40
INTERNAL REVENUE CODE OF 1954 (7) Earnings of ship contractors deposited in special reserve funds, see section 607(h) of the Merchant Marine Act, 1936, as amended (52 Stat. 961, § 28; 46 U.S.C. 1177); (8) Income derived from Federal Reserve banks, including capital stocl( and surplus, see section 7 of the Federal Reserve Act (38 Stat. 258; 12 U.S.C. 531); (9) Income derived from Ogdensburg bridge across Saint Lawrence River, see section 4 of the Act of June 14, 1933, as amended (54 Stat. 259, § 2); (10) Income deri/ed from Owensboro bridge across Ohio River and nearby ferries, see section 4 of the Act of August 14, 1937 (50 Stat. 643); (11) Income derived from Saint Clair River bridge and ferries, see section 4 of the Act of June 25, 1930, as amended (48 Stat. 140, § 1); (12) Leave compensation payments under section 6 of Armed Forces Leave Act of 1946, see section 7 of that Act (60 Stat. 967; 37 U.S.C. 36); (13) Mustering-out payments made to or on account of veterans under the Mustering-Out Payment Act of 1944, see section 5(a) of that Act (58 Stat. 10; 38 U.S.C. 691e); (14) Railroad retirement annuities and pensions, see section 12 of the Railroad Retirement Act of 1935, as amended (50 Stat. 316; 45 U.S.C. 2281); (15) Railroad unemployment benefits, see section 2(e) of the Railroad Unemployment Insurance Act, as amended (52 Stat. 1097; 53 Stat. 845, § 9; 45 U.S.C. 352); (16) Special pensions of persons on Army and Navy medal of honor roll, see section 3 of the Act of April 27, 1916 (39 Stat. 54; 38 U.S.C. 393); (17) Gain derived from the sale or other disposition of Treasury Bills, issued after June 17, 1930, under the Second Liberty Bond Act, as amended, see Act of June 17, 1930 (C. 512, 46 Stat. 775; 31 U.S.C. 754). (b) For extension of military income-tax-exemption benefits to commissioned officers of Public Health Service in certain circumstances, see section 212 of the Public Health Service Act (58 Stat. 689; 42 U.S.C. 213). PART IV—STANDARD DEDUCTION FOR INDIVIDUALS Sec. Sec. Sec. Sec. Sec.
141. 142. 143. 144. 145.
Standard deduction. Individuals not eligible for standard deduction. Determination of marital status. Election of standard deduction. Cross reference.
SEC. 141. STANDARD DEDUCTION. The standard deduction referred to in section 63(b) (defining taxable income in case of individual electing standard deduction) shall be an amount equal to 10 percent of the adjusted gross income or $1,000, whichever is the lesser, except that in the case of a separate return by a married individual the standard deduction shall not exceed $500. SEC. 142. INDIVIDUALS NOT ELIGIBLE FOR STANDARD DEDUCTION. (a) HUSBAND AND W I F E. — The standard deduction shall not be allowed to a husband or wife if the tax of the other spouse is determined under section 1 on the basis of the taxable income computed without regard to the standard deduction. (b) CERTAIN OTHER TAXPAYERS INELIGIBLE.—The standard deduction shall not be allowed in computing the taxable income of— (1) a nonresident alien individual; (2) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States); § 121(a)(7)
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