78TH CONG., 2D SESS.- CH. 63-FEB. 25, 1944 (b) TECNICAL AMENDMENT. -Section 404 (relating to certain tax- payers ineligible to compute tax under alternative method) is amended by inserting after "nonresident alien individual," the following: "to a citizen of the United States entitled to the benefits of section 251,". SEC. 103. DETERMINATION OF STATUS FOR PURPOSES OF PERSONAL EXEMPTION AND CREDIT FOR DEPENDENTS. Section 25 (b) (relating to credits for both normal tax and surtax) is amended by striking out paragraph (3) and inserting in lieu thereof the following: "(3) Determination of Status.- For the purpose of determin- ing the amount of the personal exemption and credit for depend- ents, the status of the taxpayer shall be determined as of July 1 of the taxable year, unless the taxable year does not include July 1, in which case such status shall be determined as of the last day of the taxable year." SEC. 104. REDUCTION OF CREDITS IN CASE OF SHORT YEAR LIMITED TO JEOPARDY. Section 47 (e) (relating to reduction of personal exemption and credit for dependents in case of short taxable year) is amended by striking out , except a return made under subsection (a), on account of a change in the accounting period" and inserting in lieu thereof "under section 146 (a) (1)". SEC. 105. RETURNS OF INCOME. (a) INDIVIDUAI RrTu s.- N -Section 51 (relating to individual returns) is amended by inserting at the end thereof the following: "(f) Determination of Status. -For the purposes of this section and section 142 (a), the determination of whether an individual is married and living with husband or wife shall be made as of July 1 of the taxable year, unless the taxable year does not include July 1, in which case such determination shall be made as of the last day of the taxable year." (b) JOINT RETUrrN. - Section 51 (b) (relating to joint returns) is amended by inserting before the period at the end thereof "or if hus- band and wife have different taxable years". SEC. 106. VICTORY TAX. (a) CHANGE IN RATE.- Section 450 (imposing the Victory tax) is amended by striking out "5 per centum" and inserting in lieu thereof "3 per centum". (b) REPEAL OF CRETrrs AGAINST VICTORY TAx. - -Section 453 (relat- ing to credits against the Victory tax) is repealed. (c) TECHNICAL AMENDMENTS. - (1) Section 456 (relating to the 90 per centum limitation) is amended (A) by striking out ", computed without regard to the credits provided in sections 453 and 466 (e)," and (B) by striking out "35 and 466 (e)" and inserting in lieu thereof "and 35". (2) Section 34 (cross reference) is repealed. SEC. 107. REPEAL OF EARNED INCOME CREDIT. (a) IN GENaEA--Section 25 (a) (3) and (4) (relating to earned income credit for normal tax), and section 185 and section 47 (d) (relating toearned income) are repealed. 31 55 Stat. 692. 26 U. . C., Supp. II, § 404. Post, p. 234 . 53 Stat. 79. 26U.S.C.§251; Supp. III, 251 . Post, p. 240 . 53 Stat. 18. 26U.S.C.i25(b) (3). Post, p. 238. 53 Stat. 26 . 26U. S.C . 147 (e). Post, p . 239. 53 Stat. 63. 26U. . c.. 146(a) (1). 53 Stat. 27. 26U..c.. 51; SBnp. III, 51. Posl,p . 240. 53 Stat. 60 . 26 U. S. C., Supp. III. 142 (a). Post, p. 241 . 53 Stat. 27. 26U. S.C. 51 (b). Post, p. 240. 56 Stat. 884 . 26 U. S. C., Supp. Il, 1 450. Post, p . 234. 56 Stat. 885 . 26 U. S. C., Supp. in, 453. Post, p . 234. 56 Stat. 887. 26 U. S. C., Supp. II, § 456. Post, p. 234 . 56 Stat. 893. 26 U. S. C., Supp. m, 34. 53 Stat. 18, 70, 26. 26 U.S.C.§§25(a) (3) and (4), 185, 47 (d). 58 STAT.]
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