73d C ONGRESS . SESS. II. CH. 277 . MAY 10, 1934 .
693 (C) " Earned net income " means the excess of the amount of INCOM E TAX . PTA TI ON the earned income over the sum of the earned income deduc- of NETINCOME- tions. If the taxpayer's net income is not mor e tha n $3 ,00 0, C o Earned net in. his entire net income shall be considered to be earned net come ." income, and if his net income is more than $3,0 00, his earned net income shall not be considered to be less than $3,000. In no case shall the earned net income be considered to be more than $14,000. (b) CREDITS FOR BOTH NORMAL TAX AND SURTAX .-There shall be Cr edits for bot h nor- allowed for the purposes of the normal tax and the surtax the fol- mal tax and surtax lowing credits against net income (1) P ERSONAL EX EMPTION .-I n the c ase ofa single pe rs on, a Personal exemption. personal exemption of $1,000 ; or in the case of the h ead ofa Single person . family or a married person living with husband or wife, a personal ex emptio n of $2,50 0 . A husband and wi fe living together shall Husband and wife receive but one personal exemption . The amount of su ch personal liv ing to gether . exemption shall be $2,500 . If such husband and wife make Separate returns . sepa rate ret urns, th e person al exemp tion may be taken by eith er or divided between them . (2) CREDIT FOR DEPENDENTS .---$400 for each person (other than credit for depend- husband or wife) dependent upon and receiving his chief support ent, . from the taxpayer if such dependent person is under eighteen years of age or is incapable of self-support because mentally or physically defective . (3) CHANGE OF STATUS .-If the status of the taxpayer, insofar Change of status as it af fects the person al ex empti on or credi t for depen dents , during taxahle year . chan ges duri ng the t axable y ear, the personal exempti on and c redit shall be apportioned, under rules and regulations prescribed by the Commissi oner wit h the ap proval o f the Sec retary, in accor dance with the number of months before and after such change . For the purpose of such apportionment a fractional part of a month shall Apportionment . be disregarded unless it amounts to mor e tha n hal f a month in which case it shall be considered as a month . SE C. 26. CREDITS OF CORPORATION AGAINST NET IN COM E. For the purpose only of the tax imposed by section 13 there shall be allowed as a credit against net income the amount received as interest upon obligations of the United States or of corporations organized under Act of Congress which is allowed to an individual as a credit for purposes of normal tax by section 25 (a) (2) or (3) . Part III-Credits Against Tax SE C. 31. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF UNITED STAT ES . The amount of income, war-profits, and excess-profits taxes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax, to the extent provided in section 131 . SEC. 32. TAXES WITHHELD AT SOURCE . The amount of tax withheld at the source under section 143 shall be allowed as a credit against the tax . SEC. 33. CREDIT FOR OVERPAYMENTS . For credit against the tax of overpayments of taxes imposed by this title for other taxable years, see section 322 . Credits allowed cor- porations . Interest on United Sta tes sec urities . Ante, p . 682. CREDIT S AGAINST TAX . Taxes of foreign coun- tries and U .S . posses- sions. Extent of credit for . Post, p . 718 Taxes withheld st source . Post, p . 722 Overpayments Poet, p. 750 .
