary. ( See Personal. ) 

Other than age or blindness. (See Statistics 
of Income- 1957 , Individual Income Tax 
Returns . ) 

Personal 22 

Qualifications for: 

Income and dependency 22 

Multiple support 22 

Support 22 

Expenses. (See Deductible expenses.) 



Income tax after credits — Continued 

Computation 

Cumulated 

Income tax before credits.... 23, 32, 36, 40, '+3, 

Income tax rates 

Income tax withheld 14 , 24 , 33 , 

Individual income tax returns for 1958 

Interest paid, deduction for.. 6, 18, 21, 29, 42, 

Interest received 3, 19, 28-30, 34, 38, 

72, 
Inventions and artistic works, income attribut- 
able to 

Itemized nonbusiness deductions.... 6-9, 15, 17, 

22, 28, 29, 42, 43, 48, 57, 58, 

*By size of total 



Joint returns of husbands and wives.. 8, 10, 11, 13, 17, 
21-23, 34, 37, 50, 53, 55, 57, 59 
*Forms 1040A with one or both spouses em- 
ployed 10 , 13 



Page 




24 




27 


50, 


51 


23, 


83 


37, 


41 




3 


48, 


74 


44, 


66, 


74, 


. 75 




21 


18, 


21, 


72, 


, 74 



Facsimiles of return forms 87-119 

Filing requirements 14 

Citizens and resident aliens of United 

States 14 

Citizens and resident aliens of Puerto Rico. 14 

Claim for refund 14 

Historical: 

Individual income tax returns, 1949-58.. 83 
Self-employment tax schediile, 1951-58... 83 

Fiscal year returns 14 

Foreign tax paid, tax credit for 23, 33, 37, 41, 43 

Form 1040 3-5. 12, 14-19, 21-24, 87 

Form 1040A 4, 10, 12-18, 21-24, 119 

Classified by: 

Adjusted gross income classes 10, 12, 14 

»Joint returns, with one or both spouses 

employed 10 , 13 

*Marital status 10 , 12 

»Size of other income 10, 14 



L 

Laws , synopsis of 82 , 83 

Long-term gains and losses from sales of capital 

assets. (See Capital gains and losses.) 

Long-term services, compensation for 21 

Lump-sum payment at maturity of endowment or 

life insurance contracts 21 



M 

Marital status of taxpayer 8, 10-12, 17, 18, 21-23, 

34-42, 50, 51, 53-61 

Measures of individual income 22 , 23 

Medical deduction and expense.. 3, 6, 7, 18, 21, 22, 29, 

42, 49, 74 
Metropolitan areas (see also States and 

Territories) 18, 66, 68, 69 

Multiple support exemption 18, 22 



Gross income (see also Adjusted gross income) 



H 



Heads of household. 



10, 11, 17, 18, 21-23, 51, 

54, 56, 58, 60 

Historical data, 1949-58 72-78 

73 

74 

72 

73 

74 



Average income tax 

Itemized deductions 

Returns by major characteristics 

Returns with income tax 

Sources of income by type 

Sources of income by adjusted gross income 

classes 75-77 

States and Territories 78 , 79 



Income and dependency qualifications for 

exemption 22 

Income attributable to several tax years 21 

Income tax after credits 3, 27, 33, 53, 72, 73 

Classified by: 

Form of deduction 43, 55-58 

Marital status 37, 41, 50, 51, 53-58 

Type of tax 50-52, 64 

States and Territories 66-70 , 79 



N 

Net gain or net loss from sales of capital 
assets . (See Capital gains and losses . ) 
Net gain or net loss from sales of property 

other than capital assets.. 20, 28, 29, 31, 35, 39, 46 
Net long-term capital gain in excess of net 
short-tenn capital loss . (See Capital gains 
and losses.) 
Net loss from sales of capital assets before 
limitation. (See Capital gains and losses.) 

Net operating loss deduction 19, 72, 74 

»New data: 

«Children dependents, returns with 8, 10, 11 

*Form 1040A returns 10 , 12-14 

*Size of total itemized deductions 7, 9 

*Sole proprietorships (Preliminary data for 

1958) 12-14 

♦Taxable income for partial tax 20, 23, 50, 51 

No information, returns with 14 

No taxable income, returns with 32, 36, 40, 43 

Nonbusiness deductions. (See Itemized nonbusi- 
ness deductions.) 

Noncalendar year accounting periods 12 , 14 

Nontaxable returns 3, 17 

Normal tax and surtax 18, 20, 23, 50-52 

Number of returns filed. (See specific type of 

return or classification.) 
Number of returns , income , and taxes 3 



126 



INDEX 





Page 
One-half excess long-term gain. (See Capital 
gains and losses.) 

Operating loss deduction, net 19, 72, 74 

Optional tax. (See Tax table.) 

Other areas 18 

Other income 3, 10, 20, 21, 28, 29, 32, 36, -40 

Other itemized nonbusiness deductions 6, 22, 29,42, 

74 
Other tax credits. (See Tax credits.) 
Overpayment of tax 24 , 33 , 37 , 41 



Partial tax 20, 23, 

Partially tax-exenpt interest, tax credit 

Partnership, profit or loss 3, 19, 28-30, 



50, 51 

23, 24 

34, 38, 

45, 66 



Patterns of income relating to four selected 
sources (dividends, interest, capital gaiji or 
loss, estate and trust income or loss). (See 
Statistics of Income- 1957 , Individual Income 
Tax Returns. ) 

Payments on declarations of estimated tax 24, 33, 

37, 41 

Pensions and annuities 20, 28, 29, 35, 39 

Per capita exemption 22 

Personal exemption 22 

x-Preliminary data. Sole Proprietorships 12-14 

Preliminary report. Statistics of Income-1958 , 

Individual Income Tax Returns 3 

Property other than capital assets, sales of.... 20, 28, 

29, 31, 35, 39, 46 



Refund of tax 24, 33, 37, 41 

Reimbursed and travel expenses 18 

Rents and royalties... 3, 20, 28, 29, 31, 35, 39, 47, 66 
Retirement income, tax credit for.... 23, 32, 36, 40, 43 
By age groups. (See Statistics of Income- 

1955. Individual Income Tax Returns .) 
Special deductions for persons with. (See 
Statistics of Income-1955 , Individual 
Income Tax Returns .) 
Returns filed. (See specific type of return or 

classification. ) 
Returns from which data were tabulated 14 



Salaries and wages: 

Gross, deductions from: 

Excludable sick pay 

Travel and reimbursed expenses 

Net 3, 5, 10, 18, 28-30, 34, 38, 

72, 
Sales of capital assets. (See Capital gains and 
losses. ) 

Sales of property other than capital assets 

29, 31, 35, 

Sample , description of 

Schedule C , Form 1040 

Schedule D, Form 1040 

Schedule F, Form 1040 

Self-employment taxes 3, 14, 18, 24, 64, 65 

Separate returns of husbands and wives... 8, 10, 

21-23, 50, 53, 55 
Short-term gains and losses from sales of 

capital assets. (See Capital gains and losses.) 

Sick pay exclusion 

Single persons not head of household or surviv- 
ing spouse 8, 10, 17, 18, 21-23, 38-41, 

56 



5, 18 

18 

44, 66, 

74, 75 



20, 28, 

39, 46 

15-17 

12, 107 

111 

12, 113 

72, 83 

17, 18, 

57, 60 



5, 18 

50, 54, 
58, 61 



Small Business Tax Revision Act of 1958 

Social Security taxes 

»Sole proprietorships (Preliminary data for 1958) 

Combined net profit aind loss 

Number of businesses 

Total receipts 

(For additional information see Statistics 
of Income- 1958- 59 , V . S. Business Tax 
Returns- ) 
Sources comprising adjusted gross income... 18-21 

Sources of data 

Split income provision 

Standard deduction 14, 15, 17, 22, 23, 55, 

Standard metropolitan areas 18, 66, 

States and Territories 18, 65-70, 

Statistics of Income-1958-59 , U. S. Business Tax 

Returns 

Stockholders share of income from a small busi- 
ness corporation electing not to be taxed as a 

corporation 3, 

Support test 

Surviving spouse 8, 11, 17, 18, 21-23, 

56, 
Synopsis of tax laws 



3 

24 

12-14 

12, 14 

12-14 

12, 14 



, 74-77 
14 
23 
56, 72 
68, 69 
78, 79 

12 



20, 21 

22 

50, 54, 

58, 61 

81-83 



Tax base. (See Taxable income.) 

Tax credits 3-5, 23, 24, 32, 33, 36, 37, 40, 41, 

43, 50, 51 

Dividends received 3-5, 23, 32, 36, 40, 43 

Foreign tax paid 23, 33, 37, 41, 43 

Other 23, 24, 33, 37, 41, 43 

Partially tax-exempt interest 23, 24 

Tax-free covenant bond interest 23, 24 

Throwback tax 23, 24 

Retirement income 23 , 32 , 36 , 40 , 43 

Tax items 23, 24 

Tax laws , synopsis of 81-83 

Tax paid at source. (See Tax credits.) 

Tax rates 23, 24, 83 

Tax refund 24, 33, 37, 41 

Tax table 15 

Tax withheld 14, 24, 33, 37, 41 

Taxable income 3, 27, 32, 72 

Basis for classifying data 17, 18 

Classified by: 

Form of deduction 43. 55, 56-58 

Marital status 8, 10, 36, 40, 50, 51, 53-58 

States and Territories 66 

Types of tax 50-52 

Computation 22 , 23 

Cumulated 27 

♦Taxable income for partial tax 20, 23, 50, 51 

Taxable returns 3, 17 

Taxable and nontaxable status 17, 24 

Taxes paid, deduction for 6, 18, 21, 29, 42, 48, 74 



Technical Amendments Act of 1958. 

Tentative returns 

Throwback tax credit. (See Tax credits.) 

Travel and reimbursed expenses ■ 

Types of tax ■ 



3, 22 

14 



18 
18 



U 

Uninsured casualty and theft losses of business 
property and capital assets held more than 6 
months for the production of income 



Wages and salaries. (See Salaries and wages.) 
Withheld tax. (See Tax withheld.) 



U.S. GOVERNMENT 



1960 O - 566335 



s 



TATISTICS OF INCOME 



Publications in Preparation 

Fiduciary, Gift, and Estate Tax Returns nied dmmg 1959 

FIDUCIARY INCOME TAX RETURNS FOR 1958: Sources of income, deductions, 
exemptions, and tax. Classifications by estate or trust income (also bank ad- 
ministered trust), size of total income and taxable income, tax status, types of 
tax, and States, Historical data 1949-58. 

GIFT TAX RETURNS FOR 1958: Total gifts, exclusions, deductions, specific 
exemption, and tax. Classifications by type of gifts, size of taxable gift and 
total gift, tax status, recurrent donors, and consent status. 

ESTATE TAX RETURNS: Gross estate by type of property, deductions, specific 
exemption, tax, and tax credits. Classifications by tax status, size of gross 
estate and net estate before exemption, method of valuation, marital status, age, 
sex, and States, Historical data 1950-59. 

U. J5. DUSmeSS rax Returns with accounting periods ended July 1958- 
June 1959 

SOLE PROPRIETORSHIPS, PARTNERSHIPS, AND CORPORATIONS 
Business receipts, profits, depreciation, and inventories. Classifications by 
industry, size of profit and of business receipts, and for partnerships and cor- 
porations, size of total assets. Historical data for selected years, 

V-iOrpOratlOn income Tax Returns with accounting periods ended July 
1958-June 1959. 

Income and balance sheet data, tax liability, distributions to stockholders. Clas- 
sifications by industry, size of total assets, size of net income, size of profit- 
ability and total assets turnover ratios, month accounting period ended, prior 
year income. Separate data for small business corporation returns. Forms 1120-S; 
consolidated returns; personal holding company schedules. 



Individual 



Income Tax Returns for 1959, Preliminary 



Sources of income, adjusted gross income, total itemized deductions, exemp- 
tions, taxable income, income tax, tax credits, self-employment tax, tax withheld, 
and taxpayments, by size of income. Selected sources of income by States. 

Recent Publications 

Corporation Income Tax Returns with accounting periods ended July 1957-June 

1958 (212 pp., $1.50) 
U. S. Business Tax Returns with accounting periods ended July 1957-June 1958, 

Sole Proprietorships, Partnerships, and Corporations (32 pp., 35<f) 
Individual Income Tax Returns lor 1957 (113 pp., 750) 
Fiduciary Income Tax Returns for 1956 (48 pp., 40<;:) 
Estate and Gift Tax Returns filed during 1957 (39 pp., 35$) 
Farmers' Cooperative Income Tax Returns lor 1953 (42 pp., 40$) 

Statistics of Income publications are for sale by the Superintendent of Documents, 
U. S. Government Printing Office, Washington 25, D. C.