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Full text of "Statistics of income"

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STATISTICS OF INCOME . . . 1964 



Individual 

INCOME TAX 
RETURNS 



1^^ 



Boston Public Library 
Superintendent of Documents 

MAR 16 1967 

DEPOSITORY 



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U. S. TREASURY DEPARTMENT • INTERNAL REVENUE SERVICE 



Statistics of Income / 1964 
Individual 

INCOME TAX 
RETURNS 



U. S. TREASURY DEPARTMENT 




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



Internal Revenue Service 



Publication No. 79 (1-67) 



INTERNAL REVENUE SERVICE 

SHELDON S. COHEN Commissioner 
WILLIAM H. SMITH Deputy Commissioner 
ALBERT W. BRISBIN Assistant Commissioner (Planning and Research) 



VITO NATRELLA 

Director 
JAMES M. JARRETT 

Assistant Director 
THOMAS F. McHUGH 
STATISTICS Chief, Income, Finance, and Wealth Branch 
DIVISION TED E. McHOLD 

Chief, Statistical Techniques Branch 
HERMAN E. GUTERMAN 

Associate Chief, Statistical Techniques Branch 
ROBERT J. TOLLIVER 

Chief, Program Management Branch 



This report on individual income tax returns was 
prepared under the direction of Jack Blacksin, Supervisory 
Statistician in the Income, Finance, and Wealth Branch, assisted 
by Raymond D. Plowden and other members of the staff. 

Other branches of the Statistics Division assisted 
in development of the sample design and the computer systems 
design, the preparation of processing procedures, and the post- 
tabulation review of the data. Statistical and computer process- 
ing of the data were conducted by the service centers at 
Chamblee, Georgia; Kansas City, Missouri; Lawrence, Massa- 
chusetts; Philadelphia, Pennsylvania; and Ogden, Utah. 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C., 20402 - Price $1.25 



Letter of Transmittal 



Treasury Department, 
Office of Commissioner of Internal Revenue, 

Washington, D. C, January 23, 1967. 

Dear Mr. Secretary: 

I am transmitting Statistics of Incotne - 1964, Individual htco me Tax Returns. 
This report was prepared in partial fulfillment of the requirements of section 6108 
of the Internal Revenue Code of 1954, which prescribes that statistics be published 
annually with respect to the operation of the income tax laws. The data presented 
in this report were based on the 65 million individual income tax returns filed on 
Forms 1040 and 1040A during calendar year 1965. 

Effects of the changes prescribed by the Revenue Act of 1964 are measured in 
this report. The new tax rates, new dividends received exclusion, moving expense 
deduction, income averaging, and excludable sick pay receive special attention. 

Statistics are presented for sources of income, exemptions, taxable income, 
income tax, self-employment tax, tax credits, tax payments, and overpayments, all 
classified by size of adjusted gross income. Included are data for returns with 
itemized deductions, Form 1040A returns, and Form 1040 returns with dividends 
eligible and ineligible for exclusion. A series of marginal tax rate tables for the 
various marital status classifications have been developed. Selected sources of 
income and some tax items are reported for each State. 



Commissioner of Internal Revenue. 



Hon, Henry H. Fowler, 

Secretary of the Treasury. 



Contents 



GUIDE TO BASIC AND HISTORICAL TABLES, vii 

Section 1 

RETURNS. INCOME SOURCES, AND TAX, 1 

Returns and income increase, taxes decline, 1 
New "Adjustments" affect computation of ad- 
justed gross income, 2 
Excludable sick pay, 3 
Employee moving expenses, 3 
Employee business expenses, 4 
Self-employment pension deduction, 4 
Income averaging, 4 
Dividends in adjusted gross income show small 

increase because of higher exclusion, 5 
New information shown for sales of depreciable 
property, 7 

Section 2 

PERSONAL DEDUCTIONS: EXEMPTIONS. 
STANDARD DEDUCTION, ITEMIZED 
DEDUCTIONS, 37 

Exemptions for taxpayers' dependents numbered 

74.7 million, 37 
Standard deduction total increases 54 percent 
with introduction of minimum standard deduc- 
tion, 37 
Itemized deduction returns decline, 38 
Medical deduction exceeded $7.1 billion, 38 
Taxes paid most frequently reported deduc- 
tion, 39 
Deduction for home mortgage interest almost 
$6.4 billion, 42 

Section 3 

TAX BASE AND TAX RATES, 65 

Progressive rates applied, 65 

Tax base increases almost 10 percent, 65 

Marginal tax rates, 66 

Section 4 

RETURNS WITH AGE EXEMPTIONS; 

RETIREMENT INCOME CREDIT, 87 

Half of returns of older taxpayers were non- 
taxable--half reported no wages or sala- 
ries, 87 



Investment income important to aged, 87 
New information from retirement income credit 
schedule, 88 



Section 5 

STATES AND REGIONS. 95 



Salaries and wages 
in each state, 95 



dominant source of income 



Section 6 
HISTORICAL DATA, 113 



Section 7 

EXPLANATION OF CLASSIFICATIONS AND 

TERMS, 121 

Classifications, 121 
Explanation of terms, 122 



Section 8 

SOURCES OF DATA. DESCRIPTION OF THE 

SAMPLE, AND LIMITATIONS OF THE DATA, 131 

Sources of data, 131 

Description of the sample and limitations of the 
data, 132 

Sample selection, 132 

Method of estimation, 133 

Sampling variability, 133 

Response and other nonsampling errors, 134 



Section 9 

SYNOPSIS OF LAWS. 137 



Section 10 

1964 FORMS AND INSTRUCTIONS, 139 



Section 11 
INDEX, 189 



Guide to Basic and Historical Tables 



Section 1 

RETURNS, INCOME SOURCES, AND TAX 

Cumulated income and tax (Table 1), 8 
Sources of income and loss (Tables 2-7), 9-22 
Selected data by marital status (Table 8), 28 
Form 1040A returns (Table 9), 30 
Capital gains and losses (Table 10), 31 
Foreign and domestic dividends (Table 11), 33 
Overpayment and refund (Table 12), 34 

Section 2 

PERSONAL DEDUCTIONS: EXEMPTIONS, 

STANDARD DEDUCTION, ITEMIZED 

DEDUCTIONS 

Minimum standard deduction (Table 13), 43 
Standard deduction returns, sources of income 

(Table 14), 47 
Itemized deduction returns, sources of income, 

type of deduction (Table 15), 50 
Standard deduction returns by marital status 

(Table 16), 54 
Itemized deduction returns by marital status 

(Table 17), 56 
Itemized deductions as a percent of adjusted 

gross income (Table 18), 58 

Section 3 

TAX BASE AND TAX RATES 

Normal tax and surtax (Table 19), 68 
Alternative tax (Table 20), 69 



Income tax at each tax rate (Table 21), 70 
Marginal tax rates (Tables 22-23), 74-76 
Marginal tax rates by marital status (Tables 
24-26), 79-83 



Section 4 

RETURNS WITH AGE EXEMPTIONS; 

RETIREMENT INCOME CREDIT 

One taxpayer over 65 years (Tables 2' 

29), 89-93 
Retirement income credit (Table 30), 94 

Section 5 

STATES AND REGIONS 



State data (Tables 31-32), 



Section 6 
HISTORICAL DATA 

Number of returns and adjusted gross income 

(Table 33), 113 
Characteristics of returns (Table 34), 114 
Returns with income tax (Table 35), 115 
Sources of income (Table 36), 116 
Itemized deductions (Table 37), 116 
Sources of income by income class (Table 

38), 117 
State data (Table 39), 119 



SECTION 1 



Returns, Income Sources, and Tax 



TABLE CONTENTS 

Text Tables 

A. Number of returns, income, and taxes: 1963 and 1964, 2 

B. Returns with excludable sick pay: Number of returns and amount, by ad- 
justed gross income classes; 1963 and 1964. 3 

C. Returns with moving expense deduction: Number of returns, adjusted 
gross income, amount of deduction, salaries and wages, and income tax 
after credits, by adjusted gross income classes, 3 

D. Returns with employee business expense deduction: Number of returns, 
adjusted gross income, amount of deduction, salaries and wages, and 
income tax after credits, by adjusted gross income classes, 3 

E. Returns with self-employment pension deduction: Number of returns and 
amount of deduction by size of deduction and adjusted gross income 
classes, 4 

F. Returns with income averaging: Number of returns and income tax before 
credits, before and after income averaging, by adjusted gross income 
classes, 1964, 4 

G. Returns with income averaging- Sources of income and loss, exemptions, 
taxable income, and tax items, by adjusted gross income classes, 
5,6 

H. Total foreign and domestic dividends received: Form 1040 returns with 
dividends eligible and ineligible for exclusion, amount of exclusion, and 
dividends in adjusted gross income, by adjusted gross income classes. 
6 

1. Returns with dividend exclusion: Number of returns and amount, by ad- 
justed gross income classes. 1963 and 1964. 6 

J. Returns with gain from sales of depreciable property: Number of returns 
and amount, by adjusted gross income classes, 1964. 7 

Basic Tables 

1. Number of retui 
tax after credit 
lated, 8 

2. Sources of income and loss, adjusted gross income, standard deduction 
and total itemized deductions, by adjusted gross income classes 
9 

3. Sources of income and loss: All returns, returns 
returns with itemized deductions, and returns w 
come, by marital status of taxpayer, 11 

4. All returns - Sources of income and loss, exem 
and tax items, by adjusted gross income classes. 

5. Joint returns of husbands and wives and retur 
Sources of income and loss, exemptions, taxabl 
by adjusted gross income classes. 16 

6. Separate returns of husbands and wives and re( 
Sources of income and loss, exemptions, taxable income, and tax ite 
by adjusted gross income classes. 19 

7. Selected sources of income and loss by size of source: Number of 
turns and amount of source by adjusted gross income classes. 22 

8. All returns: .Adjusted gross income, exemptions, taxable income, and 
come tax after credits, by adjusted gross income classes and by marital 
status of the taxpayer. 28 

9. Form 1040A returns: Income, exemptions, taxable income, and lax items, 
by adjusted gross income classes, 30 

10. Capital gains and losses, short- and long-term, and capital 
over, by adjusted gross income classes, 31 

11. Total foreign and domestic dividends received: Form 1040 
dividends eligible and ineligible for exclusion, amount of ex 
dividends in adjusted gross income, by adjusted gross incc 



Ijusted gross income, taxable income, and income 
adjusted gross income classes and classes cumu- 



with standard deduction 


ith no adjusted 


ross in- 


nptions, taxable 


income 


13 




rns of surviving 


spouse 


e income, and ta 


X items 



ingle 



carry- 



classes. 



Income and tax data presented in this report were 
estimated from a sample of all returns filed during 
calendar year 1965 and represent complete coverage of 
all returns for the income year 1964, Over 65 million 
returns were filed of which more than 99 percent 
covered tax years ending December 31, 1964, The 
Revenue Act of 1964 (P. L. 88-272) introduced major 
changes affectingthecomparabilityof income, deductions, 
and tax items with corresponding data for prior years. 
These changes are explained wherever they affect items 
in the report. A general discussion of the sources and 
limitations of the data is given in section 8, 



RETURNS AND INCOME INCREASE, TAXES DECLINE 

Chart 1 shows the ten -year trend of returns in three 
broad income size classes, A record number, 65, 375, 
601 returns, were filed for 1964, representing a 2,2 
percent increase over 1963, The number of returns with 
income over $10,000 again showed the greatest growth, 
increasing 16.7 percent from 1963, These returns repre- 
sented 14,5 percent of the total filed, compared with 4.4 
percent ten years ago. Those returns with incomes be- 
tween $5,000 and $10,000 showed a moderate increase 
of 3.9 percent. Returns with income below $5,000 con- 
tinued to decline and now comprise 50,5 percent of 
total returns. In 1955 this figure was 70.8 percent. 



12. Overpayment, refund, credit on 1965 tax. 
income classes and by type of taxpayment. 



and 



due. by adjusted i 



Chart L -NUMBER OF RETURNS BY SIZE OF ADJUSTED GROSS INCOME, 
1955-1964 











c 








^ 






















Retun 


,s under 


J5.000 


















.^__ 
































Return 


: $5,00( 


under J 


10,000 
































Retums $10,000 or more 

-•h 


_.— 




_. ■■ 





MS6 W67 



1960 1961 1942 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

-NUMBER OF RETURNS, INCOME, AND TAXES: L963 AND 1964 



Iteio 


1963 


1964 


Change, 

1963 to 

1964 




(1) 


(2) 


(3) 




51,323,221 

12,620,015 


65,375,601 
51,306,338 
14,069,263 


1,432,365 
-16, 863 










flfi/Ii», Ml.,.) 


• • ■ U 


368,778 

300,321 
11,452 
9,212 
21,116 
2,756 
9,313 
6,4^9 
2,713 
583 

897 

48,' 20* 
1,002 


396,660 

323,266 

10^125 
22,992 
2,635 
9,731 
7,939 
2,625 

7,703 

2,879 

229,375 

47,153 

1,016 


27,882 


Sources of income: 
Salaries and wages (gross)^ 






Business and profession net profit and net loss. 


1,876 




Sale of capital assets net gain and net loss 


1,49U 




1,943 

20^785 
-1,051 






Income^tS^after credits 







^Not comparable between 1964 and 1963 because 
form. These changes are explained in full in tl 

^For 1964 includes sick pay exclusion, moving 
expense deduction, and self-employment pension deduction, 
pay exclusion and self-employment pension deduction. 

NOTE: Detail may not add to total because of rounding. 






Table A presents a summary of the major sources of 
income, taxable income, and income taxes for 1963 and 
1964. Salaries and wages, the largest single source of 
income, increased to over the $323 billion mark for 
1964, This item is not directly comparable with salaries 
and wages in earlier years because a gross rather than 
a net figure is shown. Prior to 1964 the income tax 
return forms had no specific line for deductible em- 
ployee business expenses. Hence, this item was often 
deducted by the taxpayer from salaries and wages before 
making the entry on the tax return. Furthermore, a line 
was provided on the pre-1964 returns for the subtraction 
of excludable sick pay from the amount of salaries and 
wages shown on the return and the net amount was tabu- 
lated for Statistics of Income purposes. The design of the 
1964 individual income tax return provided for the entry 
of gross salaries and wages. Employee business ex- 
penses, excludable sick pay, and a new item, moving 
expenses, were subtracted from total income under the 
heading "adjustments." These three items together 
amounted to $2.9 billion and if subtracted from gross 
salaries and wages, that item still increased 7.0 percent 
over 1963, 

Other major increases were noted for sales of capital 
assets, up 23.1 percent, interest received which rose 9.9 
percent, and business and professional income which in- 
creased 8.9 percent. The gain in sales of capital assets 
was the largest in several years. This gain was slightly 
affected by the new law excluding from gross income all 
or part of the gain on sale or exc^iange of a residence 
from sales by individuals who have attained age 65, 
Another important change was the treatment of a portion 
of gains from sales of real property, under Section 1250 
of the Internal Revenue Code, as ordinary income. 
Most of the other sources increased with the exception 
of farm net profit which dropped 4.4 percent and rental 
income which declined 3.3 percent. Chart 2 shows the 
proportion of adjusted gross income for 1964 attributable 
to each major source of income. 



Chart 2. -COMPONENTS OF ADJUSTED GROSS INCOME, 1964 



INCOME FROM OTHER SOURCES 18.5% 




ADJUSTED GROSS INCOME (net) $396,659,1 



Income tax after credits dropped 2.2 percent to $47 
billion. The 1963 figure was more than $48 billion. This 
decrease was expected as the result of (1) lower tax 
rates effective in 1964, and (2) the new income averaging 
provision. For 1963 the minimum tax rate was 20 per- 
cent and the maximum was 91 percent. These rates 
dropped to 16 percent and 77 percent for 1964. The with- 
holding rates also dropped from 18 percent to 14 percent. 
Taxpayers saved $133 million as a result of using the 
income averaging provisions in the Revenue Act of 1964. 
The self-employment tax increased $13.5 million over 
1963. There was no change in the tax rate on self- 
employment income for 1964. 



NEW "ADJUSTMENTS" AFFECT COMPUTATION 
OF ADJUSTED GROSS INCOME 

Prior to the Revenue Act of 1964 there were certain 
items that were excluded from either gross income or 
salaries and wages. Excludable sick pay and employee 
business expenses were offset against salaries and wages 
on the Form 1040 and payments by self-employed persons 
to retirement plans were used as a deduction when com- 
puting adjusted gross income. As explained above, em- 
ployee business expenses were not always measurable 
because no specific place was provided for their entry on 
the return. 

As a result of the new law and changed form design, 
for 1964 there were no direct offsets to salaries and 
wages on the return. Instead, these three items plus a 
new one, employee moving expenses, each had a separate 
line in a section of the return called "Adjustments." 
The total of these adjustments was then used as a deduc- 
tion when computing adjusted gross income. 

The new adjustment, the definite place for reporting 
employee business expenses, and the new limitations on 
excludable sick pay caused adjusted gross income to be 
not strictly comparable with data for prior years. The 
four adjustments are explained in detail below. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 







1964 




"^^tfrnf 


dolltr.) 


TZ^' 


Amount^ 




(1) 


(2) 


(3) 


(4) 


Grand total 


1,870,761 


877,343 


757,536 


522,233 


tot 1 


1,786,999 
24,602 
347,258 
209,175 
205,767 
522,080 
359,827 
118,290 

83,762 


764,481 

35;467 
201,565 

62;468 

1U,862 


696,100 
7,097 

77^ 366 
78,345 
207,532 

61,436 


413,^9 




















116,578 








341546 




108, 594 







able C— RETURNS WITH MOVING EXPENSE DEDUCTION: NUMBER OF RETURNS, 
ADJUSTED GROSS INCOME, AMOUNT OF DEDUCTION, SALARIES AND WAGES, AND 
INCOME TAX AFTER CREDITS, BY ADJUSTED GROSS INCOME CLASSES 



NOTE: Detail ma;v not add tc total because of rounding. 

Excludable Sick Pay 

The Revenue Act of 1964 effected a major change in the 
law governing the exclusion of sick pay from gross in- 
come. Prior to this law an employee could exclude sick 
pay amounting to $100 a week from his gross income if 
he were absent from work because of injury or illness. 
This exclusion did not apply to the first seven days of 
absence for illness unless the employee was hospitalized 
for at least one day during his absence. There was no 
waiting period in the case of an injury. 

Under the new law, there is no differentiation between 
sickness or injury and the limit on the exclusion for the 
first thirty days is at the rate of $75 a week. If the sick 
pay is more than 75 percent of the regular salary, the 
exclusion does not apply for the first thirty days. In any 
case, the exclusion does not apply for the first seven 
days of absence unless the employee is hospitalized at 
least one day during his absence. The limit on the ex- 
clusion is $100 per week after the first thirty days of 
absence. 

These new limitations caused a 60 percent decline in 
the number of individual income tax returns filed with 
excludable sick pay. Table B shows that there were 
758,000 returns with this exclusion, compared with 
1,871,000 for 1963. The amount dropped 40 percent from 
$877 million in 1963 to $522 million in 1964. 

Employee Moving Expenses 

As a result of the Revenue Act of 1964 employees are 
allowed a deduction for unreimbursed expenses incurred 
in moving household goods and personal effects, including 
traveling expenses of the employee and his household 
members, from his old home to a new job location. The 
deduction, as defined in the Act, is allowable only if the 
new location would have required at least an additional 20 
miles of commuting if the employee had not changed his 
residence. Furthermore, the employee must have full- 
time employment in the new vicinity for 39 weeks during 
the twelve months following the move. 

Table C indicates that taxpayers claimed $93 million 
of unreimbursed moving expenses on more than 290,000 
individual income tax returns filed for tax year 1964. 
Although the overall average deduction per return was 
$319, the average within various income size classes 
differed considerably. The low was $227 for taxable 
returns with adjusted gross income between $2,000 and 
$5,000 and the high was $618 for returns with income over 
$15,000. 





Returns with mo 


ving expens 


deductio 






Number of 


Adjusted 
income 




(TKcj.^d 


after " 
credits 




il) 


(2) 


(3) 


(4) 


(5) 




290,409 


2,317,663 


2,335,396 


92,635 








Taxable returns , total 


281,635 


2,285,802 


2,293,609 


87,931 


2it,Z33 




I 10.05: 

18,511 
28,405 

37)656 
24,106 
21,158 

10,546 


24,742 

127)449 
225,215 
207,387 
280,912 
206,023 
200,114 
611,069 
177,282 
131,843 
21,523 


26,054 

135)150 
237,986 

295)304 
210,497 
201,574 
607,139 
171,033 
110,301 
10,487 
1,721 


2,432 
4,145 
6,228 
10,956 
13)o31 

^0 

6,094 

3,443 

292 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 un..er $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

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


9)755 

17,514 

27)799 
21,920 
22,064 

25,226 
23,320 






Nontaxable returns, total.... 


3,774 


31,361 


41,787 


4,704 




No adjusted gross income... 


1,702 


4,58f. 
13,587 


o,581 
15,414 


l,12i 


(M 


t60o''under'$i'o00 




$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


1. : 
1 : 






Returns der $5 000 


68)060 


235,652 
'950)742 


253,652 
'903)381 


47)553 

29,104 




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


133)526 



See text for "Description of the Sample and Limitations of 
ion of Classifications and Terms." 

^Estimate is not shown separately because of high sampling ■ 
he data are included in the appropriate totals. 

NOTE: Detail may not add to total because of rounding. 



Table D.— RETURNS WITH EMPLOYEE BUSINESS EXPENSE DEDUCTION: NUMBER OF 
RETURNS, ADJUSTED GROSS INCOME, AMOUNT OF DEDUCTION, SALARIES AND 
WAGES, AND INCOME TAX AFTER CREDITS, BY ADJUSTED GROSS INCOME CLASSES 





Returns 






ction 


Adjusted .r.. income Classes 


Number 


gross 


and wages 
(gross) 


dedllStion 


credits 
dollm.) 




(1) 


(2) 


(3) 


(4) 


(5) 


Orand total 


2,201,250 


20,103,721 


20,244,416 


2,238,028 


2,507,348 


Taxable returns, total 


2,085,359 


19,774,532 


19,794,216 


2,085,437 


2,507,348 




3,200 
36,670 

105)478 
191,247 

230)707 
220,506 

180,471 

122,510 
86,264 

1)227 
32 
10 


56)460 

138,541 

375,064 

751,639 

1,057,211 

1,410,828 

1,732,299 

1,871,363 

1,712,511 

2,093,392 

2,355,038 

450,746 

21)733 
17,260 


77)461 

166,344 

436,074 

855,729 

1,167,837 

1,517,557 

1,865,293 

1,962,643 

1,788,024 

5,626,314 

2,010,418 

1,965,670 

277,202 

'482 


25,357 
45,290 
86,796 
150,817 
193,415 
196,718 

191)573 
166,624 
453,141 
156,191 
166,256 
23,115 
6,576 

118 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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


3,085 
9,455 
27,246 
57,745 
31,611 
121,935 
161,377 

186)253 
684,735 
305,342 

134)609 
77,306 
9,538 






Nontaxable returns, total.... 


115,891 


329,189 


450,200 


152,591 




No adjusted gross income... 


6,271 

9)285 
19,016 
25,315 

15)707 
17,589 


^23,602 

27)183 
65,070 

116)^6 


20,331 
9,210 

34)947 
85,701 
77,371 

132)240 


14,043 
4,905 
8,611 
17,729 
32,581 
24,302 
24,195 
26,225 


- 






$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 








. 




1,537,327 
10)674)l29 


1,856,893 
3,428,527 


435,231 
995,352 

807,443 


97 


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


739,644 
1,670,128 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Employee Business Expenses 

The magnitude of deductible employee business ex- 
penses is indicated in table D. Prior to 1964, employee 
expenses for travel away from home, for transportation, 
expenses of outside salesmen, etc., were deductible from 
gross income, but no specific place was provided for them 
to be shown on the individual income tax return. For 1964, 
a separate line on the return was provided for them. 
The large amount of employee expenses compensated for 
under reimbursement or other expense allowance ar- 
rangements with employers do not appear on the form and 
cannot be tabulated. Certain other unreimbursed ex- 
penses such as cost of work clothes and uniforms, 
subscriptions to professional journals, union dues, small 
tools and supplies, employment agency fees, etc., can 
be taken as itemized deductions on the return. 

As shown in table D, employee business expenses, 
amounting to more than $2.2 billion, were reported on 
2.2 million individual income tax returns. Half of the 
returns with this item were taxable returns with adjusted 
gross income between $7,000 and $15,000. These returns 
contained 46 percent of the total excludable employee 
business expenses. 



Self-Employment Pension Deduction 

The Self-Employed Individuals Tax Retirement Act of 
1962, which first became effective in 1963, treats self- 
employed individuals as employees of the business which 
they conduct so that they may be covered under qualified 
employee retirement plans, such as pension, profit- 
sharing, annuity, and bond purchase plans, in much the 
same manner as their employees. 



Table F. —RETURNS WITH INCOME AVERAGING: NUMBER OF RETURNS AND 
INCOME TAX BEFORE CREDITS, BEFORE AND AFTER INCOME AVERAGING, 
BY ADJUSTED GROSS INCOME CLASSES, 1964 



Table E . —RETURNS W 
RETURNS, ADJUSTED 


TH SELF-EMPLOYMENT PENSION 
GROSS INCOME, AND AMOUNT BY 
1964 


DEDUCTION: NUMBER OF 
ADJUSTED GROS^ INCOME 




asses 


1.63 






Number 


gross 


fn,o„.„^ 


Number 


Adjusted 


Amount 






(1) 


(2) 


(3) 


(4) 


(5) 


(6) 




28,919 


'559,380 


19,483 


38,766 


'922,041 












3,995 
6,9« 

3', 141 

8,157 
1,812 

1,837 
16*, 178 


U,(X3 
50,230 
35,286 
55,293 
261,702 
117,173 
23,828 

11,815 

'15,206 
50,230 
493,9i4 


712 
2,492 

S,'216 
2,227 

1,678 

2,347 
2,493 

14,643 


3,137 
8,383 

12', 772 
3,604 

1,509 

8^484 
25,738 


15,079 

61,333 
57,771 
76,892 
424,833 
231,273 

'4,650 

'16,146 
62,416 
343,479 








$5,000 under $10,000 


2,486 














$100,000 or more 












Returns $5,000 under :plO,000. 









NOTE: Detail may not add to total because of rounding. 

For 1964, some 39,000 individual income tax returns 
showed deductions for contributions to self-employment 
retirement plans. This was a 34 percent increase over 
the 1963 figure of 29,000. The $26 million deducted for 
1964 represented a growth of 35 percent over the $19 
million deducted in the previous year. Table E shows 
that almost 70 percent of the amount deducted in 1964 
was taken on taxable returns with adjusted gross income 
over $20,000. 





Number of 


Income 






----- ^ — 


Before 


averagir,g 


?iiS"' 




1) 


■ i) 


',3) 


(4) 




246,057 


f7V,o.»d d^ll.,.) 




1,836,840 


1,704,123 


716 






eturns total 


244,784 

39^411 
47,386 
116,525 
23,481 
3,990 

1,273 


1,830,452 

691444 
136,007 
802,748 
516,843 

6.338 


1,699,431 
12,068 

126|359 
737,787 
480,577 


131,025 
1,208 


















36,263 















INCOME AVERAGING 

The income averaging computation, available for the 
first time in 1964, was designed to benefit those indi- 
viduals who have an unusually large amount of taxable 
income in any one year. Income averaging has the effect 
of spreading income over a five-year period. This per- 
mits a part of the unusually large amount of taxable 
income to be taxed in lower brackets, resulting in a 
reduction of the overall amount of tax due. 

As shown in table F, taxpayers on some 246,000 returns 
made use of income averaging in 1964 and the tax savings 
from this computation averaged approximately 7 percent. 
The income tax before credits on these returns, before 
income averaging, amounted to $1.8 billion. After income 
averaging, the amount was $1.7 billion, reflecting a total 
tax savings of $0.1 billion. Nearly 67 percent of the re- 
turns with income averaging had adjusted gross income 
between $15,000 and $50,000, 

The income averaging method may be applied to many 
different kinds of income such as salaries, dividends, 
interest, or ordinary income from a sole proprietorship 
or partnership. However, it is not applicable to other 
types of income such as long-term capital gains, wager- 
ing, or income from properties acquired by inheritance 
or gift in certain cases. 

Table G shows that approximately one-half of the ad- 
justed gross income on returns with income averaging 
was derived from a business or profession, a farm, or a 
partnership. Salaries and wages, the next most import- 
ant source on returns with income averaging, comprised 
38 percent of the adjusted gross income. This income 
pattern differed markedly from the pattern for all indi- 
vidual income tax returns. For example, salaries and 
wages comprised 81 percent of the adjusted gross income 
reported on all individual income tax returns and income 
from a business or profession, a farm, or a partnership 
comprised only 9 percent of adjusted gross income. The 
importance of earned income from a sole proprietorship 
or partnership to many taxpayers who used income aver- 
aging was further demonstratedby the fact that 42 percent 
of such returns were subject to the self-employment tax. 
Only 9 percent of the 65,4 million individual income tax 
returns filed for 1964 were subject to this tax, 

A detailed explanation of the income averaging calcula- 
tion and applicable rules is given in the instructions for 
schedule G in section 10 of this report. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Taxable ret'orns, tota: 

$15J000 -jjiiler }2c',X 
$20,000 under $50, « 
$50,000 under $100, ( 
$100,000 under $500, 
$500,000 under $1,0( 



581,264 
38,103 
22,730 



2,*71 
18)321 



35,751 
42,411 

103,065 
29,365 



2,578 
10,961 

5,875 



Adjusted grcss 



Sales of capital assets 



Grand total 

Taxable returns, total. 

Under $10,000 

$10,000 under $15,000 
$15,000 under $20,000 
$20,000 under $50,000 
$50,000 under $100,00 
$100,000 under $500,01 
$500,000 under $1,000 
$1,000,000 or lore... 

Nontaxable returns 



22,742 
1,081 



31,508 
3,199 



329,178 

133,718 

2,166 



84,155 
67,254 
63,182 

18,045 



$10,000 under $15,000... 
$15,000 under $20,000... 
$20,000 under $50,000... 
$50,000 under $100,000.. 
$100,000 under $500,000. 
$500,000 under $l,000,00( 



287,300 
3,006 



2,503 
2,503 



Retirement income 



1,878,573 1,704,128 



Taxable returns. 



Under $10,000 

$10,000 under $15,000. . 
$15,000 under $20,000.. 
$20,000 under $50,000.. 
$50,000 under $100,000. 
$100,000 under $500,000 
$500,000 under $1,000, 0( 



70,812 
350,657 
629,109 
1,924,756 
,320,735 
505,168 
33,263 



DIVIDENDS IN ADJUSTED GROSS INCOME SHOW 
SMALL INCREASE BECAUSE OF HIGHER EXCLUSION 

Although the amount of total foreign and domestic divi- 
dends received increased 7.2 percent over 1963, the 
amount included in adjusted gross income rose only a 



ita" and "Explanation of Classifications and Tenns." 

moderate 4,1 percent to a total of $11,9 billion (table H), 
This is a result of an increase in the amounts of divi- 
dends which may be excluded from adjusted gross income. 
Figures reflecting the increased dividend exclusion are 
presented in table I. Prior to the Revenue Act of 1964 
the dividend exclusion could not exceed $50 per tax- 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



TAXABLE INCOME, AND TAX ITEMS, BY 





= :^ 






~1 


Tax fro 


rented 


Self-employment tax 


-~ 






Foreign taxe 


spaid 


Other 


7^1 






Adjusted gross income classes 


Number of 
returns 


Amount 

(•n,<».w 

doll.,.) 


""JSnf 


'= 


Number of 


dolUr.) 


Number of 


Amount 


Number of 


= 




(54) 


(55) 


(56) 


(57) 


(58) 


(59) 


(60) 


(61) 










3,719 


2,153 


65,176 


5,324 


1,661,763 


5,486 


978 


102,887 


25,955 


151,444 


454,lo6 




3,718 

1;: 

12 

1 


b86 
313 


ii;;::: 

( 35,759 
13,842 
2,963 

51 
10 


5,322 
65 

1,921 

1,687 

1,343 

101 

38 


\ 62^432 
122,273 
720,867 
472,235 
243,356 
18,262 


5,478 

1 - 

762 
2,947 

(M 


976 
53 
35 

254 

101 


102,473 

21^059 
49,930 
8,413 
1,420 

15 


25,848 
1,183 

i'.ZOl 
12,799 

2,157 


151,023 
9,815 
26,954 
30,644 

13,894 
2,439 

421 


453,804 


Under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 


6,377 
32,905 
51,425 
214,993 

113,036 

34,414 

522 

U2 








Nontaxable ret^=. 


362 




Payments 


tioi^"" 










Amount 


Refund oa 


sted '"""'" 


Credit on 1965 tax 


Adjusted gross income classes 


returns 


Amount 


"^?Snf 


'^S 


TZ^' 


Amount 
dcll.r.) 


Number of 


Amount 




(55) 


(66) 


(67) 


(68) 


(o9) 


(70) 


(71) 


(72) 








143,214 


657,132 


205,311 


608,114 


40,170 


30,730 


24,971 


13,367 


16,460 


17,362 




143,091 
3,272 
13,942 
23,235 
79,461 
19,561 

10 


656,904 

li;226 
30,815 

207,640 
112,480 

'262 


204,965 
10,787 
40 ; 847 

' 54 


5,051 
24,226 
48,418 
248,153 
160,659 
99,086 
12,000 
10,431 


39,744 
3,205 

18^002 

'349 
3 


1,752 
15^841 
6,689 

'lis 


24,760 
2,903 

9 ',052 


13,138 
40S 
1,391 
2,243 
6,791 
1,700 


2,485 
298 


17,019 


Taxable returns, to 


410 






$15,000 under $20,000 

$20,000 under $50,000 


9,050 




115 










(M 






1_ 




346 




90 


L 


572 


- 


1. 


- 




343 



TOTAL FOREIGN AND DOMESTIC DIVIDENDS RECEIVED: FORM 1040 RETURNS WITH DIVIDENDS ELIGIBLE AND INELIGIBLE FOR EXCLUSION, AMOUNT OF 
-TOTAL FOREIGN AND "^^^^^^'^^^l ^ DIVIDENDS IN ADJUSTED GROSS INCOME, BY ADJUSTED GROSS INCOME CLASSES 







[Taxable and nontaxable 


returns ] 

















Domes ti 




received 




Dividend 


TlZT 


gross 


in adjusted 




Total 


Not eligible for 


Eligible fo 


excisions 


income 


Adjusted gross income classes 


Number of 


Amount 


Number of 


Amount^ 


TZZ' 


Amount 


T^Z^' 


nZ^d 


""t^s' 


Amount 




(1) 




(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 






9,749,169 


12,828,144 


1,123,490 


350,931 


9,446,952 


12,477,204 


9,341,594 


910,815 


5,665,760 


11,917,365 


d 


2,625,043 
3,218,993 
3,905,136 


1,364,662 
1,640,330 
9,823,153 


E'E 


46,808 
36,159 
267,964 


2,481,436 
3,119,425 
3,846,091 


1,317,843 
1,604,172 
9,555,189 


2,433,776 
3,080,731 
3,827,090 


218,266 
433,520 


1,726,034 
1,594,905 
2,345,820 


1,146,413 




1,381,324 


$10, 000 or more 


9,389,628 



MOTE: Detail may i 



Table 1.— RETURNS WITH DIVIDEN 
AMOUNT, BY ADJUSTED GROS 


EXCLUSION: NUMBER 
INCOME CLASSES, 19 


OF RETURNS AND 
3 AND 1964 




1963 


1964 


Adjusted gross income classes 


Number of 


t7V)u=«.d 


Number of 


(■Thou.^d 
doI,.,„ 










(4) 


Grand total 


8,580,922 


516,879 


9,341,594 


910,315 




7,560,608 

215,189 

1,147,692 

562,821 

596,384 

1,703,591 

1,740,313 

1,594,618 

1,120,314 


453,246 
9,542 
58,298 
29,403 
31,317 

117^953 
63,633 


8,120,337 
181,157 

518; 973 
1,846,203 
1,973,314 
1,341,163 

1,221,257 


792,594 


'"^ ^ ' 


14,087 








46,456 


Ifi'oOO "°der $7' 000 
















Nontaxable returns 


118,221 



payer. The Revenue Act of 1964 changed the amount to 
$100 so that, if both husband and wife have dividends of 
$100 or more on a joint return, the exclusion became 
$200, For 1964, taxpayers on 9.3 million returns claimed 
exclusions for dividends. This was a 7.6 percent in- 
crease over 1963. The amount of the exclusion, however, 
jumped more than 76 percent from $517 million in 1963 
to $911 million in 1964. Nearly half of the $911 million 
(47 percent) was concentrated on taxable returns with 
adjusted gross income of $10,000 or more. More de- 
tailed information on dividends received is contained in 
table 11. 

The dividends received credit was cut in half by the 
Revenue Act of 1964 and will be eliminated for 1965, 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



The amount of the credit was not tabulated separately 
but is included in "Other tax credits" in table 4. 



NEW INFORMATION SHOWN FOR SALES OF 
DEPRECIABLE PROPERTY 

Under Section 1245 of the Internal Revenue Code of 
1954, the gain from sale or other disposition of certain 
depreciable property, which prior to 1963 was treated 
wholly as a capital gain, is taxable as ordinary income 
to the extent of depreciation deducted after 1961. These 
provisions apply to dispositions of such property after 
1962. The portion of gain not treated as ordinary income 
was combined with gain and losses from section 1231 
property (business assets and livestock, for the most 
part). If the combined amount was a net gain, the gain was 
treated as capital gain. If the combined amount was a loss, 
the loss was treated as an ordinary loss and reported as 
"Net loss from sales of property other than capital 
assets." 

The property covered under section 1245 is depreciable 
property (other than livestock) used in trade or business 
or held for the production of income. Included is per- 
sonal property or other tangible property used as an 
integral part of (a) manufacturing, (b) production, (c) ex- 
traction, or (d) the furnishing of transportation, com- 
munications, electrical energy, gas, water, or sewage 
disposal services. Also included are researcher storage 
facilities used in connection with the activities in (a) - 
(d) above. For 1964, elevators and escalators were added 
to this list of property. 



Similarly, under section 1250 of the Code, effective 
after 1963, ordinary income treatment was given to a 
portion of the lower of either (1) gain from the disposition 
of real property used in a trade or business or (2) de- 
preciation deductions on such property claimed after 
1963 in excess of depreciation calculated under the 
straight line method. The portion of the gain not treated 
as ordinary income was combined with gains and losses 
from section 1231 property, and treated as described 
above. 





of depreciable property 


Other gain 
of depreciab 


from sales 
e property 


Adjusted gross income classes 


Number of 


Amount 

dollar.) 


rz,:' 


Amount 




(1) 


(2) 


(3) 


(4) 




187,952 


130,053 


148,026 


529,862 








147,285 
27,053 
55,085 
27,156 
12,160 
20,621 
3,856 
1,354 

40,667 


9,856 
26,110 

10|287 
25,190 
6,237 
3,891 

30,179 


118,641 
19,129 
43,497 
22,974 
10,783 
17,532 
3,459 

29,385 






17,888 




94,875 
















52,095 















About 188,000 returns showed $130 million of ordinary 
gain from sales of section 1245 and section 1250 property, 
as shown in table J. Other gain from sales of such prop- 
erty was reported on 148,000 returns in the amount of 
$530 million. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



|sxi 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



-SOURCES OF INCOME AND LOSS. 





1 


fz:' 


- 






Salaries 


and uage 








Business or 


pK>fessior 




Farm 




gross 


(grcss) 


Net profit 


Net loss 


Net profit 


Net loss 


A<ij-j£tcd gross income classes "^ 


Number of 
returns 


Amount 


'::TZri' 


Amount 
dollar.) 


Number of 
retur.-is 


Amount 


Number of 


Amount 


"r":ru:."^ 


Amount 






M 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


Total 65 


375,601 


'396,659,831 


57,523,861 


323.265,701 


4,889 


,491 


24,801,637 


903,499 


1,809,362 


2,000,249 


4,702,563 


1,109,829 


2,0,;' . 


No 
Ui. 
$6 
$1 
$2 
$3 
*4 
$5 
$6 
$7 
$8 
$9 
$1 
$1 
$2 
$5 
$1 
*5 
$1 


adjusted gross income 

der $600 3 

30 under $1,000.. 3 

000 under $2,000 7 

000 under $3,000 6 

000 under $4,000 6 

000 under $5,000 5 

000 under $6,000 5 

000 under $7,000 5 

000 under $8,000 4 

000 under $9,000 3 

000 under $10,000 3 

3,000 under $15,000 6 

aioOO under i5o',OOo'.'.'.'.'.V.'.'.'.'.'.'.'.'.'.'.'.'.'. I 

3,000 under $100,000 

30,000 under $500,000 

30,000 under $1,000,000 

000,000 or more 


937,988 
107,878 
204,380 
211,330 
125,320 
974,720 

415>50 
837,778 
875,555 
027,314 
609,927 
460,198 
211,761 

34,946 
1,073 


1,275,784 
2,477,991 
10,587,466 
15,530,018 
21,448,932 
26,875,193 
31,590,278 
35,142,649 
36,213,181 
32,850,227 
28,691,531 
78,290,817 
24,832,960 
34,505,018 

5,707,258 
710,407 


3,436,143 
2,505,476 
5,722,002 
5,113,759 
5,348,207 
5,384,850 
5,313,432 
5,099,173 
4,578,105 
3,674,215 
2,870,824 
6,150,330 
1,235,216 
856,997 

22,933 

697 


1,165,624 
1,971,431 
8,052,535 
12,233,016 
17,958,763 
23,361,552 
28,218,631 
31,952,890 
33,152,678 
30,042,109 
26,163,412 
68,572,161 
18,280,803 
15,948,079 

1,206,204 


129 
158 
435 

455 
452 

335 
270 

586 
234 
313 


,812 

;oo2 

,038 
,493 
955 
704 

338 
103 
077 
699 
997 
310 

658 
90 
30 


61,178 

64,620 

113,465 

516,877 

827,345 

1,093,020 

1,331,460 

1,346,789 

1,309,315 

1,276,238 

i; 122; 190 

3,826,810 

2,582,315 

6,386,259 

1,558,815 

295,674 

10,753 

9,016 


161,153 
34,001 
21,082 

59^496 

75,263 
70,091 
59,073 

37^421 
33,338 
23,046 

41866 

2,103 

133 


776,751 
41,292 
30,652 
75,568 
77,585 
69,286 
84,251 
76,787 
62,722 
58,510 
44,328 
34,341 

101,350 
36,975 

124,949 
42,168 
51,640 
10,'303 


6,562 
157,850 

233; 569 
226,598 

145,917 
112,537 
88,964 

48;709 
103,363 

3i;400 
3,807 

11 


10,431 
50,930 
92,852 
360,224 
448,160 

434,072 
338,338 
307,466 

205;277 
550,526 
254,642 
375,670 
68,382 

'442 


160,871 

9i;i27 
93,719 
100,203 
108,371 
97,122 
76,976 
69,486 
49,888 
32,269 

is; 274 
29,701 
6,927 

80 


42;;. 

129;297 
123,274 
100,365 

81 ; 694 
51,161 
48,977 

50;792 
164,897 
57,335 

5; 922 
4,711 


Re 


urns under $5,000 

urns $5,000 under $10,000 | „ 

urns $10,000 or more | 






; 




2,103 
1.D08 


742 
911 


4,027,965 
6,104,030 
14,669,642 


474,223 
289,627 


1,156,384 
276,689 


1,368,436 
171 ; 071 


1,917,010 
1,513,114 
1,272,441 


325; 741 

128,972 


1,219,925 
375,271 
471,979 






Partnership 






Ord 


inary gain from sales 




Net profit 


Net loss 




net gai 




Net loss 


property 




umber of 


Amount 


Number of 


'SS 


'"^^:^' 


fn,<«,»™i 


Number of 


doll.,.) 


"^TZ^' 


Amount 

doll.r.j 


Un 

$6 

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

Re 
Re 




(13) 


(14) 


(15) 


(it) 


(17) 


(IE) 


(19) 


(20) 


(21) 


(22) 




1,499,482 


10,861,548 




1,130,831 


5,320,388 


8,909,143 


1,501,575 


9o9,991 


137,952 


130,058 








adjusted £ross incom 


11,348 
21,273 
25,687 
77,435 
84,588 
84,407 
94,332 

1021347 
90,071 
83,105 

241,063 
126,850 
235,752 

10,423 
226 


60,447 
10,636 

lt:lll 

146,269 
195,528 
269,605 

365;064 
381,649 
350,761 

1,410,661 
1,060,714 
3,716,459 
1,513,347 
617,572 
21,197 


10 

21 
21 
19 
22 

20 
25 

64 
32 
60 

13 


270 
600 
,878 

228 
348 
717 

012 
672 
482 

i 

638 
235 


339,482 
15,179 
8,661 
26,273 
41,446 
18,718 
26,440 
20,644 
25,226 
22,409 
23,589 

80,860 
63,430 

74,904 
U;865 


32,650 
84,677 
106,240 
360,763 
377,480 
359,857 
336,216 

334;i44 
329,130 

2S5|632 
943,044 
401,056 

27,104 
982 


lo4,557 
32,328 
35,830 

204^725 
212,998 
215,512 
231,151 
213,804 
242,791 

215i602 

838,750 

602,204 

1,822,855 

1,072,022 

1,476,658 

365,532 

535,984 


18,219 
18,202 

721805 
75,195 
92,240 

951413 
99,131 

84; 518 
292,488 
138,627 

31 ; 337 
4,721 

31 


10,117 
10,541 

44;281 
47,415 
58,571 

60;549 
60,336 

173,628 

89,380 

134,273 

24,888 

4,029 

53 

29 


2,339 
2,621 

11 ; 568 
10,702 
18,614 
12,978 
12,575 
10,627 

13; 369 
27,665 
12,262 
20,562 
3,873 
1,248 


11416 


er $600 


1,857 
1,230 

4;073 










9; 231 

7; 523 
5,769 

18,876 
10,296 

6;433 
3,424 


000 $6'ooo 
















'oOO under flOO^OOO 




0,000 under $1,000,000 








$5 000 


399,071 
437,365 


790,795 


149,392 
106,582 


476,199 
111,271 
543,361 


1,707,883 
1,613,369 


1,019,860 


371,633 
475,029 


253,774 
289,932 


62,345 


35,976 

































Footnotes at end i 



1 of the Sample and Limitations < 



"Explanation of Classif icati 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 2.— SOURCES OF INCOME AND LOSS, ADJUSTED GROSS INCOME, STANDARD DEDUCTION, AND 



ITEMIZED DEDUCTIONS, BY ADJUSTED GROSS INCOME CLASSES— Co 



Adjusted gross income 



(taxable portion) 



No adjusted gross incomi 
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.... 
$9,000 under $10,000... 
$10,000 under $15,000.. 
$15,000 under $20,000.. 
$20,000 under $50,000.. 
$50,000 under $100,000. 
$100,000 under $500,000 
$500,000 under $1,000,0( 
$1,000,000 or more 



10,755 
4,177 
1,829 



84,622 113,104 

52,974 

48,704 



280,140 
268,635 
313,696 



1,490,096 
1,409,628 
1,522,598 
1,735,514 
1,892,098 
1,900,325 



146,462 
32,517 



131,771 
102,513 
76,165 
60,907 



48,5 

90,205 
163,515 
458,157 
367,729 
306,996 
291,741 



290, 

267,578 

232,596 

192,342 

505,933 

165,946 

210,9. 



31,099 
38,935 
97,826 
99,457 
124,353 
150,063 
181,044 



17,715 
19,515 
39,787 



84,893 
128,715 
39,159 



,123,243 
420,020 
245,169 



No adjusted gross ; 

Under $0)0 

$600 under $1,000. 
$1,000 under $2,00( 
$2,000 under $3,00( 
$3,000 under $4,00( 



$15,000. 



$15,000 under $20,000. 
$20,000 under $50,000 
$50,000 under $100,001 
$100,000 under $500,01 
$500,000 under $1,000 
$1,000,000 or more... 

Returns under $5,000. 



See text for "Descriptit 

^Adjusted gross income : 

^Deficit. 

^Negative "Other source: 

NOTE: Detail may not ai 



24,299 
27,004 
19,689 
19,915 
21,223 
21,703 
25,717 



5.027 
3,159 



72,172 
251,517 
310,131 



163,473 
5,495 
5,429 



"Explanation of Classifications ( 



Total 
deduction 



9,292,207 
11,943,053 
14,676,1d7 
16,486,412 
lo,263,321 
15,846,760 
14, 624, ■ 
U, 803, 674 



50,053,084 
68,733,029 
29,355,3. 



87,219 
,295,259 
,586,960 
,772,765 



587,287 
,219,330 
,888,323 



,34A,256 
,112,552 
,503,006 



,329,982 
il5i;276 



Table 3.— SOURCES 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



INCOME AND LOSS: ALL 



Returns of single per- 
hold or surviving spouse 



ALL RETimiJS 

Adjusted gross income 

Salaries and wages (gross) 

Business or profession: 
Net profit 

Net loss 

Partnership: 
Net profit 

Sales of capital assets : 

Net gain 

Ordinary gain from sales of depre- 
ciable property 

Sales of property of her than capital 
Net gain 

Dividends in adjusted gross income... 

Interest received 

Pension and annuities (taxable 
portion) 

Royalties: 

Net income 

Net loss 

Retuns With Standard Deduction 

Adjusted gross income 

Salaries and vrages (gross) 

Business or profession: 

Net profit 

Net profit 

Partnership: 

Net loss 

Sales of capital assets: 

Net gain 

Ordinaiy gain from sales of depre- 
ciable property 

Sales of property other than capital 

Net gain 

Net loss 

Dividends in adjusted gross income. 
Pensions and annuities (taxable 

Net loss 

Net loss 

Other sources 

Footnotes at end of table. See t 



1,809,362 
4,702,563 



7,084, 
3,491, 



549,720 
114,514 

2,033,042 



221,522 
,245,428 



,512, 



32,323 

635,298 

1,979,340 



439,442 
992,545 



Sample and Limit 



(^) 
e Data" 



172,956 
7,027 

82,556 



60,897 I (^) 
"Explanation of Classi 



86,613 
101,196 



8,951 
( = ) 
62,407 



107,120 
,537,700 



152,802 
1,025,251 



6,091 


3,015 


870,304 
842,399 


359,273 
1,271,040 


292,903 


379,050 


445,717 
124,332 


385,430 
53,273 



12 

Table 3. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



-SOURCES OF INCOME AND LOSS: ALL 



Adjusted gross 



ums of Eircle per- 
or suiTTiving spouse 



Returns With Itemiaed Deductions 

Adjusted gross income 

Salaries and wages (gross ) .*. 

Business or profession: 

Net profit 

Net loss 

Partnership : 

Net profit ■. . . . 

Net loss 

Sales of capital assets: 

Net gain 

Ordinary gain from sales of depre- 
ciable property 

Sales of property other than capital 
assets: 
Net gain 

Dividends in adjusted gross income... 
Interest received 

Pensions and annuities (taxable 

Royalties : 

Net income 

Other sources 

R eturns With Ho Adjusted Gross Income 

Adjusted gross income 

Salaries and wages (gross) 

Business or profession: 
Net profit 

Net profit 

Partnership: 

Net profit 

Sales of capital assets; 

Net gain 

Net loss 

Ordinaiy gain from sales of depre- 
ciable property 

Sales of property other than capital 

Net gain 

Dividends in adjusted gross income 

Pensions and annuities (taxable 
portion) 

Net income 

Net loss 

Royalties: 

Net income 

Net loss 

Other sources 

See text for "Description of the Saj 

^Adjusted gross income less deficit 

^Estimate is not shown separately b' 

■^Number not tabulated. 

-^Deficit. 

NOTE: Detail may not add to total 



6,272 
61,333 



of high sampling 
e of rounding. 



. of Classifications 
data are included : 



Jie appropi-i 



12,076 
1,732 



-ALL RETURNS - 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

INCOME AND LOSS, EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS, BY ADJUSTED GROSS INCOME CLASSES 





Number of 




1 




n 


Sal 


— 




Busine-s or profession 


Farm 




=- 




(gross) 




Net loss 




Net loss! 


Adjusted gross income 


Number cf 
returns 


CTh<^tmnd 


Number of 
returns 




returns 


Amount 
(77,«,»,Hf 


Number of 




Number of 


Amount 




(1) 


(2) 


(3) 


(4) 


(5) 


(0) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


Grand total 


65,375,601 


187,253,469 


=396,659,831 


57,523,361 


323,265,701 


4,389,491 


24,301,637 


903,499 


1,809,362 


2,000,249 


4,702,563 


1,109,829 




Taxable returns, total 


51,306,338 


147,228,144 


376,004,749 


47,217,004 


308,286,372 


3,767,005 


22,859,688 


559,714 


699,125 


1,059,982 


3,441,638 


664,601 


1,017,855 


Under $1 000 


4,274;235 
4,230,995 
4,994,752 

5,474,381 
5,315,394 
4,801,475 
3,857,806 
3,018,742 
6,593,499 
1,456,670 
1,208,517 
158,700 
34,626 

'463 


4,706,646 
6,481,950 
10,.'.53,223 

16,306,O'.5 
17,851,139 
17,048,227 

li;i69|926 
24,186,409 

4)640; 009 
611,342 
125,511 

1)502 


486,829 

10)530)745 
17,541,509 
24,171,885 
30,105,420 
X, 503,142 
35,943,123 
32,700,244 
28,610,501 
78,094,242 
24,772,473 

10)429)137 
5,649,031 

700,233 
952,174 


3, 958) 146 
3,750,279 
4,510,389 
4,915,445 
5,100,558 
5,022,548 
4)555,715 
3,564,227 
2,865,259 
5,142,358 
1,233,570 

22)533 
685 
303 


444,486 
5,678,942 
9,171,886 
15,282,277 
21,409,124 
27,U3,295 
31,499,735 
33,001,596 
29,965,745 
26,126,186 
68,504,550 
18,261,745 
15)914307 
3,525,076 
1,138,354 
46,755 
21,302 


11,311 

223)531 
322,204 
376,105 

352)955 
326,686 
266,356 
213,557 
581,345 
234,029 
312,559 

4)533 
29 


771)446 
1,092,611 
1,215,056 
1,244,110 
1,229,628 
1,100,132 
1,032,707 
3,785,715 
2,571,80; 
6,374,576 
1,555,742 

294,563 
10,745 
9,010 


(') 

45)330 
60,329 

57)572 
57,561 
45,868 
37,068 
82,271 
22,890 
25,494 
4,808 
1,939 
129 


(') 

24)055 
36,655 
60,795 

55)573 
48,523 
43,137 
32,399 
92,359 
34,449 
96,537 

42)957 

•9' 589° 
9,539 


6,553 

113)509 
137,046 
144,889 

34)530 
62,192 

101,278 
31,521 
31,304 

'344 
22 


173)703 
270,118 
342,022 

292)703 
280,797 
210,218 

531,721 
253,704 
373,935 

21)515 

1,075 
415 


(') 

16, 596 

43,088 

71,275 

90,340 

90, 171 

75,061 

67,377 

49,888 

70,351 
17,969 
29,394 
6,865 
2,546 
145 


'') 


$1,000 ™der $2,000 

$2,000 u:.Jer $3,000 

$J,OUO iJ:Jer $4,000 

$,.,Uv.j ixJer $5,000 

$5,1>J0 ur,aer $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 $50,000 

$50,000 under $100,000 

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


14,568 
41,974 
80,682 
97,793 
88,615 
83,655 
70,807 
51,161 

112,499 
48,817 

53)503 
5,295 






Nontaxable returns, total.... 


14,069,263 


40,025,325 


=20,655, 082 


10,305,857 


14,979,329 


1,122,486 


1,941,949 


343,785 


1,110,237 


940,267 


1,260,875 


445,228 


1,049,323 


No adjusted gross income... 


3,937,988 
2,588,100 
2,930,145 
1,980,335 
1,130,568 
609,471 
460,339 


5,255,204 
4,241,139 

7;942;917 
5,739,768 
3,730,219 
3,147,180 


1,275,784 
1,991,162 
4,281,434 

3)907)423 
2,703,309 
3,148,949 


106,834 

3,436,143 

2,021,956 

1,763,356 

1,333,479 

837,813 

468,405 

333,366 


281, 768 
1,165,624 
1,526,945 
2,373,593 
3,061,130 
2,676,486 
1,952,428 
1,941,355 


21,733 

145)191 
315,852 
226,812 
133,751 
76,600 
71,730 


81,178 
54,620 
103,529 
358,563 
414,651 

233)349 

348,384 


161,153 

20)552 
46,223 
34,175 
20,237 
12,210 
15,173 


775,751 

29)718 
64,175 
53,528 
32,630 
23,455 
38,637 


6,562 

145)349 
282,154 
169,960 

45)074 
42,256 


10,481 
50,930 
88,087 
234,031 
269,452 
205,808 
136,415 
215,671 


160,371 

35)350 
74,531 
50,631 
23,926 

13)022 


627,755 
70, 133 


$600 under $1,000 

$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


93)073 
57,363 
43,615 
30,480 








32,993,932 
22,904,054 
9,477,614 


72,712,547 
79,474,725 


=76,643,132 
164,487,867 
155,528,831 


21)535)749 
3,370,841 


65,024,638 
149,529,719 
103,711,291 


2,103,742 
1,608,911 
1,176,837 


14)659)542 


474,223 
289,627 
139,547 


1,156,384 
276,689 
376,290 


1,368,436 
460,739 
171,071 


1,917,010 
1,513,114 
1,272,441 


655,116 
325,741 


1,219,925 


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


375,271 




Partnership 


Sales of capital assets 


Ordinary gain from 

sales of depreciable 

property 


Sales of property other than 




Net profit 


Net loss 


Net gain 


Net loss 


Net gair. 


Net loss 


classes 


Number of 


Amount 
Joil.r.J 


"T.Zi' 


Amount 


returns 


Amount 


Number of 


Amount 


Number of 


Amount 


Number of 


Amount 

doll.,.) 


"^u^n^' 


Amo-j.,1 




(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 


Grand total 


1,499,482 


10,3bl,548 


432,971 


1,130,831 


5,320,888 


8,909,143 


1,501,575 


959,991 


187,952 


130,058 


82,480 


73,140 


186,299 


245,469 


Taxable returns, total 


l,2-»..v.- 


,„,,.„-,....,, 


-21,.- 


...n.... 


'.,-'^-.?2^. 


»,!•-.;, =?3 


i,2»l,318 


812,401 


147,285 


99,879 


59,570 


55,009 


121,695 


141,497 




95^669 
36,450 
81,098 

239,082 
126,237 
234,900 

'225 


21;) 558 

290,703 

337,734 

365,097 

346,027 

293,431 

1,399,761 

1,054,211 

3,698,316 

1,511,609 

615,451 

21,186 

13,806 


18)366 
24,159 
19,180 

53,673 
32,132 
50,144 

4)455 
224 

121 


13)355 

17,813 
14,595 
15,047 
53,168 
58,482 
175,090 

70)921 
12,831 

13,115 


273)533 
326, 551 
321,861 
320,485 
299,187 

937,481 
399,457 
527,769 

25)957 
968 


197)547 

219,875 
211,293 
205,776 
866,607 
589,609 
1,786,803 

1)454)157 
359,558 
520,895 


"!.)-"72 
76,764 

92)171 
97,523 
99,158 
84,115 
290,350 
138,222 
186,679 
31,262 

' 58 


(*) 
9,395 
20,y.i 
31,685 
48,190 

58)766 
59,335 
58,835 
49,320 

89)052 
133,352 

3)339 
53 
29 


(') 
2,213 
4,785 
6,569 
13,335 
11,154 
11,355 
10,123 
9,518 
12,915 

12)160 
20,621 
3,856 

' 80 


(*) 

448 
1,556 
2,267 
5,578 
3,682 
7,045 
4,944 
3,650 
5,789 

10)237 
25,190 
5,237 
3,343 

172 


[ 3,914 

4)753 
6,027 
3,923 
3,910 

?)S? 

12,681 

5)041 
354 

283 


820 
2,743 

5,497 
3,030 
1,568 

2)923 
10,469 

10)302 
4,172 
1,791 

11 


1 6,132 

9,853 
9,658 
10,908 

9)542 
19,684 

14)712 
3,321 
1,393 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

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


3,997 
5)?S 
9,488 
8,637 
8,446 

21,071 
13,622 
28,286 
10,221 
6,420 
262 






Nontaxable returns, total.... 


220,985 


461,770 


111,282 


529,974 


975,554 


804,610 


210,257 


157,590 


40,667 


30,179 


22,910 


18,131 


64,604 


103,972 


No adjusted gross i.icome... 


11,348 
21,273 
22,773 
48,059 
41,039 
31,867 
18,300 
26,326 


60,447 
10,636 
16,498 
56,049 
66)905 
73,316 

123)371 


45,270 
10,600 
7,475 
14,732 
12,895 

8)895 


339,482 
15,179 
3,532 
21,260 
33,304 
8,202 
9,025 
94,940 


82,650 
84,677 
96,430 
253,106 
198,678 
115,553 
62,684 
71,731 


154,557 
32,328 
33,443 

119,481 

L23,738 
76,286 
51,540 

203,187 


39,812 

17)031 
37,207 
39,677 
23,624 
15,476 
19,161 


48,335 
10,117 

25)119 
23,936 
15,730 
10,381 
13,975 


5,840 
2,339 
2 520 
7,947 
6 733 

4 37 


11,416 

3,606 
2 517 

3*653 


2,571 

2' 608 


2,995 


13,037 
4,137 


65,553 






$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


7,446 
7,266 
3,960 






Returns under $5 000 


::"::- 














253 774 










84 o22 

52 074 




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




175)999 


5 


43)351 


1,61 
1,99 


3,369 


1,125, 
6,764, 


277 
004 


654) 


029 
908 


289,932 
426,286 


" 










21 


Id 9^ 





INDIVIDUAL INCOME TAX RETURNS FOR 1964 

INCOME AND LOSS, EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS, BY ADJUSTED GROSS INCOME CLASSES- 





Dividends 


in adjusted 






pernio 


■.S'„.. 




;t,..au... 


Adjusted gross Income 


gross income 




U.on) 


Net i, come 


Net loss 


Net i. com. 


Net IDSS 


Number of 


'S 


returns 


Amount 


returns 


Amount 




Amount 

*II.r.) 


Number of 


<fc/:ar.J 


Number of 
returns 


'^— " 'TtZnt 


(Thou,M,d 




(2S1 


(29) 


(30) 


(31) 


132) 


(33) 


(34) 


(35) 


(36) 


(37) 


(33) 


(3V) 


(40) 




























• 










Taxable returns, total 




























72,222 


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 $5,000 

$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 $50,000 

$50,000 under $100,000 

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


11,402 
118,670 
208,596 

278; 809 
321,896 

33i;085 
287,840 
272,713 

489|l75 
691,040 
130,529 
31,988 

'452 


3,154 
60,808 
145,401 

244,377 
251,392 

2591735 
238,091 
1,150,842 
929, 885 
2,951,058 
1,771,274 
1,743,459 

389^755 


512; 730 

831,616 

1,105,413 

1,665,631 
1,864,964 

1; 720; 220 
1,462, 590 
4,137,065 

i;046;522 
145,979 
32,217 

434 


332; 709 
449,017 

549,843 
573,464 

522; 070 

445,301 

1,541,221 

1,364; 306 
424,222 
210,591 

15;902 


34,784 
100,492 
126,386 
140,137 
116,317 

97,395 

60;903 
48,155 
125,317 
46,496 
56,821 
11, 4U 
3,630 

73 


35,555 
134,468 
223,303 

210,507 
184,324 

130;592 
116,677 
275,406 

165;923 
50,764 
25,700 


ao;653 

133,033 
212,587 
245,967 
257,123 
281,497 
263,861 

190;734 
503,301 
155,078 
210,241 
35,503 
3,305 

121 


102; 131 
184,450 

199,741 
180,701 
162,459 

123; 823 
504,020 
290,679 
640,715 
202,902 
73,694 

i;585 


25,735 
52,355 
92,832 
127,905 
165,304 
183,127 

16S;346 
137,394 
361,876 
99,741 
95,382 
15,796 
4,091 

100 


8,482 
18,897 
42,446 

30,446 
77,963 

65;513 
206,016 

125;924 
37,494 
24,239 
1,420 
1,733 


7,350 
18,051 
26,496 

26,967 
28,479 
26,025 

19; 664 
64,143 

51; 023 
11,646 
4,290 

78 


3,738 
9,441 
12,612 
15,641 
17,908 
20,055 

15;767 
69,204 
55,453 
142,882 
75,799 
68,329 

5;465 


I 2,007 

j 1,907 

5,382 

5; 420 

1,781 

372 

17 


1,242 

780 

6,622 

19; 818 
8,703 
12,472 






Nontaxable returns, total.... 


910,503 


791,712 


3,247,279 


1,675,565 


745,021 


1,061,350 


1,084,686 


854,855 


328,174 


304,555 


119,749 


111,849 


4,986 


7,379 


NO adj^ted gross income... 


42,244 
61,010 

2?^;4u 

206,^.50 
109,444 

54,558 


46,171 
14,470 

127^757 
130,025 
90,559 

284; 487 


142,281 
306,896 

1,090;262 
658,480 
304,215 

139;605 


59,988 
140,820 
521,352 

403, !■ . 

211,-; 

103,.:...^ 


6,728 
16,965 
51,740 


6,272 
3,555 
31,455 


90,205 


61,333 
32,360 

81,077 


37; 133 


17,715 
13,744 


12,386 
11,483 
12,902 


3,499 


1: 


854 






$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


2,377 








2; 345^320 


1,146,413 
9; 339; 628 


6,978,231 
5; 527; 012 


3,012,131 
4; 373; 193 


'420; 020 
245,169 


'S'iSg 


i;2oi;527 


1,291,717 










3,033 




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


18, IM 




Other 


Adjustments 


Total 


Exemptions 


Number of 
taxable 


Taxable income 


before"'' 
credits 




Adjusted gross income 


~-?-nr 


*;;.!■.; 


Number of 


Amount 


Retirement income 


Investment 


Number of 


'^S 


"^j:^.^ 


'S 






(43) 


(44) 


(-5) 


14.;.) 


(47) 


(43) 


(49) 


(50) 


(51) 




1 53 ) 


(54) 


0^^„a ^t3l 


4,627,749 


3,177,195 


2,879,266 


66,9S°,9n8 


12,352,080 


13,452,530 


51,923,075 


229,375,078 


47,896,997 


1,442,389 


183,369 


l,797,4o5 


312,690 


Taxable returns, total 


4,436,733 


2,992,498 


2,613,095 


58,403,521 


83,336,886 


. 


51,30f,,33e 


229,268,292 


47,792,076 


1,040,541 


142,522 


1,601,464 


257,427 


41 000 


7,846 
101,628 

2171665 
241,416 

2221829 
232,360 

399U8I 

5; 608 
3,886 


3,700 
45,169 

154; 390 
248,642 

337;445 
298,918 

640,578 
163,745 
117,187 

2; 020 


28,486 

121; 186 
196,353 
255,470 
250,147 
273,073 
235,105 

542,830 
184,160 
195,353 

7;651 
331 
122 


143,512 
1,352,724 

2; 755; 480 
3,798,886 

5;472;934 
5,709,244 
5,212,940 
4,487,505 
11,667,568 
3,569,435 
4,792,002 

i;05i;705 
140,481 
194,999 


311,866 
2,823,988 
3,389,170 
6,271,934 
8,203,683 
9,783,627 
10,710,684 
10,228,936 
8,437,332 

14,511,845 
3,232,619 
2,784,005 

75; 306 
2,179 

901 




'1%777 

m;230;995 
4,994,752 
5,365,249 
5,474,381 
5,315,394 
4,801,475 
3,857,806 
3,018,742 
6,593,499 
1,456,670 
1,208,517 

34; 626 
1,057 


31,204 
2,130,143 

3; 515; 230 
12,170,876 

18; 319; 522 
20,004,943 
19,049,927 
17,421,037 
51,914,829 
17,970,472 
26,832,008 

4; 522; 030 
557,625 
756,274 


345; 269 

1,453; 237 
2,111,241 
2,713,377 
3,219,608 
3,556,247 
3,429,478 

9,373,997 
3,764,292 
7,02i;623 

2;272;681 
313,317 
433,367 


10,175 
109,335 
159,352 
140,235 
124,711 

63; 364 

61,016 

110,590 
47,373 
66,955 

4;721 
157 
84 


302 
3,083 

18; 025 
18,647 
10; 133 
6;666 

7; 364 
11,402 

28 
16 


(') 

19,065 

55,773 

114; 716 
134,688 

107; 420 
92,026 

14i;823 
260,223 
51,209 

'443 
209 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

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


724 
3,078 
6,573 
10,258 
13,673 
U,061 
14,314 
12,991 
12,412 
43,992 
28,254 
65,458 
20,520 
9,234 
620 
761 






Nontaxable returns , total 


191,016 


184,597 


266,171 


8,535,387 


24,015,194 


13,452,530 


616,738 


606,785 


104,921 


401,848 


41,347 


196,001 


55,263 


No adjusted gross income... 


=381,067 

64; 326 
149,889 
138,399 

50; 630 
66,358 


20; 170 

25; 912 
23,526 
22,330 


26,884 
24,676 
41,708 

30; 534 

31,372 
30,733 


1,301,155 

946,693 

1,641,226 

i;i39;300 

763,565 

1,238,100 


3,153,123 
2,544,584 
5,237,092 

3;443;861 
2,238,131 

1,838,308 


3,937,988 

2,582,994 

2,838,339 

1,806,737 

979, 052 

518,038 

357,015 


5,111 

173; 598 
151,516 
91,383 
103,324 


206 
22,246 
103,418 

9i;713 
236,749 


32 
3,649 
16,893 

14; 931 

52,601 


(') 

67,672 
142,983 
106,023 


13; 371 

11,357 


23; 549 
41,423 


- 


So^'under'ii'ooO 


7 


$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


920 
2,707 
4,301 
6,303 






d *5 000 


864,444 
1,272,753 
2,490,546 


1,529;343 
937,185 


1,260;761 


17 111 549 


43,627,527 
47,634,335 
21,039,718 


13,095,519 
345,436 
11,579 


19 898 422 


90; 537; 348 
111,190,955 






73,510 


405.554 


34,872 


Returns $5,000 under $10,000. 




26,493,166 
23,385,092 


22,558,513 
9,465,035 


15,126 
26,975 


;780 


243 


;75? 








J0;691 



"Description of ' 



Classification; 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

-SOURCES OF INCOME AND LOSS, EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS, BY ADJUSTED GROSS INCOME CLASSES— Cont 



$100,000 under ! 



$1,0( 



Nontaxable returns, total. 
No adjusted gross income 

Under $600 

$1,000 under $2,000 



$2,000 under : 
$3,000 under : 



Returns under $5,0i 



153,839 
182,998 
198,153 
216,629 
234,563 
232,257 



19,072 
13,326 
36,829 
16,123 



13,000 
7,945 
14,016 



791,591 
1,644,348 
,387,142 
,819,379 



81,061 
70,913 
56,928 



2,482,198 

2,763,758 

789,482 

265,607 



\l 



126,226 
122,746 

138,384 



Cash requested 



Bonds only requested 



Grand total. 



Returns under $5,000 

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



182,388 
204,810 
204,274 
204,380 



117,157 
127,818 



267,847 
296,863 
316,350 
331,043 



230,820 
328,912 
353,211 
965,562 
254,906 
o31,690 
742,949 
405,280 
351, 516 
43,339 
7,785 

131 



593,927 
179,698 
403,547 
138,309 
65,355 



22,543 
30,913 
69,086 



132, 045 
135,324 
152,942 



11,31A 


1, 
1, 


12,409 


1, 
1, 
1, 


13,560 
2,943 
1,474 


2, 

1, 



129,176 
116,200 
108,029 
106,211 



30, 582 
26,095 
27,172 
26,661 
23,723 



272,254 
108,534 
53,919 



See text for "Description of the Sample and Limi 
^These data are based on information reported by 
n Schedule F in Statistics of Income — 1964, U.S. 
^Adjusted gross income less deficit . 
^Deficit. 

*Estimate is not shown separately- because of high sampling variabili 
^Negative "Other sources." 
NOTE: Detail may not add to total because of rounding. 



the Data" and "Explanation of Classifici 
with income from Schedule F as shown on 
Tax Returns. 



necessarily agr< 



Taxable returns, total. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



$15,CX)0 under $20,1 



turns, total., 
gross income. 



$600 under $1,0 
$1,000 under $2 
$2,000 under $3 



2,018,480 
2,887,396 
3,681,897 
4,130,139 
4,026,437 
3,413,109 
2,757,1 
6,183,003 
1,354,400 
1,106,438 
143,253 

'864 



13,519,111 
15,950,150 
15,818,9 
13,332,795 
10,750,: 
23,503,. 
5,209,157 
4,452,807 



2,303,059 
7,142,878 
13,065,329 



.,842,945 
572,296 
653,042 



2,413,223 
3,633,033 
3,342,827 
2,452,( 



3,423,( 
3,913,255 
3,84.4,111 
3,270,349 
2,635,1 
5,825,5 
1,175,304 
810,7 
98,621 



1,818,. 
5,905,. 
11, 283, e 



2,408,191 
6,064,2— 
1,497,165 



306,162 
268,536 
252,6: 
195,389 



88,665 
86,892 
231,392 



Returns under $5,0 
Returns $5,000 und 
Returns $10,000 or 



Partnership 



8,906,427 
7^943'! 



3,062,. 
5,553,471 
13,890,275 



,686 1,028,247 1,555,027 526,156 1,045,3X 
246,019 422,381 1,392,978 307,574 353,671 

- 122,703 431,142 



Ordinary gain from 
sales of depre- 
ciable property 



$9,1 



1,000.. 



$10,000 under $15,000. 
$15,000 under $2C 
$20,000 under $50,000. 
$50,000 under $100,000. 
$100,000 under $500,000, 
$500,000 under $1,000,0< 
$1,000,000 or more 



312,512 
303,149 
266,764 



16,711 
13,351 
19,760 
17,156 



473,400 
86,839 
23,288 



1,476,675 

895,121 

1,244,281 



143,869 
75,995 

118,456 
22,809 
3,426 



17,324 
3,471 
23,449 



■I';: 



5,040 
9,836 
3,923 



10,156 
8!740 



9,015 
6,559 
8,279 



20,217 
13,29-/ 
24,046 



30,L29 

28 1 649 
15,495 



6,412 
37,285 
57,112 



43,149 
40,570 
154,832 



4,932 
12,433 
18,255 
13,144 



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



231,107 
369,903 
606,517 



374,096 936,783 663,351 202,417 130,302 52,113 32,320 

89,438 96,621 1,164,972 795,844 344,874 209,567 51,894 26,526 19,798 

1,762,382 5,587,472 576,293 367,428 62,323 



for "Description of the Sample and Limitations of the Data" and "Explanation of Classifications and Terms. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



EXEMPTIONS, 



Pensions and 

annuities 

{taxable portion) 



Grand total 

Taxable returns, total. 

Under $1,000 

I under $2,000., 

I under $i,000. , 
) under $5,000., 
I under $6,000., 
1 under $7,000. 
I under $8,000. 
I under $9,000., 
1 under $10,000 



37,132 
200,827 
47-1,064 



82,016 
110,862 
129,785 



610,686 
116,653 
27,593 



217,314 
200,117 
171,037 



189,735 
76,638 

116,505 
33,804 



63,022 
2,094 
1,211 



13,361 
7,440 
10,911 



104,131 
128,742 
78,268 



45,013 
235,752 
274,779 



86,319 
36,980 
19,272 



222,768 
171,577 
100,475 



Returns under $5 
Returns $5,000 ui 
Returns $10,000 c 



361,179 
601,690 
1,470,713 



1,402,271 
1,789,457 
3,593,741 



936,214 
583,990 
533,251 



683,394 
.,035,022 655,971 
,442,228 



343,672 
767,702 
539,355 451,381 



Adjustments 



Taxable income 



Retirement incc 



197,541 
177,283 
178,8,"" 
180,909 



250,743 
214,497 
198,189 
511,116 



$50,000 unde'r $100,000... 
$100,000 under $500,000.. 
$500,000 under $l,000,Oa 



bntaxable returns, total.. 
No adjusted gross income. 

Under $600 

$600 under $1,000 

$1,000 under $2,000 



4,292,231 

1,337,480 
873,397 



$2,( 



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



7,278 
19,630 
33,978 



30,367 
30,233 
29,862 



table. See text for "Descriptio 



8,230,116 
22,251,247 
21,320,699 



Sample and Limitations of ' 



837,396 
681,897 
130,139 



6,133,003 
1,354,400 
1,106,438 



8,788,710 
12,854,651 
15,773,132 
16,261,567 
15,567,563 

16 ',563 '373 
24,490,721 
7,710,389 
3,899,681 
457,434 
537,541 



10,293 


117,512 


8,780 


116,627 




113,711 


6,095 




4,951 


34,376 


11,590 


243,830 










1,433 


43,257 







74,251 
46,202 
25,512 



1,265,352 
2,020,031 
;, 009, 530 

Data" and "Eicplanation of Classifications and Ten 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Adjusted gross income < 



Self-employment 



Tmc withheld 



,s, total. 

■ $2,000.. 
$3,000.. 

■ $A,000. . 

■ $5,000. . 



$9,000 under $10,000... 
$10,000 under $15,000.. 
.$15,000 under $20,000.. 
$20,000 under $50,000.. 
$50,1 



$100,000 under $500,000. 

.$1,000,000 or mor4...!.. 

Nontaxable returns, total. 

No adjusted gross income 



5,327 
87,58/; 
340,516 
779,311 
435,689 
146,258 
695,552 



095,811 
332,310 
878,947 
246,811 
287,620 



434,471 
387,846 
334,247 
270, 172 
213,430 
578,955 
232,797 
290,752 
34,795 
7,097 



118,533 

697,637 

1,685,780 

3,359,419 
3,865,8 
3,807,1 
3,247,3 



16,952 
147,945 
471,197 
%1,184 
,671,907 
;,418,581 
1,902,629 
,930,198 
',734,963 
,977,508 
1,357,133 
1,616,613 
752,709 
251,547 
8,382 



$600 under $1,000 
under $2,0 
under $3,0 
0, under $4,0 



Returns under $5,000. 
Returns $5,000 under : 
Returns $10,000 or mo: 



2,147 
12,610 
75,221 



116,415 23,657,423 



51,712 
67,733 



22,355 
9,251 
12,681 
72,195 



367,144 

42,943 

1,151,886 



275,839 
339,005 
269,852 



1,977,524 
12,729,632 
13,981,243 



Cash requested 



only requested 



Taxable returns, total 

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 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

Nontaxable returns, total 

No adjusted gross income 

$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 or more 

Returns under $5,000 

Returns $5,000 under $10,000 

Returns $10,000 or more 

^Adjusted gross income less deficit 

^Deficit. 

■'Estimate is not shown separately b 

^Negative "Other sources." 

NOTE: Detail may not add to total 



12,524 
38,601 
79,254 



2,679,983 
3,016,826 
2,763,780 
2,150,503 
1,576,069 



156,339 
345,990 
120,224 
52,960 
3,927 



22,028 
20,090 
20,865 
21,135 



281,938 



31,430 
11,690 
11,527 
45,713 
54,558 
50,915 



621,433 
1,240,481 
2,142,469 



liigh sampling ' 



226,337 
716,202 
,144,636 



98,996 
71,176 
129,500 



565 1,064,996 7,038,723 976,225 
731 2,210,787 12,064,946 2, 
591 1,272,259 2,856,355 



80,726 
21,840 



2,656 
2,990 



6,303 
9,967 
7,579 
5,052 
_ 25,535 

306,399 

434,390 116,943 

590, g72 536,915 



.—SEPARATE RETURNS 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



AND LOSS, EXEMPTIONS, TAXABLE INCOME, AND 





Number 
returns 


exemptions 




n 


Salaries and 




Business or profession 


Farm 


Adjusted gross incojLe 


*/J.r.) 


.ages (gross) 


Net profit 


Net loss 


Net profit 


Net loss 


T^^' 


amount 


Number of 


Amount 


Number of 


Amount 


Number of 


Amount 


Number of 
returns 


^m 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


Gr«nd total 


24,639,817 


34,264,200 


^74,572,686 


21,697,022 


60,538,911 


712,409 


1,919,442 


157,^6 


292,542 


364,475 


515,733 


141,562 


213,514 


Taxable returns, total 


16,947,092 


21,845,437 


68,236,576 


15,505,794 


56,005,201 


477,775 


1,702,093 


77,630 


97,195 


170,284 


366,853 


57,387 


82,515 




518,177 
4,060,097 
3,176,398 

2! 190^590 
1,523,750 
1,001,316 

369^008 
211,333 
333,532 

86^669 
D,008 
4,009 


518,177 
4,299,002 
4,014,046 

3;082;781 
2,144,396 

1,446,739 

546^545 
302,351 

147^ 181 

22,714 

7,269 

300 

189 


485,365 
5,925,920 
7,914,155 

9; 810! 877 
8,329,628 
6,471,496 
4,810,071 

3,917,808 
1,460,216 

'87o|726 
696,606 
112,730 
287,908 


482,020 
3,789,536 
2,887,354 

2;033;216 

1,422,093 

934,899 

591,046 

184! 919 
251,082 
47,039 
36,112 
4,146 
1,202 
50 


5,3951843 
6,994,396 
8,578,097 
8,918,040 

5! 325! 020 

4,203,616 

2,586,787 

1,619,364 

2,533,476 

590,018 

577,374 

114,074 

45,262 

2^043 


91^347 
93,069 
71,126 

36,729 
27,307 
19,906 
13,190 

24,138 

11,313 

11,600 

1,134 

223 

10 

9 


108)506 
175,669 
178,265 

101)982 
87,749 
63,869 
62,595 
187,977 
129,499 

12)509 
1,358 
5,565 


1 10,812 
10,127 
10,837 

6)414 
5,456 
3,024 
2,466 
4,016 
1,635 
1,669 

16 


10,310 
7,656 
7,765 

U,761 
3,587 
5,339 
6,539 

2)040 
6,647 
3,315 
12,000 
3,628 
2,838 
1,040 
1,939 


t 45)680 
37,246 
23,363 
17,789 
10,925 
7,271 
6,851 
3,684 

4,424 
1,631 
1,345 

76 

1 


46)845 
57,005 
47,339 
43,069 
28,347 
18,989 
22,727 
12,697 

25,301 
14,466 
24,822 

2)026 
164 


1,109 
10,143 
9,673 

6,032 
3,125 
2,672 

'757 

1,936 

723 

1,640 

221 
20 
19 


1,033 


$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 

$9,000 under $10,000 

$10,000 under $15, 000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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


6,819 
9,381 
8,978 
9,550 
5,469 
4,511 
2,803 

1)125 
2,793 
3,394 

4)502 
609 






Nontaxable returns, total.... 


7,692,725 


12,418,763 


'6,336,110 


6,191,228 


4,533,710 


234,634 


217,349 


80,346 


195,347 


194,191 


148,880 


84,175 


130,999 


No adjusted gross income... 


14^,507 

3,524,961 

2,093,495 

1,226,587 

473,952 

149,126 

47,333 


222,009 
3,912,023 
2,670,708 
2,925,296 
1,593,453 
687,052 
251,099 


=287,456 
1,131,073 
1,590,150 

1', 151^692 
508,862 
208,871 
285,404 


24,052 
3,247,583 
1,761,428 
722,517 
293,081 
97,586 


38,520 

1,030,772 

1,306,674 

950,081 

669,026 

120! 648 
91,085 


66;884 
65,807 
20,186 
6,333 
2,722 
1,484 


27,568 

70) 608 
35,148 

10)933 
5,225 


7)730 
2,537 

403 
835 


160,028 

7)250 
8,611 
3,287 

'631 
5,279 


56) 134 
47,348 
15,453 

1)714 
762 


21,882 
33,547 
46,283 
26,443 

5)119 
3,968 


40,172 
18,461 
9,770 
11,635 

1 3,746 
391 


85,130 


$600 under $1,000 

$1,000 under $2,000 

$2,000 under $3,000 

$3,000 uaier $4,000 

$4,000 under $5, 000 


10,354 
13,014 

5,098 

3,181 


Returns under $5,000 

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


20,332,985 

3,780,942 

525,890 


27,939,179 
5,509,092 


'39,706, 152 
24,905,733 
9,960,797 


17,884,374 

3,472,435 

340,211 


21! 397; 718 
3,369,126 


555,436 
108,329 
48,646 


857, 973 
454,924 
606,543 


122,471 
27,492 
3,0U 


230, 559 
27,839 
34,094 


323,959 
32,153 
8,353 


100)404 
71,494 


14)950 
5,164 


17)462 
32,473 




Partnership 


Sales of capital assets 


Ordinary gain from 

sales of 

depreciable property 


Sales of property other than 
capital assets 


Adjusted gross income 
classes 


Net profit 


Net loss 


Net gain 


Net loss 


Net gain 


Net loss 


returns 


Amount 


'^Z^' 


^ ^Amount 


Number of 
returns 




Number of 


,^ri 


Number of 
returns 


dollmr.) 


Number of 
returns 


Amount 

fTkou.n.) 


returns 


Anount 




(M) 


(15) 


(16) 


(17) 


(IB) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 




266,340 


934,391 


79,075 


131,566 


1,326,989 


1,656,022 




235,806 


18,468 


8,919 


U,344 


7,285 


19,336 












Taxable returns, total 


202,273 


874,037 


51,111 


69,968 


1,026,070 


1,506,368 


270 


528 


177,847 


13,473 


6,492 


10,265 


5,533 


12,650 


15,924 




2,915 
27,259 
27,579 
20,749 
18,321 
17,284 

ll'416 
9; 298 
5,536 

10! 028 
13,640 
2,343 

23 

10 


2,497 
30,296 
49,854 

52,175 

44U72 
40,423 
23,937 

120,587 
82,063 

187,411 

2^250 
1,988 


1 7,017 
4,411 
6,316 
4,716 
3,915 

31708 
2,024 

252 
6,104 
2,650 
3,959 

758 

21 
20 


3,936 
2,181 
5,907 
4,197 
2,016 
5,575 
2,567 

376 
9,358 
6,703 
11,604 

''& 
1,493 


(■ 9,760 
I 86,926 

102',066 
97,325 
98,509 
77,618 
64,945 
44,486 

106,457 
37,125 
47,098 
9,112 

'16O 
84 


2,387 
28,828 

63^022 
53,604 
70,327 
55,671 
62,277 
46,006 

96^489 
273,846 

190!681 
50,741 
83,559 


30 
31 

25 
16 
13 

14 
16 


872 
279 

034 
969 
383 
290 

837 
223 

3 


13,141 
19)506 
19,243 
13,586 
17,637 
10,632 
3,607 

ll)627 
13,165 
1,668 

3 


3,611 
■ 2,203 

'563 
983 

6 
8 


1,060 
1,082 

1,740 
847 

17 


'} 2,508 

': 

309 
175 

2 


471 
1,863 

'236 
344 
236 


1,109 
2,008 

2)918 

} 1.235 

5 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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


1)327 
2,660 

1,079 
1,430 

632 
4,U2 

39 








Nontaxable returns, total 


64,067 


60,304 


27,964 


61, 596 


300,919 


149,154 


64 


381 


57,959 


4,995 


2,427 


4,579 


1,702 


6,636 


12,069 


No adjusted gross inco^. . . 


2,548 
14,511 
14,948 
16,922 

3^217 

2,104 
1,590 


3,525 
5,453 
9,628 

7^467 
3,389 


14,653 
4,238 

j;: 

630 


46,287 
1,935 
3,661 

2,583 

7,132 


.19,551 
40,424 

ill 

( 10,805 


15,242 
11,320 

38)869 
25,229 

10^970 


17 
8 

13 
9 

1 


571 
760 

i 

403 


26,411 
5,745 

5)530 
'96I 


1,113 
} 911 

. 2,3U 


1,017 
889 




(') 

I') 


2,698 
jl 1,915 

h 


10,995 






$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4, 000 

$4,000 under $5,000 


322 






159,799 
47,818 


238,344 
489^117 


49,794 






331 511 


154 
112 
68 


389 
451 
069 




9,673 
5,972 
2,824 


2 m/ 


9,861 
3,422 


3,837 
861 


14,022 
2,760 


18 423 


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




13,807 




30,275 


299 
1,024 


831 


70,793 
51,373 


2 
3 


415 


2,561 



end of table. See 



for "Descrlptii 



of the Data" 



"Explanation of Classifications f 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 6. -SEPARATE 


RETURNS OF HUSBAND 


S AND WIVES AND RETURNS OF SINGLE PERSONS: SOURCES OF INCOME 
TAX ITEMS, BY ADJUSTED GROSS INCOME CLASSES— Continued 


AND LOSS 


EXEMPTIONS, TAXABLE 


INCOME, 


AND 




adjusted gross 
Income 


interest received 


(taxable portion) 


Rents 


Royalties 


Adjusted gross Income 
classes 


Net Income 


Net loss 


Net income 


Net loss 


Number of 
returns 


f^u^*j 


Number of 


f^^'j 


Number of 


^Amount ^ 


Number of 


nZ!!!,, 


"^fuL"' 


"v^ld 


Number of 


Amount 


Number of 


dr.;j.r.; 




(28) 


(29) 


(30) 


(31) 


(32) 


(33) 


(34) 


(35) 


(36) 


(37) 


(38) 


(39) 


(40) 


(41) 


Grand total 


1,884,783 


4,100,853 


5,554,546 


3,008,463 


643,824 


977,566 


1,012,467 


1,057,072 


371,467 


204,985 


107,983 


165,874 


6,199 


7,328 


Taxable returns, total 


1,456,534 


3,731,918 


4,246,094 


2,369,355 


384,234 


660,885 


597,714 


762,166 


266,728 


133,928 


72,203 


U0,670 


5,142 


5,533 


Unde $1 000 


11,402 
110,081 
170,048 
158,580 
146,033 
U2,487 
1A1,621 
125,441 
86,505 
65,870 

58^062 
69,902 
11,822 
3,806 

104 


3,154 

128; U9 
145,332 
159,772 
151,813 
129,950 
148,797 
126, 187 
99,532 
4i4,192 

8231756 
382,085 

362,702 
52,480 


45,690 
463,036 
590,147 
563,521 
547,229 
520,247 
423,217 
324,512 
215,742 
133,626 
255,290 

76! 069 
11,388 
3,524 


11,563 
148,495 
248,086 
244,909 
246, £A7 

197' 501 
176,222 
126,045 
89,243 
264,405 

49,330 
27,224 

2)885 


1 -•- 
78, 676 
62,251 
54,575 

26^273 
23,449 
15,657 
9,562 
22,139 

1^466 
520 

15 


99,732 
118,793 
102,166 
69,034 
45,851 
44,187 

14)210 

20)559 
6,070 
3,203 

201 


j 7,223 
I 69,804 

92)661 
75,566 

49)238 

17)lA3 
38,908 
15,466 

2)847 
898 


4,115 
42,244 

98)451 
70,383 

55)593 
31,381 

18) 107 
86,003 

87)015 

21,670 

9,505 

398 

466 


29,458 
38,366 
34,209 

25)571 

8)358 
19,424 
6,054 
5,295 
1,038 
357 

16 


7,327 
8,737 
19,825 

16,680 
10,830 

5)155 
3,931 
13,963 
6,175 
7,961 
3,037 
1,808 

395 


5,939 
9,903 
10,024 

4,662 

4)309 
3,411 
1,659 

3)549 
5,570 

31 

10 


2,501 
6,732 
5,030 
6,343 
3,485 
5,631 
4,437 
3,250 
856 
15,929 
14,752 
34,188 

3)533 
1,667 


3,703 

' s 

53 

2 




$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 

*e,000 under $9,000 

$9,000 UQier $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

i50,000 under $100,000.... 
$100,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 


1,506 

1,412 

1)317 
73 


Nontaxable returns, total... 


428,249 


368,935 


1,308,452 


639,108 


264,590 


316,681 


414,753 


294,906 


104,739 






25,204 


1,057 


795 


No adjusted gross Income.. 


16,125 
42,548 
77,333 

75^103 
27,326 
11,800 


10,034 
23,549 
82,789 
61,063 
40,252 
23,105 
112,067 


45,796 
197,388 
311,810 
510, 935 
168,418 
42,863 
16,210 
15,032 


31,448 

I'i 

34^21 
16,825 
29,915 


1,661 
11,099 
28,417 

70I086 
18,503 
5,300 


4,009 
16,320 

113^610 
40,002 
9,807 
9,129 


11,090 
50,923 
91,850 

62)621 
15,642 
5,501 


16,582 

58)591 
20,674 


21,585 
16,664 

10)243 
2,310 


35,665 
5,262 

10,302 
9,260 
5,554 

2)344 


1,715 

13)157 
6,807 

1)500 
641 


3,538 

1)355 
6,552 
6,287 
1,089 
1,177 
3,130 


( = ) 


(') 






$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 

$5,000 or mire 


680 


Returns under $5,000 

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


1,010,944 
572,712 


697^096 
2,553,946 


1^629! 779 


'823'458 


?iS 


660,984 


744,753 
190,498 


573,724 


227,731 
33)377 


121,726 
48,241 
35,018 


19)637 


100)352 


1)500 
1,492 


'543 




s^-s 


Adjustments 


Total 
deductions 


Exemptions 


returns 
taxable 


Taxable Income 


Income tax 
before 


Tax credits 




Number of 


,22 


"^u^^^ 


f7>,„„.„d 


Retirement Income 


Investment 




Number of 


Amount 


Number of 


<i,llMr,) 




(42) 


(43) 


(44) 


(45) 


(46) 


(47) 


(48) 


(49) 


(50) 


(51) 


(52) 


(53) 


(54) 


Grand total 


1,162,097 


525,128 


366,170 


13,385,344 


20,558,519 


7,435,264 


17,204,559 


45,147,659 


9,456,994 


746,386 


88,222 


191,736 


24,930 


Taxable returns, total 


1,006,469 


483,923 


318,115 


10,144,471 


13,107,261 




16,947,092 


44,987,927 


9,430,110 


522,238 


67,720 


169,659 


21,275 




93^972 
114,630 
102,826 

49^616 

32|442 
39,304 
95,493 

1321172 
47,842 
21,969 


3,700 
42,162 
53,579 
70,230 

50U39 

30;978 
19,108 
25,352 

sUii 

470 
87 


25,638 
42,777 

31,810 
32,335 

19,' 486 
12,738 
26,620 
6,612 
5,782 
1,029 


1,266,159 
1,214,642 

1! 301,' 554 
1,097,089 

426^081 
287,045 

215^065 
431,712 
168,420 

24,' 815 
78,642 


310,906 
2,579,401 
2,408,428 

l) 849! 669 
1,286,638 

327^927 
181,710 

881308 
13,628 

113 


: 


518,177 
4,060,097 
3,176,398 

2)190)590 
1,523,750 

'646) 012 
369,008 
211,383 

85)107 
86,669 
13,008 

'l69 
106 


31,177 
2,081,159 
4,291,688 

6)660)324 
5,945,903 
4,746,253 
3,616,118 
2,359,508 

3,066,809 
1,164,574 
1,992,961 
688,679 
537,462 
87,735 
209,153 


5,184 

337,329 

716,148 

1,042,820 

1,204,157 

1,108,685 

919,482 

723,470 

468,922 

711,718 
315,540 
705,950 

305)152 
52,807 
135,299 


105)305 
74,054 
48,553 
34,352 
25,956 
23,455 
9,966 
40,657 
18,209 

1)598 

31 


273 
7,679 
13,413 
10,484 
8,005 
5,378 
3,940 
3,426 
1,545 
6,103 
2,680 

251 
12 


706 
15,344 
25,446 
23,781 
15,403 
14,862 
8,762 
8,556 
6,590 

15,909 
3,757 

2)393 
762 
51 
34 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000.... 
$100,000 under $500,000... 
$500,000 under $1,000,000. 
$1,000,000 or more 


664 
1,738 
2,014 

1)244 

884 

987 

2,172 

3)955 
1,120 

631 
98 

132 


Nontaxable returns, total... 


155,628 


41,205 


48,055 


3,240,873 


7,451,258 


7,435,264 


257,467 


159,732 


25,884 


224,148 


20,502 


22,077 


3,555 


No adjusted gross Income.. 


'39,954 

47' 300 
65,369 
38,772 

5^867 
15,940 


6,110 
5,421 
12,892 
11,960 
1,844 

1,218 
1,159 


14,643 
6,772 
10,862 
11,602 
2,120 

1,089 
843 


1,076,484 

638',031 
364,563 
161,418 
85,708 
231,569 


133,205 

l!602U25 
1,755,178 

150^659 
94,274 


144,507 

2)088)490 
1,142,539 
350,807 
116,522 
38,124 
29,314 


5,010 
84,048 
123,146 

9)209 
3,450 


200 
20,689 
82,304 
36,487 
10,533 
9,519 


3,396 
13,470 
6,110 
1,772 
2,105 


i' 68,071 

118,097 

27,674 

7,899 

2,407 


2,401 

4)501 
1,069 


4,633 
3,431 
1,210 








$1,000 under $2, 000 

$2,000 under $3, 000 

$3,000 under $4,000 

$4,000 under $5,000 


780 
823 
535 






Returns $5,000 under' $10,000 
Returns $10,000 or mre 


544,770 
362^506 


289,083 
341301 


204,460 
120, 630 
41,081 


8,217,180 
1^739^63 


16,763,507 

3,305,455 

489,558 


7,405,952 
26,467 
2,847 


12,927,041 

3,754,476 
523,042 


19,194,293 
18,202,718 
7,750,648 


3,330,416 

2)557)270 


512,597 
144,483 
89,307 


22)776 
13,601 


102,735 

46,721 
42,279 


9,034 
6,196 


Footnotes at end of table. . 


*e text for 


"Descrlptl 


n of the . 




?le and Urn 


tatlons of 


the Data" a 


nd "Bcplana 


tic 


n of Classlf 


cation 


sand 


Tern. 


.■■ 













INDIVIDUAL INCOME TAX RETURNS FOR 1964 



EXEMPTIONS, TAXABLE INCOME, AND 



Taa frojL recomputed 

prior year 

investment credit 



SeLf-employment 



Tm withheld 



Under $1,000 

$1,000 umier $2,000. 
$2,000 >inder $3,000. 
$3,000 ui»ier $4,000. 
$4,000 under $5,000. 
$5,000 under $6,000. 
$6,000 under $7,000. 
$7,000 under $8,000. 
$«,000 under $9,000. 
$9,000 under $lD,Oa 
$10,000 uaier $15, OC 
$15,000 under $20,0C 
$20,000 under $50,0C 
$50,000 under $1D0,C 
$100,000 under $500, 
$500,000 under $1,0C 
$1,000,000 or more.. 

Nontaxable returns, tc 
No adjusted gross li 

Unier $600 

$600 under $1,000... 
$1,000 under $2,000. 
$2,000 under $3,000. 

$4^000 under $5^00o! 
$5,000 or ncre 

Returns unier $5,000.. 
Returns $5,000 under i 
Retxims $10,000 or nci 



I - 



7,693 

17,674 



{I 

L 10 



550,102 
440,862 
279,121 44,176 



,180,945 
,613,343 
568,064 



74,354 
27,930 
13,088 



Cash requested 



onl^ requested 



Taitable returns, total 

$2^000 under $3^000 

$3,000 unler $4,000 

$4,000 UMler $5,000 

$5,000 under $6,000 

$6,000 unier $7,000 

$8^000 wrier $9^000!!!!!! 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000... 
$100,000 under $500,000.. 
$500,000 under $1,000,000 
$1,000,000 or more 

Nontaxable returns, total. . 
No adjusted gross income. 

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 

Returns under $5,000 

Returns $5,000 under $10,00 
Returns $10,000 or more.... 



56,270 
48, 535 
58,094 



153,078 
259,366 
.,403,970 



Adjusted gross 



riptlo 



lees deficit. 



■^Estimate is not shown separately b 

^Negative "Other sources." 

NOTE: Detail may not add to total 



limitations 



of high sajrpli 
■ of rounding. 



384, 150 
586,336 
"Explanation of Cli 



117,635 
54,079 
28,346 
40,651 



21,052 

3,172,824 

1,611,117 

570,932 



36, 110 
21,729 



17,878 
21,497 
3,473 



13,669,. 
139,337 868,739 

137,217 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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115 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



S S §8?! 



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sTksrs fs^-gs " 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



111 
Mi 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



M 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



ggis 



3 gSSfeS SSRS 



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s.^ 3as"Pi a-" 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 





returns 


fn,«.„d 


Exen^itlons 


Taxable 


Income tax 




Joint returns of husbands 


and wives 




Adjusted jrosa Incone claases 


Number of 


Adjusted 
gross income 


Exemptions 


Taxable 
Inoome 


Income tax 
after 
credits 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(3) 


(9) 


(10) 


Grand total 


65,375,601 


'396,659,831 


112,352,080 


229,375,078 


47,152,855 


38,730,324 


'311,457,956 


83,892,336 


178,733,074 


36,667,882 


Taxable «tun>s total 


51,306,338 


376,004,749 


88,336,886 


229,268,292 


47,152,855 


32,658,709 


297,632,683 


72,843,977 


178,298,581 


36,667,882 


41 000 


519,777 
4,274,235 
4,230,995 

5;365U49 

5,474,381 

5,315,394 

4,801,475 

3,857,806 

3,018,742 

6,593,499 

1,456,670 

1,208,517 

158,700 

34,626 

1,057 

463 


6,306^032 
10,630,745 

24|l7i;885 
30,105,420 
34,503,1A2 
35,943,123 
32,700,244 
28,610,501 
78,094,242 
24,772,473 
34,407,979 
10,429,137 

'7C0I283 
952,174 


2,823|988 
3,889,170 

8;203',683 
9,783,627 
10,710,684 

8!437;382 

1/1,511,845 

3,232,619 

2,784,005 

366,805 

75,306 

2,179 

901 


31,20; 
2,130,143 
4,979,284 
8,515,230 
12,170,876 
15,564,570 
13,319,522 
20,004,943 
19,049,927 
17,421,037 
51,914,829 
17,970,472 
26,832,008 
8,528,317 
4,522,030 
557,626 
756,274 


5,161 
343,498 
814,244 
1,426,534 
2,079,007 
2,676,478 
3,186,260 
3,525,596 
3,401,653 
3,154,118 

9,792,079 
3,709,244 
6,882,146 
3,204,243 
2,220,198 

426^619 


165,450 

868,934 

1,992,579 

2,863,552 

3,663,490 

4,119,636 

4,016,552 

3,406,306 

2,755,089 

6,176,523 

1,352,374 

1,103,606 

142,993 

29,914 

864 

347 


2,246^460 
12;960;269 
20, 193, m 
26,779,4«i 

26,117,334 
73,193,334 
22,995,041 
31,374,039 

4;835;278 
572,296 
650,222 


198,540 
1,257,757 
3,635,846 
5,912,033 
8,079,834 
9,550,103 
9,474,943 
7,939,393 
6,445,125 
14,090,8U 
3;i22;261 
2,665,969 

348,342 
69,785 
1,956 


31,458 
540,224 
2,133,207 
4,8U,265 
3,738,953 
12,820,399 
15,727,221 
16,223,350 
15,552,049 
48,143,763 
16,564,051 
24,427,649 
7,695,936 
3,893,492 
457,434 
535,080 


- 








85,474 












1,427,619 




2,140,459 


tv'oOO UBder Ig'oOO 










2,764,956 












6,080,075 




2,826,965 








246,811 




286,340 




14,069,263 


'20,655, 082 


24,015,194 


606,786 


. 


6,071,615 


'13,825,273 


16,043,359 


434,493 


7 




432,317 
3,937,988 
2,588,100 
2,930,K5 
1,980,335 
1,130,568 
609,471 
460,339 


^1,552, 252 
1,275,784 
1,991,162 
4,281,434 
4,899,273 

2;703;309 
3,]/;3,949 


74i,245 
3,153,123 
2,544,684 
5,237,092 
4,765,750 
3,443,861 
2,238,131 
1,388,308 


22,246 

103,418 
102,449 

236^749 




276,398 

iii;ri? 

1,573,175 

1,443,556 

959,958 

550,933 

421,186 


'1,210,026 

2,351,009 
3,594,644 
3,324,331 
2,445,046 
2,317,854 


594,674 

887;571 
3,283,662 
3,687,693 
2,982,064 
2,058,371 
1,779,404 


1,55! 
19,262 
61,796 
78,350 
273,534 




\ ^ 








ll OOOuMer 12 000 
















$5,000 or lore 






32,993,932 
22,904,054 
9,477,6W 


^76,643, 132 
164,487,867 
155,528,831 


43,627,527 
47,634,835 
21,039,718 


28,146,773 
lli;i90;955 


4,668,445 
26,'540;300 


11,540,945 
18,362,052 


'33,563,288 
134,433,522 

143,411,U4 


25,273,132 
43,258,286 
20,360,919 


7,680,112 
69,230,755 
101,822,206 


1,197,755 








23,618,591 










Separate reti 


ims of husba 


ods and wives 






Betums c 


f heads of household 




Adjusted gross IncoiK classes 


Mujiber of 
returns 


Adjusted 


Exemptions 


income 


Income tax 
credits 

(Thou sand 

dbl/.^.; 


returns 


' Adjusted 
gross Income 


Exemptions 


inccine 


Income tax 
credits 




(11) 


C12) 


(13) 


(U) 


(15) 


(1£) 


(17) 


(18) 




(20) 


Grand total 


2,915,178 


'l0,C>t0,590 


4,356,035 


4,920,093 


1,017,804 


1,775,640 


'9,698,457 


2,516,362 


5,559,893 


1,129,172 


Taxable returns, total. 


1,957,775 


8,571,395 


2,396,504 


4,912,032 


1,017,804 


1,564,225 


9,339,059 


2,169,655 


5,548,403 


1,129,172 




71,217 
258,629 
359,195 

3281218 

221,809 
137,254 
83,326 

21^392 
38,254 

9^859 

1,172 

320 

23 

33 


60,910 

394,048 

908,472 

1,304,909 

1,470,417 

1,210,223 

618)877 
361,856 
201,335 
445,352 
170,569 
286,454 
76,706 

IO0I288 


42,730 
137,475 
368,707 
435,988 
457,970 

325,275 
220,106 
119,626 
74;75S 
34,782 
52,276 
12,420 
12,456 
1,469 
407 


3,707 
U3,843 
4U,207 
644,832 
317,489 

713,343 
532,973 
409,240 
226,878 

321,370 
129,976 
229,895 
59,503 
43,502 
12,908 
64,205 


1,410 
23,694 

110^129 
145,166 

129,449 
100,475 
79,937 
44,738 
27,668 
70,977 
33,700 
79,891 
27,493 
23,147 
7,718 


} 45,354 
163,338 
248,511 
237,263 
268,735 

129^025 

75,639 

49,716 

76,964 

17,163 

15,409 

2,434 

651 

24 

9 


75,642 

413,531 

879,493 

1,295,678 

1,476,360 

'9621538 
642,763 
471,596 
907,212 
291,138 
440,393 
161,706 
109,450 
15,257 
11,224 


41,385 
192,894 

186,590 
109,777 
70,164 
111,487 
26,533 
24,013 

13 


16,325 
134,089 
370,415 
649,616 

829,958 
718,618 
615,694 
428,852 
324,781 

222)520 
348,325 
129,249 

12)457 
9,581 






2,514 




21,562 




60,973 








144 508 




129,491 






ia'ooo uBd" S'ooo 






63,160 




134,717 








104,066 




53,515 








7,532 


$1,000,000 or lore 


5,567 








1,959,531 


8,061 




211,415 


'359,398 


347,207 


U,485 


. 


g 


22,710 
207,543 
155,440 
280,150 
173,112 
79,996 
24,902 


^45,674 
74,685 
119,613 

425^856 
274, U7 
110,652 


33,050 
216,595 
2U,402 
557,384 
476,671 
283,878 
110,530 

67,021 


17 

2,578 
1,555 

1,780 




it" 
27,839 

80,840 

16^147 
51233 


'41,873 
6,416 
22,318 

S;S3 

42^430 
38,632 


U,192 

34|U7 
118,193 
90,928 
36,066 
24,962 
13,125 


1,178 
4,077 
2,764 
3,460 






















. 






$5,000 or Ecre 






2,335,244 
519,774 
60,159 


'5,509,873 
3,356,949 
1,173,767 


3,435,380 
840,754 
79,900 


2,040,361 

2,017,020 

862,713 


348,720 
382,266 
286,817 


950,642 
113 ; 183 


4^7671495 


l'036i858 


1,178,471 
2,919,988 
1,461,434 










400,707 







Footnotes at end c 



"Description of ' 



' Sample aul LlnritBtlons of the Data" and "Explanation of Classifications and Terms.' 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



BY ADJUSTED CROSS INCOME CLASSES 



Adjusted gross iDcome c 



Retxims of surviving spouse 



Income tajc 
after 



4,934 
22,325 
25,901 
23, 8« 



22,470 
932,316 
1,877,480 
i,334,899 
i, 842, 835 



$50,000 under $100,a 
$100,000 under $500, ( 
$500,000 under $1,00( 



Nontaxable returns, total. . 
No adjusted gross Income. 

Under $600 

$600 under $1,000 

$1,000 under $2,000 

$2,000 uaier $3,000 

$3,000 under $4,000 

$4,000 under $5,000 



Returns under $5,000 

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



6,480 
1,526 
2,832 



31,057 
17,639 
1,504 

93,897 
183,837 
156,668 

Lljaltations of the Data" and "Explanation of Classifications 



15,736 
5,345 
2,954 



'34,196,; 
21,548,' 
8,787,( 



629,170 
493,960 
74,827 
144,949 



17,153,931 
16,185,693 
6,887,935 



,911,350 
,195,354 



total because of ] 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



III 



II? 
IJi 



Ji 



I Ji 



II 1 1 



3 s i 
I li 



III 1^ 



s § sss 3 



R las i s 









sSssi ?3l?S§ 



3slrt3 PSS? 



SSSS SgR5S 



SSS^S ?S§§3S 



^§s; 






S5§s SSsSS" 



sssIS H&ssi 



SSSSa S3S8R8 



§sss§ ^SsaS' 



^ CO W >t n CM f^ -^ <M ^ 



^tl^^5 3;:iSS = 



^§§§o ^§^^§^ 



m^i 



OBiSSri S53C 






33SS!_3 R,hF^.3SE 



!§Ss§ sisis'^ 



jSS§ 3Ssis8 



HS§3sS 






HgsSS? 



's§s^S° 



iSaiisSs 



HsgRsa 






I 31111 llllis 

^ S§§§§§i§8§8 



^- :6§i§§ : 8S^ 

^||lllls lll 



g^*»a*:a $$; 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

-CAPITAL GAINS AND LOSSES, SHORT- AND LONG-TERM, AND CAPITAL LOSS CARRYOVER, BY ADJUSTED GROSS 



Net loss 
of capital 



Adjusted gross income ( 



33,129 
51,572 
76,764 



$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 jnder $15,000.... 

$15,000 under $20,000 

$20,000 under $50,000..., 
$50,000 under $100,000... 
$100,000 under $500,000., 
$500,000 under $1,000,00( 



ider $600. 



123,212 
145,928 
205,183 
168,191 

312^ 913 
559,056 



H>. 



20,247 
20,801 
21,821 
17,745 



341,975 
248,157 
518,152 
173,554 
52,426 
3,505 
2,679 



$3,000. 
$5,000. 



102,896 
U3,561 
300,313 
238,355 



25,119 
23,936 
15,730 
10,331 
13,975 



30,947 
91,790 
40A41 



61,977 
61,182 
35,355 
33,918 



7,375 


78,903 


41829 
8,034 


li,507 
17,861 
56,429 



10,387 
13,512 



253,774 
289,932 
426,286 



138,912 
199,226 
322,002 



31,153 
37,628 
91,701 



42,451 
31,889 
182,639 



459,293 
l,142,'l42 



Returns with : 



! of capital assets 



Short-term (after carryover) 



carryover from 



Net long-ten 



Taxable returns, total. 



■ $2,000. 

■ $3,000. 

■ $4,000. 



273,533 
326,551 
321,8a 



,000 I 



$9,000 under $10,000 

$10,000 under $15,000... 
$15,000 under $20,000... 
$20,000 under $50,000... 
$50,000 under $100,000. . 
$100,000 under $500,000. 
$500,000 under $1,000,00 
$1,000,000 or more 

Nontaxable returns, total. 

Under $600 

$600 under $1,000 

$2,000 under $3,000 

$4,000 under $5,000 

$5,000 or more 

Returns under $5,000 

Returns $5,000 under $10,0 
Returns $10,000 or more... 



197,547 
211^293 



,464,167 
520,895 



33,443 
119,481 
123,788 



1,019,859 
1,125,277 
6,764,004 



I 6,225 
12,935 
15,434 
20,436 
17,004 
20,706 
15,607 
21,550 





30,809 


28,296 


33,035 




96,480 


19,263 




7,195 


46,318 


335 


5,001 







12,359 
7,038 
2,377 



1,649,925 
1,143,131 
3,456,590 



63,265 
23A,7&4 
231,995 



23,242 
60,027 
32,654 



311,532 
314,455 
287,516 



509,833 
95,653 
26,773 



257,486 
190,649 
113,333 
61,562 
68,783 



1,619,116 
1,110,096 
3,360,110 
2,050,562 
2,872,283 



142,686 
101,728 
382,833 



for "Descriptioi 



57,703 34,550 
57,432 39,526 
296,130 150,400 

and Limitations of 



20,570 
19,796 
163,268 



32 INDIVIDUAL INCOME TAX RETURNS FOR 1964 

TablelO.— CAPITAL GAINS AND LOSSES, SHORT- AND LONG-TERM, AND CAPITAL LOSS CARRYOVER, BY ADJUSTED GROSS INCOME CLASSES— Co 





Returns with net gain from sales of capital assets— Continued 




Returns vith normal tax and surtax only 




Number of 


Sm!Ss 
of capital 
assets in 
adjusted 


Short-term (after carryover) | 


U>ng-term 


Capital loss 

oariyover from 

1959-63 


Net long-term capital 


Adjusted gross income classes 


capital gain 


T.,?Sl'lT 1 


let long-term capital 
gai. 


Net long-tem 


capital loss 




Number 


*.l/.r.) 


N^ber 


rrJl! 


Number 


Amount 
doJlar.J 


Number 


Amount 


Number 
of 


Ajiount 


Number 


Amount 
doll.,.) 




(29) 


(30) 


(31) 


(32) 


(33) 


(34) 


(35) 


(36) 


(37) 


(33) 


(39) 


(40) 


(41) 


(42) 
















4,247,733 


10,679,248 


30,082 


21,297 


66,765 


141,990 


4,247,783 


10,429,482 


Taxable returns, total 


4,245,653 


5,371,Oi6 




320,373 


182,638 


241,028 


4,087,639 


10,383,884 


29,527 


20,755 


65,737 


139,576 


4,087,639 


10,U2,356 




244*299 

273,533 

326,551 

321,861 

320,486 

299,187 

282,650 

937,481 

399,457 

510,139 

41,075 

2,676 

29 

10 


2,387 
33,430 
80,938 
136,712 
164,972 
201,190 
197,547 
219,875 
211,293 
206,776 
866,607 
589,609 
1,721,797 
584,495 
142,757 
9,197 
1,464 


} 6,225 

12,935 

15,434 

20,436 

17,004 

20,706 

15,607 

21,550 

30,468 

102,942 

50,443 

75,020 

8,410 

621 

10 

1 


1,730 
6,305 
7,309 

12,155 
4,948 

13,181 
8,856 

12|832 
61,719 
36,535 
111,507 

6*, 521 
469 


2,806 
2,306 

6,392 
6,817 
9,415 
8,073 
6,065 
35,613 
28,296 
55,633 
3,050 

5 
1 


1,400 
2,957 
2,903 
2,901 
5,748 
10,857 
5,648 
5,945 
30,809 
33,035 
93,737 
31,627 

'223 
354 


■ 9,760 

171^074 
237,382 
263,571 
317,871 
311,532 
314,455 
287,516 
269,829 
895,141 
381,274 
492,203 
39,246 

10 


4,594 

67,912 

152,366 

264,593 

310,909 

395,431 

374,698 

433,305 

401,804 

394,255 

1,649,925 

1,143,131 

3,329,479 

1,158,873 

281,632 

31234 


1 2,608 

10,024 

5,070 
6,347 

101 


3,451 
132 

1,974 

7,581 

1,755 

307 

5 


< 1,621 

2,205 
2,411 

i 12,384 

10,388 

22,833 

3,479 

24S 

4 


7,275 
1,689 
4,410 
2,974 
1,619 
4,484 
15,660 
23,242 
58,499 
15,411 
3,743 
216 


9,760 

I 94,256 

171,074 

237,382 

263,571 

1 317,871 

\ 311,532 

314,455 

287,516 

269,329 

895,141 

381,274 

492,203 

39,246 

2,492 

27 

10 














261,636 




308,006 




392,530 




368,950 












388,310 




1,619,116 
















273,086 


$500,000 under $1,000,000 

$1,000,000 or more 


17,468 
2,929 


Nontaxable returns , total 


163,587 


150,200 


8,352 


7,413 


6,058 


8,738 


160,144 


295,3&4 


555 


542 


1,028 


2,414 


160,144 


236,626 


4 


42,620 
28,122 
37,686 


19,838 
23^556 


I 2,604 

1,407 

'(4,341 


613 


2,228 


3,025 
5,713 


j} 16,904 
36,953 
42,615 

i 27,421 
36,251 


9,899 
38,780 
45,775 
46,560 
154,350 


)■'■ 


(.') 


!'■- 


2,414 


1 2?;421 

i 36,251 






9,881 






38,765 




43,087 




46,256 


*5,000 or more 


148,637 


Setums under $5,000 

Returns $5,000 under $10,000 

Returns $10,000 or more 


929,952 
1,583,976 
1,895,312 


489,051 
1,074,576 
3,957,619 


60,544 
107,763 
237,857 


29,504 
55,697 
242,590 


33,665 
129,141 


14,623 


899,936 
1,533,120 
1,814,727 


941,388 
2,071,471 
7,666,387 


5,'369 
21,239 


1^012 
16,444 


5,724 
11,378 
49,663 


9,048 
13,493 
U9,449 


399,936 
1,533,120 
1,81A,727 


926,771 




me Classes 






Returns with alternative tax computation 




Numbe 


r of 
jns 


ad 


gain 
sales 
apital 

Ur.) 


Short-term (after carryover) 




Capital los 


carryover 


Net long- 




"•—-r •■■'•" 


Net short-term capital 


Net long- 
capital 
gain 

dcll.r.) 


capital 


Adjusted gross inc 


Number of 


Amount 


TZZ' 


(n^^j 


Number of 
returns 


f7>K»«nJ 


excess of 

capital 

doll.,.) 








(43) 


(44) 


(45) 


(46) 


(47) 


(43) 


(49) 


(50) 


(51) 


(52) 


Grand total 


99,679 




14,76 


43,510 


20,448 


78,889 


5,448,943 


8,302 


40,691 


5,370,054 


Taxable returns, total 


99,671 


2,733,487 


14,76] 


48,503 


20,443 


78,882 


5,448,340 


8,302 


40,691 


5,369,958 




17,630 
56,407 

414 


65,006 
477,279 
1,321,410 
350,361 
519,431 


2,24 

8,19 
4,03^ 


2,822 
15,621 
21,812 

4,547 

3,706 


111 213 

6,527 

330 


27)118 
37,772 
4,773 
6,471 


127,m 
950,434 

2,636,968 
696,406 

1,037,921 


780 
4,925 
2,443 

105 


1,528 
17,243 

l',132 


_ 








923,316 










$1,000,000 or more 


1,031,450 




8 


50 






5 




103 






96 





























xt for "Description of the Sample and Limitations of the Data" and "Explanatit 
than $500. 

ate is not shovm separately because of high sampling variability. However, t: 
Detail may not add to total because of rounding. 



1 of Classifications and Terms." 

( data are included in the appropriate 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Not eligible for 



ALL RETURNS 

Taxable returns , total 

$600 under $1, OOO 

tl, 000 under «2, 000 

$2, 000 under $3,000 

$3, 000 under $4,000 

$6,000 under $7,000 

$7,000 under $8, 000 

$8,000 under $9,000 

$9, 000 under $10,000 

$15^ 000 under $2oIoOo! [V^\'.'.'.'.'.'.V.'.['.\'.['.'.'.'.'.'.'.'.'.'.'.'.'. 

$20,000 under $50,000 

$50,000 under $100,000 

$100, 000 under $500, 000 

$500,000 under $1,000,000 

$1, 000, 000 or more 

Nontaxable returns, total 

No adjusted gross income 

Under $600 

$600 under $1,000 

$1,000 under $2,000 

$3,000 under $iIoOO. ........................[....[.'.['.. 

$4,000 under $5,000 

$5,000 or more 

Returns under $5,000 

Returns $5, 000 under $10, 000 

Returns $10, 000 or more 

JOINT RETUHMS 

Grand total 

Taxable returns, total 

$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20, 000 

$20,000 under $50,000 

$50,000 under $100,000 

$100, 000 under $500, 000 

$500,000 under $1,000,000 

$1, 000, 000 or more 

Nontaxable returns , total 

No adjusted gross Income 

Under $600 

$600 under $1, 000 

$1,000 under $2,000 

$2, 000 under $3, OOO 

$3,000 under $4,000 

$4,000 under $5,000 

$5, OOO or more 

Returns under $5,000 

Returns $5,000 under $10,000 

Returns $10, OOO or more 

See text for "Description of the Sample and Limitations 
NOTE: Detail may not add to total because of rounding. 



22,009 
38,339 
54,248 



10,969 
14,746 

4sl054 
41,351 
19,802 
3,585 
12,173 



1,181 
2,790 
6,095 



46,808 
36,159 
267,964 



344,067 
305,236 
281,393 
,308,735 
994,933 
1,989,532 
,747,622 



23,806 

31,403 

39,196 

46,466 

51,636 

54,3 

51,776 

47,838 



218,266 
259,029 
433,520 



1,726,( 

1,594,906 

2,345,820 



1, 114, : 
2,211,1 
3,487,- 

le Data" and "Explanat 



116,725 
30,005 
10,172 



140,029 
162,012 
147,525 



643,335 
1^322^972 



1,006,876 
2,111,035 
3,415,550 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

-OVERPAYMENT, REFUND, CREDIT ON 1965 TAX, AND TAX DUE, BY ADJUSTED GROSS INCCME CLASSES AND BY TYPE OF lAXPAYMENT 



of tajtpa^ent 



$10,000 under $15,000.. 

$15,000 under $20,000.. 
$20,000 jider $50,000.. 
$50,000 under $100,000. 
$100,000 under $500,000 
$500,000 under $1,000,01 



Nontaxable returns, 

No adjusted gross 

Under $600 

$600 under $1,000. 
$1,000 under $2,00 



$5,( 



5,365,249 

5,474,381 
5,315,394 
4,801,475 
3,857,806 
3,018,742 
6,593,499 

1,456,670 

1,208,517 

158,700 

l'057 
463 



3,328,912 
3,353,211 
2,965,562 
2,254,903 

2 '742 '949 



36,472 
246,276 
232,310 



552,133 
522,980 

415,165 



3,218,583 
3,257,049 
2,873,597 



36,380 
243,038 
223,063 



97,275 
131,290 
29,775 
11,435 



529,938 

727,380 
985,909 



3,152,962 
3,198,671 
2,824,576 
2,124,815 
1,539,282 
2,419,435 

243,062 
100,436 



115,785 
132,045 
135,324 



1,130,568 
609,471 
460,339 



38,133 

111,245 
129,102 
126,923 
141,337 
103,978 
73,110 
112,642 



3,327,509 
1,795,566 
1,303,198 



108,184 
125,352 
120,701 



,008,438 
653,769 
375,050 



21,354 
107,923 



96,894 
68,016 
79,731 



21,142,438 
2'775^005 



Adjusted gross : 



overpayment — Continued 



Returns by type ( 



taxpayment — Contin 



$15,000 under $20, ( 



32,606 


26,517 


41,431 


31,339 






53,029 


34,200 




30,077 


222,602 


163,138 


173,372 


144,591 


481,232 




184,240 


335,246 










304 


31,925 



37,580 
77,825 
99,957 



8,195 
10,534 



139,959 

75,109 
126,047 
21,309 



10,261 
8,987 
42,547 



7,218 
23,523 
42,757 
60,755 



211,539 
724,935 
333,206 



Under $600... 
$600 under $1 
$1,000 under 1 
$2,000 under 
$3,000 under 



Returns under $5,000 

Returns $5,000 under $10,0 
Returns $10,000 or more... 



29,551 
6,117 



table. See ■ 



for "Description of 1 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

Table 12 . —OVERPAYMENT, REFUND, CREDIT ON 1965 TAX, AND TAX DUE, BY ADJUSTED GROSS INCOME CLASSES 



BY TYPE OF TAXPAYMENT— Continued 




Adjusted gross income classes 






I under $2,000. , 



I under $6,( 
' under $7,( 
under $8,C 
under $9,C 



Nontaxable returns, total. 
No adjusted gross income 



Returns $10, ( 



20,960 
17,933 
13,036 



22i,7<ll 
53'20A 



57,699 
76,649 
80,719 

75,139 
58,758 
47,383 



12,668 
31,737 
30,566 

14^297 



393,443 



6,751 
11,924 
14,478 



123,476 

23*754 
2,732 
3,874 



18,659 
3,579 
6*298 



1,590,597 
1,380,001 
3,834,289 



59,304 

125,772 
229,968 
470,901 
303,604 
175,779 



300,192 
289,973 
,108,099 



15,967 
189,993 
531,593 
753,371 

1,000,598 
1,101,492 
1,218,714 
1,243,660 
1,214,227 
4,378,603 

1,380,711 

171*452 



,499,817 
i, 779, 511 
1,936,898 



185,144 
200,064 
191,301 



34,830 
6,147 
4,348 



212,639 
305,609 
57,185 



73,433 
375,247 
951,333 



14,178 
25,858 
39,736 



319,039 
766,292 
340,975 
153,978 
6,639 



11,063 
194,330 
,942,710 



time of filing — Continued 



Returns by t^-pe of ta3:payment — Continued 



declaration 



Adjusted gross : 



Grand total. 



$15,000 under $20,000. 
$20,000 under $50,000. 
$50,000 under $100,000 
$100,000 under $500,00( 
$500,000 under $1,000,1 



56,657 
102,095 
138,710 



123,538 
99,719 
89,031 

282,789 

153,516 
258,983 
43,565 



Nontaxable returns, 



Under $600 

$600 under $1,000..., 
$1,000 under $2,000. , 
$2,000 under $3,000. , 



5,898 
9,997 
3,775 

5^419 



60,567 
71,631 
76,720 
72,083 

334)589 

291,686 
1,157,449 
640,612 
458,251 
54,100 



Returns under $5,000 

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

See text for "Description of the Sample and Limitations of the Data" and "Explanation of Classifications 
Estimate is not shown separately because of high sampling variability. However, the data are included i 
NOTE: Detail may not add to total because of rounding. 



28,547 
34,179 
38,132 



declaration 



427,080 
256,063 
136,805 
70,128 



103,311 
77*762 



153,854 
32,749 
15,731 



5,234 
9,495 
29,282 
28,652 
21,439 

15*678 



Returns by type of taxpayment 



16,297 
15,438 
9,807 



8,629 

7^297 
10,869 
7,029 



18,751 2,709 
43,475 2,205 
29,125 2,011 



Payments 
declara- 



SECTION 2 

Personal Deductions 

(Exemptions, Standard Deduction, Itemized Deductions) 



TABLE CONTENTS 

Text Tables 

K. Number of exemptions by type, 37 

L. Number of returns and amount of deduction by form of deduction and by 

adjusted gross income classes. 38 
M. Total itemized deductions; 1961-1964. 38 
N. Returns with deduction for medical expense by adjusted gross income 

classes. 39 
O. Deduction for taxes by types of tax and adjusted gross income classes, 



P. Returns with home mortgage interest dedu 
1 amount of deduction by size of deduction 
i -. At 



Number of returns and 
( adjusted gross income 



ic Tables 
Characteris 



indard deduction: Adjusted 
exemptions, deduction, and 



3 of returns with minimum st: 
gross income, selected sources of income, 
tax, by adjusted gross income classes, 43 

Returns with standard deduction: Sources of income and loss, deduc- 
tions, exemptions, taxable income, and tax items, by adjusted gross in- 
come classes, 47 

Returns with itemized deductions: Sources of income and loss, deduc- 
tions, exemptions, taxable income, and tax items, by adjusted gross in- 
come classes, 50 

Returns with standard deduction: Adjusted gross income, exemptions, 
taxable income, and income tax after credits, by adjusted gross income 
classes and by marital status of the taxpayer. 54 

Returns with itemized deductions: Adjusted gross income, exemptions, 
taxable income, and income tax after credits, by adjusted gross income 
classes and by marital status of the taxpayer, 56 

Itemized deductions as a percent of adjusted gross income: Number of 
returns and amount of deduction by adjusted gross income classes. 



For 1964, individuals deducted from adjusted gross 
income exemption allowances of $112.4 billion, itemized 
deduction allowances of $46.8 billion and standard deduc- 
tion allowances totalling $20.2 billion. These amounts 
represented increases of 2.0 percent, 1.7 percent, and 
53.6 percent, respectively, over 1963. 



EXEMPTIONS FOR TAXPAYERS' DEPENDENTS 
NUMBERED 74. 7 MILLION 

Table K shows that a total of 187.3 million exemptions 
were reported on the 65.4 million returns for 1964. Total 
exemptions included 104.8 million for the taxpayers, 74.7 
million for their dependents, 7.6 million for taxpayers 
who were age 65 or over, and almost 107,000 for tax- 
payers who were blind. 

Exemptions for taxpayer and spouse increased by 2.1 
million over 1963. Exemptions for dependents increased 
by 1.2 million, and exemption for age and blindness in- 
creased by 406,000 over 1963. 



No detailed data on exemptions are included in this 
volume; however, many recent reports in this Statistics 
of Income series contain detailed exemption information 
by size of adjusted gross income. See, for example, table 
22 in Statistics of Income— 1963, Individual Income Tax 
Returns. 

Table K.— NUMBER OF EXEMPTIONS BY TYPE 
[Taxable and nontaxable returns] 





Type 


of exemptions 


Number of 


exemptions 




.5,375.001 


ia7,253,4o9 








Taxpayer's ex 
Taxpayer an 
Age 65 or o 


65,375,601 

65,375,601 

'103; 973 

31,639,059 






104, 814, 463 








'""' 






Dependent's e 






74,695,776 


^ 







Data" and "Explanation 



STANDARD DEDUCTION TOTAL INCREASES 54 

PERCENT WITH INTRODUCTION OF MINIMUM 

STANDARD DEDUCTION 

The standard deduction was reported on 38 million 
returns in 1964 and the amount claimed totaled $20.2 
billion. These figures represented increases of 7.7 per- 
cent and 53.6 percent, respectively, over the 1963 levels. 
Returns claiming a standard deduction in 1964 constituted 
58.2 percent of all individual returns compared with 55.3 
percent in 1963. The upward movement in this proportion 
in 1964 reversed a long term trend and was the result of 
the introduction of the minimum standard deduction 
provision. 

The Revenue Act of 1964 provided for a minimum 
standard deduction as an alternative to the 10 percent 
method of calculating the deduction already in effect. 
The minimum standard deduction was $200 ($100 for 
married persons filing separately) plus $100 for each 
allowable exemption. This deduction, like the regular 
10 percent standard deduction, could not exceed $1,000 
($500 for married persons filing separately). The tax- 
payer had the option to elect whichever method afforded 
him the most benefit. However, indications are that 
some taxpayers elected the more familiar 10 percent 
deduction when the minimum standard deduction would 
have been greater. 

Table L shows that taxpayers on 23.5 million returns 
elected the minimum standard deduction totaling $10.6 
billion. The remaining 14.5 million returns showed tax- 
payers using the regular 10 percent method which 
amounted to $9.6 billion. As was expected, the majority 



37 



38 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



(Taxable a/,d nontaxable 


returns) 










itemized deductions 


Adjusted gross income classes 


"-r.nf 


deductions 
(Itemized 

s£ard, 


Number of 


Total 

deductions 




(1) 


(2) 


(3) 


(4) 


j^^ 


165,375,601 


66,989,908 


26,909,591 


46,632,084 




120,893,892 
12,100,040 
22,904,054 
9,477,614 


8,654,418 
8,457,232 
26,493,166 
23,385,092 


4,225,498 
13,064,645 
7,239,838 


1,894,084 




4,435,899 






$10,000 or more 


21,151,276 








Returns with 
standard 


10 percent 
deduction 


"s^Lfded^cUr 


Adjusted gross income classes 


Number of 


Total 

deduction 


Number of 


Total 
minimum 
standard 
deduction 

dolU,,) 




(5) 


(6) 


(7) 


(8) 




14,501,045 


9,579,924 


23,532,648 










352,042 
3,863,092 
8,045,135 
2,237,776 


70,438 
1,533,739 
5,741,931 
2,233,816 


17,729,924 
4,011,450 
1,791,274 


6,689,897 








1,400,408 











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

^Includes 432,317 returns with no adjusted gross income which were consi 
have no deductions. 

NOTE: Detail mi/ not add to total because of rounding. 



(75 percent) of returns with the minimum standard de- 
duction had income under $3,000. 

Table 13 presents some other characteristics of tax- 
payers who used the minimum standard deduction. For 
example, 85,2 percent of their adjusted gross income was 
salaries and wages and 6,7 percent was business and 
farm income. Forty percent of the minimum standard 
deduction returns were filed jointly, a much lower pro- 
portion than that for all returns. About 10.6 percent of 
the minimum standard deduction returns had an addi- 
tional exemption for age. 

Detailed income and tax data classified by size of 
adjusted gross income are presented for standard deduc- 
tion returns, using either method, in table 14, 



ITEMIZED DEDUCTION RETURNS DECLINE 

Table M shows that itemized deduction returns de- 
clined by 1.2 million from 1963 to 26,9 million for 1964. 
This decrease was due to the introduction of the new 

Table M.— TOTAL ITEMIZED DEDUCTIONS: 1961-1964 





f»J»«K/0 


Returns wl 


h itemized 


deductions 




Number of 


of all 


Adjusted 
income 


Total deductions 


Income year 




Percent of 
adjusted 
gross 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


1961 


61,499 
63,943 


26,451 
28,154 
26,910 


42.2 

41.2 


212,754 

233,115 
244,070 


38,391 
41,661 

46,832 


19.6 


1963 

1964 


19.8 



minimum standard deduction which gave certain low in- 
come taxpayers who had itemized in previous years a 
bigger deduction for 1964. A rough estimate of the magni- 
tude of the shift from itemized to standard deduction 
would be 2.5 million returns. This figure was derived 
by adding the 1.2 million decrease in itemized returns 
from 1963 to 1964, to the average year to year increase 
of 1.3 million itemized returns during the period 1959- 
1963. 

Total itemized deductions of $46.8 billion for 1964 
increased by only $779 million over 1963. Chart 3 com- 
pares the major types of deductions for 1964 and 1962. 
Detailed itemized deductions were not tabulated for 1963, 



Chart 3.-ITEMIZED NONBUSINESS DEDUCTIONS, 1964 AND 1962 




Billion dollar 



Detailed income and tax data classified by size of ad- 
justed gross income are presented for itemized deduc- 
tion returns in table 15, Table 18 presents a distribution 
of itemized deduction returns classified by the ratio of 
deductions to adjusted gross income (computed for each 
return). The table is divided into five parts: one each 
for total deductions, medical and dental expense, taxes 
paid, interest paid, and contributions. 



MEDICAL DEDUCTION EXCEEDED $7 1 BILLION 

Table N shows that individuals who itemized their 
deductions claimed $7.1 billion of deductions for medical 
and dental expenses on 16.7 million Form 1040 returns 
for 1964. This deduction resulted after certain limita- 
tions were applied to the expenditures (see explanation 
below). 

A deduction for unreimbursed medical and dental ex- 
pense was allowed, with limitations, to taxpayers who 
itemized these expenses on Form 1040. A supplementary 
schedule, Form 2948 "Medical and Dental Expense 
Statement," was available for taxpayers to record ex- 
penses and compute the deduction. The column headings 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



39 





Table N. 


—RETURNS WITH DEDUCTION FOR MEDICAL EXPENSE BY ADJUSTED GROSS INCOME CLASSES 










Returns with deduction for medical and dental expenses 




Number of 


Adjusted 
Sross 


Total 

dental and' 

drug 
expenses 


Medical, dental, and drug 

deductions for persons in 

Group I 




Deductions for per 


sons in Gro 


up n 






deduction' 


and drug 


Drug deduction 




Number of 


Adjusted 


gross income 




Number of 


Adjusted 
gross 


rTTn/und 


_........„. 


Number of 


Adjusted 
gross 
income 


Amount 
Aillmrm) 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(L2) 


Grand total 


16,705,«3 


132,104,789 


7,095,325 


2,634,214 


24,349,139 


2,053,664 


14,167,463 


109,540,948 


5,036,669 


8,271,027 


59,501,903 


411,604 


Taxable returns, total 


1,300,363 
1,920,946 
1,801,704 
1,499,839 
1,134,617 
2,465,077 

403^210 
43,248 
13,131 

208 


,.6?,534 


6,000,444 


1,912,165 


22,239,597 


1,391,393 


13,423,235 


106,993,997 


4,609,050 


7,795,702 


57,395,6i0 


367,010 




6,343 

-,,545 

j^«l)690 
6,824,200 
9,924,645 
12,484,259 
13,505,729 
12,706,898 
10,749,848 
29,229,280 
9,312,864 
11,270,193 
3,195,632 
2,198,339 
260,417 
414,537 


62^044 
196,022 
370,831 

622,994 
638,389 
616,279 
540,035 
418,688 
1,052,998 
348,895 

106|016 
39,256 
1,556 


33,38i 
139,147 
209,057 
231,044 
212,639 
176,787 
140,453 
120,531 

76,911 
249,183 
112,121 
162,396 

36,095 

11,816 
386 
205 


60,235 
357,163 
741,989 
1,041,057 
1,174,(>;7 
1,150,131 
1,049,540 
1,017,931 

3,017^738 
1,932,433 
4,853,531 
2,423,136 
2,008,448 
256,105 
409,768 


7,170 
42,373 
90,582 
U4,746 
117,292 
100,778 
38,833 
87,735 
56,802 
214,287 
117,081 
241,841 
76,L24 
33,414 
1,495 
340 


6,774 

240,762 

565,045 

912,278 

1,285,135 

1,597,278 

1,752,516 

1,671,258 

1,387,711 

1,063,010 

2,237,962 

U3,233 

246,225 

1^411 

3 


6,343 
334,493 
1,440,157 
3,225,993 
5,308,743 
8,803,037 

u',5y.',i2(, 

11,764,028 

10,069,030 

25,433,733 

7,514,002 

6,554,170 

803,529 

204,841 

4,308 


1,070 
54,875 
153,649 
280,251 
407,665 
505,702 

527' 440 
452,301 
361,833 
838,712 

220', 266 
29,891 
5,841 

13 


3,171 
154,663 
387,545 
512,099 
842,695 
985,879 
1,046,844 

805^507 

579,915 

1,131,320 

189,890 

85,476 

1,970 

155 


2,918 

247,543 

934,018 

2,165,368 

3,805,922 

5,435,477 

6,799,023 

7,263,047 

6,824,220 

5,491,698 

13,331,197 

3,215,858 

2,182,884 

123,910 

22,557 










25,955 


$3,CXX) under $4,000 


38,191 




53,543 




48,955 




39,978 






$9,000 under $10,000 


22,010 




8,651 




4,700 






$100,000 under $503,000 


13 


$1,000,000 orniDre 




Nontaxable returns , total 




4,636,205 


1,094,831 


722, «8 


2,109,542 


667,266 


744,228 


2,546,951 


427,619 


475,325 


1,606,268 


44,594 




18,206 
56,778 
347,213 

299^619 
174,285 
189,375 


6,414 
47,360 
533,541 
935,143 
1,033,060 
771,405 
1,309,282 


3,458 
23,026 
176,361 
240,142 
226,934 
154,539 
265,371 


18*646 
190,434 
229,927 
157,289 

48^258 


4,122 

300,882 
572,296 
540,491 

387)350 


5,308 
11,525 
103,268 
161,086 
142,987 

1571307 


6,271 
38,132 
157,480 
1A8,Z30 
142,935 
109,345 


2,292 
32,290 
233,360 
370,775 
494,4^ 
484,833 
923,461 


3,150 
11,502 
73,094 
79,056 
83,995 
69,255 
107,567 


3,956 
21,460 
100,495 
98,171 
95,175 
73,213 
82,855 


1,406 
18,147 
150,928 

245,740 

324^671 
537,182 


470 




1,594 








9,799 


$3,000 under $4,000 


l',13S 












4,880,676 
8,335,496 
3,489,469 


16,342,866 
60,466,911 
56,095,012 


1,981,890 
3,045,636 
2,067,798 


1,286,433 
770,708 
577,073 


3,922,636 
5,390,914 
15,035,589 


764,330 
566,717 
727,617 


3,612,387 
7,606,818 
2,948,258 


12,484,224 
55,383,821 
41,667,903 


1,217,562 
2,478,925 

1,340,182 


2,392,643 
4,466,068 
1,412,316 


8,274,355 
32,301,570 
13,925,433 


160,113 


Returns $5,000 under $10,000 

Returns $10,000 or more 


204,025 
47,466 



Data" and "Explanation of Classifii 



in table N conform generally to the language of Form 
2948 (a facsimile appears in the back of this report). 

Persons in Group 1 included (1) taxpayer and wife if 
either was age 65 or over, and (2) each dependent parent 
of the taxpayer who was age 65 or over. Persons in 
Group II included (I) taxpayer and wife if both were 
under age 65, (2) dependent parents under age 65, and 
(3) all other dependents regardless of age, A return was 
classified in both Group I andGroupllif the taxpayer had 
deduction for expenses related to persons in both 
categories. 

Returns with deduction of expenses for Group I indi- 
viduals numbered 2.6 million and showed a deduction 
totaling almost $2.1 billion. Prior to 1964, the deduction 
for Group I included expenses for drugs (and medicine) 
only to the extent that they exceeded 1 percent of adjusted 
gross income. All other medical and dental expense was 
allowed in full as a deduction for Group 1. The Revenue 
Act of 1964 removed the 1 percent floor on medicine 
and drugs and allowed a full deduction for all such 
expenses. 

Returns with deduction of expenses for Group II indi- 
viduals numbered 14.2 million and showed a deduction 
totaling $5.0 billion. The 1 percent floor on drug ex- 
pense still applied to Group II. In computing the deduction 
for Group II, a taxpayer added the drug expense in excess 
of the 1 percent floor to the other medical and dental ex- 
pense and reduced the sum by 3 percent of adjusted gross 
income. The remainder was the deduction for Group II. 

The computed medical expense deduction was subject to 
maximum dollar allowances based on the total number of 
exemptions other than those for age and blindness. The 
maximum was $5,000 per exemption but not more than 



$10,000 for individuals taxed as single taxpayers and 
$20,000 for other taxpayers. However, disabled taxpayers 
over 65 were each eligible for a maximum deduction of 
$20,000. 



TAXES PAID MOST FREQUENTLY REPORTED 
DEDUCTION 



Over $14 billion of State and local taxes paid were 
deducted on 26.6 million Forms 1040, which represented 
98.7 percent of the itemized deduction returns for 1964. 
Although the Revenue Act of 1964 disallowed a personal 
deduction for State cigarette and tobacco taxes, automo- 
bile and driving license fees, alcoholic beverage taxes. 



Chart 4. -PERCENTAGE DISTRIBUTION OF TAXES DEDUCTED, 
BY TYPE OF TAX, 1964 



property All c 



General and local 







DEDUCTION FOR TAXES PAID J14.1 BILLION 



40 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 0. —DEDUCTION FOR TAXES BY 


TYPES OF TAX 


AND ADJUSTED GROSS INCOME CLASSES 










Taxes deducted 




Total 


Real est te taxes 


General sa 


les taxes 


Adjusted gross income classes 


Number of 


Adjusted 


Amount of 
taxes 




Amount 


Number of 


Amount 




(1) 


(2) 


(3) 


(4) 


(5) 


'•■'> 


'") 


^^^^^^^ 


26,558,769 




14,070,330 


19,365,510 


6,050,339 




,,-,lB,OQl 




24,828,613 


236,991,343 


13,447,613 


18,093,967 


5,660,606 




,:,S35,359 




10,133 

333,470 

915,702 

1,517,006 

2,066,179 

2,624,571 

2,900,160 

2,345,890 

2,464,484 

1,940,935 

4,713,024 

1,204,625 

1,092,998 

153,911 

34,012 

1,052 

461 


9,134 
547,195 
2,340,238 
5,373,440 
9,333,603 
14,470,783 
18,857,916 
21,335,047 
20,893,353 
18,395,018 
56,241,259 
20,516,192 
31,348,137 
10,128,065 
5,554,841 

944*741 


40,S 1 ^^'^° 

156,299 376,153 

329,092 704,803 

549,049 1,108,705 

837,226 1,654,235 

1,096,241 2,093,249 

1,247,534 2,203,960 

1,211,037 2,003,872 

1,062,132 1,643,298 

3,202,159 4,070,199 

1,159,076 1,032,752 

1,684,069 919,176 

522,387 129,272 

284,016 28,407 

30,179 879 

36,482 337 


17,488 
67,397 
222U15 
346,956 
478,377 
557,783 

434^534 
1,431,059 

639*747 
155,415 

4|696 

4,257 


276|797 

761,615 

1,259,492 

2,220,088 

2,435,986 

2,379,059 

2,093,768 

1,665,053 

4,057,578 

1,044,765 

948,635 

134,336 

29,516 

390 


191 




9,387 




35,673 


li'ooo ""d^"^ |4'000 


78,326 








195,773 




239,206 




262,050 








219,787 




635,339 




200,134 








43,948 




14,470 








637 




1,730,156 










1,276,712 


82,642 




25,357 
73,411 
398,828 
428,250 
355,675 
201,736 
246,899 


8,812 

61,695 

611,025 

l,066,&i.6 

1,225,092 

393,613 

1,847,610 


15,261 
99,54s 
130,498 
127,377 

161^735 


17,500 
52,006 
275,526 
303,528 
257,609 

201; 273 


4,691 
10,919 
70,063 

86,051 


13,234 
41,344 
267,111 

2771323 


562 




1,522 




10,708 






$3^000 under $4,000 

$4,000 under $5,000 

$5,000 or more 


19,234 
12,829 

21,134 




6,330,747 
13,003,716 
7,224,306 


21,475,493 
95,354,647 
125,375,696 


1,536,557 
5,573,449 

6,960,825 


9,790,444 
6,195,515 


zM'-^^v 


X^J^^'M 


314,044 


Returns $5,000 under $10,000 

Returns $10,000 or more 


1,186,636 
1,117,321 




Taxes deducted— Continued 




State and local income 
taxes 


Personal property taxes 


State and^l^ 


cal gasoline 


All other 


Asjusted gross income classes 


Number of 


Amount 


Number of 


Amount 


Number of 


Amount 


'r.-> 




(8) 


(9) 


(10) 


(11) 


1.12) 


(13) 


(14) 


^^^^^^ 


15,874,924 


2,862,151 


7,930,545 


397,«!5 


22,459,744 


1,573,625 


569,225 




15,417,940 


2,-819;348 






21,391,333 




537,812 




2,721 

129,535 

394,146 

736,678 

1,144,929 

1,506,878 

l|812;061 

1,623,091 

1,296,498 

3,238,276 

350,676 

770,626 

107,383 

24,007 

737 


2,371 
10,557 
28,172 

90,626 
128,422 
159,356 
168,431 
155,480 
577,307 
297,542 
649,259 
273,495 
172,303 

20,760 


68,778 
201,275 
358,855 
532,819 
747,654 
362,704 
878, 2X 
784,176 
600,290 
1,582,816 
416,661 
337,666 
55,973 

185 


1,574 
5,260 
10,830 
13,163 
25,215 
32,718 
34,554 
35,286 
26,933 
86,884 
23,249 
43,003 
14,838 
10,863 


174,448 

575,856 

1,085,089 

1,609,415 

2,221,270 

2,537,261 

2,592,145 

2,273,979 

1,806,601 

4,383,478 

1,068,057 

372,149 

111,813 

23,770 

677 


7,635 
30,137 
62,245 
98,414 
144,004 
174,435 
183,706 
165,757 
138,694 
350,422 
35,728 
64,135 
8,629 

'l65 

87 


14 








6,761 












34,679 












43,008 




36,738 




121,161 




44,450 
















2,253 




3,446 


Nontaxable returns, total 


456,984 








1,068,411 


57,015 






3,738 

81I547 
102,005 
99,472 


244 
531 
3,472 
5,087 
5,001 
4,497 


20,918 
80,103 
109,005 
103,009 
49,965 
76,100 


2,269 
4,285 
4,410 
2,092 
6,030 


3,152 

194^572 
256,353 
249,839 
149,190 
181,885 


362 

8I2SO 
12,804 
13,455 

8,640 
12,428 


626 




868 








5,601 




5,022 




3,752 








8,099,222 


713,150 
2,030,389 


3,942,487 

2,463,331 


158,322 
189,799 


4,331,334 
11,656,525 


243,018 
818,150 

512,457 






214,349 


Ret $ , 


23S,526 







NOTE: Detail may not add 



and certain miscellaneous excise taxes, the taxes paid 
deduction for 1964 increased 7.9 percent over 1962. 
Chart 4 presents a percent distribution of taxes paid 
by type of tax. Table O shows the number of returns 
with, and amount of taxes paid by type of tax and by 
income classes. The types of tax are described below. 

Real estate 

The largest portion of the deduction for taxes, 43.0 
percent, was taxes imposed upon real estate, amounting 
to almost $6„1 billion. This deduction was reported or 
72.9 percent of the returns with taxes deducted. 



General sales 

Over 84 percent of the returns with taxes deducted 
showed an amount of State and local retail sales taxes. 
The deduction, amounting to $2.6 billion, was 18.6 per- 
cent of total taxes paid. 

State and local income 

The deduction for income taxes imposed by States, and 
by political subdivisions thereof, amounted to about $2,9 
billion, or 20,3 percent of total taxes. Almost 71 percent 
of this deduction was reported on returns with income 
$10,000 or more. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Personal property 

Only 2.8 percent, $397 million, of taxes deducted repre- 
sented State and local ad valorem taxes on personal prop- 
erty imposed on an annual basis. 



State and local gasoline 



Almost $1,6 billion of non-Federal gasoline taxes were 
reported on 22.5 million returns. This was the most fre- 



quently deducted tax, being claimed on 84.6 percent of all 
returns with taxes deducted. 

All other 

The remaining 4.0 percent of taxes deducted, $569 
million, included State transfer taxes (incurred in the 
production of income), foreign taxes paid (if not claimed 
as a tax credit), and any amounts of taxes not specifically 
identified. All taxes related to a taxpayer's trade or 
business were deducted on schedule C or F. 



Table P.— RETURNS WITH HOME MORTGAGE INTEREST DEDUCTION 


NUMBER OF RETURNS AND AMOUNT OF DEDUCTION 
GROSS INCOME CLASSES 


BY SIZE 


OF DEDUCTION AND BV ADJUSTED 




Number of 
returns 

mortgage 

deduction 


Amount of 
deduction 


Size of deduction 


Adjusted gross income 
classes 


Under $50 


$50 under $100 


$100 under $200 


$200 under $300 


$300 under $400 


$400 under $500 


Number of 


Ajoount 


Number of 
returns 


Amount 


Number of 


Amount 


T.Z.f 


r T).o„.^d 


Number of 
returns 


Amount 


"T.Z.f 


Amount 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


(14) 


Grand total 


12,947,834 


6,391,183 


360,230 


9,982 


528,515 


39,632 


1,481,890 


225,419 


1.688,459 


419,744 


1,638,838 


590,327 


1,662,924 


746,035 


Taxable returns, total 


12,404,173 


6,115,135 


339,883 


9,341 


500,093 


37,539 


1,416.298 


a5,5ii 


1,623,462 


403,744 


1,619,019 


566,363 


1,595,476 


715,838 




135,649 
330,731 
636,230 

ll 526^610 
1,612,302 

1^246^434 

3,021,769 

696,599 

490,307 

44,781 

7,123 

203 


33,669 
96,630 
211,749 
403,079 
627,242 
717,736 
726,844 
635,658 
1,714,537 
485,875 
403,044 

3,341 
373 


15^261 
25,903 
35,271 
47,630 
44,237 
39,336 
30,215 
23,311 
52, (»0 

170 


708 

970 

1,400 

1,200 

1,080 

890 

1,385 
297 


5,724 
20,372 
30,258 
49,979 
76,204 
65,557 
70,156 
42,328 
32,064 
78,948 
16,940 
10,403 

1,C13 
142 


379 
1,493 
2,225 
3,790 
5,580 

5^272 
3,302 
2,435 
5,965 
1,274 
765 

13 


10,491 

69|005 
119,991 
177,925 
211,730 
133,813 
164,604 
119,659 

43)313 
23,619 

298 


1,571 

10^215 
17,850 
27,695 

27I773 
25,393 
18,142 
38,051 
6,725 
4,315 
340 

1 


Ij 24,122 
70,799 
113,632 
186,024 
244,482 
231,429 
199,568 
144,822 
312,988 
59,671 
32,368 
2,701 

5 


5,814 
17,334 
28,162 
46,593 
60,482 
57.976 
49.635 
36.038 

14l840 
8,200 

676 

1 


49,157 
97,588 
170,215 
243,108 
232,491 
218,541 
152,255 

58)874 
35,003 

2,806 


6,744 
16,939 
33,912 
59,100 
84,797 
81,837 
76,839 
53.368 
118.815 
20.640 
12,188 
982 


36,905 
37, Ul 
154,112 
212,113 
223,621 
226,360 
169,901 

64,'556 

39,515 

"12 






















68,931 


$6,000 under $7,000 


95,498 






$9,000 under $10,000 

$5o'oOO under $100,000!!;!!; 

$100,000 under $500,000 

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


76,751 
163,994 
29,001 
17,748 
1,410 


Nontaxable returns, total 


543,661 


276,048 


20,347 


641 


23,422 


2,093 


65,592 


9,908 


64,997 


16,000 


69,819 


23,964 


67,448 


30,147 


Under $600 


6,236 
16,533 
72,577 
106,269 
116,433 
88,782 
136,831 


2,923 

25*496 
45,181 
55,025 
47,130 
95,090 


1 -• 

6,807 
307 


272 
145 

8 


} 2,322 

I 6,908 

6,U0 

7,320 

l| 5,762 


453 
552 
436 


2,742 
17,152 
16,958 
14,972 


2,651 
2,550 
2,135 
969 
1,157 


3,141 
10,937 
14,632 
12,653 

12^434 


793 
2,715 
3,581 

3.079 

3'. 088 


2,625 
9,400 
13,460 

13,426 
16,889 


3.154 
4,589 
4,829 
4.610 


2,902 
6,425 
13,955 
14,225 
13,531 
16,410 










2 866 








6,352 




6,053 










Ret d $5 000 


7A4liu.6 
4,269,036 


3,194|363 
2,669,034 


135^032 
74,015 


5^226 
1,913 


131,097 
289,912 
107,506 


9,717 
21,817 
8,098 


291,710 
865,224 


43,385 
132,524 
49,510 


261,116 
1,018,344 


64.222 
253,706 


219,230 
1.032,429 


75,726 
361,446 
153,155 


183,197 
1,002,053 


83,955 


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


449,525 
212,555 




Size of deduction— Continued 




$500 -orider $600 


$600 under $700 


$700 under $300 


$800 under $900 


$900 under $1,000 


$1,000 under $2,000 


$2,000 or more 


Adjusted gross income 
classes 


Number of 


Amount 


Number of 
returns 


Amount 


Number of 


Ancunt 


Number of 


Amount 
(•n.o„.»d 


Number of 
returns 


dolttr,) 


Number of 
returns 


don.r.J 


Number of 


fn>n,.md 




(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 


(28) 


Grand total 


1,458,054 


798,781 


1,183,090 


769,388 


935,000 


698,721 


662,460 


560,342 


416,515 


393.397 


840.339 


1.043.134 


36,523 








Taxable returns, total 


1,404,152 


769,287 


1,144,419 


741,081 


397,320 


670,430 


636,196 


533,066 


398,315 


376.679 


796,350 


933.239 


32,688 


82,915 


Under $1,000 


1 7,089 

22,531 

54,505 

112,483 

130,020 

220,896 

183,447 

159,264 

351,915 

67,050 

41,270 

3,183 

486 

10 


3,852 
12,322 
29,349 

98*643 
121,227 
100,715 

193,059 
36,760 
22,603 

266 

5 


12,272 
38,518 
76,906 
141,142 
167,954 
155,058 
131,139 
313,339 
61,262 
39,338 

405 


7,923 
24,874 
49,741 
91,251 
108,653 
100,258 

203,234 
263 


6,921 
17,930 
47,055 
92,658 
m,049 
123,268 
124,177 

12',?fl 

35,693 

2,967 

457 

10 


5,109 
13,533 
34,337 
68,847 
82,859 
91,968 
93,222 
209,798 
41,031 
26,703 
2,223 
342 


(1 16,559 

23,195 
48,428 
60,346 
93,130 

50^574 

367 


13,915 

19,6C» 

40,924 

50,953 

73,684 

71,327 

190,378 

42,791 

26,988 

2,171 

312 

9 


(j 2,952 

V 4,440 

10, 227 

16.735 

27.200 

48.810 

50.632 

156,324 

48,864 

29,552 

2,229 

343 


4.231 
9.647 
15.929 
25.619 
46.138 
47.700 
147.750 
46,327 
28,099 
2,114 
325 


5.263 

15.602 

26,093 

42,412 

44,016 

54,277 

293.122 

153.144 

142,126 

14.201 

2.186 

69 

29 


5.210 

6.128 

18.183 

31.479 

51.067 

51,444 

62.374 

353,075 

194.096 

191.399 

20,044 

3,099 

100 


2,705 

4,566 
5,222 
15,CB8 
3,953 
1,079 
16 
































$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

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


U,128 

37)348 
11,295 
3,748 


Nontaxable returns, total 


53,902 


29,494 


43,671 


28,307 


37,680 


23,241 


26,264 


22,276 


18,200 


17,218 


43,489 


54,395 


3,835 


12,872 




6,535 
U.,931 
11,189 

9,970 


3,634 
6,537 
6,121 
5,367 


) 

5,350 

UA03 
9,248 
10,506 


3,796 

4,514 
7,207 
6,000 

6,790 


2,327 

5,833 
6,611 
7,396 
15,013 


2,130 

4,405 
4,937 
5,519 
11,250 


1,827 

3,713 
4,620 
5,162 
10,942 


1,525 

3,ni 

3,944 
4,375 
9,321 


4,229 

5,817 
3,385 
4,769 


3,954 

5,499 
3,200 
4,565 


j l,lt» 
3,214 
4,486 
7,677 
6,238 
20,765 


1,481 
4,399 
5,708 
9,311 
7,574 
26,422 


1 : 

( 3,335 
























$5,000 or more . 










123,800 
869,709 
464,545 


67,182 
476,817 
254,782 


88,164 
682,123 
417,303 


57,038 
441,462 
270,838 


512^747 
374,685 


35,633 
382,626 
280,462 


31,881 
319,357 

311,222 


26,870 
269,934 
263,538 


20,823 
153,140 
237,552 


149^375 
224,845 


32,292 
200,915 
607,132 


765)402 


(^) 


(^) 


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





included in the . 



245-158 O - 67 ■ 



42 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



DEDUCTION FOR HOME MORTGAGE INTEREST 
ALMOST $6. 4 BILLION 

Of the $12.5 billion interest paid deducted for 1964, 
over 50 percent was for home mortgage interest. Sixty 
percent (12.9 million) of the returns with any interest 
deducted showed home mortgage interest. 

Table P presents a size distribution of the home 
mortgage interest deduction by income classes. The 
average (mean) deduction was $494. Returns with income 



under $5,000 showed an average deduction of $343, while 
those in the class $5,000 under $10,000 had an average 
deduction of $447. In the income class $10,000 or more, 
the average rose to $625. 

Home mortgage interest deducted included such items 
as (1) interest paid by a tenant-stockholder on his portion 
of indebtedness of a cooperative apartment, (2) interest 
paid by a condominium apartment owner allocable to his 
share of the property, and (3) redeemable ground rents 
paid or accrued. 



e i 



II! II 



IIP*' 



I ^2 s : 



lis 1^ 






^11 p 






III IT 
III Ji 



lisl I? 



:SS8g slsss 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Sissp KftS^^ 3 






ssliS sr|s3 I 



>t<n^ojt^ (D f-i n o n^ 









3S§S S " I 












:RiSS8 SSSS3 S 



t.s2:jf; °"."Si_s s 



a § § H K 3 a_s 



gagSg 35fS§ 

iiiii lii^" 



l\¥3. 3pJ. 



gSgS3 gSSg 



fSIss s 3 



ssss? 












iii^i Hi s: 






11 



mil 



llIlT 









Ill' 



if?i= 






IplI 

•III!? 












p_S§3 aiiii s 






!_3?J3S ^.^.e^.m" S 









"aS5s sS^"*-^ 3 



'SSSS EiqiS-"™ 



S5H2 spssS 3 



^5Sa S5 



sisSS SS § 



assy's ^■'^' 



g§l3§ S5g i 



^r~^o«S r->j>j- n 



|||r"s s"""" 



sslis |3^ ^ 



3g:sss s;S § 









sgsas 33'-"' 



SoSSS mS 






ass-s. s-asas 



§!§§§= 



I 31111 mil : iiill mm 
I Jsiii §§§§§ i Il§§§ §iii§§ 



I i 



m& ifeiaS. I 



Kuzs ag-fess-u 



i4a.a *ss.fes.s 



I I 51111 11111 : ||iii 111111 

-''- s |i§§§ §§§!§ I |o§§§ iiiiii 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



li 



I i 



i 












11 



.si? 

*" 3 S I ^ 



lnii 



S " s I* 



III 1^ 



'iSsR Issss 



'tntoo^Ri "°;S3S'' 






'SSJJ, §J.^.R^. 3 






:S I 3 



S 38 3 § 
S S3 2 S 



".5.°° ~^.°J 









IIP. ikAki 3 






rH S cv mfS f^i W O >r> 



SInoyDrH £>t>m 



gs"3§3 g'sS ■"" 









to fn 3 o Ti QO m r>j g TO 



Svoc^tooi oJr-cM^ 



|SSS| 3Sg3 § 



;?K ssss a 



^ 1 § 



ass-s ^fessu 



lasa- s&fesss 



I °-iiii mil : pill mill 



s saas* »«.&»s- s g*^aa is^fess. 



§ Si 



lis]] 

I 2-^1 -I 



|s|l? 

Illli 



j|ll 



il^i 



nil? 






ilin 
lliJi 



SSoS 23qS n 



iiH 38S8 § 



'Sss? kSs S s 



'§3^0 ^^^§^ S 

°S>'S S3-- S 



'IssS §S?: 



Sals 3i§H S 



SSS3 3SS S S 






3S SEi-° " S 



sa" 5?ci»o; ^ 



iiiS 5s§?5 s 






g3§SS SS 



|gS3| gS3 S 



spssi ssS § 



nUs Sss s 



sSasR ^o ^ 



gssp. II 






3S_3_S3_ SssJ 






3 i Ijlll lljll I ,,, _^^^_ 
^ » !§§§§ §§§§§ I s|§§i §§§§§§ 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



IIJ: 



nil! 

Ill d« 






If 









il 






1,2 § 



II 






36Hs S I ' ' i 



SS£SS S S 






'IH 



3SS 3 












3H_6s 8 3 ' ' i 









g ' 



p^sSs S 



sSSss 






:IIS" 









8|S§S 



si 






|H> 






II 1^ 



ills? 

nw 












SS"S£ ■"" 






§S3ig 8 



!lH§ I 



!RS 3 






H§3 S ■ ' 






i^a* ssfesau 



;3 ^. :»3*S ^feSiS-S- I 

I I |llli Hill I pill llllll 






I Is 



Iss 



ifess ? ISuaa i&isi£i 



1 s °-iiii mil I §1111 llllll 

6 » lilii §§§§§ • Il§§§ §§§§§§ 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 












3 S 8 1 = 






■HI e^ 



.Rg§ 



^.S IT 
1^1 J I 



111]? 



a §si I 



Sg " 8 



s Ssl 3 i ' 












3sS § 









s I IIJIl jllll f ijjil Ijllll 

^ ^ !§§§§ §§§!§ I Tliii §§§§§1 






111: 






IlIJi 



^2S s : 






■ 3 s 



3 a 
5 I 



ddii ii&&A I 



=»a* ssfeaas 



I |iiii iiiii I i|iii iiiiii 



Idi^i am I l**sis isifesia 



I? 
°^ 
1 1 i 

s: 1 

3s 2 

11 i 

la '^ 
1-^.° i 



Table 14.— RETURNS WITH 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS, 



Adjusted gross income 



D-isiness or professii 



Grand total. 
Taxable returns, total. 



507,507 
,909,383 
3,283,510 
3,445,931 
3,276,598 
2,829,333 



1,072,746 

1,867,157 

248,810 



154,141,953 



121,095,292 



3,023,712 
3,206,897 
3,079,417 



104,152 
250,469 
387,682 
479,983 



1,229,250 

617,837 

739,454 

67,820 

8,049 



19,351 
IB, 229 
11,950 
9,119 
19, 195 
2,293 
2,497 



1A2,760 
204,328 
256,525 
253,595 
216,719 
227,030 



Under $600... 
$600 under $1, 
$1,000 under i 

$3,000 under : 



Returns under 



11,736,- 
2,497,( 



1,264,468 
1,9M,950 
3,574,195 
3,731,719 
2,620,874 
1,753,077 
1,229,197 



.,14A,061 
.,436,305 
:, 134,387 
,592,517 
,061,601 
.,469,840 
890,829 



56,053,084 
68,733,029 
29,355,841 



297,065 
271,8f 

172, o: 

92,724 
92,856 



50,300 
86,590 
264,289 
240,582 



280,093 
59,177 
35,636 



196,0 
68,675 
31,968 



1,605,162 

1,160,520 

725,650 



369,906 
162,198 

40,744 



410,387 
174,771 
87,412 



Adjusted gross 



Ordinary gain from 
sales of depre- 
ciable property 



) under $3,000. 
I under $4,000. 
1 under $5,000. 



■ $10,000. . 
^r $15,000. 
:r $20,000. 
r $50,000. 
:r $100,000 



126,602 
136,094 
121,570 
134,345 
115,801 
111,< 



1,020 
12,742 
13,004 
17,748 
24,658 
27,000 
25,572 
25,269 
30,976 
22,515 
64,376 
17,010 



2,012 
2,874 
4,049 
7,035 
5,435 



10,723 
3,152 
3,335 



3,524 
3,629 
4,225 
2,919 
2,516 
3,923 
5,339 



1,599 
2,036 
1,519 



$500,000 under : 



254,724 
163,132 
U 1,864 



8,391 
6,354 
10,386 



192,077 
112,356 
47,141 



473,478 
431,007 
756,595 



3,936 
2,919 
8,161 
5,951 



34,656 
25,319 
17,580 



U,272 
11,553 
IB, 975 



40,566 
19,430 
8,530 



"Description of ■ 



"Explanation of 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Interest receiv. 



Pens ions and 
(taxable portion} 



Taxable retu: 



under $2,000., 

under $3,000., 

I under $5,000., 

under $6,000., 



Nontaxable returns, 



$600 under $1,000. 



203,574 
94,227 
3,935 



206,802 
221,038 
226,653 



554,256 
180,550 
150, 170 
11,951 



70,206 
13,029 
5,879 



13 847 


8,817 




10,369 


LI, 239 


15,275 


8,346 


11,122 


7,585 


8,347 


20,307 


23,436 


5.693 


11,099 






322 


2,762 


53 


2,132 



1,827 
1,355 



68,853 
ll'324 



462,767 
469, 187 
653, M2 



355,488 
88,420 
41,637 



3,767,870 
3,047,213 
1,515,600 



198,481 
46,920 
17,91/; 



1,441,973 
1,081,094 
901,081 



,680,381 
,619,716 
,473,376 



$50,000 under : 
$100,000 under 
$500,000 under 
$1,000,000 or 1 



$600 under $1,000 
$1,000 under $2,0 
$2,000 under $3,0 
$3,000 under $4,0 
$4,000 under $5,0 
$5,000 or more... 

Returns under $5,00 
Returns $5,000 unde 
Returns $10,000 or : 



101,070 
15,818 
3,317 



85,409 
38,567 
14,093 



719,340 
380*773 



3,873 
8,105 
3,074 



5,032 




320,491 


7,353 


685,527 


54,546 






1,415,286 


48,315 


1,578,623 


40,869 




24,437 




17,356 


,459,481 




1,322,488 


11,423 


,183,236 


28,196 


766,022 




711,726 


4,520 



I 17,659 
40,916 
70*356 



48,927 
45,495 
108,037 



2,395,794 

1,420,699 

682,762 

359,394 



,533,156 
,733,429 
,813,939 



crlptlon of the Saaiple and Lijnltations of the Data" and "Explanation of Classifications 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 14. —RETURNS WITH STANDARD DEDUCTI 



Tax credits--Contlnued 



tax 



Tax from recomputed 

prior year 

investment credit 



Self-employment i 



Tax withheld 



,000 under $2,000.. 
,000 under $3,000., 
,000 under $4,000., 
,000 under $5,000., 
,000 under $6,000., 
,000 under $7,000., 
,000 under $8,000., 
,000 under $9,000., 



17,032 
1A*,944 
229,1, 



2y,,lt2 
173,352 
U8,709 
114,372 
97,657 



3,559,1 
2,9«,' 
3,138,1 



$10,0 
$15,0 



) under $100,000. 



751,261 
693,295 
103,404 
36,109 



Nontaxable returns, total. 

Under $600 

$600 under $1,000 

$1,000 under ; 



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



457,572 
277,973 
145,876 
67,075 



Returns under ; 
Retumfl $5,000 
Returns $i0,00( 



Cash requested 



only requested 



189,109 
189,792 
175, 197 



46,892 
40,635 
32, W7 



$10,000 under $15, ( 
$15,000 under $20, ( 
$20,000 under $50, ( 

$100,000 under $50( 



92,969 

351,232 
206,471 
318,472 
50,903 
15,572 



Nontaxable returns, total. 



under $1,000. 
00 under $2,00( 
00 under $3,00( 



,201,940 
869,547 
500,047 
282,471 



108,873 
125,726 
108,134 



2,433 
1,513 

3,077 



Returns under $5,000 

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



5,859, 

5,422,867 

1,305,642 



See text for "Description of the Sample 
^Estimate Is not shown separately becaus 
^Negative "Other sources." 
NOTE: Detail may not add to total becau 



"Explanation of 



of high samplln 

of rounding. 



included in the appropriate totals . 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



3le 15. —RETURNS WITH ITEMIZED DEDUCTIONS: SOURCES 



BY ADJUSTED 







returns 








, 


Salaries 




Business or profession 


Fam 




Number of 
exemptions 


gross 




Net profit 


Net loss 


Net profit 


Net loss 




Number of 
returns 


Amount 
dollar.; 


Number of 


*ii.r.; 


Number 
of 


Amount 

r7h>».d 

d.ll.r.; 


Number of 


Amount 


Number of 


Z"! 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


Grand total 


26,909,591 


91,146,029 


244,070,130 


23,576,612 


190,109,102 


2,721,257 


17,636,158 


459,021 


735,901 


410,739 


1,200,753 


376,113 


765,853 


Tameable returns, total 


25,009,385 


84,774,680 


237,951,274 


22,637,151 


187, 191, 081 


2,404,332 


16, 854, 618 


387,207 


543, 833 


327,677 


1,046,588 


326,126 


525,378 


Under $1,000 

:, 1,000 under $2,000 
1,2,000 under ! 13, 000 

ili^OOO under Is^OOO 
15,000 under $6,000 

i 16, 000 under ;7,000 
17,000 under 18,000 
8,000 under 19,000 
19,000 under $10,00 
;10,000 under $15,0 
115,000 under :i20,0( 
120,000 under :150,0( 
150,000 under $100, 
100,000 under $500 
1500,000 under $1,0 
1,000,000 or more. 


J.'.'.'.'.'.'. 
0.'.'.'.'.'. 

30,000'.. 


12,270 

364,852 

947,484 

1,548,821 

2,088,651 

2; 914; 586 
2,854,688 

1', 945; 996 
4,725,342 

ll 095^718 
154,258 
34,128 

1,056 


12,270 

432,966 

1,521,141 

3,229,468 

5,387,034 

8,128,575 

10,201,354 

10,695,583 

9,564,831 

7,716,527 

18,252,032 

4, 626, 295 

4, 279, 705 

597,675 

124,056 

3,628 


11,006 

5; 486; 216 
9,438,549 
14,580,981 
16,951,285 
21,399,293 
20, 920, 221 
18,443,156 
56,339,667 
20, 571, 315 
31,427,156 
10,151,383 
5,574,132 
699,724 


8,205 

7561567 
1,303,492 
1,837,028 
2,422,138 
2,738,646 
2,704,805 
2, 348, 685 
1,857,411 
4,436,128 

IS 

665 


7,195 
402, 603 
1,809,492 
4,369,842 
7,956,386 
12,872,755 
17,171,400 
19,701,460 
19,301,496 
17,071,135 
50,180,437 
15,651,904 
15, 679, 069 
3,567,015 
1,160,646 
46,739 
21,302 


35)622 
87,298 
162,585 
210,164 

235: WS 

217,189 
179,998 
140,395 
403,797 
180,711 
274,337 
35,417 
4,529 
89 


1,522 
44,063 
162, 224 
383,764 
612,627 
764,442 
789,427 
805,152 
708,594 

2,556,465 
1,953,967 
5,635,122 
1,488,922 

286,514 
10,745 
9, 010 


3,578 
13, 684 
24,736 
36,533 

48:321 
39,332 
34,918 

63,076 
20,597 

4:664 

1,910 

129 

65 


2,953 
12,743 
19,425 
40,376 

IS 

33,674 
26,858 
75,335 
30,312 
87,537 
38,035 
42,673 
6,570 
9,589 


(M 

23)947 
35,720 
41,480 

26)214 
21,573 
14,278 
40,088 
16,963 
21, 070 
3,370 
603 
22 


(') 

10,148 
35,948 
65,790 
85,497 
85,139 
75,985 
53,767 
51,357 
42,413 
148,925 
109,647 
204,157 
55,842 
20,135 
1,075 


(■) 
3,444 

26)622 
37,231 
40,888 
39,236 
33,691 

17)428 
39,365 

25)502 

6,605 

2,496 

145 


(1) 

1,799 
12,910 
32,355 
42,202 
42,728 
46,238 
37,936 
27,525 
24,895 
55,591 
34,084 
133,328 
51,248 
52,628 

5)295 


Nontaxable returns, total 


1,900,206 


6,371,349 


6,116,656 


939,661 


2,918,021 


316,925 


761,540 


71,614 


192,068 


83,062 


154,165 


49,987 


141,475 


Under $600 

1600 under $1,000.. 
! 1,000 under $2,000 
! 12, 000 under ! 13, 000 

13,000 under Ik4,000 
i 4,000 under ^5,000 
(15,000 or more 




463^534 
468,993 
373,473 
214,553 
257,177 


75,362 

160,854 

990,341 

1,342,940 

1,381,000 

1,4551653 


11,317 

7071239 
1,167,554 
1; 286:549 

1,919)752 


176 
214 

173 


765 

322 
384 
318 
360 
323 


21,563 
40,640 
239, 206 
468, 6U 
614,885 
482:566 
1,050,526 


5,557 
12,365 

75:922 

64,704 
45,736 


6,286 
9,191 
71,598 
142,755 
149,556 
146,126 
256,028 


2:537 

16:309 
14,495 
9,090 
12,702 


6,640 
5,596 
23)373 
29,614 
24,107 
16,733 


2,319 
3,226 

20)985 
15,423 


630 
1,497 
19, 743 
28,871 
30,670 
22,226 
50,528 


3,222 

2,012 

u)287 
?)g 


10,956 
5,821 
15,220 
16,450 
23,533 
17,322 
49,073 


Returns under $5,000 

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


6,605,108 
13, 064, 645 
7,239,838 


15,498,615 
47,673,301 


22,142,299 
95,754,638 
126, 172, 990 


4,941 
12,234 
6,400 


,448 


16,413,014 
87,030,373 
86,665,715 


762,288 
1,054,773 


1,729,712 
3,915,376 
11, 991, 071 


137,643 
206,041 
115,336 


183, 565 
208,014 
344,323 


182,663 

144,977 
83, 099 


301,367 
352,594 
546,791 


163)543 
88,229 


181,763 
200,500 
384)568 




Pa.-tnersh 


P 


Sales of capital assets 


Ordinary gain from 

sales of depreciable 

property 


sales of 


property other thai 
assets 


capital 


Adjusted gross income 


Net prorit 


Net loss 


Net gain 


Net loss 


Net gain 


Net loss 


classes 


returns 


dolUrm) 


TZ^' 


(Thou^J 


Number of 


Amount 
dollar.; 


Number of 


dblliraj 


Number of 


Amount 


Number of 


Amount 
fn«,.«d 


Number of 


Amount 
*ll.,0 




(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 




936,411 


8,528,863 


273,188 


658,727 


3,205,192 


7,083,505 


1,087,829 


715,247 


103,560 


73,842 


42,975 


46,427 


99,737 


141,454 




Taxable returns, total 


670,015 


8,359,606 


244,924 


531, 721 


2,663,668 


6,720,409 


997,351 


650,249 


90,137 


64,689 


36,762 


37,819 


84,814 


122,437 




5,246 
14,100 

51,004 
52,' 279 

160,520 
99,133 
211,034 
47,083 
10,262 
225 
91 


(') 

5,454 
23,930 
53, 236 
109,491 
172,020 
221,155 
228,113 
210,111 
169,310 

8041092 
3,342,314 
1,469,116 

2l',186 
13,806 


} 4,813 

9^529 
13,477 
12, 196 
17,303 
13,842 
13,733 
49, 592 
27,665 
56,788 
13,576 
4,416 
224 
121 


5,394 

111 222 

8,870 

14', 927 
12,220 
10,695 

53,' 750 
167,647 
77,158 
70,514 
12,831 
U,115 


j y!62i 

1 82,527 
122,175 
146,930 
190,457 
200, 290 
186,141 
183,386 
170,728 
650, 249 
323,670 
480,252 

26)574 
967 
423 


(^) 

5,360 
36,637 
62, 652 
86,804 
114,600 
120, 547 
129,489 
131,776 
129,769 
574,459 
444,027 
1,560,488 
1,018,096 
1,425,762 
359,058 
518,484 


(') 
5,212 
20,125 

52:105 

59,531 

66,598 

72,354 

66,161 

61,600 

225,973 

121,211 

175,229 

30,668 

4,550 

58 

31 


(') 
3,871 
13,076 

39,366 
46, 106 

40: 787 

36,702 

136, 716 

78,879 

125,274 

24,318 

3,867 

53 

29 


(1) 
1,911 
2,520 
6,350 
5,729 
6,531 

4', 789 
8,837 

16,433 
9,008 

17,286 
3,621 
1,203 


(^) 
703 

2,096 
4,132 

2)250 
4,149 

10,736 
6,713 

18,691 

3)016 
372 
172 


I 3,461 
2,730 
2,310 
1,613 
2,705 
2,205 
4,140 
6,925 

817 

15 
5 


2,470 

950 
550 

1,177 
2,332 
7,743 

9)531 

3,976 

1,788 

30 

11 


{ 2,610 

( 5,938 

6,052 

6,224 

5,443 

4)838 
5,619 

14,345 
6,686 

13,476 
3,710 
l)382 

43 




1.1,000 under t2,000 
12,000 under !;3,000 
! 3,000 under 1^,000 
i 14,000 under ^5,000 
115,000 under $6,000 
16,000 under : 17, 000 

; 8^000 Il^der • 19; 000 
(19,000 under $10,00 
10,000 under 15, 0( 
15,000 under (120,01 
(.20,000 under (50,0 
(150,000 under 100, 
(1100,000 under $500 
1500,000 under $1,0 
(11,000,000 or more. 




( ') 












4,720 


















X.'.'.'.'.'. 
X 

DO,OOo!; 


7,854 
15,931 
12,573 
25,491 
9,995 
5,390 
252 
359 


Nontaxable returns, total. . . . 


68,396 


169,057 


28,264 


127,006 


321,504 


363,096 


90,478 


64,996 


13,423 


9,153 


6,193 


6,606 


14,923 


19,017 




1 2,028 

141212 
13,381 
11,785 


1,662 

11,171 
19,111 

g;S 
74,494 


3,330 
4,346 
5,322 

till 


8,678 
10,917 
7,236 
6,941 

681000 


1 ^:^^ 
71,028 
60,322 
68,417 
39,411 
49,298 


34,376 
56,468 
50,142 

175:121 


3,347 
14,345 
25,119 
17,555 
12, 158 
15,640 


1,451 
2,724 
10, 868 
16,992 
12,031 
8,709 
12,203 


I 2,521 

2,919 
1,411 
3,415 
3,157 


1,118 

1,186 

639 

3,117 


3,214 
2,339 


1,873 
5,538 


1 2,017 

L 2,516 
^ 3,616 
I 2,859 


2,355 


(11,000 under $2,000 
12,000 under (13,000 
13,000 under ;X,COO 
14,000 under $5,000 






4,105 
3 675 
















. 


132,999 


266,763 
1,053,858 




42,763 


fci nai 




a5i 


186, 205 
340, 777 
560,649 


125,742 
371: 653 


11 




74? 


12 


26,018 
33,54^ 
40, 174 




Returns $5,000 ujider $10,000. 
Returns tlO,000 or more 


5 


83,721 
13,923 


1,58 


5)123 


694, 
6,007, 


409 


45)93? 


f'0'7 


6,277 
27,811 


40,805 
75)114 



, of table. See text for "Description of the Saa^le and Limitations of 1 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 15. —RETURNS WITH ITEMIZED DEDUCTIONS: 



Number Amount Number 



Returns 
Returns 
Returns 



$1,000 

> under *2,000 

) under i<i,000 

> under $5,000 

> under i6,000 

! under S7,000 

1 under s8, 000 

I under S9, 000 

I under $10, 000 

<0 under $15, 000 

10 under $20,000 

10 under |50, 000 

)0 under $100, 000 

CO under $500, 000 

100 under $1,000,000... 

lie returns, total 

$600 

inder $1,000 

I under $3,000 

1 under $i,000 

> under $5,000 

> or more 

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



206, X)0 
198,792 
169, 951 



637, 053 
127,946 
31, 671 

1,018 



1,185 
61, 695 
172,153 



343,046 
352,427 
323,170 



21,113 
58,033 
109, 624 



107,605 
131,182 

72,347 
356,397 
231, 716 
571,135 
195,370 

72, 835 



14,946 
32,675 
66, 143 



59,239 
72,913 
60, 214 
51,946 



14,456 
13,121 
17,084 
14,787 



26,254 

ll' 324 



2,545 

4,901 
1,736 



487,515 



17,311 
109, 123 
113, 992 



1,429 
5,723 
58,904 
82, 237 



637,475 

912, 137 

8,736,486 



179, 208 
210,478 
164,605 
85,330 



"~n — 

1,879 
72, 172 
134,036 
144, 595 



,680 



3,203 
11,765 
75,158 
95, 148 
73,792 
42, 216 
64,398 



313,233 
47l! 675 



177, 328 
331,157 
434, 387 



69,435 
72,085 
131,871 



2,012 
5,980 
14, 265 



Grand total 

Taxable returns, total. . 
Under $1, 000 



erl^;: 
er |50,( 
er $100, 



$100,000 under $500, ( 



496,021 
145,841 
111,634 
12,390 
2,001 



43, 385 
72, 174 
135,706 
177, 160 
182,849 
209,077 
176,682 
160,613 



1,321,009 
, 679, 539 
,529,582 



1,159,076 
.,684,069 
522,387 
284, 016 



2,136,128 

2, 524, 740 

2,531,394 

2, 230, 534 

1,776,951 

4,262,507 

1,016,121 

835,795 

109, 161 

24,114 

807 

338 



15,026 
84,958 
229, 776 



2,978,772 
1,060,571 



9,831 
319, 519 
367,973 
1,427,592 
1,963,363 
2, 507, 322 
2,781,854 
2,757,311 
2,407,380 
1,906,584 



(54) 

., 881, 677 

.,511,073 

199 

21,126 



428,673 
402,012 

341,070 



202,200 
150, 219 
15, 518 



Under $600 

$600 under $1,000 
$1,000 under $2,0 
$2,000 under S3,0 
$3,000 under $4,0 

$5^000 or more.'.. 



$5,00 
$10,0 



15,035 
18,575 
17,038 
15,421 
19, 306 

376, 570 
.,099,137 
768,896 



(') 
6,804 
19, 209 

23^ 095 



413,772 
579,685 
579, 725 
426, 665 
1, 110, 522 



362, 156 

932, 219 19, . 

821, 629 21, 151, 276 



127,377 
I61I735 



156,477 
210, 593 
214, 634 



3,919,014 
11,391,968 
6, 264, 574 



1, 142, 183 
5' 578! 263 



22,343 

63,716 
357, 958 
392, 599 
322,410 



i, 933, : 

12,571,1 
7,119,. 



38, 960 
50,838 
45,561 



. of table. See 1 



for "Description of ■ 



and Limitations of the Data" and "Explanation of Classifications 1 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



ITEMS, BY ADJUSTED 



Retirement income 



Foreign tazes paid 



Taxable returns, total. 
■ $1,000. 




159, 648 
102, 681 
225,962 
^19, 333 
12,013 



140,616 
119, 574 
112,018 
511,480 
333,010 
584, 581 
124,593 
31,316 



2,633 
14,909 
13,945 
51,176 



Returns |5,l 
Returns $10j 



,406,043 
111 579 



37, 792 
51, 397 
46,434 
145, 881 



17, 923 
74,672 
62,403 
43,871 
25, 067 



27,813 
I5I958 



323,996 22,161,841 



41, 454 
32, 915 








47,710 


2,705, 


41,061 




331289 


2,333, 


26,861 


1,843, 


85,198 


4,401, 


42,976 


1,022, 


63,492 


759, 




96, 


1,844 





121,887 
119, 587 
111,411 
610,380 



179,777 
599,006 
,778,750 



I of table. See ■ 



for the "Description of - 



Data" and "Explanation of Classifications 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 15. —RETURNS WITH ITEMIZED 



TAXABLE INCOME, AND TAX ITEMS, BY ADJUSTED 



Adjusted gross income classes 



Cash requested 



Grand total. 
Taxable : 




Nontaxable returns, 



Returns under $5,000 

Returns i5, 000 under $10, 000 

Returns $10,000 or more 

See text for "Description of the Sample and Limitations of 1 
^Estimate is not shown separately because of high sampling ^ 
NOTE: Detail may not add to total because of rounding. 



5,505 
4,867 
11,311 



3,805,310 562, iO? 8,852 
2, 605, 119 ' 719^ 860 



753, 393 
703, 306 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 





"^"-" 


Adjusted 
gross 
Income 


Exemptions 


L-r 


Income tax 
credits 




Joint return. 


B of husbands 


and wives 




Adjusted gross income cUsses 


returns 


Adjusted 
gross 


B<eqption6 


Taxable 
income 


Income tax 
after 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(ID) 


Grand total 


38,033,693 


154,141,953 


56,920,216 


86,141,072 


15,847,813 


17,331,936 


100,534,904 


39,404,723 


54,173,940 


9,309,185 


Tameable retioms, total 


26,296,952 


138,053,476 


37,472,077 


35,819,203 


15,847,813 


12,711,262 


90,025,846 


26,399,154 


53,945,702 


9,809,185 




3,909,383 

3^445! 931 
3,276,598 
2,829,833 
2,400,808 
1,946,787 
1,390,142 
1,072,746 
1,867,157 

112^798 

4,442 

498 

1 

1 


5,718,013 

12! 055^293 
14,733,335 
15,524,439 
15,551,857 
14,543,830 
11,780,022 
10,167,345 
21,754,575 

219801821 

277,754 

74,900 

560 

2,412 


2,564^196 

4^334^41 
4,971,463 

4^ 5391871 
3,811,587 
2,698,483 
2,072,040 
3,560,626 

216^82 

3,200 

373 

2 
1 


30,218 
1,975,431 

6! 275! 305 
8,085,460 
3,937,576 
9,342,266 
9,258,869 
7,901,288 
7,030,193 

16,330,127 

2^652! 205 

265,121 

73,531 

556 

2,410 


5,007 

319,073 

677,355 

1,063,101 

1,399,923 

1,561,032 

l! 6631 607 
1,443,237 
1,310,395 
3,149,800 

693^295 

103,404 

36,109 

271 

1,206 


143,974 
641,790 

11638; 002 
1,740,030 
1,636,658 
1,496,130 
1,130,453 

921,716 
1,676,179 

218,565 

3^586 
358 

1 


267,056 
1,648,131 
4,625,312 
7,405,443 
9,563,225 

11! 191! 991 
9,537,924 
8,740,259 

3^ 686,' 208 

'223!235 

53,504 

560 

2,412 


178,769 
940,254 
2,483,727 
3,528,558 
3,952,398 
3,943,130 
3,416,799 
2,469,872 
1,942,451 
3,393,838 
429,377 

7! 438 

2 
1 


28,729 
422,678 
1,469,385 
2,941,452 
4,524,756 
5,325,131 
6,629,326 
6,153,125 
5,923,244 

212,210 

52,401 

556 

2,410 






4,696 




67,305 




231,609 










981,410 






1,087,535 


Ig'oOO under $l6°oO0 




627,629 

556,209 














271 
































Nontaxable returns, total 


11,736,741 


16,088,480 


19,443,139 


321,864 




4,620,674 


10,559,058 


12,505,569 


233,238 




- 


3,906,604 
2,497,009 

1', 511! 342 
757,095 
394, 918 


1,264,463 
1,914,950 

3;73i;719 
2,620,374 
1,753,077 
1,229,197 


3,107,893 
2,448,171 

3', 959! 936 

2,615,261 
1,659,024 


206 

51^051 
45,284 


': 


433 U 53 
1,438,867 

366^419 
191,303 


350^874 
2,130,218 

lU27!738 
1,163,670 


746,742 

350,566 

3,032,008 

1! 531,' 853 
955,654 


39^551 
43,114 
134,782 


































?; 839^409 
2,237,776 


68;733;029 
29,355,841 


19lo8o',354 
4,255,251 


22;366[959 


4! 735^346 


8,169,378 
7,162,873 
1,999,685 


23,341,335 
26^ 118^597 


4^045! 503 


29^ 144', 831 
20,073,408 


777,960 
















Separate ret 


ims of husbau 


ds and wives 






Adjusted gross Income classes 


"-T^' 


Adjusted 


Exemptions 


(Tlm^a^d 


Income tax 
after 

dolLr,) 


returns 


Adjusted 


Btenptions 


Taxable 


Income tax 




(11) 


(12) 


(13) 


(U) 


(15) 


(16) 


(17) 


(IS) 


(19) 


(20) 




2,200,716 


5,990,805 


3,385,408 


2,639,447 


430,060 


752,467 


3,535,090 


1,087,669 


2,153,984 


408,765 








1,329,994 


4,658,163 


1,572,374 


2,634,102 


430,060 


618,137 


3,376,405 


863,187 


2,154,963 










67,098 

287^077 
290,810 
224,864 
120,596 
58,016 

11^201 
4,908 

6,662 

722 
18 


57,397 

726a43 

1,010,275 

1,005,280 

654,735 

374,564 

93^775 
45,561 

75,660 

18! 290 

1,208 

690 


40,259 

304! 332 
389,032 
326,063 
173,195 
90,104 

21^562 
6,311 

7,332 

'805 
26 
8 


8,372 

343 ; 373 
516,103 
579,643 
416,242 
255,452 
131,326 
66,611 
36,796 

64,497 

17^124 

1,174 

630 


1,358 

56^977 
83,696 
103,509 
76,046 
48,956 
36,238 

7^899 
14,939 

3,809 

5,935 

559 

395 


26,730 
85,345 
96,891 
98,563 
92,535 
76,554 

22! 713 
26,281 
li883 


216,331 
339,741 
440,512 
509,975 
496,003 
334,411 
298,174 
215,390 

307,829 

53^556 
5,320 
2,085 


25,098 
106,367 
137,794 
U8,467 
136,899 
118,757 

31! 833 
37,072 

'112 

13 


75,159 
159,011 
255,088 
321,240 
326,895 

220! 578 
161,976 

244,476 

48^913 
5,126 
2,054 




Sl^OQO d Sp'oOO 














43,804 








59,597 








42,676 








51,465 

15^499 
2,234 
1,051 












$1,000,000 or more 


. 




870,722 


1,332,642 


1,813,034 


5,345 




134,330 


203,685 


224,482 


4,021 










205,833 

26oi684 
156,944 
67,847 
21,173 
8,697 


382^391 
384,559 
233, 6U 
94,139 
49,104 


214,783 

535^560 
448,090 

99,' 347 
50,443 


2! 285 




16,064 

26^662 

\ 6,920 

454 


6,306 
19,157 
83,671 
65,065 
26,130 

3,356 


13,312 
94U37 

21,419 
1,695 


HI 
2,571 
1,333 






















\ 












1,956,646 

235,797 

3,274 


l!457'oi0 
110,346 


2,987,355 

383,372 

9,681 


'956^427 

97,029 


182^724 
25,687 


441,404 
32^063 


1,245,336 

1,906,615 

433,089 


530, 5U 
45^773 


500,735 
1,302,947 
355,254 


S3, 683 






Returns $10,000 or ncre 


83,228 



"Description of the Sanple and 



Data" and "Explanation of Class: 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



AFTER CREDITS, 







Heturus 


of surviving spouse 






Adjusted gross income classes 


Number of 


Adjusted 


Exemptions 
rn»„.«d 


Taxable 
Income 


after 
credits 


'^-' 


Adjusted 
gross 


Exemptions 


Taxable 
income 


after 




(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 


(28) 


(29) 


(30) 




108,633 


302,372 


194,148 


118,925 


21,084 


17,639,940 


43,673,789 


12,848,271 


27,044,779 


5 128 726 








...8.9 


220,171 


75,791 


118,332 


21,084 


11,591,701 


39,772,895 


8,061,573 


26,966,111 










10U02 
4,906 
6,501 
3,452 

j :: 

126 


21^207 
35,616 
22,084 
39,419 

32,107 

3,390 
712 


3,522 
13,503 

9^427 
13,681 
5,944 
7,561 

4,805 

169 
15 


698 
7,087 
13,342 
9,181 
17,911 
13,903 
27,912 

24,519 


124 
1,134 

1^475 
2,972 
2,392 
5,061 

4,719 
259 


438,809 

3,507,572 

2,259,396 

1,736,087 

1,310,265 

870,172 

576,127 

364,493 

210,685 

j 122,203 

156,717 

I 25,321 

12,989 

743 


416,961 
5,363,241 
5,595,921 
6,044,035 
5,860,889 
4,760,888 
3,720,044 

1)154; 524 
1,821,463 

349,' 110 
47,280 


263,286 
2,192,742 

625,309 
426,936 

155!355 
89,114 
119,908 

10,'654 
610 


21,820 
1,804,543 

4|300;095 
3,657,427 
2,920,885 

l!444il39 
950,012 

1,544,841 
385,494 
325,468 
45,927 


3,645 












714*329 






' 






















359,603 

114,'859 
22,119 
9,550 




















tot 1 


62,774 


82,201 


118,357 


593 


- 


6,04S,239 


3,905,894 


4,786,698 


78,663 










7,245 


2,329 
9,356 

21,626 


21,471 


6 

587 


! ' 


3,302,468 

1,878,856 

670,703 

24)545 
4,525 
2,107 


1,050,401 

1,420,785 

924,025 

8l)4«5 
18,789 
12,529 


2,116,473 

1,342,077 

912,191 

73^033 
17,624 
6,882 


133 
15,855 
48,699 
8,127 
1,287 


































90,818 


168,505 


161,730 
29,709 


68! 132 
20,128 


11^943 


15,298,262 

2,145,686 

195,993 


ul 135! 664 
2,668,712 


li 578^399 

151,581 


111 141^661 
2,321,141 


2,326,284 
2,190,401 











Data" and "Bqplanatio 



56 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 





of"'' 


Adjusted 


Exe.5.tiona 


Taxable 

Income 


Income tax 
after 
credits 


Joint r.t.r,. cf h^ta^ds and wives 


Adjusted gross income classes 


returns 


Adjusted 
gross income 


Exemptions 


Taxable 


,r~^2'. 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


'10) 


Grand t t 1 


26,909,591 


244,070,130 


54,687,615 


143,734,002 


31,305,045 


21,121,990 


212,083,078 


48,392,939 


124,554,136 








Taxable returns, total 


25,009,385 


237,951,274 


50,864,807 


143,449,081 


31,305,045 


19,947,449 


207,606,838 


45,944,323 


124,352,881 


26,858,701 




12,270 

947|a84 
1,548,821 
2,083,651 
2,644,549 
2,914,586 
2,854,688 
2,467,664 

1,095,718 

34;l28 
1,056 


11,006 
588,020 
2,419,406 
5,486,216 
9,436,549 
14,580,981 
18,951,285 
21,399,293 
20,920,221 
18,443,156 

56,339,667 
20,571,315 
31,427,158 
10,151,383 
5,574,132 
699,724 
949,762 


7,362 
259,791 
912,685 
1,937,693 
3,232,220 
4,e77,lA5 
6,120,812 
6,417,350 
5,738,899 
4,629,916 

^2;775;777 

2,567,823 

358,605 

900 


986 
154,712 

2,239^924 
4,085,416 
6,626,994 
8,977,255 
10,746,074 
11,148,639 
10,340,339 

8,263,195 

753,365 


155 

24,425 

136,890 

363,434 

679,079 

1,115,446 

1,526,578 

1,856,939 

1,953,371 

1,343,724 

6,642,279 

2,957,933 

6,188,851 

3,100,838 

^•3^o1;?fi 

425,413 


227^144 
630,838 
1,225,550 
1,923,461 
2,432,977 
2,520,422 
2,275,853 

i;U4|310 

139,407 

""'lit 
346 


29,675 
598,329 
2,426,597 
5,554,821 
10,634,386 
15,340,324 
18,903,633 
19,298,667 

53,658,891 
19,308,833 
28,817,563 
9,156,222 
4,731,774 
571,737 
647,310 


19,771 
317,503 
1,1A7,119 
2,333,474 
4,127,437 
5,601,973 
6,058,149 
5,520,021 
4,502,674 

10,696,973 

2,692,384 

2,464,174 

340,904 

69,040 


663,822 

4,21A,198 
6,995,268 
9,(»7,895 
10,070,226 
9,628,804 
33,679,336 
13,525,784 
22,170,045 
7,483,776 
3,341,091 
456,378 
532,671 








S'ooo ^er S'OOO 


1B,169 
103,836 














1,542,561 
















2,721,160 
5,523,866 
2,748,732 










''S;i?S 










Nontaxable retimis, total 


1,900,206 


6,118,856 


3,622,808 


284,921 




1,174,541 


4,476,240 


2,948,116 


201,255 






31,384 

4681993 

373,473 

2571177 


11,317 

7S^;il 

1,167,554 
1,286,549 


45,229 
96,512 
594,204 
305,764 
828,600 
579,107 
373,392 


3,417 
37,792 
51,397 
46,434 


; 


13,305 
19,151 

28?; 686 
300,694 


4,527 

220^791 
726,330 

1,037,010 
317,303 

1,654,184 


28,178 

25i;654 
570,527 
710,485 

8231750 


18 

5,004 

22,245 

35,235 

136,753 
































. 


6,605,108 
13,064,645 
7,239,838 


95|754;333 
126,172,990 


28,603;981 
16,784,467 


7,486,658 
47,923,351 


1,203,982 
8,296,108 
21,804,954 


3,095,168 

11,199,179 
6,327,&i4 


11,431,473 
83,359,050 
U7,292,548 


5,992,235 
26,585,293 
16,315,411 


2,719,411 
40,085,925 
81,748,798 






6,830,456 
19,608,448 










Separate re 


urns of husba 


nds and .Ives 






Returns o 


heads of ho 


sehold 




Adjusted gross incane classes 


um^er 
returns 


Adjusted 
gross income 


Exemptions 


Taxable 
income 


"aner ^ 


Number 


Adjusted 
gross income 


Exemptions 


Incane 


Income tax 




(11) 


(12) 


(13) 


(14) 


(15) 


(16) 


(17) 


(13) 


(19) 


(20) 


Grand total 


691,748 


4,095,460 


937,577 


2,280,653 


537,745 


1,015,004 


6,155,246 


1,418,004 


3,400,909 


720,407 


Taxable returns, total 


627,779 


3,913,733 


824,131 


2,277,933 


537,745 


946,091 


5,962,656 


1,306,470 


3,393,444 


720,407 




4,119 

72;U7 
83,353 

101,213 
79,238 

16^484 

9!l28 
9,137 
1,154 

23 
33 


3,512 

1821329 
294,634 

555,489 
514,019 
379,605 

155^773 

1551572 
268,165 
75,498 
56,685 
15,521 
100,288 


2,472 
22,451 

96|957 
131,903 

130^002 
77,670 

28|471 

44,443 

11,410 

11,651 

1,443 

399 

24 

35 


336 

7o'330 
123,729 
237,346 

277^521 
227,91A 
160,267 
97,560 
256,372 
116,422 
212,771 
53,334 
42,323 
12,908 
64,205 


2,586 

21,'432 

41,657 
53,403 
431699 

55,989 
29,891 

26^934 
22.753 

43 ',890 


13,624 

151^620 
188,700 
176,200 
77^339 
261998 
50,683 
13,411 
13,526 
2,352 

24 


1971201 
539,757 

966,835 
638,540 
578,126 

256^206 

227^533 

386,837 
156,336 
107,396 
15,257 
11,224 


16,287 
86,527 
199,553 

243,624 
153,794 
112,113 
61,984 
33,281 

20I344 
21,253 
4,224 

' 43 

13 


7,486 
58,930 
2U,404 

508,717 
391,723 
344,249 
208,274 
162,805 

168|357 
299,412 
124,123 

12^457 
9,581 










9,344 




34,661 








87,982 




69.894 




62;933 








31,160 
















51,231 








7,532 




5,567 








63,969 


181,727 


113,446 


2,720 




63,913 


192,590 


m,534 


7,465 








Under $600 


1,709 
5,896 
19,435 
16,168 
12, U9 
3,729 
4,883 


627 

29^480 
41,296 
40,503 
16;513 
48,472 


1,812 

28 ; 581 
23,724 
U,183 
16,573 


285 

323 

1,730 


; 


12^027 
6,803 


3,771 
32,027 
49,432 
42,015 
30,019 
35,276 


5,167 
23,755 
31,572 
24,347 
U,762 
11,431 


1,067 
2,053 
2,218 
2,127 
































Betums under $5 000 


2831977 


1,132,600 
1,899,938 
1,062,920 


4U,974 
452,382 
70,218 


454,373 

1,060,593 

765,634 


77,072 
199,542 


501,067 
432,310 


2 1 860 ; 330 


669,937 
625,476 


677,686 
1,617;041 
1,106,180 


ni,954 
290,972 











Sample and Limit 



of the Data" and "Explanation of Classifications i 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 17. —RETURNS WITH ITEMIZED DEDUCTIONS: ADJUSTED GROSS INCOME, EXEMPTIONS, TAXABLE INCOME, 
BY ADJUSTED GROSS INCOME CLASSES AND BY MARITAL STATUS OF TAXPAYER— Con 


AND INCOME 
tlnued 


TAX AFTER 


CREDITS, 








Returns 


of surviving 


spouse 




Return 


of single persona not head of household or 
surviving spouse 


Adjuoted gross Income classes 


Number of 


Adjusted 


Exempt ions 


Taxable 


credits 

dcll.rM) 


Number of 
returns 


Adjusted 
gross income 




Taxable 
inccme 


'S9 




(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 


(28) 


(29) 


(30) 




U7,950 


641,259 


185,037 


315,527 


64,253 


3,962,902 


21,095,090 


3,254,061 


13,182,788 










90,455 


576,264 


340,198 


315, (X6 


64,253 


3,397,615 


19,891,786 


2,649,186 


13,109,785 


3,123,945 




j 14,422 

' 15,500 

18,939 

11,906 

4,103 
1,353 
5,163 

2^706 
252 
52 


35,596 
55,039 
63,854 
65,205 
45,533 
58,510 
34,336 
12, 5U 
60,708 
20,762 
77,185 
16,538 
7,667 

2,820 


18,687 

26^622 
17,951 
14,042 
12,775 
5,883 
2,676 
9,297 
2,684 
5,546 

93 


6,726 
18,535 
37,490 
31,845 
20,349 

21^381 

39,330 
14,665 
59,977 

6)189 

.2,460 


2,916 
6,119 
5,097 
3,408 

3^685 
1,277 

2^956 

14,942 
5,086 
2,954 

1,280 


1 2931896 
1 557,807 

552 1 108 
431,769 
267,935 

U5;407 
67,787 

49^790 
63,822 
11,093 
3,567 
146 
73 


7,494 
468.630 
1,409,762 
2,170,189 
2,479,571 
2,358,517 

l)479;418 
974,548 
641,591 

1,650,993 
858,616 

1,877,408 
746,740 
620,610 
97,209 
187,621 


4,891 
199,183 
427,742 
470,607 
422,755 
336,054 
221,001 
156,443 
97,814 
57, 8K 
126,091 
47,956 
65,198 
11,550 
3,852 
156 
79 


651 

127,773 

613,577 

1,217,435 

1,542,740 

1,575,333 

1,292,394 

1,041,181 

688,492 

1,200,599 

649,103 

1,437,599 

74)827 
144,949 


102 








97,056 










' 


283,849 




242,708 












91,277 
















268,806 










ll 000000 r m re 










27,495 


64,995 


44,ffl9 


481 




565,287 


1,203,304 


604,875 


73,003 










j .» 

8,802 

! 5,619 

1,051 


15,764 
21,988 
20,723 
6,520 


16, m 
U,102 

1,262 


1 i 


; 


14,950 
59,200 
275,764 
135,805 
44,585 
17,906 
17,077 


5,987 
49,752 
4U,619 

153I26O 
79,429 
175,300 


14,146 
45,946 
285,603 
160,983 
55,321 
22,505 
20,371 


3,362 
31,027 
26,805 
8,587 
3,222 








tl, 000 under $2,000 






















33 1 197 


186|446 


112,342 
54;527 


63,232 
115,755 
136,540 


10,095 
19,578 
34,581 


2,577,682 

1,115,483 

269,738 


7,563,650 
7,413,120 
6,118,319 


2,109,681 
886,303 
258,077 


3,571,956 
5,OW,037 
4,566,795 


585 066 






Returns $5,000 under J10,000 

Returns $1U,UU0 or more... 


1,583,316 







See text for "Description of the Sample and Limit 
NOTE: Detail may not add to total because of rou 

245-158 O - 67 - 5 



and "Explanations of 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 






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SECTION 3 



Tax Base and Tax Rates 



TABLE CONTENTS 



ic Tables 
Returns with n 
tions, exemptii 



K and surtax 
able income 



Returns with alternative tax computatio 
ductions. exemptions, taxable income. 



Adjusted gross income, deduc- 
tax items by adjusted gross in- 



Adjusted gross income, de 
tax items by adjusted gros: 



Income tax generated at each tax rate for all returns and returns under 
each of the three tax rate schedules. 70 

All returns and returns with taxable income: Selected sources of income 
and loss, deductions, exemptions, taxable income, and tax. by marginal 
tax rate classes. 74 

All returns with taxable income: Number of returns and amount of taxa- 
ble income by adjusted gross income classes and by marginal tax rate 
classes. 76 

Joint returns and returns of surviving spouse: Number of returns and 
amount of taxable income, by adjusted gross income classes and margin- 
al tax rate classes. 79 

Separate returns of husbands and wives and of single persons not head 
of household or surviving spouse: Number of returns and amount of taxa- 
ble income by adjusted gross income classes, and by marginal tax rate 
classes, 81 

Returns of heads of household: Numljer of returns and amount of taxable 
income, by adjusted gross income classes and by marginal tax rate 



household (see "Marital status of taxpayer", section 7). 
On an equal amount of tax base the schedule 111 tax was 
usually half way between the taxes computed from sched- 
ules 1 and IL Table 21 shows the income tax generated 
at each tax rate. 

Most taxpayers used the regular tax computation 
(normal tax and surtax) which applies the graduated 
rates to brackets of tax base. 

A small class of taxpayers with relatively high income, 
some portion of which is capital gains, elected an alterna- 
tive tax computation to derive a lower tax on the capital 
gain income. Another group of taxpayers elected a third 
method of computation, income averaging, when their in- 
come has increased substantially over recent years. 
Where applicable, the averaging computation resulted in a 
lower tax base and liability in the current year and re- 
duced the severity of the tax increase due to sharp upward 
fluctuations in income. 



TAX BASE INCREASES ALMOST 10 PERCENT 

Chart 5 shows that a total tax base of $229.9 billion 
was reported by taxpayers in 1964, almost a 10 percent 
increase over 1963. The major portion of this tax base, 



There was a billion dollar decrease from 1963 in 
individual income tax liability, reflecting the first of a 
two step reduction in tax rates provided for in the Reve- 
nue Act of 1964. This first step, applicable only to 
taxable years beginning in calendar year 1964, put into 
effect rates ranging from 16 percent to 77 percent. 
These rates represented a significant reduction from 
those rates in effect for the preceding 10 years which 
ranged from 20 percent to 91 percent. 



PROGRESSIVE RATES APPLIED 

The Federal tax system provided a progressive rate 
structure for the individual income tax. These graduated 
rates were applied to a tax base (or taxable income) 
which was computed by reducing a taxpayer's adjusted 
gross income through the allowance of certain statutory 
personal deductions. Depending on his marital status for 
tax purposes, the taxpayer selected one of three rate 
schedules to compute his tax. Schedule 1, the most steeply 
graduated, was applicable to single persons not qualifying 
for the other two schedules and to married persons filing 
separate returns. Schedule 11 was applicable to married 
persons filing joint returns and to certain widows and 
widowers. Schedule HI was applicable to unmarried or 
legally separated taxpayers who qualified as heads of 



Chart 5. -TAX BASE AND TAX, BY METHOD OF TAX COMPUTATION, 
Total tax base = $229.9 billion 




65 



66 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



$214.9 billion, was attributed to taxpayers using the regu- 
lar computation (normal tax and surtax only). Taxpayers 
electing the alternative tax computation to derive a lower 
tax on capital gains accounted for $7.8 billion of the total 
tax base. This amount included $2.6 billion tax base taxed 
at the capital gains rate. The remaining $7.1 billion was 
attributable to non-calendar year returns (which were 
subject to two sets of tax rates), prior year delinquent 
returns and returns with income averaging. In the charts 
and tables these are called returns with special tax com- 
putations. 

Chart 5 shows further that income tax (before credits) 
amounted to $47.9 billion, a 2.5 percent decrease from 
1963. The amount of tax reported by taxpayers with the 
special tax computations (mentioned above) was $2.0 
billion. Taxpayers using the "regular" tax computation 
showed income tax of $42.3 billion, and those electing the 
alternative tax computation showed $3.6 billion. The 
capital gains rate produced $1.3 billion of tax. 

The tables that follow in this section deal with informa- 
tion on method of tax computation and tax rates. Tables 
19 and 20 present selected income, deduction, and tax 
data for the 51,823,000 returns of taxpayers using the 
"regular" method and the almost 100,000 returns of 
taxpayers electing the alternative method, respectively. 
The income tax (before credits) for the former group was 
19.9 percent of the tax base. The income tax for the 
latter group was 46.1 percent of the tax base. 



MARGINAL TAX RATES 

Data in tables 21 through 26 are classified by marginal 
tax rates. The marginal tax rate was the highest tax rate 
applied to a portion of a taxpayer's tax base. The first 
bracket rate of 16 percent was applied to the initial $500 
of tax base for single persons and the initial $1,000 of 
tax base for all other taxpayers (including those individ- 
uals who were heads of household or surviving spouses 
for income tax purposes). There were about 6,752,000 
returns of taxpayers whose highest rate of tax was this 
first bracket rate. In contrast, the highest bracket rate, 
77 percent, applied to tax base over $200,000 for single 
persons, married persons filing separately, and heads of 
household, and over $400,000 for joint returns and sur- 
viving spouse returns. Only 659 returns showed the 77 
percent rate as their marginal rate, but these taxpayers' 
average tax base amounted to $682,000 and their average 
tax was $454,000. Table 21 shows number of returns, 
tax base, and tax classified by marginal tax rates for all 
returns and returns under each of the three tax rate 
schedules. 

Table 22 presents a distribution of sources of income 
and itemized deductions on returns classified by marginal 
tax rates. Tables 23-26 show a cross-classification of 
returns with taxable income by size of adjusted gross 
income and by marginal tax rates. With these latter 
tables it is possible to see the dispersion of marginal 
rates among returns in the same income class. 

The explanations which follow use the illustrations 
appearing on the following page to show how the tax 
return data presented in tables 21 through 26 are derived 
from information available in the return. 



Tax base for returns with normal tax and surtax only 
is taxable income. For returns with alternative tax com- 
putation, the tax base is either (1) taxable income, where 
that amount is greater than one-half the excess long- 
term capital gain, or (2) one-half the excess long- 
term capital gain, where that amount is equal to or 
greater than taxable income. 

Tax rate is the rate at which all or a portion of an 
individual's tax base is taxed. Some of the tax rates 
are described below: 

a. Returns with special tax computation --These 
are returns to which two sets of rates applied because 
they were returns with income averaging, noncalendar 
year returns, or prior-year delinquent returns whether 
or not they had any tax base. 

b. percent (returns with no tax base) --This is the 
rate applicable to returns that show deductions plus ex- 
emptions equal to or exceeding adjusted gross income 
and returns with no adjusted gross income. 

c. 50 percent (alternative tax computation returns 
with capital gains tax only) --This is the rate applicable 
to returns which show the amount of one-half the excess 
long-term capital gain equal to or greater than the 
taxable income. The one -half excess, therefore, is the 
tax base instead of taxable income. 

d. 50 percent (alternative tax computation returns 
with capital gains tax and normal tax and surtax) --This 
is the rate applicable to returns where a portion of 
the tax base is taxed at the capital gains rate (50 per- 
cent), and a portion at normal tax and surtax rates. 

Marginal rate is the maximum rate applied to any 
part of the tax base. For example, a joint return with 
$11,000 of tax base (for normal tax and surtax rates) 
has a marginal tax rate of 23.5 percent (see example 
1). Returns with a tax base subject to both the capital 
gains rate and the normal tax and surtax rates were 
classified in their marginal surtax rate classes. 

Total tax base (column 3) is the entire tax base of each 
return classified by the marginal tax rate of the return. 

Total income tax before credits (column 4) is the 
reported tax before credits of each return classified 
by the marginal tax rate of the return. 

Tax base taxed at marginal rate (column 5) is that 
portion of the tax base that is taxed only at the marginal 
tax rate. For example, a joint return with $11,000 of 
tax base (for normal tax and surtax rates) would have 
$3,000 taxed at a marginal rate of 23.5 percent. The 
remaining tax base was taxed at lower rates. 

Tax generated at marginal rate (column 6) is that 
portion of the tax liability of each return that is taxed 
at the maximum rate. It is obtained by applying the 
tax rate in the stub to the amount in column 5. 

Tax base taxed at tax rate (column 11) is the tax 
base spread among the applicable tax rates. For ex- 
ample, a joint return with $11,000 tax base (for normal 
tax and surtax rates) would have $1,000 taxed at 16 
percent, $1,000 taxed at 16.5 percent, $1,000 taxed at 
17.5 percent, $1,000 taxed at 18 percent, $4,000 taxed 
at 20 percent, and $3,000 taxed at 23.5 percent. 

Tax generated at tax rate (column 12) is the total tax 
generated at each tax rate and is obtained by applying 
the tax rate in the stub to the tax base amount in column 
U. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

ILLUSTRATIONS OF THE PRESENTATION OF TAX RETURN DATA CLASSIFIED BY RATE, AS SHOWN IN TABLE 21 



Example 2 



Derivation of Tax Bas 



$16,000 
-3,800 


Adjusted gross In 


$12,200 
-1.200 


Balance 
Exemptions 


$".000 


Tax iMse (taxable 


Derivation of Tax: 



Derivation of Tax Base: 



$45 , 000 - Tentative t 



Total I 



$40,000- Tax b. 


ise for norm 


$45,000 - Total 


tax base (tax. 


Derivation of Tax: 




1st $1,000 of tax base taxed a 


2nd $1,000 of ta 


K base taxed 


3rd $1,000 of ta 


K base taxed 


4th $1,000 of ta 


base taxed a 


Next $4,000 of ta 


base taxed a 


Next $4,000 of ta 


base taxed a 


Next $4 , 000 of ta 


base taxed a 


Next $4,000 of ta 


base taxed a 


Next $4,000 of ta 


base taxed a 


Next $4,000 of u 


base taxed a 


Next $4,000 of ta; 


base taxed a 


Next $4,000 of ta 


base taxed a 


Bal. $4,000 of ta 


base taxed a 


$40, 000 Normal tax and 


Derivation of Capital Gain Tax: 


$5,000 of ta 


base taxed a 



Adjusted gross income (including 1/2 exi 
net long-term capital gain of $245,000) 
Itemized deductions 



: capital gains u 



000 - Tentative t 



: 30.5% . 
: 34.0% . 
; 37.5% . 
; 41.0% . 



$800 

$940 

$1,080 

$1,220 

$1,360 

$1,640 
$1,780 
$1,900 



Derivation of Tax: 



Derivation of Capital C 



$122,500 
$122,500 









' 


at tax rate 




"TZ^' 


Adjusted 
gross 

ftolfr.; 


Total tax 


Total 

(CblLr.) 


Tax base 

rate 


Tax 

generated 










Tax base 
taxed at 

(ihi:.,., 


Tax 




(U 


(2) 


(3) 


M 


(5) 


(6) 








(10) 




(12) 



Example 1. — Data Reported on Joint Return Witti Normal Tax an() Surtax Only 



Example 2. -Data Reported on Joint Return With Capital Gains Tax and Normal Tax and Surtax 



Example 3. -Data Reported on Joint Return With Capital Gains Tax Only 



50.0 percent (alternative ■ 



3I}[ 



Summary of Data Reported on the Above Three Joint Returns 






I percent (alternative tax computation retu 
capital gains tax only ) 

50.0 percent (alternative tax computation retu 
capital gains tax and normal tax and surtax). 

^This total is not the sum of the following 

^This return is not included in the total be 

^This amount is not included in the total fo 
NOTE: Columns 7, 8, and 9 of table 21 are n 



250,000 
^50,000 



the above example 



than one rst^ 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



19. —RETURNS WITH NORMAL TAX AND SURTAX ONLY: 



EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS 



Itemized deductions 



Standard dedui 



1,000 under $50,000. 



Returns under $5,000.. 
Returns $5,000 under i 
Returns $10,000 or mo] 



368,129,108 



25,206,960 



031,830 
651,«6 
202, 157 
799,233 
78i,971 
517, 105 



60,658,726 
162,435,438 
145,034,944 



5,196,664 
2,877,727 
7,132,569 



876,609 
251,106 
040,825 



,205,415 


4 


,159,934 




,488,761 


10 


,693,127 


16 


,626,472 


17 


,478,068 


17 






1,016,934 


11 




24 


248,886 


5 


110,488 




3,158 





221,471,891 



9,332 
1,767,518 
.,814,0 
,954,823 



Adjusted gross 



Retirement income 



Foreign taxes paid 



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



3,389 

4,771 
2,281 



3,525,596 
3,401,658 
3,154,118 



Returns under $5,000. 
Returns $5,000 under : 
Returns $10,000 or mo; 



NOTE: Detai. 



"Description of the Sanple and Limitations of the 



"Explanation of Classif icatioi 



1,039 
3,173 
27,294 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 20. —RETURNS WITH ALTERNATIVE TAX COMPUTATION: ADJUSTED GROSS INCOME, DEDUCTIONS, 

ADJUSTED GROSS INCOME CLASSES 

[iMable 



TAXABLE INCOME, 





Number of 




1 


Itemized deductions 


3t..d„d deduction 


Exemptions 


Taxable income 


Aaouste. gross income cla^ses 


Adjusted 


Number of 


Amount 




Amount 


Number of 


Amount 


Total 


(balLice 
for parital 


(one-half 
excess long- 
term gain) 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 




99,679 


10,168,024 


95,412 


1,564,109 






327,515 


196,509 


8,403,188 


5,682,282 










24,285 
414 


670,142 

4,142,239 
621,284 
814.776 


14,988 

23,946 
938 
413 


73,610 
511,039 

716,211 
112,326 
150,923 


2,646 
1,280 

1 


2,617 
1,280 


34,840 
201,388 

86,702 
3,206 
1,379 


20,904 
120,333 

l',924 

827 


573,013 
3,236,335 

3,373,728 
507,037 
663,025 


507,060 

2,066,258 
162,119 
149,161 






62,135 




461, 658 








345,814 




515,725 








Tax base 
computation 


Income tax 
before credits 


Tax credits 


Income tax 
after credits 






Retirement inoom 


Investment 


Foreign taxes 
paid 


Other 


tnco^^ 


Adjusted gross income classes 


Amount 
fn«„.w 


of tax 
base 


Number of 


n»»-.- 


r?^f 


Amount 


Number of 


r™ 


^rt-^ 


Amount 


Number of 


Amount 


after 
credits 




(12) 


(13) 


(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 




8,367,309 


3,856,553 


46.1 


14,372 


2,368 


29,448 


13,805 


16,514 


16,112 


91,424 


50,545 


99,671 


3,773,721 


37,362 






Under t20 000 


3,259^342 

3,365,903 

664J886 


214,429 
1,314,633 

1,684,340 
278, 6« 


4o:i 

50.0 


4,279 
6,281 

3,608 
132 


706 
1,021 

605 
22 


3,412 
17,174 

8,284 
388 
190 


801 
6,095 

5,705 
539 
665 


2,152 
7,811 

6,097 
310 


3,495 

1^909 

939 


16,116 
51,221 

'905 
404 


4,158 
16,487 

3^327 
4,091 


17,630 
56,407 

24,281 

939 


207,863 
1,287,536 

1, 646, 675 
272,809 
358,838 










22,826 








290,531 




866,758 



























Limitations of ' 



Data" and "Explaj 



70 INDIVIDUAL INCOME TAX RETURNS FOR 1964 

Table 21. —INCOME TAX GENERATED AT EACH TAX RATE FOR ALL RETURNS AND RETURNS UNDER EACH OF THE THREE TAX RATE SCHEDULES 









Ret 


ims with tay 


rate 3S ma 










Setums wi 


h any tax ,;■; 






Number of 


E 


Total tax 


Total 
income tax 

credits 
doll.r.) 


Tax base 
marginal 


generated 
at marginal 

dol/.r.J 


J, „^ ,,^ ,,.„p rejit- 




Tax rate 


,L„„. 


p" 


.nt of- 


Number of 




lax gener- 




in^tme 


tax^lse 


rn«.w«i 




(1) 


'2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


1,12) 


Total 


65,375,601 


396,659,831 


229,885,075 


47,896,997 


49,527,464 


11,489,774 


47,152,855 


11.9 


20.5 


65,375,601 




- 


Returns with special tax computa- 
tion" . . . 


13,267,346 

6,752,30-; 

6,112,669 

6,399,201 

6,166,934 

564,475 

16,365,952 

273,314 

101,264 

5,432,874 

1,623,943 

15,595 

563,450 

9,260 

286,543 

172,077 

107^471 
1,790 
1,105 
76,881 
1,373 
53^046 

52S 

"92,667 
47,920 

56,350 

42,500 
21,699 

115 

6,613 
6,610 

* 14 
2,134 

1,127 
30 

15 
2,374 


18,164,194 

18,473,433 
23,614,338 
31,321,242 
36,252,684 
2,959,816 
125,552,245 

* 963*, 273 

57,754,844 

22,641,239 

225,941 

10,616,429 

154,103 

3, 584^217 
52,880 

43,382 
' 35,* 190 

284,685 

=9, 202, 123 

2,291,665 

38,390 

3, 075^785 
13,686 
2,751,441 
1,728,336 
7,931 
1,170,759 

703^933 
6^582 

l',839 
7,905 

9^366 

218,635 

6,677 

709^925 
626,666 


7,148,200 

222,736,875 
2,596,861 
7,569,843 
13,531,119 

l|674;778 

79,223,286 

1,323,928 

697,486 

41,968,356 

17,292,669 

171,738 

8,265,342 

121,547 

5,347,629 

3,902,275 

2,S90|995 
42,148 
26,613 

35,702 

30,866 

2,043,405 

28,715 

=7,562,876 

1,886,056 

32,050 

15, 544 

15,469 

2,296,065 

1,434,239 

6,249 

978,386 

579^496 
5^289 

6^434 
293,753 

176,679 
5,163 

5471082 
449,407 


2,036,322 

45,860,677 
421,370 
1,226,624 
2,232,533 
3,164,921 

14,139,230 

138^124 
8,135,178 
3,648,821 

38,507 
1,902,873 

29,044 

i; 0481 793 
" ^^ 

727,605 
11,353 
10,124 

665,694 
10,028 

127,396 

53, 453,919 
646,541 
11,743 

5,837 
925,427 

5,952 
912,310 
613,227 

2,680 
442,694 

273^416 
2,950 

2^675 
207,115 

3,383 
153,074 

4,264 
98,219 

3,018 
82,490 

3361185 
309,268 


49,527,464 
2,579,136 
2,549,172 
2,798,744 
2,683,375 
543,404 

23,495,479 

33; 303 
6,939,665 
2,064,065 

14,322 

313,260 
8,363 

274*825 
2,386 
li783 

1,251 

902 

99,226 

254, 76o 

' 76^651 

1,571 

390 

417 

'l28 
56,124 

29,610 

210 

47,641 

24,073 

309 
15,256 

8,271 
272 

6,033 

110,307 
192,668 


412,662 
420,613 
489,780 
483,003 
103,247 

4,699,096 
50,515 
20,311 

1,630,321 
557,293 

248|044 

2,676 

147,462 

931 

73,006 

758 

566 

56,370 

424 
47,132 

1,153,600 

'309 
207 

225 

34,236 

18,802 

137 

31,443 

16,493 

10,332 
338 

4,566 
148 1 354 


45,167,729 

394,052 

1,175,281 

2,177,499 

3,115,444 

290,049 

14,059,737 

244,815 

136,399 

3,062,291 

3,602,530 

1,367^652 

28,368 

1,307,339 

1,027,890 

12,815 

8i043 
714,457 

9^911 
652,486 

126,054 

=3,377,235 

11^462 
5,684 
906,470 
5,842 
395,332 
600,210 

433^508 

4,230 
267,244 

2,881 
327,156 

2,589 

201,649 

660 

3,283 

4^171 
95,261 

325,664 
299,175 


20.7 


20.3 
15.2 

1611 
16.6 
17.3 

23!3 
24.5 
26.3 
27.7 
28.2 

30! 2 
30.2 
31.2 

32.1 
31.9 
34.1 


13,267,346 
351, 343, 708 
51,348,177 

38;483;i54 
31,066,456 
1,017,533 

24, 399, 379 

1,460*, 448 

29,142 

916,877 

630,435 

12,282 

446,009 

9,973 

8,179 

338,545 

7,091 

5,722 

261,643 

;23 

92,667 
203,603 

21336 
155,703 

IO0I9I5 
58,431 
1,258 

17,196 
351 

*296 

232 

7,233 

4,944 
2,993 


40,218,906 

33,860,442 

29,919,811 

23,432,036 

1,449,505 

50,829,516 

589,091 

245,156 

16,803,110 

7,054,542 

72,593 

3,874,417 

43,116 

2,575,600 

1,832,766 

22,322 

1,340,166 

18,140 

15,441 

1,023,497 

12,679 

10,131 

793,963 

16,498 

254,766 

2,307,200 
604,156 
12,919 

5,256 
837,235 

4,574 
761,543 
452,386 

2,413 
235,482 

2,343 
191,975 

2,655 
209,242 

2,576 

*579 
2,521 

51,791 

193,207 
192,668 




percent (returns with no tax 






2 

9 
12 
16 

18 
19 

21 
22 

24 

26 
26 


8 



8 
7 

1 
2 


45,388,030 
6,434,696 
5,586,973 
5,235,967 


13 percent 


4,217,775 




10,165,903 




129,600 


23 percent 


56,386 


''^'"=="' 










15,397 




375,704 


37 ^percent 




41 percent 


8,706 
549,468 




6,717 


44.5 percent 


455,456 
5,769 






'8 5 percent 




50 percent (alternative tax 
gaiS tax°Mly)"!^°.!^..?!^^!'. 

gains tax and normal tax and 




127,383 




29 

32 
34 

37 
37 

39 
39 

35 

43 

43 
40 
45 


2 
1 
3 
9 

8 
9 


33 

36 

35 

39 
42 

48 
49 

50 
53 
59 






51.5 percent 


6,653 


"Per-nt 


2,470 
426,467 






61 percent.. '.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. 


1,436 

174,144 

1,763 


63.5 percent 


121,904 




138,100 


67 percent 






90,031 


69 pe?^ent" 




69.5 percent 


1,752 
66,217 




1,334 


73 5 ^ rcent 






1,282 




38,843 












148,354 










Footnotes at end of table. See t 


xt for "Desc 


ription of th 


e Sample and 


Limitations 


of the Data 


and "Explar 


ation of CI 


ssifi. 


ati 


ns and 


Te 


-ms." 







INDIVIDUAL INCOME TAX RETURNS FOR 1964 

Table 21.— INCOME TAX GENERATED AT EACH TAX RATE FOR ALL RETURNS AND RETURNS UNDER EACH OF THE THREE TAX RATE SCHEDULES— Cont 



Total 



aTter credit 



Total 

Returns with special tajc computation^ 



17.5 percent. 

18 percent 

19 percent. . . 



22 percent 

23.5 percent 

27 percent 

30. 5 percent 

37. 5 percent 

39 percent 

<V3. 5 percent 

44. 5 percent 

45.5 percent 

47.5 percent 

43. 5 percent 

50 percent (alternative tax com 
putation returns with capital 
gains tax only) 

50 percent (alternative tax com 
putation returns with capital 
gains tax and normal tax and 

50.5 percent 

53 percent 

56 percent 

58.5 percent 

59.5 percent 

61 percent 






104,903,397 



179,174,' 
6,250,; 



15,927,770 
64,964,031 



6,423,660 

4,296,267 
3,200,299 



37,294,914 
1,762,708 



534,965 
625,385 



157,497 
125,710 



1,721,191 
2,009,074 
2,213,329 
2,283,075 



2,582,194 
1,481,751 

1,072,769 
861,112 

700,693 



112,616 
71,197 



i6, 753,219 
1,716,605 



410, 954 
3,809,562 



195,423 
119,608 



5,712,255 
^32,769,305 
32,768,956 



990,214 
633,592 



172,924,114 
31,078,385 
27,471,f-' 
23,353,; 



c«3,274 

604,272 
345,225 



i of table. See ■ 



for "Description of 



Data" and "Expla 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

Table21.— INCOME TAX GENERATED AT EACH TAX RATE FOR ALL RETURNS AND RETURNS UNDER EACH OF THE THREE TAX RATE SCHEDULES— Continued 



Returns with 
percent (r 



.5 percent. , 









47.5 percent 

48.5 percent 

50 percent (alternative tax com 
putation returns with capital 
gains tax only) 

50 percent (alternative tax com 
putation returns with capital 
gains tax and normal tax and 

50.5 percent 

51.5 percent 

53 percent 

53.5 percent 

56 percent 

58.5 percent 

59 . 5 percent 

61 percent 



percent 



3,104,844 
2,220,405 
1,770,109 
1,624,227 

4,902,675 
2,230,139 



20,648,i 
14,239,. 



Total 



,220,135 
119,137 
266,738 



540,097 
427,975 
400, 300 



for "Descriptlo 



2,412 
1,877 



Data" and "Explanation of Ciassi 



140,918 
146,621 



153,961 
150,060 



27,733 
21,553 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table21.— INCOME TAX GENERATED AT EACH 



RATE FOR ALL RETURNS AND RETURNS UNDER EACH OF THE THREE TAX RATE SCHEDULES— Co 



. any tax generated j 



27 percent. 



30.5 percent. 
32 percent... 

37.5 percent. 
39 percent. . , 

43.5 percent- 
45.5 percent. 



50 percent (alternative tax com 
putation returns with capital 
gains tax only) 



65 percent. . 
56 percent. . 



69.5 percent. 

71 percent. . . 

73.5 percent. 

75 percent... 
75.5 percent. 
76.5 percent. 



40 



1,167,067 

2,959,316 



154,103 
85,309 
73,403. 



21,135 



464,523 
.,674,778 



46,184 
42,148 



=182,233 


5149,402 


19;2«2 


is', 544 


18,686 
24,030 
26,452 
7,931 
25,839 


15,469 
19,482 
21,487 
6,249 
20,887 


11,510 
16,351 
7,362 
6,631 


9,599 
13,748 
6,116 
5,253 



5,163 
3,179 
3,272 

16,964 



76,948 
293,148 



13,143 
13,038 



157,440 
543,404 



8,077 
4,153 



See text for "Description of the Sample and Lijnitations of the Data" and "Explanation of Classifications i 

^Includes returns with income averaging, fiscal year returns, and prior-y. 

^Includes any calendar year and part year returns. 

^This total is not the sum of the following tax rate classes because many returns have a tax base taxed at mor 

*These returns are not included in the total because they already appear in the class which is their marginal 

'Tliis amount is not included in the total for the reason stated in footnote. 4. 

NOTE: Detail may not add to total because of rounding. A dash {-) in this table means "Not applicable," 

245-158 O - 67 - 6 



1,175,013 
1,449,505 



2,529 
1,732 



1,763 
2,166 
1,726 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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Nontaxable returns 



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INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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SECTION 4 



Returns with Age Exemptions; Retirement 
Income Credit 



TABLE CONTENTS 

Text Tables 

Q. All returns, returns with standard deduction, and returns witli itemized 

deductions: Percent distribution for all returns and returns with at least 

one taxpa,ver age 65 or over by selected adjusted gross income classes 

and by tax status. 87 
R. Selected sources of income for all returns and returns with at least one 

taxpayer age 65 or over, 88 



able Q.— ALL RETURNS, RETURNS WITH STANDARD DEDUCTION, AND RETURNS 
WITH ITEMIZED DEDUCTIONS: PERCENT DISTRIBUTION FOR ALL RETURNS 
AND RETURNS WITH AT LEAST ONE TAXPAYER AGE 65 OR OVER BY SELECTED 
ADJUSTED GROSS INCOME CLASSES AND BY TAX STATUS 



least one taxpayer age 65 



with 



over - Sources of income 
items, hy adjusted gross 



items. 



Basic Tables 

27. Returns ' 
and loss, exemptions, 
income classes. 89 

28. Standard deduction reti 
Adjusted gross income 
adjusted gross income classes, 92 

29. Itemized deduction returns with at least one taxpayer age 65 or over ■ 
Adjusted gross income, itemized deductions, exemptions, taxable in 
come, and tax items, by adjusted gross income classes. 93 

30. Retirement income credit - Number of returns, base of tentative credit 
tentative credit and credit: All returns, returns of taxpa.vers using tht 
general rule and returns of taxpayers using tlic alternative method, bi 
adjusted gross income classes. 94 



HALF OF RETURNS OF OLDER TAXPAYERS WERE 

NONTAXABLE--HALF REPORTED NO WAGES 

OR SALARIES 

Table 27 shows that nearly half of the 5.9 million 
returns of older taxpayers were nontaxable and that more 
than half showed no income from salaries and wages. 
This table, along with tables 28 and 29, shows character- 
istics of returns on which age exemptions were claimed 
because a taxpayer or his spouse was age 65 or over at 
the end of the tax year. Comparisons of these tabulations 
with similar results for all returns show markedly differ- 
ent income patterns and reflect the special provisions of 
Federal income tax law applicable to persons age 65 and 
over. 

About one-fifth of all returns filed in 1964 were non- 
taxable. As noted above, nearly one-half of the returns 
of older taxpayers reported no tax liability, A higher 
proportion of returns in the lower income brackets 
partly accounted for the higher proportion of nontaxable 
returns among older taxpayers, as shown in table Q. 
Half of all returns with age exemptions were in the "less 
than $3,000" adjusted gross income bracket, while some- 
what less than a third of all individual returns fell in this 
income class. 

Age exemptions and the new minimum standard deduc- 
tion enacted in 1964 also contributed to the higher pro- 
portion of nontaxable returns. In addition to the $600 
personal exemption allowed for each taxpayer and de- 
pendent, taxpayers age 65 or over were each eligible for 





All retu^s 


Return 


deduction 


itemized deductions 


Adjusted grosB income 
classes 


10.1 


ES 


Total 


payer a^e 


Total 


At least 
pajer age 




(1) 


(2) 


(3) 


M 


(5) 


(6) 






100.0 


100.0 


100.0 


100.0 


100.0 








U.S 
15.8 


7.2 
14.1 


20.3 
27.3 

17.7 
3.0 


6l!6 


3.9 












$3,000 under $5,000: 


17.5 






$5,000 or iBore; 













an additional $600 exemption. For instance, a married 
couple filing a joint return were entitled to four exemp- 
tions worth $2,400 if both were over 65. The minimum 
standard deduction available to them guaranteed that at 
least $600 more was deductible. The minimum standard 
deduction was more liberal for older taxpayers than for 
taxpayers generally because age exemptions were used in 
its computation. 

Table 28 shows that a standard deduction was claimed 
on 3 million returns of older taxpayers. More than three- 
fifths of these standard deduction returns were nontaxable, 
and a still larger proportion was in the less than $3,000 
income bracket. These taxpayers deducted the higher of 
the minimum standard deduction or 10 percent of their 
adjusted gross income (maximum $1,000). 

Itemized deductions were reported on 46 percent of the 
returns of older taxpayers, a somewhat higher proportion 
than that for all returns (41 percent). This higher propor- 
tion is, in part, due to higher expenses for medical care 
among older taxpayers as well as the more liberal rules 
for deducting such expenses applicable to persons age 65 
or over. Deductible medical expenses averaged $700 per 
return compared to an average of $264 for all itemized 
returns. 

Itemized deductions averaged $2,044 on returns of older 
taxpayers, compared to $1,740 for all itemized returns. 
Older taxpayer averaged markedly higher deductions for 
contributions and markedly lower deductions for interest 
paid (table 29). 

INVESTMENT INCOME IMPORTANT TO AGED 

Nearly two-thirds of the income of older taxpayers was 
from sources other than salaries and wages and (as noted 
above) a majority of returns claiming age exemptions 
reported no salary and wage income. 

87 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Adjusted gross income less 


Salaries and wages (gross) 

Business or profession net 

profit and net loss 

Farm net profit and net loss 

Partnership net profit and net 


Sales of 


oapitalassetsnetgainl 


Dividends in adjusted gross 






Rents ne 
Hoyaltie 


t income and net loss... 
s net income and net 


All othe 


r sources, income a^d 


Adiustments' 



n, moving expense deduction, employee business expense 



and self-employed pensi( 



Although this particular group of returns had only 8.2 
percent of total adjusted gross income for all returns, 
they showed large shares of the following kinds of in- 
come: pensions and annuities (76.8 percent), net rents 
(60.9 percent), dividends (47.9 percent), and interest 
(40,5 percent). 

The retirement income credit, a partial offset against 
taxes derived from these income sources, was claimed 
on 1.3 million returns with age exemptions in the amount 
of $160 million. These returns constituted 90 percent of 
all returns claiming the credit. Returns with age ex- 
emptions also accounted for 42.7 percent of royalty net 
income and net loss. The retirement income credit was 
not applicable to income from this source. Table R 
shows patterns of income for all returns and returns 
with at least one taxpayer over 65 as well as the pro- 
portions of the various sources of income reported on 
these returns. 



NEW INFORMATION FROM RETIREMENT INCOME 
CREDIT SCHEDULE 

For 1964, the retirement income credit was reported 
on over 1.4 million returns and amounted to a reduction 
in tax before credits of $184 million, as shown in table 
30. This was $28 million less than the amount claimed in 
1963. 



A credit for retirement income (in the current year) was 
allowed an individual taxpayer if he had earned income of 
more than $600 in each of any 10 years prior to the cur- 
rent year. Retirement income for taxpayers age 65 or 
over could consist of pensions and annuities, dividends, 
interest, and gross rental income. If the taxpayer was 
under 65 years of age, only taxable amounts of pensions 
or annuities received under a public retirement system 
qualified as retirement income. 

The credit was 17 percent (decreased from 20 percent 
by the Revenue Act of 1964) of the lesser of (1) retirement 
income received during the year, or (2) $1,524 reduced 
by amounts of certain tax-exempt pensions and annuities, 
notably retirement benefits under the Federal Social Se- 
curity program. The $1,524 maximum base for the credit 
was also reduced by amountsof earned income, the extent 
of the reduction depending on the size of the earned income 
and the age of the taxpayer. (See the reproduction of the 
retirement income credit schedule in section 10 at the end 
of this report.) 

A special rule, effected by the Revenue Act of 1964, 
states that if husband and wife filed jointly and both were 
age 65 or over, they could elect an alternative computation 
which provided a $2,286 joint maximum base for the 
credit. These taxpayers could choose whichever method 
afforded them the larger credit, the separate computa- 
tions under the general rule or the joint computation under 
the special rule. 

Of the more than 1.4 million returns with this credit, 
97 percent had a supporting schedule B outlining the 
credit computation. These returns were divided between 
the 1.3 million having the regular computation (labeled 
as "general rule" in the table) and the 0.1 million having 
the alternative method computation. The average credit 
for the latter group ($131) was slightly greater than that 
for the former group ($128). 

Almost 225 thousand of the 1.3 million returns with the 
"general rule" computation were filed by taxpayers also 
eligible for the alternative method (i.e., husband and wife 
filed jointly and both were age 65 or over). Presumably 
most of these taxpayers choose the ' 'general rule" method 
because it afforded a larger credit (the average for the 
225 thousand returns being $167). This would occur, for 
instance, where both spouses had retirement income so 
that the sum of their separate bases for the credit 
exceeded the maximum base ($2,286) under the alter- 
native method. 

The tentative credit under both methods (excluding 
returns with no schedule B) totalled $217 million. Since 
the retirement income credit could not exceed the income 
tax reduced by certain other credits, the actual credit 
taken was $38.6 million lower tiian the tentative credit. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



EXEMPTIONS, TAXABLE INCOME, AND TAX ITEMS, BY 





-r 








n 


Salaries 


"3^ 


^ 


Business or profession 


Farm 




Number 
exemptions 


rZT. 


(gross) 


Net profit 


Net loss 


Net profit 


Net loss 




Number 


j^™'_ 


of^'' 


Amount 

do/l.r>) 


Number 


f^Zl'd 


Nuiter 
returns 


Amount 

(Tho^.md 


Number 


Amount 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(12) 


(13) 


Grand total 




17,625,452 


'32,356,101 


2,745,206 


11,541,135 


611,002 


2,018,135 


91,102 


208,197 


362,943 


617,151 


163,506 


298,495 


Taiable returns, total 


2,9§9,849 


8,773,031 


27,310,187 


1,774,541 


10,360,424 


320,163 


1,719,679 


33,444 


80,401 


123,075 


436,949 


50,643 


129,139 




1 99,152 

428;408 
407,273 
338,330 
280,299 
208,565 
163,034 
116,433 
297,607 
115,353 
161,299 
33,643 
11,424 
388 
202 


198,305 

1,180)052 

1,193,201 

1,025,996 

882,330 

636,048 

519,(>;0 

957,843 
373,309 
533,080 

39^432 

1,318 

651 


176,362 

832,816 

1,512,783 

1,829,323 

1,863,474 

1)560) 152 
1,380,158 
1,101,827 
3,568,371 
1,983,947 
4,802,288 
2,259,262 
1,945,461 
257,201 
416,152 


41,996 
176,001 
239,437 
250,867 

us, 612 

100,764 

73,323 

178,323 

59,123 

77,533 

18,246 

6,055 

197 

115 


347)350 
673,786 
942,935 
1,001,562 
1,053,185 
858,601 

549)281 

1,585,089 

638,374 

1,170,360 

509,874 

260,230 

11,386 

6,371 


22)616 
37,153 
39,228 
34,473 
31,822 
22,940 
17,458 
13,807 
39,607 
19,071 
29,798 

t^ 
28 
11 


7,308 
37,819 
77,315 
98,768 
ltK,623 
106,665 
96,872 

68)943 

173)490 
442,221 
132,579 
48,685 

2)831 


1 1,411 
4,767 

2,722 
2,213 

2)218 

1,315 

5,742 

2,407 

3,882 

1,049 

570 

32 

25 


625 
2,430 

2,058 
2,581 
1,696 
2,695 
1,160 

11,485 
4,618 

16,890 
7,291 

5)738 


i 4,63; 

11 
14,017 
10,098 
6,448 
5,649 
5,495 
11,795 
4,225 
6,087 
1,072 


5,28^ 

SI 

42,571 
33,851 
21,396 
21,956 
26,197 
57,666 
31,197 
68,734 
17,984 
6,418 

375 


j ..33; 
6,855 
6,K8 
4,931 
5,036 
3,024 
2,319 
1,915 

2)193 
4,765 
1,415 

29 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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


4,888 

10)220 
4,700 

3)035 
5,751 
11,201 
5,916 
33,062 
14,112 
16,600 
1,877 
1,400 




Nontaxable returns, total 


2,925,324 


8,852,421 


4,045,91A 


970,665 


1,180,711 


290,839 


298,506 


57,658 


127,796 


239,368 


180,202 


112,863 


169,356 


No adjusted gross Income... 


97,059 
282,666 

1,1671541 
638,227 

87|674 
53,410 


294,508 
802,203 

3,316)531 

2,096,685 

824,405 

326,984 

198,223 


'221,061 

99,689 

298, U8 

1,703,220 

1,553,948 

791,305 

386,257 

434,438 


9,250 
85,961 
120,509 

224)861 
72,946 


29,734 
83,635 
456,597 
365,499 
152,962 
48,940 


38,946 
47,275 
111,367 
56,427 
20,587 


U,446 
28,566 
102,408 

36)810 
16,546 
17,389 


23,768 
6,667 
4,790 

10,187 
5,439 
3,524 

2,073 


3,730 
4,651 
7,830 

2)792 
1,476 
10, 3 U 


53,856 
46,737 

37)866 
9,602 
2,823 
1,990 


665 
17,069 
25,415 

43)433 
14,335 
5,310 
6,805 


43,021 
19,624 
10,955 
21,117 
10,682 
3,931 
2,218 
1,315 


104,642 
13,918 




9,243 


$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


15,415 
9,461 
3,693 
3,922 






Returns under $5,000 

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


4,135,186 

1,155,054 

624,932 


11,963,863 
2) 039)409 


'3,962,758 
8,022,891 
15,370,4*9 


1,669,(X5 
735,633 

340,477 


3,171,170 
4,178,443 
4,191,520 


391,221 
124,851 
94,929 


501,327 

465,661 

1,050,695 


65,342 
12,000 
13,760 


127,893 
14,422 
65,880 


295,730 
43,537 
23,677 


279,422 
151,734 
185,994 


130,386 
18,234 
14,388 


181,017 
27,157 
90,319 




Partnership 


Sales of capital assets 


Ordinary gain frcm 

sales of 

depreciable property 


Sales of property other than 




Net profit 




Net gain 


Net loss 


Net gain 


Net loss 


Adjusted gross income classes 


Number 


Amount 
doll.,.) 


Number 
of 


AiDount 


Number 

of 
returns 


Amount 


of 
returns 


Amount 
d.ll.,.> 


of 
returns 


rTVu.nd 


of 


^Amount ^ 


Number 
of 


Amount 

(Thdu.md 




(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 




203,915 


1,205,882 


44,301 


118,582 


1,271,564 


2,798,975 


189,290 


128,645 


26,283 


17,016 


15,752 


14,555 


14,574 


32,697 




Taxable returns, total 


1*7,008 


1,1/12,541 


24,256 


67,369 


327,718 


2,520,883 


120,247 


81,596 


16,128 


11,873 


7,936 


10,415 


8,354 


14,147 




2,230 

12,461 
8,043 
7,628 

5^985 

28^278 
7,763 
2,736 


3,084 
9,860 

2j)637 
29,359 
26,139 

33)006 
22,544 
124,622 
97,254 
365,154 
198,956 
U6,488 
9,406 
6,980 


1 ;:" 

1,407 
1,604 

! IZ 
2)706 

5,129 

1,689 

974 


458 
1,019 

1,246 
2,681 

776 

13)424 
10,151 
15,257 

3)427 


U,121 

I 78,209 
83,845 
69,255 
51,651 
1 50,428 
( 42,050 
1U,310 

96)353 
23,430 
9,204 

177 


4,956 
29,816 
56,257 
64,924 
78,490 
65,445 

76) 121 
66,318 

519)427 
300,074 
462,592 

213)374 


j 6,122 
8,361 
10,117 
7,771 

10) 163 
7,132 
3,234 
22,201 
10,656 

1,289 


3,008 
6)632 

l)861 
15,030 

7,526 
15,871 

3,996 

1,103 


1 1,'5U 
2,012 

1 a,2. 

1,411 
j 1,810 

2,865 

1,223 

1,734 

545 

24 
22 


637 

619 

1,481 

2,276 

2,071 
1,700 

261 
60 


2,205 

1,025 

1,421 
558 
793 

2 


1,790 
899 

1,660 

1,730 

810 

2,596 

372 
17 
10 


l|i.3o; 

1,311 

1,422 
918 
1,994 
548 
320 
14 
20 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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


412 

1,664 
1,214 
5,695 
1,597 
2,163 
101 
195 




Nontaxable returns, total.... 


56,907 


63,341 


20,045 


51,213 


443, a46 


273,092 


69 


013 


47,019 


10,155 


5,143 


7,816 


4,140 


6,220 


18,550 


No adjusted gross Income... 


1,032 
4,040 
7,161 
19,467 

6^023 
2,805 
3,U3 


1,636 
4,893 
18,080 

10)153 
3,859 


7,000 
2,810 
2,003 
4,708 

1 3,012 
512 


2,631 
2,680 
3)976 

2,353 

6,630 


25,718 

38,940 

U8,5U 

I 108,627 

\ 56,676 

( 26,931 


17,108 
8,987 
12,829 
59,298 
62,720 
33,662 
23,591 
59,897 


10 
3 

3 


324 
805 
315 
232 
609 
804 
493 


8,513 
4,262 
2,537 

3)690 
2,418 


j 1,029 

} 2,310 
' 469 


1,155 
583 

1,102 
893 


(') 

2,121 

1,210 

1,420 

256 


(=) 
734 
531 


3,203 
1,203 


16,766 




646 


$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

i4,000 under $5,000 


1,138 






Returns under $5 000 


81,977 
46,188 
75,751 


107,753 
1A7,873 
950,253 


oz n^i 


it rv.n 


inn 


374 147 


62 


i 


60,115 
24,069 
44,459 


13,609 
5,834 
6,840 


^,,„ 


10,789 
1,911 
3,053 


6,262 
2,009 
6,232 


7,433 


1)253 

13,006 


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




5,993 




5,453 
67,068 


3 


14)526 


338 
2,035 


840 
937 


7 


830 



Sample and Llmiti 



and "Explanation of Classifications and Ten 



245-158 O - 67 ■ 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Table 27. —RETURNS 













Pensions and 


Rents 


Royalties 




gross Income 


Interest received 


(tax^^^?tlon) 


Net Income 


Net loss 


Net Income 


Net loss 


Adjusted gross income classes 


^ber 
returns 


Amount 


Number 


Amount 


3Ls 


Amount 


Number 
returns 


Amount 


NuBber 
returns 


Amount 


^r 


Amount 


Number 
returns 


Amount 




(28) 


(29) 


(301 


(31) 


(32) 


(33) 


(34) 


(35) 


(36) 


(37) 


(38) 


(39) 


(40) 


(41) 


Grand total 


1,751,010 


5,708,606 


4,295,915 


4,099,a;5 


1,317,919 


2,394,241 


1,323,293 


1,749,304 


255,765 


150,507 


145,252 


269,398 


5,300 


10,535 


Taxable returns, total 


1,136,008 




2,350,023 


2,870,647 


659,993 


1,440,128 


602,845 


1,154,699 


128,438 


75,325 


79,516 


210,129 


3,970 


8,679 




20,4W 
90,438 

117,885 

84^536 

73,174 
65,701 
51,285 

160,551 

134^816 

31,069 

10,993 

380 


69,677 
116,236 
131,687 
136,368 
129,731 
158,308 

104^532 
534,416 
422,915 
1,295,034 
766,553 
346,817 
122,028 
182,663 


2331339 
307,681 
293,701 
260,951 
215,650 
163,501 

267,331 

L50I722 

31,514 

10,623 

354 


40,424 
152,925 
238,303 
231,568 
222,423 
193,432 
160,440 
159,771 

400,737 
233;il5 
459,656 
154,620 
90,993 
6,071 


20,031 
68,614 
93,789 
99,227 
73,671 
59,191 
U,245 

28; 099 
65,400 

7',719 

2,677 

90 


21,837 
39,223 
172,090 
191,643 

1281409 
94,078 
79,180 

169,802 
79,744 

42I378 

787 


82 1664 

74,031 

53 1 243 
36,231 
36,915 

301031 

9I5I6 
3,092 


14,238 
50,500 
101,640 
80,094 
89,405 
71,392 
43,396 
69,351 

163,225 

96,700 

IS 
1,038 


15,954 
13,027 
16,480 
10,948 
10,769 
7,715 

16,105 

1,030 
32 


2,406 
6,414 

6,861 
2,999 
4,030 
7,237 
2,625 
10,826 

10I945 
5,034 
5,434 

313 


6,619 
8,131 
6,720 
6,018 
4,939 
4,212 

3I2I3 

6I331 
1^,861 
3,231 
1,576 

34 


2,661 
5,396 

3,903 
4,729 

151469 
3,369 

21I282 
57,031 

3 1892 
2,587 


2,815 
1 - 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 'under $100,000 

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


2,012 

685 
1,322 
3,142 

1,454 


Nontaxable returns, total.... 


615,002 


528,616 


1,945,892 


1,228,393 


657,926 


954,113 


720,448 


594,605 


127,327 


75,132 


65,736 


59,269 


1330 


1,856 


No adjusted gross Income... 


20,145 
43,435 
213,009 
167,772 
85,516 
39,071 


20,269 

4,036 
12,033 

1121625 
79,633 
55,925 

144,721 


43,929 
109,086 
195,089 

I91I5OO 
75,556 
45,798 


23,573 
25,729 
70,263 
403,933 

178^664 
81,461 


11,364 
35,245 

209,' 114 
99,445 
40,377 


4,723 
21,773 
235,259 
318,092 
203,476 
107,036 


13,216 
46,137 
94,103 
289,482 
176,363 
62,842 
24,252 
14,053 


13,625 
15,279 

50, U6 
210,013 

70I914 
33,922 
29,093 


18,913 
10,566 
19,334 

22I4OI 
6,409 
5,010 


31,467 
5,231 
7,995 

13,522 
7,378 
1,732 
2,712 
5,095 


3,701 
5,935 

22I212 

14,149 
4,620 


15,253 
2,298 
4,154 
12,666 
12,559 
3,064 

6I27O 


(') 
1,329 


(=) 






$1,000 under .$2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


1,856 






Returns under $5,000 

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


927,103 
424^559 


713,668 
4,243^367 


572^219 


1,806,705 
1, 370^002 


918,086 


1,369,188 
580,779 
444,275 


933,496 
232,429 
157,368 


811,983 
5981936 


164,516 
37I313 


83,436 
27,263 


84,845 
361291 


66,635 
I69I374 


1*319 
1I977 


1,127 
3,453 




Other 


Adjustments | 


Total 


Exemptions 
(Thm.imd 


Income 


Taxable Income 


Income tax 


Tax credits 




Number 

of 
returns 


C^L 


of 
returns 


T"'. 


Retirement Income 


Investment 


Adjusted gross income classes 


Number 
returns 




of 
returns 


Amount 




(42) 


(43) 


(^) 


(45) 


(46) 


(47) 


(48) 


(49) 


(50) 


(51) 


(52) 


(53) 


(54) 




1,007,006 


U0,530 


136,678 


7,273,992 


10,575,271 


2,534,317 


3,330,857 


17,335,505 


4,689,590 


1,300,102 


160,073 


120,902 








Taxable returns, total 


815,644 


U6,858 


107,102 


4,967,498 


5,263,820 




2,989,849 


17,078,814 


4,647,225 


929,543 


122,894 


108,253 


13,114 




8,364 
35,294 
45,919 

44,104 
37,809 
351517 
35,674 
35,840 

103,785 
65,457 

176,599 
81,326 
52,362 

4,109 


13,303 
13,006 
11,754 
10,457 
6,161 
19,364 
6,605 
7,430 
1,574 
494 

8 


2,524 
6,110 
11,129 

11,855 
11, U9 
4,970 

71150 
19,265 
8,900 
9,953 
3,543 
1,432 

12 


40,333 
176,524 
305,920 
362,267 

345,133 
328,037 
275,072 
248,004 
189,002 
607,170 
326,382 
315,488 

400^149 
39; 332 


118,983 
442,865 
708,031 
715,921 

5291398 
381,629 
311,424 
227,102 
574,706 
223,935 
319,848 
69,489 
23,659 
791 




99,15i 
328,439 
428,408 
407,273 

338,330 
280,299 
203,565 
163,034 
U6,433 
297,607 
115,353 
161,299 
33,643 
11,424 
388 
202 


16,976 

751I145 
902,737 

903I451 
820,731 

2,386,525 
1,433,591 
3,666,967 
1,790,702 
1,521,659 
197,355 
325,880 


2^783 
34,792 

1261900 

154,831 

150I317 
128,JA5 
473,466 
318,127 
1,037,022 

U5l564 

190,562 


8,256 

1391624 
126,170 

105,053 

81,299 

56,846 

54,808 

34,294 

100,443 

45,442 

64,026 

12,805 

4,642 

156 

84 


220 
5,967 
13,695 
15,679 

14,877 
12,476 

8l385 
5,957 

10l853 

2,080 

773 

23 


s 

5,238 
4,133 
14,776 

22I872 
6,611 
2I955 

75 




$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under .$50,000 

$50,000 under $100,000 

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


576 
504 

648 

590 

460 

513 

462 

2,110 

1,444 

5,759 

2,480 

1,920 

226 






Nontaxable returns, total.... 


191,362 


23,672 


29,576 


2,311,498 


5,311,451 


2,534,317 


391,008 


256,691 


42,365 


370,559 


37,179 


12,649 


2,376 


No adjusted groaa Income... 


*50,910 
6,459 

68;i08 
23,988 
16,480 


(=) 
1 2,721 

7,412 
8,412 
2,310 
2,554 


(') 

7^276 
4,448 
3,285 


137,437 
179,120 

522 ',368 
311,326 
169,399 


431,322 
595,729 

11258; Oil 
494,643 
196,190 
118,934 


282,666 
367,551 
1,102,887 
500,338 
126,016 
32,069 


I37I39O 
105,180 
55,605 
23,179 


11,150 
79,066 
68,623 
51,533 
46,319 


1,907 
12,905 

8I3I7 
3,003 


133 1 379 
93,615 
53,299 

26,017 


1,745 
12,076 
10,113 
7,624 
5,621 


J 3,519 

1I4O7 
3,007 








$1,000 under $2,000 

$2,000 under $3,000 

$3,000 under $4,000 

$4,000 under $5,000 


166 
332 








315,270 
203,012 


50, K4 
54,787 


48,812 
44,118 
43,746 


2,864,217 
1,567,370 
2,847,402 


7,178,316 
2,173,308 
1,223,645 


2,509,086 
21,390 
3,841 


1 626 100 


1 690 688 


281,672 


714,137 


67.119 


29 .901 


1,970 


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


1,133,664 
621,091 


4,316 
11,328 


1665 


3,636ll40 


2281326 




56,243 




57I0X 


3,496 
15,023 



Footnotes at end of table. See text for "Descrlptlo 



"Explanation of Classlf Icatli 



INDIVIDUAL INCOME TA.X RETURNS FOR 1964 



LOSS. EXEMPTIONS, TAXABLE 



AND TAX ITEMS, BY 



Self -employment 



Grand totaa 

Taxable returns, total.... 

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 

$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 $50,000... 
$50,000 under $100,000. . 
$100,000 under $500,000. 
$500,000 under $1,000,001 

Nontaxable returns, total. 
No adjusted gross income 

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 

Returns under $5,000 

Returns $5,000 under $10,0( 
Returns $10,000 or more... 



,402,915 
,341,447 



3,811 
29,663 
61,780 



38,396 


7,034 


26,452 


5,092 


25,371 




19,351 


3,867 


51,274 


11,053 




5,376 


37,078 


8,805 


7,129 


1,721 







6,468 
11,729 
73,092 



Grand total. 



$5,000 under $6,000.. 
$6,000 under $7,000., 
$7,000 under $8,000.. 



under $50,000. 



Nontaxable returns, total.. 
No adjusted gross Income. 
Under $600 



Returns under : 
Returns $5,000 
Returns $10,00< 



Payments on 1964 



Number Amount 



27,390 

91,651 
64,741 
215,353 
140,420 
185,094 



438,' 



2,292, 



Sample and Limitations of the Data" 



"Explanatloi 



See text for "Description of 

^Adjusted gross income less deficit. 

^Deficit 

■'Estimate is not shown separately because of high sampling variability. However, the ' 

^Negative "Other sources." 

NOTE; Detail may not add to total because of rounding. 



93,015 
152,520 
802,642 

Classifications and Terras." 
are included in the appropria 



Credit on 1965 



14,941 
15,238 
1,916 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 







Ad J 


sted 


standard 
doll.,.) 




n 




Ttoable Income 


In 


iefore" 


Adjusted grosa Income clasaee 


returns with 


ZTl 


dolltr.) 


no taxable 
Income 


Number of 


fDHX,— >d 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


Grand total 


3,066, m 


9,346,280 


1,654,936 


5,474,344 


1,788,375 


1,277,791 


4,088,510 


812,129 




1,107,835 


6,525,321 


572,777 


1,876,847 




1,107,335 


3,975,619 


793,309 




62,294 
172,972 

121,869 
101,996 
70,944 
54,093 
45,528 

21^727 
1A,107 

571 


109,458 
436,135 
688,779 

669,932 
659,231 
530,889 
460,163 
429,961 

' 369^583 
377,327 
36,353 
13,480 


731362 
94,148 
79,577 
69,201 
66,303 
52,918 
45,990 

88,126 

21,710 

14,059 

570 

93 


2381190 
336,058 
275,212 

102^330 
86,454 
165,656 

27^631 

1,054 

170 


I 


62,294 
172,972 
196,524 
156,662 
121,869 
101,995 

54)093 
45,528 
88,454 
21,727 
14,107 
571 
93 


10,839 
124,590 
258,502 
347,438 
379,510 

311)344 
300,531 
787,450 
307,133 
335,646 
34,730 
13,218 
556 




1,825 




20,482 












65,769 




72,459 


fe'mn ^T'^ tfl'ooo 












$9, under $1 , 


159,741 
















6,605 




272 


$1 , 000, 000 or more 






1,958,332 


2,820,959 


982,159 


3,597,497 


1,738,375 


169,956 


112,891 




18,820 








267,513 
340,287 
915,462 
364,419 
52,252 
K,133 


94,200 

275,913 

1,309,923 

874,415 

62^351 
26,723 


127,406 
158,622 
450, 143 
203,345 
30,824 
8,850 


5521669 

1,626,145 

789,425 

125,381 

11^399 


340|287 
368,883 

'701 


46,579 

42)772 
12,031 
3,560 


8,268 

27)377 
18,317 
12,705 




























2,300 




2,542,523 
125^257 


4,730,322 
2,772,463 
1,842,992 


1,250,020 
280,050 
124,864 


4,510,312 
728,006 
236,027 


1,787,673 
701 


397)685 


1,754)755 
1,482,150 




141,336 








348,933 


' 










Tai credits 


Income 
credits 


Seir-em 


(ployment 




Retirement Income 


investment | 


Foreign taxes 


Other 


ax 


Adjusted gross income classes 


Number 


^A^unt^ 




Amount 




crho,.,.nd 


Number 


Amount 
(Ttaxj.md 


returns 


^Amount 




(9) 


(10) 


(11) 


(12) 


(13) 


(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


Grand total 


427,401 


50,756 


38,006 


5,401 


1,875 


270 


284,445 


10,135 


745,608 


413,243 


40,273 




269,420 


34,262 


33,224 


4,045 


1,824 


131 




9,270 


745,508 


157, D9 


26,070 




5,552 
44,510 
53,044 

31,269 
19,121 

U^SIA 
9,869 
23,893 

'l78 


123 
3,019 
5,862 
5,659 
4,665 
3,015 

i;853 

2,190 
3,905 
1,009 

29 


4,133 
3,121 

2^016 
2,319 

i;986 


272 

296 
349 

339 


- 


131 


7,240 
26,544 
(-27,822 
23,326 

24,684 
17,714 

15)139 
15,328 
35,457 
12,232 
8,472 
1^ 397 
58 


288 
633 

582 

521 

2,076 

1,000 

1,051 

122 

23 

1 


1,633 
17,065 
36,413 
52,575 
59,984 
68,582 
63,358 
55,608 
54,140 
153,010 
68,321 
93,410 
14,690 
6,548 


6,149 
19,949 
24,433 
22,523 
16,839 
13,975 
9,510 
9,140 
7,863 
16,460 
5,507 
4,466 

19 


414 








3,015 




3,526 


$4,000 under $5, 








1,910 




















1,071 








, 






$1,000,000 or more 






157.981 


16,494 


4,782 


1,356 


(') 


(') 


47 214 


865 




256,104 


14,203 




41,527 

40i416 
11,229 


1,322 
7,164 

2^712 
1,038 


!;:: 


157 




(•') 


1^403 


119 
1% 




23,790 
62,549 
119,957 
42,583 

l)0O3 
606 


741 




















80 








301,292 
91,574 
34,534 


14 '.807 


^'807 


1,086 
1,983 


(') 
573 


(') 
10 


IS 


2,470 
3,391 
4,273 


107,585 
301,571 


.328,553 


23,055 






Returns $10,000 or more 




5,828 


8,675 




^ 






6,043 



See text for "Description of the SaiiqDle 

^Less than $500. 

^Estimate is not shovm separately becaiise of high sampling variability. 

NOTE: Detail may not add to total because of rounding. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



1IZED DEDUCTION RETURNS 



TAXABLE INCOME, AND 



ITEMIZED DEDUCTIONS, EXEMPTIONS, 





with 
Itemized 
deductions 


gross 








Itemized deduc 


n^ — 










fn,oa,»d 


Number 


Adjusted gross income classes 




Medical 


expenses 


Taxes 


Interest paid 


Contrib 


utions 


Other 

tions 
(Thc.^d 




Number of 
returns 


Amount 


Number of 


Amour.t 


'^ZZ' 


Amount 


returns 


rtri 


taxable 




(1) 


(2) 


(3) 


(*) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(11) 


(L2) 


(13) 


(W) 


Grand total 


2,751,948 


23,230,885 


5,624,058 


2,481,133 


1,926,507 


2,623,821 


1,485,125 


937,328 


435,816 


2,521,029 


1,274,488 


452,082 


4 


,924,222 


648.384 


Taxable returns, total 


1,882,015 


20,784,867 


4,294,723 


1,727,634 


1,249,240 


1,845,482 


1,218,000 


709, 193 


381,236 


1.301.693 


1,068.341 


377.912 


3.336.971 






36,858 
155,467 
231,834 
250,610 
216,461 
178,303 
137,621 
108,941 

70,906 
209,153 

33)073 

11,331 

387 

202 


396," 681 

824,004 

1,127,107 

1,193,492 

1)029; 263 
919,995 
671,866 

2! 222! 909 

256,642 
416,152 


16,589 
103,162 
211,772 
282,691 
275,937 

146)027 
519,045 
304,672 

393) 503 
400,056 
59,056 
89,382 


207)259 
231.245 

102)730 
65,177 

192,835 
86,623 

136,055 

30,722 

10,659 

364 


7.222 

114)733 

110,592 
91,923 
77,671 
76,059 
51,491 

176,256 
%,230 

214,525 
67,425 
30,584 
1,384 


32, U8 
246)999 

69)251 
207,323 
92,997 
146,211 
32,924 
11,282 
385 
202 


4,225 

59)498 
76,661 
78,361 
74,631 
64,608 

150,064 
90,79= 
241,324 

102)320 
12,343 


31)424 
86)519 
81,331 

50)970 
31,052 
91,260 
35,852 
61.782 

'257 


12)586 
19,314 

23)356 

11)455 
44,945 
26,823 
73,133 
42,677 
46,057 
4,969 
12,740 


33,956 
233)394 
170, 290 

67)373 
203.191 

90. 9U 
143, 600 

'38I 
201 


41)438 
54,474 

36)647 
29,936 
106,624 
63,463 

171 ) 092 
33,757 
52,074 


526 

3)306 
17.453 
15,641 

17)751 
15.566 
12.248 
41,155 
27,363 

50)004 
6,604 
7,353 


371)973 
440.708 

209)094 
140,648 
409,050 
183,234 

23)490 
783 
391 
















T' te'ooo 












$8,000 under $9,000 
















$50,000 under $100,000 

$100,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 






869,933 


2,446,018 


1,329,335 


753,504 


677,267 


778,339 


267,125 


228,130 


104.530 


719,336 


206.147 


74,170 


1,537,251 


643.884 


Under $600 


15,148 
27,263 
252,079 

178^944 
73,541 


22)205 
393,297 

613)871 
323,906 


20)493 
208,332 

16l)048 
329,351 


20)250 
193, %3 
241.674 

69)539 
48,231 


11)447 
106,726 
165,365 

157)165 


23)450 
214,607 
248,011 

44)031 


2,005 
4,962 
52,490 
74.412 
64,645 

37)197 


70)234 
54,023 

17)368 


20)708 
19,225 

37)033 


12,641 

193)074 
231,171 
155,112 

33)151 


1,536 

46)201 
36,390 
19,212 
71,376 


104 

12)339 
16,313 

26)573 


24,937 

363)774 
468,585 
369.262 

107)535 














201.433 










$4,000 under $5,000 








Returns under $5,000 

Returns *5,000 under $10,000 


1,495,604 
756,668 
499,675 


4,452,998 


1,614,197 
1,237.320 
2,722,539 


1,318,670 
700,519 
461,949 


524)151 
627,969 


1,383,482 
744,733 
495,554 


333)285 
747,109 


403,138 
320,500 
213,693 


274)306 


1,316,438 
434)765 


257.367 
739)124 


78,546 
234)025 


2,491,301 
'937)618 


20) 683 








l^abl 


lncc« 


fn»«.-,d 




Tax credits 


Income tax 
thUa,,) 


Self -em 


loyment 


Ad lusted gross i o 


Number of 


Amount 


Retlreme 




Investment 


Foreign taxes 


Other 


IX 




Number of 
returns 


,^^^, 


Number of 
returns 


(Th<,i„md 


'^tS^'^ 


,r^^ 


returns 




returns 


X'^L 




(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


(25) 


(26) 


(27) 


(23) 


Grand total 


2,103,064 


13,246,995 


3,877,462 


872,703 


109.321 


82,899 


15,091 


33.483 


10,109 


339,318 


31,159 


3,661,838 


346,138 


55.743 




1,382,015 


13,103,194 


3,853,917 


660, 126 


88,635 


75.031 


14,070 


31.412 


9.662 


755,706 


79.731 


3.661.833 


264,116 


48 357 








36,858 
155,467 
231,884 
250,610 
216,461 

137^621 
108,941 

70,906 
209,153 

93,626 

33 1 073 

11,331 

387 


6.087 
88,845 
240.260 
403,707 

508)887 

385,190 

1,599,074 

1,126,459 

3,331,321 

1)503)442 
196,799 


39)581 
67,646 
39,062 
95,805 

92)340 
70,946 
313,725 
247,424 

782)026 
115,293 
190,562 


2.705 

86)530 
83,265 
73,784 
62, 178 
41,694 

24)424 
76,551 
39,306 

12)627 

4,595 

156 

84 


10.020 
10.212 
9.462 

6)533 
3,767 
11,954 
5,972 
9,990 
2,051 
763 
23 


1 ;:" 

5,574 

3,923 
3,313 
3,222 

1.815 
10,402 
7,125 
20,953 
6,492 
2,934 
147 


'93 

217 

114 

1,362 

1,105 
5.175 

1)397 
226 
238 


1 - 
S 2,104 

5,102 

3,511 
3.198 

2)912 
142 
75 


241 

340 

249 

1,536 

3)864 

555 


5,304 
44,190 

68)922 
1 53,638 
<. 56,458 

) 44)750 
30,241 

112,089 
65,892 

121,911 

10)371 
379 


30 

1,023 
1,315 
1,353 

1)956 
1,277 
7,319 
6,579 
22.056 
13,767 
14,496 
1.384 


831 
10,869 
30,418 
56,153 

87)526 
83,445 
65,738 
292,756 
233,522 
902,235 

76l)009 
112,601 
186,953 


12)194 
27,295 
29,340 

24)421 
16.842 
16,231 
11,488 
34,815 
18,083 
32,612 

2)400 




$2,000 under $3,000 


1,187 
3,265 




' «/;'iwi 






















7,412 








7' 734 




1,669 
587 


$100,000 under $500,000 

$500,000 under $1,000,000 




Nontaxable returns, total 


221,049 


143,801 


23,545 


212,577 


20.686 


7,863 


1,021 


2,071 


447 


83,612 


1,428 




82,072 


7,386 




18,074 
72,376 
62,407 


2,882 
32.842 


5.230 
6.776 


17.221 
71,771 
58.199 
42.070 


423 
4.912 
5.855 


[ 5,820 


436 


}- 


447 


■ 25,709 
, 11)973 


265 
235 


1 ; 


21,821 
24.425 

4)314 










1,325 
2,045 
2,236 

370 
751 












und *5 000 


371.250 
735,980 
495,834 


849.035 
2,551,395 
9.846.515 


140.336 


412.396 


37,002 
30)332 


14,377 
43)359 


884 
12)692 


(M 
24)279 


(M 

324 
9.572 


253,307 
243.553 
342,453 


3,998 
8,339 


98.271 

398,311 

3,165.254 


149.410 




Returns $5,000 under $10,000 


2l)60§ 




See text for "Description of th 


e sample an 


i Limitation 


8 of the Da 


a" and "Ex[ 


lanatlon 


Classlfic 


ations and 


rerms: 

















94 

Table 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Taxpayers using the general 



Base of Tentative 



Taxable returns, total 

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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

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

Nontaxable returns , total 

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 or more 

Returns under $5,000 

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



2,410 
52,728 
98,360 



2,410 
52,728 
97,842 
100,306 
100,549 
76,129 
55,678 



142,983 
106,023 
55,701 



{^. 



193, V?i, 
405,159 
243,754 



147,099 
83^228 



659,698 
391,722 
227,582 



50,187 
147,099 
102,572 

71,705 



624,849 
353,136 
204,339 



I Schedule B attached — Continued 



Taxpayers using 



■ alternative 



Taxpayers using 



$4,000 1 
$5,000 1 
$6,000 . 
$7,000 1 



Nontaxable i 



$1,000 

under $2,000. 

under $3,000. 

under $4,000. 



Returns under $5,000 

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

See text for "Description oj 

'Less than $500. 

NOTE: Detail may not add t( 



147,742 


loS.DlS 


6,711 


2,952 


13,724 


9,254 


20,334 


21,405 


15,626 


18,173 


13,137 


17,510 




10,675 


9,016 


12,724 


25,083 


31,078 


11,427 


14,033 



,728 


463 
1,315 




,140 


1,135 


1, 


',390 


i;257 


1, 


,965 


1,695 


1, 


,330 


1,076 




,870 


317 





31,934 
36,404 
27,951 



34,848 
38,589 
23,241 



"Explanation of Classi: 



SECTION 5 



States and Regions 



TABLE CONTENTS 

Text Table 

S. Selected sources of income by Internal Revenue Service regions. 95 

Basic Tables 

31. Selected sources of income, taxable income, and income tax by States, 
96 

32. Adjusted gross income, ex'emptions, taxable income, and tax items, by 
adjusted gross income and States, 99 



subdivisions of the Service. The States comprising each 
region are indicated in the inap which represents the 
field organization of the Service on December 31, 1964. 
In 1965, the Northeast and Nevv York Regions were 
merged to form the North Atlantic Region. 

Chart 6 shows a percentage distribution of adjusted 
gross income by Internal Revenue Service region. 
Distributions of salaries and wages, and of net business 
income (not included in the chart) show a similar 



SALARIES AND WAGES IS DOMINANT SOURCE 
OF INCOME IN EACH STATE 

For each of the States and the District of Columbia 
salaries and wages is the dominant component of adjusted 
gross income. Nationally 81.5 percent of adjusted gross 
income is made up of salaries and wages and most States 
are close to the nationalaveragein this respect. Only for 
North Dakota and South Dakota does this proportion fall 
below 70 percent. Shares of other sources of income do 
vary noticeably among the States and these differences 
are reflected in the regional analyses presented here. 

Most taxpayers file returns with District Offices of the 
Internal Revenue Service and the State data in tables 31 
and 32 are based on the classification of returns by the 
District in which they were filed. National totals in these 
tables differ slightly from those presented elsewhere in 
this report because of differences in sample weights. 
Regional totals may be created by combinations of the 
State data. 

In table S selected sources of income are tabulated 
for Internal Revenue Service Regions, administrative 



Chart 6. -PERCENT DISTR IBUTION OF ADJUSTED 
GROSS INCOME BY INTERNAL REVENUE 
SERVICE REGIONS 









Table 


S.— SELECTED SOURCES 


OF INCOME BY 


INTERNAL REVENUE SERVICE REGIONS 


















Adjusted gross 
^ 'deficit 


Salaries and 
uages (gross) 


profit and 


'"idiosr""" 


Partnership net 


Net ja-- 


:.Er== 


Interest 


All other 
adjustments 2 




Amount 


percent 


Amount 


tctal 


Amount 


Per^cent 


iTi^l 


Per^cent 


(Tml 


~ 


Amount 


~ 


Amount 


to'tal 


Amount 


Percent 


dotl.r,) 


Percent 




(1) 


(2) 


(3) 


(4) 


(5) 


ib) 


(") 


(8) 


(?) 


(10) 


(11) 




(13) 


(14) 


(15) 


(16) 


(17) 


(18) 


United States, total' 
Internal revenue regions. 


'791 

395,927 
25,669 
46,328 
61,207 
58,211 
39,660 
59,702 

661204 


100.0 

15.5 

10.0 
15.1 
9.8 
16.7 


3?; 010 
51,147 
48,697 
32,707 
47,263 
31,267 


100.0 

iiis 

15.9 

10.1 
14.6 
9.7 


22,997 

2|476 
3,120 
3,347 

2, '572 
4,134 


100.0 

13 '.6 
14.5 
10.1 

ll'2 
18.0 


2,t32 

-2 

2,634 
28 

433 

207 

'l62 
216 


100.0 

0.4 
1.3 
16.5 

b'.l 
8.2 


9,733 
400 

1^282 
1,196 
1,041 

1^142 
1,812 


100.0 


7,940 
3c 

490 
1,000 

801 
1,099 

1,778 


100.0 


1,079 
2,142 
2,163 
1,436 

'821 


9.1 
18.0 
18.2 

8.4 

13.6 
5.9 


37 

717 
1,541 

1^231 
886 

1,621 

883 

1,970 


: 


940 

1,208 

1,390 
1,150 
1,017 


: 


Northeast 


12 
12 

10 

18 





6 
12 

10 
13 


2 



15 
12 

12 

8 
16 

8 




6 
11 
15 

8 

17 
14 
12 




















Mid^esr* 








. ""^^"^ 





See text for "Description 
^Includes amounts for "Ot. 
^Includes net income and 
^Returns of bona fide res: 
NOTE; Detail may not add 



Data" and "Explai 



1 of Classifications and Terms. 



95 



96 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 





Table 


31.— SELECTED SOURCES OF INCOME 


, TAXABLE 


INCOME, AND INCOME TAX BY STATES 










T.-' 


Adjusted 

^"^(lesr"" 
deficit) 


Salaries and wages 
(gross) 


Business net profit 
and loss 


Farm net profit and 
loss 


Partnership net pK>fit 


'^^^z^p^ 


states 


Number of 




Number of 


Amount 


Number of 


Amount 
doll.,.) 


Number of 


Amount 


T^Z.f 


Ajiovmt 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


(8) 


(9) 


(10) 


(U) 


(12) 


United States, total' 


65,37^,966 


396,717,441 


57,525,324 


323,292,293 


5,792,435 


22,996,152 


3,110,294 


2,631,756 


1,933,257 


9,733,366 


6,825,458 


7,940,517 




'?i';gJ 

51x1981 

676,922 

1,051,842 

173,712 

307,921 

1,826,217 

1,290,561 
254,499 

3,934! 517 
1,659,633 

966,545 
759,582 
906,422 
911,826 
346,204 

1,413,264 
2,052,787 
2,778,296 
1,223,068 

1,526,542 
237,061 
526,183 
157,369 
251,379 

2,465,655 

296,480 

6,765,141 

1,463,019 

214,000 

3,490,858 
773,287 

4,063;371 
331,450 

675,999 

230,793 

1,137,359 

3,198,122 

314,424 

135,185 

i;038!447 

533,314 

1,451,600 

11.9,037 
158,753 


4,668,920 
514,430 

4515991287 

3,952,187 
7,486,948 
1,312,409 
1,936,725 
10,012,055 

6,759,792 
1,473,087 
1,101,836 
26,235,698 
9,908,149 

5,078,669 
4,106,399 
4,507,592 
4,921,266 
1,710,434 

8,906,269 
12,542,506 
18,921,551 
6,805,196 
2,260,697 

1A65;002 
2,661,572 
1,095,237 
1,337,483 

16,728,529 
1,548,204 

46,327,534 

7,055,727 

984,720 

22,098,881 
4,037,906 
4,126,743 

24,559,544 
1,899,190 

3,240,718 
966,932 
5,661,799 
17,435,266 
1,887,024 

692,379 

6!462;224 
2,774,766 
8,309,201 

639,937 
790,883 


805,113 
66,766 

5,793,511 

593,954 
949,323 

158,110 

284,060 

1,533,015 

1,171,962 

IfSt 

3,471,126 
1,456,285 

619^765 
760,690 

304^848 

l'858|402 

2,493,691 

1,013,967 

409,467 

1,299,671 
191,610 
400,430 
144,051 
227,225 

2,230,581 

265,545 

6,066,843 

1,290,861 

3,125,032 
650,419 
587,102 

3,&48,262 
303,464 

613,711 

152,892 

1,001,701 

2,786,048 

287,278 

116,096 

1,250,629 

915,424 

477,142 

1,236,304 

102,209 
119,336 


4,031,986 
455,414 
2,260,736 
1,778,148 
36,830,105 

3,197,018 
6,014,141 
976,413 
1,544,041 
7,769,298 

5,724,481 

1,243,781 

856,910 

6I263A22 

3,579,142 
3,101,020 
3,584,747 
4,039,071 
1,381,403 

7,607,150 
10,332,358 
15,355,650 
5,422,777 
1,822,356 

6,996,998 

868,533 

1,903,183 

1,103!742 

14,014,407 

37*0091903 

5,877,504 

652,532 

18,613,548 
3,237,915 
3,337,288 

20, 390, 613 
1,553,934 

2,768,435 

4,712^887 
14,074,208 
1,609,873 

544,099 
6,614,514 
5,252,920 
2,379,593 
6,695,053 

514,843 
618,932 


3I953 
42,922 
62,039 
619,390 

75,198 
83,478 
11,706 
16,536 
184,319 

102,365 
19,584 
25,837 

145*477 

8o)687 
95,458 
83,807 

93,090 
156,769 

II6I1IO 
50,376 

144,342 
26,719 
54,228 
13,081 

180,168 

1161823 
18,154 

303,691 
92,359 
63,314 

25^029 

51,041 

96^361 
369,856 
30,020 

15,239 
94,942 

106,301 
46,689 

135,725 

16,150 
3,299 


250,555 

155,'l82 

185,877 

2,885,634 

264,745 
426,236 
54,099 
66,595 
615,172 

410,554 

69,521 

90,714 

1,361,187 

405,755 
276,728 
313,502 
291,503 
114,185 

446,258 
726,778 
1,098,720 
405,139 
145,376 

532,619 
75,682 

165,365 
53,532 
83,598 

847,379 

78,236 

2,475,850 

372,605 
56,734 

1,236,300 
279,048 
266,720 

1,342,141 

183,661 
77,815 

341,512 

1,149,727 

98,902 

54,506 
363,832 
408,699 

135,757 
520,905 

46^240 


55,595 

7,712 
55,212 
99,313 

5*023 
38,591 

182! 927 
146,763 

175,390 
104,756 
125,365 
33,302 
9,400 

23,064 
6,235 
95,764 
142,198 
48,310 

146,789 
29,459 
95,525 
1,612 
1,959 

10,318 
13,020 
60,115 
127,093 
61,912 

145,138 

37^092 
67,945 

39,200 
58,095 
117,707 
226,701 
15,545 

7,185 
63,570 
42,568 
16,677 
127,147 

9,822 


^3,735 

§731 

42;465 

U,041 
3,239 
3,604 
^2,062 
15,159 

5,090 
6,080 

36l!o51 
162,585 

365,493 
165,401 
83,722 
^2,500 
18,777 

5,996 
2,266 
63,577 
166,950 
15,293 

99,697 

178*705 

1^309 

=14;041 
9,577 

141*, 327 

122,438 

9,671 
27,003 
(') 

14,175 
87,159 
20,927 
=59,548 
6,760 

2,124 
3,145 
68,186 

143,771 

^5,044 


20,089 
2,612 
16,063 
17,535 
253,533 

29,273 
27,492 
2,658 
4,763 
51,765 

29,963 
7,072 
10,310 
111,830 
40,802 

44,781 
31,669 
27,895 
28,801 
7,032 

61^371 
42,935 
16,728 

45,784 

i2,on 

26,284 
6,379 
5,571 

7;826 

215,299 

35,495 

9,734 

26)817 

30,100 

100,693 

6,783 

13,682 
10,582 
33,703 
121,348 
10,998 

2,480 
29,748 
37,300 
15,932 
33,981 

5,093 
2,085 


120,928 
14,190 
52,052 
95,494 
1,197,562 

95,541 
141,504 
20,881 
37,457 
226,014 

165,295 
28,973 
39,439 
679,046 
225,741 

221,685 
133,595 
146,518 
161,197 
22,382 

143,978 
176,729 
410,052 
133,761 
93,033 

215,903 
45,021 
94;923 
25,037 
13,551 

350,150 

34,934 

1,208,300 

181,007 

367,299 
125,060 
158,112 
566,199 
33,576 

80,932 
31,348 
173,922 
476, 654 
53,860 

7,620 
153,U9 
187,419 
45,326 

18,948 
1,224 


52,077 
5,525 
55,144 
35,650 
386,564 

96,045 
U8,906 
15,778 
25,079 
213,521 

25^047 
31,938 

150^340 

185,681 
108,438 
50,438 
52,605 
34,332 

109,418 
189,344 
266,793 
190,369 
35,956 

190,655 
41,273 

100,471 
18,379 
22,126 

246,988 

8O1U78 
89,444 
37,530 

282,631 
69,982 
102,176 
349,068 
29,155 

6i;015 
76,438 

31^420 

U,348 
108,186 
126,078 

31,769 
178,330 

15,904 
24,554 






4,568 




75,374 


Arkansas. 


43,161 








97,390 


Connecticut 


184,210 








63,503 




339,346 








29,405 


Idaho 

Illinois 


26,532 

459,705 




117,523 


J^^^ 






63,454 




75,356 


ifeiiir^^ 






132,758 




201,054 


Michle^^ 


256,896 








49,133 
















38,711 








266,494 
















21,091 












U2,339 


Pennsyi^da 


347,336 








45,467 


South Skota"^ 


40,930 








500,774 
27,482 




16,508 
















127,201 






Other areas' 


35,587 



•nd of table. See 



pattern. More divergent patterns emerge for other 
sources of income, especially for dividends, capital 
gains and farm income. 

The Northeast and New York Region accounted for 
18 percent of adjusted gross income and 27 percent of 
dividends included in adjusted gross income. The 
Western and Southwestern Regions accounted for propor- 
tions of capital gains noticeably in excess of their pro- 
portion of adjusted gross income. 

The distribution of most income items by States and 
regions resembled the distribution of the number of 



returns reporting such items. This was not the case, 
however, for farm income. For example, 59 percent of 
net farm income was reported in the Midwest but this 
region accounted for only 32 percent of the returns 
reporting farm net profit and loss. 

Reported tax liability (after credits) was distributed 
among the regions as follows: Northeast--6.7 percent, 
Southeast- -8,8 percent, Southwest- -9.2 percent, New 
York- -12.7 percent, Central--14.8 percent, .Vlidwest-- 
15.0 percent, Middle Atlantic--16,0 percent, and 
Western--16.8 percent. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 

Table 31. — SELECTED SOURCES OF INCOME, TAXABLE INCOME, AND INCOME TAX BY STATES— Continued 

[Taxable and nontaxable retdms] 



97 

































Dividends 


ncomi"^*^'' 


Interest received 


""L^me" 


id loss" 


Taxable income 


inco^e^tax^after 


Slates 


"^t":^' 


,ZZl 


"'^SZ^' 


r^n 


returns 


taomu 


returns 


Amount 


Number of 
returns 


*,!.,.; 


Number of 


Amount 




(U) 


(14) 


(15) 


(16) 


(17) 


(IB) 


(19) 


(20) 


(21) 


(22) 


(23) 


(24) 


United States, total' 


9,750,527 


12,851,887 


5,609,507 


11,940.732 


22,223,031 


10,132,772 


fc, 305, 272 


3,226,806 


51.920,288 229,831,161 


51.303,352 


47.159,949 


ham 


611431 

40,735 

1,101,673 

L24,037 
223,285 
32;316 
44,997 
284,803 

106,078 

26|464 
630,468 
200,391 

122^837 
87,946 
86,762 
50,397 

182,999 
339,200 

196;995 
49,462 

921768 
19,662 
32,035 

480,079 

29,265 

1,356,397 

30',358 

488,945 
70,800 
99,341 

641,584 
49,420 

52,815 
37,361 
103,902 

38i436 

18,446 
163:481 
154,429 

58,785 
225,382 


10i;299 

44,038 

1,323,621 

109,751 
393,063 
153,526 
104,552 

135,494 
41,458 

820;S42 
198,576 

97I548 
121,237 
100,120 

76,889 

254,714 
521,374 
529,728 

41)593 

308,607 

61^471 
27,006 
45,265 

581,354 

27,679 

2,274,447 

179,109 
14,851 

622,548 
79,561 

1,000^444 
76,425 

58,653 
17,229 
102,151 

34,203 
218,969 
127,048 

78.598 
224,129 


44,222 
2,613 

22; 916 
608,166 

59,899 
133,553 
19,960 
30,875 

58,107 
20,420 
12,124 
373,737 
109,119 

52)231 
50,670 
34)753 

104,930 
201,699 
232,956 
112,263 

134,223 
21,985 
52,517 
12,284 
16,455 

298,048 
16,459 

850,273 
76,176 

266,784 
41,209 
51,279 

30)422 

30,071 

57)336 
190,643 

11,448 
101,157 
72,080 

U0)530 

9,223 
30,417 


65,092 
3,197 
95,379 
40,274 
1.216,565 

99.613 

150)257 
100.367 
449.085 

126.613 
37.575 
16,048 

181)472 

84,202 
87,096 

91)702 
71,890 

236,788 

487)544 
191,773 
37,659 

287,592 
20,044 
54,430 

533,589 

2,141)981 
168,197 
12,730 

580,054 
73,563 
70,072 

938,279 
71,556 

93)673 
393,189 
32,584 

32,431 
203,719 
114,210 

73,248 
204,834 

10,418 


202,563 
17,933 
157,403 
101.920 

247,978 
455.838 
54.489 
79.619 
612,366 

99)986 

72,551 

1.488,977 

357.468 
249.263 
210.814 
211,407 
102,853 

420,992 
796,670 
973,818 
449,463 
101.731 

482.678 
73.331 

163.961 
40.971 
85.765 

933.175 
68,985 

'307)330 
63,251 

1,221.094 
189.613 
276,906 

1,352.674 

132.104 
66,383 
280.504 
782,984 
1L2,951 

347)269 
403.153 
112,553 

38,624 

60,089 


7)190 
81,123 
46.641 

108,778 
196.814 

410) 092 

100, U5 

30)399 
680,303 

151,640 
99.735 
73.555 
94.597 

176,120 
377,310 

191)720 
42.886 

100)515 
27,344 
36,877 

396,134 

33,938 

1. XI, 301 

104,046 
29,714 

506,886 
89,166 
121,430 
465,813 
52,733 

47,711 
34,017 
104,010 
392,282 
39,181 

134)543 
180.163 

17.329 
36,823 


6)014 
51.100 
50.800 

79.574 
94,289 
14.797 

177)482 

92,760 

406)895 
166,667 

113,593 

80)611 
110.266 
30.834 

93.667 
224.661 
216.078 

42)757 

34)263 
18.874 
22.919 

34)206 
520.081 

31)524 

305.877 

73)014 
301,664 
36,705 

54.187 
35,699 
92.292 

23)701 

^8.651 

108)777 
52.388 
151.438 

13,271 
17,274 


X.419 
373 
20.669 
43.046 
258.004 

33.027 
30.425 
5.373 

75)295 

50.787 

15)481 
238.032 
83.742 

104.046 
104,825 
51.123 
121,843 
5.398 

51,516 
23,611 
91,612 

95.669 
17.403 

10)352 
3.347 

52.070 
23,632 
163,615 
60.078 
22,618 

129,492 

27)227 
131.570 
U.344 

27.583 
22.420 
53.135 
420.744 
10.262 

1.647 
52.693 

23)420 
78.089 


652,232 
50.562 
361,006 
335.631 
5,366,843 

528,567 
901,571 

259)001 
1,356,308 

972,726 

155)531 
3,275,597 
1,328,118 

729,021 
578,314 

254,610 

1,150,749 
1,715,428 
2,316,491 

330)553 

1,154,637 
172,995 

133)151 
195,818 

2,075,549 

207.501 

5.650.933 

1.071.350 

145,851 

2.881,303 
553,793 
541,240 

3,333,065 
270,531 

147)143 

827,360 

2,357.221 

100,703 

1,054,214 

351,390 

410,523 

1,132,024 

91.275 


2.449.604 
317,268 
1,512,264 
1,144,871 
25.815.845 

2,200,230 
4,723.540 

1,254)432 
5,463,535 

3,621,745 
870,457 

16,252)531 
5.838.520 

2)251)355 

2,335.797 

2,641.353 

890,223 

5,318,431 
7,422,765 
11.408.593 
3,704,371 
1,095,035 

4,957,718 
630,934 

1,483,545 
674,501 
747,225 

10,175.748 

815.395 

27.624.483 

3.562.436 

13,155,683 
2,188,057 
2,421,327 

14.453.983 
1,114,055 

1.625.095 

2.990)345 
9.803.781 

372.005 
4,413.054 
3.785,750 
1,553,072 
4,717,255 

357.351 


50)514 

356.331 

330.863 

5.287.302 

519.522 
893.332 

254)092 
1,329,859 

965,434 
201.935 

3,234)714 
1,311,223 

550)759 
575.273 
250.577 

1,151,050 

1,695,641 

2,297,964 

910,959 

325,941 

1,152,971 
170,124 

13l)i01 
194,631 

2,061,867 

205,640 

5,502,211 

1,066,005 

2.857,392 
552,053 
534,926 

'255)758 

488,431 
139,556 
821.502 
2.332,471 
251,510 

1,055)472 
336,400 
407,597 

90.130 
90,993 


480,105 




64,269 




302.326 


Arkansas 


224.945 








437,313 




1,013.596 


Delaware 

District of Columbia 


213.779 




722.755 


5f°'|J'' 








Illinois 










536.050 




440.119 


K^t^^kv 










172.541 


Maryland 


1.063,478 




2,361,395 




733,356 




213.038 


PP 


1.014.485 






Nebraska 


291.061 












2.102,002 


New Mexico 


159.819 








90,484 








437.788 




475.032 




2.945.413 


Rhode Island 


229.561 
3U,490 


So^Ui Dak'ta'™ 


86.880 






Texas 


'184)900 




72.382 










Washington^. 


302.056 








59,754 


Other areas' 


91,582 



^Includes data for 
NOTE: Detail may i 



ecause of high sanqiling 
Puerto Rico, whether U. 
total because of roundiJig. 



Data" and "Explanation of Classifications and Tenns. 



variability. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 




INDIVIDUAL INCOME TAX RETURNS FOR 1964 



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INDIVIDUAL INCOME TAX RETURNS 

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SECTION 6 



Historical Data, 1955-1964 



TABLE CONTENTS 

Basic Tables 

33. Number of returns and adjusted gross income, by adjusted gross income 
classes. 113 

34. Number of returns by major characteristics, adjusted gross income and 
deficit, taxable income, and tax, 114 

35. Returns with income tax - Number, adjusted gross income, taxable in- 
come, income tax. and average lax. by adjusted gross income classes. 



type. 



36. Sources of income by type, 116 

37. Itemized deductions on returns with adjusted gross income. 
116 

38. Selected sources of income by adjusted gross income classes, 117 

39. Number of returns, adjusted gross income, and income tax by States. 
119 



These historical data lor years 1955 through 1964 are not precisely com- 
parable among all years, for the data span a period of years during which 
there were changes in law. return forms, and methods of obtaining data. 



-NUMBER OF RETURNS AND ADJUSTED GROSS INCOME BY ADJUSTED GROSS INCOME CLASSES 

[Taxable and nontaxable returns! 



Adjuisted gross income classes 


Number of 

returns 


Adjusted 
gross income 


Number of 
returns 


Adjusted 


Number of 


Adjusted 
^S^deficir 


Number of 
returns 


Adjusted 
^''deficit 


Number of 
returns 


Adjusted 




19 


55 


1956 


1957 


1958 


1959 




58,250,188 


'248,530 


59,197,004 


'267,724 


59,825,121 


'280,321 


59,085,132 


'281,154 


60,271,297 


'305,095 








57,818,16.4 

3,839,333 
3,202,710 
8, 649, 018 
8,428,684 
8,665,023 

8,008,621 
5,862,618 
3,871,849 
2,400,131 
1,412,757 

912,095 
1,518,296 
425,989 
521,613 
77,6<X 

20,928 

f6? 


249,429 

1,262 
2,566 
12,829 
21,134 
30,320 

35,931 
32,062 
25,021 
17,897 
11,940 

8,622 
17,924 

7,300 
15,U6 

5,152 

3,369 
418 

sea 

'899 


58,798,843 

3,775,785 
3,026,632 
8,172,493 
8,043,762 
8,281,023 

8,046,621 
6,234,822 
4,371,937 
2,798,254 
1,811,480 

1,123,333 

1,921,229 

493,101 

89A70 

22,008 

398,161 


268,584 

1,242 
2,420 
12,124 
20,124 
29,005 

36,141 

20*892 
15,314 

10,620 
22,570 

3,543 
16,864 

5,905 


59,407,673 

3,833,400 
2,989,651 
7,876,988 
7,658,617 
7,791,975 

7,868,427 
6,555,283 
4,709,612 

2)091^262 

1,334,622 

2,213,510 

543,746 

617,259 

93,421 

22,128 
585 
223 

417,448 


281,308 

1,256 

11*665 
19,140 
27,264 

35,372 
35,886 
30,480 
23,942 
17,706 

12,623 

17',811 
6,133 

3,499 
398 
448 

'988 


58,700,924 

3,950,030 
3,060,247 
7,690,812 
7,413,127 
7,472,426 

7,385,219 
6,375,555 
4,676,947 
3,226,84^ 
2,171,701 

1,452,594 
2,488,095 

634*671 
91,715 

21,399 

244 

334,258 


282,166 

1,277 
2,447 
11,369 
18,537 
26,150 

33,191 
X,899 
30,258 
24,102 

18,379 

13,746 
29,214 
10,055 
18,209 
6,050 

'360 

'1,012 


59,838,162 

3,918,975 
2,995,694 
7,400,534 
7,128,208 
6,993,571 

7,071,569 
6,392,580 
5,082,962 
3,699,701 
2,621,189 

1,749,953 

3,208,968 

707,192 

724,368 

114,852 

26,844 

230 

433,135 


306,617 








2,392 




10,935 




17,834 








31,802 


$5,000 under $6,000 

$6,000 under $7,000 

$7,CXX) under $8,000 


32,927 
27,640 
22,202 












12,091 




20,868 








4,230 




482 








'1,522 








19 


60 


1961 


1962 


1963 


19&4 


Grand total 


61,027.931 


'315,466 


61,499,420 


'329,861 


62,712,386 


'348,701 


63,943,236 


'368,778 


65,375,601 


'396,660 


tal 


3,991,109 
2,992,643 
7,356,367 
6,924,131 

6,877,017 

6,866,523 
6,422,593 
5,29l,9U 
3,888,676 
2,757,554 

'786^031 
765,186 
101,272 

23,482 
735 
306 


316,558 

1,306 
2,381 
10,859 
17,333 
24,033 

30,882 
35,253 
34,281 
29,080 
23,372 

18,0:5 
42,805 
13,400 
21,926 

611 

=^1,091 


61,067,589 

3,969,165 
3,018,799 
7,264,693 
6,74^,070 
6,695,232 

6,582,888 
6,227,266 
5,282,007 
4,142,911 
2,984,990 

2,146,657 

4,125,222 

889, 562 

853,871 

110,476 

393 
431,831 


330,936 

1,283 
2,409 
10,694 
16,864 

23,410 

29,620 
34,163 

25,284 

20,334 
48,553 
15,151 

7^268 

4,701 

806 

'1,074 


62,290,595 

4,002,049 
3,001,512 
7,267,013 
6,558,908 
6,588,332 

6,280,854 
6,157,541 
5,373,806 
4,332,207 
3,243,914 

2,404,470 
4,940,U0 
1,047,768 

12l!552 

25,998 

421,791 


349,861 

1,304 
2,397 
10,694 
16,396 
23,034 

28,249 
33,834 

32^380 
27,507 

58^230 
17,818 
26,94.4 

4,213 

547 


63,511,244 

3,951,204 
2,990,022 
7,255,761 
6,573,692 
6,364,614 

6,205,636 
5,836,949 
5,473,979 
4,549,765 
3,535,322 

2,650,806 
5,664,051 
1,238,272 
1,054,288 
132,385 

28,311 
816 
371 


370,271 
1,288 
10^697 

32^087 
35,517 
34,028 

25,120 
66,934 
21,044 
30,005 
8,679 

'1,493 


3,937,988 
3,107,878 
7,204,380 
6,211,330 
6,125,320 

5;748!l56 
5,415,250 
4,837,778 
3,875,555 

3,027,314 

i;460A98 

1,211,761 

159,229 

34,946 

432,317 


398,212 


$600 


1,276 












15,530 




21,449 




26,875 








35,143 




36,213 








23,692 




78,291 












10,463 




5,707 










Returns uith no adjusted gross income 


'1,552 







113 



INDIVIDUAL INCOME TAX RETURNS, 1955-1964 



-NUMBER OF 



BY MAJOR CHARACTERISTICS, ADJUSTED GROSS INCOME AND DEFICIT, TAXABLE INCOME, AND TAX 



T^^^^ 



With taxable income. 
With no adjusted groi 

Returns with standard i 



itemized deducti^ 



-employment tax, 



Sales of capital ; 



Ordinary gain from sales 
Sales of property other 



■ depreciable 



Life expectancy 



Royalties : 



Estates and 



Adjusted gross : 
Taxable retun 
Nontaxable re- 



^Foi- 1955-1960, 
^For 1955-1960, 
■'Excludes returns with 



been reduced by the number of returns with no adjusted gross incane for comparability with 
of wages not subject to withholding reported as other income on Form lOAQA. 
For 1961, excludes returns with dividends reported with other income on page 1, Form 1040, 



Form 1040A. For 1961 
e directly preceding ii 



Combined frequ' 



t reported with other income c 
it wholly comparable with tho; 



page 1, Form 1040, 



ot specifically identified on 
not specifically identified 



INDIVIDUAL INCOME TAX RETURNS, 1955-1964 

Table 35.— RETURNS WITH INCOME TAX — NUMBER, ADJUSTED GROSS INCOME, TAXABLE INCOME, INCOME TAX, AND AVERAGE 



BY ADJUSTED GROSS INCOME CLASSES 



NUMBER OF RETURNS 



nder $1,000... 
under $2,000. 
under $3,000. 

under $5' 000. 
under $6,000. 
under $7,000. 



under $10,000.. 

under $15,000. 

under $20,000. 

under $50,000. 

under $100,000 
under $500, 00( 



,650,165 
,111,51 



497,4 
580,991 
89,095 



,296,407 
,238,404 
,344,979 
,,295,457 



.,644,506 

1,214,399 

7,447 



1,033,931 
1,793,668 
,,400,547 



,208,966 
7^973 



852,327 
28'214 



.,775,101 
1,507,689 
,,830,951 



,390,530 
,517,117 
,524,119 
,643,623 



ADJUSTED GROSS INCOME 



I under $7,000. 



$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

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



$1,1 



$600 un( 
$1,000 1 
$2,000 I 



TAXABLE INCCME 



INCOME TAX ; 
Total 

$600 under $1,000 



7,135 
15,: 
25,145 
34,381 
33,460 
28,080 
20,849 

5,295 



10,1 



17,075 
13^716 



13,450 
22,092 
31,279 



18,343 
13,733 
29,177 

10,042 



42,752 
13,376 
21,901 



25,225 
20,302 
48,474 
15,126 



32,441 
ll',031 
19,198 
5,928 



1,200 
6,358 
12,011 



27,420 
22,722 
58,115 



5,397 
12*723 



under $8,000... 

under $9,000... 

under $10,000. . 
under $15,000. 
under $20,000. 
under $50,000. 
under $100,000 
00 under $500, Oa 
00 under $1,000,1 



3,178 
2,779 
2,274 



2,577 
2*484 



AVERAGE INCCME TAX PER TAXABLE RETURN 



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



68,583 
329,456 
987,962 



116 



INDIVIDUAL INCOME TAX RETURNS 1955-1964 



Adjusted gross income less ■ 
Salaries and wages^ 



Partnership: 
Net profit. , 
Net loss..., 



Sales of capital assets: 



Ordinary gain from sales of depreciable property., 
Sales of property other than capital assets: 



Pensions and annuities: 
Life expectancy method. 
3-year method 



Royalties: 
Net income. 
Net loss... 



226,902 

25,395 



283,373 

26,851 



. withholding reported as other income on Form 1040A. 

lunt is a gross figure. 

^Excludes dividends reported on Form 10404. For 1961, excludes dividends reported with other incora- 
"'Excludes interest reported on Form 104QA.. For 1961, excludes interest reported with other income t 
^Includes dividends, interest, and wages not subject to withholding reported on Form 104QA,. 
'For 1963, includes only self-employed pension deduction, but for 1964 also includes excludable sic! 



») Tabulated in combination with the , 



directly preceding it. Combined amounts ; 



net of excludable j 



pay, employee moving expenses, and certain employee business expenses. 



. wholly comparable 



Table 37. —ITEMIZED DEDUCTIONS ON RETURNS WITH ADJUSTED GROSS INCOME, BY TYPE 

[Taxable and nontaxable retorns] 



Type or deduction 


19.5 




-1^^ 


1958 


1959 


1960 


1961 


1962 


1963 


19o4 






fK.Jlion Ml^,) 










27,498 












46,832 




al eroenses 




r 3,473 

5,828 

1 4,810 


/tabulated 


6^269 


ta.SLd 


I0I526 

6;750 
103 


LbSated 


f 6,079 

13,045 

10,274 

< 7,516 

ll '- 


/tabulated 














Contributions 


3,327 








I 4,882 















INDIVIDUAL INCOME TAX RETURNS, 1955-1964 



Table 38.— SELECTED 



INCOME BY ADJUSTED GROSS INCOME CLASSES 

d ncntaxatie returr;S ] 



117 



SALAHJEE AND WAGES' 



$5,000 under $6,( 
$6,000 under $7,( 
$7,000 under $8,1 



adjusted gross 



$1,000 under $2,0( 
$2,000 under $3,01 
$3,000 under $4,0l 

$4,000 under $5,0 
$5,000 under $6,0 
$6,000 under $7,0 



9,417 
16,683 
25,456 



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



adjusted gross : 



INTEREST HECEIVED-' 



Returns with 



income , total . 



I under $3,000. 



$9,000 under $10,000.... 
$10,000 under $15,000... 
$15,000 under $20,000.., 
$20,000 unoer $50,000... 
$50,000 under $100,000., 



Returns with i 



adjusted gross 



118 



Adjusted gross income ■ 



INDIVIDUAL INCOME TAX RETURNS. 1955-1964 

INCOME BY ADJUSTED GROSS INCOME CLASSES - 
(Ttaable and nontaxable retin-nsl 



1955 



1956 



1957 



BUSINESS AND FAiW PROFIT 

Returns with adjusted gross income^ to 

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 $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 $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

$500,000 under $1,000,000 



Returns i 






PAHTNEHSHIP PROFIT 
Grand total 

Returns with adjusted gross income, total. 

Under $600. 
$600 unc 
$1,000 I 
$2,000 > 
$3,000 I 



$1,000. 



$4,000 under $5,000.. 
$5,000 under $6,000.. 
$6,000 under $7,000.. 
$7,000 under $8,000.. 



$9,000 under $10,000.., 
$10,000 under $15,000.. 
$15,000 under $20,000., 
$20,000 under $50,000., 
$50,000 under $100,000, 



$100, 00( 

$500, oa 

$1,000,( 



adjusted gross 



$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50, 000 under $100, 000 

$100,000 under $500,000 

$500,000 under $1,000,000 

$1,000,000 or more 

letums with no adjusted gross : 



dividends reported 
interest reported o 
. from sales of capit 



1,336 
1,060 
2,810 



all amounts of wages not subject to withholding reported 
s expenses, but for 1964, the amount is a gross figure, 
n Form 1040A. For 1961, excludes dividends reported with 
Forro 1040A. For 1961, excludes interest reported with o 
1 assets reported in adjusted gross income. 



1040A. For 1955-i 



salaries and ' 



other income on page ; 



■ net of excludable 



separate schedule. 



INDIVIDUAL INCOME TAX RETURNS 1955-1964 

—NUMBER OF RETURNS, ADJUSTED GROSS INCOME, AND INCOME TAX BY STATES 



T^^^ 



NUMBER OF HETURNS 
Uiated States' 

Connecticut 

District of Columbia^ 

Florida' 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kentucky 

Louisiana 

Maine 

Maryland^ 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Nebraska 

New Hampshire 

New Jersey 

North Carolina 

Ohio 

Pennsylvania 

Rhode Island 

South Carolina 

South Daiota 

Tennessee 

Vermont 

Virginia 

Washington 

West Virginia 

ADJUSTED GEOSE INCOME (LESS DEFICIT) 
United States' 

Arkansas 

California 

Colorado 

Connecticut 

Delaware^ 

District of Columbia' 

Florida' 

Hawaii 

Idaho 

Illinois 

Kentucky 

Maine 

Maryland' 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Nebraska 

New Hapmshire 



2,183 
6,394 



2,740 
2,921 
3,025 



5,656 
1,845 



3,472 
3,960 
1,303 



2,004 
2,624 

1,155 



2,029 
2,6L2 
1,192 



8,229 
1,133 
2,527 



120 



INDIVIDUAL INCOME TAX RETURNS, 1955- 

-NUMBER OF RETURNS, ADJUSTED GROSS INCOME, AND INCOME TAX BY 



1964 

STATES- 



States 


I.. 


1956 


1957 


19. 




1.60 


1..1 


1.. 


.3 


l>c4 












f.,H,.o 














10,304 

2! 501 
17,358 

'646 

10 ; 6% 
1,042 

4,385 
4,203 
2,055 


11,135 

965 

32,208 

4,231 

16,920 

2;749 
18,815 

1,954 
672 
3,674 
11,582 
1,155 

4,752 
4,527 

5^916 


11,667 
1,111 

33,893 
4,467 

17,389 

21584 
19,514 
1,335 

2,068 
694 

12^356 
1,211 

2^491 

331 


i;i38 

34,017 

16,310 

2;836 

18,968 
1,390 

2,058 

790 

3,785 

l!282 

4^986 
2,211 


i;3i5 

37,042 
5,033 

17,921 

20; 200 
1,481 

2,324 

742 

4,003 

2^331 


lisio 

38.036 

18,472 

20^654 

2,395 

733 

4.334 

i;438 

5; 321 
2.406 
6.967 


1^385 
40,017 

'756 

18,671 
3.421 
3,186 

20,833 
1.646 

2.580 
900 

14^828 
1.606 

6,155 
5,695 
2,386 


14,926 
1,440 
41.477 

'899 

3;400 
21.759 

2,788 

15'.439 
1,639 

6^012 

'illy 


15,811 
1,496 
43,324 

"'937 

3; 698 
3,743 

2,935 
16',321 

7,129 

6,303 

630 


16,729 




1,548 
















22,099 
4,038 
4,127 










^nneylvama 








South Dakota 






5 662 




17,435 
1,887 








Virginia 


7,764 






y?^ liT^^"" 


8*309 














INCCME TAX AFTER CREDITS 


29,654 


32,706 


34,382 


34,351 


38,o53 


39 545 


42 271 


44 393 


43 200 










32 

155 
212 

355 

2,190 
775 

296 
299 

564 
1,023 
1,688 

93 
83 

3,947 
351 

2,080 

160 

325 
1,285 

460 

205 
622 

12 


32 

312 
162 

z 

385 
92 
89 

'852 

388 

1,053 
120 
97 
91 

'381 
61 

2,149 
301 

378 
1,405 

521 


38 
183 
134 

308 
727 
164 
213 

713 

101 

382 

427 
129 

1,111 

119 

109 
190 

'417 
64 

2,219 
329 
292 

2.480 
165 

180 

1,536 
123 

543 
565 

717 


194 
143 

329 

720 

231 

719 

102 

436 
362 

412 

128 

11607 

782 

224 

76 

1,539 
130 

'325 

344 

2,368 

182 

1,541 
128 

623 
237 

60 
45 


235 

167 

4,422 

359 
803 

129 
103 

'942 

375 

134 

1,283 

Bl 

'l52 
5,097 

387 
2,606 

226 

262 
68 


384 
254 

835 
851 

104 
2,951 

396 
376 
448 
148 

1,362 

1,908 

641 

884 

89 
125 

'145 

5,077 

520 

2,385 
383 

227 

269 
843 

71 


399 

275 

182 

4,955 

107 
3,124 

427 

157 

1^892 
691 

939 

110 
133 

'l57 

5,529 

578 

2,433 

2,635 
209 

509 

734 
734 

851 

72 


436 

215 
5,281 

3,306 
450 

1,252 

2^107 
707 

980 
141 

'642 
89 

2,558 
407 

'215 

613 

1,973 

62 
813 
781 


473 

232 

5,714 

1,046 
194 

1,090 

695 

118 
3,424 

435 
472 

1,073 

1,587 

2,315 

765 

217 

1,087 
130 
310 

°'705 
95 

2,738 
437 
471 

'231 

2,108 

71 
870 
828 

84 


480 


fr^?"" 


















438 


Connecticut 


1,019 










rlorida' 

Georgia 


723 
175 






iir 's 












J°"^ 


440 










^uislana 


173 


3 




Massachusetts 


1,520 


































New Jersey 


2,102 
160 












90 






Oklahoma 

Oregon 


438 

476 

2,945 


Pennsylvania 






313 


S°"th Dakota"" 










2,028 




185 








885 




751 




302 


Wisconsin 


925 


Oth'°*"areas ' 


92 







■^Includes data for "Other areas" described in footnote 5. 
^For 1962, data for Delaware are not shown separately. However, ■ 
^For 1961-62, data for District of Columbia are included in the s" 
*ror 1955, data for returns from Panama Canal Zone are included ii 
^Includes data for returns of bona fide residents of Puerto Rico, 



States totals. 



SECTION 7 



Explanation of Classifications and Terms 



CLASSIFICATIONS 

Adjusted gross income classes 

The amount of adjusted gross income reported by the 
taxpayer on his return was the basis for classifying data 
for the size of income. Deficit and a breakeven in ad- 
justed gross income were considered "No adjusted gross 
income" and appear as a separate class. Whenever tax- 
able and nontaxable data are combined by size of income, 
the nontaxable data are distributed in the class denoted 
by the amount of adjusted gross income reported, although 
when shown separately, data from nontaxable returns with 
$5,000 or more adjusted gross income are grouped in one 
class. 



Marital 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 five 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 indicated 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 were returns of married couples only one of which 
had income but, nevertheless, exemptions for both could 
be claimed. 

Separate returns of husbands and wives were returns 
of married persons, each of whom filed a return inde- 
pendent of his spouse and reported only his own income, 
exemptions, and tax. Returns with community income 
divided between husband and wife were given this clas- 
sification. Also included under this classification, were 
returns of married taxpayers electing not to file a joint 
return, but to claim the spouse's exemption where the 
spouse had no income and was not the dependent of 
another taxpayer. 

Returns of heads of household were returns of un- 
married persons (or one married to a nonresident 
alien) who furnished more than half the maintenance of 
a home which was his residence and which he shared 
with any related persons for whom he was entitled to 
the deduction for an exemption (except multiple support), 
or shared with his unmarried child, grandchild, or step- 
child even though not a dependent, or who paid over half 
the cost of maintaining a household which was the prin- 
cipal abode of his parents, if either of them qualified 
as a dependent. 



Returns of surviving spouse were returns of widows 
and widowers who indicated this status. A surviving 
spouse is a taxpayer whose spouse died during either 
of 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 taxpayer was entitled to the deduction 
for exemption. 

Returns of single persons not head of household or 
surviving spouse were those of other unmarried 
individuals. 



Returns with standard deduction or with itemized 
deductions 

Standard deduction returns included (1) Form 1040A 
returns, (2) Form 1040 returns with adjusted gross 
income under $5,000 on which the income tax was 
determined from the tax table, and (3) Form 1040 re- 
turns with adjusted gross income of $5,000 or more on 
which the taxpayer elected to use the standard deduction. 

Returns with "No adjusted gross income", classified 
as standard deduction returns in years prior to 1961, 
have been classified separately since 1961. 

Returns with itemized deductions were Form 1040 
returns with adjusted gross income against which item- 
ized nonbusiness deductions were claimed by the tax- 
payer in the computation of his taxable income. A 
relatively few separate returns of married persons 
who had neither standard nor itemized deductions were 
included in this classification because it was assumed 
that the other spouse itemized. 



Size of selected sources of income or loss 

For distributions of thenumber of returns with selected 
sources of income or loss in adjusted gross income, re- 
turns were divided into categories according to the size of 
a specific income or loss. The size intervals are nar- 
row at the lower end of the scale so that small amounts 
are adequately classified. 



States 

Classification by States was based on the district in 
which the returns were filed. Internal Revenue districts, 
or groups of districts, are identical with State bounda- 
ries, except that the District of Columbia was a part of 
the Baltimore, Maryland, Internal Revenue District. The 
Office of International Operations had charge of returns 
with addresses outside the 50 States. These returns in- 
cluded those from Puerto Rico, Virgin Islands, Panama 
Canal Zone, and returns with foreign addresses, all of 
which were classified as "Other areas." 



121 



122 

Taxable and nontaxable returns 

Taxable returns had an income tax remaining after the 
allowable tax credits were deducted. If the tax after cred- 
its was greater than zero, the return was classified as a 
taxable return. 

Nontaxable returns had no income tax remaining after 
tax credits. Some nontaxable returns had income tax 
before credits which was eliminated by the tax credits. 
Many nontaxable returns showed an amount of self- 
employment tax; however, the self-employment tax was 
disregarded for this classification. 



Taxpayers age 65 or over 

In order to distinguish returns filed by taxpayers age 
65 or over, the additional exemption for age was used 
whenever claimed on a return. In the case of joint re- 
turns of husbands and wives, some had only one addi- 
tional exemption for age 65 or over while others had 
two additional exemptions for age, indicating that both 
husband and wife were over 65 years of age. Whether one 
or two age exemptions was claimed, the return was con- 
sidered a return of a taxpayer 65 years or more of age. 



Tax rate classes 

This classification applied to the percentage rates used 
in computing income tax before credits based on the 
amount of taxable income. The class intervals coincide 
with the percentage rates of the three income tax rate 
schedules mentioned below. 

Tax rate schedules 

The three tax rate schedules designed for individual in- 
come tax apply to (1) joint returns and returns of surviv- 
ing spouse, (2) separate returns of husbands and wives 
and returns of single persons not head of household or 
surviving spouse, and (3) returns of heads of household. 
These schedules are reproduced at the end of this report. 

Type of taxpayment 

Taxpayers made prepayments toward their tax liability 
through tax withheld from wages and payments on 1964 
declarations of estimated tax. Any balance due was pay- 
able when the return was filed. Some taxpayers made no 
prepayments of tax (about one of every nine returns). 
In table 12, returns were separated into four categories 
according to the following combinations of prepayments 
of tax: (1) only tax withheld, (2) tax withheld and pay- 
ments on declarations, (3) only payments on declarations, 
and (4) neither tax withheld nor payments on declara- 
tions. The first three combinations were shown for re- 
turns with an overpayment of tax, all conibinations were 
shown for returns with tax due at time of filing, and all 
combinations were shown for returns with neither 
overpayment nor tax due. 

EXPLANATION OF TERMS 
Adjusted gross income 

Adjusted gross income was gross income from all 
sources that are subject to income tax minus (1) ordi- 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



nary and necessary expenses of operating a trade or 
business, (2) expense deductions attributable to rents and 
royalties, (3) expenses of outside salesmen attributable 
to earning salary or other compensation, (4) expenses of 
travel, meals, and lodging while away from home over- 
night paid by an employee with respect to services 
rendered, (5) transportation cost related to the perform- 
ance of services as an employee, (6) expenses for educa- 
tion required to maintain salary, status, or present em- 
ployment, (7) expenses paid or incurred in connection 
with service as an employee under a reimbursed or other 
expense allowance arrangement with the employer, (8) 
exclusion of allowable sick pay if the sick pay was in- 
cluded in gross salary, (9) depreciation and depletion 
allowed life tenants and income beneficiaries of property , 
held in trust, (10) deductible losses from sales of capital | 
assets, and other property, (11) deduction equal to 50 
percent of the excess of net long-term capital gain over 
net short-term capital loss, (12) net operating loss de- 
duction, (13) contributions to a retirement fund by the 
self-employed, and (14) reasonable expenses incurred 
in moving from old residence to new residence at new 
place of employment. 

Alternative computation of tax liability 

An alternative computation of the tax was afforded 
taxpayers on the long-term capital gains portion of their 
income. This alternative computation limited the tax on 
net long-term capital gains in excess of any net short- 
term capital losses to 25 percent. The portion of the 
income deemed ordinary income was still taxed at the 
normal tax and surtax rates. Under the alternative 
computation, half the excess described above was in- 
cluded in taxable income and the tax before credits was 
half of the included portion of the excess plus an amount 
calculated by applying the normal tax and surtax rates to 
the balance of taxable income. 

Providing there were some capital gains, the alternative 
computation of tax was advantageous if taxable income 
other than capital gains exceeded $40,000 on joint returns 
and returns of surviving spouse, $32,000 on returns of 
heads of household, or $20,000 on separate returns of 
other persons. These were the points at which the mar- 
ginal combined normal tax and surtax rates on the dif- 
ferent rate schedules exceeded 50 percent. 

Business or profession net profit or net loss 

This source was reported by individuals who were sole 
proprietors of a business or members of a profession, 
and who did not elect to be taxed as a corporation. When 
there were two or more sole proprietorship businesses 
operated by the taxpayer, the single amount of profit or 
loss included in adjusted gross income represented the 
combined profits and losses from all business activities. 
The sole proprietor was required to exclude dividends 
from the business receipts and to report them with divi- 
dend income for the purpose of dividend exclusions and 
tax credit. 

Business expenses deductible from business receipts 
included such items as cost of goods sold, salaries and 
wages paid employees, interest on business indebtedness, 
taxes on business and business property, bad debts arising 
from sales or services, depreciation, obsolescence, de- 



INDIVIDUAL INCOME TAX RETURNS FOR 



123 



pletion, casualty losses on business property, rent, re- 
pairs, supplies, advertising, selling expense, insurance, 
and other costs of operating the business. Compensation 
of the sole proprietor was not allowed as a business de- 
duction and the net operating loss deduction was not 
reported among the business expenses. 

Capital gain and loss 

Net short-term gain or loss. - -Gains and losses from 
sales or exchanges of capital assets held six months or 
less were considered to be short-term. Gains and losses 
from current year transactions were combined with (1) 
any capital loss carryover from the five preceding years, 
and (2) any net short-term gain or loss received from 
partnerships or fiduciaries to obtain the net short-term 
gain or loss. 

Net long-term gain or loss. --Gains and losses from 
sales or exchanges of capital assets held more than six 
months were considered to be long-term. Gains and losses 
from current year transactions were combined with (I) 
any net long-term gain or loss received from partner- 
ships or fiduciaries, and (2) any capital gain dividends 
received from regulated investment companies to obtain 
the net long-term gain or loss. 

Capital loss carryover from 1959- 1963. --This carry- 
over was that portion of the net capital loss sustained in 
the 5-year period preceding 1964 which the taxpayer had 
been unable to offset against either his capital gains or 
the $1,000 maximum deduction for net capital loss in 
computing adjusted gross income for tax years subse- 
quent 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. (See definition 
of "net loss from sales of capital assets" for the new 
treatment of capital losses carried over from 1964.) 
Net loss from sales of capital assets before statutory 
limitation. --This was the entire loss reported on returns 
with a net capital loss (in adjusted gross income) result- 
ing from the combination of net gains and losses, both 
short-term and long-term. The limitations applied to this 
amount are described in the definition of "net loss from 
sales of capital assets." 

Net long-term capital gain in excess of net-short term 
capital loss. --This was the entire amount of net long- 
term gain in excess of any net short-term loss computed 
for each return having these conditions regardless of 
what tax computation was used. Only one-half of the 
excess was included in adjusted gross income. However, 
since the tax on this portion of the excess cannot exceed 
50 percent, the maximum rate on the excess long-term 
gain is, in effect, 25 percent. 

One-half excess net long-term gain. --Although this 
term represents that portion of the net long-term capital 
gain included in adjusted gross income, in these statistics 
it is used only to describe the capital gains portion of tax 
base on alternatives tax computation returns. In reality, 
this amount is taxed at 50 percent which results in the 
overall effective rate on long-term gains of 25 percent. 
(See examples 2 and 3 on page 67 of section 3.) 

Net gain from sales of capital assets. --Such gain in- 
cluded 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 



and the resultant gain if long-term was reduced 50 per- 
cent. The amount of net gain in adjusted gross income 
conforms to one of several conditions, namely, (a) 50 
percent of the excess net long-term gain over net short- 
term loss occurring on certain returns, (b) on returns 
with only a net long-term gain, 50 percent thereof, (c) on 
returns with both net short- and long-term gain, the en- 
tire amount of net short-term gain combined with 50 
percent of the net long-term gain, (d) on returns with 
only a net short-term gain, the entire net gain, and (e) 
the entire excess of net short-term gain over net long- 
term loss on other returns. 

Net loss from sales of capital assets. - -This source 
reported as a component of adjusted gross income was 
the deductible loss resulting from sales or exchanges of 
property treated as capital assets. To determine the 
deductible loss, the net short-term gain or loss was 
merged with the net long-term gain or loss, and the 
excess loss was allowed to the extent of the smallest 
of (1) amount of capital loss, (2) taxable income (adjusted 
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. 

Prior to 1964, any part of the capital loss incurred in 
the taxable year which was not deductible because of the 
limitation could be carried forward for 5 succeeding 
years as a short-term capital loss to the extent that it 
was not absorbed by capital gains in the intervening 
years. Current year losses were offset against gains 
before the carryover became available. If the carryover 
was not eliminated in the 5-year period, the remain- 
ing loss could not be used. 

The Revenue Act of 1964 provided two major changes 
in the law on capital losses. A capital loss incurred in 
tax year 1964 or later years could be carried over in- 
definitely until absorbed. The loss carryover is now 
treated as a long-term or short-term loss in the years 
to which carried, depending upon its nature in the year 
incurred. 

Contributions 

Contributions deductible from adjusted gross income 
were gifts to organizations created in the United States 
or its possessions, or under its laws, and operated for 
religious, charitable, scientific, literary, or educational 
purposes exclusively, or for the prevention of cruelty to 
children or animals, and gifts to veterans' organizations 
or to governmental agencies which use the gifts for public 
purposes. Individuals who were members of a partner- 
ship also included their pro rata share of contributions 
made by their partnerships. 

Prior to 1964, the deduction for contributions generally 
could not exceed 20 percent of adjusted gross income; 
however an extra 10 percent was deductible if it con- 
sisted of contributions to churches, convention or asso- 
ciation of churches. Salvation Army, tax-exempt edu- 
cational institutions, tax-exempt hospitals, and certain 
organizations engaged in continuous medical research 
in conjunction with hospitals. 

The Revenue Act of 1964 allowed a deduction for all 
contributions up to 30 percent of adjusted gross income 
with the general exception of contributions to private 
foundations which were still subject to the 20 percent 
limitation. The new law also provided that contributions 



124 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



exceeding the 30 percent limitation (in the year paid) 
could be carried over to be deducted in subsequent 
years. 

Credit on 1965 tax 

This credit, requested on Forms 1040, was that part 
of the overpayment of 1964 tax which taxpayers speci- 
fically requested be credited to their estimated income 
tax for 1965. 

Deficit (in adjusted gi-oss income) 

This deficit occurred when the deductions allowed for 
the computation of adjusted gross income, as stated above, 
exceeded the gross income. 

Dividends in adjusted gross income 

Dividends in adjusted gross income were distributions of 
cash, property, services, accommodations, etc., by a cor- 
poration from its earnings to individual taxpayers, except- 
ing dividends not exceeding $200 per return in other in- 
come on Forms 1040A. As a result of the Revenue Act of 
1964, the maximum exclusion of qualifying dividends was 
increased to $100 per taxpayer. On joint returns, if both 
husband and wife received qualifying dividends, each ex- 
cluded up to $100 against his respective dividend income. 
All dividends qualified for the exclusion unless they fell 
under Section 116(b) of the Internal Revenue Code of 
1954. 

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, and credit unions. This type of in- 
come was considered interest for income tax purposes. 



Employee business expenses 

An employee was allowed a deduction in the computation 
of adjusted gross income for business expenses incurred 
in connection with his employment. Expenses which 
qualified included: 

(1) cost of travel, meals, and lodging while away 
from home in the performance of service as an employee, 

(2) any other expenses to the extent covered by a 
reimbursement or expense allowance arrangement with 
the employer, 

(3) business transportation costs, other than com- 
muting, and 

(4) outside saleman's expenses of soliciting busi- 
ness for his employer. 

If the employee accounted his deductible expenses to 
his employer, he was not required to report the reim- 
bursement in income, except for any amount of reim- 
bursement in excess of expenses. Likewise, he was not 
required to show the expenses on the tax return except 
those expenses in excess of the reimbursement. 

Certain employee business expenses (listed in the defi- 
nition of "Other deductions") were not deductible in the 
computation of adjusted gross income, but were deduc- 
tible as an itemized deduction in the computation of 
taxable income. 



Employee moving expenses 

A provision of the Revenue Act of 1964 allowed an em- 
ployee to deduct in the computation of adjusted gross 
income the reasonable expenses incurred in moving from 
his old residence to his new residence at his new place of 
employment. Expenses deductible included those for mov- 
ing household goods and personal effects, and the cost of 
transportation, meals, and lodging of the taxpayer and 
members of his household en route to his new residence. 

In order for a taxpayer to qualify for the deduction: 

(a) his new place of work had to be at least 20 miles 
further from his former residence than was his old prin- 
cipal place of work; and 

(b) he must have been employed on a full-time basis 
for at least 39 weeks during the 12-month period immedi- 
ately following his arrival in the general location of his 
new place of work. If at the time of filing he had not yet 
met this test, hecouldclaim the deduction, but the amount 
of the deduction was reportable as income in the next tax 
year if he subsequently failed to qualify. Otherwise, he 
could claim the deduction on an amended return after 
actually meeting the test. 

If the employer reimbursed moving expenses, any ex- 
cess reimbursement must have been included in the tax- 
payer's gross income. If the reimbursement was less 
than the expense, the taxpayer deducted the difference. 
If the reimbursement equaled the expenses, neither item 
had to be reported. 



Exemptions 

In the computation of taxable income, exemptions were 
allowed for the taxpayers and their dependents, and addi- 
tional exemptions were allowed for taxpayers who were 
65 or over and for taxpayers who were blind. 

A $600 exemption was allowed for the taxpayer, the 
taxpayer's spouse, and for each child (including a step- 
child or an adopted child) who was under 19 years of age, 
or who was a student regardless of age, if the taxpayer 
furnished more than half the support. If the child was 19 
or over and not a student, an exemption was allowed only 
if the child had less than $600 gross income for the year 
and the taxpayer furnished more than half the support. 

An exemptionof $600 was also allowed for any dependent 
who had less than $600 gross income, and who received 
more than half his support from the taxpayer if the de- 
pendent was (1) a close relative as outlined in Section 
152 of the Internal Revenue Code, or (2) 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. 

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

To qualify as a dependent, an individual must have been 
either a citizen or resident of the United States; a resi- 
dent of Canada, Mexico, the Republic of Panama, or the 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



125 



Canal Zone; or an alien child adopted by and living with 
a United States citizen abroad. 

The birth or death of a dependent during the year did 
not affect the exemption for him, if the support and other 
tests were met for the part of the year during which the 
dependent lived. 

Besides the "personal" exemption forthe taxpayer and 
spouse, an additional $600exemption was allowed for each 
taxpayer or spouse who was age 65 or over, and each 
taxpayer or spouse who was blind. A taxpayer could file 
a separate return and claim the exemptions for the 
spouse (including those for age and blindness) only if the 
spouse had no gross income and was not a dependent of 
another taxpayer. Exemptions for age and blindness were 
not allowed for any dependents. 

The total number of exemptions shown in this report 
includes a duplication of exemptions for certain individ- 
uals. These individuals were (1) dependents (of another 
individual) who had less than $600 gross income, but filed 
a return to obtain a refund of tax withheld on wages, and 
(2) child dependents (under 19 or a student) who were 
required to file a return because their gross incomes 
were $600 or more. This particular group of individ- 
uals is counted twice, as a dependent on another tax- 
payer's return, and as a taxpayer on their own return. 

Farm net profit or net loss 

This source was reported by individuals who were sole 
proprietors of a farm and who did not elect to be taxed 
as a corporation. When there were two or more sole 
proprietorship farms operated by the taxpayer, the single 
amount of profit or loss included in adjusted gross income 
represented the combined profits and losses from farm 
business activities. 

Farm business receipts included sales of market live- 
stock and produce raised and held primarily for sale and 
other farm income including such items as merchandise 
received for produce, machine work, breeding fees, wood 
and lumber, other forest products, patronage dividends, 
rebates or refunds, agricultural program payments and 
other farm items. 

Farm business expenditures deductible from farm 
business receipts were the ordinary and necessary costs 
of operating a farm for profit. These included such items 
as labor hired, feed bought, seeds and plants bought, 
machine work hired, supplies bought, tying material, 
containers, insect and disease control, machinery ex- 
pense, farm building and fence repairs, livestock ex- 
penses, fertilizer bought, veterinary, fuel, light, power, 
taxes, insurance, premiums, interest paid, rent, cash, 
hauUng hired, auto and truck, and other. 

Income tax after credits 

Tax after credits was the income tax liability exclud- 
ing the self-employment tax and was the criterion upon 
which taxable and nontaxable returns were classified. 
It was after the deduction for income tax credits, but 
prior to the year -end adjustments for tax withheld from 
wages and payments on declaration which determined 
the overpayment or tax due status. 



Income tax before credits 

In general, tax before credits was based on the taxable 
income and was computed at the prescribed rates. It was 
either (1) the regular combined normal tax and surtax 
including tax from the optional tax tables, (2) the tax 
computed under the alternative method, (3) the tax com- 
puted using the new income averaging provisions, or 
(4) tax computed by individuals affected by two sets of 
rates (those in effect prior to 1964, and those for 1964), 
before such amounts were reduced by tax credits. Tax 
before credits did not include the self-employment tax. 



Merest paid 

Interest paid was deductible for interest on personal 
debts, mortgages, bank loans, and installment purchases 
of real or personal property, but did not include that 
paid on money borrowed to buy tax-exempt securities 
or single premium life insurance and endowment con- 
tracts. Interest relating to business, royalties, and 
rentals was reported in their respective schedules. 

Interest received 

Interest received was the taxable portion of interest 
from bonds, debentures, notes, mortgages and personal 
loans, interest received or credited on bank deposits, 
savings accounts, and deposits in organizations listed 
above, as well as partially tax-exempt interest and in- 
terest from tax-free covenant bonds received directly 
or through partnerships and fiduciaries. Excluded were 
small amounts of interest (not more than $200 per return) 
reported in other income on Form 1040A returns. 

Medical and dental expense 

This deduction was allowed from adjusted gross income 
with certain limitations. Expenditures considered for this 
deduction were the actual amounts paid during the tax 
year for health care of the taxpayer, his spouse, de- 
pendents, and any other person who could be claimed 
as a dependent except for the fact that he or she had 
$600 or more of gross income or filed a joint return with 
his or her spouse. Such expenses included payments to 
physicians, surgeons, dentists, nurses, oculists, chiro- 
practors, osteopaths, hospitals, premiuni paid on health 
and hospital insurance, cost of x-rays, laboratory fees, 
diagnoses, therapy treatment, psychiatric care, dentures, 
crutches, hearing aids, and the like. Any insurance re- 
ceived on account of medical expenses incurred reduced 
the cost which could be considered as medical expenses 
actually paid by the taxpayer. 

With the exception of the special group of individuals 
mentioned below, amounts paid for drugs and medicines 
were included in medical expenses only to the extent that 
they exceeded 1 percent of adjusted gross income. The 
deduction allowed for medical expenses (including the 
excess drug expense) was the amount of such expenses 
in excess of 3 percent of adjusted gross income. 

There were special rules for any taxpayer who was 
65 years of age or over, for married couples who filed 
a joint return if either was 65 or over, and dependent 



126 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



parents 65 or over. Prior to 1964, medical expenses 
for these individuals were not limited to the excess of 
3 percent of adjusted gross income; however, the limita- 
tion on medicine and drugs was in effect. The Revenue 
Act of 1964 removed the 1 percent limitation for these 
individuals, so that all their expenses were deductible 
for 1964. 

The maximum deduction allowed was $5,000 multiplied 
by the number of exemptions other than those for age and 
blindness, but could not exceed $20,000 for husband and 
wife filing a joint return, for head of household, or for 
surviving spouse, nor could it exceed $10,000 for other 
single persons or for married persons filing separate 
returns. 

If the taxpayer was 65 years of age or over and dis- 
abled and was head of household, surviving spouse, or 
other single person, or married but filing a separate 
return, a maximum deduction not in excess of $20,000 
was allowed. On joint returns, if only one spouse was 
65 years or over and disabled, the maximum was still 
$20,000. If both were 65 or over and both disabled, the 
maximum allowed was $40,000, but not more than 
$20,000 medical expense for each could be taken. 

Net gain or loss from sales of property other 
than capital assets 

The amount of this source in adjusted gross income 
resulted from sales or exchanges of property which was 
either not a capital asset or was not treated as a capital 
asset. It includes net loss from section 1231 property. 
Each taxpayer included his share of such gain or loss 
received through partnerships and fiduciaries. Net gain 
from these transactions was included in its entirety and 
the net loss was fully deducted in computing adjusted 
gross income. Losses on sales or exchanges of small 
business investment company stock were ordinary losses 
rather than capital losses. Also, losses on small busi- 
ness stock were ordinary losses to the original holders; 
however, this ordinary loss is limited to $25,000 on 
separate returns and to $50,000 on joint returns. 

Net income or loss from rents 

This source, although reported in a schedule that in- 
cluded royalty income, was separated from the latter in 
order that each source might be shown independently. 
Rent income (or loss) constituted a part of adjusted 
gross income to the extent that the gross rents received 
exceeded the deductions for depreciation, repairs, main- 
tenance, interest, taxes, commissions, advertising, fuel, 
insurance, janitor service, and other allowable expenses 
related to the rented property. Income from rents when 
combined with income from royalties will not be equiva- 
lent to the rents and royalties income published prior 
to 1960 due to the different procedure for arriving at a 
net figure. 



Net income or loss from royalties 

This income or loss was separated from the rent 
income so that the net income from royalties reported 
in adjusted gross income would be known. Gross royal- 
ties included revenues from oil, gas, and other mineral 



rights, revenue from patents, copyrights, on literary 
works, trademarks, formulae, and so on. Deductions 
against gross royalties were made for depletion, depreci- 
ation, office rent, legal fees, clerical help, interest, 
taxes, and similar items. As stated above, income from 
royalties when combined with income from rents will not 
be comparable with income from rents and royalties for 
years prior to 1960. 

Normal tax and surtax 

The income tax imposed upon the taxable income of 
individuals by the Internal Revenue Code of 1954, as 
amended by the Revenue Act of 1964 is divided into two 
sections. The first section is a normal tax of 3 percent 
of taxable income. All taxpayers with taxable income pay 
the first part of their tax liability at this rate. The second 
section of the income tax is the surtax which is levied on 
a scale graduated in relation to size of taxable income. 
To facilitate computation, the normal tax and surtax rates 
are combined in the tax tables furnished the public. 

Ordinary gain from sales of depreciable property 

Included here was that portion of gain not treated as 
capital gain from sales of depreciable property specified 
in Sections 1245 and 1250 of the Internal Revenue Code. 
The first section provides that gain from sales of certain 
depreciable property (which prior to 1962 was all treated 
as capital gain) was taxable as ordinary income to the 
extent of depreciation deducted after 1961. The property 
covered included depreciable property (other than live- 
stock) which was either personal property or other 
tangible property (not including a building or its struc- 
tural components) used as an integral part of (a) manu- 
facturing, (b) production, (c) extraction, or (d) the fur- 
nishing of transportation, communications, electrical 
energy, gas, water, or sewage disposal services. Such 
other tangible property also included research facilities 
used in connection with the activities in (a) - (d) above. 
For 1964, elevators and escalators were added to section 
1245 property. 

The second section, applicable to taxable years begin- 
ning in 1964, covered intangible real property (such as a 
leasehold of land) and such tangible property as buildings 
and their structural components. The amount of gain 
treated as ordinary income was an applicable percentage 
of the lower of (a) the gain realized, or (b) the excess of 
depreciation deductions claimed after 1963 over what 
would have been taken under the straight line method. 
The applicable percentage was 100 percent minus one 
percentage point for each full month the property was 
held over 20 full months. Thus, the applicable percent- 
age, and consequently the amount taxable as ordinary 
income, decreased the longer the property was held and 
was nonexistent after ten years. However, if the property 
was held one year or less, the entire depreciation (not 
the excess over straight-line) was treated as ordinary 
income. 

Other deductions 

Included here were all other nonbusiness deductions 
allowed against adjusted gross income not elsewhere 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



127 



reported. These included the limited deduction for cost 
of child care in the case of employed women and widow- 
ers; loss from theft; casualty losses resulting from fire, 
storm, or 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 items were alimony paid; expenses incurred in 
the collection of income or for the management, con- 
servative, or maintenance of property held for the 
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; ex- 
penses connected with taxpayer's employment, for ex- 
ample, dues to unions or professional societies, cost of 
tools and supplies for the job, and fees to employment 
agencies; allowable expenses of taxpayer in connection 
with his employer's business; and unreimbursed expense 
of education undertaken to maintain or improve skills 
required to perform duties of present employment status. 

Other gain from sales of depreciable property 

The excess gain, not treated as ordinary gain, from 
sales of property specified in Section 1245 or 1250 of 
the Internal Revenue Code. This gain was included with 
section 1231 gain and loss. If the net result was a gain, 
all such gains and losses were treated as capital gains 
and losses. If the net result was a loss, all gains and 
losses were treated as gains and losses from sales of 
property other than capital assets. See definition of 
Ordinary gain from sales of depreciable property. 

Other sources of income 

Included here were such items as alimony received, 
prizes, awards, sweepstakes winnings, gambling profits, 
recovery of bad debts and taxes deducted in a prior year, 
insurance received as reimbursement for medical ex- 
penses taken in a previous year, the taxpayer's share of 
distributed or undistributed current year taxable income 
(exclusive of long-term capital gain) received from a 
small business corporation which elected not to be taxed 
as a corporation, net operating loss deduction where that 
item is not shown separately, net income or loss from 
estates and trusts and any other income subject to tax 
for which no entry was providedon the return form. Also 
included is a total of $188,021,000 consisting of interest, 
and dividends in adjusted gross income (not exceeding 
$200 per return) reported on 2,822,000 returns. Form 
1040A. 

Other tax credits 

Included in "Other tax credits" for this year was the 
dividends received credit. The Revenue Act of 1964 pro- 
vided for a decrease in, and the ultimate elimination 
(1965) of this tax credit. The credit was 2 percent of 
qualifying dividends in adjusted gross income with certain 
limitations. Prior to 1964, the credit had been 4 percent. 

Two additional tax credits against income tax were 
those for partially tax-exempt interest and for tax paid 
at source on interest from tax-free covenant bonds, but 
allowed only if nonbusiness deductions were itemized. 
The remaining credit included here was the "throwback 



tax credit" allowed the recipient of an accumulation 
distribution from a complex trust, whether claimed on 
a standard or itemized deduction return. 

The 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 item- 
ized deduction for amortization of bond premium on the 
bonds. However, the credit could not exceed the smaller 
of (1) 3 percent of the taxable income, or (2) income tax 
reduced by credits for foreign tax paid and for dividends 
received. 

Tax credit was allowed for tax withheld at source on 
tax-free covenant bond interest. The issuing corpora- 
tion withheld as tax 2 percentof the total interest earned. 
The taxpayer also included his share of this tax credit 
allotted to him through partnerships and fiduciaries. 

The throwback tax credit was the recipient's pro rata 
share of taxes paid by a complex trust in preceding tax 
years which would not have been payable by the trust 
had the trust in fact made distributions of income cur- 
rently to the beneficiaries. Income tax paid on accumu- 
lation distributions deemed distributed in prior years 
was not refunded to the trust but was allowed as a 
credit against the income tax liability of the recipients. 
Credit in excess of the total tax was treated as an over- 
payment and as such was refundable. 

0\'erpayment 

An overpayment of tax occurred when the sum of the 
tax withheld and payments on declaration exceeded the 
combined income tax after credits and the self- 
employment tax. Overpayment on Form 1040A gave rise 
to a refund. On Forms 1040, overpayment could be elected 
as a refund, or as a credit on the subsequent year's esti- 
mated tax, or could be requested as part refund and part 
credit on the estimated tax. 

Partnership net profit or net loss 

Partnership net profit or 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 taxpayer's profit or loss from such a 
partnership was his share of the ordinary income or loss 
of the enterprise together with 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 in adjusted gross 
income was the combination of all his shares, whether 
actually received or not. 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 convenant bonds, and partially tax- 
exempt interest. The partner's share of each of these 
items was reported by him in its respective source. 

Payments on 1964 declaration of estimated income tax 

Such payments were reported on returns. Form 1040. 
The payments, received with the 1964 Declaration of 
Estimated Income Tax, Form 1040ES, also included any 
credit which was applied against the estimated tax by 
reason of an overpayment of the 1963 tax liability. 



128 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Pensions and annuities 

Pensions and annuities were the taxable portion of 
amounts received during the year. The full amount of a 
pension or annuity received by a retired employee who 
contributed nothing toward the cost was taxable. If the 
annuitant contributed to the cost, methods were provided 
for computing the taxable amount to be reported. The 
method used depended upon the type of pension or annuity 
but, in general, an exclusion of a portion of the receipts 
was provided as recovery of cost. 

Refund 

A refund of tax included the portion of overpayment 
requested as refund by taxpayers filing Forms 1040, 
and all overpayments on Form 1040A. The refund could 
be requested in cash or United States Savings Bonds, 
Series E (with any excess over the bond price being 
refunded in cash). When bonds and cash were both 
checked on the return, the refund was made entirely in 
cash. The refund had to be at least $18.75 before the 
bond election could be made. 



Salaries and wages (gross) 

Gross salaries and wages were amounts of compensa- 
tion for personal services reported in adjusted gross 
income. In addition to actual salaries and wages, this 
source is comprised of commissions, bonuses, tips, 
fees, excess reimbursement over employee business 
expenses, and the value of nonmonetary payments for 
services, e.g., merchandise, accommodations, property, 
etc. Excluded from this source were tax exempt portions 
of salaries earned abroad. 

In earlier editions of this report salaries and wages 
are net of excludable sick pay and certain expenses con- 
nected with employment that were deductible from total 
salaries and wages in computing adjusted gross income. 
In addition, salaries and wages not in excess of $200 and 
not subject to withholding, reported by taxpayers filing a 
Form 1040A, were included in Other sources of income. 

Self- employment pension deduction 

Beginning in 1963, self-employed individuals could con- 
tribute to a qualified retirement plan in much the same 
manner as a corporate employee and could deduct such 
contributions when computing adjusted gross income. 

In general, all self-employed individuals currently sub- 
ject to the self-employment tax were eligible for this de- 
duction. For purpose of the deduction, self-employed 
individuals were further distinguished by the law as being 
employees or owner-employees, the latter being a sole 
proprietor of an unincorporated trade or business, or a 
partner who owns more than 10 percent of either the capi- 
tal interest or the profits interest in the partnership. 

The amount of the allowablededuction was measured by 
earned income. An owner-employee might contribute an- 
nually to a pension plan 10 percent of his earned income, 
or $2,500, whichever was the lesser. The deduction itself 
was limited to 50 percent of the contribution but could not 
exceed $1,250. Self-employed individuals other than 
owner-employees were not bound by the $2,500 limit on 
contributions, but they were subject to the same limita- 
tions regarding the amount of the deduction. 



One further limitation was imposed on owner- 
employees. If they wished to participate in a retirement 
plan, all employees (excluding part-time and seasonal) 
with 3 or more years of service must also have been 
included in the plan. 

Self-employment tax 

This tax was reported by each individual who had self- 
employment income of at least $400 derived from solely 
owned trade or business and from his share of partner- 
ship profits even though these enterprises elected to be 
taxed as corporations. Citizens employed by foreign 
governments or international organizations were sub- 
jected to self-employment tax on salaries for 1960 and 
subsequent years. Certain types of income and deduc- 
tions were not allowed in computing self-employment 
earnings, such as investment income, capital gain or 
loss, net operating loss deduction, and casualty losses. 
The maximum amount subject to social security self- 
employment tax for 1964 was $4,800 although this maxi- 
mum amount was reduced by the amount of wages re- 
ceived on which the social security employee tax had 
been withheld by an employer. The maximum tax payable 
was $259.20. No exemption was allowed against the self- 
employment income subject to tax and no tax credits ap- 
plied to this tax. The self-employment tax rate for 1964 
was 5.4 percent. This tax was paid regardless of the 
taxpayer's age and even though Social Security benefits 
were received by the taxpayer. 

Sick pay exclusion 

An employee was allowed to exclude from income 
amounts received under an employer provided wage con- 
tinuation plan for periods of absence due to injury or 
sickness. Prior to 1964, the exclusion could not exceed 
$100 a week, and if the absence was due to sickness, 
the exclusion was available only after seven consecutive 
calendar days of absence (unless the employee was hos- 
pitalized for one day during that absence). In the case of 
personal injury, there was no 7-day waiting period. 

The Revenue Act of 1964 tightened the limitations on the 
amount of sick pay excludable. If an employee received 
over 75 percent of his weekly rate of wages for absence 
due to injury or sickness, there was a 30-calendar day 
waiting period before the exclusion was available. The 
amount to be excluded thereafter was limited to a rate not 
to exceed $100. However, if the employee received 75 
percent or less of his weekly rate of wages, the waiting 
period was only 7 calendar days, but the exclusion for 
the first 30 consecutive calendar days of absence was 
limited to a rate not to exceed $75 a week. After 30 days 
the weekly rate of exclusion was increased to an amount 
not to exceed $100 a week. There was no exclusion for 
the waiting period regardless of whether the employee 
was sick or injured, unless he was hospitalized for at 
least one day during the period of absence. 



Standard deduction 

A taxpayer was allowed a standard deduction in lieu of 
itemizing his deductible personal expenses. The taxpayer 
elected the larger of the regular 10 percent standard de- 
duction or the minimum standard deduction (new for 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



129 



1964). The "regular" method was 10 percent of adjusted 
gross income, and the minimum standard deduction was 
$200 ($100 for married filing separately) plus $100 for 
each allowable exemption. In neither case could the de- 
duction exceed $ 1 ,000 ($500 for married filing separately). 
Taxpayers who selected the so-called "optional tax 
table" did not report an amount of standard deduction, 
as the deduction was already built into those tables. For 
statistical purposes, a standard deduction was computed 
for those taxpayers using the larger of the two methods 
explained above. 

Taxable income 

This measure was adjusted gross income minus deduc- 
tions, standard or itemized, and personal exemptions; 
however, the amount shown in this report is only the 
positive amount upon which the income tax before cred- 
its was computed. Whenever taxable income was a nega- 
tive amount (producing no tax), it was disregarded. This 
occurred on some, but not all, nontaxable returns. 

Taxable income was reported on itemized deductions 
returns, and on standard deduction returns with $5,000 
or more adjusted gross income, and transcribed if it 
was a positive amount. Taxable income was mechanically 
computed for each return which did not show this item, 
but disregarded if found to be a negative amount. Re- 
turns which did not show taxable income were (1) those 
Form 1040 and 1040A returns with adjusted gross in- 
come under $5,000 on which the tax table was used, 
and (2) those Form 1040A returns with adjusted gross 
income of $5,000 under $10,000 on which the tax was 
computed by the taxpayer using the standard deduction 
and regular tax rates in a tax computation schedule that 
he retained. The taxable income was not required to be 
transferred to the card-form itself. 

Taxable income for taxpayers who used the tax table 
was computed by (1) using the midpoint of the income 
bracket of the tax table into which the taxpayer's ad- 
justed gross income fell as the amount of adjusted gross 
income, (2) providing a 10 percent standard deduction 
based on the midpoint, and (3) allowing $600 for each 
exemption claimed. This formula produced the amount 
of taxable income upon which the taxpayer's tax was 
based by way of the tax table. 

Taxable income for taxpayers using Form 1040A with 
adjusted gross income of $5,000 under $10,000 was com- 
puted by (1) using the total income reported, (2) deduct- 
ing 10 percent of the total income as standard deduction 
but limited to $1,000 or $500 in the case of a separate 
return of husband or wife, and (3) allowing $600 for each 
exemption. This formula provided the amount of taxable 
income used by the taxpayer in his retained tax compu- 
tation schedule. 

Tax credit for foreign tax paid 

Tax credit for foreign tax paid was permitted against 
the income tax only if nonbusiness deductions were item- 
ized and the foreign tax was excluded from those deduc- 
tions. The credit related to the income 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. 

Tax credit for investment in certain depreciable 
property 

The investment credit was 7 percent of a taxpayer's 
qualified investment in new and used tangible personal 
property and certain other tangible property which had 
a useful life of over 8 years. The cost or basis was re- 
duced by (1) one third if the useful life was at least 6 
years but less than 8 years.or (2) two thirds if the useful 
life was at least 4 years but less than 6 years. The cost 
or basis was reduced 4/7 if the investment was in public 
utility property. If the tax liability exceeded $25,000 the 
tax credit was limited to $25,000 plus 25 percent of the 
tax liability over that amount. Tax liability, for this 
purpose was reduced by (1) the foreign tax credit, (2) the 
credit for partially tax-exempt interest, (3) the retire- 
ment income credit before figuring the limitations on the 
investment credit and (4) the dividends received credit. 

Tax credit for retirement income 

A credit for retirement income was allowed an indi- 
vidual if he received earned income of more than $600 
in each of any 10 calendar years prior to the tax year 
for which the credit was computed. Prior to 1964, the 
credit was 20 percent applied to the lesser of (1) retire- 
ment income received during the year, or (2) $1,524 
reduced by amounts of social security, railroad retire- 
ment, or other tax-exempt pensions. Amounts of earned 
incom.e also reduced the $1,524 limitation on the base of 
the credit. This latter reduction depended on the amount 
of earned income and the age of the taxpayer. 

The Revenue Act of 1964 introduced changes to the 
maximum amount of the credit and its computation. The 
percentage to be used in the computation of the credit 
was reduced to 17 percent (in line with the overall tax 
rate reduction). If husband and wife filed a joint return 
and both were 65 or over, they could elect an alternative 
credit computation which provided a $2,286 limitation on 
the base of the credit. 

The credit, however computed, could not exceed the 
income tax reduced by (1) the credit for tax withheld 
at source on tax-free covenant bonds, (2) the foreign 
tax credit, (3) the dividends received tax credit, and 
(4) the credit for partially tax-exempt interest. 

Tax due at time of filing 

This amount was reported on returns where the tax 
withheld and the payments on declaration (together 
with other items reported with them) plus the income 
tax credits were insufficient to cover the total of both 
the income tax before credits and the self-employment 
tax. The balance of tax due was paid when the return 
was filed. 



Taxes 

Taxes allowed as a deduction from adjusted income 
included personal property taxes. State income taxes, 
certain State and local retail sales taxes. State gasoline 



130 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



taxes, 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 improve- 
ments that tended to increase the value of the property. 
Federal taxes were not deductible. Taxes paid on busi- 
ness property were reported in schedules for business, 
rents, and royalties. 

For 1964, State and local taxes on motor license plates, 
driver's licenses, cigarettes, tobacco and alcoholic bev- 
erages were not deductible. 

Tax from recomputed prior year investment credit 

The investment credit provisionsof the tax law included 
a so-called "recapture rule" which required taxpayers to 
pay back all or a portion of any credit taken on property 
disposed of before the end of its useful life. The law 
specified that if property qualifying for the credit was 
disposed of before the end of its estimated useful life, the 
tax for the year of disposal was increased by the differ- 
ence between the credit originally allowed and the credit 
that would have been allowed if the computation had been 
based on a shorter useful life. 



Tax rates 

The reduction in income tax rates for 1964 was one of 
the important changes made by the Revenue Act of 1964. 
The new rates ranged from 16 percent on the first $500 
of taxable income to 77 percent on taxable income in 
excess of $200,000 for individuals other than heads of 
household (in which case the 16 percent rate applied to 
the first $1,000). 

Prior to 1964, the first bracket rate was 20 percent 
which was applied to (1) the initial $2,000 taxable income 



for single persons and heads of household, and (2) the 
initial $4,000 for joint and surviving spouse taxpayers. 
The 1964 Act divided the old first bracket of $2,000 tax- 
able income into four rate brackets of $500 each for 
single taxpayers, and into two rate brackets of $1,000 
each for heads of household. On joint returns and re- 
turns of surviving spouse, the old first bracket of 
$4,000 taxable income was split into four rate brackets 
of $1,000 each. 

Taxpayers with income under $5,000 and who elected 
the standard deduction used an optional tax table to de- 
termine their tax. The 1964 Act replaced the old single 
optional tax table with five separate tax tables. The tax- 
payer selected the table which applied to his marital 
status (for tax purposes) and which gave him the lowest 
tax based on either the regular 10 percent or minimum 
standard deduction. 

Tax witheld 

The tax withheld included the income tax withheld 
from salaries and wages by employers, the income tax 
paid by regulated investment companies on undistributed 
capital gain, and the excess withholdingof social security 
employee tax. These items were considered to be tax- 
payments. The amount of income tax withheld by em- 
ployers from wages subject to income tax withholding 
was withheld as prescribed in withholding tables or by 
the exact computation method and could have been in- 
creased by agreement between employer and employee. 
The basic withholding rate was 14 percent for most of 
the tax year 1964. Income tax on capital gain retained 
by regulated investment companies was paid by the com- 
pany and the taxpayer allotted his pro rata share of the 
tax paid. 



SECTION 8 

Sources of Data, Description of the Sample 
and Limitations of the Data 



TABLE CONTENTS 

Text Tables 

T. Noncalendar year returns (Forms 1040 with taxable years beginning on or 
before December 31. 1963 and ending on or after January I, 1964)- 
Selected sources of income and loss, taxable income, and tax items, by 
adjusted gross income classes. 131 

U. Number of returns by form of return: 1963 and 1964. 132 

V. Number of individual income tax returns filed, number in sample, and the 
prescribed rate by sampling stratum. 1964. 133 

W. Relative sampling variability at the one standard deviation level for 
selected items, by adjusted gross income classes. 133 

X. Relative sampling variability at the one standard deviation level of esti- 
mated number of returns. 133 

Y. Relative sampling variability at the one standard deviation level: Total 
number of returns, adjusted gross income, and selected items, by ad- 
justed gross income classes, 134 



SOURCES OF DATA 

Individual income tax data were estimated from a 
sample of unaudited tax returns, Forms 1040 and 1040A, 
filed by citizens and residents during the calendar year 
1965 in the district offices of the Internal Revenue Serv- 
ice, and with the Director of International Operations in 
the National Office. The sample was designed to repre- 
sent all returns for the income year 1964 regardless of 
when filed. Most of the returns were filed by taxpayers 
with calendar-year accounting periods, but a small num- 
ber did have noncalendar-year accounting periods. 

Table T shows selected income and tax data for non- 
calendar year returns (Forms 1040 with taxable years 
beginning on or before December 31, 1963, and ending 
on or after January 1, 1964). The 43,000 noncalendar 



Grand tot 


■^ 






$5,000 under 
$10,000 under 
$15,000 under 
$20,000 under 
$50,000 under 
$100,000 unde 
















$1,000,000 or 






' 


Returns $10,000 




or more 



48,064 
154,271 
72,581 
46,671 
6,618 
31,252 

'38,739 

36,545 

4C»,-.-71 



Taxable returns, total 

Under $5,000 

$5,000 under $10,000 

$10,000 under $15,000 

$15, 000 under $20, 000 

$20, 000 under $50,000 

$50,000 under $100,000 

$100,000 under $500,000 

$1,000,000 or more '. 

Nontaxable returns, total ^ 

Returns under $5,000^ 

Returns $5,000 under $10,000 

Returns $10,000 or more 

See text for "Description of the Sample and Lijnitations of 

'Adjusted gross income less deficit. 

^Includes returns with no adjusted gross income. 

^Estimate is not shovm separatley because of high sampling 

'Less than $500. 

NOTE; Detail may not add to total because of rounding. 



3,390 
2,616 
4,930 



3,141 
3,830 
2,268 



18,865 
2,859 
20,046 



Data" and "Explanatio 
lability. However, th 



of Classifications i 



are included ; 



the appropriate 



131 



132 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



year returns showed $517 million of adjusted gross in- 
come. Taxable income amounting to $377 million was 
reported on 29,000 returns. Over half the returns, 
23,000, had sole proprietorship (nonfarm) net profit or 
loss. About 12,500 returns showed farm net profit or 
loss, and there were 8,000 returns with partnership 
net profit or loss. 

Since new tax rates were in effect for 1964, a tax- 
payer having a taxable year beginning in 1963 and end- 
ing in 1964 had to prorate his tax to encompass the 
change in rates. The taxpayer computed his tax under 
both the old law and the new law. He then prorated the 
■vo tax figures on the basis of the number of days for 
le taxable year within 1963 and 1964, respectively. The 

final" tax was the sum of the prorated amounts. 

Noncalendar year taxpayers reported tax liability of 
$117 million, 95 percent of which was attributable to 
returns with income of $10,000 or more. 

Tentative returns were excluded from the sample. 
Returns with no information regarding income and tax 
were included in the sample for purposes of obtaining a 
count of returns filed, but were excluded from the tables. 
Amended returns were included in the sample only if the 
original could be located and excluded. 

An individual income tax return was required of (1) 
every citizen, resident alien, and bona fide resident of 
Puerto Rico under 65 years of age (including minors) who 
had $600 or more of gross income for the year, (2) every 
citizen or resident 65 years or over who had $1,200 or 
more gross income for the year, and (3) every person 
regardless of age or gross income who had self- 
employment income of $400 or more during the tax year. 
Gross income, for purposes of filing, included income 
earned from sources outside the United States, even 
though the income was exempt from tax. However, in the 
case of individuals who were residents of Puerto Rico, 
gross income, for purposes of filing, did not include in- 
come derived from sources within Puerto Rico except 
amounts received for services performed as an employee 
of the United States. 

Individuals who had tax withheld from wages, but whose 
income was less than that required for filing, usually 
filed to obtain a refundof tax withheld, although they were 
not otherwise required to file. 

Taxpayers had a choice of two return forms for report- 
ing their income for 1964. Form 1040A, the card-form, 
was available to individuals who had less than $10,000 
adjusted gross income consisting of wages reported on 
withholding statements (Form W-2) and not more than 
$200 of dividends, interest, and wages not subject to 
income tax withholding. 

The Form 1040 was a two-page form with supplementary 
schedules. If an individual's income was entirely from 
salaries and wages he needed only to file the principal 
two-page form. If, in addition to salaries and wages, an 
individual had only interest income, he could also file the 
two-page form with an attachment listing the sources of 
his interest income. Individuals who had income from 
sources other than salaries and wages and interest were 
required to report that income on supplementary sched- 
ules. 

Table U presents a comparison of the number of re- 
turns for the current year with those for 1963 by form of 
return filed, size of adjusted gross income, and type of 



Table U.— NUMBER OF RETURNS BY FORM OF RETURN: 

[Taxable and nontaxable returns I 


1963 AND 


1964 


Fonn ol' return, type of Seduction and 
income group 


1963 


1964 


Change, 
1963 to 
1964 




(1) 


(2) 


(3) 


Grand total 








«ith standard deduction 


'i3i;992 
24,913,559 


'432; 317 
25,956,507 

17,686,195 








Standard deduction returns on which tax table was 




Form 104QA 


120,994 






17,565,201 
14,618,406 

46,378,035 


17,686,195 
14,759,192 
2,927,003 

47,689,406 


120,994 
140,786 






ISSJ^ 










19,159,515 
19,101,018 

17,792,221 
10,295,153 
5,693,685 
1,803,383 
28,153,822 
8,432,370 

6| 314^119 
431,992 


18,234,740 
19,980,057 

9,474,609 
20,347,498 
11,197,315 

5,915,412 

26,909,591 
6,605,103 

13,064,645 

7,239,638 

432,317 




Adjusted gross income $5,000 under $i6,66b 


879,039 




' ' 






Adjusted Iross income $5,000 under $16,000 

Adjusted gross income $10,000 or more 


1,221,727 
431,388 




-1,827,262 
-342,688 


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









See text for "Description of thi 
f Classifications and Terms." 

^Taxpayers witw adjusted gross : 
nly by using the tax table . 

NOTE: Detail may not add to to' 



Sample and Limitati( 



Data" and "Explanation 
tne standard deduction 



deduction reported. Forms 1040 for 1964 numbered 47.7 
million, an increase of 1.3 million returns over 1963. 
Forms 1040A numbered 17.7 million, an increase of 121 
thousand returns over 1963. 

The standard deduction was elected on 38.0 million 
returns, Forms 1040 and I040A. Individuals who had in- 
come under $5,000 and desired the standard deduction 
were required to use the optional tax table to obtain the 
deduction and compute their tax. There were 26 million 
returns of taxpayers using the optional tax table for 
1964, one million more than for 1963. 



DESCRIPTIONS OF THE SAMPLE AND LIMITATIONS 
OF THE DATA 

The data presented for individual income tax returns 
for 1964 are estimates based on a stratified systematic 
sample of all Forms 1040 and 1040A filed in the succeed- 
ing year. The total sample consisted of 473,445 returns, 
about 0.72 percent of the total number filed for the year. 



Sample Selection 

Returns were grouped by type of return, presence or 
absence of business income, size class of adjusted gross 
income, taxpayment status, and by the 58 district offices 
and the Office of International Operations in Washington, 
D. C, The grouping procedures were employed to facili- 
tate the processing of returns for revenue collection 
and audit purposes. 

For sample purposes, the groups were combined in 
sample strata, primarily on the basis of adjusted gross 
income which correlates well with the principal income 
and tax characteristics being estimated. 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



133 



(Taxable and nontaxable 


etumsl 






Sampling stratun 


Number of 
returns 


Number of 

returns 
in sample 


sapling 




(1) 


(2) 


(3) 




65,735,470 


473,445 








Form lOiOA 

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

Nonbusiness 


17,765,316 

30,444,292 
7,847,514 
7,184,498 
1,727,220 
83,659 
258,499 

19,598 
'l65 


35,477 

60,924 
77,847 

33^964 
20,173 
62,693 

19,598 

17,024 

'l65 


2/1000 
2/1000 




2/100 
2/100 
25/100 
25/100 


$10,000 under $30,000, Schedules C and F 


$30,000 under $100,000, Schedules and F 

$100,000 and over: 


Schedules C and F 

Prior year delinquent: 


1/1 
1/100 











The sample was obtained by withdrawing returns from 
each stratum in accordance with the sampling rate for 
that stratum using a selection form designed especially 
for that stratum. The selection form used the document 
number of the return as a basis for selection. 

Table V shows the number of returns filed, the number 
of returns in the sample, and the prescribed sampling 
rate by sampling strata. 



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 re- 
ceived from each sampling stratum into the total num- 
ber of returns filed in that stratum. For instance, the 
"weighting factor" of 500,77 for Form 1040A returns 
was obtained by dividing the total number of returns filed, 
17,765,816, by the number of returns in the sample, 
35,477. The primary sources of data on total number of 
returns were counts made and submitted by the district 
offices and the Office of International Operations showing 
the number of Form 1040 and 1040A returns filed during 
the calendar year 1965, 

A comparison of the estimated number of returns 
shown in the national tables of this report with the num- 
ber of returns reported filed in the district offices, as 
shown in table S, will disclose slight differences. These 
differences occur for the following reasons: (1) an esti- 
mated 410,000 returns were excluded from the tables 
because they showed no income information, (2) 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) weights were 
rounded. 

One set of weighting factors was used for national 
tabulations, and separate sets, one for each Internal 
Revenue district, were used for State tabulations. The 
achieved sampling rates varied sufficiently among dis- 
tricts to warrant using district weights for State tables. 
As a result, the totals for "United States" in the State 
tables show slight difference from the corresponding 
totals, based on national weights, shown in other tables 
of this report. 












~ 


Sales of capital assets 




All rcouiu.. 


Net gain 


Net loss 


Adjusted gross income 
classes 


Adjusted 
gross 


Relative 
sampling 

bility 




sampling 
varia- 
bility 


Amount 


Relative 
'^ria"^ 
(Ferctnl) 




(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


Returns under $5,000... 


76,643,132 

164,487,867 
155,528,831 


0.33 

0.32 
0.14 


1,019,859 
6,764,004 


2.23 

2.62 

0.67 


253,774 

289,932 
426,286 


3.02 


Returns $10,000 or more 




Interest received 


............ 


Income ta 
credi 


< after 


Adjusted gross income 


,r^.„. 


Relative 
bllity 


Amount 


Relative 
sampling 

bilitj 


Amount 


"^rii"^ 
bility 




(7) 


18) 


(9) 


(10) 


(11) 


(12) 


Returns under $5,000... 

$10,000..! 

Returns $10,000 or more 


3,012,131 

2,739,301 
4,373,193 


1.31 

0.48 


28,140,773 

90,537,348 
111,190,955 


0.37 


4,668,445 

15,944,111 
26,540,300 


0.51 
0.15 



Sampling Variability 

The data from returns showing adjusted gross income 
of $100,000 or more are not subject to sampling vari- 
ability since all suchreturns were included in the sample. 
However, the estimates which include data from returns 
showing adjusted gross income under $100,000 are sub- 
ject to sampling variability. Table W shows, for selected 
amount estimates, the range in percent which would not 
be exceeded in 2 out of 3 estimates based on similar 
sampling systems. 

Table X shows, for frequency estimated in general, a 
conservative range in percent that would not be exceeded 
in 2 out of 3 estimates, prepared from similarly selected 
samples. Sampling variability patterns are presented 
separately for three adjusted gross income classes. 
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 vari- 
ability will be less than 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 vari- 
ability of this estimate will be less than 2,2 percent. 





Returns uith adjusted gross income 


Estimated number of returns 


$10,000 


$10,000 under 
$50,000 


$100, ocS '"' 




(1) 


(2) 


(3) 




fl-TC^O 


1,000 


'1) 

32 

14 


10 
l!4 
















Islooo 
















100, 000 

























134 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



Data have been deleted from the tables where the esti- 
mated relative sampling variability was judged to be 
excessive. Where s{uch a deletion has been made, the 
applicable cells have been appropriately footnoted. Table 
Y shows the estimates and corresponding relative sam- 
pling variabilities for selected items by adjusted gross 
income classes. 



Response and Other Nonsampling Errors 

In processing returns for collection purposes and, 
later, in processing the sample of such returns for sta- 
tistical purposes, several steps were taken to reduce 
taxpayer-reporting errors and other errors introduced 
in data processing operations. Over 90 percent of all 
individual returns filed during 1965 were mathematically 

ADJUSTED GROSS INCOME, AND SELECTED ITEMS, 



Relative 
sajnpling 
variability 



Relative 

sajnpling 

variability 



Grand total 

Taxable returns, total 

$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000... 

$20,000 under $50,000 

$50,000 under $100,000... 
$100,000 under $500,000. . 
$500,000 under $1,000,001 
$1,000,000 or more 

No adjusted gross income. 

Under $600 

$600 under $2,000 

$2,000 under $5,000 

$5,000 under $10,000 

$10,000 or more 

Returns under $5,000 

Returns $5,000 under $10, 0( 
Returns $10,000 or more 



145,401 
197,704 
232,121 
244,377 
251,392 
297,232 
259,735 



929,885 
2,951,058 
1,771,274 
1,74S,469 



76,643,132 
42 1&4,4S7,867 
19 155,528,831 



1,726,034 
1,594,906 
2,345,820 



Adjusted gross 



Relative 

sampling 

variability 



Taxable income 



Relative 
variability 



Grand total , 

Taxable returns, total 

$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 

$9,000 under $10,000 

$10,000 under $15,000 

$15,000 under $20,000 

$20,000 under $50,000 

$50,000 under $100,000 

$100, 000 under $500, OOO 

$500,000 under $1,000,000 

$1,000,000 or more 

No adjusted gross income 

Under $600 

$600 under $2,000 

$2,000 under $5,000 

$5,000 under $10,000 

$10, 000 or more 

Returns under $5,000 

Returns $5,000 under $10,000 

Returns $10,000 or more 

^Adjusted gross income less deficit. 

^Not subject to sampling variability since the returns in these classes 

^Deficit. 



4,137,065 
1,148,652 
1,046,522 



11,806 
165,192 
332,709 



549,823 
522,070 
445,301 

1,541,221 
752,008 

1,364,806 



8,515,230 
12,170,876 
15, 564, 570 
18,319,522 



51,914,829 
17,^70,472 
26,832,008 
8,523,317 
4,522,030 



5,161 
343,498 

,426*534 



3,186,260 
3,525,596 
3,401,658 
3,154,118 
9,792,079 
3,709,244 
6,882,146 



306,896 
1,547,813 

1,110,684 



6,978,231 
6,527,012 



INDIVIDUAL INCOME TAX RETURNS FOR 1964 



135 



verified before they were made available for sample se- 
lection. Any corrections resulting from mathematical 
verification of the taxpayer's entries are reflected in the 
data tabulated. 

In transcribing and tabulating the information from the 
returns in the sample, additional checks were imposed 
to improve the quality of the resulting estimates. Re- 
turns which showed data in accompanying schedules but 
not on appropriate return lines, community property re- 
turns on which the "halving" of income was incorrectly 
computed, and returns with other obvious errors were 
edited and recording errors amended. Mechanical tran- 
scribing 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 were maintained. 

An intensive system of sample management and con- 
trol was used to insure the selection of the prescribed 
sample and prevent any serious undercoverage. Sample 



controls were maintained on a district _basis by the most 
detailed Internal Revenue Service groupings. In addition, 
a name control file, 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. 

Prior-year delinquent returns were included for the 
purpose of "covering" data for 1964 returns that were 
filed after December 31, 1965. -It was felt that the char- 
acteristics of 1964 returns filed after 1965 could best be 
represented by previous year delinquent returns filed 
during 1965. As can be seen in table V, the number of 
delinquent returns filed,during 1965 was 437,000. 

However, the controls maintained over the selection 
of the sample and the processing of the source data in 
the field offices did not completely eliminate the possi- 
bility of error. Also, practical operating considerations 
necessitated allowance of reasonable tolerance in con- 
trolling the processing of these data within the Statistics 
Division. 



SECTION 9 



Synopsis of Lqvn^s 



Table I . —REQUIREMENT FOR FILING INDIVIDUAL INCOME TAX RETURNS, EXEMPTION ALLOWANCES, AND MIMIMUM 
AND MAXIMUM TAX RATES, 1954-64 



Items 


1'; 


.5 1 1.50 1 1. 


57 1950 1959 19d0 


19d1 


19o2 


1..o3|i9.. 




(Dollars) 




V 










J 


Gross income requirement for filing returns^ 






600 
600 
600 








Additional exemptions for age 65 or over and for blindness^ 






(Percent) 


















... 


^0.0 
91.0 
87.0 


16 




77.0 









■■•For 195<4-62, persons 65 years of age or over, gross income $1,200. Gross income for 1958-04 includes income earned 
from sources outside the United States, even though tax-exempt. 

^Additional exemptions allowed only for taxpayer and spouse. 

^No maximum effective tax rate was specified in the law; however, the effective tax rate would never exceed 77 per- 
cent. 



Table II . —REQUIREMENT FOR FILING THE SELF -EMPLOYMENT TAX SCHEDULE, AND SELF -EMPLOYMENT TAX 

RATES, 1954-63 



Items 


1955 1 195o 1 1957 1 1953 | 1959 | l^'oO | 1*1 | 1902 | 1963 | 1964 




(Dollars) 




A\. J 


Self-employment net earnings requirement for filing 

Maximum self-employment income subject to self -employment 


4,200 


4 SCO 








(Percent) 




-^ 


^ > 

3-3/8 


3-3/4 


4-1/2 


4.7 


^ 







137 



SECTION 10 



1964 Forms and Instructions 



Form 1040A: Individual Income Tax Return, 139 



Form 1040: Individu 



Schedule B, Income and Credits, 150 
Schedule C, Profit (or Loss) from Business or 
Profession, 170 



Form 1040: Schedule D, Gains and Losses from Sales or 
Property , 174 
Schedule F, Farm Income and Expense, 177 
Schedule G, Income Averaging, 182 

Form 2948: Medical and Dental Expense Statement, 186 



1040A 



O.S. INDIVIDUAL INCOME TAX RETURN 

(LESS THAN ^10,000 TOTAL INCOME) 



1964 



L Name CK a joint tetuin ol husband and wifa; use first t 



tai street or nual route) 



City, tawa or post ollice. State and Postal ZIP coda 



4. Check o> 

□ Single; 



It item 7 is JI0,COO 
interest dividends an 
wages are over $200. i 



5. Eoter total wages, salaries, tips, etc Enclose Yours - 
Forms W-2, Copy B. If not shown on encj< 
Forms W-2 attach explanation. 



G. Interest and dividends 



9 (add items i and 6) 



8. Enter tax from Tax Table or from tax computation schedule - 






Total Federal income tax withheld (from Forms W-2)- 



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 compute your tax by omitting items 8, JO, 
and 7 7. If you compute your own fax, pay balance (item 10) in 
full with return to your Dnirict Director. 



) is larger than item 8, enter refund - 



Apply refund to: Q] U.S. Savings Bonds, with excess refunded; or Q Refund onlir. 



I.S. TREASURY 



REVENUE SERVICE 



LIST YOUR EXEMPTIONS AND SIGN ON OTHER 5IUE. 



12. EXEMPTIONS FOR YOURSELF— AND WIFE (only it all her ini:ome is included in this return, or she had no I 



Check boxes which apply 

(a) Resular $600 exemption D Yourself QWife 

(b) Additional $600 exemption if 65 or over at end of 1 964 D Yourself D Wife 

(c) Additional $600 exemption if blind at end of 1 964 D Yourself D Wife 



13. NUMBER OF YOUR DEPENDENT CHILDREN WHO LIVED WITH YOU *-| 


14. DEPENDENTS OTHER THAN THOSE CLAIMED IN ITEM 13. 






(a) NAME 

► Enter Figuie 1 in the last column to right 

for each name listed 

(If more space is needed, allach schedule) 


(b) Relationship 


(c) Months lived in 
write^'-B^' or "D"^° 


havemcomEofjeOO 


(e) Amount YOU fur- 
nished for dependenl's 
support. II 100^ 
write "ALL" 


(0 Amount furnished 

byOrHERSmdud.ng 

dependenL See 

inslruclion 14 


•♦ 












i 


» 
































15. Total exemptions from items 12, 13, and 14 above *■ 





If jou had an expense allowance or charged expenses to jour employer, see instructians for "Reimbursed Expenses" and check here Q if appropriate. 


SIGN 


Under penalties of perjury, 1 declare that to the best of my knowledge and belief Ihis is a true, correct, and complete retunt 


HERE * 





, BOTH HU'SBAND ANO WIFE VSUSTSK 



139 



FACSIMILES OF TAX RETURNS, 1964 



1964 



1964 



INSTRUCTIONS FOR FORM 1040A 

FOR EMPLOYEES WHO EARNED LESS THAN $10,000 

Card Form 1040A offers an easy way for employees receiving less than 
$10,000 total income to file their 1964 U.S. income tax returns. 

To use CARD Form 1040A folloiv these simple steps 



A Read instructions below. See "Who May Use 
Form 1040A." If ineligible, use Form 1040. 

g Fill out the copy on page 4. If you need help, 
you can ask questions by phone of any Internal 
Revenue Service office or come in for assistance. 



C Transfer answers from the copy to the card. 
Keep the copy for your records. 

J) Sign the card and mail it together with your With- 
holding Statements (Forms W-2, Copy B) to your 
District Director of Internal Revenue. 



If your name, address, and social security number are already printed and punched on the card form, please use 
this card as it will permit high-speed machine handling. Correct the preprinted information, if necessary. 



WHO MUST FILE A TAX RETURN.— Every citizen or 
resident of the United States under 65 who had $600 or 
more income; if 65 or over, $1,200 or more. 

WHO MAY USE FORM 1040A.— If your income was 
less tlian $10,000 and consisted entirely of wages re- 
ported 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 tlian or in 
amounts larger than those stated above, 

(2) either husband or wife itemizes deductions, 

(3) you claim the tax status of head of household or 
surviving husband or wife, 

(4) you claim the dividends received credit or the 
retirement income credit, 

(5) you claim an exclusion for "Sick Pay" paid 
directly to you by your employer and this amount 
is included in the total wages shown on your 
Form W-2, 

(6) you claim deductions for travel, transportation, 
moving, or "outside salesmen" expense (how- 
ever, see "Reimbursed Expenses," page 3 of in- 
structions), 

(7) you claim credit for payments on estimated tax 
or an overpayment from 1963, or 

(8) you are a nonresident alien (file Form 1040B, 
Form 1040NB, or Form 1040NB-a). 



MEMBERS OF ARMED FORCES.— A member of the 
Armed Forces should give his name, social security 
number, permanent home address and serial number. 

WHEN AND WHERE TO FILE.— Please file as early as 
possible with the District Director of Internal Revenue 
for your district on or after January 1, 1965, but not 
later than April 15, 1965. 

WHERE TO GET FORMS.— If you need a Form 1040, 
you can get one from any Internal Revenue office, and 
from most banks and some post offices. Your employer 
will furnish 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, and a 
refund of less than $1 will not be made unless you apply 
for it. 

Signature. — Your return is not valid unless you sign 
it. Both husband and wife must sign a joint return. 

COMPUTATION OF TAX ON FORM 1040A: 

(1) If your income was less than $5,000. — You 

may figure your tax from the appropriate tax 
table on page 5, 6, 7, or 8, or you may have the 
Internal Revenue Service do it for you. If 
you are married and filing a separate return 
and you choose to have the Internal Revenue 
Service figure your tax, it will be figured using 
the 10 percent standard deduction and never 
the minimum standard deduction. 

(2) If your income is $5,000 or more buf less 
ihan $10,000.— You must use the standard de- 
duction — either the 10 percent standard de- 
duction or the minimum standard deduction, 
whichever is greater, and compute your own 
tax. See Tax Computation Schedule on page 
4. 

Instructions— Form I040A(I964) 



FACSIMILES OF TAX RETURNS, 1964 



141 



The use of the tax table or the standard deduction 
eliminates the need to list contributions, interest, taxes, 
losses, medical expenses, child care expenses, and cer- 
tain miscellaneous deductions. The standard deduc- 
tion is 10% of item 7, page 1, Form 1040A, but not less 
tlian the minimimi standard deduction which is an 
amount equal to $200 (SlOO if married and filing a sep- 
arate return) plus SlOO for each exemption claimed in 
item 15 on the back of your return. The deduction is 
limited to $1,000 ($500 for each return if married and 
fihng separate returns). If your standard deduction 
is less than your itemized deductions, it will be to your 
advantage to use Form 1040 and itemize your deduc- 
tions. The tax tables are designed to allow for the 
standard deduction. 

If separate returns are filed by married individuals, 
and if either the husband or wife elects the 10 percent 
standard deduction or one of them chooses to have the 
Internal Revenue Service figure the tax, the other must 
use the 10 percent standard deduction. Neither may 
use the minimum standard deduction unless both use it. 
MARRIED COUPLE: 

Marital Status. — ^If married at the end of 1964, you 
are considered married for the entire year. If divorced 
or legally separated on or before the end of 1964, you 
are considered single for the entire year. If your wife 



or husband died during the year, you are considered 
married for the year, and may file a joint return. 

(1) How to prepare a joint return. — To assure any 
benefits of the split income provisions, a husband and 
wife must file a joint return. If a joint return is filed, 
you must include the income of both; however, a joint 
return may be filed even though one had no income. 
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 income 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. A joint return may not be filed 
if either husband or wife was a nonresident alien at any 
time during the taxable year. 

(2 ) How to prepare a separate return. — ^In a separate 
return each must report his or her separate income and 
fill in a separate form. 

DO YOU OWE A TAX BALANCE?— Under the pay-as- 
you-go system, your withholding tax and your final in- 
come tax should come out about even. This benefits 
both you and your Government. If you owe a balance 
on your 1964 return, you should consider changing your 
Withholding Exemption Certificate (Form W-4). 



INSTRUCTIONS FOR PREPARING FRONT OF FORM 1040A 



(D (2) (3) ^^ y°" ^^^ married and are filing a joint re- 
turn as husband and wife, be sure to enter 
the first names and middle initials of yourself and your 
wife. For example: John F. and Mairy L. Doe. Enter 
both your social security nimiber and your ivife's social 
security nimiber whether filing jointly or separately. 

(g) Enter the total wages from all your 1964 Withhold- 
ing Statements, Forms W-2. Also include in this 
item wages not subject to withholding tax. An exam- 
ple of these wages are those paid to part-time workers 
on which the employer is not reqviired to withhold in- 
come tax. If you lose a Withholding Statement, ask 
your employer for a new one. If you cannot furnish a 
statement, attach an explanation. 

TWO OR MORE EMPLOYERS.— If a total of more than 
$174 of social security (F. I. C. A.) tax was withheld 
from the wages of either you or your wife because one 
or both of you worked for more than one employer, you 
may claim the excess over $174 as a credit against your 
income tax. 

a. Add up the social security (F. I. C. A.) tax with- 
held by all your employers from your wages in 1964. 
If joint return, separate computations must be made 
for you and your wife. 



6. Subtract $174. 

c. Include the balance in the amount shown in 
item 9. 

(g) INTEREST AND DIVIDENDS.— Enter your tax- 
able income from interest and dividends. Read 
the following instructions before completing this 
item — 

a. INTEREST.— Include all interest actually received 
or credited to your account by a bank, savings and loan 
association, etc. 

b. DIVIDENDS.— Include all dividends received ex- 
cept the first $100 received from domestic corporations. 
So-called dividends received from mutual savings banks 
or savings (building) and loan associations on deposits 
or withdrawable accounts are treated as interest, not 
dividends. If a joint return is filed and both husband 
and wife had dividend income, each is entitled at most 
to a $100 exclusion and one may not use any portion of 
the $100 exclusion not used by the other. For example, 
if the husband had $180 in dividends, and the wife had 
$20, only $120 may be excluded. 



142 



FACSIMILES OF TAX RETURNS, 1964 
INSTRUCTIONS FOR PREPARING FRONT OF FORM 1040A— Continued 



(2) ® (D dD ® COMPUTATION OF TAX 

a. If your income was less than $5,000. — You may 

figure your own tax from the appropriate Tax Table in 
these instructions, or you may have the Internal Reve- 
nue Service do it for you. If you figure your own tax, 
complete items 8, 9, and 10 or 11. 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 but /ess than 
$10,000. — You must compute your own tax and use the 
standard deduction. (If your itemized deductions are 
in excess of your standard deduction, it will be to your 



advantage to use Form 1040.) See page 4 for computa- 
tion schedule. Keep it for your records. 
PURCHASE OF U.S. SAVINGS BONDS.— If you are 
entitled to a refund, you may apply it to the purchase of 
Series E United States Savings Bonds. If you check the 
first box under item 11, you will be issued as many 
bonds as your refund will buy, providing it does not 
leave a balance of less than $1 to be paid by check. 
For example, if your refund is $40 you will receive a $50 
face value bond and a check for $2.50. Bonds will be 
issued in the name used in filing your return. If you 
file a joint return the bonds will be issued only to hus- 
band and wife as co-owners. 



INSTRUCTIONS FOR PREPARING BACK OF FORM 1040A 



^5\ FiU in this item to receive credit for your and your 
wife's exemptions. A taxpayer cannot claim his 
wife (husband) as an exemption if the wife (husband) 
filed a separate return for any purpose (for example, to 
obtain a refund of income tax withheld). Age and 
blindness are determined as of December 31, 1964. 
^3) (14) Enter in item 13 the total number of your de- 
pendent children who lived with you during 
1964. 

List other dependents in item 14. 
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). Support includes all amounts used for the de- 
pendent's support whether contributed by the depend- 
ent or by others and whether such amounts are taxable 
or nontaxable income such as social security, gifts, sav- 
ings, etc. 

6. Received less than $600 income. (This test does 
not apply to your children or stepchildren who were 
under 19 or who were full-time students for 5 calendar 
months of the year; however, you must have provided 
over one-half of the child's support.) 

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. (An alien child legally 
adopted by and living with a United States citizen 
abroad also qualifies as a citizen of the United States 
for this purpose.) 

e. EITHER (1) for the entire year 1964 had your 
home as his principal place of abode and was a mem- 
ber 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* 

Stepchild 

Mother 

Father 

Grandparent 

Brother 

Sister 

Grandchild 

Stepbrother 

Stepsister 

Stepmother 

Stepfather 



Mother-in-law 

Father-in-law 

Brother-in-law 

Sister-in-law 

Son-in-law 

Daughter-in-law 

The following if related 

by blood: 

Uncle 

Aunt 

Nephew 

Niece 



*Includes a child who is a member of your household 
if placed with you by an authorized placement agency 
for legal adoption. 

BIRTH OR DEATH OF DEPENDENT.— You can claim a 
full $600 exemption for a dependent who was born or 
died during the year if the tests for claiming an exemp- 
tion for such dependent are met for the part of the year 
during which he was alive. 

REIMBURSED EXPENSES.— If you account to your em- 
ployer for business expenses when you travel on busi- 
ness, and he pays for them (either by advances or reim- 
bursements or by allowing you to use a charge account), 
or he gives you a flat allowance for subsistence and mile- 
age of not more than $25 per day and 15 cents per mile, 
and your expenses equal your reimbursement, or your 
expenses exceed the reimbursement and you do not 
wish to claim a deduction, you may file Form 1040A 
without showing these amounts by simply checking \V] 
the box under item 15 on the back of Form 1040A. 
However, if your employer's payments are more than 
your expenses or you wish to claim a deduction for ex- 
cess expenses, you may not use Form 1040A, you must 
use Form 1040. 



FACSIMILES OF TAX RETURNS, 1964 



COFY=IiCEEP FOE 



Form 1040 A 



U.S. INDIVIDUAL INCOME TAX RETURN 

(LESS THAN $10,000 TOTAL INCOME]^ 



1964 



piegje (1) Name (If a joint return ol husband and wife. 

print — 



nes and middle mitials of bolfi) 



(2) Your loclal Mcurlty numba 

W ^ (Husband's if joint rctufn) 



1 address (Number and street or i 



t number. If Joint return 



■ post otTice, State and Postal ZIP code 



□ Single 



Enter tfie name and address used on your return for 
1963. (If the same as above, write "Same.") If 
none filed, give reason. 



$10,000 or more, or it fpjEnter total wages, salaries, tips. etc. Enclose 
, dividends and nonwithheld r-' Forms W-2. Copy B. If not shown on enclosed 
r $200. use Form 1040. I Forms W-2 attach explanation. 



r0J Interest and dividends 



ITotal income (add items 5 and 6) 



NOTE.— Married taxpayers: If you are changing from filing separate returns to a joint (Q) Enter taxfrom Tax Table or from tax computation schedule > 

return or from a joint return to separate returns, enter names and addresses from the 1963 y— t 

joint or separate returns. (Q) Total Federal income tax withheld (from Forms W-2) > 



If your income was S5,000 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 omittins items 8, 10. {W j " ''e'^ ^ 's larger than item 8. enter refund ■ 



and 7 7. If you compute your own tax, pay balance (item 10) in I . . , , , — , ., . . . _ j ..,^ , j j i — i. . j i 

full with return to your District Director \ APP" '''"<"> "^ D "S- S'"'"?' Bonds, with excess refandeil: or Q Refund only. 



REVENUE SERVICE 



LIST YOUR EXEMPTIONS AND SIGN ON OTHER SIDE. 



© EXEMPTIONS FOR YOURSELF— AND WIFE (only il all her Income is included in this return, or she had no income) 



Check boxes which apply 

(a) Resular $600 exemption 

(b) Additional $600 exemption if 65 or over at end of 1964 

(c) Additional $600 exemption if blind at end of 1964 



D Yourself □ Wife 
D Yourself DWife 
n Yourself DWife 



[13) NUMBER OF YOUR DEPENDENT CHILDREN WHO LIVED WITH YOU 



fl4j DEPENDENTS OTHER THAN THOSE CLAIMED IN ITEM 13. 



(a) NAME 

► Enter figure 1 in the last column to right 

for each name listed 

(If more space is needed, attach schedule) 



(b) Relationship 



(c) Months lived in 

(Our home. If born o 

died during year also 

write •■B"br"D" 



(e) Amount YOU fur- 
nished for dependent': 
support, if lOOJ 
write "ALL" 



15. Total exemptions from items 12, 13, and 14 above 



If you had an expense allowance or charged expenses to your employer, see instnictiiins for "Reimbursed Expenses" and check here G if appropriate. 



Under penalties of perjury, I declare that to the best of my knowledge and t 



reel, and complete return 



BOTH HUSBAND AND WIFE MUST SIGN i 



1964-O-725-550 



TAX COMPUTATION SCHEDULE (t/se only if total income, item 7 of Form 1040A, is $5,000 or more) 

1. Enter total income from item 7 of Form 1040A $ 

2. Enter the standard deduction which is explained on page 2 of the instructions (married 

person filing a separate return cannot claim more than $500) 

3. Subtract line 2 from line 1 

4. Multiply $600 by total number of exemptions claimed in item 15 of Form 1040A 

5. Subtract line 4 from line 3 

6. Tax on amount on line 5. Use appropriate tax rate schedule below. Enter here and in 

item 8 of Form 1040A (Do not attach this schedule to Form 1G40A) $ 



H you ore a single taxpayer or a married taxpayer Ulins a 
separate return, use ffiis fox rate scfiedufe 
If the amount on line 5 is: j-, , i- ^ 

Over But not over l^n^er on hne 6: 

$0 S500 16% of the amount on line 5 

$500 S1,000 S80, plus 16.5% of excess over $500 

$1,000 $1,500 $162.50, plus 17.5% of excess over $1,000 

$1,500 $2,000 $250, plus 18%, of excess over $1,500 

$2,000 $4,000 $340, plus 20% of excess over $2,000 

$4,000 $6,000 $740, plus 23.5% of excess over $4,000 

$6,000 $8,000 $1,210, plus 27% of excess over $6,000 

$8,000 $9,999.99 $1,750, plus 30.5% of excess over $8,000 



If you are married taxpayers filing a joint return, use this tax 
rate schedule 



If the amount on line 5 is: 



Enter on line 6: 



Oier But not over 

SO $1,000... 16% of the amount on line 5 

$1,000 $2,000 $160, plus 16.5%. of excess over $1,000 

S2,000 $3,000 $325, plus 17.5% of over excess $2,000 

$3,000 $4,000 $500, plus 18% of excess over $3,000 

$4,000 $8,000 $680, plus 20% of excess over $4,000 

$8,000 $9,999.99 $1,480, plus 23.5%) of excess over $8,000 



144 



FACSIMILES OF TAX RETURNS. 1964 



1964 TAX TABLES FOR INCOMES UNDER $5,000 <'^<''' 

Iff your total Income (item 7 of your return) is $5,000 or more, use 
Tax Computation Schedule on page 4 

Find your tax after selecting the proper Tax Table from those listed below based on your filing status (item 4, page 1, 
Form 1040A). 



TABLE A — For Married Persons Filing Joint Returns 

TABLE B— For Single Persons 
Tables A and B reflect the lowest tax after taking both the 
10 percent standard deduction and the minimum standard de- 
duction into account. 



TABLE C — For Married Persons Filing Separate Re- 
turns, Using 10 Percent Standard Deduction 

TABLE D — For Married Persons Filing Separate Re- 
turns, Using Minimum Standard Deduction 



TAX TABLE A— FOR MARRIED PERSONS FILING JOINT RETURNS 

This table is designed to allow for the standard deduction 
To find your tax read down income columns until you find the line covering the total income shown as item 7. Tlien read across to 
the appropriate column headed by the number corresponding to the number of exemptions claimed on item 15. Enter tax in item 8. 



It your total 


ncomg is— 


And the number of 
exemptions is- 


If your total 


ncome is— 


And the number of exemptions is- 




But less 


2 


3 fe 




But less 


2 


3 


^ 


5 


6 




If 4 or more - 


If 7 or more 


At least 


than 




there is 
no tax ^ 




than 










there is 
no tax 




Your tax is- ^ 


Your tax is— 


$0 


$1,600 


$0 


-fO " ' 


$2, 800 


$2, 825 


$195 


$82 


$0 


$0 


$0 


1,600 


1,625 


2 





2,825 


2,850 


199 


86 











1,625 


1.650 


6 





2,850 


2,875 


203 


90 











1,650 


1,675 


10 


* 


2,875 


2,900 


207 


94 











1,675 


1.700 


14 


.> 


2,900 


2,925 


212 


98 











1,700 


1,725 


18 





2,925 


2,950 


216 


102 











1.725 


1,750 


22 


~ 


2,950 


2,975 


220 


106 











1,750 


1,775 


26 





2,975 


3,000 


224 


110 











1,775 


1,800 


30 





3,000 


3,050 


230 


116 


4 








1,800 


1.825 


34 





3,050 


3,100 


238 


124 


12 








1.825 


1.850 


38 


? 


3,100 


3, 150 


247 


132 


20 








1,850 


1,875 


42 





3,150 


3,200 


255 


140 


28 








1,875 


1.900 


46 





3,200 


3,250 


263 


148 


36 








1.900 


1,925 


50 


, 


3,250 


3,300 


271 


156 


44 








1,925 


1.950 


54 


> 


3,300 


3,350 


280 


164 


52 








1,950 


1,975 


58 


"' 


3,350 


3,400 


288 


172 


60 








1.975 


2,000 


62 





3,400 


3.450 


296 


181 


68 








2.000 


2,025 


66 


, 


3,450 


3,500 


304 


189 


76 








2.025 


2.050 


70 


, 


3,500 


3,550 


313 


197 


84 








2,050 


2.075 


74 





3,550 


3,600 


321 


205 


92 








2,075 


2,100 


78 





3,600 


3, 650 


329 


214 


100 








2,100 


2, 125 


82 





3,650 


3,700 


338 


222 


108 








2,125 


2,150 


86 


I) 


3,700 


3,750 


347 


230 


116 


4 





2,150 


2,175 


90 


' 


3,750 


3,800 


356 


238 


124 


12 





2.175 


2.200 


94 





3,800 


3,850 


364 


247 


132 


20 





2,200 


2.225 


98 





3,850 


3,900 


373 


255 


140 


28 





2,225 


2,250 


102 





3,900 


3,950 


382 


263 


148 


36 





2,250 


2,275 


106 


- 


3,950 


4,000 


391 


271 


156 


44 





2.275 


2,300 


110 





4,000 


4,050 


399 


280 


164 


52 





2,300 


2,325 


114 


2 


4,050 


4,100 


407 


288 


172 


60 





2.325 


2,350 


118 


** " ( 


4,100 


4,150 


415 


296 


181 


68 





2,350 


2.375 


122 


10 ! 


4,150 


4,200 


423 


304 


189 


76 





2,375 


2,400 


126 


14 


4,200 


4,250 


430 


313 


197 


84 





2,400 


2,425 


130 


1!> ' '■, 


4,250 


4,300 


438 


321 


205 


92 





2,425 


2,450 


134 


22 J 
26 4 


4, 300 


4,350 


446 


329 


214 


100 





2,450 


2,475 


138 


4,350 


4,400 


454 


338 


222 


108 





2, 475 


2.500 


142 


30 , 


4,400 


4,450 


462 


347 


230 


116 


4 


2,500 


2,525 


146 


34 


4,450 


4,500 


470 


356 


238 


124 


12 


2,525 


2,550 


150 


3S j; 


4,500 


4,550 


478 


364 


247 


132 


20 


2,550 


2,575 


154 


42 


4,550 


4,600 


486 


373 


255 


140 


28 


2,575 


2,600 


158 


46 


4,600 


4,650 


493 


382 


263 


148 


36 


2,600 


2,625 


162 


50 


4,650 


4,700 


501 


391 


271 


156 


44 


2,625 


2,650 


166 


54 


4,700 


4,750 


509 


399 


280 


164 


52 


2,650 


2.675 


170 


5S 


4,750 


4,800 


518 


408 


288 


172 


60 


2,675 


2,700 


174 


62 " ,, 


4.800 


4.850 


526 


417 


296 


181 


68 


2,700 


2,725 


179 


66 


4,850 


4,900 


534 


426 


304 


189 


76 


2,725 


2,750 


183 70 


4,900 


4,950 


542 


434 


313 


197 


84 


2.750 


2,775 


187 74 


4,950 


5,000 


550 


443 


321 


205 


92 


2,775 


2.800 


191 78 

















FACSIMILES OF TAX RETURNS, 1964 



145 



PAGE 6 TAX TABLE B— FOR SINGLE PERSONS 

This table is designed to allow for the standard deduction 
To find your tax read down income columns until you find the line covering the total income shown as item 7. Then read across 
to the appropriate column headed by the number corresponding to the number of exemptions claimed on item 15. Enter tax in item 8. 



II your total 


income is— 


And the number of exemptions is- ^j: 


^ If your total 


income is- 


And the number of exemptions is— 




But less 
than 


1 


2 


3 i 


At least 


But less 
than 


1 


2 


3 


4 


5 


6 


At least 


If 4 or more 
there is 
no tax 


If 7 or more 
there is 
no tax 






Your tax is- 




Your tax is— 


$0 


$900 


$0 


$0 


$0 


$2, 450 


$2, 475 


$261 


$140 


$26 


$0 


$0 


$0 


900 
925 
950 
975 


925 

950 

975 

1.000 


2 
6 
10 
14 














2,475 
2,500 
2,525 
2.550 


2.500 
2,525 
2,550 
2,575 


266 
270 
275 
279 


144 
148 
152 
156 


30 
34 
38 
42 




















1,000 
1,025 
1,050 
1,075 


1,025 
1,050 
1,075 
1,100 


18 
22 
26 
30 














2,575 
2.600 
2.625 
2.650 


2,600 
2,625 
2,650 
2,675 


284 
288 
293 
297 


160 
165 
169 
173 


46 
50 
54 
58 




















1,100 
1,125 
1,150 
1,175 


1,125 
1,150 
1,175 
1,200 


34 
38 
42 
46 














2,675 
2,700 
2,725 
2,750 


2,700 
2,725 
2,750 

2.775 


302 
306 
311 
315 


178 
182 
187 
191 


62 
66 
70 

74 




















1,200 
1,225 
1.250 
1,275 


1,225 
1,250 
1,275 
1,300 


50 
54 

58 
62 














2,775 
2.800 
2.825 
2.850 


2.800 
2,825 
2,850 
2,875 


320 
324 
329 
333 


195 
200 
204 
208 


78 
82 
86 
90 




















1,300 
1,325 
1,350 
1,375 


1,325 
1,350 
1,375 
1,400 


66 
70 

74 

78 














2,875 
2,900 
2.925 
2.950 


2,900 
2,925 
2,950 
2,975 


338 
343 
348 
353 


213 
217 
222 
226 


94 
99 
103 
107 




















1,400 
1,425 
1,4S0 
1,475 


1,425 
1,450 
1,475 
1,500 


82 

90 
94 








i 





2,975 
3,000 
3,050 
3,100 


3,000 
3,050 
3,100 
3,150 


358 
365 
374 
383 


230 
237 
246 
255 


111 
117 
125 
134 




4 
12 
20 














1,500 
1,525 
1,550 
1,575 


1,525 
1,550 
1,575 
1,600 


99 
103 
107 
111 











1 


3, 150 
3,200 
3,250 
3,300 


3,200 
3,250 
3,300 
3,350 


392 
401 
410 
419 


264 
273 

282 
291 


142 
150 

158 
167 


28 
36 
44 
52 














1, $00 
1,625 
1,650 
1,675 


1,625 
1,650 
1,675 
1,700 


115 
119 
123 
127 


2 
6 
10 
14 








3,350 
3,400 
3,450 
3.500 


3.400 
3,450 
3,500 
3,550 


428 
437 
446 
455 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 

84 














1,700 
1,725 
1.750 
1,775 


1,725 
1,750 
1,775 
1,800 


132 
136 
140 
144 


22 
26 
30 


i 





3,550 
3,600 
3,650 
3.700 


3,600 
3,650 
3,700 
3,750 


464 
473 

482 
491 


336 
345 
355 
365 


211 
219 
228 
237 


92 
101 
109 
117 





4 








1,800 
1,825 
1.850 
1,875 


1.825 
1.850 
1,875 
1,900 


148 
152 
156 
160 


34 
38 
42 
46 








3,750 
3,800 
3,850 
3,900 


3,800 
3,850 
3,900 
3,950 


500 
509 
518 
527 


375 
385 
395 
405 


246 
255 
264 
273 


125 
134 
142 
150 


12 
20 

28 
36 








1.900 
1,925 
1,950 
1,975 


1,925 
1,950 
1,975 
2,000 


165 
169 
173 

178 


50 
54 
58 
62 






\ 


3,950 
4,000 
4,050 
4.100 


4,000 
4,050 
4,100 
4, 150 


536 
545 
554 
563 


415 
425 
434 
443 


282 
291 
300 
309 


158 
167 
176 
184 


44 
52 
60 

68 








2,000 
2,025 
2,050 
2,075 


2,025 
2,050 
2.075 
2,100 


182 
187 
191 
195 


66 
70 

74 
78 








4, 150 
4,200 
4,250 
4,300 


4,200 
4,250 
4,300 
4, 350 


572 
581 
590 
599 


452 
461 
470 
479 


318 
327 
336 
345 


193 
202 
211 
219 


76 
84 
92 
101 








2,100 
2,125 
2,150 
2,175 


2,125 
2,150 
2.175 
2.200 


200 
204 
208 
213 


82 

90 

94 









4,350 
4.400 
4,450 
4,500 


4,400 
4,450 
4,500 
4,550 


608 
617 
626 
635 


488 
497 
506 
515 


355 
365 
375 
385 


228 
237 
246 
255 


109 

125 
134 



4 
12 
20 


2,200 
2,225 
2,250 
2,275 


2.225 
2.250 
2,275 
2,300 


217 
222 
226 
230 


99 
103 
107 
111 








4,550 
4,600 
4,650 
4,700 


4,600 
4,650 
4,700 
4,750 


644 
653 
662 
671 


524 
533 
542 
551 


395 
405 
415 
425 


264 
273 
282 
291 


142 
150 
158 
167 


28 
36 
44 
52 


2.300 
2,325 
2.350 
2,375 


2,325 
2,350 
2,375 
2.400 


235 
239 
243 

248 


115 
119 
123 
127 


2 
6 
10 
14 


4,750 
4,800 
4,850 
4.900 


4,800 
4,850 
4,900 
4,950 


680 
689 

707 


560 
569 

578 
587 


435 
445 
455 
465 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 

84 


2.400 
2,425 


2,425 
2.450 


252 

257 


132 
136 


18 m 
22 m 


4,950 


5,000 


716 


596 


475 


336 


211 


92 



FACSIMILES OF TAX RETURNS, 1964 



TAX TABLE C— FOR MARRIED PERSONS FILING SEPARATE RETURNS, USING 10-PERCENT STANDARD DEDUCTION •*'^ge7 



To find your tax read down income 
the appropriate column headed by the 


columns until you find the line covering the total income shown as item 7. Then read 
number corresponding to the number of exemptions claimed on item 15. Enter tax i 


across to 
Q item 8. 


If your total income is— 


And the number of exemptions is— '" If your tola! income is— 


And tlie number of exemptions is— 




But less 
than 


1 


2 


3 I'l 


But less 
than 


1 


2 


3 


4 5 


6 


7 


At least 


't'hU'iJr J At least 

lax 'M 


If 8 or more 
there is no 




You, tax is- m 


Your lax is— 


$0 
675 


$675 
700 


$0 
3 


$0 



$0 P $2,325 
s,^*,^ 2.350 


$2, 350 
2,375 


$251 
255 


$147 
150 


$49 
52 


$0 



$0 



$0 



$0 



700 
725 
750 
775 


725 
750 

775 
800 


7 
10 
14 
17 








"1 2.375 
^^ 2,400 
1^ 2,425 
^^^ 2, 450 


2,400 
2,425 
2,450 
2.475 


259 
263 
267 
271 


154 
158 
161 
165 


56 
59 
63 
67 


























800 
825 
850 

875 


825 
850 
875 
900 


21 
25 
28 
32 








1 2.475 
i-l 2.500 
^J 2. 525 
,p 2.550 


2,500 
2,525 
2.550 
2.575 


275 
279 
283 

287 


169 
173 
177 
181 


70 

74 
77 
81 


























900 
925 
950 
975 


925 

950 

975 

1,000 


35 
39 
43 
46 








^>l 2.575 
?1 2. 600 
^ 2. 625 
?1 2, 650 


2.600 
2.625 
2,650 
2.675 


291 
295 
299 
303 


185 
189 
193 
197 


85 
88 
92 
96 


























1,000 
1,025 
1,050 
1,075 


1.025 
1,050 
1,075 
1,100 


50 
53 
57 
61 








^ 2,675 
t^ 2,700 
.t1 2,725 
^^^4 2,750 


2,700 
2.725 
2,750 

2,775 


307 
311 
315 
320 


201 
205 
209 
213 


100 
103 
107 
111 


3 
7 
10 
14 




















1.100 
1,125 
1,150 
1,175 


1,125 
1,150 
1,175 
1,200 


64 
68 
71 
75 








^^ 2,775 
ii^ 2,800 
"J 2.825 
^ 2,850 


2,800 
2,825 
2,850 
2.875 


324 
328 
332 
336 


217 
220 
224 
228 


114 
118 
122 
126 


17 
21 
25 

28 




















1,200 
1,225 
1,250 
1,275 


1,225 
1,250 
1,275 
1,300 


79 
82 
86 
90 








;5.y 2,875 
^ 2,900 
A 2,925 
^^ 2,950 


2,900 
2.925 
2,950 
2,975 


340 
344 
349 
353 


232 
236 
240 
244 


129 
133 
137 
140 


32 
35 
39 
43 




















1,300 
1,325 
1,350 
1,375 


1,325 
1,350 
1.375 
1.400 


93 
97 
101 
105 




1 

4 

8 


^1 2,975 
, ;- 3. 000 
;*Q 3.050 
Z 3,100 


3,000 
3,050 
3,100 
3, 150 


358 
365 
374 
383 


248 
254 
262 
270 


144 
150 
157 
165 


46 
52 
59 
66 




















1,400 
1,425 
1,450 
1,475 


1.425 
1,450 
1.475 
1.500 


108 
112 
116 
119 


11 

15 
19 
22 


k 3, 150 
-1 3.200 
'd 3.250 
f^ 3.300 


3,200 
3.250 
3.300 
3,350 


392 
401 
410 
419 


278 
286 
295 
303 


173 
180 

196 


73 
80 
88 
95 




















1.500 
1,525 
1.550 
1,575 


1.525 
1,550 
1,575 
1,600 


123 
127 
131 
134 


26 
29 
33 
37 


M 3.350 
m 3.400 
"M 3. 450 
fi 3.500 


3,400 
3,450 
3,500 
3,550 


428 
437 
446 
455 


311 
319 
327 
335 


204 
212 
220 
228 


103 
110 

lis 

125 


6 
13 
20 

28 














1,600 
1,625 
1,650 
1,675 


1,625 
1,650 
1.675 
1.700 


138 
142 
145 
149 


40 
44 
47 
51 


^M 3.550 
^ 3. 600 
m 3. 650 
^ 3.700 


3,600 
3.650 
3,700 
3,750 


464 
473 
482 
491 


344 
353 
362 
371 


236 
243 
251 
259 


132 
140 
147 
155 


35 
42 
49 
56 














1,700 
1,725 
1,750 
1,775 


1.725 
1.750 
1,775 
1,800 


153 
157 
160 
164 


55 
58 
62 
65 


"m 3.750 
r>| 3.800 
.1 3,850 
fS 3, 900 


3,800 
3,850 
3. 900 
3,950 


500 
509 
518 
527 


380 
389 
398 
407 


268 
276 
284 
292 


162 
170 

178 
186 


64 
71 
78 
85 














1,800 
1,825 
1,850 
1.875 


1,825 
1,850 
1,875 
1,900 


168 
172 
176 
180 


69 
73 
76 
80 


-M 3,950 
0^4, 000 
1 4, 050 
;^^. 4, 100 


4,000 
4,050 
4,100 
4.150 


536 
545 
554 
563 


416 
425 
434 
443 


300 
308 
316 
324 


194 
201 
209 
217 


93 
100 
108 
115 




4 

u 

18 








1,900 
1,925 
1,950 
1,975 


1,925 
1,950 
1,975 
2,000 


184 
188 
192 
196 


84 
87 
91 
95 


' 1 4, 150 
J 4,200 
M 4, 250 
^'■| 4,300 


4,200 
4,250 
4,300 
4,350 


572 
581 
590 
599 


452 
461 
470 
479 


332 
341 
350 
359 


225 
233 
241 
249 


122 
130 
137 
145 


25 
32 
40 

47 








2.000 
2,025 
2,050 
2,075 


2,025 
2,050 
2,075 
2,100 


199 
203 
207 
211 


98 
102 
106 
109 


2 K 4.350 
5 ^ 4,400 
9 ^ 4,450 
13 ^ 4,500 


4.400 
4.450 
4.500 
4.550 


608 
617 
626 
635 


488 
497 
506 
515 


368 
377 
386 
395 


257 
265 
273 
281 


152 
160 
167 
175 


54 
61 
68 
76 








2,100 
2,125 
2,150 
2,175 


2,125 
2, J50 
2,175 
2,200 


215 
219 
223 

227 


113 
117 
121 
124 


16 .^ 4.550 
20 ^J 4. 600 
23 « 4. 650 
27 M 4,700 


4.600 
4,650 
4,700 
4,750 


644 
653 
662 
671 


524 
533 
542 
551 


404 
413 
422 
431 


289 
297 
305 
313 


183 
191 
199 
207 


83 
90 
98 
105 





1 

8 


2.200 
2,225 
2,250 
2,275 


2,225 
2,250 
2,275 
2,300 


231 
235 
239 
243 


128 
132 
135 
139 


31 W 4,750 
34 ^ 4, 800 
38 ^ 4,850 
41 ^ 4,900 


4,800 
4.850 
4,900 
4,950 


680 
689 
698 
707 


560 
569 

578 
587 


440 
449 
458 
467 


322 
330 
338 
347 


215 
222 
230 
238 


113 
120 
127 
135 


16 
23 
30 
37 


2,300 


2, 325 


247 


143 


45 S 4,950 


5,000 


716 


596 


476 


356 


246 


142 


44 



FACSIMILES OF TAX RETURNS, 1964 



147 



PAGE 8 TAX TABLE D —FOR MARRIED PERSONS FILING SEPARATE RETURNS, USING MINIMUM STANDARD DEDUCTION 

To find your tax read down income columns until you find the line covering the total income shown as item 7. Then read across 
to the appropriate column headed by the number corresponding to the number of exemptions claimed on item 15. Enter tax in item 8. 



If your total income is— 


And the number of exemptions is— ^ If your total income is — 


And the number of exemptions is— 




But less 


1 2 


3 


But less 
than 


■ 


2 


3 


4 


5 


6 


7 


At least 


If 4 or more ? 
there is no i At least 


If 8 or more 

tliere is no 

tax 




Your tax is- f 2 


Your tax is- 


$0 


$800 


$0 


$0 


$0 y 1 $2. 400 


$2, 425 


$270 


$148 


$34 


$0 


$0 


$0 


$0 


800 
825 
850 

875 


825 
850 
875 
900 


2 
6 
10 
14 








^ 2. 425 
m 2,450 
om 2, 475 
m 2, 500 


2,450 
2,475 
2,500 
2,525 


275 
2>9 

284 
288 


152 
156 
160 
165 


38 
42 
46 
50 





I 




















900 
925 
950 
975 


925 

950 

975 

1.000 


18 
22 
26 
30 








S 2,525 
m 2,550 
om 2, 575 
P 2, 600 


2,550 
2,575 
2,600 
2,625 


293 
297 
302 
306 


169 
173 

178 
182 


54 
58 
62 
66 


























1,000 
1,025 
1,050 
1,075 


1,025 
1,050 
1,075 
1,100 


34 

38 
42 
46 








fi 2,625 
1 J 2, 650 
y2 2, 675 
pM 2,700 


2,650 
2,675 
2,700 
2,725 


311 
315 
320 
324 


187 
191 
195 
200 


70 

74 
78 
82 


























1,100 
1,125 
1,150 
1,175 


1,125 
1, 150 
1,175 
1,200 


50 
54 

58 
62 








|1 2, 725 
» 2,750 
op 2, 775 
om 2, 800 


2,750 
2,775 
2,800 
2.825 


329 
333 
338 
343 


204 
208 
213 
217 


90 
94 
99 


























1,200 
1,225 
1,250 
1,275 


1,225 
1,250 
1,275 
1,300 


66 
70 
74 

78 








fi 2,825 
m 2,850 
» 2, 875 
1^ 2.900 


2,850 
2,875 
2,900 
2,925 


348 
353 
358 
363 


222 
226 
230 
235 


103 
107 
111 
115 






2 

















I 


1,300 
1,325 
1,350 
1,375 


1,325 
1,350 
1,375 
1,400 


82 
86 
90 
94 








S-j-l 2. 925 
t'4 2, 950 
M 2.975 
i ^ 3, 000 


2,950 
2,975 
3,000 
3,050 


368 
373 

385 


239 
243 
248 
255 


119 
123 
127 
134 


6 
10 
14 
20 




















1,400 
1,425 
1,450 
1,475 


1.425 
1,450 
1,475 
1,500 


99 
103 
107 
111 








.; 3, 050 
^ ' 3, 100 
-,i 3.150 
'I 3, 200 


3,100 
3,150 
3,200 
3,250 


395 
405 
415 

425 


264 
273 
282 
291 


142 
150 
158 
167 


28 
36 
44 

59. 




















1,500 
1,525 
1,550 
1,575 


1,525 
1,550 
1,575 
1,600 


115 
119 
123 
127 


2 
6 
10 
14 


; ^ 3.250 
■» ' 3, 300 
;'"■* 3. 350 
" ' 3. 400 


3,300 
3,350 
3,400 
3,450 


435 
445 
455 
465 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 

84 




















1,600 
1,625 
1,650 
1,675 


1,625 
1.650 
1,675 
1,700 


132 
136 
140 
144 


18 
22 
26 
30 


; i 3, 450 
H -5,500 
' ^ 3,550 
' 3, 600 


3,500 
3,550 
3,600 
3,650 


475 
485 
495 
505 


336 
345 
355 
365 


211 
219 

228 
237 


92 
101 
109 
117 



4 
12 
20 














1,700 
1,725 
1,750 
1,775 


1.725 
1.750 
1.775 
1,800 


148 
152 
156 
160 


34 
38 
42 
46 


3,650 
3,700 
'^ 3, 750 
. 3,800 


3,700 
3,750 
3,800 
3,850 


515 
525 
535 
545 


375 
385 
395 
405 


246 
255 
264 
273 


125 
134 
142 
150 


28 

44 
52 














1,800 
1,825 
1,850 
1,875 


1.825 
1.850 
1.875 
1,900 


165 
169 

173 
178 


50 
54 
58 
62 


~ 3, 850 
^ , 3,900 
; 3,950 
4,000 


3,900 
3,950 
4,000 
4,050 


555 
565 
575 
585 


415 
425 
435 
445 


282 
291 
300 
309 


158 
167 
176 
184 


60 
68 
76 

84 














1,900 
1,925 
1,950 
1,975 


1,925 
1,950 
1,975 
2,000 


182 
187 
191 
195 


66 
70 
74 

78 


. i, 050 
, ' 1,100 
, 1,150 
4, 200 


4,100 
4, 150 
4,200 
4,250 


595 
605 
615 
625 


455 
465 
475 
485 


318 
327 
336 
345 


193 
202 
211 
219 


92 
101 
109 
117 



4 
12 
20 








2,000 
2,025 
2,050 
2,075 


2,025 
2,050 
2,075 
2,100 


200 
204 
208 
213 


82 
86 
90 
94 


0^4. 250 
; ^ 4, 300 
- 4,350 
4, 400 


4,300 
4. 350 
4.400 
4.450 


635 
645 
655 
665 


495 
505 
515 
525 


355 
365 
375 
385 


228 
237 
246 
255 


125 
134 
142 
150 


28 
36 
44 
52 








2,100 
2,125 
2,150 
2.175 


2,125 
2,150 
2,175 
2,200 


217 
222 
226 
230 


99 
103 
107 
111 


■ ^ 4,450 
? 4,500 
. 4, 550 
;- 1 4, 600 


4.500 
4,550 
4,600 
4.650 


675 
685 
695 
705 


535 
545 
555 
565 


395 
405 
415 
425 


264 
273 
282 
291 


158 
167 
176 

184 


60 
68 
76 

84 








2,200 
2,225 
2,250 
2,275 


2.225 
2,250 
2.275 
2,300 


235 
239 
243 

248 


115 
119 
123 

127 


2 'A 4,650 
6 r^ 4,700 
10 -,l 4,750 
14 ^ 4,800 


4,700 
4,750 
4,800 
4,850 


715 
725 
735 
746 


575 
585 
595 
605 


435 
445 
455 
465 


300 
309 
318 
327 


193 
202 
211 
219 


92 
101 
109 
117 




4 
12 
20 


2.300 
2,325 
2,350 
2.375 


2,325 
2,350 
2,375 
2,400 


252 
257 
261 
266 


132 
136 
140 
144 


IS f , 4,850 
22 'J^ 4,900 
26 r-' 4, 950 
30 


4,900 
4,950 
5,000 


758 
769 
781 


615 
625 
635 


475 

485 
495 


336 
345 
355 


228 
237 
246 


125 
134 
142 


28 
36 
44 



, GOVERNMENT PRINTING OFFICE: 1964— O-' 



18 


FACSIMILES OF TAX RETURNS, 1964 

^°^" 1040 U.S. INDIVIDUAL INCOME TAX RETURN-1964 

•fl^e^fSSel^K^' o,t.«able year beginning _ 1964, ending _ 19 






Your social security numbwr 

(Husband's if joint return) 


1 


First name and initial (If joint return, use first names and middle iniUais of both) 


Usl nam* 


OccupaUon 




Home address (Number and street or rural route) 


Wife's number, II Joint return 

1 1 


(L 


City, town or post office, and State PosUl ZIP code 


Occupation 



£ Enter the name anci address used on your return for 1 963 (if the same as above, write "Same"). If none filed, give reason 



NOTE. — Married taxpayers: It you are changing from filing separate returns fo a joint return or from 
a joint return to separate returns, enter names and addresses from the 1963 joint or separate returns. 



See instructions before 
completing your return. 



^ n c I FILING STATUS— check one: 

la. U Single 

b. D Married filing joint return (even if only one had incomi 

C. n Married filing separately. If your husband or wife 

filing a return give his or her first name and social security n 



s also 
imber. 



d. LH Unmarried Head of Household 

e. D Surviving widow(er) with dependent child 



Enter numbe 
of boxes 
checked 



EXEMPTIONS 

2a. Regular D Yourself D Wife 

b. Age 65 or over . . D Yourself D Wife 

C. Blind D Yourself D Wife | 

3a. Number of your dependent children who lived with you 

b. Number of other dependents (from line 3, Part I, page 2) 

4. Total exemptions claimed 



TAX 
COMPU- 
TATION 



INCOME — If joint return, include all income of both husband and wife 

5. Wages, salaries, tips, etc. If not shown on attached Forms W-2 attach explanation « 

6. Other income (from line 9, Part II, page 2) " 

7. Total (add lines 5 and 6) . , 

8. Adjustments (from line 5, Part III, page 2) • 

9. Total income (subtract line 8 from line 7) • 

FIGURE TAX BY USING EITHER 10 OR 11 

1 0. Tax Table — If you do not itemize deductions and line 9 is less than $5,000, find your tax from tables 
in instructions. Do not use lines 11 a, b, t, or d. Enter tax on line 12. 

1 1 . Tax Rate Schedule— 

a. If you itemize deductions, enter total from Part IV, page 2 \ 

If you do not itemize deductions, and line 9 is $5,000 or more enter the larger of: 

(1)10 percent of line 9 or; 

(2) $200 ($100 if married and filing separate return) plus $100 for each exemption >. < 

claimed on line 4, above. 
The deduction computed under (1) or (2) is limited to $1,000 ($500 if married and 

filing separate return). / 

b. Subtract line 11a from line 9 

c. Multiply total number of exemptions on line 4, above, by $600 

d. Subtract line 11c from line lib. (Figure your tax on this amount by using tax rate schedule on 
page 10 of instructions. Enter tax on line 12.) 

TAX— CREDITS-PAYMENTS 

12. Tax (from either Tax Table, line 10, or Tax Rate Schedule, line 11) ' 

13. Total credits (from line 5, Part V, page 2) • 

14. Income tax (subtract line 13 from line 12) 

15. Self-employment tax (Schedule C-3 or F-1) 

16. Total tax (add lines 14 and 15) 

If either you or your wife worked lor more than one employer, see page 5 of instructions. 

17a.Total Federal income tax withheld (attach Forms W-2) . . . 
b.1964 Estimated tax payments— — 

(Include 1963 overpayment allowed as a credit) <Olflce where paid) 

dotal (add lines 17a and 17b) 

TAX DUE OR REFUND ^.^ ,„ ,„„ ^ 

18. If payments (line 17c) are less than tax (line 16), enter Balance Due. *'"' 

19. If payments (line 17c) are larger than tax (line 16), enter Overpayment 

20. Amount of line 19 you wish credited to 1965 Estimated Tax 



I this rftturn. 



21 . Subtract line 20 from 19. Apply to: □ U.S. Savings Bonds, with excess refunded; or D Refund only 



Under penalties of perjury, I declore that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge 
ar.d belief it is true, correct, and complete. If prepared by a person other than taxpayer, his declaration is based on all information of which he has any 
knowledge. 

SIGN 

Dat'e 



HERE 

Sign here . 



If joint retu 
Sigiiatijre of preparer other than taxpayer 



BOTH HUSBAND AND WIFE MUST SIGN even if only ( 



FACSIMILES OF TAX RETURNS, 1964 



FORM 1040-1964 












Pages 


PART l.-EXEMPTIONS-Ceinplete only «or dependents claimed en line 3b, page 1 


(a) NAME 
(If more space is needed attach schedule) 


(b) Relationship 


(c) Months lived in your 
home. If bom or died dur- 
ingyearwrite"B"or "D" 


(d) Did dependent 

have income of J600 

or more? 


(e) Amount YOU furnished 


g«SJ 


^ 








$ 




2 















PART II.— INCOME FROM ALL SOURCES OTHER 
THAN WAGES, SALARIES, ETC. 

Dividends and Other Distributions 
A. Gross amount 



B. Nontaxable and capital sain distributions 

Give details in lin( 
L. subtract item bi trom item A. la Ihroueh Id 



Explanation of Item C (Write (H), (W), (J) for stock held by husband, wife, or joinUy) 
la. Qualifyins dividends (Name of payer) — 



Total . . 

b. Subtract $1 00. If joint return see instructions 

c. Balance 

d. Nonqualifying dividends (Name of payer)— 



Total 



2. Total (add lines 1c and 1d) 



3. Interest (Name of payer).. 



Total interest income 



4. Pensions and annuities, rents and royalties, 
partnerships, and estates or trusts (Schedule B) 

5. Business income (Schedule C) 

6. Sale or exchange of property (Schedule D) . 

7. Farm income (Schedule F) 

8. Other sources (state nature) 



Total other sources . 



9. Add lines 2 through 8. Enter here and on 

line 6, page 1 . . . ■ . . . ^ 



PART III.— ADJUSTMENTS 

1. "Sick pay" if included in line 5, page 1 (Attach 
Form 2440 or other requited statement) . . 

2. Moving expenses (attach Form 3903) . . . . 

3. Employee business expense (attach Form 21 06 
or other statement) 

4. Payments by self-employed persons to retire- 
ment plans, etc. (Attach Form 2950SE) . . . 

5. Total adjustments (lines 1 through 4). Enter 
here and on line 8, page 1 



EXPENSE ACCOUNT INFORMATION— If you had an expense 
allowance or charged expenses to your employer, check here IZl and 
see page 7 of instructions^ 



PART IV.-ITEMIZED DEDUCTIONS-Use only if you do 
not use tax table or standard deduction. 

Medical and dental expense. — Attach itemized list. Do not enter any 
expense compensated by insurance or otherwise. NOTE: If you or your 
wife are 65 or over, or if either has a dependent parent 65 or over, seo 
page 8 of instructions (or possible larger deduction. 

1. Enter excess, if any, of medicine and drugs 
over 1 % of line 9, page 1 

2. Other medical, dental expenses (include hos- 
pital insurance premiums) 



3. Total (add lines 1 and 2) 

4. Enter 3% of line 9, page 1 (see note above) 

5. Subtract line 4 from line 3; see page 8 of in- 
structions for maximum limitation .... 



Contributions. — If other than money, attach re- 
quired statement — see instructions. 



Total (see instructions for llmltotions) ■ 



Interest: Home mortgage. 
Other (Specify) 



Total Interest expense ■ 



Taxes — Real estate 

State and local gasoline- 
General soles 

State and local Income- 
Personal property 



Total taxes ■ 



Other deductions (see page 9 of Instructions). 



Total other deductions ■ 



TOTAL DEDUCTIONS ( For line 1 1 a, page 1 )■■ 

PART v.— CREDITS 

1. Dividends received credit: Enter smallest of 
(a) 2% of line 1 c. Part II, (b) fax shown on 
line 1 2, page 1 , less foreign tax credit, or (c) 
2% of taxable Income (see Instructions). 

2. Retirement income credit (Schedule B) . . 

3. Investment credit (Form 3468) 

4a. Foreign tax credit (Form 1116) 

b. Tax-free covenant bonds credit 



5, Total credits (add lines 1 through 4b). Enter 
here and on line 13, page 1 



PRINTING OFFICE; 1SM-Q-72S-MI 



150 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE B 
(Form 1040) 



SUPPLEMENTAL SCHEDULE OF INCOME 
AND RETIREMENT INCOME CREDIT 

(From pensions and annuities, rents and royalties, partnerstiips, and estates or trusts) 

Attach this schedule to your income tax return, Form 1040 



1964 



Name and address as shown on page 1 of Form 1040 



Part 1.— PENSION AND ANNUITY INCOME 

A. — General Rule (if you did not contribute to the cost of ttie pension or annuity, e 


nter the total amount recei 


ed on line 6 and omit lines 1 through 5.) 


AMOUNT 






4. Amount received this year • 






2. Expecfed return 

(Iine1 divided by line 2) 








% 


plied by line 3 
6. Taxable portion 





i 


(excess of line 4 over line 5) 




B.— Special Rule— Where your employer has contributeil part of the cost anil your own contribution will be recovered tax-tree within 3 years. 

If your cost was fully recovered m prior years, enter the total amount received on line 5 and omit lines 1 througti i. 


! 


1 Cost of annuity (amounts you paid) . • 




4. Amount received tfiis year . ■ • ' 














2. Cost received tax-free in post years . • 




1 


3. Remainder of cost (line 1 less line 2) . 




5. Taxable portion (excess, if any, of line 4 over line 3) . 




Part II.— RENT AND ROYALTY INCOME 


i 


1. Kind and location of properly 
(Identify whether rent ot royalty) 


2 Total amount of rents 
or royalties 


3. Depreciation (explain 
in Part IV) or depletion 


4. Repairs (attach 
itemized list) 


5. Other expenses 
(attach Itemized list) 






































i 


















1 




i 


1 . Totals • 










2. Net income (or loss) from rents and royalties (column 2 less sum of columns 3, 4, and 5) 




PartllL-iNCOME OR LOSSES FROM PARTNERSHIPS AND ESTATES OR TRUSTS 




1. Portnersfiips (name, address, and nature of income)- 


















2 Estates or trusts (name and address) 






: 










Total of Ports 1 II and III (Enter fiere and on linp 4 Pnrt II nnn^ 9 nf Fnrm in4n^ 

















Part iV.— SCHEDULE FOR DEPRECIATION CLAIMED IN PART II ABOVE— This schedule is designed tor taxpayers usins the alternative guide- 
lines and administrative procedures described In Revenue Procedure 62-21 as well as for those taxpayers who wish to continue using procedures authorized 
prior to the revenue procedure. Where double headings appear use the first heading for the new procedure and the second heading for the older procedure. 



1. Group and guideline class 


2. Cost or other basis 
at beginning of year 


3. Asset additions 
i„year(a™un.) 


A. Asset retirements 
in year (amount) 

<re?5!'2i')° 


5. Depreciation 

allowed or allowable 

in prior years 


6. Method 

of 
computing 
depreciation 


7. Class life 
- OR — 


8. Depreciation for 


Description of properly 


Cost or other basis 


Date acquired 


this year 


1 . Total additional first-year depreciation (do not include in it( 


L 1 , 






























. 


























































































































Total cost or other basis 































3. Cost or otiier basis of full^ 


,' depreciated asse 


>ts Still in use. . . 






1 1 


^ Mim 



FACSIMILES OF TAX RETURNS, 1964 



Schedule B (Form 1040) 1964 



Part v.— RETIREMENT INCOME CREDIT 

A.— General Rule 


l( separate return, use column B only. If joint return, use column A lor wile and column B for husband » 

Did you receive earned income in excess of $600 in each of any 1 calendar years before 1964? (Widows 


A 


B 


DYes DNo 


DYes DNo 




If answer above is "Yes" in either column, furnish all information below in that column. 
1 . Retirement income for taxable year: 

(a) For taxpayers under 65 years of age: 

Enter only income received from pensions and annuities under public retirement 
systems (e.g. Fed., Stale Govts., etc.) included in line 9, page 1, of Form 1040 






(b) For taxpayers 65 years oF age or older: 

Entertotalof pensions and annuities, interest, and dividends included in line 9, page 
1 of Form 1040, and gross rents included in column 2, Part II of this sctiedule 






2. Maximum amount of retirement income for credit computation 


1,524 i 00 


1,524:00 


3. Deduct: 

(a) Amounts received as pensions or annuities under ttie Social Security Act, tfie Rail- 
road Retirement Acts, and certain other exclusions from gross income 

(b) Earned income received (Does not apply to persons 72 years of age or over): 






(2) Taxpayers 62 or over but under 72, enter amount determined as follows: 

if $1 ,200 or less, enter zero i 






if over $1 ,200 but not over $1 ,700, enter '/j of amount over $1 ,200; or i . . 




if over $1 700 enter excess over $1 450 J 






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 






7. (a) Total (add amounts on line 6, columns A and B) 




// line 7(a) is less than $2,286 and this is a joint return and both husband and wife are age 65 or over, 
complete the Alternative Computation in B below which may result in a larger credit. 
(b) Amount from line 7 of part B below, if applicable 




8. Tentative credit. Enter 17% of line 7(a) or 17% of line 7(b), whichever is greater 




LIMITATION ON RETIREMENT INCOME CREDIT 
9. Amount of tax shown on line 12, page 1 of Form 1040 








1 1 . Subtract line 10 from line 9 




12. Credit. Enter here and on line 2, Part V, page 2, Form 1040, the amount on line 11 or line 8, whichever 
is smaller 





. — Alte rnativ e Computation (alter completing lines 1 through Ka) above)_ 
This mettiod | 



You are married and tiling a joint return; 
.,„.il..kl„ !«. I "• ^o**' husband and wife are GS or over, AND 

availaDle it. ^ c. Eitlier one, or botli, received earned income in excess of $600 i 



1 each of any 10 calendar years before 1964. 



Furnish the Information called for below for both husband and wife even If only one answered "Yes" In column A or B above. 

1 . Retirement income of both husband and wife from pensions and annuities, interest, and dividends included 
in line 9, page 1, Form 1040, and gross rents included in column 2, Part II of this schedule 

2. Maximum amount of retirement income for credit computation 

3. Deduct: 

(a) Amounts received as pensions or annuities under the Social 
Security Act, the Railroad Retirement Acts, and certain other 
exclusions from gross income 

(b) Earned income received (Does not apply to persons 72 years 
of age or over): 

If $1 ,200 or less, enter zero 1 

If over $1 ,200 but not over $1 ,700 enter Vl of amount over I 

$1,200; or 
If over $1,700, enter excess over $1,450 J 

4. Total of lines 3(a) and 3(b) 

5. Total (add amounts on line 4, columns A and B) 

6. Balance (subtract line 5 from line 2) 

7. Enter here and on line 7(b) of port A above, the amount on line 6 or line 1, whichever is smaller. 



2,286 



FACSIMILES OF TAX RETURxNS, 1964 



A Special Message for Taxpayers: 

Your 1964 forms and instructions have been revised 
in accordance with the Revenue Act of 1964 which re- 
duced tax rates and provided a minimum standard 
deduction. 

Many other changes have been made to conform to 
the new legislation which provided: 

Higher ceilings on charitable contributions and the 

retirement income credit; 

Benefits for persons 65 or over on medical expenses 

and sales of their residences ; 

Deductions for moving expenses; 

Restrictions on the sick pay exclusion and the deduc- 
tion for taxes paid; 

An increase in the dividends exclusion and a decrease 

in the dividends received credit ; and 

An averaging system to moderate the effects of un- 
usual increases in income. 

During the past year, continued progress has been 
made in installing our Automatic Data Processing sys- 
tem, and some parts of the system are now operative in 
all of the 50 States. This system is designed to give 
you better service and more efficient and effective en- 
forcement of the tax laws. Our aim is to make sure 
that everyone pays his share — and no more — of the cost 
of keeping America safe, prosperous, and healthy. 

For your own protection and to promote fast, accurate 
processing of your return, please watch these points — 

Name and Address — If your return form is not pre- 
addressed, be sure you enter your name and address 
correctly. 

Copy Your Social Security Number, exactly as it 
appears on your account card. This number is im- 
portant to rapid processing of your return and to iden- 
tifying your tax affairs. 

Be Sure To Fill Out Each Item on the form which 
applies to you. Be accurate. Follow the instructions. 
List all income such as wages, dividends, interest, etc. 
Take all allowable deductions. 

Attach Forms W-2 to your return. If not avail- 
able, please explain. 

Be Sure To Sign Your Return. 

File Early — before the April 15 deadline. 

These instructions cover the most common aspects of 
the tax laws and regulations. If you have questions, 
telephone or visit any Internal Revenue Office. We 
will be glad to help you. 



Instructions 
forPreparing 
Your 
Federal 
Income Tax 
Return 
Form 1040 
for 19 64 




'""^^^^ 



Commissioner of Internal Revenue 



instructions form 1040 (1964) 



FACSIMILES OF TAX RETURNS, 1964 



Individuals have two return forms to 
choose from. Form 104O and card form, 
Form 1040A. Form 1040 is limited to 
a single sheet. Supporting schedules 
may be attached according to the indi- 
\adual needs of each taxpayer. 

Generally, if your income was en- 
tirely from salary, wages, interest, divi- 
dends, and sources other than those for 
which schedules (B, C, D, and F) are 



HOW TO USE FORM 1040 
(To be filed not later than April 15) 

required as prescribed below, you will 
need only Form 1040. You can use it 
whether you take the standard deduc- 
tion or itemize deductions. 

If you have income from sources listed 
below, complete and attach one or more 
of the following forms: 

Schedule B for income from pensions, 
annuities, rents, royalties, partner- 
ships, estates, trusts, etc.; 



person- 



Schedule C for income from : 

ally owned business; 
Schedule D for income from the sale 

or e.\change of property; and 
Schedule F for income from farming. 
These schedules as well as other sup- 
porting schedules described in these in- 
structions may be obtained from any 
Internal Revenue Service office. 



WAGE EARNERS WITH LESS THAN $10,000 INCOME 



You can use a simpler return (Form 
1040A), printed on a punch card, if: 

1 . Your income was less than $ 1 0,000, 
AND 

2. It consisted of wages leported on 
withholding statements (Forms W-2) 
and not more than $200 total of other 
wages, interest, and dividends, AND 

3. Instead of itemizing deductions, 



you wish to use the ta.x table or to take 
the standard deduction which is gen- 
erally the higher of: 

(a) the 10- percent standard deduc- 
tion — about 10 percent of your 
income, or 

(b) the minimum standard deduc- 
tion — an amount equal to $200 
($100 if married and filing sepa- 
rate return) plus $100 for each 



exemption claimed on item 15 on 
the back of your Form 1040 A. 
The instructions for Form 1D40A pro- 
vide 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 most banks 
and some post offices. 



LOCATIONS OF DISTRICT DIRECTORS' OFFICES 



Following 


it 


a llil ol 


>h. Dl.trh 


cl Dlreclort' 






ra Ihon Ol 


ie DItlrict 


Dlretlor-. 


your Stole < 


ind 






which one 



local pott offli 
ALABAMA— Birmingham, Ala., 35203, 
ALASKA— Anchorage, Alatka, 99501. 
ARIZONA— Phoenix, Aril., 85025. 
ARKANSAS — little Rock, Ark., 72203. 
CALIFORNIA— Loi Angelei, Calif., 



900) 2i San fron- 



102. 



COLORADO— Denver, Colo., 80202. 

CONNECTICUT— Hartford, Conn., 06115. 

DELAWARE— Wilmington, Del., 19801. 

DISTRICT OF COLUMBIA— Baltimore, Md., 2120J. 

FLORIDA— Jacksonville, Fla., 32202. 

GEORGIA— Allonta, Go., 3C303. 

HAWAII— Honolulu, Hawoii, 96813. 

IDAHO— Boise, Idaho, 83701. 

ILLINOIS — Chicago, III., 60602; SprlngAetd, III., 62704. 

INDIANA— Indianapolis, Ind., 46204. 

IOWA— Des Moines, Iowa, 50309. 

KANSAS— Wichita, Kans., 67202. 

KENTUCKY— Louisville, Ky., 40202. 

LOUISIANA — New Orleans, La., 70130. 

MAINE— Augusta, Maine, 04330. 



WHO MUST FILE A TAX RETURN 

Every citizen or resident of the United 
States — whether an adult or minor — 
who had $600 or more income in 1964 
must file; if 65 or over, $1,200 or more. 

A person with income of less than 
these amounts should file a return to get 
a refund if tax was withheld. Generally, 
a married person with income less than 
her (his) own personal exemption will get 
the smaller tax or larger refund by filing 
a joint return with husband or wife. 

c«9— 16— 78044-1 



MARYLAND — Bollimore, Md., 21202. 

MASSACHUSETTS — Boston, Moss., 02115. 

MICHIGAN — Detroit, Mich., 4e226. 

MINNESOTA— St. Paul, Minn., 55101. 

MISSISSIPPI— Jackson, Miss., 39202. 

MISSOURI— St. Louis, Mo., 63101. 

MONTANA — Helena, Mont., 59601. 

NEBRASKA— Omaha, Nebr., 68102. 

NEVADA — Rono, Nev., 89505. 

NEW HAMPSHIRE— Portsmouth, N.H., 03801. 

NEW JERSEY — Newark, N.J., 07102. 

NEW MEXICO— Albuquerque, N. Mex., 87101. 

NEW YORK— Brooklyn, NY., 11201; 120 Church Street, 
New York, NY., 10007,- Albany, N.Y., 12210; Buf- 
falo, NY., 14202. 

NORTH CAROLINA — Greensboro, N.C., 27401. 

NORTH DAKOTA, Forgo, N. Dak., 58102. 

OHIO — Cleveland, Ohio, 44113; Cincinnati, Ohio, 45202. 

OKLAHOMA— Oklahoma City, Okla., 73102. 

OREGOr^ — Porllond, Oreg., 97232. 

PANAMA CANAL ZONE— Director of International Op- 
erations, internal Revenue Service, Woshington, D.C., 
20225. 

PENNSYLVANIA— Philodelphia, Pa., 19108; 



GENERAL INSTRUCTIONS 

Earned Income From Sources Outside the 

United States. — To determine whether 
an income tax return 'must be filed, in- 
come must be computed without regard 
to the exclusion provided for income 
earned from sources outside the United 
States. If you received such income and 
-believe it is excludable for income tax 
purposes, attach Form 2555 to your 
return. 

Social Security Numbers. — Be sure to 

enter your number in the space pro- 



PUERTO Rico— Director 

Internal Revenue Service, 1105 Fernandez Juncos 

Avenue, Santurce, PR., 00907. 
RHODE ISLAND — Providence, R.I., 02907. 
SOUTH CAROLINA— Columbia, S.C, 29201. 
SOUTH DAKOTA— Aberdeen, S. Dok., 57401. 
TENNESSEE — Nashville, Tenr., 37203. 
TEXAS— Austin, Tex., 78701; Dallas, Tex., 75201. 
UTAH— Solt Lake City, Utah, 84110. 
VERMONT— Burlington, VI., 05401. 
VIRGINIA— Richmond, Va., 23240. 
VIRGIN ISLANDS — Permanent residents: Department of 

Finance, Tax Department, Charlotte Amolie, St. 

Thomas, V.I., 00801; Others: Director , ' 

Operotions, Internal Revenue Service, 

Juncos Avenue, Santurce, P.R., 00907, 
WASHINGTON — Tocoma, Wash., 98402. 
WEST VIRGINIA— Parkersburg, W. Va., 26102. 
WISCONSIN— Milwaukee, Wis., 53202. 
WYOMING— Cheyenne, Wyo., 82001. 
FOREIGN ADDRESSES — Toxpoyers with legal residence 

in Foreign Countries — Director of Internotional Oper- 

tions. Internal Revenue Service, Washington, D.C., 

20225. 



vided, exactly as shown on your card. 
If you need a number, file application 
Form SS-5 with the local office of the 
Social Security Administration. File 
the application early to make certain 
you receive your card before April 15, 
the deadline for filing your return. If 
you file an application but do not receive 
your card by that date — file your return 
and enter "Applied for" in the space 
provided for the number. 



154 



FACSIMILES OF TAX RETURNS, 1964 



GENERAL INSTRUCTIONS— Continued 



MEMBERS OF ARMED FORCES 

A member of the Armed Forces 
should give his name, social security 
number, permanent home address and 
serial number. 
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 (see page 2). U.S. citi- 
zens abroad who have no legal residence 
or place of business in the United States 
should file with Director of Interna- 
tional Operations, Internal Revenue 
Service, Washington, D.C., 20225. 
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 some post offices. 



on the form schedules are not sufficient 

for your needs. The attachment must 

contain all required information, follow 

"TJT ^° , . , , , the format of the official schedules and 

The balance of tax shown to be due ^^^^^ bg attached to the return in the 

on line 18, page 1, of your return on ^^me sequence as the schedules appear 

Form 1040 must be paid m full with „„ the official forms. If an attachment 

your return if it amounts to $1.00 or i^ u^gd in place of a schedule having a 

summary line on page 1 or 2 of Form 

1040, the total must be entered on the 

summary line on page 1 or 2, but need 

not be entered on the official schedule. 



more. Make checks or money orders 
payable to "Internal Revenue Service." 

ROUNDING OFF TO WHOLE DOLLARS 

The money items on your return and 
schedules may be shown in whole dol- 
lars. 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 if the lines 



The above does not apply to Sched- 
ules C-3 and F-1 (self-employment 
tax) which the Service separates from 
the returns and transmits to the Social 
Security Administration for the record- 
ing of information in benefit accounts, 
or to any tax computation portion of a 
form or schedule. 



MARRIED PERSONS— JOINT OR SEPARATE RETURNS 

Advantages of a Joint Return.— Gener- 
ally it is advantageous for a married 

couple to file a joint return. There are turn. Check the box "married filing 

separately," line Ic, page 1 of the return 
and give the first name and social secu- 
rity number of your husband or wife in 
the space provided. When filing sepa- 
rate returns, the husband and wife 
should each claim the allowable deduc- 
tions paid with his or her own funds. 



benefits in figuring the tax on a joint re- 
turn, which often result in a lower tax 
than would result from separate returns. 

How To Prepare a Joint Return.— You 

must include all income, exemptions 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 nonresi- 
dent alien at any time during the tax- 
able year. 

When a joint return is filed, the cou- 
ple assumes full legal responsibility for 
the entire tax, and if one fails to pay, 
the other must pay it. 



the name of the filer should be entered your wife or husband check the boxes 
in the name and address area of the re- provided in line 2, page 1. 

Clianges in Marital Status.— If you are 

married at the end of your taxable year, 
you are considered married for the en- 
tire year. If you are divorced or legally 
separated on or before the end of your 
taxable year, you are considered single 
for the entire year. 



(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. If one uses 
the 10 percent standard deduction (in- 
stead of the minimum standard deduc- 
tion—line Ua (2), page 1, Form 1040), 
then the other may not use the mini- 
mum standard deduction. 

A separate return may also be filed 
where only the husband or wife had in- 



If your wife or husband died during 
the year, you are considered married for 
the entire year. Generally a joint return 
may be filed for the year provided you 
have not remarried before the end of the 
year. If an executor or administrator 
has been appointed, the return should be 
filed by both you and the executor or 
administrator. If no executor or ad- 
ministrator has been appointed, you may 
file the return. Indicate you are filing 
as a surviving husband or wife in the 
signature area of the return. If a re- 
fund is due, attach Form 1310, State- 



come. Enter only the name of the one 

How To Prepare a Separate Return. — Sep- having income in the name and address ment of Claimant to Refund Due on 

arate returns may be filed by husband area. Check the box "married filing Behalf of Deceased Taxpayer. You 

and wife where each has income of his separately," line Ic, page 1 of the re- may also be entitled to the benefits of 

own. In such case each should report turn and do not enter your wife's (hus- a joint return for the two years follow- 

his or her own income, exemptions and band's) first name or social security ing the death of your husband or wife, 

deductions in separate returns. Only number. To claim the exemption for See "Widows and Widowers," below. 



Unmarried Head of Household.— The law 

provides special tax rates for any indi- 
vidual who qualifies as a "Head of 
Household." Only the following per- 
sons may qualify: ( i) 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 during the en- 

<l«9— 16— 78044-1 



SPECIAL COMPUTATIONS 

tire year, except for temporary absence, 
was occupied as the principal place of 
abode and as a member of such house- 
hold by (1) any related person other 
than your unmarried child or stepchild 
(see list under "Line 3," paragraph 5 on 
page 4 of these instructions) for whom 
you are entitled to a deduction for an 
exemption, unless the deduction arises 
from a multiple support agreement, or 
(2) your unmarried child, grandchild, 
or stepchild, even though such child is 
not a dependent. 



The home you maintain for your 
father and mother need not be your 
residence. 

See head of household rates on page 
10. 

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 



FACSIMILES OF TAX RETURNS, 1964 



155 



GENERAL INSTRUCTIONS— Continued 



return had been filed. However, the (a) must not have remarried, (b) must entitled to a deduction for an exemp- 

exemption for the decedent may be maintain as her home a household tion, and (c) must have been entitled to 

claimed only for the year of death. which is the principal place of abode of file a joint return with her husband (or 

The conditions are that the taxpayer her child or stepchild for whom she is wife) for the year of death. 

HOW TO REPORT YOUR INCOME 

All income in whatever form received which is not specifically exempt must be included in 
your income tax return, even though it may be ofTset by deductions. Examples are given below: 
Examples of Income Which Musf Be Reported 
Profits from sales or exchanges of real estate, Employer supplemental unemployment bene- 

securities, or other property. fits. 

Industrial, civil service and other pensions. 

annuities, endowments. 
Rents and royalties from property, patents, 

copyrights. 
Your share of estate or trust income. 
Examples of Income Which Should Not Be Reported 
Disability retirement payments and other ben- Workmen's compensation, insurance, dam- Railroad Retirement Act benefits 

efits paid by the Veterans Administration. ages, etc., for injury or sickness. Gifts, inheritances, bequests. 

Dividends on veterans' insurance. Interest on State and municipal bonds. 

Life insurance proceeds upon death. Federal and State social security benefits. 



Wages, salaries, bonuses, commissions, fees. 

tips, and gratuities. 
Dividends. 

Interest on bank deposits, bonds, notes. 
Interest on U.S. Savings bonds. 
Profits from business or profession. 
Your share of partnership profits. 



Alimony, separate maintenance or support 

pa^Tnents received from (and deductible 

by) your husband (or wife). 
Prizes and awards (such as items received 

from radio and TV shows, contests, raffles, 

etc.). 



INSTRUCTIONS FOR PAGE 1 OF FORM 1040 



Exemptions ($600 for Each Allowable Ex- 
emption) 

Line 2— YOU AND WIFE 

For You. — You, as the taxpayer, are 
always entitled to at least one exemp- 
tion. If, at the end of your taxable year, 
you were either blind or 65 or over, you 
get two exemptions. If you were both 
blind and 65 or over, you get three ex- 
emptions. Be sure to check the appro- 
priate boxes. Age and blindness are de- 
termined as of December 31, 1964. 
Your age is determined on the day be- 
fore your actual birthday and, thus, if 
your 65th birthday was on January 1, 
1965, you get the additional exemption 
for age on your return for 1964. 

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. You 
are not entitled to an exemption for your 
wife on your return if she files a separate 
return for any reason (for example, to 
obtain a refund of tax withheld where 
her income is less than $600 ) . Other- 
wise, 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 

husband died during 1964, the number 
of her or his exemptions is determined 
as of the date of death. 

Proof of Blindness.— If totally blind, 
a statement to that effect 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 3— CHILDREN. OTHER DEPENDENTS 

Enter on line 3a the total number of 
your children who lived with you during 
1964. 

Enter on line 3b the total number of 
dependents from line 3, Part I, page 2 of 
your return. 

Each child, stepchild and other de- 
pendent claimed must meet all of the 
following tests: 

1. Income.— Received less than $600 
income ( if the child was under 1 9 or was 
a student, this limitation does not ap- 
ply), and 

2. Support. — Received more than half 
of his or her suppiort from you (or from 
husband or wife if a joint return is filed) , 
(see definition below of support), and 

3. Married Dependents. — 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, and 

5. Relationship. — 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 you (or to husband or wife if 
a joint return is filed) in one of the fol- 
lowing ways : 

Child* Stepbrother Son-in-law 

Stepchild Stepsister Daughter-in-law 

Mother Stepmother The following if 

Father Stepfather related by blood: 

Grand- Mother-in-law Uncle 

parent Father-in-law Aunt 

Brother Brother-in-law Nephew 

Sister Sister-in-law Niece 
Grandchild 



•Includes a child who is a member of your 
household if placed with you by an author- 
ized placement agency for legal adoption. 



Definition of Support. — Support in- 
cludes food, shelter, clothing, medical 
and dental care, education, and the like. 
Generally, the amount of an item of sup- 
port will be the amount of expense in- 
curred by the one furnishing such item. 
If the item of support furnished by an 
individual is in the form of property or 
lodging, it will be necessary to measure 
the amount of such item of support in 
terms of its fair market value. In com- 
puting the amount of support include 
amounts contributed by the dependent 
for his own support and also amounts 
ordinarily excludable from income (for 
example, social security benefits) . 

In figuring whether you provide more 
than half of the support of your child 
who is a student, you may disregard 
amounts received by him as scholar- 
ships. 

Definition of Student. — The law de- 
fines a student as an individual who, 
during each of 5 calendar months during 
the year, is {a) a full-time student at an 
educational institution or (b) pursuing 
a full-time course of institutional on- 
farm training under the supervision of 
an accredited agent of an educational 
institution or of a State, or a political 
subdivision of a State. 

Children Under 19 and Students.— If your 

dependent child has income of $600 or 
over and is under 19, or is a student, he 
must file an income tax return, report 
the income, and claim his exemption. 
If you provide over half of your child's 
support and meet the other qualifica- 
tions for claiming a dependent, you may 
also claim the exemption on your return. 

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 ex- 
emption for such dependent are met for 
the part of the year during which he was 
alive. 



156 



FACSIMILES OF TAX RETURNS, 1964 

INSTRUCTIONS FOR PAGE 1 OF FORM 1040— Continued 



Support by More Than One Taxpayer. — that he will not claim the individual as 
If several persons contributed toward a dependent for the year. The decla- 
the support of an individual during the rations must be filed with the return of 



taxable year, but none contributed over 
half of the support, they may designate 
one of their number to claim the exemp- 
tion if : 

(a) They as a group have provided 
over half of the support of the individ- 
ual ; and 

(b) Each of them, had he contrib- 
uted over half of the support, would 
have been entitled to claim the individ- 
ual 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 declaration 



the person claiming the exemption. 
Form 2120, Multiple Support Declara- 
tion, is available at any Internal Reve- 
nue Service office. 
Line 5— WAGES. SALARIES. TIPS. ETC. 

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. See page 7 for treatment of 
reimbursed employee business expenses. 

If your employer furnishes you a state- 
ment showing that a portion of the cost 
of group term life insurance is taxable to 
you, include the taxable amount with 
other payments reported on this line. 



All income regardless of where earned 
must be reported on one Federal tax 
return. 

Payment in Merchandise, etc. — If you are 

paid in whole or in part in merchandise, 
services, stock, or other things of value, 
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 designated wages, must 
include the fair market value in income. 
However, if, for the convenience of 
your employer, your meals are furnished 
at your place of employment or you are 
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. 



TAX— CREDITS— PAYMENTS^BALANCE DUE OR REFUND 



FIGURING YOUR TAX Credit for Taxes Paid by Regulated Invest- 

Line 10.— The Tax Tables are pro- ment Companies.— If you are entitled to a 

vided by law and save you the trouble credit for taxes paid by a regulated in. 
of itemizing deductions and computing 



your tax. The tables allow $600 for 
each exemption claimed on your return 
and also provide for the standard 
deduction. 

Line 11. — The tax rate schedules on 
page 10 are to be used to figure your tax. 
Be sure to use the right schedule. See 
pages 3 and 4 for special computations. 



vestment company on undistributed cap- 
ital gains, include the credit on this line 
and write "Reg. Inv." to left of the 
entry. To substantiate the credit 
claimed attach Copy B of Form 2439. 
Line 17c. — If the total amount shown 
on this line is substantially less than the 
amount of tax shown on line 14, you 



return. If you file a joint return the 
bonds will be issued only to husband and 
wife as co-owners. 

Declarations of Estimated Tax. — For many 

taxpayers the withholding tax on wages 
is not sufficient to keep them paid up on 
their income tax. In general, the law 
requires every citizen or resident of the 
United States to file a Declaration of 
Estimated Income Tax, Form 1040-ES, 
and to make quarterly payments in 



may be liable for die additional charge ^^^^^ ^^ filing the annual income tax re 
Line 12.— Tax.— If your income has miposed by lawjor underpayment of ...„ :r u.-. ...., ..j ._ j„ u: 



increased substantially this year, it may 
be to your advantage to figure your tax 
under the "averaging method." Ob- 
tain Schedule "G" from any Internal 
Revenue Service office for full details. 

Line 14. — Income Tax. — Include any 

tax from Recomputing Prior Year In- 
vestment Credit due to early disposition 
of such property. Also show the amount 
separately and write "Inv. Cr." to left of 
the entry. Attach computation. 

Line 17a. — Payments. — Include any 

amounts from the following sources on 
this line. 



estimated tax. This charge is manda- 
tory unless the taxpayer qualifies for re- 
lief under one of the specific exceptions 
provided by law. Details of this addi- 
tional charge, and exceptions to it are 
printed on Form 1040-ES and Form 
2210. If you believe one of the excep- 
tions applies, attach a stateme;it or Form 
2210 to your return. See paragraph 
below, headed "Declarations of Esti- 
mated Tax" for filing requirements. 

Lines 18 and 19.— Tax Due or Refund 

Under $1. — In order to facilitate the 
processing of collections and refunds, 
balances due of less than $1 need not be 



Income Tax Withheld. — As reflected on paid, and overpayments of less than $1 



the Forms W-2 which you received from 
your employers. 

Two or More Employers. — If more than 

$174 of Social Security (F.I.C.A.) em- 
ployees tax was withheld during 1964 
because either you or your wife received 
wages from more than one employer, 
the excess should be claimed as a credit 
against income tax. Include any excess 
of Social Security tax withheld over 
$174. Also show the amount sepa- 
rately and write "F.I.C.A." to left of 



will be refunded only upon separate 
application to your District Director. 

Line 21. — Purchase of U.S. Savings 

Bonds. — If you are entitled to a refund, 
you may apply it to the purchase of Se- 
ries E United States Savings Bonds by 
checking the first box on line 21, page 1. 
You will be issued as many bonds as your 
refund will buy providing it does not 
leave a balance of less than $1 to be paid 
by check. The excess will automatically 
be refunded to you. If you make this 



the entry. If a joint return, do not add election, do not check the second box on 

the Social Security tax withheld from line 21. For example, if your refund is 

both husband and wife to figure the $40 you will receive a $50 face value 

excess over $174; compute the credit bond and a check for $2.50. Bonds will 

separately. be issued in the name used in filing your 



turn if his total expected tax exceeds his 
withholding (if any) by $40 or more, 
and he: 

(a) can reasonably expect gross in- 
come exceeding — 

(1) $10,000 for a head of a household 
or a widow or widower entitled to the 
special tax rate; 

(2) $5,000 for other single individ- 
uals; 

(3) $5,000 for a married individual 
not entitled to file a joint declaration; 

(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 

( b ) can reasonably expect to receive 
more than $200 from sources other than 
wages subject to withholding. 

Farmers and fishermen may postpone 
filing their 1965 declarations until Jan- 
uary 15, 1966. 

Additional Charge for Underpayment of Esti- 
mated Tax. — Estimate your tax carefully. 
Avoid the difficulties of paying a large 
balance with your return ; also the pros- 
pect of your being liable for the addi- 
tional charge imposed by law for under- 
payment of estimated tax when filing 
your 1965 income tax return. See 
instructions for line I7c above. 



FACSIMILES OF TAX RETURNS, 1964 



157 



INSTRUCTIONS FOR PAGE 2 OF FORM 1040 



Part II 

Line 1— DIVIDENDS 

If you own stock, the payments you 
receive out of tlie 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. 

Enter as item A, above line 1, the 
gross amoimt of dividends and other 
distributions received by you as a share- 
holder, either directly or through a 
nominee or other intermediary. 

Enter as item B, above line 1, the 
total of any capital gain dividends and 
nonta-xable distributions included in 
item A. 

Some payers, especially mutual funds 
and investjnent club partnerships, dis- 
tribute both an ordinary dividend and 
a capital gain at the same time; the 
check or notice will usually show them 
separately. You must report the divi- 
dend income portion on this line, and 
the capital gain portion on line 7, Part 
I of Schedule D (Form 1040). 

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 
$100 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 $100 of dividends 
received from qualifying corporations, 
but one may not use any portion of the 
$100 exclusion not used by the other. 
For example, if the husband had $300 
in dividends, and the wife had $20, only 
$120 may be excluded on a joint return. 

Use this hne to list your dividends 
including dividends you receive as a 
member of a partnership or as a bene- 
ficiary of a estate or trust, and to show 
the amount of the exclusion to which 
you are entitled. If you receive divi- 
dends through a nominee or other inter- 
mediary, list the name of such person. 
Dividends from mutual insurance com- 
panies which are a reduction of pre- 
miums are not to be included. So- 
called "dividends" paid on deposits or 
withdrawable accounts by the following 
corporations are considered interest and 
should be reported as interest in line 
3; mutual savings banks, cooperative 
banks, savings and loan associations and 
credit unions. 

Taxable dividends from the following 
corporations, which do not qualify for 
the dividends received exclusion and the 
dividends received credit should be re- 
ported on line Id: 



(a) foreign corporations, including 
your share from a controlled foreign cor- 
poration. 

(b) so-called exempt organizations 
(charitable, fraternal, etc.) and exempt 
farmers' cooperative organizations. 

(c) regulated investment companies 
except to the extent designated by the 
company to be taken into account as a 
dividend for these purposes. 

(d) real estate investment trusts. 

(e) China Trade Act corporations. 

(f ) 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. 

Line 3— INTEREST 

You must include in your return any 
interest you received or which was 
credited to your account (whether en- 
tered in your passbook or not) and can 
be withdrawn by you. Interest on bonds, 
debentures, notes, savings accounts, or 
loans is taxable, except on State and 
municipal bonds and securities. 

If you own United States Savings or 
War bonds, the gradual increase in value 
of each bond is considered interest, but 
you need not report this interest until 
you cash the bond or until the year of 
final maturity, whichever is earlier. 
However 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 
on all such bonds and must continue 
to report the annual increase each year. 
Line 8— OTHER SOURCES 

If you cannot find any specific place 
on your return (or related schedules) to 
list certain types of income, report it 
here. Income reported on this line must 
be identified as to its source. Report 
here amounts received as alimony, sep- 
arate maintenance, prizes and awards. 
Recoveries of bad debts and other items 
which reduced your tax in a prior year 
should also be reported here. A refund 
of State income tax should be entered 
here. The general rule is that a refund 
of State income tax is income to the 
taxpayer if a deduction was taken in a 
prior year which resulted in a Federal 
tax benefit. Taxpayers using the cash 
basis report the refund in the year re- 
ceived; taxpayers using the accrual 
basis report when the claim is allowed 
(if no claim is filed, report when the 
taxing authority notifies you of the 
overpayment). 

Net Operating Loss.— If, in 1964, your 

business or profession lost money instead 
of making a profit, if you had a casualty 
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 the losses against 
your 1964 income. If the losses exceed 
your income, the excess is a "net operat- 
ing loss" which generally may be used to 
offset your income for the 3 years prior 
to and the 5 years following this year. 
The loss must be carried back to the 
third prior year and any remaining bal- 
ance brought forward to each succeeding 
year. If a "carryback" entides yoii to a 
refund of prior year taxes, ask the Dis- 
trict Director for Form 1045 to claim a 
quick refund. 

If you had a loss in a prior year which 
may be carried over to 1964, it should be 
reported on this line. Attach a state- 
ment showing the computation. 

Part III 

Line 1— SICK PAY EXCLUSION 

You may exclude from income 
amounts received under a wage continu- 
ation plan for the period during which 
you were absent from work on account 
of personal injuries or sickness. If both 
you and your employer contribute to the 
plan, any benefits attributable to your 
own contributions are excludable with- 
out limit, but there are certain limita- 
tions on the exclusion of the benefits 
attributable to your employer's contri- 
butions. 

To figure your sick pay exclusion you 
must first determine whether your "sick 
pay" was over 75 percent of your regu- 
lar weekly rate of pay. 

( / ) Over 75 percent — 

If you received over 75 percent of 
your weekly rate of wages for periods 
of absence from work because of illness 
or injury, there is now a 30-calendar day 
waiting period before you qualify for the 
exclusion. The waiting period applies 
even though you were injured or hos- 
pitalized. The amount to be excluded 
thereafter is limited to a rate not to ex- 
ceed $100 a week. 

(2) 75 percent or less — 

If you received 75 percent or less of 
your weekly rate of wages, the waiting 
period is 7 calendar days, and the exclu- 
sion is limited to a rate not to exceed 
$75 a week. There is no exclusion for 
the waiting period regardless of whether 
you were sick or injured, unless you were 
hospitalized at least 1 day during the 
period of absence. After 30 calendar 
days the weekly rate of exclusion is in- 
creased to an amount not to exceed $100. 

Where the exclusion is limited to a 
weekly rate of $100 and the payments 
exceed this rate the exclusion is figured 
by multiplying the amount received by 
100 and dividing the result by the weekly 
rate of payment. 

Where the exclusion is limited to a 
weekly rate of $75 and the payments 
exceed this rate the exclusion is figured 



158 



FACSIMILES OF TAX RETURNS, 1964 

INSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 



by multiplying the amount received by 
75 and dividing the result by the weekly 
rate of payment. 

See Form 2440 for additional infor- 
mation. Attach this fonn or a statement 
showing your computation, and indicat- 
ing the period or periods of absence, 
regular weekly rate of pay, and whether 
hospitalized. 

The exclusion for periods of absence 
which began before 1964 should be 
computed under the 1963 rules. 
Line 2— MOVING EXPENSES 

Except as noted below, employees, in- 
cluding new employees, can deduct un- 
reimbursed moving expenses ( transpor- 
tation of household goods and members 
of the household, and meals and lodg- 
ing while in transit). The deduction 
is allowed only if (a) the change in 
job location would have required at 
least 20 additional miles travel if the 
taxpayer had not moved to a new 
residence, or, (b) he had no former 
principal place of work, his new place 
of work is at least 20 miles from his 
former residence, and (c) during the 
12-month period immediately follow- 
ing his arrival in the general location of 
his new principal place of work, the 
taxpayer is a full-time employee, in 
such general location, during at least 
39 weeks. 

See Form 3903 for full details. At- 
tach the form or a statement which 
includes the amount of your reimburse- 
ment and the amount of the expenses. 
Enter any excess reimbursement on line 
8, Part II, page 2 of your return and 
enter any excess expenses on line 2, 
Part III, page 2 of your return. If the 
employer for whom you were already 
working paid your moving expenses to 
a new location and the reimbursement 
equaled the expenses, you should not re- 
port the reimbursement or the expenses. 
Line 3— EMPLOYEE BUSINESS EXPENSES 
AND EMPLOYER PAYMENTS 

Deductible Expenses and Excess Pay- 
ments. — You may deduct the expenses 
shown below to the extent they are not 
paid by your employer. If employer 



payments exceed the expenses, the ex- 
cess must be reported as income on your 
return. 

( 1 ) Travel and transportation. — Bus, 
taxi, plane, train, etc., fares or the cost of 
operating an automobile in connection 
with your duties as an employee. 

(2) Meals and lodging. — If you are 
temporarily away on business, at least 
overnight from the city, town, or other 
general area which constitutes your prin- 
cipal or regular business location. 

(3) Outside salesmen. — If you are an 
"outside salesman," you may generally 
deduct other expenses which are ordi- 
nary and necessai7 in performing your 
duties, such as selling expenses, station- 
ery, and postage. An "outside salesman" 
is one who is engaged in full-time solici- 
tation 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. 

(4) Other business expenses. — If you 
itemize deductions in Part IV, page 2 of 
your return, you may also deduct (under 
the heading "Other Deductions") busi- 
ness expenses other than those described 
above. Examples of such expenses are 
professional and union dues, and the cost 
of tools, materials, etc., not paid for by 
your employer. 

Additional Information. — If you claim a 

deduction for these employee business 
expenses you must submit the following 
information with your return. You may 
use Form 2106 for this purpose. 

( 1 ) The total of all amounts received 
from or charged to your employer for 
business expenses, 

( 2 ) The amount of your business ex- 
penses broken down into broad cate- 
gories, and 

(3) The number of days away from 
home on business. 

If you do not claim a deduction, you 
must attach the information unless you 
were required to and did make an ade- 
quate accounting for your expenses to 
your employer. You have made the 



equivalent of an adequate accounting, 
if you received an allowance not in ex- 
cess of $25 per diem in lieu of sub- 
sistence, or a mileage allowance not in 
excess of 15 cents per mile, and estab- 
lished time, place, and business purpose 
of the travel. 

If you operate your own automobile 
for business purposes, you may figure 
the cost of operating your automobile 
at a standard mileage rate of 10 cents 
per mile for the first 15,000 miles of 
business use and 7 cents per mile for 
such use in excess of 15,000 miles rather 
than deducting the actual expenses. 
Use of this method is optional on a yearly 
basis. Actual expenses include gasoline, 
oil, repairs, hcense tags, insurance and 
depreciation. 

This simplified method cannot be 
used if: 

(a) depreciation has been claimed 
using a method other than straight line 
(or where additional first year depre- 
ciation has been claimed), or 

(b) you are clabning a deduction in 
excess of reimbui-sements received from 
your employer for automobile expenses. 

Whether or not you are required to 
submit the additional information de- 
scribed above, check the box for expense 
accounts on page 2 of Form 1040. 

Reporting Deductions and Excess Pay- 
ments. — The expenses and payments 
are to be reported as follows: 

( 1 ) If the employer payments exceed 
the expenses, report the excess on line 8, 
Part II, page 2; 

(2) If the expenses exceed the pay- 
ments, the excess expenses for travel and 
transportation, meals and lodging, and 
"Outside Salesman," may be deducted 
on line 3, Part III, page 2. If you 
itemize deductions the unreimbursed 
fHDrtion of Other business expenses may 
be deducted in Part IV, page 2, under 
Other deductions; or 

(3) If the expenses equaled the pay- 
ments, no further entry is required on 
the form. 



Part IV— ITEMIZED DEDUCTIONS— If you do not use Tax Table or Standard Deduction 



MEDICAL AND DENTAL EXPENSES 

If you itemize deductions, you can de- 
duct, within the limits described below, 
the amounts you paid during the year 
(not compensated by hospital, health or 

accident insurance) for medical or deduct only the nui-sing cost 
dental expenses for yourself, your wife. You can deduct amounts paid for 
or any dependent who received over half transportation primarily for and essen- 
of his support from you whether or not tial to medical care, but not for any 
the dependent had $600 or more income, other travel expense even if it benefits 
List on the attachment the name and your health. Meals and lodging while 
amount paid to each person or institu- you are away from home receiving med- 



You can deduct amounts paid for the medical expense unless they are part of 

prevention, cure, correction, or treat- a hospital bill or are included in the cost 

ment of a physical or mental defect or of care in a similar institution, 

illness. If you pay someone for both Subject to the Limitations Set Forth Below, 

nursing and domestic duties, you can ^o« CAN Deduct as Medical Expenses 



Payments To or For: 
Physicians, dentists, nurses, and hospitals 
Drugs or medicines 

Transportation necessary to get medical care 
Eyeglasses, artificial teeth, medical or surgical 

appliances, braces, etc. 
X-ray examinations or treatment 
Premiums on hospital or medical insurance 
You CANNOT Deduct Payments For: 



tion. 



ical treatment may not be treated as Funeral expenses and cemetery plot 



069— le— 78044-1 



FACSIMILES OF TAX RETURNS, 1964 



159 



INSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 



Illegal operations or drugs 

Travel ordered or suggested by your doctor 

for rest or change 
Premiums on life insurance 
Cosmetics 
FIGURING THE DEDUCTION 

(A) General Rule: 

(1) Medicine and drugs. — The total 
amount paid for medicine and drugs 
must t>e reduced by 1 percent of line 9, 
page 1, Form 1040 for: (a) the tax- 
payer, wife, dependent parent (s), all of 
whom were under 65 years of age, and 
(b) all other dependents regardless of 
age. 

(2) Medical and dental expenses. — 
You can deduct that portion of your 
medical and dental expenses which ex- 
ceed 3 percent of Une 9, page 1, of Form 
1040 and which were paid for the 
persons described in (1) above. 

(B) Special Rule for Certain Persons 
65 or over: 

The unreimbursed portion of the 
medical and dental expenses including 
medicine and drugs are deductible in 
full for the following persons: 

(a) The taxpayer and his wife if 
EITHER is 65 years of age or over; 

(b) A dependent who is 65 or over 
and who is the mother or father of the 
taxpayer or his wife. 

If you have expenses under both the 
General Rule and Special Rule, you 
may obtain Form 2948 from any In- 
ternal Revenue Service office to assist 
you. If however, you have exp>enses 
only for those persons described in the 
Special Rule, attach an itemized list and 
enter the total amount in line 5 of the 
medical and dental expense section, 
Part IV, page 2. 

Limitations. — The deduction for med- 
ical and dental expenses may not exceed 
$5,000 multiplied by the number of ex- 
emptions claimed on the return (other 
than the exemptions for age and bhnd- 
ness). However, in no case may the 
deduction exceed: 

(a) $10,000 if the taxpayer is single 
and not a head of household or a widow 
or widower entitled to the special tax 
computation; 

(b) $10,000 if the ta.xpayer is mar- 
ried but files a separate return ; or 

(c) $20,000 if the taxpayer files a 
joint return, or is a head of household 
or a widow or widower entitled to the 
special tax computation. 

(d) If either you or your wife are 
disabled and 65 or over, you may qual- 
ify for an increased maximum limita- 
tion. Consult the nearest Internal 
Revenue Service office for further in- 
formation. 

CONTRIBUTIONS 

If you itemize deductions, you can 
deduct gifts to : 

(1) religious, charitable, education- 



al, scientific or literary organizations, 
and organizations for the prevention of 
cruelty to children and animals, unless 
the organization is operated for personal 
profit, or a substantial part of its activ- 
ities is the carrying on of propaganda 
or otherwise attempting to influence 
legislation ; and 

( 2 ) fraternal organizations if they are 
to be used for charitable, religious, etc., 
purposes; and 

(3) veterans' organizations which 
will use the gifts for public puiposes; 
and 

(4) governmental agencies which 
will use the gifts for public purposes, 
including civil defense. 

Civil defense volunteers may deduct 
unreimbursed expenses paid for gasoline 
and other expenses of participation in 
official civil defense activities. The law 
does not allow deductions for gifts to 
individuals, foreign organizations, or to 
other types of organizations. 

A contribution may be made in 
money or property (not services). If 
in property, attach a description of the 
property, date of gift, and method of 
valuation except for securities. In ad- 
dition, for each gift valued at more than 
$200, set forth any conditions attached 
to gift; manner of acquisition and cost 
or other basis if owned by you less than 
5 years; and attach a signed copy of 
appraisal, if any. A special rule is pro- 
vided to determine the amount deduc- 
tible in the case of a gift of depreciable 
property described in sections 1245 and 
1250 of the Internal Revenue Code (see 
instructions for Schedule D for defini- 
tion of sections 1245 and 1250 prop- 
erty). Generally, a charitable deduc- 
tion for a transfer of a future interest 
in tangible personal property made 
after December 31, 1963, is not allowed 
until the entire interest has been trans- 
ferred. 

Generally, the deduction for contri- 
butions may not exceed 20 percent of 
line 9, page 1. An additional 10 per- 
cent is allowable for contributions to 
churches, a convention or association 
of churches, tax-exempt educational 
institutions, tax-exempt hospitals, cer- 
tain medical research organizations, 
certain college or university endowment 
associations; and organizations referred 
to in paragraphs (1) and (4), above. 
Attach computation. 

If your contributions exceed 30 per- 
cent of line 9, page 1, consult the nearest 
Internal Revenue Service office for a 
possible carryover deduction. 

If you support a student in your home 
under a written agreement with a char- 
itable or educational institution, you may 
be entitled to deduct as a contribution a 



part or all of the amounts you expend to 

maintain such a student. 

You CAN Deduct Gifts To: 

Churches, including assessments 

Salvation Army, Red Cross 

United Funds and 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 and disabili- 
ties such as cancer, cerebral palsy, cyStis 
fibrosis, diseases of the heart, diabetes, men- 
tal illness and mental retardation, multiple 
sclerosis, muscular dystrophy, poliomyelitis, 
tuberculosis, 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 de- 
duct interest you paid on your personal 
debts, such as bank loans or home mort- 
gages. Interest paid on business debts 
should be reported in the separate sched- 
ule in which your business income is re- 
ported. Do not deduct interest paid on 
money borrowed to buy tax-exempt 
securities or single-premium life insur- 
ance. Do not include as interest such 
items as carrying charges and insurance 
which are not deductible, and taxes 
which may be deductible but which 
should be itemized separately. 

If interest charges are not stated sepa- 
rately on installment purchases of per- 
sonal property (such as automobiles, 
televisions, etc.), you may deduct an 
amount equal to 6 percent of the average 
unpaid monthly balance. 
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 c?,sh 
Delinquent taxes 

You CANNOT Deduct Interest On: 
Indebtedness of another person, when you are 
not legally liable for payment of the interest 
A gambling debt or other nonenforceable 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 general State or local retail sales 
taxes if under the laws of the State they 
are imposed directly upon the con- 
sumer, or if they are imposed on the 
retailer (or wholesaler in case of gaso- 
line taxes) and the amount of the tax 
is separately stated by the retailer. In 
certain cases you may also deduct State 
or local selective sales or excise taxes, 
even though not part of a general sales 
tax, (or tax similar to a general sales 
tax) if unposed at the general rate of 
that tax. 

Average general sales tax tables for 

069—19— 78044-1 



160 



FACSIMILES OF TAX RETURNS, 1964 



rNSTRUCTIONS FOR PAGE 2 OF FORM 1040— Continued 



many States are available in Internal 
Revenue Seivice offices. In general, 
you cannot deduct taxes assessed for 
pavements or other improvements, in- 
cluding front-foot benefits, which tend 
to increase the value of your property. 
Do not deduct in this part any non- 
business Federal taxes, or any taxes paid 
in connection with a business or profes- 
sion which are deductible in Part II of 
Schedule B, or Schedule C, or F. 
You CAN Deduct: 
Real estate taxes 
State and local gasoline taxes 
General sales taxes 
State and local income taxes 
Personal property taxes 
You CANNOT Deduct: 

Any Federal excise taxes on your personal 
expenditures, such as taxes on theater ad- 
missions, furs, jewelry, cosmetics, transpor- 
tation, telephone, gasoline, etc. 
Federal social security taxes 
Hunting licenses, dog licenses 
Auto inspection fees, tags, drivers licenses 
Water taxes 

Taxes paid by you for another person 
Alcoholic beverage, cigarette, and tobacco 

Selective sales or excise taxes (such as those 
on admissions, room occupancy, etc.) even 
if they are separately stated or imposed on 
the purchaser, unless imposed at the same 
rate as the general sales tax. 

OTHER DEDUCTIONS 

Care of Children and Other Dependents.— 

If deductions are itemized, a woman or a 
widower (including men who are di- 
vorced or legally separated under a 
decree and who have not remarried) or 
a husband whose wife is incapacitated or 
is institutionalized for at least 90 con- 
secutive days or a shorter period if she 
dies, may deduct expenses paid, not to 
exceed a total of $600, for one depend- 
ent, or not to exceed a total of $900 for 
two or more dependents for the care of : 

(a) dependent children under 13 years 

of age ; or 

(b) dependent persons (excluding hus- 

band or wife) physically or men- 
tally incapable of caring for 
them-selves; 
if such care is to enable the taxpayer to 
be gainfully employed or to actively seek 
gainful employment. 

In the case of a woman who is mar- 
ried, the deduction is allowed if; 

(a) she files a separate return because 
she has been deserted by her husband, 
does not know, and did not know his 
whereabouts at any time during the year, 
and has applied to a court to compel him 
to pay support or odierwise to comply 
with the law or a judicial order; or 

(b) she files a joint return with her 
husband, in which case, the deduction is 
reduced by the amount (if any) by 
which their combined income, line 9, 
page 1, exceeds $6,000. This limitation 
dons not apply to expenses incurred 
while ike husband is incapable of self- 



support because he is mentally or physi- 
cally defective. 

In case of a husband whose wife is 
incapacitated the deduction is allowed if 
he files a joint return with his wife, in 
which case, the deduction is reduced by 
the amount (if any) by which their 
combined income, line 9, page 1, exceeds 
$6,000. This limitation does not apply 
to expenses incurred while the wife is 
institutionalized if she is institutional- 
ized for at least 90 consecutive days or 
a shorter period if she dies. 

Do not deduct any child care pay- 
ments to a person for whom you claim an 
exemption. 

If the person who receives the f>ay- 
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. 

Attach Form 2441 or a statement set- 
ting forth all pertinent information. 

Casualty Losses and Thefts. — If you item- 
ize deductions, you can deduct a net loss 
resulting from the destruction of your 
property in a fire, storm, automobile 
accident, shipwreck, or other losses 
caused by natural forces limited to the 
amount in excess of $100 for each loss. 
Damage to your car by collision or acci- 
dent can be deducted if due merely to 
faulty driving but cannot be deducted 
if due to your willful act or negligence. 
You can also deduct 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 and the $100 limitation. 
Attach an explanation. 
You CAN Deduct Losses On: 
Property such as your home, clothing, or auto- 
mobile 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, gradual erosion or deteriora- 

Aniraals or plants damaged or destroyed by 
disease 

Expenses for Education. — These expenses 

may be deducted if primarily for: 

(a) Maintaining or improving skills 
required in your employment or other 
trade or business, or 

(b) Meeting the express requirements 
of your employer, or the requirements of 



applicable law or regulations, imposed as 
a condition to the retention of your 
salary, status, or employment. 

Expenses incurred for obtaining a new 
position, meeting minimum require- 
ments, a substantial advancement in 
position, or for personal purposes are not 
deductible. 

The rules for reporting deductible 
education expenses are the same as those 
shown on page 7 for the reporting of 
"Employee Business Expenses." 

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 in Part III, page 2. 

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 pa^inents 
of alimony or separate maintenance 
under 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 entered 
after March 1, 1954, are also deductible. 
Such payments must be included in the 
wife's income. You cannot deduct any 
voluntary payments not made under a 
court order or a written separation 
agreement, lump-sum settlements, or 
specific maintenance payments for sup- 
port of minor children. 

You may deduct gambling losses only 
to the extent of gambling winnings. 
You CAN Deduct Cost Of: 
Safety equipment, tools and supplies, used in 

your job 
Dues to unions or professional societies 
Business entertainment 
Fees to employment agencies 
You CANNOT Deduct Cost Of: 
Travel to and from work 
Entertaining friends 
Bribes and illegal payments 

Part V 

Line 1— DIVIDENDS RECEIVED CREDIT 

This credit is equal to 2 percent of 
qualifying dividends in excess of those 
which you may exclude from your in- 
come. The credit may not exceed: 

(a) the total income tax reduced by 
the foreign tax credit if any ; or 

(b) 2% of the taxable income. 
Taxable income means — 

(a) If tax is computed, the amount shown on 
line lid, page 1, of Form 1040. 

(b) If Tax Table is used, the amount shown 
on line 9, page 1, Fonn 1040, less the 
standard deduction, and less the deduc- 
tion for exemptions ($G00 multiplied by 
the number of exemptions claimed on 
line 4, page 1, Form 1040). 



10 



FACSIMILES OF TAX RETURNS. 1964 

TAX RATE SCHEDULES 



161 



If you do not use one of the Tax Tables, then figure your tax on the amount on line lid, page 1 of your return 
by using the appropriate tax rate schedule on this page. 



II and III, and MARRIED PERSONS FILING SEPARATE RETURNS. 



// the am 


ount on 






// the amount on 






line lid, 


page I, is: 


Enter on line 12 


, page 1: 


line lid, 


page 1, is: 


Enter on line 12, 


page I: 


Not over 


$500 


. . 16% of the amount on line lid. 


Over— 


But not over- 




of excess over— 


Over— 


Bui not over— 




of exces, over— 


$20,000 


— $22,000. . 


. $6,450, plus 50.5% 


— $20,000 


$500 


— $1,000... 


. $80, plus 16.5% 


— $500 


$22,000 


— $26,000. . 


. $7,460, plus 53.5% 


— $22,000 


$1,000 


— $1,500... 


. $162.50, plus 17.5% 


— $1,000 


$26,000 


— $32,000. . 


. $9,600, plus 56% 


— $26,000 


$1,500 


— $2,000... 


. $250, plus 187o 


- $1,500 


$32,000 


— $38,000. . 


. $12,960, plus 58.5% 


— $32,000 


$2,000 


— $4,000. .. 


. $340, plus 20% 


— $2,000 


$38,000 


— $44,000.. 


. $16,470, plus 61% 


— $38,000 


$4,000 


— $6,000... 


. $740, plus 23.5% 


— $4,000 


$44,000 


— $50,000. . 


. $20,130, plus 63.5% 


— $44,000 


$6,000 


— $8,000. .. 


. $1,210, plus 27% 


— $6,000 


$50,000 


— $60,000. . 


. $23,940, plus 667o 


— $50,000 


$8,000 


— $10,000. . 


. $1,750, plus 30.5% 


— $8,000 


$60,000 


~ $70,000. . 


. $30,540, plus 68.5% 


— $60,000 


$10,000 


— $12,000. . 


. $2,360, plus 34% 


— $10,000 


$70,000 


— $80,000. . 


. $37,390, plus 71% 


— $70,000 


$12,000 


— $14,000.. 


. $3,040, plus 37.5% 


— $12,000 


$80,000 


— $90,000. . 


. $44,490, plus 73.5% 


— $80,000 


$14,000 


— $16,000. . 


. $3,790, plus 41% 


— $14,000 


$90,000 


— $100,000. 


. $51,840, plus 75% 


— $90,000 


$16,000 


— $18,000. . 


. $4,610, plus 44.5% 


— $16,000 


$100,000 


— $200,000. 


. $59,340, plus 76.5 7o 


— $100,000 


$18,000 


— $20,000.. 


. $5,500, plus 47.5% 


— $18,000 


$200,000 




. $135,840, plus 77% 


— $200,000 







Schedule II. MARRIED TAXPAYERS FILING JOINT RETURNS and CERTAIN WIDOWS AND WIDOWERS (See page 3). 




// the amount on 






// the amount on 






line lid, 


page 1, is: 


Enter on line 12 


, page 1: 


line lid, page 1, is: 


Enter on line 12 


page 1: 




$1 000 


. 16% of the amount 


on line lid. 

of excess over- 


Over— But not over— 

$40,000 — $44,000. . 


$12,900, plus 505% 


of excess over— 


Over— 


But not over— 




— $40,000 


$1,000 


— $2,000. . 


$160, plus 16.5% 


— $1,000 


$44,000 — $52,000. . 


$14,920, plus 53.5% 


— $44,000 


$2;ooo 


— $3,000. . 


$325, plus 17.5% 


— $2,000 


$52,000 — $64,000. . 


$19,200, plus 56% 


— $52,000 


$3,000 


— $4,000. . 


$500, plus 18% 


— $3,000 


$64,000 — $76,000. . 


$25,920, plus 58.5% 


— $64,000 


$4,000 


— $8,000. . 


$680, plus 20% 


— $4,000 


$76,000 — $88,000. . 


$32,940, plus 61% 


— $76,000 


$8,000 


— $12,000. 


$1,480, plus 23.5% 


— $8,000 


$88,000 — $100,000. 


$40,260, plus 63.5% 


— $88,000 


$12,000 


— $16,000. 


$2,420, plus 27% 


— $12,000 


$100,000 — $120,000. 


$47,880, plus 66% 


— $100,000 


$16,000 


— $20,000. 


$3,500, plus 30.5% 


— $16,000 


$120,000 — $140,000. 


$61,080, plus 68.5% 


— $120,000 


$20,000 


— $24,000. 


$4,720, plus 34% 


— $20,000 


$140,000 — $160,000. 


$74,780, plus 71% 


— $140,000 


$24,000 


— $28,000. 


$6,080, plus 37.5% 


— $24,000 


$160,000 — $180,000. 


$88,980, plus 73.5% 


— $160,000 


$28,000 


— $32,000. 


$7,580, plus 41% 


— $28,000 


$180,000 — $200,000. 


$103,680, plus 75% 


— $180,000 


$32,000 


— $36,000. 


$9,220, plus 44.5% 


— $32,000 


$200,000 — $400,000. 


$118,680, plus 76.5% 


— $200,000 


$36,000 


— $40,000. 


$11,000, plus 47.5% 


— $36,000 


$400 000 . . 


$271,680, plus 77% 


— $400,000 







Schedule III. Unmarried (or legally separated) taxpayers who qualify as 


HEAD OF HOUSEHOLD (See page 3). 




// the amount on 






// the amount on 






line lid. 


page 1, is: 


Enter on line 12 


, page 1: 


line lid. 


page I, is: 


Enter on line 12 


, page 1: 


Not over 


$1,000 


. . 16% of the amount 


on line lid. 


Over— 


But not over— 




of excess over— 


Over- 


But not over— 




of excess over— 


$38,000 


— $40,000. . 


$14,215, plus 54% 


— $38,000 


$1,000 


— $2,000. . 


$160, plus 17.5% 


— $1,000 


$40,000 


— $44,000. . 


$15,295, plus 56% 


— $40,000 


$2,000 


— $4,000. . 


$335, plus 19% 


— $2,000 


$44,000 


— $50,000. . 


$17,535, plus 58.5% 


— $44,000 


$4,000 


— $6,000. . 


$715, plus 22% 


— $4,000 


$50,000 


— $52,000. . 


$21,045, plus 59.5% 


— $50,000 


$6,000 


— $8,000. . 


$1,155, plus 23%, 


- $6,000 


$52,000 


— $60,000. . 


$22,235, plus 61% 


— $52,000 


$8,000 


— $10,000. 


$1,615, plus 27% 


— $8,000 


$60,000 


— $64,000. 


$27,115, plus 62% 


— $60,000 


$10,000 


— $12,000. 


$2,155, plus 29% 


— $10,000 


$64,000 


— $70,000. . 


$29,595, plus 63.5% 


— $64,000 


$12,000 


— $14,000. 


$2,735, plus 327o 


— $12,000 


$70,000 


— $76,000. 


$33,405, plus 65% 


— $70,000 


$14,000 


— $16,000. 


$3,375, plus 34% 


— $14,000 


$76,000 


— $80,000.. 


$37,305, plus 66% 


— $76,000 


$16,000 


— $18,000. 


$4,055, plus 37.5% 


— $16,000 


$80,000 


— $88,000. 


$39,945, plus 67% 


— $80,000 


$18,000 


— $20,000. 


$4,805, plus 39% 


— $18,000 


$88,000 


— $90,000. 


$45,305, plus 69% 


— $88,000 


$20,000 


— $22,000. 


$5,585, plus 42.5% 


— $20,000 


$90,000 


— $100,000. 


$46,685, plus 69.5% 


— $90,000 


$22,000 


— $24,000. 


$6,435, plus 43.5% 


— $22,000 


$100,000 


— $120,000. 


$53,635, plus 71% 


— $100,000 


$24,000 


— $26,000. 


$7,305, plus 45.5% 


— $24,000 


$120,000 


— $140,000 


$67,835, plus 72.5% 


— $120,000 


$26,000 


— $28,000. 


$8,215, plus 47% 


— $26,000 


$140,000 


— $160,000 


$82,335, plus 74% 


— $140,000 


$28,000 


— $32,000. 


$9,155, plus 48.5% 


— $28,000 


$160,000 


— $180,000 


$97,135, plus 75% 


— $160,000 


$32,000 


— $36,000. 


$11,095, plus 51.5% 


— $32,000 


$180,000 


— $200,000. 


$112,135, plus 75.5% 


— $180,000 


$36,000 


— $38,000. 


$13,155, plus 53% 


— $36,000 


$200,000 




$127,235, plus 77% 


— $200,000 







059—18—78044-1 



162 FACSIMILES OF TAX RETURNS, 1964 

1964 TAX TABLES 

FOR PERSONS WITH INCOMES UNDER $5,000 WHO DO NOT ITEMIZE ON PAGE 2 OF FORM 1040 



11 



Find your tax after selecting the proper Tax Table from those listed Ijelow based on your filing status (line 1, page 1, Form 1040). 

TABLE A — For Married Persons Filing Joint Returns TABLE D — For Married Persons Filing Separate Returns, 

TABLE B — For Single Persons Using Minimum Standard Deduction 

TABLE C— For Married Persons Filing Separate Returns, TABLE E— For Unmarried Head of Household 
Using 10-Percent Standard Deduction 

Tables A, B, and E reflect the lowest tax after taking both the 10 percent standard deduction and the minimum standard deduc- 
tion into account. 



TAX TABLE A— FOR MARRIED PERSONS FILING JOINT RETURNS* 
This table is designed to allow for the standard deduction 

Read down the income columns below until you find the line covering the total income (line 9, page 1, Form 1040). Then 
across to the appropriate column headed by the number corresponding to the number of your exemptions, this is your tax. 



If your Iota 


income is- 


And the number of exemptions ||::| 


If your total 


income is— 




And the 


number of exemp 


onsis- 






But less 


2 


3 [ '1 




But less 


2 


3 


4 


5 


6 




If 4 or more 


If 7 or more 


At least 


than 




tliere is 


At least 


than 










no tax 




Your ta 


is- ^>A 


Your tax is— 


$0 


$1, 600 


$0 


so^^ 


$2, 800 


$2, 825 


$195 


$82 


$0 


$0 


$0 


1,600 


1,625 


2 


" J 


2, 825 


2,850 


199 


86 











1,625 


1.650 


6 


i 


2. 850 


2,875 


203 


90 











1,650 


1.675 


10 


:. 


2, 875 


2,900 


207 


94 











1,675 


1.700 


14 


, -^ 


2, 900 


2,925 


212 


98 











1,700 


1,725 


18 


1 


" 2.92.5" 


2.950 


216 


102 











1,725 


1,750 


22 


2. 950 


2.975 


220 


100 











1,750 


1,775 


26 


(» , 2 


2, 975 


3.000 


224 


110 











1,775 


1,800 


30 





3,000 


3. 050 


230 


116 


4 








1,800 


1,825 


34 





3. (».>0 


3, 100 


23S 


124 


12 








1.825 


1,850 


38 





,3, 100 


3,150 


247 


132 


20 








1,850 


1,875 


42 





3, l.-.O 


3,200 


255 


140 


28 








1,875 


1,900 


46 


-." 


3, 200 


3, 250 


2G3 


148 


36 








1,900 


1,925 


50 





3, 250 


3,300 


271 


1,56 


44 








1,925 


1,950 


54 


■ 


3,300 


3,350 


280 


164 


52 








1,950 


1, 975 


58 


'. 


3, 350 


3,400 


288 


172 


60 








1.975 


2,000 


62 


; 


3, 400 


3, 450 




181 


68 








2,000 


2.025 


66 


; 


3,450 


3,500 


304 


189 


76 








2,025 


2.050 


70 





3, 500 


3,550 


313 


197 


84 








2,050 


2.075 


74 





3, 550 


3.600 


321 


205 


92 








2.075 


2. 100 


78 


.. 


3, 600 


3, 650 


329 


214 


100 








2,100 


2,125 


82 


, ' . 


3. 650 


3,700 


338 


222 


108 








2,125 


2, 150 


86 


-1 


3.700 


3.750 


347 


230 


116 


4 





2,150 


2,175 


90 


\ 


3, 750 


3,800 


356 


238 


124 


12 





2,175 


2,200 


94 


,*' 


3,800 


3,850 


364 


247 


132 


20 





2,200 


2,225 


98 


'* 


3, 850 


3.900 


373 


255 


140 


28 





2,225 


2.250 


102 


.f 
, 


3. 900 


3,950 


382 


203 


148 


36 





2,250 


2, 275 


100 


3, 950 


4.000 


391 


271 


156 


44 





2,275 


2,300 


110 


* 


4, 000 


4, 050 


399 


280 


164 


52 





2,300 


2,325 


114 


2 


4, 050 


4,100 


407 


2SS 


172 


60 





2,325 


2,350 


118 


6 


4, 100 


4, 1.50 


415 


296 


181 


68 





2,350 


2, 375 


122 


10 


4, 150 


4,200 


423 


304 


189 


76 





2,375 


2,400 


126 


14 . - 


4,200 


4, 250 


430 


313 


197 


84 





2,400 


2,425 


130 


18 ; 4 


4, 250 


4,300 


438 


321 


205 


92 





2,425 


2,450 


134 


22 ■ '. 


4, 300 


4,350 


446 


329 


214 


100 





2,450 


2,475 


138 


26 1 


4, 3.>0 


4,400 


4.54 


338 


222 


108 





2,475 


2,500 


142 


30 . 


4. 400 


4,450 


462 


347 


230 


116 


4 


2,500 


2,525 


146 


34 ' fe 
38 1 1 


4, 450 


4, 500 


470 


356 


238 


124 


12 


2,525 


2,550 


150 


4.500 


4,550 


478 


364 


247 


132 


20 


2,550 


2,575 


154 


42 ' J 


4. 550 


4,600 


486 


373 


255 


140 


28 


2,575 


2, 600 


158 


46 U»t 


4.600 


4,650 


493 


382 


263 


148 


36 


2,600 


2,625 


162 


50 1 


4, 650 


4,700 


501 


391 


271 


156 


44 


2,625 


2, 650 


166 


54 • 


4,700 


4,750 


509 


399 


280 


164 


52 


2,650 


2,675 


170 


58 , , 


4, 750 


4,800 


518 


408 


288 


172 


60 


2,675 


2,700 


174 


i-,2 .1 


4,800 


4, 850 


526 


417 


296 


181 


68 


2,700 


2,725 


179 


66 \ 


4, 850 


4,900 


534 


426 


304 


189 


76 


2,725 


2, 750 


183 


70 ' 


4. 900 


4,950 


.542 


434 


313 


197 


84 


2,750 


2,775 


187 


71 'i 


4, 950 


5,000 


550 


443 


321 


205 




2.775 


2,800 


191 


78 ? 

















ic This table may also be used by certain widows or i 



,hu qualify for special lai i 



c59— 10— 78014-: 



FACSIMILES OF TAX RETURNS, 1964 163 

12 TAX TABLE B— FOR SINGLE PERSONS 

This table Is designed to allow for the standard deduction. 

Read down the income columns below untU you find the line covering the total income (line 9, page 1, Form 1040). Then read 
across to the appropriate.column headed by the number corresponding to the number of your exemptions, this is your tax. 



It your total income is— 


And the number ot exemptions is— P^ II your total Income is- 


And the number of exemptions is— 




But less 
than 


1 


2 


3 pi 


But less 
than 


1 


2 


3 


4 


5 


6 


At least 


"«,"jirili *«'east 


If 7 or more 
there is 
no lax 




Younaxis— Wm 


Your tax is- 


$0 


$900 


$0 


$0 


$0 ii $2, 450 


$2, 475 


$261 


$140 


$26 


$0 


$0 


$0 


900 
925 
950 
975 


925 

950 

975 

1,000 


2 
6 
10 

14 








ii; 2, 475 
ii 2, 500 
ii 2, 525 
iii 2,550 


2,500 
2,525 
2,550 
2,575 


266 
270 
275 
279 


144 
148 
152 
156 


30 
34 
38 
42 




















1.000 
1.025 
1.050 
1.075 


1,025 
1,050 
1,075 
1,100 


18 
22 
26 
30 








is 2,575 
m 2, 600 
lis 2, 625 

Ii;; 2, 650 


2,600 
2,625 
2,650 
2,675 


284 
288 
293 
297 


160 
165 
169 
173 


46 
50 
54 

58 




















1.100 
1.125 
1.150 
1.175 


1,125 
1.150 
1.175 
1.200 


34 
38 
42 
46 








im: 2, 675 
im 2, 700 
ii 2, 725 

ii; 2,750 


2,700 
2.725 
2,750 

2,775 


302 
306 
311 
315 


178 
182 
187 


62 
66 
70 
74 




















1.200 
1.225 
1.250 
1.275 


1.225 
1.250 
1.275 
1.300 


50 
54 
58 
62 








m 2, 775 
m 2, 800 
mi 2, 825 
oil 2.850 


2,800 
2,825 
2,850 
2,875 


320 
324 
329 
333 


195 
200 

204 
208 


78 
82 
86 
90 




















1.300 
1,325 
1.350 
1.375 


1.325 
1.350 
1.375 
1.400 


66 
70 
74 

78 








im 2, 875 
ii: 2, 900 
WM 2. 925 

i;s;:;: 2,950 


2.900 
2.925 
2,950 
2,975 


338 
343 
348 
353 


213 
217 
222 
226 


94 
99 
103 
107 




















1.400 
1,425 
1,450 
1.475 


1,425 
1,450 
1,475 
1,500 


82 

90 
94 








mm 2, 975 
m 3, 000 

iii 3, 050 
ii 3. 100 


3,000 
3,050 
3,100 
3,150 


358 
365 
374 
383 


230 
237 
246 
255 


HI 

117 
125 
134 



4 
12 
20 














1.500 
1.525 
1.550 
1.575 


1,525 
1,550 
1,575 
1,600 


99 
103 
107 
111 








ii 3, 150 
ii 3, 200 
ii 3, 250 
ii 3, 300 


3,200 
3,250 
3,300 
3,350 


392 
401 
410 
419 


264 
273 
282 
291 


142 
150 
158 
167 


28 
36 
44 
52 














1.600 
1.625 
1.650 
1.675 


1,625 
1.650 
1.675 
1,700 


115 
119 
123 
127 


2 
6 
10 
14 


m 3, 350 
m 3, 400 
ii : 3, 450 
m 3. 500 


3,400 
3,450 
3,500 
3, 550 


428 
437 
446 
455 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 

84 














1.700 
1.725 
1,750 
1,775 


1,725 
1,750 
1,775 
1,800 


132 
136 
140 
144 


18 
22 
26 
30 


;i| 3, 550 
iii 3, 600 
iii 3, 650 

;ii 3, 700 


3,600 
3,650 
3,700 
3,750 


464 
473 

482 
491 


336 
345 
355 
365 


211 
219 

228 
237 


92 
101 
109 
117 





4 








1,800 
1,825 
1.850 
1,875 


1,825 
1,850 
1,875 
1,900 


148 
152 
156 
160 


34 J 
38 
42 
46 


i;si; 3, 750 

iii 3, 800 
ii;* 3, 850 
ii 3, 900 


3,800 
3,850 
3,900 
3,950 


500 
509 
518 
527 


375 
385 
395 
405 


246 
255 
264 
273 


125 
134 
142 
150 


12 
20 
28 
36 








1,900 
1,925 
1,950 
1.975 


1.925 
1,950 
1,975 
2,000 


165 
169 
173 

178 


50 
54 
58 
62 


ii 3, 950 

;ii 4, 000 
iii 4, 050 
mm 4, 100 


4,000 
I 050 
4,100 
4,150 


536 
545 
554 
563 


415 
425 
434 
443 


282 
291 
300 
309 


158 
167 
176 

184 


44 
52 
60 
68 








2.000 
2.025 
2.050 
2.075 


2.025 
2,050 
2,075 
2,100 


182 
187 
191 
195 


66 
70 
74 
78 


iii 4, 150 

mm 4. 200 

ii 4.250 

;ii 4, 300 


4,200 
4,250 
4,300 
4,350 


572 
581 
590 
599 


452 
461 

470 
479 


318 
327 
336 
345 


193 
202 
211 
219 


76 
84 
92 
101 








2.100 
2.125 
2.150 
2,175 


2,125 
2,150 
2,175 
2,200 


200 
204 
208 
213 


82 
86 
90 
94 


pi 4, 350 
pi 4, 400 
ii 4, 450 
pi; 4, 500 


4,400 
4,450 
4,500 
4,550 


608 
617 
626 
635 


488 
497 
506 
515 


355 
365 
375 
385 


228 
237 
246 
255 


109 
117 
125 
134 



4 
12 
20 


2,200 
2.225 
2.250 
2.275 


2,225 
2,250 
2,275 
2,300 


217 
222 
226 
230 


99 
103 
107 
111 


pi 4, 550 
Iii 4, 600 
iii 4, 650 
iii; 4, 700 


4.600 
4,650 
4,700 
4,750 


644 
653 
662 
671 


524 
533 
542 
551 


395 
405 
415 
425 


264 
273 
282 
291 


142 
150 
158 
167 


28 
36 
44 
52 


2,300 
2,325 
2,350 
2.375 


2,325 
2,350 
2.375 
2.400 


235 
239 
243 
248 


115 
119 
123 

127 


2 mm 4. 750 
6 ii 4,800 
10 ii 4, 850 
14 m 4, 900 


4,800 
4,850 
4,900 
4,950 


680 
689 
698 
707 


560 
569 

578 
587 


435 
445 
455 
465 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 
84 


2,400 
2,425 


2.425 
2,450 


252 
257 


132 
136 


18 ii 4, 950 

22 ii 


5,000 


716 


596 


475 


336 


211 


92 



164 



FACSIMILES OF TAX RETURNS, 1964 



TAX TABLE C— FOR MARRIED PERSONS FILING SEPARATE RETURNS, USING 10PERCENT STANDARD DEDUCTION 



13 



Read down the income columns below until you find the line covering the total income (line 9, page 1, Form 1040). Then read 
across to the appropriate column headed by the number corresponding to the number of your exemptions, this is your tax. 



If your total income is- 



925 

950 

975 

1,000 



1,025 
1,050 
1,075 
1,100 



1,125 
1, 150 
1,175 
1,200 



1,225 
1,250 
1,275 
1,300 



1,325 
1,350 
1,375 
1,400 



1,425 
1,450 
1,475 
1,500 



1,525 
1,550 
1,575 
1,600 



1,625 
1,650 
1,675 
1,700 



1,725 
1,750 
1,775 
1,800 



1,825 
1,850 
1,875 
1,900 



1,925 
1,950 
1,975 
2,000 



2,025 
2,050 
2,075 
2,100 



2,125 
2,150 
2,175 
2,200 



2,225 
2,250 
2,275 
2,300 



2,325 



And the number of exemptions i 



If your total income is- 



m $2, 325 
i 2, 350 



wm 
ii 
m 

WM 

ii 2,475 

iij 2,500 

mm 2,525 

Pi 2,550 



m 
mm 
m 

WM 



2,375 
2,400 
2,425 
2,450 



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 



3,850 
3,900 



3,950 
4,000 
4,050 
4,100 







J)_ 









^ 

2 lli 4,350 

5 II 4,400 

9 ii 4, 450 

13 ii 4,500 

16 III 4,550 



4,150 
4,200 
4,250 
4,300 



4,650 
4,700 



4,750 
4,800 
4,850 
4,900 



45 ii 4,950 



But less 
than 



$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— 



$251 
255 



$147 
150 



404 
413 
422 
431 



440 
449 
458 
467 



FACSIMILES OF TAX RETURNS, 1964 165 

14 TAX TABLE D— FOR MARRIED PERSONS FILING SEPARATE RETURNS, USING MINIMUM STANDARD DEDUCTION 

Read down the income columns below until you find the line covering the total income (line 9, page 1, Form 1040). Then read 
across to the appropriate column headed by the number corresponding to thp number of your exemptions, this is your tax. 



If your total income is— 


And the number of exemptions is- H " ><>■" *<>"l ^""""^ 's— 


And the number of exemptions is— 


At least 


But less 
ttian 


1 


2 


If 4 or more H At least 
there is no H 


But less 
than 


■ 


2 


3 


4 


5 


6 


7 

If 3 or more 
there is no 




Your tax is— B 


Your tax is— 


$0 


$800 


$0 


$0 


$0 ■ $2,400 


$2, 425 


$270 


$148 


$34 


$0 


$0 


$0 


$0 


800 
825 
850 
875 


825 
850 
875 
900 


2 
6 
10 
14 








■ 2,425 
H 2, 450 
H 2. 475 
H 2, 500 


2,450 
2,475 
2,500 
2,525 


275 
279 
284 
288 


152 
156 
160 
165 


38 
42 
46 
50 


























900 
925 
950 
975 


925 

950 

975 

1,000 


18 
22 
26 
30 








m 2,525 
■ 2,550 
H 2,575 
■ 2. 600 


2,550 
2,575 
2,600 
2,625 


293 
297 
302 
306 


169 
173 
178 
182 


54 
58 
62 
66 


























1,000 
1,025 
1,050 
1.075 


1,025 
1,050 
1,075 
1,100 


34 
38 
42 
46 








a 2,625 
OH 2, 650 
^ 2,675 

11 2, 700 


2,650 
2,675 
2,700 
2.725 


311 
315 
320 
324 


187 
191 
195 
200 


70 
74 
78 
82 



























1,100 
1,125 
1,150 
1,175 


1,125 
1,150 
1,175 
1,200 


50 
54 
58 
62 








H 2, 725 
■ 2,750 
■ 2,775 

a 2, 800 


2.750 
2,775 
2,800 
2,825 


329 
333 
338 
343 


204 
208 
213 
217 


86 
90 
94 
99 






a 




















1,200 
1,225 
1,250 
1,275 


1,225 
1,250 
1,275 
1,300 


66 
70 
74 
78 








ii 2,825 
Om 2, 850 
H 2, 875 
11 2, 900 


2,850 
2,875 
2,900 
2.925 


348 
353 
358 
363 


222 
226 
230 
235 


103 
107 
111 
115 





2 




















1,300 
1,325 
1,350 
1.375 


1.325 
1.350 
1.375 
1.400 


82 
86 
90 
94 








m 2, 925 
Ii 2, 950 
Ii 2, 975 
Ii 3,000 


2.950 
2,975 
3,000 
3,050 


368 
373 
378 
385 


239 
243 
248 
266 


119 
123 
127 
134 


6 
10 
14 
20 




















1,400 
1,425 
1,450 
1,475 


1,425 
1,450 
1,475 
1,500 


99 
103 
107 
111 


Q 





m 3,050 
9 3, 100 
11 3, 150 
OH 3, 200 


3,100 
3,150 
3,200 
3,250 


395 
405 
415 
425 


264 
273 
282 
291 


142 
150 
158 
167 


28 
36 
44 
52 




















1,500 
1,525 
1,550 
1,575 


1,525 
1,550 
1,575 
1,600 


115 
119 
123 
127 


2 
6 
10 
14 


oS 3.250 
oH 3,300 
■ 3, 350 
^ 3, 400 


3,300 
3,350 
3,400 
3,450 


435 
445 
455 
465 


300 
309 
318 
327 


176 
184 
193 
202 


60 
68 
76 
84 




















1,600 
1,625 
1,650 
1,675 


1,625 
1,650 
1,675 
1,700 


132 
136 
140 
144 


18 
22 
26 
30 


H 3> 450 
ra 3' 500 
H 3. 550 
OH 3, 600 


3.500 
3.550 
3.600 
3.650 


475 
485 
495 
605 


336 
345 
355 
365 


211 
219 
228 
237 


92 
101 
109 
117 



4 
12 
20 














1.700 
1,725 
1,750 
1,775 


1,725 
1,750 
1,775 
1,800 


148 
152 
156 
160 


34 

42 
46 


H 3, 650 
M 3,700 
a 3,750 
P 3, 800 


3.700 
3,750 
3,800 
3.850 


515 
525 
535 

545 


375 
385 
396 

406 


246 
255 
264 
273 


125 
134 
142 
150 


28 

44 
52 














1,800 
1,825 
1,850 

1,875 


1,825 
1,850 
1.875 
1.900 


k65 
169 
173 
178 


50 
64 
58 
62 


B 3, 850 
H 3, 900 
■ 3. 950 
OH 4, 000 


3.900 
3,950 
4,000 
4,050 


555 
565 
575 
585 


415 
426 
435 
445 


282 
291 
300 
309 


158 
167 
176 
184 


60 
68 
76 
84 














1.900 
1.925 
1,950 
1,975 


1,925 
1,950 
1,975 
2.000 


182 
187 
191 
195 


66 
70 

74 
78 


H 4,050 
■ 4. 100 
■ 4. 150 
B 4,200 


4,100 
4,150 
4,200 
4,250 


595 
605 
615 
625 


455 
465 
475 
486 


318 
327 
336 
346 


193 
202 
211 
219 


92 
101 
109 
117 



4 
12 
20 








2,000 
2,025 
2,050 
2,075 


2.025 
2,050 
2,075 
2,100 


200 
204 
208 
213 


82 
86 
90 
94 


H 4, 250 
■ 4, 300 
B 4,350 
m 4,400 


4.300 
4,350 
4,400 
4,450 


635 
646 
656 
665 


496 
506 
516 
626 


355 
366 
378 
386 


228 
237 
246 
255 


125 
134 
142 
150 


28 
36 
44 
62 








2.100 
2,125 
2,150 
2,175 


2,125 
2,150 
2,175 
2.200 


217 
222 
226 
230 


99 
103 
107 
111 


OB 4, 450 
m 4,500 
H 4,550 
■ 4, 600 


4,500 
4,550 
4.600 
4,650 


675 
686 
695 
705 


535 
645 
555 
565 


395 
405 
415 
425 


264 
273 
282 
291 


168 
167 
176 
184 


60 
68 
76 
84 








2,200 
2,225 
2,250 
2.275 


2.225 
2,250 
2,275 
2,300 


235 
239 
243 
248 


115 
119 
123 
127 


2 m 4.650 
6 4.700 
10 H 4,750 
14 m 4. 800 


4,700 
4.750 
4,800 
4,850 


715 
725 
735 
746 


575 
585 
595 
605 


435 
445 
455 
465 


300 
309 
318 
327 


193 
202 
211 
219 


92 
101 
109 
117 



4 
12 
20 


2.300 

2,325 

2,350 

. 2.375 


2,325 
2,350 
2,375 
2,400 


252 
257 
261 
266 


132 
136 
140 
144 


18 H 4.850 
22 M 4,900 
26 m 4.950 


4,900 
4,950 
5,000 


768 
769 
781 


615 
625 
636 


475 
485 
495 


336 
345 
355 


228 
237 

246 


125 
134 
142 


28 
36 
44 



166 FACSIMILES OF TAX RETURNS, 1964 

TAX TABLE E— FOR UNMARRIED HEAD OF HOUSEHOLD 
This table is designed to allow for the standard deduction. 

Head down the income columns below until you find the line covering the total income (line 9, page 1, Form 1040) 



15 



Then read 
across to the appropriate column headed by the number corresponding to the number of your exemptions, this is your tax. 



If your total income is— 


And tlie number of exemptions is— ^ If your total Income is— 


And the number of exemptions is— 




But less 
than 


1 


2 


^ P 




But less 
than 


1 


2 


3 


4 


5 


6 


At least 


If 4 or more H 
there is K 
no tax p',,/ 


At least 


there is 
no tax 




Your tax is— [ j^ 


Your tax is- 


$0 
900 
925 
950 


$900 
925 
950 
975 


,0 

6 
10 


$0 





'I ft 
'=s 
-; 


$2, 450 
2.475 
2.500 
2.525 


$2. 475 
2,500 
2,525 
2.550 


$258 
263 
267 
272 


$138 
142 
146 
150 


$26 
30 
34 
38 


$0 





$0 





$0 





975 
1,000 
1,025 
1,050 


1.000 
1.025 
1.050 
1,075 


14 
18 
22 
26 








> . 


2.550 
2,575 
2.600 
2.625 


2.575 
2,600 
2,625 
2.650 


276 
280 
285 
289 


154 
158 
162 
167 


42 
46 
50 
54 




















1.075 
1,100 
1, 125 
1,150 


1.100 
1.125 
1.150 
1, 175 


30 
34 
38 

42 








; " 
. -. 

i, 


2.650 
2,675 
2,700 
2,725 


2.675 
2,700 
2,725 
2,750 


293 
298 
302 
307 


171 
175 
180 
184 


58 
62 
66 
70 




















1, 175 
1,200 
1,225 
1,250 


1.200 
1,225 
1,250 
1,275 


46 
50 
54 
58 








-■« 
' - 
;' . 

s-'j 


2.750 
2.775 
2.800 
2.825 


2,775 
2.800 
2.825 
2, 850 


311 

315 
320 
324 


188 
193 
197 
202 


74 

78 
82 




















1.275 
1,300 
1.325 
1.350 


1.300 
1.325 
1.350 
1.375 


62 

70 

74 








. 
' * 

: , 
0- % 


2.850 
2,875 
2.900 
2.925 


2,875 
2.900 
2.925 
2.950 


328 
333 
337 
342 


206 
210 
215 
219 


90 
94 
98 
102 




















1.375 
1.400 
1.425 
1.450 


1,400 
1.425 
1,450 
1,475 


7k 

82 
86 
90 








1 2. 950 
0*1 2. 975 
0,4 3. 000 
1 . 3. 050 


2.975 
3.000 
3.050 
3.100 


347 
352 
358 
367 


223 
228 
234 
243 


106 
110 
116 
124 




4 
12 














1.475 
1.500 
1.525 
1,550 


1.500 
1.525 
1.550 
1.575 


94 
98 
102 
106 








" ,1 3, 100 
i 3, 150 
4 3. 200 
\ 3. 250 


3.150 
3.200 
3.250 
3.300 


375 
384 
392 
401 


252 
261 
269 
278 


132 
140 

148 
156 


20 
28 
36 

44 














1.575 
1.600 
1,625 
1.650 


1.600 
1,625 
1.650 
1.675 


110 
114 
118 
122 



2 
6 
10 


3. 300 
; 1 3. 350 
1 3. 400 
, j 3, 450 


3.350 
3.400 
3,450 
3.500 


410 
418 
427 
435 


287 
296 
304 
313 


164 
173 
182 
191 


52 
60 
68 
76 














1.675 
1.700 
1.725 
1.750 


1,700 
1.725 
1,750 
1,775 


126 
130 
134 
138 


14 
18 
22 
26 


3, 500 
. 3, 550 
i 3, 600 
\ , 3. 650 


3,550 
3.600 
3.650 
3,700 


444 
452 
461 
469 


322 
331 
340 
349 


199 
208 
217 
226 


84 
92 
100 
108 














1,775 
1.800 
1,825 
1,850 


1.800 
1.825 
1.850 
1.875 


142 
146 
150 

154 


30 
34 
38 

42 


; 1 3. 700 
3.750 
■ 3. 800 
3. 850 


3,750 
3,800 
3.850 
3.900 


478 
487 
495 
504 


359 

378 
387 


234 
243 
252 
261 


116 
124 
132 
140 


4 
12 
20 
28 








1,875 
1.900 
1,925 
1,950 


1,900 
1,925 
1.950 
1.975 


158 
162 
167 
171 


46 
50 
54 
58 


3, 900 
. 3, 950 
4. 000 
4, 050 


3,950 
4,000 
4,050 
4. 100 


512 
521 
529 
538 


397 
406 
415 
424 


269 
278 
287 
296 


148 
156 
164 
173 


36 

44 
52 
60 








1,975 
2,000 
2,025 
2,050 


2,000 
2.025 
2.050 
2,075 


175 
180 
184 
188 


62 
66 
70 
74 


'■ 4, 100 
; 4. 150 
4. 200 

' ": 4. 250 


4,150 
4.200 
4.250 
4,300 


546 
555 
563 

572 


432 
441 
449 
458 


304 
313 
322 
331 


182 
191 
199 
208 


76 
84 
92 








2.075 
2.100 
2.125 
2.150 


2.100 
2.125 
2,150 
2.175 


193 
197 
202 
206 


78 
82 

90 


■' 4,300 
t 4,350 
4, 400 
' i 4, 450 


4,350 
4,400 
4,450 
4.500 


581 
589 
598 
606 


467 
475 
484 
492 


340 
349 
359 
368 


217 
226 
234 
243 


100 
108 
116 
124 




4 
12 


2.175 
2,200 
2.225 
2,250 


2.200 
2.225 
2,250 
2.275 


210 
215 
219 
223 


94 
98 
102 
106 


=- *! 4, 500 
; 1 4. 550 
' ; 4, 600 
'■■ 4. 650 


4.550 
4.600 
4,650 
4,700 


615 
623 
632 
640 


501 
509 
518 
526 


378 
387 
397 
406 


252 
261 
269 

278 


132 

140 
148 
156 


20 
28 
36 
44 


2,275 
2,300 
2,325 
2,350 


2.300 
2.325 
2.350 
2.375 


228 
232 
237 
241 


110 
114 
118 
122 


' 4, 700 
2 1 - 4, 750 
eh 4, 800 
10 1 *J 4, 850 


4,750 
4,800 
4,850 
4.900 


649 
658 
666 
675 


535 
544 
552 
561 


416 
425 
435 
444 


287 
296 
304 
313 


164 
173 
182 
191 


52 
60 
68 
76 


2,375 
2,400 
2.425 


2.400 
2.425 
2.450 


245 
250 
254 


126 
130 
134 


14 f"^ 4. 900 
18 j 4. 950 

22 V% 


4,950 
5.000 


683 
692 


569 
578 


454 
463 


322 
331 


199 
208 


84 
92 



oS9— 16— 78044-J 



FACSIMILES OF TAX RETURNS, 1964 167 

INSTRUCTrONS FOR SCHEDULE B (Form 1040) B-1 

PENSIONS • ANNUITIES • RENTS • ROYALTIES • PARTNERSHIPS • ESTATES • TRUSTS • RETIREMENT INCOME CREDIT 



Part I 



PENSIONS AND ANNUITIES 



Noncontributory Annuities.— If the em- 
ployee did not contribute 'to the cost and 
was not subject to tax on his employer's 
contributions, the full amount of an an- 
nuity or a pension of a retired employee 
must be included in his income. 

Other Annuities. — Amounts received 
from other annuities, pensions, endow- 
ments, or life insurance contracts, 
whether paid for a fixed number of 
years or for life, may have a portion of 
the payment excluded from income. 
The following types come under this 
rule: (a) pensions where the employee 
has either contributed to its cost or has 
been taxed on his employer's contribu- 
tions, and (b) amounts paid for a reason 
other than the death of the insured un- 
der an annuity, endowment, or life 
insurance contract. 

Part I 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 sepa- 
rate Part I for each one. 

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. Once you have 
obtained the multiple it remains un- 
changed 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 
Internal Revenue Service as well as 
from some employers and insurance 
companies. 

Special Rule for Certain Types of Em- 
ployees' Annuities. — There is a special 
rule provided for amounts received as 
employees' annuities where part of the 
cost is contributed by the employer and 
the amount contributed by the em- 
ployee will be returned within 3 years 
from the date of the first payment re- 
ceived under the contract. If both of 
these conditions are met, then all the 
payments received under the contract 
during the first 3 years are to be ex- 
cluded from income until the employee 



recovers his cost (the amount contrib- 
uted by him plus the contributions made 
by the employer on which the employee 
was previously taxed) ; thereafter all 
amounts received are fully taxable. 
This method of computing taxable in- 
come also applies to the employee's 
beneficiary if the employee died before 
receiving any annuity or pension pay- 
ments. 

Example: An employee received $200 
a month from 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 taxed. The retired employee 
would be paid $7,200 during the first 
3 years, which amount exceeds his con- 
tribution of $4,925. He would exclude 
from income all the payments received 
from the annuity until he has received 
$4,925. All payments received there- 
after are fully taxable. 

Death Benefit Exclusion. — If you receive 

pension or annuity payments as a bene- 
ficiary of a deceased employee, and the 
employee had received no retirement 
pension or annuity payments, you may 
be entitled to a death benefit exclusion 
of up to $5,000. Consult the Internal 
Revenue Service. 

Part II 

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 royalties from copyrights, pat- 
ents, mineral leases, and similar rights, 
report the total amount received in this 
part. If property other than money 
was received as rent, its fair market 
value should be reported. 

In the case of buildings you can de- 
duct depreciation, as explained on page 
B-2. You can also deduct all ordinary 
and necessary expenditures on the prop- 
erty such as taxes, interest, repairs, in- 
surance, agent's commissions, mainte- 
nance, and similar items. However, 
you cannot deduct capital investments 
or improvements but must add them to 
the basis of the property for the pur- 
pose of depreciation. For example, a 
landlord can deduct the cost of minor 
repairs but not the cost of major im- 
provements such as a new roof or re- 
modelingj. 



If You Rent Part of Your House.— If you 

rent out only part of your property, you 
can deduct only that portion of your 
expenses which relates to the rented 
portion. If you cannot determine 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 depreciation and other 
expenses. 

Room rent and other space rentals 
should be reported as business income 
in separate Schedule C (Form 1040) 
if services are rendered to the occupant ; 
otherwise, report such income in this 
part. If you are engaged in the busi- 
ness of selling real estate, you should 
report rentals received in separate 
Schedule C. 

Part III 

PARTNERSHIPS AND ESTATES 
OR TRUSTS 

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 his share of the partnership's 
income. 

Include in this part your share of the 
ordinary income (whether actually re- 
ceived 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 schedule of 
your individual return are shown in 
Schedule K of the partnership return. 
Your share of income of the following 
classes should be entered on the appro- 
priate lines and schedules of your 
return : 

Dividends. 
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 this 
case the partner's share of partnership 
self-employment net earnings (or loss) 
should be entered on line 5(b) , separate 
Schedule C-3. Members of farm part- 
nerships should use Schedule F-1 to 
figure self-employment tax. 



059—16—78044 



168 



FACSIMILES OF TAX RETURNS, 1964 



B-2 



Small Business Corporations.— If you are 

a shareholder in a small business corpo- 
ration which elects to have its current 
taxable income taxed to its stockholders, 
you should report your share of both 
the distributed and undistributed cur- 
rent taxable income as ordinary income 
on line 1 of this part except that portion 
which is reportable as a long-term capi- 
tal gain in separate Schedule D. Nei- 
ther type of income is eligible for the 
dividends received credit or the exclu- 
sion. Your share of any net operating 
loss should be treated just as if the loss 
were from a proprietorship. 

Estates and Trusts. — If you are a ben- 
eficiary of an estate or trust, report your 
taxable portion of its income whether 
you receive it or not. Your share of 
income of the following classes should 
be entered on the appropriate lines and 
schedules of your return : 
Dividends. 
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 this 
part. Any depreciation (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 regarding these items may 
be obtained from the fiduciary. 
Part IV— 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 de- 
velopment added to it. 

The cost (or other basis) to be re- 
covered 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 computing the basis on which de- 
preciation 'may be taken for personal 
property, other than livestock, salvage 
value need not be taken into account, if 
it does not exceed 10% of the cost or 
other basis of the property. If the sal- 
vage value exceeds 10%, only the excess 
need be taken into account. These pro- 
visions apply to property with a useful 
life of 3 years or more which was ac- 
quired after October 16, 1962. 

The basis of any property which was 
reduced in a prior year by the invest- 
ment credit should be increased as of 



the first day of your taxable year be- 
ginning in 1964 by the amount of the 
reduction previously required. 

Alternative Depreciation Guidelines and 

Rules. — Revenue Procedure 62-21, 
dated July 12, 1962, sets forth alterna- 
tive standards and procedures for de- 
termining depreciation. These guide- 
line lives for guideUne classes (broad 
categories not item-by-item) are in 
most cases substantially shorter than 
those previously used. These guideline 
lives and rules are applicable to all de- 
preciable property including existing 
assets as well as new acquisitions; how- 
ever, they do not supersede existing 
rules and procedures for any taxpayer 
who wishes to continue to use them. 

Taxpayers who wish to use the new 
provisions must use them for all assets 
in a particular guideline class. Tax- 
payers may use class lives equal to or 
longer than the guideline lives for 3 
years and may continue to use them 
thereafter if certain standards are met 
and replacement practices are con?'st- 
ent with the lives used. 

The depreciation schedule provided 
on the return is to be used for reporting 
depreciation under both Revenue Pro- 
cedure 62-2 1 and previously prescribed 
rules and standards. Although de- 
preciation reported under the revenue 
procedure should be shown on the basis 
of group and guideline class, it is not 
necessary to disturb your present de- 
preciation accounts. 

Revenue Procedure 62-21 is con- 
tained in IRS Publication No. 456 (Rev. 
8-64). This publication may be ob- 
tained from the Superintendent of Doc- 
uments, Government Printing Office, 
Washington, D.C., 20402, for 30 cents. 

Following is a brief description of the 
various methods of depreciation which 
may be used under either Revenue Pro- 
cedure 62-21 or previously prescribed 
rules and standards. 

Straight-Line Method. — To compute 

the deduction, determine the cost (or 
other basis) of the property and deduct 
the total depreciation allowed or allow- 
able. Divide the result by the number 
of years of useful life remaining to the 
asset — the quotient is the depreciation 
deduction. 

Declining Balance Method. — A uniform 

rate is applied each year to the remain- 
ing cost or other basis of property (with- 
out adjustment for salvage value) de- 
termined at the beginning of such year, 
but depreciation must stop when the 



unrecovered cost is reduced to salvage 
value. For property acquired before 
January 1, 1954, or used property when- 
ever 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 oth- 
er basis of an asset acquired after De- 
cember 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 3 years 
or more, and (3) that the original use 
of the asset commenced with the tax- 
payer and commenced after Decem- 
ber 31, 1953. 

(a) Declining balance method. — 
This method may be used with a rate 
not in excess of twice the applicable 
straight-line rate. 

(b) Sum of the years-digits meth- 
od. — The deduction for each year is 
computed by multiplying the cost or 
other basis of the property (reduced by 
estimated salvage value) by the num- 
ber of years of useful life remaining 
(including the year for which the de- 
duction is computed) and dividing the 
product by the sum of all the digits cor- 
responding 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-M). For the first year 
five-fifteenths of the cost reduced by 
estimated salvage value would be al- 
lowable, for the second year four- 
fifteenths, etc. 

(c) Other methods. — A taxpayer 
may use any consistent method which 
does not result at the end of any year 
in accumulated allowances 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-thircfs of the property's useful life. 

Additional First-Year Depreciation.— You 

may elect to write off, in the year as- 
sets are first subject to depreciation, 20 
percent of the cost (before adjustment 
for salvage value) of the assets if they 
are tangible personal property (e.g., 
equipment, macliinery, etc.) acquired 
by purchase for use in a trade or busi- 
ness or to be held for the production 
of income. If the aggregate cost of 
these assets exceeds $10,000 ($20,000 
for joint return) the additional de- 
preciation is limited to $2,000 ($4,000 
for joint return). 



FACSIMILES OF TAX RETURNS, 1964 



B-3 



The additional depreciation is limited 
to property with a remaining useful life 
of 6 years or more and which was not ac- 
quired from a person (other than a 
brother or sister) whose relationship to 
the taxpayer would result in the dis- 
allowance of losses. Normal deprecia- 
tion may also be taken on the cost of 
the asset reduced by the first-year 
depreciation. 

The additional first-year depreciation 
for the year should be entered in total 
on the line provided in the depreciation 
schedule and is not to be included on the 
line used to show the regular deprecia- 
tion of an asset. 

Part V 

RETIREMENT INCOME CREDIT 

You may qualify for this credit which 
is generally 17 percent of retirement in- 
come if you received earned income in 
excess of $600 in each of any 10 calen- 
dar years — not necessarily consecutive — 
before the beginning of your taxable 
year. 

The term "earned income" means 
wages, salaries, or professional fees, etc., 
received as compensation for personal 
services actually rendered. It does not 
include any amount received as an an- 
nuity or pension. If you were engaged 
in a trade or business in which both per- 
sonal services and capital were material 
income-producing factors, a reasonable 



allowance as compensation for the per- 
sonal services rendered by you, not in 
excess of 30 percent of your share of the 
net profits of such business, shall be con- 
sidered 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 
income, 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 before the end 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 
income in his return. 

(b) In the case of an individual who 
is 65 or over before the end of his tax- 
able year, income from pensions, annui- 
ties, 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 de- 
preciation or any other expenses. Roy- 
alties are not considered rents for this 
purpose. ) 



Except as provided in the "Alterna- 
tive computation" set forth below, the 
amount of the retirement income used 
for the credit computation may not ex- 
ceed $1,524 reduced by: 

(a) any amount received and ex- 
cluded from income as a pension or an- 
nuity under the Social Security Act and 
Railroad Retirement Acts and other 
tax-exempt pensions or annuities. This 
reduction does nqt include ( 1 ) that part 
of a pension or annuity which is ex- 
cluded from income because it repre- 
sents, in effect, a return of capital or 
tax-free proceeds of a like nature, or (2) 
amounts excluded from income received 
as compensation for injury or sickness 
or under accident or health plans; and 

(b) certain adjustments for earned 
income. 

Alternative computation: The maxi- 
mum amount of retirement income to be 
used in figuring the credit for retirement 
income has been increased from $1,524 
to $2,286 for taxpayers who file joint re- 
turns (both 65 years of age or over) but 
who are presently limited to $1,524 be- 
cause either the husband or wife did not 
have earned income in excess of $600 in 
each of any 10 prior calendar years. 

If you meet these requirements also 
complete the Alternative Computation 
to determine which computation results 
in the larger credit. 



CUT ALONG THIS LINE 



Other Infernal Revenue publicatiom containing helpful tax information . . . 

They will be available on or about December I and may be obtained from your District Director or by mailing this order blank 

to the Superintendent of Documents, Washington, D.C., 20402. 

[— lYOUR FEDERAL INCOME TAX, 1965 Edition. Issued each year to 



'help taxpayers in preparing their income tax returns, this useful 
booklet contains more detailed information than the instructions which 
accompany Form 1040. 160 pages, with illustrations. 
Catalog No. T 22.44:965 50 cents per copy 



rnTAX GUIDE FOR SMALL BUSINESS. 1965 Edition. Published an- 
' — ' nually, this tax guide answers, in plain layman's language, the Fed- 
eral tax questions of Corporations, Partnerships, and Sole Proprietor- 
ships. 160 pages with illustrations. 
Catalog No. T 22.19/2:Sm 1/965 50 cents per copy 



To: Supt. of Documents 
Govt. Printing Office 
Washington, D.C. 20402 



ORDER FORM 



Enclosed find $ Please send me the publications I ha 

checked above. 



Street address - 



Postal ZIP code 



J.S. GOVERNMENT PRINTING OFFICE 

DIVISION OF PUBLIC DOCUMENTS 

WASHINGTON, D.C. 20402 



OFFICIAL BUSINESS 



RETURN AFTER 5 DAYS 



Name 

Street address . 



City, State, and Postal ZIP code . 



Fill in both parts, enclose check or money order and mail in envelope. 



170 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE C 
(Form 1040) 



PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION 

(Sole Proprietorships) 
(Compute social security self-employment tax on Schedule C-3 (Form 1040)) 



1964 



Attach this schedule to your income tax return. Form 1040 

Name and address as shown on page 1, Form 1040 



Partnerships, joint ventures, etc., must file on Form 1065 



A. Principal business activity ; product 

(See separate instructions) (For example: retail— hard' --.--.---.- .-i 



B. Business name ..-. 
D. Business location . 



(Number and street or rural route 

Indicate method of accounting; CH cash; □ 



holesale— tobacco; services— legal; manufacturing— Jurnitur< 

C. Employer Identification Number 

(cTty'or'posioftice)" (State) 



n other. 



Gross receipts or gross sales $ Less: Returns and allowanc es $- 

Inventory at beginning of year (If different than lost year's closing inventory 

attach explanation) 

Merchandise purchased $ , less cost of 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-1) 

Total of lines 2 through 6 

Inventory at end of this year 

Cost of goods sold (line 7 less line 8) 

Gross profit (subtract line 9 from line 1) 

OTHER BUSINESS DEDUCTIONS 

Depreciation (explain in Schedule C-2) 

Taxes on business and business property (explain in Schedule C-1) 

Rent on business property 

Repairs (explain in Schedule C- 1 ) 

Salaries and wages not included on line 4 (exclude any paid to yourself) .... 
Insurance 



Legal and professional fees 

Commissions 

Amortization (attach statement) 

Retirement plans, etc. (other than your share — see instructions) 

Interest on business indebtedness 

Bad debts arising from sales or services 

Losses of business property (attach statement) 

Depletion of mines, oil and gas wells, timber, etc. (attach schedule) . . 

Other business expenses (explain in Schedule C-1) 

Total of lines 1 1 through 25 

Net profit (or loss) (subtract line 26 from line 10). Enter here; on line 
Part II, page 2, Form 1040 • 



, Schedule C-3; and on line 5, 



SCHEDULE C-1. EXPLANATION OF LINES 6, 12, 14, AND 25 ^^ 


Line No. 


Explanation 


Amount 


Line No. 


Explanation 


Amount ^^A 






$.._ 






$_ 



























































































































FACSIMILES OF TAX RETURNS. 1964 



171 



Schedule C (Form 1040) 1964 



Page 2 



SCHEDULE C-2. EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED ON LINE 11 

This schedule is designed for taxpayers using the alternative guidelines and administrative procedures described in Revenue Procedure 
62-21 OS well as for those taxpayers who wish to continue using procedures authorized prior to the revenue procedure. Where double 
headings appear use the first heading for the new procedure and the second heading for the older procedure. 



1. Group and guidehnfi class 
Description of property 


2, Cost or other basis 
_a,beg.n,ng^.>,ear_ 

Cost or ottier 
basis 


3. Asset additions in 
Date acquired 


4. Asset retirements 


5. Depreciation 

allowed or allowable 

in prior years 


6. Metliod 

ot 
computing 
depreciation 


7^.ss^e 
Rale (%) 


8. Depreciation for 


















" 




































































































































2. Totals 














3. Less- Amount of depreciation claimed elsewhere in Schedule C 




4. Balance — Enter here and on line 11, page 1 









5. Cost or other basis of fully depreciated assets still 



INVENTORY QUESTIONS 

1. Was inventory valued at — Cost D; lower of cost or market Q; other Q- If other, attach explanation. 

2. Hove write-downs been made to inventory? Yes Q No D- If "Yes," were the write-downs computed on the 

basis of: 

(a) □ Percentage reductions from parts of the inventory 

(b) n Percentage reductions from the total inventory 

(c) n Valuation of individual items. 

If "a" or "b" is checked, enter the percentage of write-downs %. For "a," "b," 

or "c" enter the dollar amount of write-downs $ 

(If not available, estimate and indicate that the figure is an estimate.) 

3. Was the inventory verified by physical count during the year? 

Yes n No D- If "No," attach explanation of how the closing inventory was determined. 

4. Was there any substantial change in the manner of determining quantities, costs or valuations between the 

opening and closing inventories? Yes Q No Q- II "Yes," attach explanation. 
NOTE: If a direct answer cannot be given to a question, attach explanation. 

EXPENSE ACCOUNT INFORMATION 

Enter information with regard to yourself and 
your five highest paid employees. In determin- 
ing the five highest paid employees, expense 
account allowances must be added to their sal- 
aries and wages. However, the information 
need not be submitted for any employee for 
whom the combined amount is less than $10,000, 
or for yourself if your expense account allow- 
ance plus line 27, page 1, is less than $10,000. 
See separate instructions for Schedule C, for 
definition of "expense account." 

Did you claim a deduction for expenses connected with: (If answer to any question is "YES," check applicable 
boxes within that question.) 



Name 


Expense account 


salaries and Wages 


Owner 




xxxxxxxxxxxxxx 


1 






2 






3 












5 







G. 



A hunting lodge D, working ranch or farm Q. fish- 
ing camp D- resort property D, pleasure boat or 
yacht D- or other similar facility D? (Other than 
where the operation of the facility was your princi- 
pal business.) D YES D NO 
Vacations for you or members of your family, or 
employees or members of their families? (Other 
than vacation pay reported on Form W-2.) 
DYES QNO 



The leasing, renting, or ownership of a hotel room 
or suite Q. apartment D. or other dwelling □, 
which was used by you, your customers, employees, 
or members of their families? (Other than use by 
yourself or employees while in business travel 
status.) n YES □ NO 

The attendance of members of your family or your 
employees' families at conventions or business 
meetings? D YES Q NO ,6-783C4-. 



172 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE C-3 

(Form 1040) 

U.S. Trea.'iury Dcparliiicl 



COMPUTATION OF SOCIAL SECURITY SELF-EMPLOYMENT TAX 

Attach this schedule to your income tax return, Form 1040. 
See instructions on page 2. 



1964 



P- If you had wages of $4,800 or more which were subject to social security taxes, do not fill in this page. 

^ Complete only one Schedule C-3; if you had more than one business, combine profits (or losses) from all of your 

businesses on this Schedule. 
^ Each self-employed person must file a separate schedule. 



NAME AND ADDRESS (as shown on page 1 



NAME OF SELF-EMPLOYED PERSON (as shown i 



Social Security 



I. Net proiit (or loss) shown on line 27 Schedule C (Form 1040) (Enter combined 
amount if more than one business) 



2. Add to net profit (or subtract from net loss) losses of business property shown on line 

23, Schedule C 

3. Total (or difference) 

4. Net income (or loss) from excluded services or sources included on line 3 

Specify excluded services or sources -- -- - --- 

5. Net earnings (or loss) from self-employment — 

(a) From business (line 3 less any amount on line 4) 

(b) From partnerships, joint ventures, etc. (other than farming) 

(c) From service as a minister, member of a religious order, or a Christian Science practitioner. Enter only 

if you have filed or are filing Forrrt 203 1 

(d) From farming reported on line 2 (or line 3 if option used), separate Schedule F-1 (Form 1040) 

(e) From service with a foreign government or international organization 

6. Total net earnings (or loss) from self-employment reported on line 5. Enter here and in item F below 

(If line 6 is under $400, you are not subject to self-employment tax. Do not fill in rest of page.) 



7. The largest amount of combined wages and self-employment earnings subject to social 

security tax is 

8. Total wages, covered by social security, paid to you during the taxable year. (For 

"Covered" wages see "F.l.C.A. Wages" box on Form W-2.) Enter here and in 
item G, below 

9. Balance (line 7 less li:ie 8) 



10. Self -employment income— line 6 or 9, whichever is smaller. Enter here and in item H, below 

11. Self-employment tax— If line 10 is $4,800, enter $259.20; if less, multiply the amount on line 10 by 5.4%. 

Enter this amount here and on line 1 5, page 1 , Form 1040 



Do not detach 



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. 



SCHEDULE SE (Form 1040) 
U.S. Treasuiy Department 
Internal Revenue Service 



U.S. REPORT OF SELF-EMPLOYMENT INCOME 

For crediting to your social security account 



1964 



Indicate year covered by this return (even though income was received only in pari ol year) ; 
a Calendar year 1964 D: or other taxable year beginning 1964, ending 

■ 11 less than 12 months, was short year due to (a) D Death, or (b) Q Change in accounting period, 
or (o) D Other. 


PLEASE DO NOT WRITE IN THIS SPACE 




BUSINESS ACTIVITIES SUBIECT TO SELF-EMPLOYMENT TAX (Grocery store, restaurant, etc.) 

B. 






BUSINESS ADDRESS (number and street, city or post ollice. State, Postal ZIP code) 

c. 






„ SOCIAL SECURITY ACCOUNT NUMBER ^^ 
"• OF PERSON NAMED IN ITEM E BELOW ^^ 








r.fR^5^M\1^E°r 

$ 






E. 


PRINT OR TYPE NAME OF SELF-EMPLOYED PERSON AS SHOWN ON SOCIAL SECURITY CARD 


R 


PRINT OR TYPE HOME ADDRESS (number and street or rural route) 


ENTER AMOUNT 
G. FROM LINE 8, IF ANY 




i 


(City or post oHice. Stale, and postal ZIP code) 


ENTER AMOUNT 
H.1 FROM LINE 10 ^ 




u 













16-78364- 


GF 


o 



FACSIMILES OF TAX RETURNS, 1964 



173 



INSTRUCTIONS FOR SOCIAL SECURITY SELF-EMPLOYMENT TAX 



Page 2 



In general, every individual deriving self-employment income 
during the taxable year 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 1 through 1 1 . 
This tax must be paid regardless of age and even though the 
individual is receiving social security benefits. 

Ministers, members of 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 Christian Science practitioners are 
not automatically covered by the Social Security Act, but may 
elect to be covered by filing 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. 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 this Schedule, file it with 
Form 1040, and then hie Form 2031 as promptly as possible to 
make your election. 

Ministers and members of religious orders who desire coverage 
shall in addition to their other items of income include for the pur- 
pose 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 parsonage, and the value of meals and 
lodging furnished them for the convenience of their employers. 

U.S. citizens employed by foreign governments or inter- 
national organizations. — A U.S. citizen employed in the United 
States, Puerto Rico, Guam, .'\merican Samoa, or the Virgin Islands 
by a foreign government, an ins'rumentality wholly owned by a 
foreign government, or an international organization which is 
organized under the International Organizations Immunities Act, 
is subject to the social security self-employment tax. These em- 
ployees should report their income from such employment on line 
5(e), of this Schedule, compute their self-employment tax, and file 
the schedule with their Form 1040. In item B of Schedule SE, enter 
"Employee of foreign government, etc." 

Farm income. — Farmers report farm income and net earnings 
from farm self-employment on separate Schedules F and F-1 
(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-employment. Use line 4 to exclude any such amounts 
reported on separate Schedule C (Form 1040) that should not be 
taken into account in figuring your self-employment income. 

Doctors of 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 performance 
of service as a Christian Science practitioner, unless such Chris- 
tian 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 duties required by such order, unless such minister 
or member of a religious order elects by hling Form 2031 to be 
covered by the Social Security Act, as explained above. 

Employees and public officials. — Income (fees, salaries, etc.) 
from the performance 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 (except as indicated above). 

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 Part- II, Sched- 
ule B (Form 1040). However, rental income from a farm is not ex- 
cluded 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 one or more farm products 
on his land. Such income represents farm earnings and should 
be reported on separate Schedules F and F-1. 

Payments for the use or occupancy of rooms or other space where 
services are also rendered to the occupant, such as rooms in hotels, 
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 this Schedule. 
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 Part II, 
page 2, 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 includable in inventory if on hand at the close of the taxable 
year, nor (2) property held primarily for 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 entered on line 8, 
Part II, page 2, Form 1 040. 

No deductions for personal exemptions. — The deductions for 
personal exemptions are not allowable in determining net earnings 
from self-employment. 
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 Schedule C-3, including Schedule SE, for 
any one year. 
JOINT RETURNS 

Where husband and wife file a joint income tax return, Schedule 
C-3 (Form 1040) should show the name of the one with self- 
employment income. Where husband and wife each have self- 
employment income, separate Schedules C and C-3 must be 
attached for each. In such cases the total of amounts shown on 
line 27 of each separate Schedule C should be entered on line 5, 
Part II, page 2, Form 1040, and the aggregate self-employment tax 
(line 1 1) Schedule C-3 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, 
Schedules C and C-3 should be attached to the return of the one 
with self-employment income. Community income included on 
Schedule C must be allocated between the two returns (on line 5, 
Part II. page 2, 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. In 
the case of a husband and wife partnership, like other partnerships, 
the distributive share of each should be entered in Part III, Sched- 
ule B (Form 1040), for income tax purposes. For self-employment 
tax purposes the distributive share of each partner should be entered 
on line 5(b), of this Schedule (except that farm partnership earnings 
are to be reported on line 1(b), Schedule F-1 (Form 1040) rather 
than on line 5(b) of this schedule). 

No'e. — If a member of a continuing partnership dies, a portion of 
the deceased partner's distributive share of the partnership's ordi- 
nary income (or loss) for the taxable year of the partnership in 
which he died must be included in the partner's net earnings from 
self-employment. In such cases consult your nearest Internal Rev- 
enue Service office as to how to report. 
SCHEDULE SE (Form 1040) 

Schedule SE, which is the lower portion of this Schedule, pro- 
vides the Social Security Administration with the information on 
self 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 are filed by 
husband and wife, Schedule SE (Form 1040) must show only 
the name of the one with the self-employment income. 
However, if both had self-employment income, a separate 
Schedule SE must be filed by each. 



174 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE D 

(Form 1040) 



U.S. Treasury Department— Internal Revenue Cervice 

GAINS AND LOSSES FROM SALES OR EXCHANGES OF PROPERTY 

Attach this schedule to your income tax return, Form 1040 



1964 



Name and address as shown on page 1 of Form 1040 



Part I— CAPITAL ASSETS 



Short-term capital gains and losses — assets held not more than 6 months 


a. Kind of properly and how acquired 

(i( necessary, attach statement of descriptive 

details not shown below) 


b. Date acquired 
(mo., day, yr.) 


c. Date sold 
(mo., day, yr.) 


d. Gross sales price 


e. Depreciation 
allowed (or 

allowable) since 

acquisition 
(attach schedule) 


f. Cost or other basis, 
cost of subseouent 

improvements (if not 
purchased, attach 
explanation) and 
expense of sale 


g. Gain or loss 
(d plus e less f) 


1. _ _ 






































































2. Enter your share of net short-term gain (or loss) from partnership 










4. Net short-term gain (or loss) from line 


si, 2, and 3 











Long-temn capital gains and losses — assets held more than 6 montlis 




S. Enter gain from line 3, Part II 






































































































Total 


long-term gross 


sales price. . 










6. Enter tha full amount of your shore of net long-term gain (or loss) 


from nnrtnershlna 


and fiduciaries 










8. Net long-term gain (or loss) from lines 5, 6, and 7 • 




9. Combine the amounts shown on lines 4 and 8, and enter the net gain (or loss) he 
10a. I£ line 9 shows a GAIN— Enter 50% of line 8 or 50% of line 9, whichever is 






smaller. (Enter zero if there is a 
tax) 






IV 






11. I£ line 9 shows a LOSS— Enter here and on line 1, Part IV the smallest of the following: (a) the amount on line 9; 
(b) the amount on line 11 b, page 1 of Form 1 040 computed without regard to capital gains and losses; or (c) $ 1 ,000 . • 





Port II— GAIN FROM DISPOSITION OF DEPRECIABLE PROPERTY UNDER 
SECTIONS 1245 AND 1250— assets held more than 6 months 

Where double headings appear, use the first heading for section 1245 and the second heading for section 1250. 



a. Kind of property and how acquired (if necessary, attach 
statement of descriptive details not shown below) 


b. Dale acquired 
(mo., day. yr.) 


c. Date sold 
(mo., day, yr.) 


d. Gross sales price 


e. Cost or other basis, cost of 
subsequent improvements (if 
not purchased, attach expla- 
nation) and expense of sale 


1. 




































1 




f. Depreciation allowed (or allowable) since acquisition 
(attach schedule) 


(e,efss^urfV..^rn'd%.2) 


h. Total gain 
(d less g) 


1. Ordinary gain 
(lesseroff-2oth) 

OR 

(see instructions) 


j. Other gain 


f-1. Prior to January 1, 1962 
Prior to January 1, 1964 


f-2. After December 31, 1961 
After December 31, 1953 






















































2, Part IV « 








3. Total other gain. E 
is combined with oth 


nter here and on line 5, 
er gains and losses from 


Part I; however, if the gains do not exceed the 
section 1231 property enter the total of colun 


n 


sses when this amount 
J on line 1, Part III.. 





FACSIMILES OF TAX RETURNS, 1964 



175 



Schedule D (Form 1040) 1964 



Page 2 



Part III— PROPERTY OTHER THAN CAPITAL ASSETS 






a. Kind ol properly and how acquired 

(i( necessary, aitach statement of descriptive 

details not stiown below) 


b. Date acquired 
(mo., day, yr.) 


c. Date sold 
(mo., day, yr.) 


d. Gross sales price 


e. Depreciation 

allowed (or 
allowable) since 

acquisition 
(attach schedule) 


f. Cost or other basis, 

cost of subsequent 
improvements (if not 
purchased, attach 
explanation) and 
expense of sale 


t- Gain or loss 
(d plus e less () 


1. Enter gain from line 3, Part II 


































































3. Net gain for loss) from lines 1 and 2. 


Enter here a 


ad on line 3, Part IV 





Part IV— TOTAL GAINS OR LOSSES FROM SALE OR EXCHANGE OF PROPERTY 



1. Net gain (or loss) from either line 10b or 11, Part I. 

2. Total ordinary gain from line 2, Part II 

3. Net gain (or loss) from line 3, Part III 

4. Total net gain (or loss), combine lines 1, 2, and 3. 



Enter here and on line 6, page 2, Part II, Form 1040 



COMPUTATION OF ALTERNATIVE TAX 

It will usually be to your advantage to use the alternative tax if the net long-term capital gain exceeds the net short-term capital loss, or ii there 
is a net long-term capital gain only, and you are hUng (a) a separate return with taxable income exceeding $20,000, or (b) a joint return, or as 
a surviving husband or wife, with taxable income exceeding $40,000, or (c) as a head of household with taxable income exceeding $32,000. 



1. Enter the amount from line 1 1 d, page 1 , Form 1 040 , 

2. Enter amount from line 10a, Part I on reverse side 

3> Subtract line 2 from line 1 , 

4. Enter tax on amount on line 3 (use applicable tax rate schedule on page 10 of Form 1040 instructions) 

5. Enter 50% of line 2 

6. Alternative tax (add lines 4 and 5). It smaller than the tax figured on the amount on line lid, page 1 of Form 

1040, enter this alternative tax on line 12, page 1, Form 1040 and write "Alterna'ive" to left of entry 



INSTRUCTIONS— (References 

GAINS AND LOSSES FROM SALES OR EXCHANGES OF 
PROPERTY. — Report details in appropriate part or parts. 

In column (a) of Parts I, II, and III, use the following symbols to 
indicate how the property was acquired: "A" for purchase on the 
open market; "B" for exercise of stock option or through employee 
stock purchase plan; "C" for inheritance or gift; "D" for exchange 
involving carryover of prior asset basis; and "E" for other. 

"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 customers 
in the ordinary course of his txado or business; 

(c) property used in the trade or business of a character which is 
subject to the allov/ance for depreciation provided in section 1 67; 

(d) real property used in the trade or business of the taxpayer; 

(e) certain government obligations issued on or after March 1 , 1 94 1 , 
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 compositions, etc.; 
or 

(g) accounts and notes receivable acquired in the ordinary course 
ot 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 to the employee in 
one taxable year, on account of the employee's separation from 
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. (See section 402(a).) 

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 
(seo 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 

070—16—78366-1 U.S. OOVEBNMEia PBINTINO OFFICE 



to the Internal Revenue Code) 

of these gains exceeds the total ot these losses. U the total of these 
gains doe£ net 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 Part I of Schedule D. In the event o' 
a net loss, all these transactions should be entered in Part III oi 
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 (including 
in certain cases unharvested crops sold with the land) and de- 
preciable property if they are used in the trade or business and 
held for more than 6 months, 

(b) sale, e:-:change, or involuntary conversion of livestock held fo: 
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, coal, or domestic 
iron ore, to which section 631 applies, and 

(d) the involuntary conversion of capital assets held more tlian 6 
months. 

See sections 1231 and 631 for specific conditions applicable. 

Gains from section 1245 or 12S0 property held more than 6 
nionths (Part II). — (Report .iny gain from such property 
held for 6 months or less in Part III.) Except as provided 
below section 1 245 property means depreciable (a) personal property 
(other than livestock) including intangible personal property; 

(b) tangible real property (except for buildings and their structural 
components) if used as an integral part of manufacturing, produc- 
tion, or extraction, or of furnishing transportation, communications, 
electrical energy, gas, v/ater, or sewage disposal services, or used 
as a research or storage facility in connection with these activities; 
and (c) elevators or escalators. 

Except as provided below section 1 250 property means depreciable 
real property (otlier than section 1245 property). 

See sections 1245(b) and 12S0(d) for exceptions and limita- 
tions involving; (a) disposition by gift; (b) transfers at death 

(c) certain tax-free transactions; (d) like kind exchanges, invo: 
untary conversior.s; (e) sales or exchanges to effectuate FCC pol 
icies and exchanges to comply with S.E.C. orders; (f) property dis- 
tributed by a partnership to a partner; and (g) disposition oi 
principal residence (section 1250 only). 

Column f of Part II. — In computing depreciation allowed or 

allowable for elevators or escalators, enter in column f-1 deprecia 

(Instructions continued on reverse side of duplicotej 



176 

Schedule D (Form 1040) 1964 



FACSIMILES OF TAX RETURNS, 1964 



Part III— PROPERTY OTHER THAN CAPITAL ASSETS 






a. Kind of properly and how acquired 

(if necessary, attacli statement of descriptive 

details not stiown below) 


b. Date acquired 
(mo., day. yr.) 


c. Date sold 
(mo..day.yr.) 


d. Gross sales price 


e. Depreciation 

allowed (or 
allowable) since 

acquisition 
(attach schedule) 


f. Cost or other basis, 
cost ot subsequent 

improvements (if not 
purchased, attach 
explanation) and 
expense of sale 


g. Gam or loss 
(d plus e less 1) 


































































3. Net gain (or loss) from lines 1 and 2 


. Enter here and on line 3, 


Part IV 





Part IV— TOTAL GAINS OR LOSSES FROM SALE OR EXCHANGE OF PROPERTY 



1. Net gain (or loss) from either line 10b or 1 1, Part I. 

2. Total ordinary gain from line 2, Part 11 

3. Net gam (or loss) from line 3. Part 111 

4. Total net gain (or loss), combine lines 1, 2, and 3. 



Enter here and on line 6, page 2, Part II, Form 1040. 



COMPUTATION OF ALTERNATIVE TAX 

It will usually be to your advantage to use the alternative tax 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 faling (a) a separate return with taxable income exceeding $20,000, or (b) a joint return, or as a 
surviving husband or vnie, with taxable income exceeding $40,000, or (c) as a head of household virith taxable income exceeding $32,000. 



1. Enter the amount from line lid, page 1, Form 1040 

2. Enter amount from line 10a, Part I on reverse side. . 



3. Subtract line 2 from line 1 

4. Enter tax on amount on line 3 (use applicable tax rate schedule on page 10 of Form 1040 instructions) 

5. Enter 50% of line 2 

6. Alternative tax (add lines 4 and 5). If smaller than the tax figured on the amount on line lid, page 1 of Form 
1040, enter this alternative tax on line 12, page 1, Form 1040 and write "Alternative" to left of entry 



INSTRUCTIONS (Continued 

tion prior to luly 1, 1963, and in column f-2 depreciation after 
June 30, 1963. 

Column i o£ Part 11, section 1250 property only. — If held for 
more than 6 months, but not more than 1 year, enter the smaller of 

(1) column h, or 

(2) column f-2. 

If held for more than 1 year, enter the result of multiplying the 
smaller of 

(1) column h, or 

(2) column f-2 less the amount of depreciation computed for 
the same period using the straight line method, 

by the percentage obtained by subtracting from 100%, one per- 
centage point for each full month the property was held in excess 
of 20 months. Where substantial improvements have been made 
within the preceding 10 years, see section 1250(f). 

Basis. — In determining gain or loss 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 ot 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). Gen- 
erally, the basis of property acquired by inheritance is the fair 
market value at the date of death. For special cases involving prop- 
erty acquired from a decedent, see section 1014. 

Installment sales. — ^If you sold personal property for more than 
$1,000 or real property regardless of amount, you may be eligible 
to report any gain under the installment plan if (1) there is no pay- 
ment in the year of sale, or (2) the payments in the year of sale do 
not exceed 30 percent of the selling price. The election must be 
made in the year of sale even though no payment was received in 
that year. Contact any Internal Revenue Service office for more 
complete information. See section 453. 

For treatment of a portion of payments as "unstated interest" 
on deferred payment sales, see section 483. 

Sale of personal residence. — Tax on a portion or all of the gain 
from the sale ot your principal residence may be deferred if: 

(a) within 1 year after (or before) the sale, you purchase an- 
other residence and use it as your principal residence; or 

(b) within 1 year after (or before) the sale, you begin con- 
struction of a new residence and use it as your principal 
residence not later than 18 months after the sale. 



from reverse side of original) 

If you sold property for $20,000 or less on or after your 65ih 
birthday which was owned and used by you as your principal res- 
idence for at least 5 of the last 8 years any gain on the sale need 
not be included in income. If the property was sold for more than 
$20,000 part of the gain must be taken into income. 

Contact your nearest Internal Revenue Service office for full de- 
tails or to obtain Form 2119 which may be used to report the sale 
or exchange or to figure your new basis. 

Nonbusiness debts. — If a debt, such as a personal loan, becomes 
totally worthless within the taxable year, the loss resuUing 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 (g) and describe in column (a). Part I. 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. 

Limitation on allowable capital losses. — If line 9, Part I, 
shows a net loss, the loss shall be allowed as a deduction, only to the 
extent of the smaller of (1) line 1 lb (or line 9 if tax table is used), 
page 1, Form 1040 computed without capital gains (losses), or (2) 
$1,000. The excess of such allowable loss over the lesser of items 
(1) and (2) above is called "capital loss carryover." Any such 
carryover loss may be carried forward indefinitely. Short-term 
losses and long-term losses are to be carried over by category. In 
computing the carryover, short-term losses must be considered first. 

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 an 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 benehciary 
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 included with the amount claimed on line 1 7a, page 1 , Form 1 040. 
The remaining 75 percent should be added to the basis of your stock. 



FACSIMILBS OF TAX RETURNS. 1964 



177 



SCHEDULE F 

(Form 1040) 



SCHEDULE OF FARM INCOME AND EXPENSES 

(Compute social security self-employment tat on Schedule F-1 (Form 1040)) 

Attach this schedule to your income tax return. Fonn 1040 



1964 



Name and address as shown on Fo 



Business name and address 

Location oi farm(s) and number of acres in each farm . 



FARM INCO ME F OR TAXABLE YEAR-CAS H REC EIPTS AKD PISBPRSEMEMTS METHOD 

PARTI. Repoit receipts liom sale o( livestock held piimonly for snie in II ' '^ 

purposes; repLi 



SALES OF MARKET LIVESTOCK AND PRODUCE RAISED AND HEiD PRIMARILY FOR SALE 


OTHER FARM INCOME 


Kind 


Quantity 


1. Amount 


Kind 


Quantity 


2. Amount 


Items 


3. Amount 


Cattle 




$ 


Eggs 




s 


Mdse. rec'd for produce 


$ — - - - 











Sheep 






Poultry, dressed. . 






Breeding fees 










Wool 






Wood and lumber 




Poultry 






Honey. .. . 










Bees 






Sirup and sugar. 
Other (specify): 






Patronage dividends, rebates 
















Hay 










Agricultural program pay- 




Cotton 














Tobacco 












Other (specify): 




Vegetables 














Fruits and nuts . 

















Dairy products. 
















Total of c 


olumns 1 


2, and 3. Ent 


sr here and on line 


1 of Part IV below 


$ 



SALES OF PURCHASED LIVESTOCK AND OTHER ITEMS PURCHASED FOR RESALE 



a. Descnption 


b. Date acquired 


c. Amount received 


d. Cost or ollrer basis 


e. Profit (or loss) 






$ 




$ 






































Totals (enter amount from column e, on line 2 of Part IV below) . . . 


|ilil|i$ 


$ 


$ 



PART m. FARM EXPENSES FOR TAXABLE YEAIt (tee i i^tractZotu) 

(Do not include personal or living expenses or exoenses nol iilributable lo production oi farm income, sucN as Uxes, insur.inre, rep.iiis. etc.. on your 


....... D 


Items 


1. Amount 


Items 


2. Amount 


Items 


?.. ,» mount 


Labor hired 


$ 


Veterinary, medicine. . . 
Gasoline, fuel, oil 


5— -..- 


Retirement plans, etc. 
(other than your share- 
See instructions) 


$ 












Taxes 








Seed, plants purchased . 












Fertilizers, lime 




Utilifies 








Machine hire 












Supplies purchased 






7 r::::;:::::::::::::::;;;; 




Conservation expenses, 
lere and on line 4 of Par 


"""'^i! 




Total of columns I, 2, and 3. Enter \ 
(accrual method) 


IV below (cash method) or line 6, Part VII 


$ 



PARfnT SOMMARY OF INCOME AND DEDDCTIONS-CASH RECEIPTS AND DISBORSEMENTS METHOD 




1. Sale of livestock and produce raised 


$ - 




4. rarm expenses (from Part III) 


$ 




2. Profit (or loss) on sale of purchased live- 

stock and other purchased items 

3. Gross profits* 


S. Other farm deductions (specify): 






$ 




7. Total deductions 


$ 




8. Net farm profit (or loss) (subtract line 7 from line 3). Enter here and on line 7, Part II, page 2, Form 1040. 
Make your computation of self-employment income and the self-employment tax on Schedule F-1 


$ 





!thod of computing r 



1 self-employment. (See line 3. Schedule F-1 (Fonn 1040)) 



178 



FACSIMILES OF TAX RETURNS, 1964 



Page 2 



Schedule F (Form 1040) J 964 _ 

PART V. DEPRECIATION <see iiutractions) (Do not include property you and your family occupy as a dwelling, its furnishings, and other items used for personal purposes) 
This schedule is designed for taxpayers using the alternative guidelines and adrninistrotive procedures described in Revenue Procedure 
62-21 as weU as for those taxpayers who wish to continue using procedures authorized prior to the revenue procedure. Where double 
headings appear use the first heading for the new procedure and the second heading for the older procedure. 



1. Group and guideline class 


2. Cost or other basis 
at beginning ol year 


3. Asset additions 
in year (amount) 


4. Asset retirements 
in year (aniounl) 

(applicable only to 
Re». Proc. 62-21) 


5. Deprecation 

allowed or allowable 

ir. prior years 


6. Method 

Compulins 
Depreciation 


7. Class 

- OR - 
Rate ^%) 
or lite 


8. Depreciation lor 


Description of property 


Cost or other basis 


Date acquired 




, , , ■ ,■ /I ^ ■ 1 1 • -t 1 ' 





































































































































































































































Total cost or other basis.. 












2. Total depreciation (enter 

3. Cost or other basis of full 


on line 5 of Part 
f depreciated ass 


V (cash method) or line 7, Part VII (accrual method)) . . 


■I 






1 1 





PART VI. FARM INCOME FOR TAXABIE YEAR-ACCRUAL METHOD 

(Do not include sales of livestock held for draft, breeding, or dairy purposes: report such sales on Schedule D (Form 1040), and omit t 


cm from 'On harid at beginning 


of year" column) 


Description 

(Kind ot livestock, crops, 

or other products) 


On hind at beginning ol year 


Purchased during year 


Raised 
during year 


Consumed or 

lost duiing 

year 


Sjld durinj year 


On hand at end of year 


Quantity 


Inventory value 


Quantity 


Amount paid 


Quantity 


Quantity 


Quantity 


Amount leceived 


Quantity 


Inventory value 






$ 




$ 








$... 




$ 





































































































































































































Totals (enter her 
Part VII belov 


e and in 


$ 

(Enter on line 3) 




$ _, 








$ .-- 

(Enteron line 1(b)) 




$ 






(Enter online 4) 


(Enter on line 1(a)) 



SUMMARY OF INCOME AND DEDUCTIONS— ACCRUAL METHOD 



1(a). Inventory of livestock, crops, and products at end of year. 

(b). Sales of livestock, crops, end products during year 

(c). Other farm income (specify): 



Total of line 1 (c) 

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 (subtract the sum of lines 3 and 4 from line 2)* 



6. Farm expenses(fromPart ill) $, 

7 . DepreciaUon (from Part V) . . I . ^ . 

8. Other farm deductions | 
(specify): 



Total cf line 8 

9. Total deductions $ 



10. Net farm profit (or loss) (subtract line 9 from line 5). Enter here and on hne 7, Part II, page 2, Form 1040. 
Make your computation of self-employment income ond the self-employment tax on Schedule F-1 . . . . ... $ 



- optional method oi computir 



1 self-employment. (See line 3, Schedule F-1 (Form 1040)) 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE F-1 
(Form 1040) 



COMPUTATION OF SOCIAL SECURITY SELF-EMPLOYMENT TAX 
ON FARM EARNINGS (For social security) 

Attach this schedule to your income tax return, Form 1040 
(See instructions — page 2) 



1964 



► If you had wages of $4,800 or more which were subject to social security taxes, do not fill in this page. 

► Each self-employed person must file a separate schedule. See instructions, page 2, for joint returns and partnerships. 

^ If you had net earnings from self-employment from both farm and nonfarm sources, fill in only lines 1 and 2 (line 3, if applicable), and 
use separate Schedule C-3 to compute your self-employment tax. Net farm earnings from self-employment should be entered on 
line 5(d) of separate Schedule C-3 (Form 1040). _^___ 

NAME AND ADDRESS (as shov.'n on page 1, Form 1040) 



NAME or SELF-EMPLOYED PERSON (as shown on Social security card) 



Social Security Number 



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 3, below) by a farmer (1) v.-hose GROSS profits are $1,800 or less, or (2) whose GROSS profits 
are more than $1,800 and NET prohts 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 1 and 2. 



Computation Under Regular Method 

1. Net farm profit (or loss) from: 

(a) Line 8, page 1, Schedule F (cash method), or line 10, page 2 (accrual method) 

(b) Farm partnerships 

2. Net earnings from self-employment from farming. Add lines 1 (a) and (b) 

Computation Under Optional Method 

3. If gross profits from farming are;* (a) Not more than $1,800, enter tvv'o-thirds of the gross profits. 

(b) More than $1,800 and the net farm profit is less than $1,200, enter $1,200 



If line 2 (or line 3, if you choose the optional method) is under $400, do not fill in rest of page. 



Computation of Social Security Self-Employment Tax 

4. The largest amount of combined wages and self-employment earnings subject to 

social security tax is 

5. Total wages, covered by social security, paid to you during the taxable year. (For 

"Covered" wages see "F.I.C.A. Wages" box on Form W-2.) Enter here and in 
item G of Schedule SE below 

6. Balance (line 4 less line 5) 

7. Self-employment income. Enter here and in item H of Schedule SE below your choice of EITHER: 

(a) REGULAR METHOD.— The smaller of line 2 or 6 

(b) OPTIONAL METHOD.— The smaller of line 3 or 6 [i^- 

8. Self-employment tax— if line 7 is $4,800, enter $259.20; if less, multiply the amount on line 7 by 5.4?J. j 

Enter this amount here and on line 15, page 1, Form 1040 j $ 



Do not detach 



Importont. — The amounts reported on the form belov/ are tor your social security account. This accou.nt 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. 



SCHEDULE SE (Form 1040) 
U.S. Treasury Depaitment 
Internal Revenoe Service 



U.S. REPORT OF SELF-EMPLOYMENT INCOME 

For crediting to your social security account 



1964 



Indicate year covered by this return (even Iho 
_ Calender year 1964 □ or other taxable year 
"■ H less than 12 months, was short year dueto (a 

(c) D Other. 



Death, or (b) D Change in accour 



FARM ACTIVITIES SUBIECT TO SELF-EMPLOYMENT TAX (Ea 



FARM ADDRESS (n 



nd Postal ZIP code) 



SOCIAL SECURITY ACCOUNT 
D. NUMBER OF PERSON NAMED 
IN ITEM E BELOW 



PLEASE DO NOT WRITE IM THIS SPACE 



.D 



PRINT OR TYPE NAME OF SELF-EMPLOYED PERSON AS SHOWN ON SOCIAL SECURITY CARD 



ENTER AMOUNT FROM 
P. LINE 2 (LINE 3 

IF OPTION USED) ... $ 



PRINT OR TYPE HOME ADDRESS (number and street, or rural route) 



ENTER AMOUNT 
G. FROM LINE 5, 
IF ANY 



(City or town. Slate and postal ZIP code) 



ENTER AMOUNT 
H.FROM 

LINE 7 $ 



180 



f'ACSIMILES OF TAX RETURNS, 1964 



Page, 2 



SOCIAL SECURITY SELF-EMPLOYMENT TAX INSTRUCTIONS 



Individuals deriving income from farming operations are 
subject to self-employment tax. See page 1 of this form for ccni- 
putation of earnings from self-employment and self-employment 
tax. This tax must be paid regardless of age and even though 
the individual is receiving social security benefits. 

Optional method for computing net earnings from self- 
employment from farming. — If a farmer's gross profits for 
theyear from farming are 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 profits from farm self-employ- 
ment are 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 of the partnership's gross profits is his guar- 
anteed 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 Schedules F and F-1 (Form 1040) for income tax and 
self-emploiTnent tax purposes. 

Farm rentals. — Rental income from a farm counts for social 
security purposes if 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 one or more farm products. Such rental 
income is farm earnings and should be reported on page 1 or 2 
of Schedule F. "Material participation" means the taking of 
an important part in the actual production or in the making of 
management decisions. If there was no material participation, 
report such rental income in Part 11 of Schedule B (Form 1040). 

MORE THAN ONE TRADE OR BUSINESS 

If on individual is engaged in farming and in one or more 
other trades or businesses, his net earnings 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 1 of Sched- 
ule C-3 (Form 1040). Fill in Schedule F-1 (Form 1040) through 
line 3. 

JOINT RETURNS 

Where husband and wife file a joint income tax return, 
page 1 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-1, 
or a separate Schedule C-3, 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 5 or 7, Part II, page 2, Form 1 040, 
and the combined self-employment tax should be entered on line 
15, page 1, 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 farming 
is community income, all the income from such farm operations 
is considered the income of the husband unless the wife exercises 
substantially all the management and control of the operation, 
in which case all of such income is considered the income of 
the wife. (Also see instructions on partnerships v/hich follow.) 



If separate income tax returns are filed by husband and 
wife. Schedules F and F-1 or Schedules C and C-3, whichever 
are appropriate, must be attached to the return of the one with 
self-employment income. Community income included on such a 
schedule must, however, be allocated, for income tax purposes 
between the two returns (on line 5 or line 7, Part II, page 2, 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 comm.unity 
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 Part III of Sched- 
ule B for income tax purposes, and on line 1(b), page 1, of 
separate Schedule F-I for self-employment tax purposes. (Use 
separate Schedule C-3, to report nonfarm incom.e for social 
security purposes.) 

Note: If a member of a continuing partnership dies, a por- 
tion of the deceased partner's distributive share of the partner- 
ship's ordinary income (or loss) for the taxable year of the 
partnership in which he died must be included in the partner's 
net earnings from self-employment. 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 rent- 
als received in cash or crop shares. These amounts should be re- 
ported in Part II of Schedule B. 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 
(Form 1040). 

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 entered 
on line 8, Part II, page 2, Form 1040. 

Other items.— Any other item of income or expense which 
was included in line 2 and v/hich does not enter into the com- 
putation of net farm earnings from self-employment should be 
eliminated from line 2 and an explanation attached. 

SCHEDULE SE (FORM 1040) 

Schedule SE, which is the lower portion of page 1 of Sched- 
ule F-1, provides the Social Security Adm.inistration with the in- 
formation on self-employment income necessary for com.puting 
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 are filed 
by husband and wife, Schedule SE (Form 1040) must 
show only the name of the one with self-employment 
income. However, if both had self-employment income, 
a separate Schedule SE must be filed by each. 

•ftliU.S.GOUERNMENT PHIMI.NG OFFICE: I9«-0-725-517 



FACSIMILES OF TAX RETURNS, 1964 



181 



U.S. Treasury Department— Internal Revenue Service 

INSTRUCTIONS FOR SCHEDULE F (FORM 1040) 



1964 



The term "farm" does not include the cultivating or operating of a form tor recreation or pleasure, 
the result of which is a continual loss from year to year. 



CASH RECEIPTS AND DISBURSEMENTS METHOD 

A farmer using the cash receipts and disbursements method shall 
include in his income for the taxable year (1) the amount of cash and 
the value of merchandise or other property received from the sale of 
livestock and produce v/hich 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) income received from all 
other sources. Farm expenses will be the actual amounts paid out 
during the taxable year plus deductions such as depreciation, 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. 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 inven- 
tories may value their inventories according to the "farm-price 
method," in addition to other methods, which provides for the valua- 
tion 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-livestock- 
price method." 

INCOME 

All farm income from whatever source must be reported in Schedule 
F or in Schedule D (Form 1040). 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. If you rent all or a part of your 
crop land on a crop share basis, report the crop shares received as 
rental income only for the year in which they are reduced to money, 
or its equivalent. If you received rental income from the operation 
of a farm and did not materially participate in its operation, report 
the income in Port II of Schedule B (Form 1040). 

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 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. 

Patronage dividends received from cooperatives in cash, qualified 
written notices of allocation, or other property (to the extent of fair 
market value), are to be included in farm income. 

Patronage dividends received in the form of nonqualified written 
notices of allocation are not to be included in income at the time of 
receipt. However, amounts received at the time of redemption, sale, 
or other disposition must be reported as income. 

Dividends received on purchases of capital assets or depreciable 
property used in farming are not included in income, but the pur- 
chase price of such items must be reduced accordingly. Dividends 
you receive on nonbusiness purchases are not included in income. 

Report sales, exchanges, or involuntary conversions of capital 
assets and other property in separate Schedule D (Form 1040). 
EXPENSES AND OTHER DEDUCTIONS 

In general, a farmer 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 invest- 
ment. Some of these expenses are: 

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 of the board which is purchased for hired labor should be de- 
ducted. The value of products furnished by the farm and used in 
the board of hired labor is not deductible. However, the cost of 
rations purchased for laborers or sharecroppers 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. 

Repairs and maintenance. — Amounts expended for repairs 
and maintenance of farm buildings (except your dwelling), fences, 
drains, and other farm improvements, and for repairs and main- 
tenance 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 machinery, farm buildings, or 
other farm equipment of a permanent nature are not deductible. 

Utilities. — The farm share of the expenditures for water rent, 
electricity, telephone, etc. Do not deduct personal expenses. 

us, GOVERNMENT PRINTING ( 



Fertilizers and lime. — These and similar materials may be either 
capitalized or deducted as an expense. 

Supplies purchased. — Cost of twine, spray materials, poisons, 
disinfectants, cans, barrels, baskets, egg cases, bags, etc. 

Taxes. — State and local taxes. Do not deduct Federal income 
taxes; estate, inheritance, legacy, succession, and gift taxes; nor 
taxes assessed for any improvement or betterment. 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. 

Rent of farm, part of farm, or pasture. — Rent paid in cash. 
A tenant farmer paying rent to his landlord 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. 

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 expendi- 
tures made by such district) for soil or water conservation and the 
prevention of erosion if such expenditures are in respect of land used 
by you in your business of farming. 

The allowable deduction for any one year may not exceed 25 per- 
cent of your gross income from farming, but any excess may be carried 
over to succeeding years with the same Umit applying to those years. 

To claim a deduction for these expenditures you must (a) elect to 
do so for the first taxable year 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 continue to treat such 
expenditures as deductions in all future taxable years unless you 
secure consent from the District Director to change. 

Retirement plans, etc. (other than your share). — Enter deduc- 
tion for contributions to or under a pension, profit sharing, annuity, 
or bond purchase plan, and compensation under a deferred pay- 
ment plan for your employees on the line provided in column 3, Port 
III. If the plan includes you as a self-employed individual, enter 
your share on line 4, Part III, page 2, Form 1040 and attach Form 
2950SE. For other plans attach Form 2950 (optional in the first 
year — see instructions for that form). 

Automobile Expenses, Special Rule. — See page 7 of the Form 
1040 Instructions for optional method of computing deductible auto- 
mobile expenses. 

Other farm expenses. — Include such items as advertising, station- 
ery, stamps, account books, other office supplies, travel, and similar 
farm expenses. 

You may deduct expenditures in clearing land to make it suitable for 
farming. This deduction is limited to 25% of taxable income from 
farming, or $5,000 whichever is lesser. 

Depreciation. — Allowance for depreciation of buildings, improve- 
ments, machinery, or other farm equipment of a permanent nature. 
Similar assets may be grouped together as one item for reporting 
purposes in the depreciation schedule on Schedule F. In computing 
depreciation do not include the value of farm land or land on which 
farm buildings are located. Do not claim depreciation 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 instructions for Form 1040 for 
methods of computing depreciation. The depreciation instructions 
also discuss the alternative standards and procedures for use in de- 
termining depreciation under Revenue Procedure 62-2 1 . While not 
mandatory, the adoption of these procedures will, in most cases, prove 
to be to the taxpayer's advantage. 

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 end 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; 
for animals purchased and lost by death, the cost less depreciation 
allowed or allowable is deductible to the extent the loss is not com- 
pensated by insurance or otherwise. Do not deduct personal losses. 

Net operating loss deduction. — Any net operating loss deduction 
should be entered on line 8, Part II, page 2, Form 1040. See instruc- 
tions for Form 1040. 

Additional information available. — More information and illus- 
trative examples are contained in I.R.S. Publication No. 225, Farmer's 
Tax Guide. This booklet may be obtained free of charge from your 
county agricultural agent or any Internal Revenue Service Office. 

; 1964— 0-725-548 c59— 16 — 78373-1 



FACSIMILES OF TAX RETURNS, 1964 



SCHEDULE G 

(Form 1040) 



INCOME AVERAGING 



Attach this schedule to your 



1964 



Name (as shown on page 1 of your tax return) 



PART I.— TAXABLE INCOME AND ADJUSTMENTS 



(a) Computation 
1964 



' (b) 1st preceding base ] (c) 2d preceding base | (d) 3d preceding base (e) ' 
period year i period year period year 

i 1963 I 1962 



1. Taxable income (see instruction 1)..^^.... 

2. Income earned outside of tlie United States 
or within U.S. possessions and excluded 
under Sections 91 1 ond 931 

3. Capital gain net income (from line 10a, 
Schedule D, Form 1040, except 1960 
which is line 9, Schedule D) 



4. Net income from gifts, etc., received this 
year or any base period year. (If S3,000 
or less in 1964 do not enter in any year.). . 



5. Net income from wagering and other 
items described in instruction 5 



6. Line 1 plus line 2, less lines 3, 4, and 5. 



7. Adjusted taxable income or base period 
income. Enter amount from line 6, or 
"Zero" if line 6 is less than zero 




PART II.— COMPUTATION OF AVERAGABLE INCOME 



1 . Adjusted taxable income (line 7, column (a), Part I) 

2. 33'/3% of the sum of line 7, columns (b), (c), (d), and (e). Part I 

3. (a) 25';;, of the sum of line 3, columns (b), (c), (d), and (e). Part I. NOTE: If an . 

zero appears in Iin3 6, Part I, see instruction 3(a) under Part II 

(b) Amount from line 3, column (a), Part I 

(c) If line 3(a) is more than line 3(b), enter difference — if not, make no entry 

4 Averagable income (line 1 less lines 2 and 3(c)) 



COMPLETE THE REMAINING PARTS OF THIS FORM ONLY IF LINE 4 IS MORE THAN $3,000. IF $3,000 OR UNDER, YOU 

DO NOT QUALIFY 

PART III.— SEGMENTS OF INCOME UNDER AVERAGING 



1. Amount from line 2, Part II.... 

2. Amount from line 3(a), Pait II. 

3. 20',o of line 4, Part II 



4. Sum of lines 4 and 5, column (a). Part I, less any income subject to a penalty under ; 
line 5, Part I 



ion 72(m)(5) which was included in | 



5. Excess of line 3(b) over 3(a), Part II . 

6. Total (sum of lines 1 through 5) 



PART IV COMPUTATION OF TAX 



1 . Tax on the amount on line 6, Part III 

2. Sum of lines 1 , 2, and 3, Part 111 I... 

3. Tax on amount on line 2 -- 

4. Sum of lines 1 and 2, Part III L 

5. Tax on amount on line 4 I 

6. Difference (line 3 less line 5) I 

7. The amount on line 6 multiplied by 4 

8. Total (add lines 1 and 7) 

9. Tax on income subject to the penalty under section 72(m)(5) which was included in line 5, Part I 

10. Tax (add lines 8 and 9). Enter here and, if you are not using the allernalive tax compulation in Part V, 

page 1 , Form 1040 and write "From Schedule G" to left of entry 



FACSIMILES OF TAX RETURNS, 1964 



Pages 



PART v.— COMPUTATION OF ALTERNATIVE TAX 







2. Amount from line 5, Part IV 






3. (a) Amount from line 2, Part II 














(c) Sum of lines 3(a) and 3(b) 






4. Tax on amount on line 3(c) 




5. Difference (line 2 less line 4) 






6. Amount from line 1 , Part IV 






7. Sum of lines 1 , 2, 3, and 4, Part III 

8. Tax on amount on line 7 












9. Difference (line 6 less line 8) 






10. Sum of lines 5 and 9 






1 1 . Amount from line 3, column (a), Part 1 

12. 50% of line 11 












13. If line 10 is more than line 12, enter difference— otherwise alternative tax does not apply 




14. Alternative tax (line 1 less line 13). Enter here and on line 12, page 1 , Form 1040 and write "From Schedule G" to left 









Use this space for additional information, such as reconstruction of income computation, itemization of item 5, Part I, etc. 

-78467-1 



184 

Page 3 



FACSIMILES OF TAX RETURNS, 1964 
General Instructions 



This schedule must be attached to your Form 1040 to choose the benefits of income averaging. Only 
individuals who are citizens or residents throughout 1964 are eligible for averaging. Corporations, estates 
and trusts do not qualify. 

The income averaging method of computing tax may be to your advantage if your income has increased 
substantially this year. Under this method your 1964 income which exceeds by one-third the income of 
your four prior years (1960-1963) is taxed, in effect, by averaging that excess over the five-year period 
(1960-1964). Basically the taxable income for each year is the figure utilized. However, since capital 
gains, wagering income, certain income from gifts, etc., are not subject to averaging, adjustments to the 
taxable income, as it appears on Form 1040 for each year, are necessary. 



WHO MAY FILE. — Generally, you may choose the provisions 
of income averaging for 1964, by filing Schedule G with your 
Form 1040 if you meet the requirements of (1) citizenship or 
residence, and (2) support. On a joint return both husband 
and wife must meet the requirements. 

(1) Citizenship or residence requirement. — You must have 
been a citizen or resident of the United States throughout 
1964. A nonresident alien at any time during the five 
taxable year period ending with 1964 is not eligible. 

(2) Support requirement. — You must have furnished at least 
50 percent of your own support from 1960 through 1963. In 
a year in v/hich you were married it is only necessary that you 
together with your wife provided at least 50 percent of the 
support of both of you. For definition of support see line 5, 
page 4, Form 1040 Instructions. 

Exceptions. The support requirement is waived if — 

(1) You were age 25 or more before the end of 1964 and you 
were not a full-time student during at least any four of your 
taxable years beginning after you have attained the age of 
21. Thus, generally, if you are age 25 or over and have 
been out of school for 4 years since age 21, you are eligible 
for averaging. You are a student for a taxable year if during 
5 calendar months of that year you were a full-time student 
at an educational institution or were pursuing a full-time 
course of institutional on-farm training under the supervision 
of an accredited agent of an educational institution or of a 
State or political subdivision of a State. 

(2) More than 50 percent of your adjusted taxable income (line 
7, column (a), Part 1) is attributable to work performed by you 
in substantial part during two or more of the four taxable 
years preceding 1964, or 

(3) You file a joint return for 1964 and not more than 25 per- 
cent of the aggregate adjusted gross income (line 9, page 1 , 
Form 1040) is attributable to you. Your husband (wife), 
however, must meet the support requirement, 

PROVISIONS INAPPLICABLE.— If you file Schedule G you 
may not — 

(1) Exclude from income any part of your earned income from 
sources without the United States (see section 91 1 and Form 
2555) and from sources within possessions of the United States 
(see sections 931-934 and Form 1040E). 

(2) Use the tax tables on pages 1 1 through 15 of the Form 1040 
instructions. You may, however, use the standard deduction. 

(3) Avail yourself of the limitation on tax under section 72(n)(2) 
for income resulting from certain distributions from an em- 
ployees' trust. 

RECONSTRUCTION OF INCOME.— If ^ou (1) were single for 
both 1 964 and the base period year in question, or (2) were married 
to the same person for both 1964 and the base period year in 
queshon and filed a joint return, no reconstruction for that year 
is necessary. 



Salary 

Dividends 

Adjusted Gross Income 

Total of itemized deductions and personal exemptions. 

Taxable Income (Separate Income and Deductions) . . . 



If you (1) were not married to and did not file a joint return with 
the same wife (husband) for every year after 1959, or (2) were not 
single for all those years, you must reconstruct your income by 
determining your separate income and deductions for any taxable 
year. Your part of the allowable deductions (exemptions and 
itemized deductions) not taken into account in arriving at ad- 
justed gross income from a joint return, is the amount resulting 
from multiplying the amount of such deductions on the joint return 
by a fraction whose numerator is your separate adjusted gross 
income and whose denominator is the aggregate adjusted gross 
income on the joint return. See specific instruction 1, under Part 
I, on adjusted gross income. However, if 85 percent or more of 
the aggregate adjusted gross income of a husband and wife is at- 
tributable to either one, all of the deductions are allowable to the 
one to whom such income is attributable. 

It may be necessary to make as many as three computations 
in determining your separate base period income for any year. 
If you had a different wife (husband) for 1964 than for the base 
period year in question it is necessary to compute your base period 
income under all three methods. However, whether more than 
one computation is necessary in a particular case depends upon 
the facts. In any event, your separate base period income for 
any base period year is the largest of the amount computed 
under the following three methods: 

(1) The amount determined by adjusting your own income and 
deductions for the base period year. 

(2) One-half the amount determined by adjusting the combined in- 
come and deductions for the base period year of your husband 
(wife) and the person who is your wife (husband) in 1964. 

(3) One-half the amount determined by adjusting the combined in- 
come and deductions for the base period year of your husband 
(wife) and your wife (husband) for that base period year. 

In computing your separate base period income when com- 
munity property laws are applicable there must be taken into 
account all of the earned income attributable to the person who 
earned it, without regard to the community property laws, or your 
share of the community earned income under the community 
property laws, whichever is greater. 

If you must reconstruct your income for any of the base period 
years, show the computation and give names under which the 
returns were filed in the space provided on page 2. If additional 
space is needed show your computation on an attachment. An 
example illustrating the reconstruction of income follows: 

H and W are calendar year taxpayers who were married and 
otherwise eligible to choose the benefits of income averaging for 
the taxable year 1964 for which they made a joint return. W, 
however, was married to and made a joint return with A for the 
taxable year 1960. H was unmarried for 1960. H and W 
compute their base period income for 1960 in the following 
manner: 



& W (Joint Return) 


A 


W 


H 


$16,000 
2,000 


$11,500 
500 


$4,500 
1,500 


$3,000 
1,000 


$18,000 
3,600 


$12,000 
2,400 


$6,000 
1,200 (1) 


$4,000 
1,600 


$14,400 


$9,600 


$4,800 


$2,400 



1200 



(1) 6000 (W's separate adjusted gross income) ^g^Q (Total of itemized deductions and personal 

18000 (A & W's adjusted gross income from exemptions on A & W's joint return) 

joint return) 

Method No. 1 — W's separate income and deductions $4,800 

Method No. 2 — W and H's combined income and deductions ($4,800 plus $2,400) X 50 percent $3,600 

Method No. 3 — W and A's combined income and deductions from joint return, $14,400X50 percent $7,200 

W's separate income and deductions is $7,200, the largest of the three methods. The combined separate income and deductions (or base 
period income since there are no adjustments) of H and W for 1960 is $9,600 (H's base period income of $2,400 (unmarried in 1960) 
plus W's base period income of $7,200). 



FACSIMILES OF TAX RETURNS, 1964 



185 



Page 4 



SPECIFIC INSTRUCTIONS 



The following instructions 



ore num 



bered to correspond with the line numbers in each part of the form. 



Parti 



1. Except as noted below, enter 
than zero) from — 

(a) Form 1040 (1961-64) - 
Form 1040 (1960) 

(b) Form 1040W (1960) - 

(c) Form 1040A (1964) 
Form 1040 A (1960-63) - 



on this line the amount (never less 

line 1 Id, page 1 
line 5, page 2 

line 10, page 1 

1- „ c „„„„ A f Tax Computation 
me 5, page 4 Schedule Form 
hne5,page3[ jo4o;^;^3t^^^ji„„3 

For any year for which you use the tax tables with Form 1040, 
Form 1040W, or Form 1040A, you may arrive at the amount to be 
entered in line 1, by subtracting from your adjusted gross income 
(see below) the standard deduction and $600 multiplied by the 
number of exemptions. Adjusted gross income is — 



(a) Form 1040 (1961-64) 
Form 1040 (1960) 



line 9, page 1 
line 1 1 , page 1 



(b) Form 1040W (1960) - line 6, page 1 



(c) Form 1040A (1963-64) - 
Form 1040A (1960-62)- 



line 7, page 1 
line 9, page 1 



NOTE: If you were not married to and did not file a joint return 
with the same wife (husband) for every year after 1959, or were 
not single for all those years, it will bs necessary to reconstruct 
the amount to be entered in columns (b), (c), (d), and (e) in 
accordance with General Instruction C. 

2. Enter on this line for each base period year the net amount of 
income previously excluded from income because it was earned 
income derived from sources without the United States or from 
within its possessions (Sections 91 1 and 931-934). For 1964 you 
may not exclude such amounts from gross income and they will 
therefore be reflected in taxable : 



3. If any amount entered in line 1, columns (b), (c), (d), and (e) is 
a reconstructed amount then the capital gain net income for the 
same year must be reconstructed using the same method that was 
used for that year in line 1. 

4. You must enter for all years certain amounts of income attributable 
to interests in property which v/ere received, during 1964 or any 
base period year (1960 through 1963), as a gift, bequest, devise, 
or inheritance, but only if the amount of such net income for 1964 
exceeds $3,000. (If the property was received prior to 1960 no 
entry is required.) If you have an interest in more than one 
piece of property, the income to be taken into account is the sum 
of the incomes (losses) for the year from each piece of property. 
If the adjustment is required for 1964 (because it exceeds $3,000), 
then an entry for this item must be made for all the base period 
years for income (disregard any net loss(es)) in those years attrib- 
utable to gifts, etc., received during the base period even though 
such income for any of these years does not exceed $3,000. Unless 
you establish otherwise, the amount of net income attributable to 
an interest in property is deemed to be 6 percent of the fair market 
value of such interest on the date of its receipt. 

The above rules do not, however, apply to income attributable 
to gifts, bequests, devises, or inheritances between husband and 
wife if they file a joint return for 1964 (including a joint return 
filed by a survivor with his deceased wife (husband) for 1964), or 
if one of them files a return as a surviving widow(er) for 1964. 

5. Include income attributable to the following sources in the total 
to be entered on this line (show itemization in space provided on 
page 2): 

(a) Wagering income. The amount which is attributable to the 
excess of gains over losses from wagering transactions. 



(b) Income from oil and gas properties. The amount received 
from the sale of any oil or gas property to which section 632 
applies. 

(o) Claims against the United States. The amount received 
from the United States to which section 1347 applies. 

(d) Excess Community Income. If you are married, a resident of 
a community property state, and file a separate return for 
1964, you must include in this line the excess of the community 
earned income reportable by you over the amount of such 
income attributable to your services. No adjustment need 
be made where the community earned income attributable to 
your services exceeds 50 percent of the aggregate community 
earned income. The following example illustrates this. — 

Attributable to Service of 
H W Total 

Community Earned Income... $40,000 $20,000 $60,000 

(1) H filing a separate return has no adjustment since the 
amount of earned income attributable to his services 
($40,000) exceeds 50 percent of the aggregate community 
earned income ($30,000). 

(2) W filing a separate return must include in the total for 
this line $10,000, the excess of the community earned 
income reportable by her ($30,000) over the amount of 
community earned income attributable to her services 
($20,000). 

(e) Certain amounts received by owner-employees. The amount 
of income resulting from a premature or excessive distribution 
from a qualified employees' pension plan or trust to an 
employee who is (or was) also an owner of the business. The 
amount of such income is the amount subject to a penalty 
under section 72 (m) (5). 

Part II 

3(a). Generally, the entry on this line is one-fourth of the sum of the 
capital gain net income in line 3, columns (b), (c), (d), and (e). 
Part I. However, capital gain net income for any base period 
year may not exceed the base period income (line 7, columns 
(b), (c), (d), and (e), Part I) for such year computed without re- 
duction by the capital gain net income for such year. Line 6, 
Part I, indicates whether the adjustment for any year is neces- 
sary. If any of the amounts on line 6 in columns (b), (c), (d), 
and (e) are less than zero, then for that year add lines 3 and 6. 
If the resulting sum is less than zero your capital gain net in- 
come for such year is zero. The following examples will illus- 
trate this. — 

Example (1)— Column (b), Pari I 

Line 3 $100 

Line 6 (670) 

Capital gain net income for this year for purposes of com- 
puting entry for line 3(a), Part II zero 

Example (2)— 

Line 3 $2000 

Line 6 (1300) 

Capital gain net income for this year for purposes of com- 
puting entry for line 3(a), Port II $700 

Parts IV and V 

To figure your tax use the tax rale schedules on page 10 of the in- 
struction booklet for Form 1040. 



245-158 O ■ 67 - 



FACSIMILES OF TAX RETURNS, 1964 



2948 



U.S. Treoaury Department — Internal Revenue Service 

MEDICAL AND DENTAL EXPENSE STATEMENT 

(Attach this statement to youi income tax return or use if as a guide to 
prepare your own statement. See example on reverse side) 



1964 



This statement is for the use of taxpayers who are entitled to a larger deduction for medical and dental 
expenses paid for the persons listed in Group I and who also have expenses for persons described in Group 
II below. Taxpayers who have expenses for persons in Group I only or Group II only need not use this form 
but should see the instructions for Form 1040. The medical and dental expenses of persons in Group I do not 
have to be reduced by the 1 and 3 percent limitations of the taxpayer's total income (line 9, page 1, Form 
1040) as is required for persons in Group II below. 

GROUP I GROUP II 

a. Taxpayer and wife if EITHER is 65 years of a. Taxpayer and wife if BOTH are under 65 
age or older, years of age, 

b. Each 65-year-old (or over) dependent parent b. Dependent parents, who are under 65 years 
of the taxpayer or his wife. of age, of taxpayer or wife, 

c. All other dependents regardless of age. 

Note : Do not deduct any expenses for which you received reimbursement from insurance or other sources. 

Name of taxpayer claiming the deduction 

Name(s) of dependent parent(s) 65 years of age or over, if any 

MEDICAL AND DENTAL EXPENSES FOR PERSONS IN GROUP I 

1. Medicine and drugs $ 

2. Medical and dental expenses (other than medicine and drugs) . 

3. Line 1 plus line 2 $ 

MEDICAL AND DENTAL EXPENSES FOR PERSONS IN GROUP II 

4. Medicine and drugs $ 

5. 1% of line 9, page 1, Form 1040 

6. Excess, if any, of line 4 over line 5 

7. Medical and dental expenses (other than medicine and drugs) . 

8. Line 6 plus line 7 

9. 3% of line 9, page 1, Form 1040 

10. Excess, if any, of line 8 over line 9 

TOTAL INDUCTION FOR MEDICAL AND DENTAL EXPENSES 

11. Line 3 plus line 10. Enter here and on line 5, Part IV, page 2 of Form 1040 (See 

"Maximum Limitations" below) $ 



MAXIMUM LIMITATIONS 

The amount on line 1 1 may not exceed $5,000 multiplied by the number of persons claimed as exemptions 
on the individual income tax return. (If taxpayer or wife is 65 or over and in addition is disabled, see 
"B.") The deduction is further limited by the following amounts: 

(1) $10,000 if the taxpayer is single and not a head of household or a widow or widower entitled to 

the special tax rates, 

(2) $10,000 if the taxpayer is married but files a separate return, 

(3) $20,000 if the taxpayer files a joint return, is a head of household, or is a widow or widower 

entitled to the special tax rates. 
If the taxpayer (or his wife) is 65 years of age or over and in addition is disabled, he may qualify for an 
increased maximum limitation. For this purpose disabled means that any individual is unable to engage 
in any substantial gainful activity by reason of any medically determinable physical or mental impair- 
ment which can be expected to result in death or to be of long-continued and indefinite duration. For 
further information, consult your nearest Internal Revenue Service office. 



FACSIMILES OF TAX RETURNS, 1964 

EXAMPLE FOR COMPLETING STATEMENT ON REVERSE SIDE. 

A taxpayer with $10,000 total income (line 9, page 1, Form 1040) files a joint return with his wife. The tax- 
payer is 67 years old, his wife is 64, and they have a dependent 20 years old. Taxpayer and his wife paid 
$250 for medicine and drugs and $1,500 for medical and dental expenses for themselves. In addition, they 
paid for the dependent $140 for medicine and drugs, and $100 for medical and dental expenses. The 
taxpayer and his wife would both be in Group I. The statement should be completed as follows: 

MEDICAL AND DENTAL EXPENSES FOR PERSONS IN GROUP I 

1. Medicine and drugs $250.00 

2. Medical and dental expenses (other than medicine and drugs) 1,500.00 

3. Line 1 plus line 2 $1,750.00 

MEDICAL AND DENTAL EXPENSES FOR PERSONS IN GROUP II 

4. Medicine and drugs $140.00 

5. 1% of line 9, page 1, Form 1040 100.00 

6. Excess, if any, of line 4 over line 5 40.00 

7. Medical and dental expenses (other than medicine and drugs) 100.00 

8. Line 6 plus Una 7 140.00 

9. 3% of line 9, page 1, Form 1040 300.00 

10. Excess, if any, of line 8 over line 9 -0- 

TOTAL DEDUCTION FOR MEDICAL AND DENTAL EXPENSES 

11. Line 3 plus line 10 $1,750.00 

Itemize below amounts paid for medical and dental expenses in 1964; show amount and to whom paid. 



187 



•d U.S. GOVERNMENT PRINTING OFFICE ; 196»— 0-737-775 



SECTION 11 



Index 



Adjusted gross deficit, 11, 12, 124 
Adjusted gross income less deficit, 2,9, 
13, 
Age 65 or over, 88, 89 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Comulated distribution, 8 
Definition, 121, 122, 124 
Form 1040A returns, 30 
Income averaging returns, 5 
Itemized deductions returns, 10, 50 
Joint and surviving spouse 

returns, 16 
Marginal tax rates, 74 
Marital statuses, 11, 28, 29 

Itemized deductions returns, 12, 

56, 57 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11, 
54, 55 
Normal tax and surtax returns, 68 
Regions, 95 
Separate and single persons 

returns, 19 
Standard deduction returns, 10, 47 
States, 96, 99-111 
Ten-year trend, 1 
Adjustments, 2, 14 

Age 65 or over, 88, 90 
Income averaging returns, 5 
Itemized deductions returns, 51 
Joint and surviving spouse 

returns, 17 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
Age 65 or over, 27, 87-93, 122 
Exemptions, 37 
Itemized deductions, 93 
Standard deduction, 92 
Alternative tax computation, 32, 65, 66, 
122 

Retirement income credit, 94 
Average income tax (dollars) (see also 
Historical data) 

Alternative tax computation 

returns, 69 
Cumulated, 8 
Normal tax and surtax returns, 68 



indness exemptions, 37 



Bonds only requested, 15 
Definitions, 128 
Form 1040A returns, 30 
Itemized deductions returns, 53 
Joint and surviving spouse 

returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Business or profession, 2, 9, 13 
Age 65 or over, 88, 89 
Definition, 123 
Income averaging returns, 5 
Itemized deductions returns, 50 
Joint and surviving spouse 

returns, 16 
Marginal tax rates, 74 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Regions, 95 
Separate and single persons 

returns, 19 
Size of source, 24 
Standard deduction returns, 47 
States, 96 



Capital gain and loss, 31, 123 
Cash requested, 15 
Definition, 128 
Form 1040A returns, 30 
Itemized deductions returns, 53 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Classifications and terms, 121-130 
Comparability of data (See Revenue Act 

of 1964) 
Contributions deducted, 38, 51 
Age 65 or over, 93 
Definition, 123 
Marginal tax rates, 75 
Percent of adjusted gross income, 63 
Credit on 1965 tax, 15 
Age 65 or over, 91 
Definition, 124 
Income averaging returns, 6 
Itemized deductions returns, 53 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 



Cumulated distribution. 



Dependents exemptions, 37 

Description of the sample and limitations 

of the data, 132-135 
Dividends in adjusted gross income, 2 6 
10, 14, 33 ' ' 

Age 65 or over, 88, 90 
Definition, 124 
Income averaging returns, 5 
Itemized deductions returns, 50 
Joint and surviving spouse returns, 17 
Marginal tax rates, 74 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Regions, 95 
Separate and single persons 

returns, 20 
Size of source, 22 
Standard deduction returns, 48 
States, 96 
Dividends received, 6, 33 
States, 97 



Employee business expense 

deduction, 2-4, 124 
Exemptions, 14, 27 
Age 65 or over, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 124 
Form 1040A returns, 30 
Income averaging returns, 5 
Itemized deductions returns, 52 
Joint and surviving spouse 

returns, 17 
Marginal tax rates, 75 
Marital statuses, 28, 29 
Itemized deductions 

returns, 56, 57 
Standard deductions, 54, 55 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
States, 99-111 
Explanation of classifications and 
terms, 121-130 



189 



190 



Farm, 2, 9, 13 

Age 65 or over, 88, 89 

[Definition, 125 

Income averaging returns, 5 

Itemized deductions returns, 50 

Joint and surviving spouse returns, 16 

Marginal tax rates, 74 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Regions, 95 
Separate and single persons 

returns, 19 
Size of source, 26 
Standard deduction returns, 47 
States, 96 
Filing requirements, 132 
Foreign taxes paid tax credit, 15 
Age 65 or over, 91 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 129 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 18 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Form 1040A, 30 
Forms and instructions, 139 



General sales taxes deducted, 39, 40 



H 



Heads of household, 11, 12, 28, 121 

Income tax generated, 73 

Itemized deductions, 56 

Marginal tax rates, 83 

Minimum standard deduction, 46 

Standard deduction, 54 
Historical data, 1955-64, 113-120 
Home mortgage interest deducted, 41, 42 



I 

Income averaging returns, 4-6, 66 
Income tax after credits, 2, 15 
Age 65 or over, 91 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Cumulated distribution, 8 
Definition, 125 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse 

returns, 18 
Marginal tax rates, 75 



Income tax after credits- -Continued 
Marital statuses, 28, 29 

Itemized deductions returns, 56, 

57 
Standard deduction returns, 54, 
55 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
States, 97, 99-111 
Income tax before credits, 14 
Age 65 or over, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 125 
Form 1040A returns, 30 
Income averaging returns, 5 
Itemized deductions returns, 52 
Joint and surviving spouse 

returns, 17 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
Income tax generated, 66, 70 
Heads of household, 73 
Joint and surviving spouse, 71 
Separate and single persons, 72 
Interest paid deducted, 38, 51 
Age 65 or over, 93 
Definition, 125 
Marginal tax rates, 75 
Percent of adjusted gross income, 62 
Interest received, 2, 10, 14 
Age 65 or over, 88, 90 
Definition, 125 
Income averaging returns, 5 
Itemized deductions returns, 51 
Joint and surviving spouse 

returns, 17 
Marginal tax rates, 74 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Separate and single persons 

returns, 20 
Size of source, 24 
Standard deduction returns, 48 
States, 97 
Investment tax credit, 14 
Age 65 or over, 87, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 129 
Income averaging returns, 5 
Itemized deductions returns, 52 
Joint and surviving spouse 

returns, 17 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 



Itemized deductions, 10, 38, 50, 51 
Age 65 or over, 87, 93 
Alternative tax computation 

returns, 69 
Definitions, 121 

Itemized deductions returns, 50 
Marginal tax rates, 75 
Marital statuses, II, 12, 56 
Normal tax and surtax returns, t 
Percent distribution, 58 



Joint and surviving spouse returns, 16 

Income tax generated, 71 

Marginal tax rates, 79 

Minimum standard deduction, 44 
Joint returns of husbands and wives, 11 
12, 28, 121 

Itemized deductions, 56 

Standard deduction, 54 

States, 99-111 



Map--Internal Regenue Regions and 

Districts, 98 
Marginal tax rates, 66, 74 

Heads of household returns, 83 
Joint and surviving spouse 

returns, 79 
Separate and single persons 
returns, 81 
Marital status of taxpayer, 121 

Itemized deductions returns, 56 
Standard deduction returns, 54 
Medical expense deduction, 38, 39, 51 
Age 65 or over , 93 
Definition, 125 
Marginal tax rates, 75 
Percent of adjusted gross income, 60 
Minimum standard deduction, 38, 43 
Heads of household returns, 46 
Joint and surviving spouse 

returns, 44 
Separate and single persons 
returns, 45 
Moving expense deductions, 2, 3, 124 



N 



No adjusted gross income returns, 121 

Marital statuses, 11, 12 
No taxable income, 14 
Age 65 or over, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Itemized deductions returns, 52 
Joint and surviving spouse returns 

returns, 17 
Separate and single persons 

returns, 20 

Standard deduction returns, 48 

Noncalendar year returns, 68, 131 

Normal tax and surtax, 31, 68, 126 

Number of returns (see also specific type 

of returns or classification), 132 



INDEX 



191 



Ordinary gain from sales of depreciable 
property, 7, 9, 13 
Age 65 or over, 89 
Definition, 126 
Income averaging returns, 5 
Itemized deductions returns, 50 
Joint and surviving spouse returns, 16 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Separate and single persons 

returns, 19 
Standard deduction returns, 47 
Other areas, 121 
Other deductions, 126 
Other gain from sales of depreciable 

property, 127 
Other than age or blindness exemptions: 

States, 99-111 
Other sources of income and loss, 10, 14 
Age 65 or over, 90 
Definition, 127 
Form 1040A returns, 30 
Income averaging returns, 5 
Itemized deductions returns, 51 
Joint and surviving spouse returns, 17 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
Other tax credits, 15 
Age 65 or over, 91 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 127 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 18 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Overpayment, 15, 34 
Age 65 or over, 91 
Definition, 127 
Form 1040A returns, 30 
Income averaging returns, 6 
Itemized deductions returns, 53 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Type of taxpayment, 34 



Partnership, 2, 9, 13 
Age 65 or over, 8 
Definition, 127 



Partnership- -Continued 

Income averaging returns, 5 
Itemized deductions returns, 50 
Joint and surviving spouse returns, 16 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Regions, 95 
Separate and single persons 

returns, 19 
Standard deduction returns, 47 
States, 96 
Payments on 1964 declaration, 15, 34 
Age 65 or over, 91 
Definition, 127 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Pensions and annuities (taxable portion), 
10, 14 
Age 65 or over, 88, 90 
Definition, 128 
Income averaging returns, 5 
Itemized deductions returns, 51 
Joint and surviving spouse returns, 17 
Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Regions, 95 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
Percent distributions, 2 
Age 65 or over, 88 
Alternative tax computation, 69 
Cumulated, 8 
Itemized deductions, 38, 58-63 

Taxes deducted, 39 
Normal tax and surtax, 68 
Regions, 95 
Personal deductions (See Exemptions) 
Personal property taxes deducted, 39-41 



Real estate taxes deducted, 39, 40 
Rents, 2, 10, 14 

Age 65 or over, 88, 90 

Definition, 126 

Income averaging returns, 5 

Itemized deductions returns, 51 

Joint and surviving spouse returns, 17 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
States, 97 
Requirements for filing, 132, 137 



Retirement income credit, 14, 94 

Age 65 or over, 88, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 

Alternative tax computation 
returns, 69 

Definition, 129 

Income averaging returns, 5 

Itemized deductions returns, 52 

Joint and surviving spouse returns, 17 

Normal tax and surtax returns, 68 

Separate and single persons 
returns, 20 

Standard deduction returns, 48 
Revenue Act of 1964 

Dividends, 6 

Medical expense deduction, 39 

Minimum standard deduction, 37 

Retirement income credit, 88 

Sick pay exclusion, 3 

Tax rates, 65 

Taxes paid deduction, 39 
Royalties, 2, 10, 14 

Age 65 or over, 88, 90 

Definition, 126 

Income averaging returns, 5 

Itemized deductions returns, 51 

Joint and surviving spouse returns, 17 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 

Separate and single persons 
returns, 20 

Standard deduction returns, 48 

States, 97 



Salaries and wages (gross), 2, 9, 13 

Age 65 or over, 88, 89 

Definition, 128 

Form 1040A returns, 30 

Income averaging returns, 5 

Itemized deductions returns, 50 

Joint and surviving spouse returns, 1( 

Marginal tax rates, 74 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 

Moving expense deduction returns, 2 

Regions, 95 

Separate and single persons 
returns, 19 

Size of source, 22 

Standard deduction returns, 47 

States, 96 
Sales of capital assets, 2, 9, 13, 31 

Age 65 or over, 88, 89 

Income averaging returns, 5 

Itemized deductions returns, 50 

Joint and surviving spouse returns. If 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 



192 

Sales of capital assets--Continued 
Regions, 95 
Separate and single persons 

returns, 19 
Size of source, 26 
Standard deduction returns, 47 
States, 96 
Sales of property other than capital 
assets, 10, 13 

Age 65 or over, 89 

Definition, 126 

Income averaging returns, 5 

Itemized deductions returns, 50 

Joint and surviving spouse returns, 16 

Marital statuses, 11, 12 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 
Separate and single persons 

returns, 19 
Standard deduction returns, 47 
Self-employed pension deduction, 2,4, 128 
Self-employed tax, 2, 15 
Age 65 or over, 91 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Definition, 128 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Separate returns and single persons 
returns, 19 

Income tax generated, 72 
Marginal tax rates, 81 
Minimum standard deduction, 45 
Separate returns of husbands and 
wives, 11, 12, 28, 121 
Itemized deductions, 56 
Standard deduction, 54 
Sick pay exclusion, 2, 3, 128 
Single persons not head of household 
or surviving spouse returns, 11, 12, 
29, 121 

Itemized deductions, 57 
Standard deduction, 55 
Size of selected sources of income and 

loss, 22-26, 121 
Sources of data, 131 
Sources of income and loss, 1, 9, 13 
Age 65 or over, 89 
Cumulated distribution, 8 
Income averaging returns, 5, 6 
Itemized deductions returns, 50 
Joint and surviving spouse returns, 16 
Marginal tax rates: 

Joint and surviving spouse 

returns, 16 
Separate and single persons 
returns, 19 
Marital statuses, 11 

Itemized deductions returns, 12 
No adjusted gross income 

returns, 12 
Standard deduction returns, 11 



INDEX 

Sources of income and loss--Continued 

Separate and single persons 
returns, 19 

Standard deduction returns, 47 
Standard deduction returns, 10, 38, 47, 48 

Age 65 or over, 87, 92 

Alternative tax computation 
returns, 69 

Definition, 121, 129 

Marginal tax rates, 75 

Marital statuses, 11, 12, 54 

Normal tax and surtax, 68 
State and local gasoline taxes 

deducted, 39-41 
State data, 95-111, 121 
Surviving spouse returns, 11, 12, 29, 121 

Itemized deductions, 57 

Standard deduction, 55 
Synopsis of Laws, 137 
State and local sales taxes deducted, 39, 
40 



Table contents, 1, 37, 65, 87, 95, 113, 
131, 139 

Tax base (See Taxable income) 

Tax computation, 65 

Tax credits, 14,15 

Age 65 or over, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Income averaging returns, 5 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 1 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 

Tax due at time of filing, 15, 34 
Age 65 or over, 91 
Definition, 129 
Form 1040A returns, 30 
Income averaging returns, 6 
Itemized deductions returns, 53 
Joint and surviving spouse returns, 1 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Type of taxpayment, 34 

Tax-exempt interest tax credit, 127 

Tax from recomputed prior year invest- 
ment credit, 15 
Age 65 or over, 91 
Definition, 130 
Income averaging returns, 6 
Itemized deductions, 52 
Joint and surviving spouse returns, II 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 

Tax paid at source tax credit, 127 

Tax rates, 130 

Illustration, 67 

Tax rate classes, 122 

Tax rate schedules, 122 



Tax table returns, 132 
Tax withheld, 15, 34 
Age 65 or over, 91 
Definition, 130 
Form 1040A returns, 30 
Income averaging returns, 6 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 18 
Separate and single persons 

returns, 21 
Standard deduction returns, 49 
Taxable and nontaxable returns, 122 
Taxable income, 2, 14, 65 
Age 65 or over, 90 

Itemized deductions returns, 93 
Standard deduction returns, 92 
Alternative tax computation 

returns, 69 
Definition, 129 
Form 1040A returns, 30 
Income averaging returns, 5 
Itemized deductions returns, 52 
Joint and surviving spouse returns, 17 
Marginal tax rates, 66, 74-78 

Heads of household returns, 83 
Joint and surviving spouse 

returns, 79 
Separate and single persons 
returns, 81 
Marital statuses, 28, 29 

Itemized deductions returns, 56, 

57 
Standard deduction ret:irns, 54, 
55 
Normal tax and surtax returns, 68 
Separate and single persons 

returns, 20 
Standard deduction returns, 48 
States, 97, 99-111 
Taxes paid deduction, 38-40, 51 
Age 65 or over, 93 
Definition, 129 

Itemized deductions returns, 51 
Marginal tax rates, 75 
Percent of adjusted gross income, 61 
Taxpayer and spouse exemptions, 37 
Taxpayers age 65 or over, 122 
Taxpayer's exemptions, 37 
Throwback tax credit, 127 
Total deductions, 14, 38 
Age 65 or over, 90 
Income averaging returns, 5 
Itemized deductions returns, 38 
Joint and surviving spouse returns, 17 
Separate and single persons 
returns, 20 
Type of taxpayment, 34, 122 



U. S. GOVERN 



i OFFICE : 1967 




STATISTICS OF INCOME 

Individual income tax returns 

Annually contains data on sources of income, adjusted gross income, exemp- 
tions, total deductions, taxable income, income tax, tax credits, self-employment 
tax, tax withheld, and tax payments. Also shown are excludable sick pay, foreign 
and domestic dividends, capital gains and losses, data reported on Forms 1040A, 
and selected income and tax items for States. Classifications are by tax status, 
size of adjusted gross income, marital status, form of deduction, and tax rates. 
Ten year historical summary. 

Topics featured in the reports for 1960-1965 

1965 - (In preparation) New items include increase in maximum dividend exclu- 
sion, and separation of short-term and long-term capital loss carryover. 
Coverage of Revenue Act of 1964 changes, gross income adjustments, non- 
taxable and capital gain distributions, gain from disposition of depreciable 
property, income averaging, and retirement income credit. 

1963 - Standard metropolitan statistical areas, gain from disposition of Section 
1245 property, tax from recomputing prior year investment credit, self- 
employment pension deduction, farm net profit and net loss. 

1962 - Returns with at least one taxpayer age 65 or over, itemized deductions in- 
cluding deduction for contributions classified by type of recipient. Itemized 
deductions by type and by State. 

1961 - Standard metropolitan statistical areas, gross rents and rent expense, 
interest income classified by type of payer. 

1960 - Returns with at least one taxpayer age 65 or over, pension and annuity re- 
ceipts and cost, itemized deductions including depreciation on rental property, 
depletion on account of royalties, taxes deducted by type of tax. 

PUBLICATIONS IN PREPARATION 

Individual Income Tax Returns for 1965, Preliminary 

U. S. Business Tax Returns with accmtntiiig periods ended July 1963- June 1964 

Corporation Income Tax Returns with accounting periods ended July 1963-June 

1964 
Foreign Tax Credit claimed on corporation income tax returns with accounting 

periods ended July 1961 -June 1962 
Fiduciary, Gift, and Estate Tax Returns filed during 1966 
Estate Tax Wealth based on Estate Tax Returns filed during 1963 

RECENT PUBLICATIONS 

Sales of Capital Assets reported on Individual Income Tax Returns for 1962 

(153 pp., $1.00) 
U. S. Business Tax Returns with accounting periods ended July 1964- June 1965, 

Preliminary 
State and Metropolitan Area Data for Individual Income Tax Returns: 1959, 1960, 

and 1961 (82 pp., 55p) 
Corporation Income Tax Returns with accounting periods ended July 1963-June 

1964, Preliminary (38 pp., 30f) 
Fiduciary, Gift, and Estate Tax Returns filed during 1963 (108 pp., 65?) 
Farmers' Cooperative Income Tax Returns for 1963 (58 pp., 40p) 

Statistics of Income publications are for sale by the Superintendent of Documents, 
U. S. Government Printing Office, Washinoton, D. C. 20402 



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