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26 U.S.C. § 3 — Tax tables for individuals

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 307 words · no verdicts yet

in plain englishAI-generated · not legal advice

Instead of the regular tax formula, the Secretary can publish tax tables for people whose income is below a set ceiling and who do not itemize deductions. Those tables use the same rates as the standard tax law and are treated as that same tax for other purposes.

(a) Imposing the tax-table tax. (1) In general. For any individual who does not itemize deductions for the year, and whose taxable income for the year does not exceed the "ceiling amount," the Secretary must prescribe a table — instead of using the regular formula in section 1 — that sets the tax owed. The Secretary decides the table's form, but the amounts in it must be based on the rates section 1 sets. (2) Ceiling amount defined. The "ceiling amount" is at least $20,000, and the Secretary sets the exact figure for each tax-rate category. (3) Tables for people who itemize. The Secretary may also apply this system to people who do itemize deductions; any table made for them must be based on taxable income. (b) Who this section does not apply to. This section does not apply to: (1) an individual filing a return under section 443(a)(1) for a period under 12 months because their accounting year changed, or (2) an estate or trust. (c) Tax treated as imposed by section 1. For purposes of this title, the tax figured under this section's tables is treated as if it were the tax imposed directly by section 1. (d) Taxable income. Whenever someone needs to figure the taxable income of a person this section applies to, that taxable income is determined under section 63. (e) Cross reference. Section 6014 explains how the Secretary computes the tax.
the actual law source: uscode.house.gov ↗public domain
(a) Imposition of tax table tax
(1) In general

In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year on the taxable income of every individual—

(A)

who does not itemize his deductions for the taxable year, and

(B)

whose taxable income for such taxable year does not exceed the ceiling amount,

a tax determined under tables, applicable to such taxable year, which shall be prescribed by the Secretary and which shall be in such form as he determines appropriate. In the table so prescribed, the amounts of the tax shall be computed on the basis of the rates prescribed by section 1.

(2) Ceiling amount defined

For purposes of paragraph (1), the term “ceiling amount” means, with respect to any taxpayer, the amount (not less than $20,000) determined by the Secretary for the tax rate category in which such taxpayer falls.

(3) Authority to prescribe tables for taxpayers who itemize deductions

The Secretary may provide that this section shall apply also for any taxable year to individuals who itemize their deductions. Any tables prescribed under the preceding sentence shall be on the basis of taxable income.

(b) Section inapplicable to certain individuals

This section shall not apply to—

(1)

an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in annual accounting period, and

(2)

an estate or trust.

(c) Tax treated as imposed by section 1

For purposes of this title, the tax imposed by this section shall be treated as tax imposed by section 1.

(d) Taxable income

Whenever it is necessary to determine the taxable income of an individual to whom this section applies, the taxable income shall be determined under section 63.

(e) Cross reference

For computation of tax by Secretary, see section 6014.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 8; Pub. L. 88–272, title III, § 301(a), Feb. 26, 1964, 78 Stat. 129; Pub. L. 91–172, title VIII, § 803(c), Dec. 30, 1969, 83 Stat. 684; Pub. L. 94–12, title II, § 201(c), Mar. 29, 1975, 89 Stat. 29; Pub. L. 94–455, title V, § 501(a), Oct. 4, 1976, 90 Stat. 1558; Pub. L. 95–30, title I, § 101(b), May 23, 1977, 91 Stat. 131; Pub. L. 95–600, title IV, § 401(b)(1), Nov. 6, 1978, 92 Stat. 2867; Pub. L. 95–615, title II, § 202(f), as added Pub. L. 96–222, title I, § 108(a)(1)(A), Apr. 1, 1980, 94 Stat. 223; Pub. L. 96–222, title I, § 108(a)(1)(E), Apr. 1, 1980, 94 Stat. 225; Pub. L. 97–34, title I, §§ 101(b)(2)(B), (C), (c)(2)(A), 121(c)(3), Aug. 13, 1981, 95 Stat. 183, 197; Pub. L. 99–514, title I, §§ 102(b), 141(b)(1), Oct. 22, 1986, 100 Stat. 2102, 2117.)

history & why it existsrecord from the source credit
  • 1954Enacted · Act of Aug. 16, 1954, ch. 736
  • 1964Amended · Pub. L. 88-272 · 78 Stat. 129
  • 1969Amended · Pub. L. 91-172 · 83 Stat. 684
  • 1975Amended · Pub. L. 94-12 · 89 Stat. 29
  • 1976Amended · Pub. L. 94-455 · 90 Stat. 1558
  • 1977Amended · Pub. L. 95-30 · 91 Stat. 131
  • 1978Amended · Pub. L. 95-600 · 92 Stat. 2867
  • 1980Amended · Pub. L. 95-615 · 94 Stat. 223
  • 1980Amended · Pub. L. 96-222 · 94 Stat. 225
  • 1981Amended · Pub. L. 97-34 · 95 Stat. 183, 197
  • 1986Amended · Pub. L. 99-514 · 100 Stat. 2102, 2117

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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