1977 In'dividual - Internal Revenue Service

1977 In'dividual
Statistics ulm@o)ffn& 'AZZ
of Incomp.
MMMITIM,(~3

Statistics
of Income
Recent publications for sale
Individual Income Tax Returns, 1978
Preliminary
Individual Income Tax Returns, 1976
(269 pp., $6.00)
ZIP Code Area Data, Individual Income
Tax Returns, 1969 (131 pp., $2.75)
Business Income Tax Returns, 1977
Preliminary (52 pp., $2.50)
Business Income Tax Returns, 1976
(454 pp., $8.00)
Corporation Income Tax Returns, 1976
Preliminary (26 pp., $1.75)
Corporation Income Tax Returns, 1975
(235 pp., $6.00)
Estate Tax Returns, 1976 (60 pp., $3.25)
Personal Wealth Estimated from Estate
Tax Returns, 1972 (62 pp., $1.75)
Fiduciary Income Tax Returns, 1974
(98 pp., $2.75)
Small Area Data from Individual Income
Tax Returns, 1974 (447 pp., $6.00)
International Income and Taxes, Foreign
Tax Credit Claimed on Corporation
Returns, 1968-1972 (184 pp., $3.75)
International Income and Taxes, U. S.
Corporations and their Controlled
Foreign Corporations, 1968 and 1972
(235 pp., $5.50)
Statistics of Income publications are for
sale by the Superintendent of Documents,
U.S. Government Printing Office
Washington, D.C. 20402
Other
Publications
Publications In preparation
Sales of Capital Assets Reported on
Individual Income Tax Returns, 1973
Business Income Tax Returns, 1978
Preliminary
Business Income Tax Returns, 1977
Returns of Private Foundations Exempt
from Income Tax, 1974
International Income and Taxes, Domestic
International Sales Corporation
Returns, 1972,1973, and 1974
International Income and Taxes, Foreign
Tax Credit Claimed on Corporation
Income Tax Returns, 1974
Individual Retirement Arrangements, 1976
Corporation Income Tax Returns, 1976
Corporation Income Tax Returns, 1977
Preliminary
Small Area Data from Individual Income
Tax Returns, 1976
International Income and Taxes, Foreign
Income and Taxes on Individual Income
Tax Returns, 1975

1977'
Statistics
of Income
Section
Individual
IN
Returns Filed and Sources of Income
Deductions and Exemptions
Tax- Computation and Tax Rates
4 Age 65 or Over; Credit for the Elderly
5 State Data
6 Explanation of Terms
7 Sources, Sample, and Limitations of the Data
8 Forms and instructions
Index

1977
Statistics
of Income
Department of the Treasury
internal Revenue Service
Jerome Kurtz
Commissioner
William E. Williams
Deputy Commissioner
Russell E. Dyke
Assistant Commissioner
(Planning and Research)
Individual
H&~U[TnQ3
Publication 79 (5-80)
Statistics Division
Howie Wilson
Acting Director
Bennett R. Moss
Acting Assistant Director
Lillie B. Dorsey
Acting Chief, Planning and Review Staff
Robert A. Wilson
Chief, Statistics of Income Branch I
William J. Smith, Jr.
Acting Chief, Statistics of Income
Branchli
John P. Hiniker
Chief, Projections and Special Studies
Branch
Raymond C. Sensing
Chief, Mathematical Statistics Branch
Thomas M. Durkin
Chief, Operations Branch
This report was prepared in the Statistics
of Income Branch 11 by the Individual
Income Statistics Section under the
direction of Jack Blacksin.
This report annually contains data on sources of income, adjusted gross
income, exemptions, total deductions, taxable income, income tax, tax
credits, self-employment tax, tax withheld, and taxpayments. Also shown
are foreign and domestic dividends, capital gains and losses, 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.
Suggested citation
Internal Revenue Service
Statistics of Income- 1977,
Individual Income Tax Returns
Washington, D.C. 1980
Stock No. 048-004-
Library of Congress Card No. 61-37567

COMMISSIONER OF INTERNAL REVENUE
The Honorable G. William Miller
Secretary of the Treasury
Washington, DC 20220
Dear Mr. Secretary:
Washington, DC 20224
April 29, 1980
As required by section 6108 of the Internal Revenue Code, we
have prepared for publication the complete report, StAt"tiU 06
Income--1977, Individuat Income Tax Retuk" This report, based on a
sample drawn from the 86.6 million returns filed during Calendar Year
1978, presents estimates of taxpayers' income, exemptions, deductions,
credits, and tax. Major classifiers used are size of adjusted gross
income, marital status, and State of residence, as well as taxable
and nontaxable returns. The report provides data on the new tax
provisions introduced by the Tax Reduction and Simplification Act of
1977, including the zero bracket amount and the new jobs credit, as
well as provisions effective for Tax Year 1977 that were specified by
the Tax Reform Act of 1976.
With kind regards,
Department of the Treasury Internal Revenue Service
IM

Contents
Guide to Basic Tables, iv
Introduction, v
Requirements for Filing, v
Change~s in Law, vi
Section I
Returns Filed and Sources of
Income, 1
Section 2
Deductions and Exemptions, 47
Section 3
Tax Computation and Tax Rates, 69
SeCt;n.. A
Taxpayers Age 65 or Over; Credit
for the Elderly, 135
Section 5
State Data, 151
Section 6
Explanation of Terms, 193
Section 7
Sources of the Data, Description
of the Sample and Limitations of
the Data, 211
Section 8
1977 Forms and Instructions, 225
Section 9
Indexi 279
IV!
Guide to. -
Sasic Tables,,
Section 1
Returns Filed and Sources of Income
Cumulated income and taxes (table
1-1), 7
All returns by marital status
(tables 1.2, 1.3), 10, 16
Sources of income (table 1.4), 17
Joint returns (table 1.5), 26
Returns by size of income under
alternative concepts (table 1.6), 34
Nontaxable returns (table 1.7), 40
Returns with and without
presidential election campaign
fund checkoff (table 1.8), 41
form 1040A returns (tables 1.9,
1.10), 42, 43
Deductions and Exemptions
Itemized deductions:
By type (table 2.1 ), 51
Sources of income by marital
status (table 2.2), 52
Taxes paid deduction (table
2-3), 53
Contributions deduction
(table 2.4), 54
Medical and dental expense
deduction (table 2.5), 55
Total miscellaneous
deductions (table 2.6), 58
Interest paid deduction
(table 2.7), 59 ~,
Investment interest expense
(table 2.8), 66 .
Exemptions by type (table 2.9), 63
Exemptions by marital status
(table 2.10), 68
Section 3
Tax Computation and Tax Rates
Type of tax computation (table
3-1), 81
Maximum tax on personal service
income (table 3.2), 85
Sales of capital assets (table
3-3), 86
Tax generated by rate (tables 3.4,
3.5). 88, 93
By marital status (tables
3.6, 3.7, 3.8, 3.9), 97, 100,
103, 108
Total income tax (tables 3.10,
3.11), 111, 114
Income tax before credits (table
3.12), 116
CLcilL " L&LU-Lt! i ' - '-' 118
Child care expenses (table 3.14). 119
Additional tax for tax preferences
(table 3.15), 120
Taxpayments (table 3.16), 123
Tax due (table 3.17, 3.20), 127, 132
Tax overpayment (tables 3.18~.
3.19), 127, 128
Section 4
Taxpayers Age 65 or Over; Credit
for the Elderly
Sources of income (table 4.1), 139
Itemized deductions (table 4.2), 144
Credit for the elderly (table 4.3),
145
Section 5
State Data
Sources of income (table 5.1), 153
Zero bracket amount and itemized
deductions (table 5.2), 156
Income tax before credits (table
5.3), 159
Exemptions by type (table 5.4), 162
By size of adjusted gross income
(table 5.5), 165 -

Introduction
The data presented in this
report are estimates based on a
stratified sample of individual
income tax returns, selected
before audit, and represent
coverage of the 86.6 million Forms
1040 and 1040A filed by the
Nation's taxpayers for income
Year 1977. Coverage of returns
below the income levels described
under "Requirements for Filing"
was generally limited to persons
filing for a refund of income tax
withheld or for self-employment
tax purposes. In addition, the
"earned income credit," which was
continued for 1977 by the Tax
Reform Act of 1976, made it beneficial
for certain low-income
persons to file returns, even if
they had no other reason to file.
The Internal Revenue Code of
1954, as amended, provided the
legal basis for tax activity
detailed in this report.
Revisions to the Internal Revenue
Code which affected the comparability
of some of the data in this
report with data presented for
previous years are described under
"Changes in Law."
Requirements
for Filing
The principal criterion which
determined whether an individual
had to file a return was the size
of gross income (all income
received in the form of money,
property, and services, that was
not, by law, expressly exempt from
tax), specified according to the
individual's marital status
(defined in section 6, Explanation
of Terms). For 1977, a return had
to be filed by:
(1) a single person (other
than a surviving spouse) under age
65 with gross income of at least
$2,950 (as compared to a $2,450
filing requirement for 1976);
(2) a single person (other
than a surviving spouse) age 65 or
over with gross income of at least
$3,700 ($3,200 for 1976);
(3) a surviving spouse under
age 65 with gross income of at
least $3,950 ($2,850 for 1976);
(4) a surviving spouse age 65
or over with gross income of at
!east $4,700 ($3,600 for 1976);
(5) a married couple, filing
a joint return, with both spouses
under age 65 and with a combined
gross income of at least $4,700
($3,600 for 1976);
(6) a married couple with one
spouse age 65 or over and with a
combined gross income of at least
$5,450 ($4,350 for 1976);
(7) a married couple with
both spouses age 65 or over and
with a combined gross income of at
least $6,200 ($5,100 for 1976);
(8) a married person,
regardless of age, whose spouse
was filing a separate return
(e.g., to obtain a refund of
income tax withheld), if that
married person had a gross income
of $750 or more (no change from
1976). In addition, children claimed
as dependents on their parents'
returns had to file if they had
"unearned income" (such as
dividends, interest, or capital
gains) of $750 or more. Selfemployed
persons also had to file
if they had "self-employment
income" of $400 or more in order
to pay self-employment tax.
Finally, some taxpayers filed
returns, even though they did not
meet the filing requirements,
either to obtain reimbursement of
income tax withheld or to claim
the earned income credit.
Most taxpayers had to file
tax returns within 3-1/2 months
after the close of their
accounting periods. Since the
accounting period used by nearly
all individuals was Calendar Year
1977, this meant that returns were
due by April 15, 1978. However,
each taxpayer could be granted,
upon request, one automatic
2-month extension of time to file
if he or she paid any estimated
tax due by the original due date,
by which time the request for an
extension had to be made. In
addition, U.S. citizens residing
or traveling outside the United
States and Puerto Rico were
automatically granted (without
requesting) the 2-month extension.
V

.
Changes in Law
There were two major revisions
to the Internal Revenue Code which
affected the comparability of the
data presented in this report with,
those presented for previous years
the Tax Reform Act of 1976 and the
Tax Reduction and Simplification
Act of 1977. Both of these laws
had provisions which affected Tax
Year 1976; however, the major
provisions of the 1977 Act and
several provisions of the 1976 Act
became effective for Tax Year 1977.
The Tax Reduction and Simplification
Act of 1977, which mandated
the filing requirements
detailed above, also initiated the
following tax law changes:
(1) the establishment of the
"zero bracket amount," a single
deduction amount, based-on marital
status, which replaced the former
two-part standard deduction (i.e.,
the minimum low-income allowance
and the percentage standard deduotion);
this zero bracket amount
was applicable to all taxpayers,
including those who itemized their
deductions;
(2) the revision of the tax
rate schedules and tax tables to
take account of the new zero tax
bracket and "zero bracket amount";
(3) the establishment of a new
income concept, "tax table income,"
as well as a change in the definition
of "taxable income" to include
the "zero bracket amount"; both of
these income concepts were used as
the basis for determining income
tax, with the taxpayer's marital
status, size of income, and number
of exemptions determining which
one was applicable; and,
(4) the introduction of a
"new jobs" credit, used to reduce
income tax, based on the wages
paid to new employees hired by
businesses.
The following provisions of
the Tax Reform Act of 1976 also
became effective for Tax,Year 1977:
(1) the extenpion of the
earned income credit (which was
to have expired June 30, 1976)
through taxable years ending
before January 1, 1978;
(2) the revision of the
"maximum tax" computation to apply
to pensions and annuities, in addition
to other earned income, and
VP
0 eliminate the $30,000 tax
preferences exemption as well as
the optional averaging of tax
preferences for purposes of the
computation of the net income
subject to the maximum tax;
.(3) the change in the
.treatment of alimony payments,
from an itemized deduction (and a
deduction:from adjusted gross
income) to a statutory adjustment
(and a deduction from gross
income);
(4) the liberalization of the
requirements for the moving expense
deduction (used in arriving at
adjusted gross income), by decreasing
the number of miles necessary
to qualify and increasing the
maximum amounts deaudtlbie;
(5) the extension for 4 years
of the 10 percent rate on qualified
investment for purposes of
the investment tax credit;
(6) the increase in the
amount of net capital loss (from
$1,000 to $2,000) which could be
used to offset ordinary income in
any one year;
(7) the change in the holding
period (from 6 to 9 months) necessary
for a capital asset to qualify
as "long-term";
(8) the increase in the base
amount (from $20,000 to $35,000)
excluded from-the taxable gain on
the sale of a principal residence
by a taxpayer age 65 or over;
(9) the authorization of an
individual retirement arrangement
(IRA) for a nonworking spouse, the
contributions to which were
allowed as a statutory adjustment
to gross income; and
(10) the liberalization of
the rules pertaining to the work
incentive (WIN) program credit.
In addition to the law changes
cited above, the Tax Reform Act of
1976 contained the following
provisions which were later
amended or revised by the Tax
Reduction and Simplification Act
of 1977. These included:
(1) the extension of the
general tax credit through
December 31, 1977; the computation
of this credit was modified for
1977 by the Tax Reduction and
Simplification Act to allow the.
exemptions for age and blindness
to be used in computing the
personal exemption portion of the
credit and.to require married
persons filing-separate returns to
use only this method (instead of
using the larger of the personal
exemption credit or the taxable
income credit) to arrive at-the
general tax credit; -
(2) the institution, as of
January 2, 1977, of withholding
on certain gambling winnings,
generally on winnings of more than
$1,000; the Tax Reduction and
Simplification Act of 1977
modified this rule by requiring
withholding on amounts in excess
of $1,000 from parimutuel pools
involving horse and dog races and
jai alai where Lhe uddo war-6 aL
least 300 to 1, effective for -
payments made after April 30, 1977;
(3) the replacement, for
taxpayers age 65 or over, of the
retirement income credit with a
new, generally more liberal,
"credit for the elderly," although
there were provisions for reducing
or eliminating the credit for taxpayers
with higher incomes; the
1977 Act postponed the effective
date of this provision from 1976
to 1977; and
(4) the abolition of the sick
pay exclusion, and the introduction
of a much. more restrictive
"disability income exclusion" which
was applicable only to persons
under age 65 who were totally and
permanently disabled and which
could be reduced or eliminated for
taxpayers with higher incomes; the
1977 Act also postponed the effective
date of this provision from
1976 to 1977.
In addition to the above
provisions, the Tax Reform Act of
1976 revised the method of
taxation used by individuals with
income earned abroad by decreasing
the amount of earned income which
could be exempted from taxation
and by applying higher tax rates
to the remaining (non-exempt)
income. This provision was
postponed for one year by the Tax
Reduction and Simplification Act
of 1977 and later postponed for
one more year, as well as revised,
by the Foreign Earned Income Act
of 1978. Because the Foreign

Earned Income Act of 1978 was not
enacted until ' November 8, 1978,and
because amended return d4ta
are not normally used for purposes
of this report, no attempt was
made to reflect the changes
instituted by the 1978 Act.
Therefore, the data for income
earned abroad reflect primarily
OW provisions specified by the
Tax Reform Act of 1976 as
postponed by the Tax Reduction and
Simplification Act of 1977. See
atzo section 1, Returns Filed and
Sources of Income, and section 3,
Tax Computation and Tax Rates.
A description of each of the
new items is given in section 6,
Explanation of Terms, while
further information and the data
for all affected items are shown
in sections 1 through 4.
Changes in Law
V11

Section 1
Contents
Introduction, 2
Statutory adjustments to gross
income, 2
Payments to an individual
retirement account (IRA), 2
Disability income exclusion, 3
Income earned abroad, 3
High-income returns, taxable and
nontaxable, 4
Text tabtez
1A Sources of income and
selected tax items, 1976 and
1977, 1
1B Number of returns by marital
status and size of adjusted
gross income, 2
1C All returns and nontaxable
returns by size of adjusted
gross income, 1969-1977, 5
1D Number of nontaxable returns,
classified by size of income
under alternative concepts, 6
1E Returns with payments to an
individual retirement
account: number of returns
and number of covered
individuals, by type of plan
and size of adjusted gross
income, 6
Returns Filed
and Sources
of Income
1F Returns with disability
income payments: computation
of disability income
exclusion, 7
ChaAt6
1A Number of returns filed by
size of adjusted gross
income, 1967, 1972, and 1977, 3
1B Returns with payments to an
individual retirement
account: percent of
individuals covered by type
of plan, 4
Ba.6iC tab-teA
1.1 Selected income and tax
items, by size and
accumulated size of adjusted
gross income, 7
1.2 All returns:.adjusted gross
income, itemized deductions,
exemptions, and tax items by
size of adjusted gross income
and by marital status, 10
1.3 All returns: sources of
income, deductions, and tax
items by marital status, 16
Table IA.--Sources of Income and Selected Tax Items, 1976 and 1977
[AM figLaaa we esfirnatea based on ammft are in 1housards of Mara]
ftorn
*BOW of returr% fow ............................................................................................................................................
Taxable ............................................................................................................... ........................ ..
Norftc. ...... T ....................................................................................................": .......................... :..: ......... .. ....
Adoefed groaa hxu, leae ddd ...................................................................................................................................
SO=" of kmow.
salarl" ard wag" ................................................................................................................................................
Businew and Mlessim rat proM leae Ioaa .......................................................................................................................
Farm W proffl leae Ioaa ...........................................................................................................................................
Pwbwft rat profft IM IM .....................................................................................................................................
&W Bw1neae Corporadon W profit Im Ioaa ....................................................................................................................
sales of CWW rot gain leae W .........................................................................................................................
Wdemb In adlusfed groaa kxxmw ................................................................................................................................
IntereM rec*IM ...................................................................................................................................................
ROM ro Wcorne IM im .........................................................................................................................................
Ronk M hwmn IM Ioea ......................................................................................................................................
Estafes or WO rot korne Im bee .............................................................................................................................
AN ofhar a== (r*W ............................................................................................................................................
ToW sWutory a*nhwft ...........................................................................................................................................
Tomble incorW ......................................................................................................................................................
Incorne tax before , ~ . . ............................................................................................................................................
TOW Craft ................................................................... I ......................................................................................
biwrne tax aft oredb ..............................................................................................................................................
AdMlorW ta for tax peferet ....................................................................................................................................
TOW kXXMW tax ............................................ I ........................................................................................................
sdf.~ tv ..................................................................................................................................................
ToW tax 9abft ......................................................................................................................................................
1.4
1.5
1.6
1.7
1.8
1.9
1.10
All returns: sources of
income and adjustments by
size of adjusted gross income, 17
Joint returns: sources of
income, deductions, and tax
items by size of adjusted
gross income, 26
All returns, taxable returns,
and nontaxable returns:
number of returns, income,
deductions, and credits, by
size of income under
alternative concepts, 34
Nontaxable returns: sources
of income, deductions, and
tax items by size of adjusted
gross income and deficit, 40
Returns with and without
presidential election
campaign fund checkoff:
response boxes checked by
marital status and size of
adjusted gross income, 41
Form 1040A returns: sources
of income, deductions, and
tax items by marital status, 42
Form 1040A returns: sources
of income, deductions, and
tax items by size of adjusted
gross income, 43
1976
(1)
HAMM
64421.387
20~4_9,022
1,053,895,687
$80,998,631
44,499,461
3,455.781
11,68Z470
1,876,986
18,581.863
24,461,943
48,588.111
3,850,773
2,027.427
Z871.407
27AX117
16284.275
674,866,9U
153,534,155
IZ73ZM
140,801,196
1,MO.2M
14101.470
3,839.698
145.748,002
LCornpftu'xm frompensloi andarwadesinaosatedgraulKa, 901hOMWIM"Imm"W01 WOWVOUWVWCWW &SOM16 SUM I Iwn WreftroftaftonyandodwhKa orlaw
4naMbe z= brWW arnoun
NOTE. D@tM may rol add to tM becftm of rwding.
1977
(2)
IM34,640
64,381.138
22,253,602
1,158,492,225
969.403.997
49,451,960
504.1%
13,313.657
1.973,133
2D.776.6D5
27,020,483
54,603,049
Z986,778
Z24tW
Z763,650
3Z78Z668
19In=
938,968,454
17ZI11,669
13,637,761
158,473.9DB
1=015
159,796,824
4,074,592
184.024,104
Change, 1978
to 1977
(3)
IP4,nl
_4=9
Z004,480
104.5K538
88,40UN
4.95Z499
-ZO61,525
1,631,187
97,147
Z214,762
Z556.540
UK=
--m,995
213,027
-107,757
5A76,551
3.045,088
284.101,488
1077,514
904M
17,67Z712
32ZO42
17,995,354
23094
18X5=

2.
Introduction
Individual
in
The information presented
this section covers primarily
the number of returns filed for
Income Year 1977 and the sources
of income, including the statutory
adjustments to gross income,
reported on these retums. The
major classifications of these
ret_u_fti`sd_r_e_si7z_e -of-ad jU--st_ed-_gr_-o ss
income, marital status, and taxa~
bility or nontaxability of the
return. Characteristics, such as
sources of income and selected tax
items, of the returns filed for
1977 compared to 1976 are summarized
in table A. Table 1B
compares the changes from 1976 to
1977 in the number of returns
filed by marital status and size
of adjusted gross income. Chart
1A shows the changes in the number
of returns filed by size of adjusted
gross income for 1967,
1972, and 1977. A 9-year summary
of nontaxable returns as a proportion
of all returns by size of
adjusted gross income is presented
in table 1C.
Topics of special interest for
which data are presented are
nontaxable returns, high-income
returns, returns of taxpayers
filing Form 1040A, returns with a
"yes".answer to the presidential
election campaign fund checkoff
questions, returns with disability
Returns/1977 9 Returns.Filed-and Sources of Income
Table IS.-Number of Returns by Marital Status and Size of Adjusted Gross Income
IM figtaes we eftna based on sampM]
income payments, and returns with income (to arrive at adjusted
payments to an individual
gross income) rather than as an
retirement arrangement (IRA).
itemized deduction from adjusted
gross income (to arrive at taxable
Statutory-AdJustments to Gross
income). In addition, the 1976
Tncome
Act liberalized the requirements
for the moving expense deduction
Adjustments to gross income for 1977 by decreasing, from 50 to
included expenses incurred by 35, the number of miles'necessary
business men and women or by to qualify and by increasing the
-f&tersintlie-course of-ruftmin-9- max mum amount-s-di_du_c_t1b2~e- ._(.Seea
business, as well as certain section 6, Explanation of Terms,
expenses of employees such as for a further description of the
moving or travel expenses. changes in the moving expense
Sole proprietorship expenses were deduction.) Tax law changes
reported on Schedules C and F (or, affecting the disability income
in the case of partnerships or exclusion and the adjustment for
Small Business Corporations, on payments to an IRA are discussed
the appropriate forms filled in by separately below..
these entities) and are detailed
in the reports StAtiAtLU 06
Income--8u6ine6,6 Income Tax
Payments to an Individual
Retirement Account (IRA)
RetUVU and Stati6tic,6 oJ Income--
Co&poAation Income Tax RetutnA.
S~Eitutory adjustments we're
reported on Form 1040 and consisted
Individual retirement
accounts (IRA's) were provided for
by the Employee Retirement Income
of the disability income exclusion, Security Act of 1974 (ERISA) to
payments to an IRA, payments to a. allow employees not covered by
self-employed retirement plan,
qualified pension or retirement
employee business expenses, moving plans to set up their own plans.
expenses, forfeited interest
penalty, and, beginning with 1977,
In addition, self -emp1oyed 0-4r*_s&ii___
not covered by a self-employed.
alimony paid. Data on all of these
items are presented in table 1.4.
The Tax Reform Act of 1976
stipulated that, beginning with
1977, alimony payments were to be
taken as an adjustment to gross
retirement, or Keogh, plan could
also set up an IRA in order to
avail themselves of the.benefit-of
a retirement plan without having
to provide coverage for their
employees and abide by the, other
Sh of adlusted woss h=m and mad1w stabus 1976 1977
(1)
(2)
QWV, 1076
to 1977
AN @*WW gross ca desses ........................................................................................................................... K4701389 $6,834A40 lA4Xl
Johl Mena of husbands and *ins ........................................................................................................................ 44,438,912 44,004,343 -4U,560
Sepande .9tun al husbands and elves ....................................................................................................................
Rearm of haft of households .............................................................................................................................
.1,879,050
6,313,194
W.752
U37,754
--WADS
624,6W
Asuns of KrAft spouses ....................................................................................................
ROM of Wroe p A am s ..............................................................................................I ....................................... * ... * ....... -* ...... """
tkdW SO^ taw, ..................................................................... ..............................................................................
164,630
32,874,8ffi
n^751
152wB37
36,344,V54
nP208
-11.702
Z47OA8
-673,116
JoInt Mena of husbands and wives ............................................................................................................................... 400,308 3.433VO -W,=
Seperatenitu, of husbands and wtves .............................................................................................................
Retums of heads of mueek"s ..................................................................................................................... -----
736.612 531,211
I ..............
ReWns of suivhing op ........................................................... : .........
Retums of Wngle penia .........
~--'*** ...... ......
1^409
52,350
17.401,064
1,64ZI78
29,372
17,62604
1561M
-MUS
ZM640
MW undw SUM WW ......................................................................................................................................... IOP2~050 12,342,819 _6KIST
Joh Mtu= of husbands mid wives ...............................................................................................................................
Sepande mbuns of kabands mid whm ........................................................................... ....
Mane of heads of households ........................................................................................
Ralums of surv" spouses ................................................................................. ; .....................................................
Pah" of sho P A . M I ..........................................................................................................................................
7,879.161
W3,143
Z161.346
68,176
9,161,131
7,000,508
351,956
2.0U.617
47,720
9,864.W9
-478,653
-281.187
-OZ728
--M,447
892,676
010,000 WdW $15M tow ..................................................... : .................................................................................. 14,661M 14PUN -n%l"
Joh ratums of kabanda and wives ........................................................ ; ......................................................................
SOPIVOW miums
OX2,266 80311231 -1,171,035
. Of husbands and wives ............................................................................................................................
Mans of has* of households .............................................................................................. I ..................... ..............
Ratume of arwift spouses ............................. ......... ; ...............................................................................................
Retume of sho persons ................................ : .......................................... I ..................... I ...... I ........... I .....................
31 1,6W
1,044,019
20.947
3,871,5"
224,961
1,278,099
26,276
4,635,740
__W=
234ABO
7=
764,181
slum WWW tow ........................................................................................................................................ ll'i97,191 1lA04JW3 WM
JON relums of and w1ves ......................................................................................................... I ..................... 0,116,780 8,77SX4 --343,396
A ; 1 - reanns of ksbanda aid wives ...........................
Ralums ol haft of . . . ... .................................... !
146,163
412,056
126.111
5M,768
--U.052
118,713
Rehims of vjv*g spouses ....................................................................................................................................... 14,017 Ono -4,737
Fledums of sho pemns ................................. ......... 7
!- ...-- ....... * ..... " * . ! ...... :.: ..... . ...... . .............................................
or am% WIN ...............................................................................................................................................
1,604,196
IMA141
1.963,450
IM25M
46904
3XI#iN
JON Istums of husbanda and WIM .............................. ; ................................................................................................ 13,879,417 16,863.070 Z784XS
980800 mkrrkl of husbands and WIM .................................................................................. I ........................................ 49,481 80,513 IIA32
R&CM of hUft Of households ......................... I ................ I ............ I ............. I ............................................................. 218,460 297,192 78,726
Row" of sunift apouses ....................................................................................................................................... 041 1
38,181 1
29,140
Flabans of sko pemons ............................................................................................. I ............................................ on' : 736 1^isl 3M415
11noludes some wfth no sOsded Won I No
NOM D$W may notedd totood because of rouncing,

Individual Returns/1977 0 Returns Filed and Sources of Income
Chart 1A.
Number of returns filed by size of adjusted gross
income 1967,1972,and 1977
provisions of Keogh plans. For
tax years beginning with 1975,
eligible individuals were allowed
to contribute to such plans the
lesser of $1,500 or 15 percent of
their "earned income," and they
could deduct their contributions
from gross income to arrive at
adjusted gross income.
The Tax Reform Act of 1976
mandated that, for tax years
beginning after 1976, an individual
could also set up an
account for a nonworking spouse.
The total deduction from gross
income in this instance was
limited to the smallest of (1)
$1,750, (2) 15 percent of the
working spouse's earned income, or
(3) twice the smaller amount
contributed to either spouse's
IRA, thus making it advantageous
to contribute the same amount to
each IR A.
Table 1E presents information
on the various types of.individual
retirement accounts classified by
size of adjusted gross income. A
graphic display of the percent of
individuals covered under each type
of individual retirement account
is shown in chart 1B. It should
be.noted that the statistics
in this report reflect only the
number of returns with a deduction
for an IRA contribution,
rather than the number of
accounts, for Tax Year 1977.
Additional information on all
accounts in existence in 1976,
whether or not contributions were
made to these accounts, are
available in the SuPPZementat
Repoxt, Stati4t.Zci OC Income—
1976, Individuat Retitement
A&Aangementz.
Disability Income Exclusion
For Tax Years 1975 and
earlier, employees were allowed
to exclude from salaries and wages
up to $5,200 (not to exceed $100
per week) for periods of absence
due to injury or sickness. The
Tax Reform Act of 1976 abolished
this "sick pay" exclusion'and,
instead, provided for a much more
restrictive "disability income"
exclusion, available only to
persons under age 65 who were
totally and permanently disabled.
This disability income exclusion
was further restricted by a phaseout
provision for taxpayers whose
adjusted gross income (before sub-
tracting this exclusion) exceeded
$15,000, and was eliminated entirely
for taxpayers whose incomes
exceeded $20,200 ($29,400 in the
case of married couples where both
spouses were eligible for the
exclusion).
This provision of the Tax
Reform Act of 1976 was later postponed
for one year by the Tax
Reduction and Simplification Act
of 1977. However, since the
latter was enacted after April 15,
1977, the filing deadline for most
1976 returns, taxpayers who wished
to compute their tax liability
using the more liberal provisions
of the former sick pay exclusion
had to file amended returns in
order to obtain a tax refund.
The data for Tax Year 1977,
therefore, represent the first
statistics tabulated for the
"disability income exclusion"
where all taxpayers used the same
method for computing the exclusion.
Statistics detailing the computation
of the disability income
exclusion are presented in table
lF.
Income Earned Abroad
The Tax Reform Act of 1976
contained a provision designed to
increase the taxes paid by persons
living and working abroad.
Previously, these taxpayers had
been able to exempt from taxation
the first $20,000 or $25,000
(depending on the amount of time
spent abroad) of "earned income."
(For the definition of "earned
income," Zee "Income Earned
Abroad" in section 6, Explanation
of Terms.) Under the 1976 Act,
this exemption amount was
decreased to $15,000 ($20,000 for
employees of charitable organizations)
and, in addition, the
method of computing the tax on the
remaining income was changed,
primarily by applying higher tax
rates to it. This provision was
later postponed until Tax Year
1977 by the Tax Reduction and
Simplification Act of 1977 and
further postponed, as well as
revised, by the Foreign Earned
Income Act of 1978. Even though
the rules introduced by the 1976
Act were actually no longer in
effect as a result of the later
legislation, no attempt was made
to obtain data from amended
returns because of processing
difficulties and timeliness.
Therefore, the data shown in this
report reflect only the rules in
effect when the returns were
originally filed.
(Further
details on the computation of tax
on these returns are shown in
section 3, Tax Computation and Tax
Rates, of this report.)
3

'41 Individual Returns/1977 Returns Filed and Sources of Income
Chart 1B-
Returns with payments to an individual
retirement account
eregint of individuals covered by type of plan.
Employee
and
Plans -
Spousal Arrangements
5%
30/1D
1% of all returns filed with payments to an Individual
Retirement Account did not indicate the type of plan,
under which the individuals were covered.
I
High-Income Returns, Taxable and
Nontaxable
The Tax Reform Act of 1976
mandated the annual publication of
"information on the amount of tax
paid by individual taxpayers with
high total incomes," as well as
"the number of such individuals...
who owe no Federal-income tax."
The law specified that, in addition
to adjusted gross income, three
additional income concepts were to
be used as classifiers: adjusted
gross income plus excluded tax
preferences; adjusted gross income
less investment interest; and
"expanded income," which was
arrived at by both adding tax
preferences to and subtracting
investment interest from adjusted
gross income.
Neither tax preferences nor
investment interest were available
In a pure form from the tax return.
In the case of excluded tax
preferences (amounts of income or
deductions afforded special tax
treatment) only two were available
for all taxpayers: the dividend
exclusion of up to $100 per
taxpayer receiving qualified
dividends and the capital gains
--e~~eee~ osa n ~
Self-employed Plans
Self-employed Plans
and
Spousal Arrangements
Self-employed Plans only
. 21%
exclusion, equal to one-half or
the excess of net long-term
capital gains over net shortterm
capital losses. If the sum
of the excluded capital gains plus
other tax preferences (which were
subject to the additional tax for
tax preferences, i.e., the "minimum
tax") exceeded $10,000 ($5,000 in
the case of married persons filing
separate returns), the taxpayer
was required to file a Form 4625
to compute the additional tax.
For such taxpayers, the "tax
preferences excluded from adjusted
gross income," as tabulated in
table 1.6, also included the
following items from Form 4625:
the excess of accelerated
depreciation on certain real
property and property subject to a
lease over depreciation computed
under the straight-line method;
the excess of rapid amortization
allowable on certain capital
expenditures (such as pollution
control facilities) over the
normal depreciation deduction
otherwise allowable; the excess of
percentage depletion over th6
"adjusted basis" of the property,..
unrealized gain on the exercise of
stock options; amounts set aside
as bad debt reserves by financial
institutions in excess of the
amounts needed on the basis of
actual past experience; and
intangible drilling costs to the
extent that any amount deducted as
a current expense exceeded the
amount that could have been
charged to capital and deducted
-over-the-appl1ca bl-d-numl~erof years.
One tax preference item from
Form 4625 that was not included
was the itemized deduction tax
preference. In contrast to the
other items on Form 4625, the
itemized deduction tax preference
was not excluded or deducted in
arriving at adjusted gross income,
but rather was a deduction from
adjusted gross income in arriving
at taxable income. Therefore, it
did not qualify as a "tax preference
excluded from adjusted
gross income" for purposes of this
report and was thus not applicable
to any of the three income
concepts.
The purpose of adding tax
preferences to adjusted gross
income was to obtain a measure of
total income which gave various
sources of income more nearly
equall--treatment, i.e., to include
the full amount of each type of
income, before any of the exclusions
or deductions allowed under
the Internal Revenue Code.
Similarly, the purpose of subtracting
investment interest was
to obtain a more nearly equal
treatment of various types of
expenses. In making out their tax
returns, taxpayers who borrowed
money for investment purposes
[ncluded the gross income from
,,hose investments in their
adjusted gross incomes and
deducted the interest on * the
borrowed money as part of their
itemized deductions. This was in
contrast to the tax treatment of
business and farm taxpayers, who
deducted their business expenses
from their business receipts and
included only the net amount in
their adjusted gross incomes. In
other words, the purpose of subtracting
investment interest from
adjusted gross income was to have
an income concept that included
the "net" amount of investment
income (income less allocable
expenses), just as it included the
"net" amount of business or farm
income.
Since most taxpayers were not
required to identify on their
returns all of the interest on
amounts borrowed strictly for
investment purposes, it was necessary
to approximate an amount of
"investment interest" for the
statistics. The method used was
to consider all interest deducted
otheA than . the amount rep'orted on

Individual Returns/1977 -* Returns Filed and Sources of Income
Table IC.-All Rotuma and Nontaxable Returns by Size of Adjusted Gross Income, 1969-1977
YJ fturea we eatirraftee based on sarroes]
Sim of aeWsted Wase incon
Ali
returns
Nontaxable returns Nontaxable returns Nontaxable reltime
Percent
AD
t ns
~;~ AD
Number of SO
re ur
Number
Of an
reum
Number
Peroard
of d
I
MUM
I
returnS
(Own
1969 1970 1971
Total .................................................................................... 75834 112,11112~M 1U 740"1 %962,460 2D.1 74^07 um,035 IL?
under $5,000 .................................................................................. 31.405.265 11,708,022 37.3 28,308,034 14,493,251 512 27.155,048 14,002.305 51.6
MOOD under $1O.OD0 ......................................................................... 2Z657,528 364,981 1.6 22,303,067 429,624 1.9 21,443,479 602,100 2.8
$10,000 under $15,000 ........................................................................ 13,649,392 23,993 0.2 14,106,019 25.118 0.2 14,6D4,270 37,416 02
$15,0DO under $2DOOD ........................................................................ 4,721,696 7,720 0.2 5~5X453 6,553 0.1 13~453.851 7,834 OA
$2D.000 under $25.00D ........................................................................ 1,5X601 Z993 0.2 1,909,167 Z816 0.2 2,377,638 4,476 0.2
MOOD Undillf $30,000 ........................................................................ 645,888 857 0.1 768,235 1,759 0.2 968,565 1.642 0.2
$3D,OOC1 under $50,000 ........................................................................
$50.00D under $100.000 ....................................................................
$110D.000 under $200,000 ...................................................................
807,497
328,410
63,605
2.2041
1,479
445
0.3
0.5
0.7
918.188
350,978
62,467
Z002
937
289
o.2 0
.3
0.5
i,077,e44
404.692
72,856
2,884
1,070
218
0.3
0.3
0. 3
$=000 under $=1OOO ....................... ......... .....................
$600,000 under $1,000.000 ...................... ..................... .....................
$1.000,000 or more ...........................................................................
1
14,786
Z509
1A211
188
60
52
1
1.3
2.4
4.3
1
12,830
1,751
642
90
18
3
0.7
1.0
0.5
1
15,OB9
2,192
883
67
12
3
0.4
0.6
03
1972 1973 1974
TOW .................................................................................... 77,M730 16,M713 21.6 8""7 16,4215,425 20A 83,M190 1"n423 lu
Under $5.000 .................................................................................. 26,963.312 15,738,952 58.4 27,037,618 15,491,830 57.3 25,766,673 15,046,441 662
$5,000 under $10,000 ......................................................................... 21,175,854 &90.252 4.0 20,581,732 797,608 3.9 20,586,617 797,997 32
$10,000 under $15.ODD ........................................................................ 15,364,155 79,852 0.5 15.804,109 77,445 0.5 15,67OJOA 104,725 0.7
$15,ODO under SM,000 ........................................................................ 7.M,413 18,266 0.2 9,091,001 33,242 0.4 10,071,087 25,517 0.3
820.000 under $25,000 ........................................................................ 3,093.728 6,388 0.2 3,943,993 9,769 0.3 4,944,795 12.2W 0.3
V5,000 under $30,000 ........................................................................ 1,21A377 4.734 0.4 1,741,991 5,131 0.3 2,259.928 5,881 0.3
MODO under $50,00D ........................................................................
11501,000 under $100,000 ....................................................................
$100,000 under 112M.000 ...................................................................
$200,000 undler MOIDOOD ......................................................................
1,337,578
483677
91:707
19=1
3,254
1.5
317 88
0.2
0.3
0 4
0.5 ,
1,759,637
596,663
110,176
21,929
7,312
2,466
458
142
0.4
OA
0.4
0.7
Z17%868
135,3D4
26,842
81939
2,667
722
196
0.4
0.4
0.5
90 1 " 1
1
0.7
$5W,OOD under $1,000,000 .................................................................... Z666 14 0.5 Z635 15 0.6 3,194 36 1.1
$11,MOOD or more ........................................................................... 1,030 6 0.6 903 7 0.8 1,096 12 ti
1975 1976 1977
TOW ...................................................................................... 82,229,332 20,711"95 2L2 K67OX9 20,249= 24.0 0^640 22,253.= ILI
Under MOOD .................................................................................. 24,901,853 17,734,874 71.2 23,M751 17,127,463 71.6 23,MZ635 18.31Z713 W
MOOD under $10,ODO ......................................................................... 19,M914 Z614.563 13.1 19,892,956 2,757,467 13.9 19,342,819 3,467,855 17.9
$10,000 under $15,000 ........................................................................ 14,963,680 239,408 1.6 14,551,350 222.449 1.5 14,299,2D6 284,787 Zo
$15,000 under SM.000 ........................................................................ 10,353,534 93.2ffi 0.9 11,197,191 70,151 0.6 11,404,973 95.054 Ole
82D,000 under $25,000 ........................................................................ 5,598,117 27,110 0.5 6.649,622 31,095 0.5 7,766.714 40,132 0.5
$25,000 under $3D,000 ........................................................................ Z744,M 10,321 0.4 3,629,532 17,107 0.5 4,3U,040 20,747 0.5
$3D,ODD under $50,ODO ..................................................................... Z747.618 13,145 0.5 3,639,050 19,550 0.5 4: 784,916 25,032 0.5
$50,000 under $100,000 ....................................................................... *** 781,406 4,984 0.6 W.034 1 3,14 80 92
1 0.3
11loom under =1000 ...................................................................... 152,349 734 0.5 185,142
0.3 1 140'784 225.150 6588 524 0.6 02
$200,000 wder SMODO ...................................................................... 29,193 2D4 0.7 36,357
60 02 46,386 55 0.1
$500,000 under $1.000,000 ................................ I ................................... 3~M 44 1.3 4,047
..8 1
0.2 5,232
.5
0.
$1JOOO,OO0 or more ........................................................................... 1,124 12 1.1 1,357 1,785
. !
**'-- -01 (a) site classes for which date were deleted becoAs of the small number of Il m%monwhid their were baW &W (b) oombkW frequencies or amounts that Include the dats than doletec! from another size dess.
NOTE. Datell may not add to total becauee of rwxd%
the separate "home mortgage interest"
line as being potential
investment interest. However, the
amount tabulated for purposes of
table.1.6 as investment interest
expense was limited so as not to
exceed the amount of investment
income (interest received, dividends,
and capital gains) included
in the taxpayer's total income, as
described below.
Since four different income
concepts were used for table 1.6,
and since these concepts contain
differing amounts of investment
income, the investment interest
expense was limited depending on
the income concept being tabulated.
Thus, for those income concepts
which did not include tax preferences
(adjusted gross income and
adjusted gross income less invest-
ment interest), dividends a6te,%
exclusion and one-half of the
excess of net long-term capital
gains over short-term capital
losses were used as the basis for
computing investment interest
expenses. However, for those
income concepts which included tax
preferences (adjusted gross income
plus excluded tax preferences and
expanded income), dividends be6ote
exclusion and the full amount of
net long-term capital gains were
used. A step-by-step description
of this computation is shown under
"Investment Interest" in section
6, Explanation of Terms.
Table 1D shows the shifts in
income class that resulted from
adding tax preferences to adjusted
gross income, from subtracting
investment interest, and from
making both adjustments. Depending
on which income concept Is used,
the number of "high-income nontaxables"
(returns with total income
of $200,000 or more and no "total
income tax") varied from 52 (based
on adjusted gross income minus
investment interest) to 95 (based
an adjusted gross income plus
excluded tax preferences).
In addition to the data
presented in this report, a
detailed analysis, based on all
1977 tax returns in the Stati,6tie,&
o6 Income sample, showing the
reasons for nontaxability and
"near" nontaxability will be
available later this year from
the Office of Tax Analysis, U.S.
Department of the Treasury,
Washington, DC 20220.
5

Individual Returns/1977 w Returns Filed and Sources of Income
Table ID.-Number of Nontaxable Returns, Classified by Size of Income Under Alternative -Concepts
[AD figures am estimates based on samples)
SUID Of Income under
afterneWe concepts
TOW nuratiff Of "Itums ..........................................
Size of Expanded Income
Under $50,000 ......................................................
$50,000 under $100,000 ........................... I ................
$100,000 tmder $2W.000 ...........................................
$200,ODO or more ..................................................
Size of Adjusted Gross Income
Plus Excluded Tax Preferences
Under $50,000 ......................................................
$50,000 under $100,000 ............................................
$100,ooo under SM),000 ...........................................
SM.000 or more ..................................................
Size of Adjusted Gross Income
Less investment Interest
Under $50,000 ......................................................
$5D.000 under $100,000 ............................................
$100,000 under $200,00D ...........................................
$2DO,000 or mom ..................................................
Total
(1)
22XSM
22,245,984
7.001
452
as
2Z245,430
7,401
$76 .
95
22,240,784
61239
427
52
Under
$50,000
(2)
224140M
22,245.637
655
23
Is
22.245,43D
857
28
15
22,246,330
$60,000
under
$100,000
(3)
Size of 4 gross Income
"Idendfts (a) size cWsses W which data were deleted because of the amd number of sample reftsms on wadd Oft were band and (b) oombbled frequenclas or Amounts that Include the data thus deleted from another ate dass.
NOTE: Detag may not add to total because of rounding.
Table 1E.-Returns With Payments to an Individual Retirement Account Number of Rotuma and Number of Covered Individuals,
by Type of Plan and Size of Adjusted Gross Income
[AH Nurse are esdutes bow on samples-money amounts am In thousands of dollars]
Number
Size of adpAed gross incom of
GM
293
18
6,544
25
19
420
6,168
$100,000
under
SM),OOD
(4)
. 524
32
70
422
"524
32
70
422
$MODD
or More
Nwbw
Swart. and
Total not profft less loss
Of
Amount I
from business aaMtk o,
covered d eductael I - Nim+" I Ll..- I .
lndMdLWo of
Amount
Amount
fetums
wwm
(2) (3) (4) (5) (6) (7)
All Returns With Payments to An
Individual Retirement Account
Total ......................................................... 240DIM 2,457,M 1=103 311,1517,441 000M 13,14MV
Under $6,000 ........................................................
$5,000 under $10,DOO ...............................................
$10,000 under $15,000 ..............................................
$16,000 under $20,ODO ..............................................
S20,DOO or mom ....................................................
Returns with employee plans only
4OA24
180,846
290,023
308,711
1,182,629
42,470
187.691
306,879
351,&W
1,411,407
31,670
145,366
298,557
338,624
1,643,491
22.760
136,522
248,673
2712M
1,042,882
139,657
1,078,051
Z805,547
4,164,051
30,330,138
14,564
91,004
110,054
129,245
565,786
-37,519
373,790
729,M)
1,079,142
10,908.030
Total .......................................................... I'MAS IM9,M 102,01 1^055 34,075,M 363
Under $5,DDO ........................................................
$5,000 under $10,000 ...............................................
$10,DDO under $15,DDO ..............................................
$15,000 under $20,000 ..............................................
$20.000 or more ....................................................
Returns with employee plane and
spousal arrangements
20"
114,677
213,780
214,751
835,OD4
21,931
114,677
223,003
231,308
958,289
13,431
89,898
219,375
229,338
1,140,252
2D,2B3
113,11554
213,647
21ZSW
833,371
128,047
958,530
Z629,895
3,612,466
26,746,951
4,342
27,569
35,391
43,986
242294
-59.423
-49,736
.16,546
.88,019
1,274,683
Toted ..........................................................
Under $5,000 ........................................................
$5,DDO Under $10,000 ...............................................
$10,ODO under $15,000 ..............................................
$15,000 under $20,ooo ..............................................
$20,000 or more ....................................................
Returns with sef-employed Pixels only
6%177
*M
:2 287
3:729
IZ755
41,261
1211,01
M
-4,574
'7AM
25,510
SZ522
KM
*264
-4,002
*4.044
19,715
67,722
591M
'145
-2,37
*3.331
IZ755
41,085
1,78W
-6,256
'37,800
'25,517
208,860
1,510,5D5
2ma
'120
-
-3,470
-4,616
17.2n
844"
*-11,213
'-17AW
-3,491
111.013
Total .......................................................... 470,794 4L%250 541,M 219,"0 1,971,247 452,M IM I
Under $5,000 ........................................................
$5,ODO under $10,000 ...............................................
$10,000 under $15,OOD ..............................................
$15,000 urder $20,000 .......................................... . ....
$20.000 or more ....................................................
Returns with self-employed plang
Old spousal arrangements
2D,183
61.618
69,435
70,410
249,148
20,M)
63.912
70,2W
73,442
257,407
17,M
49,333
69,865
74.395
2,320
18,495
30,141
37,756
131,058
4,948
69,081
137,875
245,660
1,513,683
10,0M
01,171
M114
70,151
24Z766
A129
414,401.
701=
898,864
7,841,448
Total .......................................................... Ow so= SA65 SUN 3MO 1,1%73i
Under $5,000 ........................................................
$5,000 under $10,000 ................................. 7 .............
$10,000 under $15,000 ........................ 0 ......................
$15,000 under $20,000 ..............................................
SMODO or more ....................................................
Retums with both emp" pleft
and seff4mpioyed plane
1,525
3,377
24,613
-2~4
3,050
6,754
49,M
..1,150
Z444
SAI
.41,737
'M7
5,370
996
-
'670
32,238
..I.l
1,525
3,377
24,W
20,184
58,544
1 M.897
TOW ..........................................................
Undef $6,ODO ........................................................
$5,000 under $10,000 ...............................................
$10,000 under $15,000 ..............................................
$15,MD under $20,000 ............... .............................
$20,000 or more ..................................................
Type of Plan not q-ffw
32.052
.5
399
-1,431
4M
25,619
K104
*10
'798
9.196
St.=
.60,018
.8
ON
Z644
8,2116
57,248
t
"7
*5
399
.1,431
!4~51)11
?51614
-
41W
.
.299
5,067
-8,436
38,M
363.555
3105
.5
399
-1,431
4~M
25,122
-1,031
M
41.456
.80,713
I
TOW .......................................................... 20M on 10,063 231,190 7,157
UrKlOr $5,DDO ........................................................
$5,000 under $10,000 ...............................................
$10,000 under $15,000 ..............................................
$15,000 under $2D,000 ..............................................
SM'000 or more ...............................................
-7
'
*720
.123 1
*14
*1 456
"246
.5,60
IZ725
-7
:133 1
05
.1019 1
0:495
-7
:729
Z. 123 1
0,384
*107
'0,577
;7Z 3
47
; 832M
-7
:720
123
Z517
3,781
-1,608
-Mg
-169
j -11At
54,275
.:Eadrnare should be W ft caufi. because of the amaR number .1 sarnple returns on w dd It Is'
Idenbras (a) &be classes; for which data were deleted because Or the small number of sample MUM on which they were based and (b) combbW Requendes or affvjnM that Include the date fto deleted from another Shia dam
'Includes business aW prWassiM farm, pewtnerew and small Bushess Corponetlon not MOM less. loss.
NOTE: DOW may not add to toted because of rourwfir4
(6)
so
"3
52
60
-3
52

g1l; sping
Ittig UVW§
NUN UNI RIB IRL
&A r8nFSP11 PIS- - -
110 MA
HE Nut -11,18 111-151 ""WhIvro
ac= C98b.9a r=nn: 'nzg=
"'N' AY
N 8 VNIN Min
i gig 2; Hun Sivc g
ENE. §E~EZ dftfc: =-.ccr,
wisigmf
U 1
RRI till',
g amin Pp is
Bib A jolig, , I
03 0
9C C Z: C L' r. r. C: I
%=
10H. iffil fift% Ruto gmg.u
ff
Inst; gegtm aggrig gang
URI 11M Mu 111§§11 'till
MP j
!m-nt-m -8armv -
:3

s ill uNjmJ_. 2n!g ;s~;;jRm3 121CISIP - 3.
Hin PHI §j_.' K
HIH 11111.1
jUis
ime
m
:_'
. HAN
I 9v I I
A ION AN. Arms ann -
A His wO AM" 01 JIjif rs
XV V& I I
2
3
1 ME 111111 lull onnu gee
T T"19 j2OPA WAX12 il
11111 4 Ull! mill 1111 aft
31 jai
BRIN jUN
Hig HVIV mili a ivi 08-19, i
WE UW 0019
I= 3 jai
-1 ANN '0401 Wh limit kv d
mom-a
t-. -L' 9 Z. b, 2 C tott I
w
ZE. ir.. b-, L-, g 1-. 6- it 1: ~: t: 1-. Z. I
9 UZI 'Hiii nusi wom e=gsii
k
;
I
fell
I
I
a IT!M- vee~e eeeee eeeee meeeej
511111111 Inn 11111111111
snin nim"a nnntm tmwax &.Tnn!:
I Up.0.1 INN Ran ME! HEM
E IEEE Emu mm HEW ~Zftzz
I all RHO mrsin M
un W-H inn H!is
E WE muze mm ~id~zc m=C1
11H IHM um s-am 1111d
jaccep HIM 4
I ig~~; p-
Imm. Am 011mg
a He! vsm ma~ E~'.'TH znce a_-
whit XmIN -12117t -s "111A ismj
-_-za
1 bts lam mtre, ftbz= at I
L
P;
a
3
a
I
z ISLI
B 11
21
s
311-
I SLI
ja I
1 4
ZCL
52CL _2
M
I
'C cr c
a CAI
4D
'Q
U
C .0 c
c cc
CL
10
on CL
CL
Cc

cc
0
I
E
E 0
ou C
El
.52 a
cc
U)
LL. V 0
a ~ M
c'. = E
'o x
c c
E
0
u
c
Em
zo,
Eea
Q-q C; t: cn E c3t~ql.~~ cl cq c'! ccl c~
SG ge gluxag. mag Rugr, quv a
igi i1", 6- ;:, as Up ~ X~~:: jzg=;~ ik
ig RN M I EN Rill i
CIS
"RH
'NU ION! "MIN
: 25M -Axgm gm nqu kg
;icffil HIR v9M 9'.N!
Rflz-ia2 C91i soi ii sc:~ 91
wim Jun v pip,mg
K
C-i5ift Hill §019 ----- . .~ ItSM9 ~-i ----
2~
-
-~ Q!2 ~!:3 ~!! cl C4
__Ap; i Scq RalglU gas";
...
...
M- REEH FlUff
i b ts ts b ts t$15 13 13
ts t,;5tstst,
r.
§ §§§5§ §1§§§
-9 Marl S';;,;~Xg ati ;f a ;;z; Q
RM
-1-14 1 R,
kill
I
Ea
LL-1
Ll? LS Is ~z - - - - - - - - ----- ---- -
.7 -;: -, -1 ~ g,-t
-4 1% IQ IQ .j.jgc-," w
a tR!:; te R ---- v
cl;;-tq-
----
-,
---
-4 ~11
1~ 1~
----
as as a S ;ggg g
11 '4115- 41~21§ g gi 0
--@"j LQ -1 -4 - - -
I zt $3 a as D; a a
19H Its
RN, -g-g-gg g
"Ra Hu I
m; la. 9 Mg !9G h3r.2 *mg- 9
MRS iMME --- ----- HID ----- lkt~-Hl -199VU - -91
Siligs! if,
i RNA OUR I
9~vwll 9stigg gags a
Rigg Lqc!! link gm gaig
5
i
-11 9M Ul iEl"
j
C,
. ..... ...
is tl;5 ts is is ism b is is I
at, im
1
.1

10
E
M
ull
E*6j
P-
F
Individual Retums/1977 9 Retums Filed and Sources of Incorrve
;~-q-vt 2UMS? RVZS~-:7- FORM9 MVE: I P-Mb
ing
ASO MR9169 90999 nixas i RIUK HIRK ;Z ,~119 :;i
of -- -a, --
73. -.twk
M=RMnI M-~tGM HFI~H I WOE gffez~M RMS: IRRU
1 -- ------ --- ... - -t
DI g nUg MIMO M? IRM
-9-91AF UUM MM I . - a
gtl-e-rl Cewrig
RUM-! MW RAM: MU
31 0 mX And 9,19OR gagf?:r aa ZZIR
U-MIME - AUFM.. MEM ....4
i " ~Rzs% HUM Wxampp
22,9"Iviff 9*F:991:9 :sz "--i!~Faa
IMI-ek EMU ~MWIMI* I Se RFI
RUSE iunll RUN
6~3 9p-:9 mW9913f :f -~9!f L6
!!
3f
HER%
gigMW 'am
5MIH Mail-rz RAMER - ARZ&H- "Mr §n4v F
MM
-6--
~*W: IR-8 - --- A ;M3 Eilqil
=6.6.f
iPIHO give -.F-: Z Idd
7
a
W593 ;;R§99§ H U a RPM EF-Un imsew ~Aln;2
-~
-c--
!I -_7!~ 8
~ z 2,";,44 aiiias 6;-qv;aIN?q zk~M~7, :mvg
x RRHERF 11-MI-H HUIR UAW RUMS; ImEnz ilkuk
GA ~k-zgkx
-crc-imm
nu -t 5 ncli s;
r cr -;:~ - - 'I IRMS
M9 MOW r. a F gig
~--W ga--- c4a
99499
ga.;az r
-11AMI MISUR 89U-3F x ~-?IMFR .;:FERNS FM90:
- -
9 -.6
; g,:,: .6
F-WeR v --.
gao k Uplig ------ -4"W
Hkkii
15a
snan mm ngpz a unny m-m new: nequ
c-,Fi"~vrigsfff oHk
RR"t ----P4.,- SIM
I GORH MUZZ !WUP
L,Ff-z
v'r HIM 31FIRR PUG":
R R HKR? -kA UR ZERO HP
c';-;---- --
aleaa i
Un
MUM
9RE44

-3
fl
Indhddual Retums/1977 e Returns Filed and Sources of Income
a v lot
R
5raxpig 3kngum q gpii;gg- qv'AA4~k xk?Q4g- - qS R2
ga
iWi t-::1-9F.,
Glue
§ 9 Rig WIN
cj
n
I W RUM 49-Ra-
KNO 4-6
a4
1-1019 1-['.txqxR MU11-
Et
!gEj
q
---
aF-l'6; s -; GFE"
si
RE EMU qq
-a.6
Alwr
lm
R Rum ANF~~ig 9FRU IR a: 1AH-3 - --- OKUR.F_ - . 'R.GS-RUS: a aH.Rg
a
~:a
I V-
~I§ F92§99 9R: ! --
OfV
VIIEM~A
92-8-CEN 91RUV 3 RIX 9~;-;;H§ REVU: R§6-v-
_UAR
F! " EH-19
199!wr
lfi~
'nk
S'r1w_ZpFR HFUI I Ir-q-
-8
k9 cs
§W2 FHAUR FORn! i Rpm EM-9 H E ~_3M: lUg-V
1111w agog G ga 212 - ;: U R.-t-1 19 ~: URGER 5 -2!
K' s
-;.6
A S! ,: '%
A 9- i24S§ 5A03'.- V- A
i-da S $jt:: ga
9 U11 kq§v~~ HERH UAURR
Gz Pi
NN §HHE 1 1
99
'M
P-A _~ecj
stag
HIM UW~ UM4 Wig w RVRRS a EUX R
'%
- -q-f- -
A HURR Rgiff A§
lilt ill i
it HIM i it tilt
it It I kill,
ult 91 M a § MR
§ Rk juak IM
l al'sikk INIgn;
';
;" e'6196 Wal! M r.;; a
I..
1 . :z
11
J

12
C
0
0
V
.E 2
x
E
9
o!
lo
15
)J
Z-
Individual Returns/11977 e Returns Filed and Sources of Income
"gid agg-wl:~ giNg
F -9218HEA RERSH -sc-Im NIP-, . !- F 1991-9 & MM-v ai ;Z~g-m -
'52M Mm
3U.
-- ----- - 51 -- ----- w
;;1F!pH3 Upn: q agnm
c%; a; c4
9 -
W39MR-a 9 24 Ex1S: r-t -- : Hac'Eu REM mm!:
~q
5 ci
-9
c%
RE A
c;
9 Mg9 ka!9&VG 2--=51 r; 2D!R.;
VA
9 Zip 2" 11 Q-1 Fam 3m: E
-:
RA
51 1
1,
"99;2~ HAMM I Y E
8g V82
EVE RUM c'! - WEI?:
RIP!
M-1 - A m
--- ------- --m
4 st MEE-; ~M2'-A 1- n Z:w Si
cr
. . . . . . . .. . .....
OW Rum MCI
mnt pi 5 HIM 10 11.
1
§H 1!
q
. i
UM
MR
f cq Iq -t cil-t
-c mc4
gla- M1111-4
-1 -Him
11
R fla N~; iiiiii
glagg
1
P4
~5

ILI -
Individual Returns/1977 * Returns Flied and Sources of Income
ig ze P-4k 9-t~R SIM lk-~L
PRIM Rne-k N urm--q- imkxx~ Lq
I
'aH M S
EM OM-
IM UH RIM WOR-Mg HUM HIM-4 I
.6 gg.;
U G
1 2§09 1 R
-9.01
"M - - 91
.Fagg
8 a 9 'E' tE a- 2-1 3 1 F2 R
x xx~~D;
Ld a
w;v- of
aa
615f-VE Mm st L; -gtq
- ws
99
I gg§~Ig§
- .,~ - R - FZ
Ot vt R
A -HRE ERIa
;6
3f
ct P 4-t"~_r c%vl
MES
_M;§ -r g ~: ~ j
149c,5:0 -M
91Z M6 R
O:w -;;-
Fxzfzs. -SS3- M kclq M
-Alivss
53 2R F
ggg
Run ct-
AFEW 4 A P't9~F §F~E 3 ~Z EFIg R
9 F R5 1 En
r, " ~; ggzg
M - A P;
We V
r -angf gfli91:1 ' ;--i cq
F ~uag gulgi 1 Him Emu 5 3-2--
M A;~
Eiji a f
F 141M SEEM HERpiv 2a -~:RFR!
HHH
:HM, :f1!Rggj §8
g9liq IHN! :f!E4q gg g91121
11ji"i i Mill IOU §Jjjjl HIM IOU g" [kill
a
jHUR JJRRH
=d1giR V31599 - ; Mug! H; I--51aI ;; 5 .aZ;; Ld9
13

14
cc U
E r- E
V
IRE
z
x
v 1-49
Indhddual Returns/1977 Returns Filed and Sou of Income
2* 1-UH . IPM
ap ;ic=ar~a .elz ~x :I R
- Z!
Iq
ag
&M i~:; wqv
4'
. c6.; -.; .6..F-e
r
-
a
FUH-
RM 3'sain
cq - - - - - - - -
I
- A-
a
RM
cW
q..e
I p
C= -L
-glis V 1 2-3 FaP?
M Sktvs-
UE 'T -3 M-2 Ev
sc%r .6,6~j- 6,6 F,~
a EL I '9F S ~,Mng
a
zgs
cz
c4
gg
A 4
ScIt
MKi :ft~-Siig
ifild l 5911
Bills--
1
"L
crsqm
MAG
R

E
0
061 C
individual Retums/1977 e Returns Filed and Sources of Income
21;:P!R MclUkI N9a494 a El- S 9 z PE 9 ~C4 141H _RMUZ 4-999N
-4 -wn -Vnu~
agg
It - cj~l~j 55 - 162 -_
'c4c4ci mcqcj za,
I.I.MUS fgg~_H HOSP-. 9 =29-IM
r a~~ _-L - - W-:,tV RG_Vp_!E I MIR
Iq ima!,Pq ; z
all,
HRRER :_R R .3 R -
.;,a
-le
I RNR?V- GM ga;Zap I f__M_ - 0
Si
puz? - 8
OHM'- 51ii"M IRG114U H"Va 4UM M, RRInq
U-9 R 1 913MV
-9 FACiiR ONE- s2MIF
9- ------ - -- 99W HE -
R;
M Vrzes" : g Osp.
cd.i
"
HEM 0§R;:V M151
~:g g-rjf
3
F _URI 4AUM MOE F? Egg's A-L
Rg ggg g
6
a an
91,6919 I'MM
;mp~ Ngmg
: z H
g§0=14 ~§F.Rk
,ia
- - - tn~t ~t .~i
i
-M
WUR
d
RM -
e
~L ll In IMULIn 1~ Paq
ks- FIgR
CL
q A i-23991
[999F P 21 - E
c-F
t R 21F ,
RUM --momorg
199sheq 10 Al 01 T
11099 3
RM02
RHIS1
MV3,9E I Fig an R 4~: c; UR
.... ......
. . ... ... ....
it ififl; it M! im IOU;
ce
k.
I
is

16
'E
34
1% A
11%
sf
-:,z
~g
I -
~R kc.1
lndMdual Retums/1977 * Retums Filed and Sou
ms V
.2
We
t~,
cq
st
st --- vid gist
tzg
cc~ ce
RESE-2 M-mg ms -RZ
4- - jgFj,6,.7 ~; M.
29= 1_Q
Ut-i 2t2i
E 5 ERR uIli a ak sm~!
ga ~!~ MUZ
ERR
A 91.1 1 us
of Inconwe
$38"
sjv zas
RE H& 9
cILcIt VT IN Vc2 to X g"I
gggg
Ha 2-1-0 Em *1 K RE 99 M
w A 12
99 ai a
9
c!
G;R mg
Sig
- ~! v .9 9
X
V_
.6a -9
U'u
99
-i
Im EH8
fu
;.6 ca
c1L
R~
1111212-1 zz1
cc m
-!$a -~gjq
c!
-SAVE 4H v
c
6.i
M;! UtM 'UPF H 91 12
Z:E5 is 1 g;
si s!_-Z;9;g9 9 01,
ga

Individual Retums/1977 * Returns Filed and Sources of Income
gg-p go? n-r
g
I"Ra QUM F~Upk MSHR M§13Z MRIM
H9999 00a-~ gag
C6 a-Mi5i
HP
kk. t9 Ung MM I RIARPRX MRIE MRS: SF-RF
'!~ ~- ;.z
Mu g
RkA5 132 MORR UIRRA Inv: F EVERS;
# A-W
. 2=01 0919
t9 9~
qW 't
F M `k~§
H-1
-a Mr3-1-Z c6
-1i
r4 Z,6 aQX-r-.U~ F
--Zk~q Ul"ItA
ZZ -
~~mffl ROM M999 414GM.~ M I MR RUM l
-- a -~R . . 5
ROHE HFOU HUR", AMR& §311-PNE a 5
5-5
ung-v qmp~ qw- uns Rk
iea
faa aaa -aaa aaaa-
USIRER . .1 EMU .... a - RPM: vk%W HiMa XURN: F HM
-349,ffi :t "Okk -
-RPUR `-NEM
Q!
4
. 6-: . 6ef - .e- a-
a
11M
EM 91"M UWE. U 5 11DIPP FEMRF
10,02 991M UMIG c2,466-99 ISHM? ONO IGM -T
awV34 aegef~~f ;ffgcic!~; TIZU'Sisn ;~we M-6 UsN.- ~Fjl~n
-~4M§ MUS VAMP F M§91 RUIRR UM: ~g!gp-
FYag Pit- 6 6HI N64P
1=6-:2e
gagA
U 4 CZ q
1~
. ...... . . ...... Ad
A HUN §
jillif 1111o WIN, I iiiiii I- kill
1110111-1; i-M-6151 ing WIN kZ-1,111 HUI-- 15124-
zz
lIe
-It
17

Is
RIP
Individual Returns/11 977 * Returns Filed, and Sou of Income
jkqrjg~
:tSIP-MRX xk~w Aqpp
x"M - A pt:ff
ukku §- Em rulen a E§1516 -Wt' $0 t~-'Rqk Non
RM 91le ERR RUN: i MH
-Vf Infi", q
a IMMU OEM q-~g!
ME
§-Vr~Z4P'-A~
ME
Was Rao a, c."(W ~' , -:- q.
- ~ n -:.j
Uffla ORM R Wee" g URV 11 WU
ikleav %stqxRk RES 1B
-- Mv.
-Irtn~ axa§ I z m A 95 RE z~&'N U;q ~k-kkzxX: z
XWM! 99HIM 191939 MR-q I Maw: 19-EM
- :~ AR-1
1§6
glig glgg- 2 P, - a6 --
sig-~ tz NMI g5l
-MU RUR"
~Z..f
-HR'N ANNE gi
§KM IVF~FLne Wn
Un F."M :MQU MUFF
A
Is
lagg-H R-5
"All
092
a RUHR a-RUW"-' 02 :::%F 4 HMUZ MM RIM F RE E§0
§ HN §§
IND Mdv'
lit
W-
R1110
dgj I
! liksa &lsF
- 12digg
HIM

IndIv1duaI Rotuma/1977 Rotuma Filed and Sources of In me
pRPR& mun RO XVZM~ MUV WIM
mvp w§00 SIMS f 9 1 H ~;10§09 alup a Opp
gga-m ;mn.: q sm-p
sa
R'58-f HER i PH-1,
I HIT" AH999 HIM V9919F IMUR RUP: 9 MK:
daur'Mi "~ ';'PRa 22-1
gg Cq
9 RUM HFUS Mnq S1115k A91 i19 a F 9012 IT 14 R
F q
55AM OWN Riviv g-gslod -ggw RHR~-: I
OHM URM HMA 4 MUM M19M RARM z BASE
ci up-i-
UNIP MEW Man - Rgum Inns mw Ings
Q
I I 61-ing RUN 1 NEU 5HIN m0e' W&A
I JOE-an Mfik MMI 0 MM 98119 HAER: ARM
':;fr--5AA 9N&MI k VD, 04
~1!9111 MUE HIM RURFAR HFUR: I UARE
took MG61' Magg I --499H OUR a s§0 9,:;5
4
IRW §101ka knu
1WRI HP93 ~E§M wn-m FkEbiv I gmi
RUM MAU num k &ARUnq Rnlkk Rnl!: OW
Raigh RRUIR q 4~-190 0;24W 054: AWN
:- 14 - -- -
96HER OFS~Fzls MAU HHEH HIM URN:
. . .-Ln I
AMU wkk? "REW Mpkr@ ..3 HIM UREWe aTw
MZ-;:~ KHOO 9-0 lid MONA Um;:
cli
4 MR
.. ...... ....
MH
A H
2-11-1-4111 ORN
xsglr.~ -" P;-;gdg ftshi
pitil HIM Itfit
plill HIM 1,flit affib
i§§§ H§ 'a
WU19 §§§§k RUM jiga. UR
3; Ofd "IM z
ga-
19

20
F5
E
ip ! g
Individual Retukns/11677'0~ Returns Filed and Sources of Income
. ,
MON Mm a st n % FF t:mm nv!%: I inn
M99, WAIME F M!4V14-9 §99-390 110§9 a HUN
F§§;V=F 99HE-0 NFERnT3 §9.12w rgnkp Rgw-m: F
zg- Ug gU NO W-F qw
R: i0ka 44 0Siki RAM V A UMR RAMS;
-
ARO : i
ci a;* Si i ~49
Mk UH171 MAP
alnggg
'"HA EMU URIVE CREVU RIM'S St-Hig: HERZ
'x K"N
g- 9991-19 49-7p! 9MU 999
3 REX-kkv 10;-;F39 HIM
k1fagle ~.S-Rx: I §gg;26;
. .
999;fg-~ -g!gn6s TEM-79 " -FJW,~Fv "
e -- V . e - ~ ;9gf9,6 __a
P RRERMR REHM MRSP Awn Rung ~ I akk: a FCJL Is% ~ g A
9xV968 P!gmiaw tij9pg t;~-99,19 8-~Pfqd ggy a VRI!P-
R PER -WA-ZIA N501A 44" '"1" RIV";
104M.1 §Mrl HUI
Keg
N-M, gig
U"M HUH P010 F EMR AMU 19V99' 99---
M ... ... zVqst
R Igo'! 4§1 'Fif I gt-~M HHER: I 9:"Mi
16 .6
1 14 q?
mm. onn unn --NEH ~IUH FREW 6 9 1
MO ai
U@099 RHO: 91Mcli
- ------ --
.9 Z1224665 a
mot 111111 It
"
§1
i
fit 1111H Ma 11,1111,
.
9and § ggj~
55 5391 Z~ 1 213 V- ZI19a 99
c1r

fill Z
S
Individual Retums/1977 * Rotuma Filed and Sources of Incorne
UF I-SUM
Cei AF~ R8 G- a3px&A -a;zp;z --la ~Zf 4 ARM:
-LN 2 Wag
Gaigri
§X-G q~ -kegrzg a --i Ilk R"kR~§
VUt
R9612,94
~agg agw
FANM~ RMA
UUM
IF ~z .
R;:1e--Ax HIM ~Mz a n
99
2
mu:
vssm~f URPH
Mmf Hw5fr, a
Rig
ung luuq z7~I
~";gMf MCA WE-
ima Mt
0-
UMI HIM f
t ou
-- ---- - TI
U
- .
~z a
RXF 425M HUGE"; F F 99~-:Ii Mkkk RWRIZ:
M04 134;z,~;F.O
IF - .- FI
I Fg~ unkR ZsHmw
51 -
a4~RAE ;&f3-jR;e wamau
--;~ Rq -
3f
nin(9 1A.-Ma MW
-3-. : c6
-"t c4
HUM HEM
Ef5i 9 E 9 R A1
HHH
, --
§-H.U MHZ
RRM
qkug
-- : 4
1 lign RkRR-j&i P
.
vsg-ag-
wguy 90-
-..-
g guna RPM HER:
Ili
:4 019 OW
- - - - - - - --
:;
HU58- 1996 9 p Rai 9 RRF~12:
Iffig
MCI
14 3;1§ 50afl-
HHH
991 9 -9
199
M
19112 1
4
5
glapa
61 c1r
;;
119c"
1% -cL
ung
HUR
*;Ogn
HRU9
1 HIRE: - - I- §RRR
M :3 IS t~,5 ft
21

22
M,
E
Individual, Retums/1977 9 Retums. Flied and S6.urces of Inconte
Mi
M
MEU HUM . a agg
14449 MIM MAW 4 kk
4 HU-S4 Mug= 1-11-91 -4F 1-5-1
sf--~Sm!192 sip S'fs'd -,rig 't r-
HUM D;VMk is R:!5 RUN kfixj§ T;!;!
MUR FUR: QMR&
v aizx71-- t, rx
q HBO ~!"119: Kgf r
k .
a
-
195RDH
- t::!q --k
RIM M. EMU I SWM F ~Fmji RUN MR: 91 ung
st
q RUM uu~a~i unfa :!!g J!gI ;Zj;!pe
MEN PZZ111 Eak ~k a uk~ Rum R§199: 4 um
999gl-f cuR ofm
t; - AN
c4
RIME RUM Ru §FJ q §.q & gm-k zvgg~:. MIR
Pum mm
I
cli
v
UR~vj
Rig,
Inu
I FISUR Pam JIM I IBM
NOU PION I xrz:t
H
IE
4 kk1kil Iguap usoagg q?IRR Amp R~Xgk:
ti R 9 ts
uggly: it Awl
olggj
uOU Ag
c
HIM H.
1jilit HIM 10" It, lum Wit! i pul
Isiful -111.1" 11,1111H. Inall. flor.-S&H 51111a III's

MI
Individual Rotums/1977 * Rotuma Filed and Sources of Income
Rjuja peigg!
gunk §
-S!- ; . S.!fgV
I ce
6--3 4w NiHNof H-`;z
1e-
I c":
. g;,; is Mf
-V mug pAng Onsp-M R 1: D.Ign. RegaRv &1qu: V~ a
M .~P! A
't.;aA
NUM Mute pk~p apap: Ulssa
®RM'I gci- V
899MM I,-a V 1 :2 HHwl
WS39ist'i rgfgs;25 M Rr-gi NMU 9 Fj R zPUti
IBM MUM WrWn a 9: Rgp! §zBjggp§ RRVni:
1.91601 WHO RUM,
I MR IBM: 9~:Rn
.4 MM RUM HUP I PH pug upga: a glg!e
JA~Fagg kqp-::ggR AWE p R,41p" REIR214 MW I wj-
1211sel9d awfaft H&gg g- gfgsf
g
-Offlj g, ;,
X I I I jSR M! CPU-: I M&I
. 1
N
-.FJ-VwV' UT45MIT RMP e A japv PROM MAP: 1! I.M1
al- "n
Vat= 40
is I f; g gif gggagzi Pri" ggg IN
I
..... .... . . .....
:uguz; ffla WE; I gae
I
a
nijif Iffli"t 11,111 SIMP Min it In
visit I CRIga ft;;.r.59
23

z
td
Individual Riitums/1977 * Returns Filed and Sources of Income
RkWU q ~i 1 '9.,-1 ~lflk ?MM ~i--l - RAM -l
wn SF
;Z66 9 ;;rzsg;;= ---
~~ava eung gvpu ill-ma nf-UR ags-3: G- ow
~ n giva
-k 1§tnk-s nkzm Fum ;Pqxc2A -ummu imp: g;-;Ir
I RRHER 93913f §Wg!~ ApWe! at-Ma M 12
Di MR
gie'! Pva-tfR-- gig i
k SUFla -gFkkq Ram f sqggn guklzA Agq-R
v gp-
F
s
MENU 4M E F,
------ -----
lk A ~tlli
F. $3 -.a
F §9H NUO H
I SUR 928§11
.6-
E V I I I I
MH
qkj~§
4qs?§-x a Pnaq -M- up:1-4 W12"
.6p: --i, 'WR? 4 EARCE: ~,`MF
IN 9 0,,:w s 9-V Ain s2M;Rl9 ~X§! iia, P NOR
'=.~ .6
1
MM 'Gia uOR Ew
U~M ~52-- -MFM M
qn:k Pt R R R.-I FRRRM.R.
a fiRm gpp vnw? xagm m;zp RRRAP: mix
9- . -- - -- - lz gig
a 1-MM xq§U~ i R,3;e
-GL9Rk: VI A-1
r. v sf Hiiii RINI R
RH KRUM HIM k Mill XF~Fgi 49 ~RE: s2sk
RRAin
gig =gl6ac Me------
- ~
. ...... ...... .
: : : : § unn
gaj
fl-§
4§0a 'ede ftlad l : f'o-ggg
ggliq 1
§iiiii Him uWigt, I infli HIM
§ HURR
l f

E
0
C
rD
Z
individual Rotuma/1977 e Returns Filed and Sources of Inconwe
*6
ag §V I
N~ " t
A~on ~4~~-w Vrpq§
" iffix
M WOR11, _9 ~p.
14- - 6.0
RMOU URFI~: D §RRH
MW WOR qkI441 FSIUM Map:
IV-4g, . . !P:- F N:W` . . FF.
i ling
VkRR-;!
rj 7.
R gg "I-SH15d ggge: Wu
MUR MUM P, R" cq nl%~i.Klj
. . . . . . r' IP Fr-. !216
HUH DWI HHAV 4 ~fpa ~Rpj~- mm: I lkm
- , ~[Ui
M-91 IMP RFRIOQI~ p-Ap jppq Rapp: W
16
q mpn Rum PERM, 0 :szzxa;z ga--lej Hq~p q
-9 gm
~;:mw6 c6,
G HIM RRO~ q
..... ...... .
MIR
~:Zlpm Rugg
ME E:s-P -m"Isig RON IA991
U91--a -Na-MISF cag§Vt I
A
Masi ;fNiggg INK
plift Iflit IOU; 11ji"ji HUH Wit
Inn! MAN .65 §RI gal JR§ HHH H
UR4
25

-0 ca
C
a r
P
v m I
Isla Impg4eugg nku
WOO 099-55 WOO 099
I 'Mo
t~g-g 9-
jUgg
-R,r -x c4cj~~-,!
-L-i
ula HaUk Tkgf 9
gl-
MW M19R §5kqL,--%mg
~g~Vc& 905CH
III HIM it'
R
a man
gal
40,69
AMU MMU MR-Ma ENO
PHU. go-l" 99969
M11*:10 CUM
ug M_MZM"~ vff-
c4-
k KIM HIM
9--N xOgG912 OUR
HfRotle RUM
Mg ROM Wag
mum mugg azFik 4&k4a
:awn-- ----
6;46-69 RV- IM19
if MI I It
Nit
pil
11,nik §R§§§§ mum

CIA
E
0
OE 0:
0 0
c
U.
211.
c
a-
210
V c
Cc
oil
0.0
c is
E
o 1
C
R .-=t
I ISI F15 A
v
M An
SUMIRS
Z. fa49 14 c*1 9 a 9 §:,:k :k9 0 lotc9L F 9
E S
"L JRAJR~ ung Agn
R mug supi mun RXIAR
. N . - g"! - aa
!ffgonssa sin: --;& si- g~wfigg
...... ......
lit
H g
t
SZ 98 fl;
r.r c''11* 9699
IBM-
ji
111111 lit a a
as
kkk
kkk
4
IS I R
- :!!~ RRIMM
~Vkup V-g gn
cukk R!--Am uuu;q
1 . Iq --- It aqn
?VFZ
lifsF9ift 9SM 1121 Ha ~i,6 -
c6
Sf c2 a-;Z
;EIR qqI
ISIR41 umn Imn Run
U.;
5imik man 3i gu~q
Plan 0699% fflkgt~ 991FA
OVU::N E!16969 gZaIP"' RIM
INSF RNfagg a5§121
49via
liflit, Ritt"
I 11111i HIM a
HHH
jJ§§RR I
.1ga" Fvs
a-i-sof aa;;r$ 2 rv z

;v
Ham gj~ggz zkugS,
A ARIUR DRUZ MIRRE Wii
RUN RUM NRUR PMR
9599 9 u2un
I Rugs 1-Ing RgRup pl!
PURR HHH-9 Y!~R- 9
"MR& WOO MPH
9 99AHR NOW 0099
RRM
IHM !9!o!s;:n Men
W-0
UU0 ERARR
R91:1x RRDn! 5 - gggg- , g1gag
R 7
. . . . . . . . . . . .
...... ......
§ jj i mill itill
HUN Mgifl
41 1fi
Vt
,
--SUM4 RA vs;i RIP
PIFRR RUM IRM
HUP
cq.
v%j
k pflisgR
gun
umi HIM it-lilt, Inlib
is
d §
UR g
HHH H
--Id
gaill- 5 _52~_
R

a)
cm
cc
Jr
juc::vjj ~Rgl t: ~ is !M M~ivU! 9WHO
28 8
t t . V CSFj
_
i E§_~: PI
11!~Sfgsqf sfggg~g galpfig galas
-R
q.q CL I
kgkav Amp RSAMO~
e -
0 MYER OEM1, mpm
-Rags
R! . -
M~Ris
99PH
~Rvj R-am-
PHU NINE §9
-- - ---
a UMU MUS HUM sxq;zx
k
RE 83"
1HP -Had 191121
Iiji-I i HIM Umb
I§RBk
§ nil'iff I' R
§ 1400
111,1995 99HE; i
15
tj
ARM-f-9
. . . . . .
9§19§k §60,14E.
UK Him H-P- I" 9_,; 9'
kn5RA -t - . jk~m cq
a
;-epum r R H
MM ORI-OH9 H14AP 4MR
-
:;RIM
RU
S;?
anku um
we _gsf-
191,21
ts
1111H 11M
i
§
nu U RM
land MR;;
"d-611 WIN.

C
C
I
f t
OHR RUM 1;V911H
a "UR9 RIA146n gig cj sisisiMf
HAM NO" CEL RUH
_Rgism smum Olv-
RURF
;Zfe- -Zd~
R~MRF!.? malmst Rum FiRAR
ni5ag g-sak uglu gZARS
gfleg,~
99A §0 . 'n
H RHO
-4 41"p-41 RMU Hu
RX
4 V91109 MIRE R4RNRRR k3§1
RPM` rz1;! 14 12
....
iiiii Offli 10fla
§ Mal Rkkkk
Ze
HkRe
El l
RUM ANERR uvxu
poRse a mmz -pigm
;uzk~f lvls~Zq. :1 vsm,4 V$~RE
gsflz~ms;g -Mfs al%,~
91-CURZ 19 VM
MAO
I UFO" 994 CR UVRIA . VU
k
teUMU CHU OARIF 9910
8ENN
a HOUR P§§K:Z§ R1
I ----:
M
Rif
9 IRM.
Sk
Huit
2
HUM t
k§§§§ Hkkkiq, n kkk g
I

a :
E
c
.-2
ON,
W:F
0
0
0,04
-0
C
U. 0 x
c
c
4i
C
.0
E0
0
c
-MRH HUH HUN Z99
Mai
fis,i9r,
F§jm
9 2 Ran
IGHEN HUM MER gZaR
--zg;fg HIM IIIN
-
IR
2 1 HPM RUM HUM q a
cq
91
ninu;! 9PAR91 ukul SIRF ml
'i z
15
n NRF 9H
MUR 9 5-1
-
AgREI
MM Mo%-~ §91H
;!J-zaza
J~ NR-gas JATF~
-.i.a c=-
R
llulkii i kluw gs
X g
SIT ;f!q &V--k ~126 S? g- R if
rs
Pilli HIM Hill i
HUN HRU
fiff"li l WO
RISEN
J§ HHH Und Him
ci '.a
EF11155 al"ll a Hal! Q
,g

I
In 11-11-11 1
III, I 'RIIIII 1,111111 Will
!!!M !!~
upi HIM
9 E 'A
a a
2T
sew4 jgp8p-at
b-912 WuAg I'MO TWIN-H i
in
RPM
9 ,9'r. t E
1§91§9 23HNO Unt
29a M8 ~§6 p
--- ---
1-Anti
1-1-1 '1 VE a
~ 9
!ME EA-ma s
wvnfdpA-
_9 -2 _0 V b v
9
9 glIng MIT!"!
8-
'mill !!:
!
HUN §
-
C.13of
Nt,
1i g-F ZE -H, -;-ji3 Rt ~"W-g
rs!4
D3tVE
M -gill'
t I A tI--Rl t-1t
1 -2 90-9-0 --.,R:gAH'i §4"g,
HEMP AMU
zeVa-1-1 g ttVs L."R g 9 Z1 812
rRis
- --- --
12 -A I ;-~,i I 3f, t
.=9 MM's MEMO
IL
CL
co

CO)
CV)
Ir
-F
2.
ARM
gg!~V,~v 2§~2i aa;z;z nt !E§§5!k
Di tq- -:
ViR ~ P - URN
Han 'd
I Mlzk~ MIA ~-uag
'9- F 151-99`e
-.9NO
MU "AMP RIERSH 9 1 F
c6 c4.e .6
;;%Ag-x I": R mm
-1i pUll w ORE
q PMZ~§ HARM 9914M- man
5 0699r ng s:6:ff gig
nun
MU
gilt llfflgz,~
mill III
11
SIC
da;; .
a
CUM HIM129 I
R RUPP- -Pgt~
FR9519 RM:!-
Run
g-M-1 UP 19 "a
SM
I Run, mm I§Rg s imik
RIR
HUR M941 av'Hrz §44H
ctnz,; ;;1112
cr:: 9
nu
§jjjjl HIM Hill
HHH
cc;
ma !i;f- -";;;;
II
r-.

Pill
§_ -
P gill ;all ;Nil ;Ny lip ;P11
- §'41-1 - Rig 1 .11-§ - .11-1
Wo v
1
an; E V §2111
QI -g
fps: I U.N. Psi 1PI: fps: I U.N. fa - lip
;z
Ov
Mv
lp~
igg
AN
:J.4
No
§!913 1
g g.
wl
:9199 Hai 6 H I i
g I ad
I I
j:j~:~
72' Og
m:-;z i cod iol r. jet
int vil f Sv1 z I 2 IV~
AM f :rotm :M :9141 1 Cia 9
1
Aal -jar Ht, n
E
P
S.S.
AV11
Mf =V-8- '0
H 1 HE
t? N !I
I
P,
A Ack t I Van
J.
M
A r2
w
FS i; P 8~
be
R : a"~!' I -
Min t
wo 2.
_Oxi
m
.g Mg t 'S U
av
J~
§5 9t t
AA41!Ig i it I rig
SL
.7
I

Individual Returns/1977 - Returns Filed and Sources of Income 35
Table 1.6-All Returns, Taxable Returns, and Nontaxable Retums: Number of Rotuma, Income, Deductions, and Credits, by Size
of Income Under Alternative Concepts-Continued
[AN filpires are esllnWes band on sapple&-mm arnourb am In thazands of dollars)
Tax stffkm and size of incom
Under WteffWM rn rAp ig
RX"ber
Of
Tax
= lmvwnw Intel A*mted
bmired dedtx*ns per hmm wncW
Aff*M
Of 8*Mw w- kww per In- conow Tote 1'.tM paw dq&COw
-
Nwnber Nwber less Nwrber Nunt"
of AmoLrd of Arnwd dds"dt of Amwnt of AmoLrd
returns
(sum
rouns
(1) (2) (3) (4) (5) (6) (7) (8) (9). (10) (11)
Part III -Nontuable retums
Stw of adriated grou I , a
Total ................................................................... 22X3,M 6%7KI55 9203 1^077 440,016 35%182 0%788.156 11119,141 6,442JW 760,150 2,024,M
Under SM,000 ...............................................................
$200.000 wxW $WWO .....................................................
$500.00D under $1,WO.OOO ....................................................
$1,000,ODO or more ...........................................................
22.253,442
..5
55
6D.76701
15,481
"5,474
2=A7 I.WBW
32 84
439~M
30
-3
3W.2U
1,700
"IZM
60.767.201
15.461
-5.474
M.085
52
-4
6,424.895
8,994
"9.04
760,111
38
"3
2.019,694
..I.M
Z682
slas of ; I I moe"
Total ................................................................... 22,2636M 62,2110~W 9203 IP6,W 444,028 376,M 0%788,156 M,141 SP7,227 68W 16481%
Under $200,000 ...............................................................
$200,000 under $500.00D .....................................................
SM,000 wxler $1,0D0,000 ....................................................
$1,000,000 or more ...........................................................
Stm of soaded W- I - pka
nduded tax pslov
22,253,417
78
6Z270,183
21.418
..6.00
Z203.671
56
-7
1,873,973
8.792
-3.312
443,961
"47
374,176
"l.531
OD,770,386
"17,771
M,070
68
6,053,007
6,945
"7,275
680,558
"49
-
1,647,310
-1,048
TOW ................................................................... 22,253~W GW4.M 9,203AM IAIG.M 444,= 375,M 6k788,166 "9,141 6A4ZM 76%150 2X4A5
Under $=,ODD ...............................................................
$2DO.000 wxler $500,000 .....................................................
$500,000 wxler $1.000,ODD ....................................................
$1,0D0,000 or more ...........................................................
On of aditated won
22~M,407
87
6
3
GZ641.2M
24,271
3.740
4,938
2=,W 1.873,450
84 0,315
5 1,318
3 104
443,971
64
--3
371.101
Z625
--1,278
OD.707.834
14,9W
"5,W7
999,060
77
N
6,423,648
..9'00
10,241
760,086
61
'-3
Z016,668
3,706
-1.689
less Wallow k to
Total ................................................................... 22253 K434,974 2X3A34 1AW.W 44OjO16 35%182 K?KI56 OK141 GM.752 U4,10 lAAuIEl1l
Under $200,000 ...............................................................
SM1000 wxw $5W.000 .....................................................
$5w'OOO Under $1,000,000 ....................................................
$1,0D0,000 or more ...........................................................
.
22,253,450 60,417,612 2=6D4
0 1 . !3,"l 28
%721
1,8KOO5
62
439,091
"25
351,704
-1.479
6D,769,516
1*18."o
M,093
10
6,075,794 684,501
.1 7,27
1,669,927
"956
Footrofts at and of Oble.

Uff
Hil
pill Pill
Of P§ l P§ j P§ l
-alIt R lit i
u 2 ~2 !I u t!
~v
'§
illi ig I inj
RIIt Rilt 7 Rjjg Rjig
A 'I.,
gig 'I
A
I
InFM -t§ -
M H
t .
_1511
I I
§ _91 1 1 8d 1 1 1 n Im 4 yp~:
pi ho% :gp 5 W9 5 Awd 0
nig
:2 lag 09 Agt i t
IL
IL
§ zs:
VEt i emff I 99w:11 Es.m i 'sg
4
-IM
r. Z :~a-zj Ent 0.9 62, " g g" A
MV
fig
j50
ASU -V HES 19 QM
13
gm
AT
g 4
CER i
lot
4
Ng i
.13~1
un
W,
g 6-i'l § I k afin 9 am91 E I

Individual Retums/1977 - Returns Filed and Sources of Income
37
Table 1.6-All Returns, Taxable Returns, and Nontaxable Rotuma: Number of Rotuma, Income, Deductions, and Credits, by Size
of Income Under Alternative Concepts-Continued
IM lipas am es*natss based on
ftenrized dedictoris per Inwrie croWl-C~
Tax at" and ske of home
Contribijb" Medical deribil
wider aftenia0ve wnMft
Taw paid dedtcOon
decitclim War=
'~ 4i'
Part III -Nontaxable returns
Skze of meow gross I - A
Nwriter of I
retwIls
Ania"
Nwnber of
Arnowit
Nurnber of
ram
Animil
I
Total misoebrinw;
Nwiber of
mum
Arnowit
Zem bra&A
Nwnber of
retim
Affanit
Ex-Oan
ana"
(12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22)
TOW ...................................................... OV'm i'W17 821,673 693,343 $47,M1 1AW11 G",164 561,397 17,311,M VXW 3W,060
Under $200,OOD .................................................. 927,480 1.379.661 821,628 59Z686 847,342 I.M.371 677,118 50,483 17,311,750 27.2%210 35,IK903
SM,000 wider $500,000 ........................................ 44 656 41 452 ..19 "241 42 4AM "45 "127 1*157
WW.000 Wrider $1.000.000 ....................................... -4 "200 -4 ..2M ..6.95 .1
$1,000,000 or more ..............................................
Stia of eqarided Income'
Total ...................................................... 927,= 1,W17 821~11711 693 847AGI 1~1 0"'164 661,397 17,311,M 27,256,W 3WAN
Under $2DO,000 .................................................. 927,465 1,379.671 821,612 5OZ727 847= I.M,480 677.104 549,819 17,311,735 27.2K162 35,366,604
11MODD wider $500,000 ........................................ 60 726 50 413 "38 "132 57 4,630 57 167 245
$500.000 wider $1,000,000 .......................................
..3 "120
..3
"204
..6,94 3 6 "12
$1,ODD,000 or more ..............................................
- -
Sin of a*Mod gross I hm. pkis
aduded tax Wferwicis
Told ...................................................... 927,M iW17 821~M 69334-11 $47,361 1,MAII 677,164 561,W 17,311,M 2?XW 36,367M
Under $200,OOD ..................................................
$=,OW wider $500,000 ........................................
$500,000 wider $1,ODO.000 .......................................
$1,000,000 or more ..............................................
927.455
69
"4
1,379.5W
78D
"200
821,603
so
-4
59Z642
496
"205
847.318
..'a
1.863,M
"256
677,096
64
549,445
5.001
-6.951
17.311.732
60
3
-
27,2W.152
176
8
-
35X6,780
265
"15
Skee at ad).isted gross I , a -
Im Wrimstraird Interes
Told ...................................................... 927'M 1'W17 821M 60" 847,W1 1AW11 W1164 561,397 17,311,M 27,256,W 3%W,060
Under $200,00D ..................................................
$200,000 Under $500,000 ........................................
$5W.000 wider $1,000,ODO .......................................
$1,000,000 or more ..............................................
927,488
37
*2
1,379,773
624
"120, 821,635
35
12 ,
5OZ759
3BO
'*2~! j
847,346
..15 1
IM.495
**117
677,125
36
.2
549,841
.. 4 6DO
6:90
17,311,753 27,256,220 35,1%921
42
..117
1 **139
- I -
Foobioft at end of taMe

pill P191 Mc Up lul ig I iml ig I
OR Ph I P I I Ph I P A I
lit IIt lit - Ili - I It IN.: IIt IN -
:Vu 9 9M IM92 -
MAN :M 2 n t i A v
N O I INU 9 I III' I MIN
fl.9 I
: 9
liu 4
-_c
:=N
M I
us' :aa :1 - --imi Z UNJ M
: v--§ t 9VA OR
IcsA
M= 9 tj1 9 1: 11 g ml I SIR I I NQ §=.42 I
RgE it Mi :id I nsad I s z--iI I rdd I m
1M9 I M-1 1 '11111 1 Ind I
JET P F, cz is je
It :Ogg R in Him
A A
SL a
g 5
ago
cr
L-CL
v FL
cw
CL
Z.z
c
CL
020
Or -j
C
z (A
c9 m
cr 0
m CL
I
Ono CL
c3c,
0
00
CL
cr
%C
CO)

.
Individual Returns/1977 - Returns Filed and Sources of Income
39
Table 1.6-All Returns, Taxable Returns, and Nontaxable Returns: Number of Rotuma, Income, Deductions, and Credits, by Size
of Income Under Alternative Concepts-Continued
[An fiMes we esdrnatss based on amounts am In Itiousands of dogers)
Tax status and size of hooffle
uncler alternallve 0011cepts
Number
of
returns
Amount
I'm. in
before credits
Additional to for
ta plefeel
TOW
Tax credits
FMW ta credit TOW
Mimber
Of
returns
Amount
Mxnber
of
mum
Afflowrit
Wimber
Of
returns
I Mvjd mew of
returns
MWA
tax
(23) (24) (25) (26) (27) (28) (29) (3D) (31) (34 (33)
Total
Pan III -Nontuable retunig
Stm of loam Wasis I I ~
...................................................... 17,311,M 33,110,382 4332 4 IA47,034 - 4A32,624 1447A34 ISM 62.M -
Under $2DOODO ..................................................
$200.000 untler M.000 ........................................
$500,000 under $1,000,000 .......................................
17,311,750 33,100,442
.. 9'M
4=485
" 39
1,04ZO77
"4. 957
-
4,33Z485
..39
1,04ZO77
"4, 967
13,061 66,385
-'3, 703 -
$1,000,000 or more ..............................................
Tatid
Stis of exparided Inctimis'
...................................................... 17,311,M 33,110,M 4XIM IM7,034 VAM 1,047,034 13,074 AM
Under UW,000 ..................................................
$2DO.000 under $500,000 ........................................
$500,000 under $1,000,00D .......................................
$1,000,000 or more ..............................................
17AI 1,735
57
3
-
33.099,757
B'M
1,8 48
-
4.332,470
51
3
-
1,041.9W
3,878 1 , 197
-
4,332.470
61
3
-
1.041,960
3A71
1 , 197
-
13.053 5k467
Sin of somW gross Inoclose pkx
excluded tax Ill few
Tobil ...................................................... 17,311,795 33,110,M 4,332,M 1,047.M 4MM4 1,047,034 13oO74 62,M
Under $200,ODO ..................................................
$200,000 under $50D,000 ........................................
$500,000 under $1,000,000 .......................................
$1,000,000 or mom ..............................................
Ske of adjusted gron hicor.
lm woodment Ildell
17,311,792
60
3
-
33,099,514
9. 020
1,848
-
4=467
54
3
-
1,041,861
3,
977
1,197
-
4X2,467
54
3
-
1,041,861
3,977
1,197
-
13,061
"23
-
56,385
-1,7103
Total ...................................................... 17,31 I,M 33,110,M 4,M2,524 JR47,034 4332X4 IP47AU 13074 62,M
Under $2DOODD ..................................................
$200,000 under $500,000 ........................................
$WO.OW under $1.OW'OW .......................................
17,311,753
42
33.100,61116
.. 9'6M
4,33Z488
"38
1,04ZI76
"4,
M
4=488 1,04ZI76 13,053 58,467
, =
$I,OW,OW or more ..............................................
**3
:Ed.MW.Wd b...dwithcaution because Ofth..d number of somi'M W..~ it 11 based
*Ideraifies (a) size classes for which detaweredeleled because of the small number at sample returnswi~ OW were based and (b) oonft fretIuencles or arnourde do Include go data it= Meted from another she on&
'The surn of onaftil wmess nut IorVerm capital pire over shod-us. capital Wases. dividerid exdusion"to the Ortent report@4 other tax pielmai from Form 4625. ftwever. lltsrr~ dock tox prewar" is not
Included In dft concept
*Irwestmem Interest. for the purpose of Oft table, Is defined as Interest deducted (MMUMV homenxx Iffierest) lin' to the amount of Investrnent Income.
In the case of the "AdItisted Gross Income" and "Adjusted Gross Income Plus Excluded Tax Preferences" lines. this Is totar Itemized deductions as transcribed from Schedule A. In the cam of the "E)Vanded Inoorne" and the
.'AoaW Gross Income Less Investment Intereat" Ines, Oft Is total its., deductions m1ma Investment Interest.
In to case of the "Adjustacl Gross Income" and "Adjusted Gross Income Plus Ex*AW Tax Preferences" anim Oft Is Interest dedLcW as transafted from the Schedule A. In the can of the "E)qmmded Income" and the "Adonted
rose Income Lou Irwestrymn"Unes, Oft Is Interest deducted minus imestment InteresL
Adjusted! gross Income plus exchxled tax prelawces "Orius Investment kdoies
-Inch zero bracket amount.
NOTE. Detail may nut add to total because of rounding.

40
Individual Retums/1977 * Returns Filed and Sources of Income
12 R~-= ;Z-Ak: I - I I -I I I I:
44F~ 2.0
V1 a sm
4NO 09H MAR= ;zlgg-: I - I Ir I I I I:
k -z g- Ariz'6f
HEH H MPH 14UP: 1 1 1:.1 1 1 1:
AP2i
rcIr
;2 Fan Lai! v P: 4 3991
Ldsf--.q
0 HHER UP=: 9 ORR W? 9FRI, I
XUR
Pla.
!"W: FERS:
gj=
Mi
-c-ig k EMU UP: I
;j 4
Mgffa t9 I f
71 1 lp a C: C: v
-a i Aga
a e-:
3M
DUB URE
R
I&M-IM ~f=5.6.6
5 W4905 IMP -VIRF Wk 4 n5xv mv I: Rvk~:fgp;f
3 FRURIS no
.;c; mp- Z- 1HI P EO MM: "MMU R I
9§16f Lea
iff-Ix CRIUM 53
z
12 AMR&;!f -Mi- 7-r
U,
*6"f
Ang 4 ~r ~a MR .
ce,
gi~~ 935": ZHU 3~-@s
gi
ORIN ar. 111-11 11
1giffli kilt illb
Him
I 3"'Hig 1111
Nn §§ §§
jig"IsF gin
~z
MR
ARM Rga Affli
§3
'illm
wil AimlI
nu unk&

Em
.0
C
1511S
Jr
I I R
Rum-i mum mk!Et Cet nq
c4-
Rum 12 !Wxzk--. gua . A~l Ism .....
luff
S"PF-' ARM
u; 9
iglln 5g RRU go
aaa*
M RMCt 5
1
?300 lcMk P
k - v P ~ I99,
R91GRE WFU RRIP, 5 RIE
je
gig
. ...... .
. §§§ka Hun ye .
Ral
WF: RMOR
JillIli
iffill It b
,§§§§§ §§ RU
.6 011 P2,245
Jill
i m -
?-
JIRO
S
I li;~ .
W&I
--9-99-9
MOM W
rs
S'
1 A&MU RUM Rui a
a --"Ha ZRAM U ;E:!
'_7
-
i A 1-41a
:2uk RFRRM u a3z
g MIR UW= it4usa
g C.
4181H HIM RRUR 0 F s 9.
10111- it
HUI
URM MU5 Hap mF
c
HIM- 1
.... .. . .....
. - -
:gga- r.- ~ a
~e
§g
--V§S
Iiiiii Him Wit, lalli 11
H 1jin§ g
MR. ci :3124a
r2r,
Hu 9aftl
I

fill luff -0111 fill M
6:
Rh I if
SL
9-.8-2. an ens 1-96 sma nin .
a -m ~&,, 11
$.i.
EM An P'n sg ~ 00 ax
IRA HSH -0-11 -gi122fI ,AI
Um i'li'l Ii.-W id ON 68-fl,
096 rni-1-Z. VIS U'l 9U,9 'EM
Met! §M I-A 03jaii 115 -.4-H
stm m g Hem Hit HT M~ :.4, 23~ I
s I
MEP; :,INA W ILM3 HE
~ wm P- - tt-t ' - I
...
;;=;
OR
r?5
11r.a HO EN T
II
T
4 A-
to
-sit 10H
is- SAN
85~ 9 91ra 01S -
I
ICE Vr--tV if!
PIP1 ~2zro r. ~;12jGj.
9W Ot'j5p 5x 9 919 MO ME
M-552 UR-0. M Ut A&--m- Mt
SL
SL
0 m
c
R a 2
a-
CL
0
CLn
cr
%C
CL
CL
:L (A
go
12
C,
1 0
3
0

cc
10
Individual Retums/1977 * Rotuma Filed and Sources of In me
11M.0 R
CL
g
-1
-RigsRs"i r: 9 ffsa", -:52 1--
upa R Wo
cL 1% -Z
21' 94,M99, FR
ci
21~ Inv Sig
RNK? MAUI IMF "WEAUP Mis
RERIG-V W.1MR, 0 991.1sf KOM
9f;:R 9 5R, OfieIi
CUM F A';
S. AMAR
;9MAPS3 IBHT-
X 1e1M;!ss- lg~ sag
RRIMN
S 1-1 11 1 S IS69
MV-
vgn~q q lonk §~-~npk HUE
R94 HOW
9mid
Rg-=
a
;:*WFj
1
I gakon.: ~mk;zj I Run
IBM
MRZ; aMCH I nan
Usms Zvi" ;z I ;ZRFI§
cq -Wd :§§fla g
1-6999,
IYUJUIUMfilij 5 1111HU", Rju
U
§1 MUM §§§§R HUM
F.S.9 IfflM
digsil ;;;;;;;;

44 lnd[Mual Rotuma/1977 * Returns Filed and Sources of income
mill I
Z1
a
M W-qRW
-: 990 990~-Wx - Ogg
IMRZ Z~AHFR I RUE
NO
IR kEviav
9REU&I
a 'Its" PIMS
9 . Ilz~g i - si-;i :. i RUSU g-- 8111. -cq
MIM q IM" MPH Iffla
04-49919 a
A
I MUZ
OHM !21*
-94 MRS
gj,:
96":099 1
-EU-3 MrS 5 ;139
S "QUISH ~!-L HH21
cj= URN91
sv~ ggqp
ffe,.F-r ga-
R e
HAHN Eq
RR X9 101 ", MV,
%F p;-r!m V
URV
cjm wf ej
RMHO HUM -r 9 1 HOW RM U 4 H-CA
RDI wo gm - 4
ago
HIN
Mink E
rRI!Zce
i 99F
15 _01~ 59oft
1110
piIii fliflit, §jjjjf HIM
a
1, 1
]Jilfl
elff's
§§§§§
99
~J sz;;;i 1.
11,11,15F ~ Ef-Mil ftft flnis ft

fill
a
Indhridual Retums/11977 9 Returns Filed and Sources of Income
W*6 MAP"Is Ow,
RUHR
1 nagst
- 3 99
9V
alai
ct -r
. ...... .......
A
. ...... .......
Mg IOU
pult HIM I itint, lilds
I a rII . j "IRR, N XSE naa r. Ia
F9
A
pig,
45

46 Individual Returns/1977 * Returns Filed and Sources of Income
q
!gjt:
'Et 3nug
-k. m c6
z e6 c6 cq
4 RE
.Ff
RIP
I . URN --=
----
't-Ng;ff
UsnURR OUR
OUR M9
94 W
AMU
9;,Ugg
a I RRIZER 4911MG5 I MM
R"t ~i
-e.6 -A
1 DRUM I I as2ZIM RMEFIRR I i 1912M1 J~
9 14tigsf- ~:~z VIV c6-
d 1Q9"g
IR APR V RRUR MU '-t-1 In 4
1 F§99 M1091 MIX XUR091 1
IR R,~Ra
19F90
*-6 I b-splzgg ct
I a
.n
HOW MUI -r-r,.z R 22 1RIZ ~: MA RR i
-* maa - "6 aa -6c$ -6acicj .4 ~ g.Sea cq
. ...... .... . ...
*.
... ... .....
--e.6 j
pijil Mill" pliji III H
HUM !~IUU
.0
I
I

Section 2 Deductions
and Exemptions
Contents
Introduction, 47
Revised computation of taxable
income, 48
Itemized deductions, 49
Unused zero bracket amount, 49
Investment interest expenses from
Form 4952, 49
Exemptions, 50
Text taUe,6
ChaAt
2A
Returns with Itemized
deductions as a percent of
all retums, by size of
adjusted gross income, 1976
and 1977, 47
Buic tabtu
2.1 Returns with itemized
deductions: deductions by
type and by size of adjusted
gross income, 51
2.2 Returns with itemized
deductions: sources of
income, deductions, and tax
items by marital status, 52
2.3 Returns with taxes paid
deduction: taxes deducted by
size of adjusted gross income,
2A Form of deduction and size of 53
adjusted gross income, 1976 2.4 Returns with contributions
and 1977, 48 deduction: contributions
2B Exemptions by type, 1976 and deduction by size of adjusted
1977, 49 gross income, 54
Chart 2A.
Returns with itemized deductions as a percent of all
returns, by size of adjusted gross income, 1976 and 1-977
2.5 Returns with medical ana
dental expense deduction:
medical and dental expenses
deducted by size of adjusted
gross income, 55
2.6 Returns with total
miscellaneous deductions:
total miscellaneous
deductions by size of
adjusted gross income, 58
2.7 Returns with interest paid
deduction: interest deducted
by size of adjusted gross
income, 59
2.8 Returns with investment
interest expense from Form
4952: investment interest by
size of adjusted gross income, 60
2.9 All returns: exemptions by
type, number of exemptions,
sources of income, by size of
adjusted gross income, 63
2.10 Exemptions by type and
marital status, 68
Introduction
Data presented in this section
cover deductions from
adjusted gross income. These
deductions were used to arrive at
taxable income and included the
$750 allowed for each personal
exemption. Statutory adjustments
to gross income to arrive at
adjusted gross income are mentioned
in section 1, Returns Filed
and Sources of Income.
Summary data for exemptions
are shown in table 2B, while
detailed information on types of
exemptions, including types of
dependent exemptions, are shown in
tables 2.9 and 2.10. Data for the
major categories of itemized
deductions are shown in table 2.1
(classified by size of adjusted
gross income), data for sources of
income reported on itemized deduction
returns are shown in table
2.2 (classified by marital status),
while data for specific
types of deductions within each
category (such as State and local
income taxes paid, general sales
taxes paid, and the like) are
shown in tables 2.3 through 2.7.
Data are also presented for
returns with investment interest
expenses from Form 4952 (table
2.8). 47

48
Revised Computation of Taxable
Income
As a result of certain
changes in the law enacted under
the Tax Reduction and Simplification
Act of 1977, the concept of
taxable income differs from that
used for the previous year. For
recent years prior to 1977, the
taxpayer deducted $750 for each
exemption; plus one of the following:
total itemized deductions
or the standard deduction. The
standard deduction was computed as
a percentage of adjusted gross
.income, with a lower limit
(commonly referred to as the
"low-income allowance") and an
upper limit. For 1976, for
example, the percentage was set
at 16 percent of adjusted gross
-income. For unmarried persons, the
Individual Returns/1977 o Deductions and.Exeinptions
limits were $1,700 and $2,400; for
married persons filing separately,
they were $1,050 and $1,400; and
for married persons filing jointly,
they were $2,100 and $2,800.
For 1977, the standard deduction
was abolished and replaced
with the "zero br-acket amount," a
flat amount based ort marital
status. The zero br-acket amount
was not, however, taken as a
deduction from adjusted gross
income, but rather was incorporated
l.nto the tax nate schedules
to represent the income "taxed" at
the lowest bax rate, the newly
created zero percent rate (hence,
the name). (Prior to 1977, the
lowest tax rate was 14 percent.)
Therefore, a taxpayer who did not
itemize his or her deductions
simply deducted the exemption
amount from adjusted gross income
Table 2A.-Form of Deduction and Size of Adjusted Gross Income, 1976 and 1977
(AD fiWW are estiniatin based on samOee-mor~ amounte 1 in ttvwnds of dollarel
Form of deducfion and size
of &OXW gross income
AD Rebryne
TOW ..........................................................
Under $5,ODD ........................................................
$6,ODD under $10,000 ...............................................
$10,000 under $15.ODO ..............................................
$45MO under $20,ODD ..............................................
$2D,000 at more ....................................................
Rob= WWt-
TOW thintitted Deductions
TOW ..........................................................
Under $5,00D ........................................................
$5,000 tmder $10,000 ...............................................
$10,000 under $15,000 ..............................................
$15A00 under SKWO ..............................................
$2D.000 or more ....................................................
ZWO are" Amourd MWndard Oftiction) Ordy
Total ..........................................................
Under $5,00D ........................................................
KOOO under $10,ODO ...............................................
$10,WO under $15,000 ..............................................
$15,000 under $20,ODO ..............................................
$20,000 or more ....................................................
Rftm whh neither dammed deductions not zero bracket amount ..
1976
(1)
UA701M
23,935,751
19,89Z956
14,551,350
11.197,191
15,093,141
25MIM
6DD,246
Z918,444
5,140,313
5,674,165
11,618,221
58,172,237
2Z788,742
16,974,512
9,411,037
5,523,026
3,474,920
546,763
Form of deduction and sme of adjusted gmea hcome
Number of returns
1971
(2)
86AU1640
23,=635
19,342,819
14M"B
11,404,973
18,325,007
ZMWW
417.884
1,482,079
3,110297
4,549,006
13,337,241
seen
18,105,278
17=,037
11,188.909
6,855,967
4,987,766
4,778,178
ChanA 1976
to 1977
(3)
IA"I
-M,116
--M,137
-25ZI44
207,782
3=,868
-404.M
-18Z362
-1.436,365
-2,030,016
-1,125,169
1,719,020
787,718
-4,683,466
847=
1,M,872
1,33ZO41
1.51 Z846
4.231,415
AD Raturm
Total ................................................................................................ .........
Under $5,ooo ...........................
$5.000 Under $10,000 .................. : .................... ...... ........... ....... . ....
$10,000 urider $15,000 .................. : .. ...... : ........ *..'..:,..* ...... .................
$15,000 under $20,0DO .................................................................................................
SMOOD or more
Return Wtth-
Total Iteadmed Deduicliont;
'TOW ................................................................................................. :...........
Under $5,ODO ............................................................................................................
$6,000 under $10,0DO ..................................................................................................
$10,0DO under $15,000 .................................................................................................
$15'WO under $20,000 .................................................................................................
$20.000 or more
Zero are" Amount (standard Deduction) Only
Total .............................................................................................................
Under $5,OOD ...........................................................................................................
$5,00D under $10,000 ....................................................................................
$10,000 under $16,000 .................................................................................................
; .............
$15,000 under SM.000 ...................... ...........................................................................
$20,000 or more .......................................................................................................
Returne wfth natther gemmed deducdona nor zero bracket amount
T- 1977, inckAft zero bracket amount for 1976, Indudes slanclard deckdom
NOTE DeW may not add to toW becauge or roundh4
Adjusted Fm moome Wee defa
1976 1977
(4)
145kM5,687
51~M,317
145,856,338
180,687,556
104,184,453
481,890,023
6111^757
Z098,588
2Z89Z622
64,979,686
99,OD4.390
3OZ703,47.2
479,127,049
56,088,848
12ZO63,717
115,707,870
06,180,083
89,186,561
-6,910.119
1976
(10)
247,W764
41,166,745
40,831,245
37,7KM
39.161,251
88,698,633
IMAO'M
1,769,053
9.806,332
18,437,324
24.733,5%
79,144,698
113,753,M
39,397,693
31.024,913
19,349,566
14,427,682
9,553,935
1,16kams
49,618,146
142,660,976
177.144,W7
198,020=
591,OOK744
6"MOM
1,313,378
11.748,795
39,526,423
79,99Z684
46Z4KI61
SHASZ677
51,557,125
130,657.714
137,617,614
118,027,840
128,59Z583
-ZO97,891
Deductions'
1977
276, I 7%902
28,074,202
50,317.493
44,077,121
41,930,918
111,771,168
13BA19,421
1,140,M
6,001.157
13,3DZ796
21,683,092
OSA91,787
137,651,481
28,933.613
44,316.MB
30,774,325
2D.247AN
15,379,381
in arriving at taxable income.
Those taxpayers who did itemize no
longer deducted total itemized
deductions to arrive at taxable
income, but either subtracted the
"excess itemized deductions" (the
amount by which total itemized
deductions exceeded the zero
bracket amount) from or added the
"unused zero bracket amount" (the
amount by which the zero bracket
amount exceeded total itemized
deductions) to adjusted gross
income. (Additional information
on the zero bracket amount and its
effect on the tax computation is
presented in section 3, Tax
Computation and Tax Rates.)
For 1977, the zero br-acket
amount was set at $2,200 for
unmarried persons (including
heads of households with dependent
children); $1,600 for married
Change, 1976
to 1977
10405AX
-1,659,171
-3,195,382
-3,543,519
3,835,870
109,158.721
IM"'M
-785,210
-ii,143.av
-25,453,2M
-i 9,oi 1 706
69,752'689
87425,11n
-4,531,722
7,693,997
21,909,744
2ZB47,577
39,406,032
3,91Z228
Change, 1976
to 1977
(12)
nW138
-now,su
9.48U48
km=
2,769,666
23.07Z535
4A26MS
--M,464
-3.M175
-5,134.528
-3,050,477
17,247,089
ZM403
-lZ464,080
13.M1,423
1
1,424,761
5,BM,144
5,116,440
A-age a4ated groee moome
Im ddch (doftare)
1976 1977
Change, 1076
to iMn
(7)
12,447
4142
7,332
IZ417
17e342
31,927
22A14
3,496
7,844
IZO41
17,448
33,800
OA36
4§1,
Z 7,2U
IZ294
17=
25.655
-IZ638
1976
(13)
(8)
13,3n
Z132
7,975
1431111
17,%2
32.253
25M
3,142
7,927
IZ708
17,5114
34,674
Z847
7,331
IZ299
17.215
25,781
_W
AverW deftfiong, (
21M
1,719
Z062
Z596
3,497
5.876
5,159
Z947
3,36D
3,586
4~=
6,812
1,M
1,728
1,827
Z056
Z612
Z749
1977
(14)
3,187
Z601
3,082
31676
6,099
0"
Z729
4,049
4,M
4,766
7,227
%=
1,487
Z488
Z750
2.953
3,083
(9)
M
-10 43
-29
20
an
3,574
83
67
138
874
1,371
386
87
-181
116
1ZO11
)
Change, 1976
to 1977
(15)
M
-513
50
486
179
223
-218
689
691
408
416
379
-241
659
694
341
334

Table 2B.-Exemptions by Type, 1976 and 1977
JAI figuree am eebra bwed on wm0ee-mmq smaxft am In ftm,& ol dohm]
ExerrVdorm by "
AA Exempftm
Number of mum .......................................................
Number of wwVJ= ..................................................
Amount of exempfime ...................................................
ExWVHM for Topqws
Mamber Of MUM ... ...................................................
Number of exempbme ..................................................
Exwpftm for Age 65 or over
Number of ebm . .......................................................
Nurriber of 6WffPfiM ..................................................
ExwVdm for Mn&au
Number of rehm .......................................................
Nurriber Of aw"M ..................................................
ExempU- for DepwWwft
Number of rehm .......................................................
Number Of Ww"M ..................................................
persons filing separately; and
$3,200 for married persons filing
jointly (as well as certain
surviving spouses). For most
taxpayers, but especially for
those at lower income levels,
this represented a consider-able
increase over the standard deduction
available for 1976.
Table 2A compares the form
of deduction used on all returns
filed from 1976 to 1977. It
should be noted that the number
of returns with neither itemized
deductions nor a zero bracket
amount increased dramatically as
a result of the changes instituted
by the 1977 Act. Besides the deficit
and "breakeven" returns (those
on which there was no income from
which to subtract any deductions),
this group included, for 1977,
returns with no itemized deductions
and with adjusted gross
income less than the exemption
amount. Under the new computation
of taxable income, the
exemption amount was subtracted
from adjusted gross income before
the zero bracket amount was taken
into account. See 449 "Form of
Deduction" in section 6, Explanation
of Terms.
Itemized Deductions
Generally, as a result of the
Tax Reduction and Simplificati on
Act of 1977, taxpayers could iremize
their deductions only if the
total exceeded the zero bracket
amount (exceptions to this rule
are discussed below). Chart 2A
details the sharp reduction from
1976 to 1977 in the percentage of
taxpayers who itemized as a result
of this provision. The major
categories of itemized deductions
were taxes (for example, real
estate and State and local income
taxes), medical expenses, interest
expenses, charitable contributions,
and "other" deductions. Each of
these categories is discussed
separately in section 6, Explanation
of Terms. Not included under
itemized deductions for 1977 was
alimony paid. Under the Tax
Reform Act of 1976, this amount
iwas made a statutory adjustment to
Individual Returns/1977 & Deductions and Exemptions
1976
(1)
84,670M
215,M,937
161=453
84,670,389
129,210,683
7,975,070
10,430,763
17407
177.671
35AS7,105
76.954,820
1977
M
86,634,640
215,17607
lel.382,748
$8,634,640
130,7M,790
8,028,471
10,480,724
176,156
179,026
4048,923
73,783,457
gross income, and was thus
deductible whether or not the
taxpayer claimed itemized
deductions.
Unused Zero Bracket Amount
The Tax Reduction and
Simplification Act of 1977
required that four groups of
taxpayers itemize their deductions,
even if those deductions
were less than the zero bracket
amount. These groups were:
Cherge, 1976
to 1977
(3)
1,964AS1
--W940
--447,705
I 954AI
1:523,107
53.401
49,961
109
1,355
--3M 182
-Z171:363
(1) certain married persons
filing separate returns (if one
spouse claimed itemized deductions,
the other had to do so as well
and, in some cases, this may have
meant claiming no deductions where
one spouse claimed all the
deductions);
(2) dependents with unearned
income, i.e., children with investment
income who were being claimed
as dependents on their parents'
returns, but who were also filing
on their own because they had more
than $750 of income (while the law
stipulated that the children had
to itemize on their own returns,
they were allowed to substitute
their earned income for total
itemized deductions if the former
was the larger of the two);
(3) "dual-status" aliens,
i.e., aliens who spent only part
of the Year in the United States;
and,
(4) taxpayers with income
from sources in U.S. possessions
excluded from taxation.
Taxpayers in these four categories
whose itemized deductions
fell short of the zero bracket
amount had to compute an "unused
zero bracket amount," which
equalled the amount of the shortfall.
The "unused zero bracket
amount" was added to adjusted
gross income in the computation of
taxable income, since the tax rate
schedules which were applied to
taxable income allowed for the
full zero bracket amount.
Investment Interest Expenses from
Form 4952
Beginning with Tax Year 1972,
interest paid on money borrowed for
the purpose of making investments
was no longer automatically fully
deductible. For interest on
investment indebtedness incurred
prior to September 11, 1975, the
deduction was limited to the sum
of the following items:
(1) $25,000 ($12,500 for
married persons filing separately);
(2) net investment income;
(3) the amount by which net
long-term capital gains exceeded
net short-term capital losses;
(4) the excess of allowable
rental expenses over rental income
attributable to property subject
to a net lease;
(5) one-half the amount by
which investment interest exceeded
the sum of items (1) through (4).
For interest on investment
indebtedness incurred after
September 10, 1975, however, the
Tax Reform Act of 1976 placed even
greater restrictions on the amount
that could be deducted in any given
year. On such interest, the deduction
was limited to the sum of:
(1) $10,000 ($5,000 for
married persons filing separately);
(2) net investment income;
(3) the excess of allowable
rental expenses over rental income
attributable to property subject
to a net lease.
The limitations detailed
above applied both to investment
interest incurred by the taxpayer
directly, as well as to amounts
paid by partnerships and Small
Business Corporations in which the
taxpayer had an interest. Each
partner or shareholder had to
compute his or her own limitation,
and carry the allowable investment
interest to Schedule E (Supplemental
Income Schedule). Any
amounts attributable to rental
property were also reportable on
Schedule E. The allowable portion
of non-business investment
interest was deductible as an
itemized deduction on Schedule A
(Itemized Deductions).
Investment interest disallowed
in any given year because of
the limitations could be carried to
the following year and deducted
then (within the limitations for
that year). Any part disallowed
in the carryover year could be
further carried over to subsequent
years. However, in the case of
investment interest incurred prior
to September 11, 1975, the carryover
from 1977 to 1978 had to be
reduced by the capital gain deduction
for 1977.
The data shown in table 2.8
reflect only the amounts specified
by the taxpayer as investment
interest and reported on the
49

50 Individual Returns/1977 Deductions and Exemptions
official form, Form 4952
(Investment Interest Expense
Deduction), or an equivalent
schedule, and consequently
may be an understatement of the
full amount of investment interest.
A different approximation of total
investment interest is presented
in section 1, Returns Filed and
Sources of Income, and is discussed
in that section under "High-Income
Returns, Taxable and Nontaxable."
Exemptions
In the computation of taxable
income, each taxpayer was allowed
one exemption of $750 for himself
or herself. On a joint return,
husband and wife could each claim
an exemption, even if only one had
income. Additional $750 exemptions
could be claimed by both taxpayer
and spouse for blindness or for
having attained the age of 65. A
married person filing a separate
return, but whose spouse had no
income and was not the dependent
of another taxpayer, could also
claim all the exemptions to which
that spouse was entitled. In
addition, one exemption could be
61aimed for each qualified dependent
(defined in section 6, Explanation
of Terms, under "Exemptions").
Exemptions by type, including
type of dependent exemptions,
claimed for 1977 are compared to
those f or 1976 in table 2B. In
contrast to the other tables in
this section, these datawere not
affected by any tax law changes
between lQ76 and 1977.

Individual Rotuma/1977 *Deductions and Exemptions
a MWER U§U~ --- - 19MR X - - HIM URM UMNE :
~;ZNF2S~ ~-r
rz
RE`jg
GIUM RUM IHMIR -peqg 8
8 ~% t1-.'%=4 -liagM
UP
I
vj'(zz:126 Ms
p knirg nnn mc:v
-.:: clZIUSURUR RIAU: 0 MID
11 fok
- :!
rNs leNg"S'e-A ."Usk RRM: JJvR-:
ORM
t-- 5" g -q
t!j M-Slfk F-OVS IS691K ROO i ;Ef W-99
AM
muFF z IRGM 31-HRIS"I .F
5199f -~
19111MI: I 9M EMT
-- 919909
.5 ME R
9
~f
IMN A9
'~as
~A-~Ixx §1136 HOM Mm wun n~w 4gw
pv.-Aikk man 41FER: R S~rD~; A
~~`Sklg MANU k Ra"M BUR:
MUM ~Jfiqx 51 PF
r; c4 --- i
a-~F- : 5
i ~U
lls-, WE
:
WRI
'kin 11 MIN
X~~Ka~ SEIM R~-:M-M MUR URRURP
"HG-L ft -
N8911:
! !qR nag
X HUM
NOW
V!0`99 - 2 Xqta
-~"f'e Wng it-0 4c6 0 ~! ~: U-6I
n
Mi RUM Ma"M
M28031-
HUM: AHU, "!Mel 9
gg
z1% lk CAc% '%
9
A
ig U1z_9a REF
"PaR
~A!q
ARM Ma
c" -
' '
M
.i i flga g"=*
, I
a
aM;! R
ARM -
R'N
Ile
99991
4
6 affia
'Mal UXUR Mg;;:
:!SIM UMIU Hop MMO
MAM MER1 k
nM ;~
w? AR .4m mn:
X411H HRUH Mai:
99909T 5~!90116 'zRffic~ SHOld HIM `9959
RRM9 Pte 9 MSIS SNg.~qz -
RRORI Funn nkkf R k man oqx§ n1sq:
weg xgg-:~g gfg'pk
RUN o aid -
...... 'HIS . .
11111 MH b
6
......
...... ......
HUN 11119
ind.
;;;;r.
W6
1 92 Z~j
]UM till j
a
2
Rkng
I Is9
Fe R 5 9
~90
c.3-gl2i -
4H
:SFr.
11 1
51

52 Individual Returns/1977 e Deductions and Exemptions
r
F
Dig
H
lak U 82
I,,
F ;;-
I-q NgFu I
091 §S2 !91~99g jg~z~~-f g `~
.;q"ks i
c.2 cS.6
Hcq 3~ 3~ R 8-i K ZV- -a A
19 ;:2 a & ig
!?a R~: Mgj
& --I --l za
t,
e5i ev !8- !2 - e!
~
.19 PV! P! -zg 8-
4
q
9 ,
M- c4 C; 9f -z 1 lasli~
R? F-: 'Agil XMA
Zk . - . Pk NU
z~r cj~ RF,.r
R
RE4 H ace 4!!2 n
p
S§
g.;
m
gig
J~ VR
4
4-8 uku g?~R u 5-9§
;Z049
g
9Gig
qecj~ra
V
c6cj
X
te
4111 R FR ~ml
-: ""L
IF 41-4 F? A -Hela--to !MING r-I M
- !5! =:-a
Xcvqrcz vie vvm;&§ ~Vsl
V"J IQ 4
z R v §R u Ikk a
,:
X
rz
z
F3 Me
S" 46 EMAH gloat
~Rkj=
v
X Ztq lzta 124 M 1- 19 V- R kk kU D1 - 9 nma kk mk-
rz -E3 mek 2- 1~j IQ -49 NOR P
v te a te
- m
R ga acqa A !q. ; __ r ~f-r Ea nq Mi.
pyn! an 4;X G
G- 9 ERE r.- H MAR
f -r~z c;La M~
P. V qcS
15
gig -aivz 5-- -'I U'll.
"t -
III if III Jim J22 ill I fil 12 1 flimm ]JIMM, Ml

es
v
HUI
m -A
v
VUS
M
pup
lilt till's [1111111 it 111111 11,111
fli 11
pl §
. ... ...... ...... . ...... ....
~2Kmg ~-LAPU -s-:- ULM;-,
ESP! Mzu$3 Hil' ga- WHO E in
Mt Him
II13 W9 MWE§ 9,
g & g R g a- E 18
ngtla
mi CHU u
00 ::Iflo
zigg, - J&g;
zi
WOW ~gffi iific-;
-§
E " 19 ' 1t g -ga
aaflI-
;
-9tMt.
S Ov
.pul ffiffi. mzjz-
i
ipf-
'tYK
-Oat
t
E UR-E-919 ttwffi Him
Eswxp
a -
-M
uelaru 4
' - 'I
tHo&
VE -9; -E
f A -g 1 3 R St VRV0-3
5 -fad Inf-jZS. I r~ - USF,2 Hfig~ Mgnx
R mb gig i'; ggm e -8 5a 'I i-;a -8'n'tMg g
=M- §PxZZ-109 jeN13S. FS M-
-g-g:M-- -gum ii E A
PH-1
FBI q MRt HiN Isff~~ t av
.w
ME ~r"T, ~Ifjnpjg~p-
aIS fluu ----- -W i5d -1 rsi_9WE
'I
~" 3-Vol m IMMN
fi Mai t V-9 gig 9 2.32 9.,; §r--M§W ImmNiM M---H
Hai
5j
Rt -a
SE z
zj85eu2!x
euoudwox3 pue suolpnpea 9 ZL8&19tunjoW junplAipul
B
:3
Z9
SL

k -4
H HIM P
-4
. b
Ps ;~v
lilt
..... . .. ... ............ . ......
q "tag 109ANj I E k
Mfll
1 1
a HIM SL
tW U
.... ......
...... ...... .
mi-ag 99. 1 Nan '09'st E`1, 219 H
--.On Amb -ogu,
V -$98
09 14
A Mg iiRMA MUM 90W~ 1995M 8
ts 1 0-Mu , RUTH p Mis
auffs, 9 "' PHU
AIN ~2g-j '- , vH-M v A
Im
JgU
I
4 Pon
Cangn HS-
13it
-;s
MM MZMA9 U199?
guz-4 RwV. A-19=21 igud fixxf~ ANABNP
-"n f ~~' -1
fiviv AI WIN - -
t - 0 affigo i HUN U69
119111
Hal
5 rfM PAP Ma
Sg IIg g gigh MUR
...IMMM tzg h. 511sai 9 -91tt t -3t
§.9`199
-
F- 5 ni§ E "fid HE I
RE MAI Mv ..-aggi I PHU. OV-0 T;;em 5
G, 112 US ai !SM,54
nan
-jjjbjjdwex3 pLw suallonpoo o UGL/sLunpH lonplAipul
i V ;3 Eiji nh~-Jz~
Hgyo.mg
z
I
a
SL

V!M!L- guarla -4 P.
Z-2111m p , I I ~!Jvln Sum mrla-
§
f§ 1
gpi
HIM FOU in I
UP ill 111111111111 !J1111 1111111111 1
It! ,
L" I ng; !!
Hiig x woi 5551M gigs 6WA Uffii lfab
IUM-g -Wr~-F-,Jf i ::31-391.219
MR _
IM
94!2w pi;lma F
gAm I . - IM
5~3 1 WNnle
S
I
I HI I RICH alvai HiThi -fRHO
I10- Ma
val I13 -5
:.4 S.- --
na;u Ytafl UU on va, g
t
R ~2 ~Pag Hun fl u
1, 11
1 0 t tt ~bt
I
imn 00POX
HAIN I aarv-9 SRI! i 1 ;3 V
In Ran RUN
99-
ElEA-13
9v9 8 E. E-5tM
t E I WI EN
5- vIN. ----§
r.
:18OU alln RAW 81 T Iml :M911 USSM WHH
is i4all FAIS-ka. -xii-N-Im a in
Dig
SL
fill
r 0;!
3 cr
f . F Tmac
rL
LL -C
c
ME a
m0
2.0 c',A
c .04
91-4
0
COL
c
0
02 14
CL
CL
m
x
M
CL
c
0 2

Ir
SiP!PW
UUM ?&"N
VxRn~§ a-VFA§x
k- Nctm
z
U5M HUM 9 1
_r
q HURKIL REP:-:
Rs avagsts;D; a-
CIS?.
US
A-Sift:
13
wstr ,-L MW PURIM
-s-R-Re RUN W Is! ~j
Zia
cqN RMERIB
tZ31
-*WEI
Hai I URRH HP-W I anfflu
190W ka§558 te MH
`1 NOR~t_ W.-F n
@1 Rol gRe
HRUP ck
------e SM P- Z~f
m HIM w-
MIR HIM
Am&-, I ARk
- ------ -- ass;;_
pull mill ill"; mill I kill
jlg§§§ HHH §§§§§ ~j &
3116",99991
. ci
a.rrlaa rs "

!Mr, !!!! "lox !nm !mllx
.~J. p- I NnzPS2i11-
" i;I1- !81 ER R -R § 9 911 888pH9 PSUM
ocolso -§888-- ------
wit IIIIII till
I n
vt$6-- ------
§8 HH9 91,
.. .
Vim u-p` I I a g M"t.
...... ...... ....
_86 Win on
Hism FOU-t-:51 M111r,
Owo - A
- 5.-
N ~. P
-
i ----
.k, A HGill smi;; -
TVII 1:91 i m,~515s", §13 Afs-9 E a ~ MAS-U IMM-it'VE, -E 13 _611_3§91
HiN i
HEM !-21- M;
8 ZUTU
ME
OEM ..... 9 :~ _rAx I= ~-%Sgp X.... pp,2-- 35:3s.
HUM. ,
r._ErNi 199419§ PIPIM Z s 82 55t~ 6 Wl'S W~,9w!!ag.
al jgx~g FRUIR EHV,~5 As ~jg~egp WOMU HL~
j. ~~_b ~!
WHE R299-HE MC.5's 9
a
I I
I
M
I
1 9.
1
I
a
a
I
I
I
0 T
'0 c
I

58
cc
a
a
PFUM2
V;.w; ce.:
dc2-
Individual Returns/1977 *Deductions and Exemptions
cL A
S"FFM MR! F i'; ZIA
RUM 2 X 9r-d 9 U agg
C4 -.f-
~49 iqT,6cjP-
9R R Wisf -:i~
af8
MIS?
agggg
MR W vie
so i S XM91 U914 Awk
U ~:g . 2 Eg ~! HU P c2
P-~ 0
HHU FgHU RM=v I ii~ki SARRH JR114 -rip vmp
-L
V95 Jkluk Sup I plue
MEN. ;.01-99H 51;9ZHU MMA URR14-UMI 4 -
VEF999;f
c2 6.61W V35M i 00.99
URRUR Gx- A 9~He man mkm~ ~4s-gk k m4f
19 - iel- OrgF&j
9.-Pgv--~ .~ t HUM OEVE: 165flOy- ag-m glig i 51
a
l cj. 9-r.-e" zi --tLan
l
- Ct, q -et
eg
UC" 9 9MR: Isiqu K-Rug 5pa
g a WO O
c4
R
c6
U M E VE V4
..... .....
RUM
ad UrMagaa ' -rfZ; - &
giijif ifffill
zi
IOU Spilli HIM HIC,
...
Ilud
Ann" c2 HIM- 1- -.agg was

Egg- 11INg Egg !.!A
Him P
till HIM 11111; 111,1111
MI .
. . . . . . . . . .
... . ...... ...... ...... .
..... . ..... . . . . ... . .
IMEN
O'N Ow
i WEAK i H I .-I
t
bpoz~ t EgnU
ts
ENS
M
APPH -filiz-Orl it
% .19 1 .
ivill
18-mani M-CH vnla;:~ VNICH 198 p, Vs-3tit
- I
mW- WHCi"i
gt~1 1010 MuR I.C.09i i VC-W-MU a
%
IM"29 ~99= 1-g a
MUM ~M-
cs .4 zz'
t MEN g 1 J2 4 tit
M
c-s g Mg -6-isvig -8-THIJ
IRim m au;z, 11
-ar. V-s-si -ling a ti-s's gjtv.!sj
9
lu
GL
LL
C EL
L c
90)
2 c
-04
CL -4
C
20
0 CD
CL
CL
cr C
c
e
N
ow 2
> CL
06
m X
CL V
0
(A

60
5
g F,
A
Indhridual Refums/1677 9 Dqduc6o~s' and ExempHons
HIM RAHAR vmg: 1 HIM
c4
9FUs2m IM25 ip px-pte
a-RIFE InFal 1 PHIRR Mal
C"MV-3
:-c4- c=ia
HHP 930
sw
pup gi-
!;:jumi 9 ftcj Juan
uv~m RPM A Rfagg mm-Z.
-44
RUN
WIN IMM
ag UU129 PHU
-HIN gig
RUM

14
ff
individual Rotuma/1977 Deductions and Exemption*
I:- I I *%VAR.
WEI I IvIR Ej1pa
OR
U f: .9H MGM
FIR-
.1 9
I
Irr: I V81ele-
MPH
rjeM~ . Imp
4- * -
gicig
E RPUT9 iMAU
of ~
IV
Rgna
61

62
%!VS!-R;z ;e'EG4-kk lndhddual Retums/1977 e Deductions and Exemptions
c6- e
Riggs
.62SIM-
I IRM HAW
3~'~MF FUN
V.,
14M MUR
FIG;=
R
Or.
111611 far. r*
4 cS. cq.
PP
r,;;g ES.
P.
Mae
RRH Mw
MUM RARM
-;cq
AM §d§
811, *
fill all
.19
j ai

Jai IR
IAll
Individual Rotuma/1977 Deductions and Exemptions
MV-9f ~99lq
MA MUF2 *411
APHA NIRRIFe Mug- vou
t~Fg-t~sio gpiagra q 94 V;f ataggF6
HAM- NMU Mv.
~E%M-n Mum izgv~ mlstk
If v ggag 6.f 91Gz
,
lRaw Rum Emu Aplus
g. ~
6-r-A!U Ming 6-5-509 0,45;, cj
5EM MUR 1"WHO UZ
eiied Wit a 19-999
High HURRI RAM i M
X:cd~z~: ;W;4 w ~ cjc;v;c4,r,
NOUN OMP-1 qviza mr.
RZ99H. HIMSm REMO@ 9§6:11 a
~Mlg RUM MEW A9 93
902M RM"i-e HIP 9A
acr VWVC~CFM wwwrzece aci
q!?
9.RFJRX
16-W
MUS WARR 09199
999111 T17,94 90- K?gig 9 R E 03
Or .Fla -gag at
:gglf-r. ar.I
re
pit i fillif HHE
luffir. arerer.99 Oro g ffe
2
r re
11crU
11.111
1AII
I-A
a
9-
~;M§ MI
ME HOME HIM
I I ME HIM :UUM 1HRO
wns. ?R?a
1 "19"
T
RMP F49
N"M U0 9 IMP F~9
Q1
EMU UMV MH
MM 9~ER;~g 9 E9~UR §19H
.... 1 Pi ...
9 ~F,;UcR MM %~:M
A5H;§ U R F I E a Z99FIR f
W-:
~Ilfll-
1111:9 - 61;OIN G ql~!Ri I ::
H
WAR 97959.1 FAISH 1§90
tzff 9 9149 gft:e-~- 4,KgR
R--§§ alm Hun A ~ g ns
a ci;ix
a RAMS MPH Wkn pku
v
5
~Rstp- Imn I I
URP kiu
A F i 1E RUM: 95HRE 9 R 0 1 ES
;;91 MIM ~56
E 9a9 9§N9R 6 Ha§ig 90! V;
4-4 fts~:O;.z Cj-099i
cl
V z! '2 ;:&zq E~P! gon
I
E E F EMU .4 --- Fv9011 ...
9 91 S 9 ED A
aaaa..M ~5
.... ...... .... .
. ...... . HIS
11 111,21
I I
ro finif lit
:Crr.
11 ma ",
re ro
rrrr.99 9HO112.
4

64
AID "9dd 99~jg":;f VF;9GfSi8f =K
Individual Returna/1977 * Deductions and Exemptions
IMI AMFE Ulm VRER§
!Ali R HERR& c;9 M
P
nag-~iN RUM; P-
HUI
HIRMS -HAM -11931ve q~:Sng
cL
Umf HRAH PNEU U
~Mf §'FeURE MPH
MID
J'j
~?M-i MFZ~ ~GIAYEH RAM
J14911:5 AIM 999P!*69 MM:9
-5
t
a .6g
I PUSH ENE
MUR UWE! UZUSM
MWR HOW 1;
u ct
i. KzHg~: - HEM HOF
MDR- W-89 5- A - Vg% G
g al
k
5
seg - - a 1z'% 4- - --t
Z k Is MARESf 5 4?GIBM
HUM EMU 9IRRIP -S 91~
w -.qcL
9991H AMU MM U294
g-e-:
Jr g 12
UMF
MOM §-~09!~: ;f`-rR-j Kg.-19*f
EMS93 gc'6-7V!%'z MR39 I~jz.;J!f's N;-z R
S6j~ .44RIRA nqEi zvlt' -.2 1- ~-N
~kWx MU G 99" AR
` 'W
H; - e'l 4 FRU .6 ERMS I slepq 112jg!
g~v
at
rz
M31-H RAUe gg
I X
Wfc6a.6 ROP-P r.
H
?!5 - Ce ga ii-in c4L-
HMF
F RM p; RPU . -
" -AIRM
NR MUM, U-1
MR19 SRHUR AM" 9.2%
9 Ka
LD
Oda --ingil
H-O~Oa- A-FNV'- RUM
.6.6'z.6
Wit
Hanoi- 21211-

p
I
E
z
Individual Relurnq/1977 *Deductions and Exemptions 65
OHM Mupe. i M
R1,Z ...... 9 R ~ F. 9....... -19 Mi W~ ~UGM
a~7171:c4~: c4
9 I~ZX ... ....... F P11 Z? P-OM-21 MR
9H~ Z &'
S~Ss
MH ~W?99 MVM
n,6-4 ~ff
MrW? 19=2H gp§§VG- HHO
al~~:-Wlz c4 1z a-e-ea el6c614
OEM M;,&H -399999 PRA
a RO: 159, 9,96
,6,~g
M9, Mac4..
r -.f~f~ cq-z ci. ~ c4a Sf 1 c4 z m
;W MH~ HIM HUI
t
Z Cr
, R
F'M;
tip i~P?RF gRiena sRRAg
i-Kig- ; ! -- & SIZISS W ;&-- MH5
3
1
1
... g RIHUR ...... HUSH Urzi~g
F 9 H "HO TH OHM INM
- E;-MH MR39 MR9
P PgMz: - R ;:9 .
f
6 9'T9 Iff9 6tffggg .
f
93I MM SMU H 4M~ MOR kUka
~HXH 9 5 a 9iISSf4 Ow-t
A V. E R F-- IV Z 9 2,8 Uff
PRO$ 9219;-e g 91ON
- Ifir,
jpq
k r'! ------- 6 6991-5
Jai RT 9~zis OUM RNARIF ~'490'A
k R C5
99"0 9 1 F RRa I IFEE j
ER E H
tkdd~
a 999 R PI!a EpMi HMO MH n! Rin uz k
~:rz-7.egg g c,
1691R49
i ga n gp
MW URV!~ ELPHI
---- ---- - -
. ...... --rz
.~ZcL -~
Ek ZZ 11 :3 &9is E I a % E ~ a M90
-.eanr a
-egg ggg g;~ ~: ~ ,Zr sf$~
mum magn ... ung.- --- b.UAk
.
U81w;: .... PUM .... . RIS .. Ug", . c1c "'IF,
§ nun §§ -
gad 19112 iia muk §§
Nunn
'%jj§ §§§!Rk §§§§§g
111if. HIM ...... HIM, .. ..§
jjR§§§
UZZ .;.ig
521115 5, 110
1 HUI
JW§Cr . § §§RR§§ Rew.g.R W&H
=1 ;Uga aaar. 2

66
z
OUM
"R
NEU" ~ i NAM ... 4
. Okk;X 11
9
RR.F`
-- M U~R HAM Z-HR
6HUN- PRO&-?
g.6~
Fjgz; c4 .6
,Sn CL -L MWa RUH
-g ~f ,
-40 MOR 91~!90-
HHHE HIM Umi
IOU
~.Rpxm R Enna gung % lumvi
§ v -133fguf gaglikti
f
MR
~,;
H""M ITRIO MH F
OINIS &19999,v~ 9-1AF2:259 ~~-:Fvn
a ZiRin~lctq UUM .;; 1 .1% . IF-gog . .~: 9 P F
nun .... Uan 8....
§ .... R M1RSQ; SeI -Z,_S
FiVelipe%IIF WISM9 MROF H!
Ut- A gggd
WIN 111M 91-911' 98- ;;
MiRk 99MME M1012 A973F
a A S R 81t 810"! R
R ARM
individual Returns/1977 o Deductions and Exemptions
1:9MU
RUM §
M CM vie-Ug HIC21
1111h
it!
ROW Him . ujg~§
MW H --- ME
11
I
I
11
vie
I
r-
I
g
ZZ g:ggsd
zVuRNA
v~ ~ ~ 7 g--,46 0:
,
~;5fp 22
129@5
HMM H.UH T 3~- E
.2 5f:s 8~;9955 1~-,% 7 z
MH
. ici 4i ~ -
i""11 MUSH 921,
Mv
UMH - - - - ~,§§Erza MV99 M~A
- - . .~Vt -14 .-~
falf-7:82
F9@P:H§ PHUS
Ustegg IS&IS§
R'SIMM MUM MAP M9,
!~z AL ...St
Sadog! ggsf-~IQ
9 g;-: I UP RMS91 9 ?
..... n -nAt Pii
,4-:,Z~fgg
t3
H;ts G - - % 'S8 " ~:-990 9
X F ;-; r. R a~ta Fa-% Pups- mgrz
nuc! "82§§F uml
H91z: !V16 ggsigg
EMU URI@ MR, ~ 1 211
R! . L R . .4 . EiR . .,.tq
2un.;-!
cr
;;
DRS I M9,93 5§99H -PU 8-9 9 S
d aa W-;~e
;;;;v u g
11 Z
M LyNN-- 19a....
;1 - 1r,
§111il MH
i
jRRRg E.jR..
. . ...... .. . ku i
R&
M
I SM
a ~ N

If
If
Z
z
z
z
Rv;;Ic~ In-m non; ann
;.Q;s1QRiF MARI ~~§M M99
OHM: -: 6 - 1109n OW?
A
IMIT:- Nic4a
sr*eNg ~mms;!s
VM
MRS,: H99ag ...... RRP!m-2 .~t-t . ~:ms .....
f I Ism F A99T.i §91sles
:! - RUM HOWIl'! 10RH
MAH HEM MM; . 1
... CA ;Vt-kt--k
U099
1w
EMIR HOM19 A _q ;Mglf A
I V_;_fft
91M.A OWN
1 M6M OHM: HIM §RM
.-Rill . ......q
spivs;22 rzMOGS s9efg.,
AMEH FUH9 !cQ FHF~"
I- in- F- 9- 1- 4 9- R
6,6
FZHM
---
R a Rk99~_ Iss-M
Individual Returns/11977 Deductions and Exemption*
g~:cr _7-.F.F:f4
RM&,- "SAME
MRIM 'Gi Q-1 HiNE: z
c%r
ZLEAFWA AMWK HUM 9 V.2 2-
~: .. ..... . ~dc!
IMM §121HR :9916
MM 9 A F2 0-1 9 UM 38-14
1HER ;f!!fR
iii-a 1%
9H
...... ....
§§gk § d 9
H 'Hrc';;-;;g
13;1112'~F "'699 alai r, 1
z
1 -1 1 1 RF H91011- BIMPM -Rig's
HIM RUM U95i9p MI,
~*ssf ;fy 7~,NIR 'AgsId-
j..r
HOM MM 1"M
M-W
HIRV~"
'I % ~-.t §HM rsMs . - -
4 Mils EMU RUH2 H! It
R ."-t -
~!,;
ROOF11
H
'699M99
99 0 ~999AFV Hz I
9 9:-:: 9Ve . t ~P F 9 a r ;~e MEN ee_~ 9 R9 A I
!
969UA gawn FAIV399-`
c1ra 44.;-:0; a.9cli
al"kV Sk"Ev sg~s"
RI RH;
A 9 9999H f~Figm nARM
.4 - 't . A . a ---iMOIV6
99 HE II ro _~U~
P: clia ~c
HUM IUM RIM__P A:;
R" MI: H
c1F
HOUR MIM .;;- a f s-; "7 ngs-
-a
'e-1-111 1
&li§ MIN
1113 a Ear 2quirm U2,112 z
67

69
:i S
l ot
1C
E
Individual Returns/1977 - Deductions and Exemptions
99 9199H RIUM
H Nil
15
I 001V 2 HUGS PIE
4
-HPI
g I
tf
g § a R R
1HIM
9
k AH919 P, a 3 a F BE §
Hg5rl!
-1 -1 In 1-t
:w
8lk' P
-9
Hq i 9A
nZ V.x
gs~!-6g g -e ga
a.; a gfg R@
gg ag SIN
6~:
c4a _~cq
I ul
R
g 912
gg "-8 HA ~:_ ~Jq
-zg -- t:: § H ~ x
Z1_ e!a:
I kapiil~ ~ a cgs I -VAR: I X I S,.-_
_~,f EI A
rz FA R R 1~ 9 c69
;f9
V IWO &gm
a.;.6
a.7
I
e 9
fill Lb
E,
E
-LqLq
X
cq
14"; *f9 99 Id 5f
3 c 5 ;4.
93? .6a aa
8 % qLq
J~f zg.~F
9 ZE
I? A
E R
e~;

Section 3
Contents
Introduction, 69
Revised tax computation procedures, 70
Income subject to tax, 71
Regular method of tax computation,
Maximum tax computation, 72
Alternative tax computation, 73
Income averaging, 74
Computation of tax on partially
72
tax-exempt income, 74
Taxes from special computations,
Tax rates, 75
General tax credit, 76
74
New jobs credit, 76
Earned income credit, 76
Child care
Additional
credit, 76-
tax for tax preferences
(minimum tax), 77
Overpayment and tax due, 77
Text taUU
3A All returns: selected income
tax items by type of tax
computation, 71
3B All returms: computation of
taxable income, 72
3C All returns: computation of
various tax concepts, by size
of adjusted gross income, 73
3D Returns with general tax
credit: general tax credit by
type and by size of adjusted
gross Income, 74
3E Returns with new jobs or work
incentive (WIN) credits:
selected sources of income by
size of adjusted gross income,
75
ChaAt
3A Number of returns and amount
of total income tax, percent
distribution by size of
adjusted gross income, 70
Buic tabtez
3.1 Returns with income subject
to tax: adjusted gross
income, deductions,
exemptions, taxable income
and tax items by size of
adjusted gross income and by
type of tax computation, 81
3.2 Returns with maximum tax on
personal service income:
adjusted gross income,
personal service net income,
taxable income, and income
tax before credit-sby size of
taxable income, 85
Tax Computation
and Tax Rates
3.3 Returns with-net gain from
sales of capital assets:
gains and losses by type, by
size of adjusted gross
income, and by selected types
of tax computation, 86
3.4 Income subject to tax and
tax, classified by both the
marginal rate and each rate
at which tax was computed, 88
3.5 Returns with income subject
to tax: tax generated by rate
and by size of adjusted gross
income, 93
3.6 Joint returns and returns of
surviving spouses with income
subject to tax: tax generated
by rate and by size of
adjusted gross income, 97
3.7 Separate returns of husbands
and wives with income subject
to tax: tax generated by nate
and by size of adjusted gross
income, 100
3.8 Returns of heads of households
with income subject to
tax: tax generated by rate
and by size of adjusted gross
income, 103
3.9 Returns of single persons
with income subject to tax:
tax generated by rate and by
size of adjusted gross income,
108
3.10 All returns: adjusted-gross
income and total income tax
by size of adjusted gross
income and total income tax,_111
3.11 Returns with total income
tax: total income tax as a
percent of adjusted gross
income, selected items,by
size of adjusted gross income,
114
3.12 Returns with income tax
before credits: tax and
credits by size of adjusted
gross income, 116
3.13 Returns with earned income
credit: earned income by type
and credit before and after
phaseout, by size of adjusted
gross income, 118
3.14 Returns with child care expenses:
expenses, limitations, and credit
by size of adjusted gross income,
119
3.15 Returns with tax preferences:
selected sources of income,
tax items, tax preferences,
and computation of additional
tax for tax preferences by
size of adjusted gross income,
120
3.16 All returns: tax liability
and taxpayments by size of
adjusted gross income, 123
3.17 Returns with tax due a t time
of filing: tax due by size,
127. .
3.18 Returns with tax overpayment:
tax overpayment by size, 127
3.19 Returms with tax overpayment:
type of taxpayment by size of
adjusted gross income, 128
3.20 Returns with tax due at time
of filing: type of taxpayment
by size of adjusted gross
income, 132
Introduction
The taxpayer, in determining
the 1077 total tax liability, had
to take account of several factors.
These included:
(1) income subject to tax,
generally adjusted gross income
minus personal exemptions and, if
applicable, "excess itemized deductions"
(as discussed below under
"Revised Tax Computation Procedures"
and in bection 2, Deductions
and Exemptions),
(2) the method of tax computation
to be used on the income
subject to tax,
(3) marital status, which
determined the applicable set of
tax rates,
(4) taxes from any of the
special computations (described
below),
(5) any tax credits the taxpayer
was entitled to apply against
income tax,
(6) the additional tax for tax
preferences (the so-called "minimum
tax"),
(7) all other taxes, defined
in section 6, Explanation of
Terms, and
(8) any taxpayments made during
the tax year to account for the
year's tax liability.
As described below, "income
subject to tax" in the statistics
was the actual base used to determine
"tax generated," the primary
component of "income tax before
credits." The amount of "tax generated"
depended on the type of tax
69
I

70 Individual Returns/1977 9 Tax Computation and Tax Rates
computation used and the taxpayer's
marital status. To "tax generated"
was added the sum of the
"taxes from special computations"
to determine income tax before
credits. From this sum, statutory
credits, such as the credit for
the elderly, the general tax
credit, and, beginning with Tax
Year 1977, the new jobs credit,
were subtracted to obtain "income
tax after credits." For purposes
of this report, all or part of the
"earned income credit" (discussed
later on in this section) was also
subtracted in arriving at income
tax after credits.
"Total income*tax" consisted
of the sum of income tax after
credits and the additional tax for
tax preferences (the minimum tax).
This amount was created for purposes
of Statiztiu o6 Income (no
such amount actuilly appeared on
the tax"return itself) to determine
whether a'return was taxable
or nontaxable. To this amount
"all other taxes" (consisting of
the self-employment tax, social
security tax on tip income, tax
from recomputing prior-year
investment credit, penalty taxes
on individual retirement accounts
(IRA's), and any other unspecified
taxes, reduced by any applicable
earned income cr~edit) were added to
determine the "total tax liability."
Total income tax was used
to determine the taxable/nontaxable
status of a return since its components
were considered to be most
representative of income, as opposed
to social security or penalty,
taxes on current-year income.
See chart 3A for' the percentage
distribution of the number of
returns and the amount of total
income -tax,. classifted by size of
adjust;Wgross income.
Once the taxpayer determined
the ta~*liability, he or she then
subtracted any taxpayments, such
as income tax withheld or estimated
tax payments, made during the year
to determine any overpayment of
tax or any additional amount of
tax to be paid at the time the
return was filed. For purposes of
this report, all or part 9f the
earned income credit was also used
to determine any overpayment or
tax due -(described below).
Revised-.Tax Computation Procedures
One of the primary aims of the
Tax Reduction and Simplification
Act of 1977 was to simplify the
actual process of determining income
tax. To this end, a number of
provisions, as indicated at the beginning
of this book under "Changes
in Law," were introduced which
eased the burden of taxpayers'
filling out their tax returns.
Chart 3A.
Number of returns and amount of total income tax
percent distribution by s-lze ofadjuste'd gross In-come
For Tax Year 1977, adjusted
gross income was determined in much
the same fashion as it had been in
previous years (6ee "Adjusted Gross
Income" in section 6, Explanation
of Terms). It was at this point,
however, that the procedure was
changed by the 1977 Act.
.The standard deduction was
eliminated and replaced by the
"zero bracket amount." The zero
bracket amount was a flat amount,
based on marital status, which no
longer needed to be computed and
which had already been incorpor-ated
into the newly revised tax tables
a nd t ax rate sche'dules
as the
amount of income "taxed" at the
newly created zero percent tax
rate. -9ecause 'of these revisions,
taxpayers who did not itemize their
deductions did not need to subtract
the zero bracket amount
adjusted g
from their
, rosis income. If these
taxpayers.were able to use the tax
tables, adjusted gross * income was
the same as "tax table income," a
new income concept related to the
Size of
Adjusted Percentof total income tax
Gross
Income 0 10 20 30
$15,000
under
$20,000
$2D,000
'under
$25,060
025,006
under
$30,WD
$30,OW
under
$50,000
income brackets in the new tax
tables. Tax was determined simply
by looking up the tax liability in
the appropriate tax table,under
the tax table income bracket
covering the taxpayer's adjusted
gross income amount. No other computations
were necessary since the
tax tables were also revised to
reflect the deduction for personal
exemptions and the general tax
credit. If the taxpayers could
not use the tax tables, they had
to compute "taxable income," on,
which the tax rate schedules were
based. For 1977, however, "taxable
income" represented adjusted
gross income minus the personal
exemption amount (as opposed to
adjusted.gross income minus deductions,
standard or itemized, and
the exemption amount, in effect
for 1976 and earlier years).
Thus, "taxable income" in this
report Is not comparable to the
item of the same name In previous
reports since it inctude.6.the,zero
bracket amount. Taxpayers who

used the tax rate schedules also
had to compute their general tax
credit since It could not be
Incorporated into the tax rate
schedules.
Under the 1977 Act, all taxpayers,
with four specific exceptions
(listed in section 2, Deductions
and Exemptions, under "Unused
Zero Bracket Amount"), had to use
the zero bracket amount if it was
greater than their total itemized
deductions. For those taxpayers
who either elected to itemize or
were required to itemize, the computation
of tax table income or
taxable income was slightly more
complicated. Once a taxpayer
determined the total amount of
itemized deductions, he or she
then subtracted the appropriate
zero bracket amount from total
itemized deductions, since the
zero bracket amount had already
been incorporated into the tax
tables and tax rate schedules.
The next step was to subtract the
"excess itemized deductions"
("excess" over the zero bracket
amount) from adjusted gross income
to determine tax table income and,
if necessary, then subtract the
exemption amount to determine taxable
income. Tax was then determined
in the same manner as it was
for those taxpayers who did not
Individual Returns/1977 - Tax Computation and Tax Rates
itemize. If a taxpayer was required
to itemize and the total
itemized deductions were WA than
the zero bracket amount, the amount
by which the zero bracket amount
exceeded total itemized deductions,
known as the "unused zero bracket
amount," bad to be added-to adjusted
gross income_t~determine
tax table income. Table 3B presents
data for this revised
computation of taxable income.
For purposes of this report,
several new tax concepts have been
introduced as a result of the Tax
Reduction and Simplification Act
of 1977, as shown in table 3C.
"Tax from tax tables" was the tax
figure which the taxpayer obtained
from the tax tables; it had already
been reduced by the amount of the
general. tax credit. "Tax generated,"
on the other hand, was computed
for the statistics and represented
the actual amount of tax on
tax table or taxable income, before
reduction by the general tax
credit. These two tax figures,
as well as the general tax credit,
were computed and are shown for
all returns whether or not each
amount actually appeared on the
taxpayer's return.
One concept, while its definition
did not change, actually no
longer appeared on the tax return.
Table 3A.-All Returns: Selected Income Tax Items by Type of Tax Computation
[AN figures am estimaft based on samples-mney amounts are in V*usands of dollars] _
Type of tax computation
"Inc=e tax before credits," as
shown in this report, represents
the sum of "tax generated" and
"taxes from special computations"
(defined below). However, this
concept did not appear on the tax
return since the line on the form
which used to be the equivalent of
"income tax before credits" was
actually the sum of income tax
&educed by the general tax credit
ptA4 the taxes from special computations.
This occurred because
the general tax credit could not
be applied to the taxes from
special computations.
Income Subject to Tax
"Income subject to tax" for
most taxpayers consisted of adjusted
gross income less personal
exemptions and, if applicable,
excess itemized deductions; in
other words, it was equal to their
"taxable income." This was true
in the case of taxpayers using the
regular tax computation, the alternative
tax, and the maximum tax
computation methods. The regular
method of tax computation involved
applying a graduated set of rates
to income subject to tax. Those
taxpayers who had sufficiently
large taxable income, some of
which was from net long-term capi-
AdWed Inoome subject to tax' Tax Pnerated,
Number
of
retwl
WVGS
hCome
IS"
Molt
Number
Of
returns Amount
Number
of
returns
Amount
(2) (3) (4) (6)
AN reburn ....................................................................... I .................. KW640 1,168,49=5 81,674,U3 OKS94,M 6SX83,04 171,9U.722
Rettons wb-
No tax computdori ..................................................................................... 4,960,007 -1,567,175 - - -
Replar tax compAgm on~ ............................................................................ 77,Bil,119 980,994,927 77,611,119 787,740,553 64,62D,060 126,380,021
Income avenaging tax computgon ...................................................................... 3,470,760 125,080,760 3,470,760 101,2M.381
3,470,760 26,271,577
and regular tax oomputation ..................................................................
198, 859 24, 245 , 347
108, 859
2D . 716, 909
198M 1
8, 814,
175
and aftemd" tax coffpfttion ...............................................................
M100 10,934,837
72,1 DD 9.265,069
72,100
4,210.209
Alternathre tax computation ordy ......................................................................... 283,168 17,743,971 M,168 14,SM,463 2B3,168 6,917,589
Tax on pard* exerW MoDme only .................................................................... X230 8K884 36,M 799,563 36ZA 282,847
Tax on partially exempt ineorne &W afternatNe tax OmVtftbDn .............................. ......... Z397 160,675 2,397 149,325 Z397 67,303
No Income subjeof to tax, but Wth taxes from speoW computaboW ......................... : ......... 3,641 _W - - - -
Both h=M U61W to tax 80 taxes from WM CMPtftb= ....................................... 238,098 5,181,715 238,098 , 4,123,917 230 505
953,817
No Inoome subleot to tK but whh additional tax for tax "Wenoes ................................... 14,723 -250,483
-
Both additional tax for tax preferatoes and Ineorne sW4W to tax ...................................... 384,764 25,583,9W 384 764 18,898,770 - 20 ' 1 -
1 ,
648 7,2N,826
Inoorne tax Income tax AddrdonaJ tax
balm aeft after credits for tax prelarenoss
Type of tax WMPJWW Number Number Nuniber
Of
returns
Affairt Of
robot
Amount Of
returns
Amount
M (0) (10) (11) (12)
AN rahm .......................................................................................... 6SP41M in111,80 6k3".844 i5g,44908 MAV IM916
Returns with--
No tax ooniputffdm ..................................................................................... 3,641 3,672 3'em 3,521 14,723 93,690
Rapier tax CMVuWW . ............................................................................ 64,627,643 126,534,483 60,326= 115,395,876 162,067 397,726
Inoome everaMV tax corr"tion ...................................................................... 3,470,M 2607,346 3,429,708 24,519,681
185,889
670,100
and reguiar tax computation .............. :::: . .:::: ....................................
196, 869
8,
824, 088
198,
634 8, 669 , 964
1 , 117
1, 382
and ammett" tax convutdon ........... :::.::: . ....................................
72,100 4.214,082
72,052 4,093,606
2,667
4,146
Alterrad" tax computation orgy ......................................................................... 283,168 5,927,770 M.391 5,725#9 33,072 155,719
Tax on pard* am* Inoorne ordy .................................................................... 36= 262.925 31,766 1",855 '20 '53
Tax an parftW examot hmme and abnu&e tax com;xitadon ........................................
2A97
57,303
Z364
31,057
'32 '94
i f M M.
3 S41
3 672
3 W8
3 521
.60
me subod to tax, but w th taxes rc:;X. -orW- ......................... :.... .......
,
,
,
,
*274
Both ftome su*d to tax and taxes from
nPutati. ............................. . ......
236,098 1,148,M
231,531 1,087,252 4,M 2D 698
No kxxxne subjeot to tax but whh WdWW tax for tax prefere. .............. .........
.59
'40 14.7M W:M
Both OdtftW tax for tax preferenoss and Inoome &*d to tax ................. . ......... 3M.5m -W J 7.M,ON .40 1 M,134 6,M,761 MW,704 I==
*EMWMM should be ueed wM caution becam offt amW] mm*w of sarros returns on~ It is baw.
,fricludes mobra" amount.
Von no tnctude tax from $PWW 1"M avera&19, muld* MCOW lo-"w am*M mwmftW ftftudon of truft recapture of prior"ar credit for purchase of Mw PIWW MiftneS, or Pertafty tax on premature
dftbu&m orawn ombftftm from $011-OMPIMM P&-MW PhM
ReturnswMankthespecWoonrPuM"firtedinbotim 2.
NOM-0" nm not 90 totM booause of murKfing.
71

72 Individual Returns/1977 * Tax Computation and-Tax Rates
Table 30.-All Retums: Computation of Taxable Income
[All"we estimates based on samoes-qnw" amwb are in thousands of dollars]
Nurnber Adjueted Ranked
deductone Unused! MD
bnOud
amount
TIM taw
Sim of a*ded Woss inoome of
rehm
.7035
Moome
Nurnber
of
Amount
Nurnber
of
Amount
Number
Of
mum
retums
retum$
(1) (2) M (4) (5) (6) M (8)
Totid ........................................................ MAU,640 1,168A92,225 ZUWA10 7%549,M0 310,102 5M,675 85,979" IMIA710
Under $5,000 ............................... : ....................... 23=635 49,618,146 231,171 469.622 228.805 395.692 22.657.760 56,9%,799
$5,OOD under $10,ODD .............................................. 19,34Z819 M660.976 1,441,210 2214631 43~W 70,404 19,308,643 140 5W 663
$10,000 under $15,000 ............................................. 142M2W 177,1".W7 3,Mj524 4AW:iii 17,738 20,337 14291,372 li~389:467
$15,000 under S20,0D0 ............................................. 11.404,973 198,020,323 4 540771 51J 579
8,187,73D 8,235 3,652 11,40Z572 189,90Z=
$2D,000 under $30.ODO ............................................. IZ120.754 291,941,493 7
18.759.9m 6,194 9,549 12.119,842 273,2D1,340
$30,000 under $50.000 .......................... 4,784.916 174,741,480 4,136.310 17,453,349 3,002 5,081 4,781,976 157,315,900
$50,00D or mom ................................ 1.419.337 124,365,771 1,336,845 18.669,954 2,748 4,961 1.417,518 105,787=
-
Exemoons
Tax" InCome
as dellned
Zero
bra"
Taxable hoome
as dabod!
Szo of a4atadl groes ha, under 1977, law amount under Pior law
Number
of
.
Amount
Number
Of
raw=
Amount. Number
of
returns
Amourd
Number
of
retums
Amount
(9) (10) (11) (12) (13) (14) (15) (16)
Taw .........................................................
Under $5.000 .......................................................
$5,000 under $10,000 ..............................................
$10,000 under $15,000 .............................................
$15,000 under $20,000 .............................................
$20,000 under $30,000 .............................................
$30,0DO under $50,000 ..........................
SM.000 or mom ................................
qnduda zero Wa&M amounL
NOTE. Detel may not add to total beCeuve of rowxlng.
215,176,997
36,338,842
4Z666,985
37,941,166
35,237,374
40,945,414
16,827,287
5.219,M
161'"Z748
27,254,132
3ZODD,239
28,455,875
26,428,031
30,709,06,
lZ62D.465
3,914,947
81,674,=
18.440,726
19=041
14,285,103 1
1.40ZO44
IZ115,763
4,761,564
1,417.f
93USMU
33,709,078
108,748,561
143,03 768
163,479 a"
24Z498
144,701 ~ 14
J01,8T7 08
! L
111,674AM
18,440,726
19=041
141M 1 103
1,402:044
12,115,763
4,781,564
1.417.392
20C167=
27,570,601
47,767,218
39,217,345
33,731,2D7
37,516,380
14,957,611
4,407259
6083AM
6,713,179
18,019,272
14,247,305
11,395,310
IZ112,787
4,778,898
1,416,813
733ADOM
6,138,477
60,981,343
1D4,736,423
129,748,437
2D4,SB2.202
129,743,703
97,470.250
tal gains, found it advantageous
to use the alternative-tax computation
method. This method involved
the application of a special capital
gains rate to the first $25,000
($12,500 for married persons filing
separately) of the taxable half of
net long-term capital gains in excess
of short-term capital losses,
with regular rates applied to the
remaining "taxable income" (a combined
amount comprising the remainder
of taxable capital gains and
income from all other sources, less
deductions). Under the maximum
tax computation method, a portion
of the income subject to tax was
taxed, not at the graduated rates
within the applicable tax rate
schedule, but at a special 50
percent rate. (All three types of
tax computation are discussed in
more detail below.)
Income subject to tax on
returns with the standard income
averaging tax computation method or
with tax on partially tax-exempt
income, however, was not the same
as taxable income. Because neither
of these two methods involved,
strictly speaking, a direct application
of a set of tax rates to an
amount of income subject to tax,
it was necessary to compute an
amount for the statistics in order
to "tit" the returns into the marginal
tax rate tables (tables 3.4-
3.9). The computation used for the
statistics started with "tax generated"
and worked backward from it
to obtain a hypothetical income
subject to tax. In other words,
income subject to tax was defined
as the amount of "taxable income"
which would have produced the same
tax had the regular tax computation
method been used. For returns with
the standard income averaging method,
the computed income subject
to tax was lower than the actual
amount since the tax was applied
to the end result of a'.complex set
of computations which determined
an "average" of the taxpayer's
current-year and prior-year incomes.
On returns with tax from
partially tax-exempt income, on the
other hand, income subject to tax
could have been either greater than
or less than taxable income, depending
on whether the taxpayer
used the maximum or alternative
methods as well and whether these
optional tax computation methods
resulted in a net tax savings to
the taxpayer, as shown in table
3.1. (Both of these types of tax
computation are discussed in more
detail below.)
Income subject to tax shown
in this report is not entirely
comparable with that shown in
previous reports since the total
amount inc&de,6 the zero bracket
amount. Under the provisions of
the Tax Reduction and Simplification
Act of 1977, the zero-bracket
amount actually represented the
first portion of income subject to
tax; it was, however, subject to a
zero percent tax rate and, therefore,
there was no tax generated
on this amount.
Table 3A provides a summary
of the types of tax computation
used by taxpayers. Of the $934.6
billion of income subject to tax
reported for 1977, all but $146.9
billion was reported on returns
for which the regular method of
tax computation uas the sole
method used.
Amount
Regular Method of Tax Computation
The "regular" method of tax
computation consisted of applying
one of four sets of graduated tax
rates to brackets of "taxable income."
These tax rates were specified
in the "tax rate schedule"
and incorporated into the "tax
tables." The set of rates used
depended upon the taxpayer's
marital status. For 1977, the
regular method of tax computation
was the sole method used on 77.6
million returns. Of these, however,
only 64.6 million had income
tax before credits (see tables 3A
and 3.1). This occurred because
the income subject to tax on those
returms with no income tax before
credits consisted entirely of the.
zero bracket amount and as such
was subject to the zero percent
rate.
Maximum Tax Computation
The Tax Reform Act of 1969
contained a provision, effective
beginning with Tax Year 1971,
which eased somewhat the tax
burden on those high-income
persons whose income consisted
largely of "personal service net
income" (defined below). This was
achieved by applying a maximum
rate of 50 percent to income from
personal service earnings, in contrast
to rates of up to 70 percent
which applied to other types of
income. Table 3.2 shows the computation
of the maximum tax, while
table 3.1 shows selected characteristics
of returns with the maximum
tax, including tax savings due to
the maximum tax.
J

Individual Returns/1977 . Tax Computation and Tax Rates
Table 3C.-All Rotuma: Computation of Various Tax Concepts, by Size of Adjusted Gross income
[All figures am estiniates band on sampk*-rnor" amounts we in diatmands of dogarl!)
stre at a4ated gross
Total .........................................................
Under $5,000 ........................................................
$5,000 under $10.000 ..............................................
$10,000 under $15,000 .............................................
$15,000 under SKODO .............................................
$2D,000 wider $30,000 .............................................
S30,0D0 wider $50,000 .............................................
$50,000 or more ...................................................
Size of a*aW Wm inoome
Total ......... I ...............................................
Under $5,000 .......................................................
$5,000 under $10,000 ..............................................
$10,000 under $15,ODO .............................................
$15,000 under $20,000 .............................................
$20,WD wider $3D.000 .............................................
$3D.000 under $50,000 .............................................
$50,ODO or more ...................................................
Size of a*Wed gross Inoome
Total .........................................................
Under $5,000 .......................................................
$5,000 UrKlOr $10,000 ..............................................
$10,000 wider $15,ODO .............................................
$15,000 under $20,000 .............................................
$2D,OOD under $30,WD .............................................
$30,000 under $W,000 .............................................
$50,000 or more ...................................................
Number
of
returns
(1)
8034A40
23,26ZS35
19,34Z819
14.2N,2M
11,404,973
IZ120,754
4,784,916
1,419,337
Adiusted
grM hoome
less
dercit
I,ISM9=
49,618.146
14Z66O,976
177.144,037
198,020=
291,941,493
174,741,480
124,365.771
Taxes from
"Clal comllutall"
Number
of
Amount
mum
(9)
241,739
7,791
59,410
39,834
54,252
41,124
27,277
IZO51
Additional tax for
tax Welerelim
Number
Of
mum
(17)
3",487
10,322
7,444
14,094
21,099
74,050
112.064
160,414
Afflount
(18)
M
(10)
1=$15
57,528
12,030
14,M
18,090
66,898
188,936
964MS
197"
3,899
59.995
18,181
18.353
13,993
25,097
W429
Tax from tv tables-
Number
Of
relums
(3)
65,78ZI67
5,192,W
16,741,724
14,159,221
11.386,928
WMM
4,778,015
1,416,436
Number
of
retm
(11)
Inoorne tv
before credW
6"W"
6,720,097
18,023,568
14,247,3D5
11,395,310
12,1 1 Z788
4,778,915
1,418,815
TOW inoome tox
Number
of
returns
(19)
UP1,1311
4,949,922
15,874,964
14,OK419
11,309,909
12,059.875
4,759,884
1,41ZI65
Amowrt
159,79W4
711,575
6,405,262
I&W173
2Z963,522
40,838,191
31,529,991
38.510,110
Amount
(4)
IGZMA94
67Z702
8,718,901
17,IK787
23,%2,741
41,526.158
3ZO95A6
38,817,069
Amount
(12)
171,111"
916,812
10,419,929
19.442,294
25,438.435
43,757,255
32,999,211
39,137.M
All offier taxes
Number
Of
returns
(21)
IFAS~M
1,415,734
1.683,798
1,375,016
1,093,898
1,159.948
72%M
449,018
Number
Of
mum
(6)
General to Cradl,
"Allu"
6,713,179
18.019,272
14,247,3D5
ll~M,310
1ZilZM
4,778,898
1.416,813
Number
of
returns
(13)
Amourd
(22)
TOW tax aeft
MA84AN
6,714,002
1%019,318
14,247,3D5
11,395,310
1ZIIZ787
4,TIBAN
1,416,814
4430"
288.-A
614.741
711,377
67Z978
&63,270
695.139
497,927
Amount
(6)
MAIM
240,211
1,641,034
2.227,327
Z057,341
Z217,104
878,778
282,234
Amount
(14)
13P7,761
262,766
2,026,697
2,617,W9
Z493.0D4
Z987,962
1,6511,156
IMZ168
Earned Inoorrie oredt used
to obet all ottw taxes
Number
of
Felt"
(23)
86404
373,076
291,478 -
(24)
105"
68.031
38,358
-
-
-
Number
of
raw=
M
To
611,683,564
6,713.179
18,019,272
14,247,3D5
11,395,310
IZIIZ787
4,778,M
1,416,813
Number
Of
returns
(15)
boom tax
after Croft
64^110
4,939,651
15,869,182
14.010,098
11,3D6,453
1ZO56,018
4.756,5W
1,407,879
Total tax llabft
Number
Of
returns
K171,145
5~849,M
18,506~!M
14,154,542
11,367,M
IZ101,218
4,775,466
1,416,419
'Shown hem for at rehons wim a tm whather dwtvW fmm die tax tables or Me tax rate sd*dLdm T?ft arnount was M of the "general tax ore&"
Eftw here for all returns wtth "tax generatecl," even though a majoft of do taxpqrers did not achuft tw4a to oompute Oft amount
,3hown here for all returns with a iax. whetter de&ved from ftto tables or the tax rate schadules. This arnount was beft reduction by the "general tax credit."
'Taxes from special 10-year averaging, nuftle recolent 10year everagira aommiulation dabibution of buft recamn of Mor--year, creM for pumlisse of new Ptx;lW residence. and penally tax on presnature distribulions or
contribudors from a seff-ern;*rM Pension PWL
-Tax
- Plus --taxasf.. W-W
NOTE: Detall may not add to total because of rounckq
"Personal service net income"
basically consisted of amounts
received as compensation for
personal service actually rendered,
such as salaries, wages, commis-
sions, and gains from sales of
property created by the taxpayer,
less certain expenses applicable
to that income. The Tax Reform
Act of 1976 specified that beginning
with Tax Year 1977, pensions,
annuities, and other deferred com-
pensation for personal services
rendered in the past could also be
included in personal service net
income. "Personal service taxable
income" was obtained by multiplying
taxable income by the ratio of
personal service net income to
adjusted gross income, and then
reducing the result (limited to no
more than the amount of taxable
income) by the "tax preference off-
set," which, for 1977, was equal to
the total amount of tax preferences
reportable on Form 4625 (,6ee "Addi-
tional Tax for Tax Preferences,"
discussed in this section for the
definition of tax preferences).
For 1976 and previous years, the
tax preference offset consisted of
the larger of (1) tax preferences
for the computation year in excess
of $30,000. or (2) the average of
_iax pre~erences in' excess of
$30,000 for the computation year
and the 4 preceding years.
That part of taxable income
which was not personal service
taxable income was "other taxable
income." Other taxable income, in
turn, consisted of "other taxable
income subject to regular rates"
and "other taxable income subject
to the capital gains rate." The
latter amount occurred whenever the
taxpayer elected a combination of
the maximum tax with the alterna-
tive tax. In such cases, the tax-
payer applied both the special 50
percent maximum rate to personal
service taxable income and the
special 50 percent capital gains
rate to the first $25,000 of the
taxable portion of the excess of
net long-term capital gain over
net short-term capital loss.
Table 3.2 divides the tax
generated on maximum tax returns
into four categories: that
generated at regular rates on
personal service taxable income
(at the rates of 0 through 50
percent); that generated at the
maximum rate on personal service
taxable income (50 percent); that
generated at regular rates on
other taxable income (rates over
50 percent and up to 70 percent);
and, for returns with the alter-
Amount
(16)
15DA"'M
654.046
8.393,M
1%825.285
22,M.432
40,769=
31,341,055
37,546,566
Amoulit
164,024,104
931,782
8#11,645
17,551,550
23,638,500
41,689,461
32=,130
39,OM.037
native tax on long-term capital
gains, that generated at the
capital gains rate (50 percent).
Alternative Tax Computation
This computation limited to
50 percent the tax on the first
$25,000 (first $12,500 for married
persons filing separately) of the
taxable half of the excess of net
lcng-term gain over net short-term
capital loss, so that the tax was,
in effect, 25 percent of the excess
net gain. (Because the alternative
tax was computed at no less than
50 percent, the computation was ad-
vantageous only to taxpayers whose
taxable income was large enough to
be taxed at rates higher than 50
percent under the regular tax com-
putation method.) Amounts in
excess of this $25,000 ($12,500)
base were taxed at the regular
rates. (See. o~Uo "Alternative
Tax" in section 6, Explamtion of
Terms.)
Table 3.3 shows capital gains
and losses for alternative tax com-
putation returns and table 3.1
shows selected characteristics of
returns with the alternative tax,
including tax savings due to the
alternative tax.
Amourlt
(8)
1?lj913,M
9IZ913
10,359,936
19,424,113
25,420,082
43,743,M
3Z974,113
39,079,303
73

74 Individual Returns/1977 is Tax Computation and Tax-Rates
Income Averaging
If a taxpayer's taxable income
for 1977 exceeded the average taxable
income for 1973-76 by onefifth
and this excess was $3,000 or
more, the taxpayer was eligible for
the income averaging tax computation
method. Under this computation,
a part of an unusually large
income in the current year was, in
effect, taxed at the lower rate
applicable to the first one-fifth
of such income. Taxpayers choosing
the income averaging tax computation
were not eligible for the
special rates applicable to longterm
capital gains under the alternative
computation or to personal
service income under the maximum
tax computation.
Table 3.1 compares the tax
liability of persons using the
income averaging computation to
the tax they would have incurred
had they used the regular computation.
Computation of Tax on Partially
Tax-Exempt Income
Prior to Tax Year 1977, a U.S.
citizen who had resided abroad for
510 days within an 18-month period
which also included the full tax
year of the taxpayer could exempt
$20,000 of foreign personal service
income from taxation. This
amount was raised to $25,000 if
the taxpayer remained abroad for
three years. The tax on the
remaining income was computed
without taking into account this
exempt income.
Under the procedure introduced
by the Tax Reform Act of 1976 and
postponed to Tax Year 1977 by the
Tax Reduction and Simplification
Act of 1977, the amount of foreign
personal service income which could
be exempted was reduced. The new
amount was $15,000 and did not
increase regardless of how long a
taxpayer remained abroad. However,
if the taxpayer worked for a charitable
organization, $20,000 could
be excluded. Foreign personal
service income included the same
types of income as personal service
income defined for purposes
of the maximu tax computation
above except that for any deferred
compensation to qualify, it had to
have been received by the taxpayer
by the last day of the taxable
year following the one in which it
was earned.
The tax on the non-exempt
income was also computed differently.
Basicilly, the taxpayer
first computed a tax on the full
amount of income, including the
tax-exempt amount, using either
the regular, maximum, or alternative
tax computation methods. The
taxpayer then computed the regular
tax on the tax-exempt income. The
difference between these two tax
figures was the tax on the nonexempt
income. This procedure
generally resulted in a tax which
was higher than the regular tax
would have been on the same amount
of taxable income. Therefore,
table 3.1 shows a negative amount
for tax savings on returns with tax
on partially tax-exempt income.
These rules, instituted by
the Tax Reform Act of 1Q76 and
postponed by the Tax Reduction and
Simplification Act of 197~, were
also postponed (until 1978) and
revised by the Foreign Earned
Income Act of'1978. However,
because this Act did not become
law until November 1978, no
attempt was made to revise or
amend the data for this report.-
Taxes From Special Computations
These represented the second
component of "income tax before
credits" (in addition to "tax
generated") and consisted of:
Table 3D.-Returris With General Tax Credit General Tax Credit by, I Type and by Size of Adjusted Gross Income
IM %wes ~- -st-stee bow on samples--money amounts are in Itiousands of dolknil
Size of a*mW gross Income
All returns with General tax crecht by Mce
general tax credit
Rehm with to" income creffl
Number General Number Adjusled
Of tax Of gross
returns Credit returns hoome
Exemptions
Ta)payer Delcenderl
exemptions exempborls
(2) (4) (5) (6) (7) (8)
TOW ......................................................... 6803,564 944,M 4707465 91"Oun 75~16 33,U7,342 k7711,15311 645^199
Under $5,000 ........................................................
$5,000 urldler $10,000 ....................
$10,000 under $15,000 ....................
* ...-1-**---1--
..........................
$15,000 under $20,000 .............................................
$20,000 wider $25,000 .............................................
6,713,179
18,019,272
14,247=
11,395,31 0
7,762,M
240,211
1,641,034
Z227=
Z057,341
1,417,225
815,842
10,0M.712
1DA4.137
10,066,838
7,159,281
Z926,81 9
74,952,287
120,520,367 -
175,015,433
159,709,290
615,842
10,648,562
14,880,11 2
17,638,375
13,487,870
-
553,256
4,193,396
9,2W.012
8,155,331
-
434,375
912,653
870M
4K509
1,226,090
43,407,468
84,37Z406
118,562,OW
lIZ460,437
$25,000 under $3D,000 .............................................. 4,349,788 799,879 3,056,049 107,973,930 7,597,14 1 4,683,641 320,874 78.630,660
$3D,000 wider $50,000 .............................................
$50,000 wider $100,000 .............................................
4,778,898
1,138,890
878,778
210,693
4,351,646
11.014,873
156,015,746
66,489,011
8,395,M5
1,937,436
5,201,005
1,224,692
474,758
210~293
119,460,562
52,241,619
$10D,000 under $200,000 ........................................... 224,691 41M 196,121 25.SK726 373,492 226,051 59,682 20,725,493
WAM under $600.ODD ...........................................
$500.000 wider $1,000,000 .........................................
46,257
5,2W
85M
958
41,566 1
41699
JJ~W703
3,125:059
77,837
8,5g8
39,162
3,644
17,040
2,436
9,2W.947
21409,188
$1,000.000 or more ................................................
.
1,769 323 1,601 3,2410%4 Z8861 1,152
stie of a*MW gross Inoom
General In credh by M*-Cablued
Tax"
Income,
ROWMS with
to" Income
Returns whh liersonall exemlyfjon as&
crem-OCinfinued EKOMPO-
Income
tax
before
Croft
Timable
Income
crea
Number
of
returns
Aosted
WOSS
Income
Ta)VW
exernpoons
I
Ex -
Dependerd lo:ir
ex"Oons
blindness
Tax"
Income,
Income
tax
before
creft
Personal
OX&TOM
as&
(9) (10) (11). (12) (13) (14) (15) (16) (17) (18)
Total ......................................................... 153,769PO 7,311p? 21,016,M WA%117 32A0,117 4722,645 4A22,M 81102JI311 1 Z,212A31
Under $5,000 .......................................................
$6.000 wider $10,000 ..............................................
$10,000 under $15,000 ...............................
190,307
7,639,435
16010.6211
24,201
883,332
1,610,445
6,097.337
8,01 5,5W
3083,168
23,428,921
59.510,872
48,004.685
6,201,791
13=.523
7,465,110
595,710
0,061.272
9.379,985
567,040
2,511,838
IM64"S
4,91Z387
17,573,875
20,354,017
722,712
Z778,711
3,431,768
216,010
777,M
610,882
$15,WD wider $20.000 ............................... 23,i76,413 '
.1,798,145 1:339,472 22,840,160 Z531,41 6 4,837,195 50.888 11,185,477 2,062,022 259,196
$M.WO wider 11251000 ............................................. 23,420,2W 1,287,760 603,718 13,388,039 1,159,989 Z530,W5 lZ888 7,411,055 1,463,510 129,485
60.00D under $3D.000 ............................................. 17,W91410 712.060 391,739 10,673,780 769,226 1.732,380 8,708 6,479,850 1,364,069 67.819
$30AW Under $50,000 .............................. I .............. 30,515,649 783,101 427,352 15,595M 841,081 1 A83,547 250 10=,140 2AW= 95,677
$50,000'UrKlOr $10D,000 ............................................ 18,W9,062 182,644 124,017 8,313ROI 244= 549,569 10 5.026 5,989,096 2,008, 91 04V
$100,000 wider $200,ODO ........................................... . 9,184.629 351M 20,570 3,741,545 50.305 128,483 1,232 2,886,264 1,239,338 6:514
WIODD under W.000 ........................................... 4,884401 71482 4,691 1,274.031 91198 1 21,023 404 985,141 494,647 1.072
$500,000 wider $1,000.ODO ......................................... 1,430, 1 'iji US 507 333,013 960
2.161 73 264,560 47=
112
$IAOO,ODO or mom ................................................ .608,706 2881 168 339X9[ Sol M5 45 237,766, 115OX9
34
q)m riot Incluft zwo braclast amourt
NOTE, Ded may not add to totall -, of rourift

(1) the "special averaging
ax" (from Form 4972), computed by
taxpayer who received a lump-sum
istribution from a qualified penion
or retirement plan;
(2) the "multiple recipient
pecial averaging tax" (from Form
544), computed by a taxpayer who
eceived a share of a single lumpum
distribution from a qualified
ension or retirement p lan;
(3) the tax on accumulation
distributions of trusts (from Form
4970), computed by a taxpayer who
received a distribution in the
current year which was based on
income accumulated by a trust in
prior years;
(4) the tax from recapture of
prior-year credit for purchase of a
new principal residence (from Form
5405), computed by a taxpayer who
had claimed the "new house credit"
for 1976, but failed to replace it
with another qualifying new house
within an 18-month period;
(5) the penalty tax from premature
or excess distributions
from a self-employed (Keogh)
retirement plan or trust.
Individual Returns/1977 o Tax Computation and Tax Rates
None of these taxes could be
reduced by the general tax credit,
although they were subject to
reduction by the other statutory
credits.
Tax Rates
A tax rate is the percentage
used to denote the rate at which
all or a portion of an individual's
income was taxed. More precisely,
a tax rate shows a relationship
between income tax before credits
and income subject to tax. Tables
.3.5 through 3.9 show the amount of
income subject to tax classified by
the rates at which it was taxed; in
other words, they show the income
on each return subdivided into the
amount taxed at each tax rate.
Table 3.4 classifies returns two
ways: in columns 10 to 12, a
return is classified by each rate
at which the individual was taxed;
in columns 1 to 9, however, it is
classified solely by the highest
(or marginal) rate at which the
individual was taxed. For Tax
Year 1977, the first portion of
income subject to tax, the zero
bracket amount, on all returns was
taxed at the new zero percent tax
rate, as'a result of the Tax
Reduction and Simiplification Act
of 1977. For those returns on
which income subject to tax
consisted entirely of the zero
bracket amount, the zero percent
rate was also the (highest)
marginal rate.
The examples shown in this
section illustrate how various
types of returns were "taxedn in
the marginal tax rate table (table
3.4). In examples 1, 5, and 6,
income is taxed at each rate up
through the marginal rate. In
examples 2, 3, and 4, which depict
returns with alternative, maximum,
and alterrative-maximum tax computations,
there are intermediate
rates at which no income is taxed.
These gaps occur at the points
where personal service income
would have been taxed had it not
been for the 50 percent maximum
rate on personal service income or
where long-term capital gains
would have been taxed had it not
been for the alternative 50
percent tax on capital gains.
Table 3E.-Returns With New Jobs or Work Incentive (WIN) Credits: Selected Sources of Income by Size of Adjusted Gross
Income
[All Nures am estimates based on samples-money amounts are in ftusands of dollars]
Size of adjusted gross income
Number
Of
Adjusted
gross
income
returns less
deW
Total work
Incentive
S_ 6
claimed
Total
Business and
Pofession riot
Farm net Rutneraftlip not
PW less Ion ww less loss prom less low
Number Number Number Number
of
returns
Amount of
rellons
Amount of
returns
Amount of
returns
ToW income tax
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Total .................................................... 42r4440 18,M742 691,815 251,024 6,481,017 391M _900 184me 4071M 369,M 4ADS.M
Under $10,000 ................................................. 23,319 197,292 7,411 15,381 81,000 5,421 -37,874 509 %391 got Z139
$10,000 under $20,000 ........................................ 98,370 1,485,693 65,291 56,021 528,107 6,656 23,405 38,788 286,479 69,237 62,450
$20,000 under $30,000 ........................................ 89,859 2,219,02 7 104,341 61,645 1,042,466 8,071 756 , 5,459 , 27 4053 43 -5 , 28ZI60 77,081 , 171,M
$30,000 under $50,000 ........................................ 104,865 4.076,684 171,594 64,275 1,740,890 8 1,464
901,772 97,621 539,080
$50,000 or more .............................................. 109,027 10,925,04 5 343,178 1 53,722 3,090,555 10,679 , -ZO14 67,163 2.772,052 106,335 3,221,009
___ - 1 - -
I
Size of adjusted gross boom
Number
Of
Adjusted
gross
IrWXM
returns
ddch
less
TOW
flowas cr
cl ai med
Business and
profession net
prom less loss
Returns with now jobs credit
Farm riot
mm less lose
PaMws* not
Prot less Ioss
Amount
TOW Income to
I
Number Number Amount Number Number
Of Amount of
of Amount of Amount
rellm
returns
returns
returns
(12) (13) (14) (15) (16) (17) (18) (10) (20) (21) (22)
TOW ....................................................
1%445,M SNA71 246,018 GA12M8 39,675 -7AD2 179,M 4,=114 346,M SP4,01
Under $10,000 ................................................. 427.4
190.64 7 7,301 14,463 78,761 6,421 --37,074 4,901 55,403 8,544 2,010
$1%000 under $MOOO ........................................ W.
1,400.71 0 64,6311 54,602 517,423 056 23,405 M456 281,271 %1198 54,214
$20,000 under $30,000 ........................................ 87 142 219
2,151,795 102,078 60, 1029,774 8,076 5,459 26, 278,883 7'4,427 170,Mg
$30,000 under $50,000 ........................................ I OZ333 3,978,614 170 60 63,221 1 1:727 223 1 8,754 1,470 45,076 1 895361 95,104 5M.245
$50,000 or more .............................................. 107,015 10,723.525 339: 1595
5ZW8 3,059:168 1 0,668 458 65,
687 Z742:197 104,325 3,154,166
Size of adjusted gross Income
Number
Of
rewms
Adjusted TOW
gross
work
Income
INS
dddt
Incenow
(WIN)
"am
claimed
Returns with work IMMM (VAN) credili
Business and
"Iesslon not Fan not Partrift"i not
Prom less loss Wa less Ioss "M less Ioss
Number Number Amount Number I Amount Number
01
room
I Amou nt of
felums
of
raw=
Total Income In
Of
mum
(23) (24) (25) (26) (27) (20) (29) (30) (31) (32) (33)
TOW .................................................... 1~m 688
11~144 1 4717 M -2,M 607 In'm 14,
U nder $ 10 , 000 ................................................. 898 -6,646
1 1
-2,240 - - -28
1-11
"2 737
-- 29
$10,000 under SM,000 ........................................ 5,190 86,708
754
1
DA95 - - -2,333 -6,2W
6,0117 8,237
$20,000 under $30,000 ........................................ 3,528 86,665 2.20 1,660 19,422 - - .1 *709 *6.810 3049 8,634
$30,000 under $50,000 ........................................ 31658 144,781 1,433 1,225 18,767
2,066 46,410 3:66 22.010
$50,000 or mom .............................................. 2.5131 264,032 3,682 958 42,894 -260 ..-2.799 1,831 45,203 2,%S 87,830
'Estimate should be uwd*ftcmtion because of ft small number of umple rot ma w-Phich M_ . .
-Identilles (a) ofte classes for which date were doWed because of the small number of samplaiatim, on~#" wwo buied and (b) oomikad fre*wida oramoums #0 include an daft ftm deated bom anodw *@ d"L
NOTE: DoW may nol add to total because of mundl%
Amourd
75

76
General Tax Credit
The general tax credit was
extended for Tax Year 1977 by the
Tax Reform Act of 1976 and revised
by the Tax Reduction and Simplification
Act of 1977. For Tax Year
1977, for all taxpayers except
married persons filing separate
returns, the general tax credit
equalled the larger of:
(1) the personal exemption
credit, equal to $35 multiplied by
the number of exemptions, including
those for age and blindness; or
(2) the taxable income credit,
equal to.2 percent of taxable income
(reduced by the appropriate
zero bracket amount), up to $180.
Married persons filing separately
could only use the personal
exemption method of computing this
credit.
Table 3D shows the number of
returns with each of these types
of the general tax credit.
New Jobs Credit
The "new jobs credit" was
first introduced for Tax Year 1977
by the Tax Reduction and Simplification
Act of 1977. It was designed
to encourage employers to
hire additional employees by allowing
a credit against tax for the
wages paid to the additional
employees. The new jobs credit
was in addition to the work incentive
(WIN) credit, in effect since
1971, which encouraged employers to
place individuals in on-the-job
training or employment through the
Work Incentive Prognam. Table 3E
provides selected data for returns
with either the new jobs or WIN
credits. More infornation on the
new jobs credit, including the
computation of the credit, can be
found in Statiztiaz o6 Income--
1M, Bu.6,Lne6,6 Income Tax Retwuu.
Earned Income Credit
This was a credit against
income tax for taxpayers with
adjusted gross income of less than
$8,000 and was equal to as much as
10 percent of the first $4,000 of
"earned income." To be eligible,
the taxpayer had to have provided
a home the entire taxable year for
either a child who was under 19
years of age or a full-time student,
or a dependent child (regardless
of age) who was disabled. The
computation of the earned income
credit, which is detailed in table
3.13, worked as follows:
(1) "Total earned income" was
computed by adding together salaries
and wages and self-employment
income (less self-employment
losses), and then subtracting any
amount exempted from taxation as a
disability pay exclusion. Selfemployment
income (net) was the
Individual Returns/1977 * Tax Computation and Tax Rates
. amount \ reported on Schedule SE for
the purpose of computing the selfemployment
tax and included either
net earnings from sole proprietorships
and partnerships or twothirds
of gross profits,
to $1,600.
limited
(2) If total earned income'
exceeded $8,000, the taxpayer was
not eligible for the earned income
credit, even if adjusted gross
income was less than $8,000. For
all remaining returns, a tentative
"earned income credit before phaseout"
was computed by taking 10 percent
of total earned income.
(3) The figure computed in (2)
above was first limited to $400.
Then, if either adjusted gross
income or total earned income
exceeded $4,000, the figure.was
further reduced, i.e., "phased
out," by 10 percent of the excess
of the larger of these two amounts
over $4,000. T he result of this
computation is * shown as "earned
income
total."
credit after phaseout,
Since the earned income
credit could result in a refund,
even taxpayers with little or no
tax liability could receive the
benefit of the full amount. 'For
the purpose of these statistics,
the following components of the
earned Income credit were distinguished:
(1) "Used to offset income
tax before credits." Computed on
a return-by-return basis, this was
the lesser of (a) earned income
credit after phaseout, or (b) income
tax before credits minus all
credits except the earned income
credit. If the former exceeded
the latter, income tax after
credits became zero, and the
return was classified
able for this report.
as nontax-
1
(2) "Used to offset all other
taxes." Computed for returns with
no income tax after credits (aftei,
the adjustment in (1) above, if
,any), it equalled the lesser of (a)
earned income credit after phaseout
minus earned income credit used to
offset income tax before credits,
or (b) the sum of all taxes (except
income tax after credits)
included in "total tax liability."
This amount was used to reduce
total tax liability; however, the
individual components of total tax
liability were not reduced.
(3) "Refundable portion."
Computed for returns with no "total
tax liability" (after the adjustment
in (2) above, if any), it
equalled the excess of earned
income credit after phaseout over
the amounts computed in (1) and
(2) above. This amount is included
in the amount for tax overpayment
shown in tables 3.18 and 3.19.
. The number of returns with the
earned income credit shown in this
report represents both taxpayers
who claimed the credit on their
returns as originally filed and
taxpayers who subsequently claimed
the credit after being notified by
the Internal Revenue Service during
the course of processing the
returns for revenue purposes that
they were apparently eligible to
receive it. For purposes of the
statistics, data for returns in
the latter category were obtained
from the Internal Revenue Service
Individual Master File to supplement
the data tabulated from those
taxpayers who claimed the credit on
their returns as originally filed
in order to present more accurate
information on the number of
returns and the amount of the
earned income credit for Tax Year
1977.
Child Care Credit
This was a credit against
income tax for taxpayers who had
paid for child or dependent care
during the year in order to be
gainfully employed. The credit
was equal to 20 percent of the
expenses eligible for the credit
in the current year. The
computation of the child care
credit, which is detailed in table
3.14, went as follows:
(1) "Maximum qualifying
expenses" were determined by the
number of qualifying individuals
in the household. The maximum
amounts were $2,000 for one
qualifying individual and $4,000
for two or more, limited in either
case to the actual-expenses incut-red
during the year.
(2) The maximum qualifying
expenses were subject to further
reduction by the "earned income
limitation." This was the amount
of earned income received by the
taxpayer or, in the case of a
joint return, the lesser of the
earned incomes of the two taxpayers.
"Expenses limited to
earned income" ;.as the lesser of
the maximum qualifying expenses or
.the earned income limitation.
(3) If that portion of the
expenses incurred in 1977 for
which payment was made in 1977 was
less than the "expenses limited to
earned income", then only the
amount for which payment had been
made was eligible for the credit
in 1977. The difference could be
carried over to 1978.
(4) If a taxpayer had
incurred child or dependent care
expenses which would have been
eligible for the credit in 1976
except for the fact that payment
was not made until 1977, and the
total expenses incurred in 1976
did not exceed the limitations in
1976, then those expenses paid in
1977 were eligible for the credit
for 1977.
I A
I
I

) Finally, the credit was
mputed " by adding together the
[76 0or and 1977 expenses eligible
the 1977 credit and multiying
the sum by 20 percent.
dditional Tax for Tax Preferences
Minimum Tax)
First introduced for 1970, the
~ rpose of the additional tax was
o make possible the taxation, to
=e extent, of amounts not taken
nto consideration in arriving at
axable income. These amounts
rere previously accorded special
reatment and were described in
he law as "tax preferences." The
ajor tax preference items were
apital gains (the net long-term
apital gains in excess of shorterm
capital losses) and the "itemzed
deduction tax preference."
or a detailed description of all
ax preferences,.60-e "Tax Prefrences"
f Terms.
in section 6, Explanation
For 1977, any married person
'iling separately with $5,000 or
ore of total tax preferences and
ny other person (including maried
persons filing jointly) with
10,000 or more of total tax preerences
had to file a Form 4625,
omputation of Minimum Tax.
owever, a portion of total tax
1ndividual Returns/1977 9 Tax Computation and Tax Rates
preferences was excludable in
arriving at tax preferences
subject to tax. For 1977, this
excludable portion was the larger
of the standard exclusion or the
exclusion due to taxes. The standard
exclusion was $10,000 ($5,000
for married persons filing separately).
The exclusion due to
taxes was one-half of the sum of
income tax after credits, tax from
recomputing prior-year investment
and work incentive (WIN) credits,
and the penalty tax on premature
redemption of individual retirement
bonds, less the special income
averaging tax, the tax on accumulation
distributions of trusts,
and penalty taxes on self-employed
pension plans.
For 3.977, the tentative tax on
tax preferences equalled 15 percent
of the tax preferences subject to
tax. The actual additional tax for
tax preferences equalled the tentative
tax reduced by:
(1) 15 percent of any 1977
business net operating loss which
the taxpayer could carry to a future
year (this amount to be paid
as a deferred minimum tax in the
year to which the net operating
loss was carried);
(2) "unused" portions of the
elderly, political contributions,
and child care tax credits (the
unused portion was the amount by
which these credits exceeded
income tax before credits reduced by
the general tax credit); and
(3) any tax based on tax
preferences from which the taxpayer
derived no benefit (this
occurred when the taxpayer had
more than enough deductions and
exemptions to offset adjusted
gross income).
The final step in arriving at
the current year's additional tax
for tax preferences was to add in
the "deferred minimum tax," based
on a net operating loss carryover
from a prior year.
Overpayment and Tax Due
Tables 3.17 through 3.20
classify taxpayers by whether they
ended the year with a tax overpayment
or a tax due at time of
filing. The data shown in these
tables reflect the effect of the
earned income credit for 1977
(i.e., the amount of tax overpayment
increased and the amount of
tax due decreased). Excluded from
these tables were returns with
neither a tax due nor a tax overpayment.
Generally, these were
returns with low income, no tax
liability, and no income tax
withheld.
77

78
Six examples
of returns with
different
methods of tax
computation
Example 1 - Joint Return with Income
Subject To Tax at Regular
Rates Onfy
DWVBUM of bWOM Subject to Tax:
$120.000 - Ad*W gross fton
-300 - Excess Iternized deductions
-1,500 - Exemption amount
$118,200 - ham suboct to tax
Dwlv*Uon of flegulaur Tam
lot $32M taxed at 0% .................. ........
NO $1,000 Wed at 14% ................................
$0
$140
Need $1,001) tax at 15% ............................ ; .....
Gic'. .
. $150
$12,000 taxed at 6D% .................................
N01 Nod M1001) taxed at 62% .................................
$7=
$9,300
$118,2M Income tax before credits ............... W,48D
Total credits............................ 4,000
Income tax after credits .............. ... $50.480
.Example 2 - Joint Return with Income
Subject to-Tax at Regular and
Alternative Rates
Derivation at Inown Subject to Tax:
112D.ODO - Adjusted gross income (including 1/2
. net W"rmcapltal gain of $%,WD)
4W - Excess Itemized cleduvOons
-1,5W - Exemption amount
$118,2M - hmne sAect to tax
$W,2DO - Ordmaq income, taxed rates
$251000 - Capital game taxed at trets"
$30,DDD - Capital gams taxed at negular rates
Deelvallore of Regular Tax an $63,= Ordinary Inmate:
let $3X taxed at 0% ..................................
Nod $1,001) taxed at 14% .................. $140
Nad $1,000 taxed at 15% ....... .................. $150
Next XWO taxed at 5D%. $4,000
Not 18,001) taxed at 53%.:-......* $4,240
Polvallon of Tax on 6155,9W of Capital Gairrv.
let $25.0W taxed at 5o% rate ........................... slz5W
Need AODD taxed at 6s% rate $1,740
Next $1ZWD taxed at 6D% rate ............. :--: .......... $7'M
Neel $15,001) taxed at 62% rate .......... ............. .119,300
Indhirldual RoWme/1977 * Tax Computation and Tax Rates
0-30P
$56,OM $30,740
Dertwation of Income Tax:
Regular tax .................. I ................ 1 ........... $22,300
Ahmalfire tax ......................................... $12.5M
Regular tax on capital games ~ ...... ................ ...... $18,240
kXxxne tax before credits.................................. K&O
Tow,credits .................. I........................ .... 4,000
Income tax Aft credits ................................... $49,040
Example 3-Joint Return with Income
Subject to Tax at Regular and Maximum
Rat"
Derivation at lincome Subject to Tax:
$96,000 - Personal SWAM ne! irlDome (h this exam0a,
salaries and wages. See but on Maximum
Tax COWAIIII-)
$24,000 - herest
$120.000 - kome
-M -="I- daductione
-1,50D - Exemptions
$118.2W - Total income subjW to tax
$94.560 - ftsonal sevice taxable mcome
M6,000
x $118,2W
$120.ODO
See W on Maximum Tax Com;xAlstion)
$W,2DO - Personal service W" Income taxed at
regular rates
in 360 - %IMW service taxable kwns Wed at
met= rate
$23,640 - Other taxable income taxed at regular
rates
Derivation of Regular Tax anMM of Per
Service Taxable I imne
tat $3,200 taxed at 0% .......... ....................... so
Next
taxed at 14% ................................. $140
filext " sl:O'DD taxed at 15% ................................. $150
etc ......
Nag $4,000 taxed at 48%
$1.9m
Next $8,000 taxed at 50% ............................. ............. ....... ... $4.001)
$55,2DO $18,060
Dortwathm of Tax at Maximum Raft on $39,360 of
Personal Service Taxable Income:
$39.36D taxed at 50% rate.................. .............. $19,680
Darlwadw of PAMular Taxon $=,640 of Other
Taxable Income:
Ist $8,640 taxed at 60%. ~ ................... : ............. S5,184
NeA $15,000 WW at 62% .......... ..................... 119M
$14,484
Destination of I bm. Tax
Regular tax on personal service WAW mccme ...........
Tax at maximum rate ...................................
Regular tax on other taxable incom- .................... -
$18~0613
$19,680
$14,464
Incoms tax before credits................................. $=4
Total craft ............................................. 4,001)
Inoome tax aft credits ................................... .$48.224
Example 4 - Joint Return with Regular
Tax, Maximum Tax and Alternative Tax
Dadvartiort of.Inconse Wiled to Tax:
$90WO - Personal WV" net inoome
1/2 sum net'longmterm capital pin
$120,000 - A*nW gross Income
,3W - Excess ft&TkW deductions
4,5W - ExWVUM amount
$11M - Told income subject to tax
SK650 - ftsonal service taxable Income
(MODO x slim)
$120,WD
$55,20D - P&wW service taxable income WW at
, regular rates
M460 - Personal service taxable income taxed at
.
I maximum rate
629,550 - GWW gains In-
$25,000 -Capital gains taxed at 50% rate
$4,55D - Capital gains Word at regular rates
Derivation of Requier Tax an $5S at PWM
Service Taxable I
tat SUM taxed at 0% ..................................
NW taxed at 14% .................................
Next S, 000 taxed at 5% .................................
etc ......
Next $4,000 Wed at 48% .................................. it,
Next $8,000 lared at 50% ................................. 64"
$55.200 118106C
Derivation of Tax at Usudinum Raft an $33,450 of
Personal So vim Taxable Inconw.
SA450 taxed at 50% rate................................. $16~M
of Tax on Capital Gahmlet
S25.ODD taxed at 5D% rate .................. SIZ500
NMdL$4,5W .L taxed at 62% rate................... : ......... SZ821
$29.560 1115~321
Dettvation of become Tarr
Regular tax on personal service lexatte income ............. 1118,06D
Tax at ma)XIMLIM rate ...................................... $16,725
Alternative tax............................................. SIZ500
Regular tax on capital gains ........................... ... VAM
blooms tax before creft ................................. $50,106
Total creft ............................................. -4,000
Income tax after credits .................................. $46,106
Example 6-Joint Return with Income
Averaging
Derivation of Income Subject to Tac
1112D.ODD - P4usted gross ft"
-WD - Excess lamtred deductions
-1,500 - Exerroon amount
$118,200 - 1977 kwm subo.ct to tax before Income
awneging
$103= - 1977 Income SUbOd to tax after Incorne
a-a"
DIChration of Regular Tax an $103,200 of fteccaus Subject
to Tax Aftser Incomes AveregbW
lot $3,200 taxed at 0% ..................... ............ $0
Next $1,000 taxed at 14% ................................ $140
Next $1.000 taxed at 15% ...... ..................... $150
etc ....
Next $1 ~,'000 taxed at 58% .................... ........... $6.960
Next 1112.0DO-taxed at W% .............................. $7=
$1032M Incon tax before onedift ............... . $4180
TOW credits ............................ 4,001)
Income tax after Croft ............ .... $41.180'
Example 6 - Joint ReWrn with Tax an
partiallyTax-Exempt Income
Derivational' ,, mSub)WtoT&c
$135,000 - Aoisted gross hoonie, lnck&q'
actodabie foreign wwnw serince hoorne
-15,000 - Tax-exenipt foregn Woonal service hxxne
$120,000
- Adjusted grow Income
-300 - Excess ftrVW deductions
-l,5W - Exwoon amount
$118,200 - InDOM SLqW to tax
Derivation of Tax an $118,Mof Income Subject
to Tax:
ist SM taxed at 22% ................................ 144
Next $4,000 taxed at 25%~ ............................... $I.OW
Next $4,000 tend at 28% ............................... $1,120
etc ......
Nod SK1,000 taxed at 62% ................................ $IZ400
Next 111O.ODD taxed at 64% .................. ............. $6,400
11118,21M Income tax before credits ............... ' $61,764
TOW credits ............................ -4,000
hicome tax at* credits ................. 857,764
J

22 gun A~:~ SSRCB Vi:~ 98990888 Azo zss4ams At~
AA A jr
A-A H§
~F
i RM iiii
... ....... ... .
i~
si In ffig HHH H
In
ic
r-
HUM
14 Ll
lit
lit 9 &
all
SL
ag e

Ic
F Ulk k
RAN WRIHIIIII
HIM
it . 1.

1§1 -1 -1 CH-0
Muff HIM ffl;ff
M
FaIR i F
lit FEW
0 ... ... : :
...... . ....... . ... .....
In
0
......
. CL ...... . =cL 3.
(a
a 81 K,1 1 a z0g :11:- 1 1 HUI
M
..... .....
..... ..... .
..... ..... z ..... .....
&
HUI
t 5:1 N9,
-1
HUM 30 1 1 f u- M.
g MV.3 W!4 E E§
:RdOw, 9 999"M a HIM 89 § Z-1
I I a I I ins I I ;I I I :T I :I I 1 11 1 8 HER
8
M IM
;% T @I
Mi. g
;2; -8 a MIR-
- 4C5 at:-,
B taNn~l UgH 9 Nf925 MH I I i
g NM lm a; 9 E 9
2 1 MCA
J-L, - - W:,~! IS
to -ad
VCR
t 9
H 2- H
M
M SL
V
ct
0,
SL
z
U ca
-4
R cr 14..
-,
V
-, AL
0% c
asCL -00 0I
0
coM

C-4
co
I I I I I I I I ITI 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 V119 19 R I TF[FH
MH I I I I I I I I I I I I I T-T-M
c%i
.F
. . .
IIHM5 5 ~ 9 ?
FfPlUg i V_ - E
.-r 94
1 1 FFFf-- I-TT-M
Fa§l§ HOH 9 11M 99F9 RUM I 9WHIR 3 F199199 a jM11 IRAs
.6.6
8-1 FHR HM d ~;.z
I
mou
F MH MH 1 9 cr,~ g x g F g Nj
ggggg dg6 if F
HIRY M92 R R Hie m ~;vz 4
U
MEN A -9999 991Kv,
. ..... ..... . .....
9c
. 30C d
z cEL
8
OE
5 N l ik 0
cc §§Rki
c;
§ .9 - § ,
mdal§ HUR
E
HEM i !kn UFFF:
.f V; zi If g.;-r
ZURR 9 FLi 191M gg6~: 1 2S M-UH
&I D I
4r-z?-rllRg
209M
C.
2 CL
E E
"E4?a
4 ;MM
Htgln,
9 "o :6 2. . lagEl
§ 't
oE
Iiin ink
cFi
= 9 2 9 H aIaa a I;aI ugg_Mz-
Ag
.... : IE too
S2
TL
E
: , : 0
: : CO
N-
'We
E
MU Ugg
UZZ255 §Hffl-~

CIF)
Go
e VIA 9 1
V
Yz RON, ";gMH V
z PHU? H; A F I C.9i Ri- . EON k .. . a 953M F §M99 F ? a s1j;.2 1 E 9 a 999 .66
a
ck P%
1-t
Mng 911 1 1
I ang 0 Funag Rm! k "m.~4
k
5;H
-171,( f
UM~Iz §1*1999
t 4cl a u ~HkEk Iq ""Im: ul
. 1 j e,64 sf$ x
--inot 9999 cG4 E r, P65"e
F H2 ~FM
6a Mt
I RUM 118311H
VMS
F CUIM11
.616
_. ;.!%
1 1 1 112 1 1 1 1 1 pvp: Rp: I ggpln
...
c4
I.2C
. ....... .
V ls~
I RUR! MAE:
I A&5§Z
HRU v
I I p-p IRV Ell HM~*
TL
NUI
W.7.W6 .66
so
a C
....
i i i 1
i i i E
:
....
: : : :
E al E
......
: : : : :
_Ift
Eo
: : : : : : :
......
: Ef
. . ..... ..... ... .
. ......
Ej HU I r:
Ak
' It
E
it
OE
: IN
3r.
OE
1111
I
:
dH
V
lgg .1
:.; asa §Z.- H
cc
.2 a a HIM 391 .9211- m- Eg gUl" l
Z;ag 3a
a s
c aiii &U -

n
A
z M9F MEN ME NERO%; ~:Imgj 111912 t, 99Z RR DMI IRE:
q-.~ V~W-q
gNil 4 Al at is R 9 A 4 giqv~lv 9 9 9
q'Qc4 vt -: IR Iq q q
Q 1~ T SM
cq q
V T v
uz-.~ mig iminq 4~~Rl F Roan ;!~gRp
-r!Z ,: 99999 4 VM!Hl
a919 $ 9 10 R SRO RMN g s fcf,: I I~EN.i-: 5 1 HUR Q-99919§ ~:Iz F;f RRII HW:
EMIR 5 R9999
InAl
v 9 1 1"M rz A F, g! 1:g ~&j I I I I I I I lvmp
pip isem;
R I Un wiP ef
N RUIRE PHI Hiollim
Iz of-rd-r-W RUH Zpfrge V!,
CHU q . . . H; - ~ p99 . F UkU R9F9 49195k 9URF 3 HUM D ~12111 §99":
p- a
R! 99c; K
AH
- :
cc
IL . ...... ...
i o AM
A121
'im tilt i
A cc 1 . in ggg~ ... - ,
fill Hill
lasag Hal tz grall IBM! a r. lift.991. Hai m
9 Mal

It
. . . . . . . . . . . . . . . . . . .
Hill 1 -1 ItIg 4-6:10
1m;!
0
- --p
:,p
A !3VjA
a -V-~ E
- -i
isAisgs
5559
---i
'? PEE
.
. . . . . . . . . . . .
-S -TV ME
~s is
d Is a
HIM
-
i
t Ago
lans E ug - , § i
SL
SL
in
On M UH
fiff
Y dig
hb
isMs?
al
5.M
S. 4.4 SL
4:3 :4 ~Pgfl
0 CPR !2'
MIX
wsi H
t i ol S:1M21 ~ We -- I
a

A3
i-SM19 '9
Min 9192MIll
b9di
1013
all
.2 1 p Rgant-
§ --- -- 11 ----M HI
us
E 2 99`7
gj,-§ HIP:
. . . . . . . . . .
41S N 12S
M"SH MUM
-.EM HAM t
at
zl:~!-I-P:4 Ei N
199 11MM
§'9'9'9 9 6 Vg,
1,41 V 12A 110, 8 3
9 E N
9 ni -HIC" i
1!11;gg gpfl --m
§ -§-§-§§§ -- ---- HH
i
§
MHA
ISIS is
E v -1:9, -1 -11 A
§
913N--:
....
ggi-iii ims-i
A
SL
IN

87
Individual Returns/1977 - Tax Computation and Tax Rates
Table .3.3-Returns With Net Gain From Sales of Capital Assets: Gains and Losses by Type, by Size of Adjusted Gross Income,
and by Selected Types of Tax Computation-Continued
[AD figures am eswnates based on sarriples--rnonalr amounts am in thoullands of dollars]_
Returns with atternelfive tax computation, -4Cordinued
L'*W' 'Wiled gains -4 losses
exce Natlo7= . capitad gain in
term capital INS
Sin of aditisted gross; Income Not caphal loss
COW loss ca"Yover
Not
Amount subject to tax atafter
carryover
- -- COW Nontaxable Regular rates-
Number Of
Amount
Number Of
gain after
TOW
hall 50 percent rate
Anoint carryover
Number retumaof
returns returns
Amount
(30) (31) (32) (33) (34) (35) (36) (37) (38) (39)
Toted ............................................ 29.381 189,606 14,364 123,129 5,087,910 4.898,304 2,449,152 1.405,843 20,528 1,043,3D9
Under $5,000 ..........................................
$5,000 wider $10,ODO .................................
$10.000 under $15,000 ................................
$15,000 under $20,ODO ................................
$20,000 under $25,DDO ................................
$25,000 under $3D,000 ................................
-
*201
-
-
-1.615
'248
-
*302
-
-
*152
-4
-
-
-
-
-
-
-
-
700
1,155
1,118
950
1.399
-
398
1,155
1,118
798
1,395
-
199
578
559
399
697
-
199
578
559
399
697
-
-
-
-
-
-
-
-
-
-
-
$30,000 wider $50,000 ................................
$50,ODO under $100,000 ...............................
$100,ODO under $2DO,WO ..............................
SM.000 under $500,000 ..............................
$500,000 under $1,000.ODD ............................
*1,366
11.029
10,583
3,574
643
*537
46,216
72,045
47369
10:144
'20
6,768
5,699
1,554
249
'45
33,468
49,963
24148
7:017
18,677
I'DBO.880
1,632,575
11161522 4r12:678
18,140
1,034,664
1,560,530
1,104153
452:5341
9,070
517.332
780,265
552077
226:2671
9,070
497,596
605,264
237715
38:312
-
Z788
10,018
5,982
1,201
-
19,736
175,001
314,361
187,955
$1,000,000 or more ...................................
.
222 12,838 74 736,2571 723,419
1
361,709
1
15,453 539 346.256
Income subject to tW
Size of adjusted gross Income Taxable At maximum
income, At
rate on
regular personal
rates service
income
At 0
Rehims with attentative tax compulatiow -Continued
rate
Number Of
returns
Income tax
before credits
Amount
Number returnsof
Capital gains
tax preference
Amount
Additional tax for
tax preferences
Number Of
returns
(40) (41) (42) (43) (44) (45) (46) (47) (48) (49)
Total ............................................ 23,891,521 18,157.135 3,274,596 1,405,843 355,268 10,141,853 62,891 2,061,109 35,639 159,865
Under $6,000 .......................................... - - - - - - - - - -
KODO under $10,ODO ................................. 125,482 72,964 - 199 20.661 12,172 - - - -
$10,000 under $15.000 ................................ 365,961 275,265 - 578 33.686 53,812 - - - -
$15,0010 under $20,000 ................................ 457,3D6 373,410 - 559 36,a5l 76,982 - - - -
$20,ODO under $25,000 ................................ 400,288 336,5BO - 399 21,146 72,172 - - - -
$25,ODD under $30,000 ................................ 585,030 505,814 - 697 24,537 113,488 - - - -
$30.000 under M,ODO ................................ 1,093,095 978,326 - 9,070 34,661 268,811 '48 *16
$50,000 under $1 00,ODO ............................... 6,663,245 5,682,959 277,028 497,596 100,858 2,454,888 20,645 314,353 15.Z -.23.7;;
$100,000 under $2W,000 .............................. 7,489.180 5.335,027 1,339,682 605,264 67,418 3,300,510 28,142 648.417 15.636 43.089
SM,000 under $500,000 .............................. 4,174,585 2,732,513 1,148,121 237715 18299 2,2013 676 1 540 5209: 773 5565 38045
$500,000 under $1.000,000 ............................ 1,229,334 886,226 297,697 38:312 2:335 735:652 1:815 21 591 1:532 19:728
$1,000,00D or more ................................... 1,308,017 1,078.051 212.068 15.453 816 849,690 701 357 959 736 35,285
.
Tsurnate should be used with caution because of the small number of sample returns on which it is based.
Identifies (a) size classes for which date were deleted because of the small number of sample retwns on which they were based and (b) combined frequencies or amounts that include the data thus deleted from another size class.
~lnofudes return with no tax =Mutation; these returns wers excluded from all subsequent columns.
Includes returns with Income averaging and retums with ma)dmurn tax on personal service income not also hemng an aftemailve tax.
-includes zero bracket amount.
-includes those, reftans with maximurn tax on pwsonal service income also having an alternative tax computation.
Capital gains taxed at upper rates.
NOTE: Detail may not add to total because of rounding.
Amount

Be lndhddual Returns/1977 *Tax Computation and Tax Rates
8
I--§j
~:,z Fang a01x : REso In 1gy 55 - IRFE- i
u HIN
ks4wq v -tux
PH-
2§4
US a R R
te 12 P O
9 m2a "t ~ V- R
ROU 49E~
..... 1%
unik MIME AH-H HERE HRU Mag §RvSgtRIe
MI~K MaH 9609 gpgs~! .6sixRg '6-:11- g-Le-1
Inc n -t
-t !qQ -t q q g;, q q R g~'t cl ~,q ~ 4n w~ !,q -t g ul R q g .tr .~ 4q
tt~,Vtt RvRI-R $I M&vS4 slAmm ;;_13
MVFj§ RE
Aa MAHnul g RuRk
;,
UFUH
_M 0 16 2 51 5 90999-Mg aM
g
at9 E 41- 9918 on
111919 W999a
- - - - XRV-19 99M & F 9 1 HHA I SiI11q Wk%.'
gggg
?~H* MAlz Gfelill Rve-l Wig 'R AS3
R 1-9 Rq wo gwk ukz~ Run OUR MUR 5?1M=:
Sisk A RR
ft MM 4aRL - R a F MR- L
S.,
9 RAMa UM-Z AREV.9 IMF a SI RVUR MH REHM
__ a
9 4 I M 151:0 1 1
1;
S
p 1 0 R Q 4 1 19 % M
, -
q
St 99H R vmk upm om pg v g mu tm lsu pmu§ §um -;!
ifkili MIR HIS HIN HUI WNI
2
Uh
-d :q6&f5f--;
A
I HUE- U152H 9~9'.41 MUF MR! K EY mRza Rgm-; Afni-M.
1z ~~ARM2 c4lz
c6
-OR
:4. rtf
§IFI§
H 6699'J
CE:&Z gf~-Sf"6-z cizxg! "-zgy i~-
3
gig vi-of
..... ..... ..... Ail
.. .....
.
.....
.......
.......
r; 1E
11111 11111 [lilt 1111luillR
pme;;V. viessit ;mSIMS L~

4
A
cc
Indhildual Retums/1977 * Tax Computation and Tax Rates
I VPkk 19 1 1 Iklj~ I ]KI 12t 1z: 1 1!6 '!2 14
cq
1091~ 9
Pill 9
IF IF31 IRI M Ile 1 112 EVR~t§ I 125 1 1 M I
cd
4 - - - ci
M
§ -
qq q Lq I
A MINIS 229 111 e W 4 io ts
4:3! cq R cq c! fp at q cl c! q
--W- - . .
R F.
c6
0 Bpi P
3 9 R OUR
cL
gg -2 C~~
R ikip 10101 1 f I I Ig, I FEM 1 1§41 R I k I IRA
ce
L;6 0 gg 144
I
I- I IkIE I I!Q I I I I
ak -
R
I Rig 14 1 t:A I
I I MRS I I I
gz q. I ` A
a
. ..... A-1 ..... ... .......
I
- I
Ld

90 IndIvIdual Retume/1977 o Tax Computation and Tax Rates
CC
.
181
cq d .r -.6 f
-:'-t Wn q I I I crt 1'-t I I q 1 1-7 171 1 lp 1 1 1.'! 1 Iqq
I g I I In It IR I I Igw I I r1t 1 -7 1 -!c4 1 r.1 "I cq
~g I ERR
Ipg2 fg! IZ I IP IA I I!q I is I;; I I§ 15-gg I. I lpf 5 1 1 ;z I PER I iij
m 1 141 IR 1XI Ig -&R ; I I I "RN I IQ III's IMM
I
I I q! 141
'R
I I§ 15i I I N I I
.... ..... ..... ...
q I Iii 111 In EEOF I I 13ki ;2 11 IR I FF I 41's
14
I- I I X IRE:; I
6 cd
..... ..... ..... ..
I INN I I 1 :2 1 1 m8§

z
cil
FL-
cc
Individual Retums/1977 * Tax Computaflon and Tax Rates
I- I:; I ME I H
*A ~i.,
C4 R gi
Iq '-t cq
~~;f ga 4 Z4 'l al
44 k U
I-V '4- d ;.L
a A c ~ - ~q cq
c j ~ rl
z-
C6~j r-r
!2 te iq rz te -91
cq,-,
r~g sin pig? es v7WOWSM
'q r-t cR Q~ "N c! c4 '-t ~ tQ '-t 4:~ --t r-% r-: c~ cqq
V8 PAX 4SI Fix R I;~ sn Sim
F 191-1 99 'A, I UZI I X-g I p e I I;zt -:;t I MR gg I OR ~p I R- jm~ak:;;~
T= A 61 is 99 ! 9 V grg Sj..f
q; 1 ~4
IR 1% ~p A
;&
Ig 1*11 1
m;: Ig I
9a
'R
H I IRE
gof
n
Sipf nvi a si vi-
I
..... .....
~c6 w
;ia , R F
G2 92 2;; ai d ! 91
E.E!I
Hug, 5_1 L Kg- it ~;:fgf
c5i RI I
Is V
... ..... .. A:
[RE ;z§ I 4E ~?- IF- ;!Vr~.~05
c6 cLq
m
lilt 11111 11111111111111111111 11111111111111111
I- I- V I- V__;AR X=4MR ;;pjAA29 SaRezv w4siss ;;DStRM 3IMSGIN E338601SR
91

lndMdual Retums/1977 Tax Computaflon an~ Tax . - Rafts
MUR IHI I a X1
a
1 law I I
it
of a[ gg g-g
~f95
St P? St _3 14 4_
nsi Sig gmv
NIPE V, IH I 1 018- I I I
A
I I I Ig-
I § ';-:§ I Z~~
clrgsu H
clfc%r
909 !k . 9 15.
- - R
~6_m
99 Rag 5~12:ig
c's
11999 1 49 1 1 US I I ~t 15 Ig Ig I I I p;:Pe I I I I I Isla I Ej I
It F2 _N -
c1f
'Via
FMH
~ Le
RR
IG: GE sill
199, 1 R31 II
IR Ile k[Al I R I §'GR I I I E I I I v I Izz" I PV
a
- ~k
6; - - W99-
- 9
9 q
IV IS I
"i ct
on 5 T 9 a
Pig, I
12 R "FRI 9 i 9 9
gig RR tR
I"! P Z It 9 9 m c%T
mp I I I Iti 1 15
~t
9
.F
gn
%I
9 91: gig
. ..... ..... . ..... ..... ...
x4mem ;;Pj;ggg mme:;v 104888 =MRS 9. 98 . z o -.19s

11A
jib
X
Individual Rotuma/1977 * Tax Computellon and Tax Rates
?!UNA URU%
~~,,Riro F HiFiRR Pit-
r
lkrq
I OR all RRM 9141gig
4im
ARURR
NZORR@
Fig-
UR ~~UWO UEV
xF2jx Eli
-C'L
e -
UR~A§
121n C- sn; CA
Igng Via, REM RUR
3 50m pulp
F go t-- $3 z
ARHAR Z§RRH F EM-12
-m!C61"W FOO"t aRM
153; C6 I i~ ---
HAPU RZFWRE FUUM
"Ron H-Flf:f~i
R Mltcli
6,-6 M~s SOB !?s 1QS$3-9.
MIN
RRR,51,0
tffs Out SUMN zax-
ink HRUR qkn5p
~R FEFA -
M5999 91-
_
lit
§11 Isain
1119
;; ;;;;;;a 9
A
.9
V; le A
Wpm Ria
IZM. RIM&
ffI- Ff9f9 mlz~
1 PER MUR MmRj ck
Milk FIRIEW15 UkRkik
-e- C-T
Urin
Fj
FUM'M ARRUR
RUII~fi %Rk 551k
FzeFzrj
5MR!
;;r.;;Ssd H
119111 IBM jj§8gjR
x Z 271EMS3 r. a
93

94 Individual Retums/1977 9 Tax Computation and -Tax Rates
I
IN Im 9USH TOHER
jig
jig
i lls
.6991:9f_~ ,
I SUM HVIH I
a mzg HZP~
ci --L~2U3
cli c6 Vra EL 19
""M
-1kci
9P?-;-a
He a
a U909 ao'
HEM ;XI a 1?1 9
R11 §W-
§
.-
A
o a m ml
t FS- A-
~: -
,P~ MM GUM
R HBO G!P
Ila
ig
cS ZAH M"13
qp~
:q agga A
U A 9 1 X
a Rf sigg 094
It I rf~ Is I 1 1
g g SUM:
q ...
c6
2 1
1 1 HE
~i
I I q I- ~I I I ES-1 R"
MUM :NPggg ffaldl pijid HIM JIM
Mlowe- a"N1396 MHUZ, ldonar aaarklga HIM- w
I
I

I
14 H
Its
I lia
I RS
CS
5
1z
IM-4 w"IMS
I I I was gsk~'V
nk ;z
P% .
!"
rc6 Vgfkd
M .-A
IIIIII III I Ile X;zq-a~:
III m I ill I
Individual Rotuma/1977 Tax Computation and Tax Rates
q !RE R
IME'S
§§ HHH § 8
HUM ;M-Ugg IgINI
...
p1jil
HIM iffli
§
arr.
~fg
1011
.
-
s
I lia
Ig
jig
FZ
iq
c%L
gSc2
4 VP
...... . M5
§§§§§§ d - -9
plill HIM Hilt
§ud Ilk, -
!?~
flanat; tia"M WINK-
95

96
:6
4c
& V
IfidivIdual Rotuma/1977 * Tax Computedon and Tax Rates
t its
I DOW& G I I I I I I I I I I I I I jv~~Rg
Ila
sw A g
E g
3M
15
111
HIM It'
m R
It s
-A
HHH
:M2 -g
it HIM 11,10
A 11111
§§§§§ HHH Hink §
CL
q
MIN

ilia
I lia
A
Ila
E
a
SZ9 "IMM UP-
IM:: RMP OR9
g.f
12 1 WH RUHR ARM-rt
-
tell H2110 lkmwe:~
I I
IK~;M MUOR Iska.4
aa I(JUR UP-
U
:M! Malg 9199,6
4
REUM
SP-
V,
clml g, 000 Kgrzgas m-W
I
qc';=::
vc~RXU REVSKI RUM
'OW-a -ac6-6, -z
Individual Rotuma/1977 * Tax Compul;oon and Tax.- Rates
I I I An SMR MIRE
a I MR,& Ra R RU; XWOM
1 ?AWz HIM R_qSq::xq§
mm. R_ e
4 rMu
c2
nan Fkniz Rall
.1M F
HIM It Hd
JuRd IffM U §
911IM; ;;"353 affild
IIIIII Ila
rM "Hal
ZOE
--
I lot! lal I
. I I I I I I I I
aml
ja
k
4 1 AMU
;i~i~ S3
A
jqjk V9__
I I I I I I ik I 5ilIx fit, V ~e Rt:.
r
Ix VkzVg; F.
HIP
g i p
51UHIZ
IRV-
~!S§Ijjx
-lag 1909
Mai xp4p,
is Rs mkmq= sa rz
tell klifiu
-HR! IfIF:w
it MM Wit
. atilt
mil
111111. 1 , 912112
97

I rzt 512891st
Individual 'Retuffii/I 97T;qVTak,',, Cam' ticif ina 'TAk Rates
I ' l I ISIR ppoRp!§11, Rag-
. . . . . . . . . . . . . .
Walk
§
kp-
960--~
:
NO& Riml
MIX-
5f
gig
pitif HIM JIM
§F~j
all
Ong-
R11 191221 i t
p1jif It it 111H.
HIM 1§119 ---

if's
If's,
a
IndMdual Rotuma/1977 - Tax ConqxjWdon mW Tax Rates
a 111111 111111 filial
X 11 11 11 11 1 1 1 1 11 101
fill 11 11111 1 11 'A P-
plill HIM HIM,
1111119 1916161011111,111,
99

100
E
0
c
E
1
jib.
6
RHO RFM::i~
90-2
Al R~:. F X-4e14 4F
a
01 'St"i-- - -
IRAMee-A
FUN
galas
-9 lez if5d 9 A Si V, -
PSH
Individual Retums/19.77;,. Tax Computation and Tax Rates
SiM 'SP
R v
"UH 81383 9::M9 S;~ - . MRIX12-
99QF 1FMOSc4 t, -
HM5
FRA I
ROME
as": apt.
grist
MW nm§ aumgg
999 §§,5M aRSM
pow.;
§dH - .§
dcr!~! MW .
AH
;jdair
111111 HIM HHU
MM ~-J-d §§ Ml
Altair' . Zaa~
459
If 'a'
t ills,
A' a
St ~p-M§§j ~RRG;MF.
dzwr-;&
rk q
cli MMH
a
A E Rk Et §t al
"RE §99M ?2j~
99
112VII
I I 1 1-:9 a A EMU
rZ~K: I.: ~f
I 9H;&
ZA;eg ck .
....
.
A§
§§
t: V
-pal
ORR
MIA HIM It
a
HM
R5E
RUM -M. ail
r
S ar"

4
A
It s
P
IRS
Individual Returns/1977 - Tax Computation and Tax Rates
Ci Cli
W6~
I I I I I I I I . I I " 5
S1 ig
~ : c6
I I I I mg I I I I IRE RpAsm
g - i
92
-i
~cq
PHU
!g Iq
IS I I I I I I I I I E E tomwz; I I I I I I I I 1 &41-*;;
-gspv
SM99 H?P9
alit i I HIM it tit
HRUR
ud
Rk §
B
Ila
P,pa
ARE-:!
8110SEF
HUN § - M
1112 1
RUN 1
§111711 HIM 1011t,
I a §
HHH
~"`6,99
101 .

102
1
12 I
A
la
I A
la
I I r, i
IV
.1 I
I
4 1
I S
I A
la
I Z I
I A
Is
I
a
a
a
9
E
9
I
I I I'l I I
Individual Returns/1977 -. Tax C.omoutagon'and'Tax Rates
1 111111 111111 11.12:Siox
9
I
Pun
I I I I I I I I I I 1 1 1 p1pe
a I I 1 1-1 1 1 1 1 1 1 1 1911IRS;;
a
a
ff

z
jib
AM'
lndhddual Retume./1977 a Irax Computation .and Tax Rates.
19UH HMO 9RIsse-
.S
icq
Riga UIO~UU P§viF-S
` -
tff 15i M=gg-- P
6 JRXS§
~~NR ROP
H__
a- RMU, NOW ZARRES
'MMS" ARRAu
k-
MIA6!
HURE FOUR
kq4kkk pulp Rgpl-vs
SUM M&Aff-91i M':
aa
liffil
HIM it'
1-151 Hill"-
I jigs
B
v
-All
I lls
F
MUR MpR
:!-
ggHlm r';'oe-
9GF-
Uk ~XPH Dof
in Hit,
Hal
Hun
:M-iggg
qR&OFv
litill Wit
azlarlgg HIM;
103

104 Indhridual Retuins/1977 e.Tax"Compiftflon and Taii-Rates
r4
c6
HAS
Il a
Is
~i 1 1 5i I! [.-I rz
I I I I I WUM MUsi
Div
a E
te
A IN
a
99
.
I I I I U I 19! 1j .
i I 15pap,
Vi
Isf --pan
aslo W ! isl- 94 ufvFli
.
lifib
§
c:;
plan H
j;! W~rv;;91
Ke
.. ...... .....
RUH § -V
Will, I mot
HUH §§Rkg
a
11MIM9

Ms
Ilig'
FZ
III 111 111111
Indhridual Rotuma/1977 o Tax Computation and Tax Rates
51 Rug
Run
c6
;P-ggg 611121
HIM
A
Ila
a
HAS
111 111 111111 Megrzgg
NMI ;N!.eggg ggliq
g plill HIM jifli
§§ HHH H --ii-ii
HIM
105

106
g
In-dividual RIiItulms/19711. - Tax,Computaflon -and .Tax Rates
. .
Z V,
I I THU?
ov
Wit
nuil
I I I I 19Alm n

Jim g
Ila
I lls
Individual Rotuma/1977 Tax Compuftflon and Tax Rafts 107
Jar-

-108 IndhrIdual RoWine/1977 Tax CoMpotqtiil~.pnd Tax Rates
jib
Its
-4
N
'IN Sig
ORM GRIC! 01499F -RUN
-mv mm-- uAm
HEM NMI Mgsm
:gg.6gig ggggaa .6.;.z
ERMA HUM RRIIII
%c.2V
MIEN Mimp grzIp;
g Axiuv ?p-RR qgpE
I SII-maq - -6
R av elk vkqla~ anqu
= q -R qk Njs;qg UP-
-MM ~FE:JEIE
Egg ilaRIN K ilkl
mpq Ongl gElezz
5
-R
1999i !99111
9.6 Pt Let
Lc;
REZ17H MEN
I~v - "
!gjp!
4 -uggk4 4.a-r--
A HIRE vf-~wt
"in
Jill
NUN H
rv~-U 611 Id
1
its
FZ
a I I
-
12Uigg§ F-J*"
Rk zkfEIR FS-51H.
Ily REV159 MUM
-FaSH P!"
I UH
--
44RZ X E P149
V2 ARMEN- 569-:,4
'fal OWN 959,6-~
~az Rum upu
HBO P
LHE HEM ISFE141
Pug mR,44
a ie Rim
mmum ..... ERRVE? . .
IMUS
U919 HIM ~--'HM
5f.;,z
--,~gvf Was 0
Tog Aum
11%iM EMERA MR-R
ufg;~;fg-:
wo 4 Van-
ptiji
HIM fl,
Sulf iZ aimmug HIM-
,
E

its
Jill
Z
Indlvldual Retums/1977 * Tax Computation and Tax -Ratos
Illa-MA I
-S, le
I I I Ian 9ARM
gee-
HeR RUM
zf2.;.e
A
cj
I I is its I I~i- kRaxal
,z
z
I 1 1-1 Its I IR
RZ cu RUM xp. ; ~
9H
c~:!;Mk &OUR
MRU FOU"
1~t cl z 't r~
~1%4 3A A RV,
1111i
HIM It
jud
HUM; ;;ZZ4v"§fl FIE;
11
I r, F2 Q;:E
I
I
§;:
cq
RPM
caz
:-_
pow
gg~ff-
. ...... . Ha
§
'§§ HHU
MURI Mg
4vid
g1jig
it
- HIM 11
luall 1141-01RUR
109

ilo
I fig'
HAS
IndMdual Retums/1 977 * Tax Computation, and Tax. Rates
a I I I I I I I 1 116§5!11.
Sici9F
a
SIP,
111111 11111 1 1 HOVE
a ~1-
fill 11 11 if I I
fill I 1 111111
elFsf-- I" ri A
egg;
P
HERON
991-M
V. 111916 1.9114
y1jit HIM I IIII
-01!
A
11,
1.51
Il a
&
ITI 111 11 1 1-11 1 ls~§§
.
r-I
1:1.1 H I III I.I: IJJO~P-
. .. .1 "
1.1 1 1 1. 1 1 1 1 1 1
I'l I I I I H
I I I I I I I I I 1 1.1 lpz-~k
I fill I
glgi-
q-1
;;dgw"
lea-ar.511 591 1z;
Rijill HIM, it"'
a
iia
jj§§§j UIM HgjjR

gig 161 9
-
11111
El
fai
MIA
MIA
a
a
ROMA Mul RIS: ~uy§
11CV959 AFA099 UP I I HIM
IV
919901 OV.
CIMI: wgc6
UP9
R OURREF UK'N AIF IMF
Igg
SUM y!9;fvf$~1z lisff
MR911 alum for- gpu 53
go Row
PHU WROP MW
1MM ZUSK% Hr%99 C
X MUR HN U4
456i Id ROW 9-90':
i Hug
eci-e-7p
P
lndhddual Returns/1977 o Tax Computagon and Tax Rates
~;Z§H EMU nve: I I URRE
FEROP
BROk
a,F.; ~Z.6.;"fg
;N~ W-vi
HIM 'ovil '11-o- I'Moll
Rum
Iggli a 12-'m MCI
nuil S Him
HUN Hkffl '&§§§
1 Mir* a.fg
I hill
.11111
MIA
Jo
a
Iff
2.9
FXHM W:: ~evp
sf
MUR RUM 199: 4.%FFjq -12
~;de
U9 UP
PMW U~: I I I I S-§~A
19
gig
UMI RE
F -ARM 129fi,
e ~ ~i
T
kri Cq
r
RV EU 6
X SIP
cq
I,: I
UM RUN M4
RIM
ig
~Wsr-,
lot
;;MF F ARM
1 k1F
g~51pf - r. - fr .-
;cj
Eu Rum M;:
rz
Am
c4
-I FT -RA ~
a - T
NOR Hnful 11r. 11121
U ... mHu
oflib
§ HH9J§ §§RU[
lulke Reda g
cr.;
max Sa ;;rrr.9

. .112 Indhddual Returns/1977 oTax Comptdifflon and -Tax hates
MIA
mill
mill
MIA
a l l
R U
9HIN RUS `q
._,Jgzp6d zacr ZZ
RU 1 H SHUE OPP 1 1 PRUG
c.2i '99 ;..Zt;1k§_ P. E.
&RIZI
r Vey,:- .6
11R E
.6
AMR Is,-- 91RW Rlw;;2* 1 -1 39~,Rq
p
tag
A Wff_
H
c6
c6
X-
42 qV8
lp e-,-H 9 u & VHIR 1 1 HH5
HHEN pVp: V~Rmx
A P99 I __19p 99F4112k i5 RF~ I I I HERZ
-a kUl k i 111HR Rik I
I I ce
"In
I I gs
:1 9-;. 9 ~f WEE P T!" ~ F.
OR Him
FP2.: I s? ~,4
HUNP T
crc4 .1f.4.6-e
1
fill
41 § 11 ;5
mot HIM I
a
d §§§ § H
jk§fl
MIA
MIA
F
cr
;C: I I
,. F
cF_
I toil OPOUVEH: I
I F;R
pq
me -
FURVI, Pk .1 :~!
c4
A NUU c2
Wu ff: ~
6sj
s;9p::j!q, t::-
Cr_
OV-1
5.
-gig
USE
A-1
VU!
12 13 4PH 9-1991igg-7 99
. . . . . . . . . . .
1HP
fit, WIN,
lum ill
gk~fl HIM WH

3
0
z
I
U)
Individual Returns/1977 - Tax Computation and Tax Rates
m: RRN§~R peRl
WE RUN! RR-RR
g gpin R-Fin SUP: M99
-:..r c%1w;
kill 9 H'
-
0 McMP ENV
CL~
9
Ak
HIM §
all
I
ccr
113

T QT 48;z!
Af
e I'm En
S-W
9i v . 1-g !3seisr. !J-ps--
XN
PON 51" g
zi -~!. P. ~
I = I.; I :-*
ASA :-Pf- N;;
F81=M Mcs I i M
I MEE E§99 9
f is zi
-a-kPs W.iI II I
E 9
SmA-2f
vins
Jill HUR f !III 111r, I
..... . ..... ..
9-s-0 M s 12i
M
3
Biggs gqw:g
Jill Hir I
831
=A
lins 3sigg
"Jill It I
wg- at - M,-,o 8,§,-V I f I
PAM H
s E~A'S'E V 'IUV, -;-5 E ...
- 9, 1
- - --- i
r,
=3-49 H~G P.
8 FS
Ws'- t -.~-'P-
--=
'o-PNP T-:~p
g Lt 'xsr-. ME ii§ g MH Ht.,41 t
"-Ig EMA
Mph
995,
i Hit-
.2.8;s;
Q'-t :.
~v
19 1
X; i-t VI
-9
Z-~-g
P-" :,4! 99~4si
9919-5i om Ana
0? rM
Ho
i
I
M
s
3
fig
-re
a
CL
2
CL
x
so
, 0
0

MIA
PH 10H . F Iis~:199
-figi f * *
I I: I I I ;-;Egg
99F~ FRISH 9 1 IMF-. ~§§Nm T I I: I I I
FUR qFRI s mI v 99 Ulu
fr-
3 11~- I Fogg
.
9 VF
c1L c%L It-L
F
2;2 Ig I
4
RUR11 41RP F i ~pn 10
a I RUE 199H HUE
vpmsg F4Rq~g I VMS
E 2. i5`
p
@4 cq
f I
upp
--mg-
nam VEVR g aF" T ts
ci - -r
ltr cli ;:wAg
't
V~:v
.r-7
Ix

HIM M-;-2-21~
WIN
I.-Piligg pnavmg gur,31
-8j,-§ CHU P
111115
829, N T i MEL
Nigs f
v
9;;s
21 ut A -2 ~-2 Vt -1 W. --S. 0 12 --.i;5 at
9:3
;.g ian -gi1
E Z-A
- ,
-9:-U 7MUO - it-RE" p 1 '-'4b-5 A- - -1 tl'O:2
~~
HAMM R ?- 2 1 1 AM:= aing -Tal
91 MIS
V VEMS
ME al 2,;W~ n- ~82;-s 12-3- 2. WO"'M
J. S. sls-s~!JXTR S--- 1 !2.®R AM-, 9 2. -2 9
E "S EI MHM go A5 9 9 -1 1 PD,3:9, i2of ii g
Uel upu"" z . r~
i~5 ; -:
A,
~i 1 H,
a
-2! HE A 1-8018
t
G :_ v4 2 T M-Ul I
a
aaIt-- :4Yf la-- I I
i~Wco XvJL
zi
z -gain
I I
bg
-;z rR-A V Van Mul I
LzatleupwU ponpVqpul
53
sig 'R UTI-:
SL
SL
90

iq Ri g!
Individual Returns/1977 * Tax Computation and Tax Rates
1 -k RE R lm2l imGkk gkLw g
UM; 2 S; 9899
'z .e_ M .1 % S 099 P RAU
Mg
RUN qx'!~V- sg- X MRAM -q"~ a90'k ~96V Pi
?H_9;zI 9 ~;Zk WAH =449: I k M-9
I rzsr'~:?' VHAI 9 9 F -2 ~Tl E a 1 899 HUH U99: E I pin
I-MA E M§34" z I I 14=1 '~:RHR
z j 4
V jo T REW _
I a
cV ~ ~ 'r c' -7
I :_Mag BUM@ MV: a
C4c6c6'6 ~iLde'K- :Cr 'z
FIMR. lk _M-
R;kR A~2
FL- -HER; 8f_z1:OF9E
V :-MM
INimp ?P SUR VUSHE HGN: V
P.:i!i i!iHe -: "n"
Hun § §
-Regll 191K
":L6 'S'.; _1
~F. &!:I Lap
'i
V _
FFS
IMS 'e ct;
IT!
_: 1 nq
RXERR FIVE:
G 1!
- - Rum 4--94mv 11 9RI 9 a W,
N
9
A
OU!i
4, izi-_
HUN
:NMggg d ftliq -a
pilit HIM It jjj~t HIM JIMb
ff
!5 21 1~1159
99H 1"'" HIM NE "Ing
RN ; ; - Dagg" MI air.
117

lie' Individual Returns/1977 - Tax Computation and Ta'x*:Rates
Table 3.13-Returne With Earned Income Credit: Earned Income by Type and Credit Before and After Phaseout, by Size of
Adjusted Gross Income
[All figures are estimates based on serriples-money amounts us in thousands of dollars)
Number ot returns Adjustedr Total Earned income
Sde of Rdjusted gr= Income Total
joint
returns
Heads of
households
returns
I
Income
gmss
less
deficit
Salaries and wages
Number of
, returns
Amount
(1) (2) (3) (4) (5) (6) (7)
Total ................................................................................................................. S,626,938 Z858,601 Z493,349 25,889,379 26,156,503 W 3,155 24,221,746
No djusted income ............................................................................ I .....................
$1 un(ler 8 S2. r..
$2,000 under $4,6(k)--.' ........ * ...................... * ............. * .................. ......... *-'- .........
43,702
732, 090
1,261,005
42.663
263 , 688
- 567,411
981
388, 214
-615,044
-551.686
877450
3.778:415
.117,001
912176
3,706:661
16,573
673 . 756
1
49,020
892 028
159115
S4.ODO under $6,ODO ............................ : ..........................................................................
$6,000 wider $8,000 .......................................................................................................
650,473
11:939,668
&18,778
.1,146,061
750,649
738,461
8,308.897
13.476,304
8,159,458
13,261.207
1:536:382 1.
1.827,329 1
.
3,458,688
7,502,632
12,319,377
Size of adjusted gross; income
Eamed incoma-Continued Earned income crack
Self-employment I
income (net)
Disability income
exclusion Before
After
phaseout
Number of
returns
Amount
Number of
returns
Amount
phaseout -
Total
(8) (9) (10) (11) (12) (13)
Total ............................................... 4 ................................................................................ 937,408 Z005,454 '16,669 '70,697 Z613,136 1,126,555
No adjusted r . MODMe ............................................................................................. ................... 41.269 67,980 - - it.
7,705
$1 under S2,
102.727 54,917 -7,102 '34,769 90,863 88375
$2,000 under $4,66~ ..... . . ....... .. .... .. .. .. .......... .. . ........ .. .. .. .... . ...... 182,793 262,772 -2,846 .14,799 370,136 363:555
$4,000 under $6,000 ..................................................................................................................... 1 247.71 656825 - 815.183 - 469.255
$6,000 UrKkff $8,000 ..................................................................................................................... 262,859 -
1
962:9591 -6,921
- 21,129 1,325,269 197.664
Earned income credit-Continued
After phaseout--Confinued
Size of adjusted gross income Used to offset income
tax before credits
Used to offset -
all other taxes
Refundable portion
.
Number Of
returns Amount
Numberr Of
returns
Amount
Number Of
returns
AmDurd
(14) (15) (16) (17) (18) (19)
Total ............................................................................................................................... 1,670,991 145,581 664,564 106,389 4,3",004 V41,5115
No adjusted , gr income ................................................................................................................ - 40,742 5,393 33,464 2,312
$1 under $2 .............. I .......................................................................................................... 80,266 8,158 726.483 80.217
$2,000 under $4,000 .....................................................................................................................
.4 ' 848 '403 153,237 29,652 1,252,811 333,501
$4,000 VKW $6,000 ................................................................................................ 453,551 50976 208920 4 ~,2321 1,454,987 1 372,047
$6,000 under $8,000 ................................................................................................ 1 1,212,592 94:202, 181:3891 1 66,9541
876,2591 86,507
Earned income credit-
Continued
After phaseout-
Continued
Size of adjusted gross Income Returns with
..Mod wholly refundable
income credit
Income tax befo
credits ro
Number of
Amount
Number of
Amount
Number of
returns returns returns
Income tax'after
credits
Amount
(20) (21) (22) (23) (24) (25)
Total ....... ....................................................................................................................... 3~327,2110 757,991 Z470,765 579,685 974,899 202,498
No adjusted gross income ................................................................................................................ 2,960 Soo
$1 wider $2,000 ........................................................................................................................... 651,824 75,915
SZODO under $4,000 ..................................................................................................................... 1,103,914 318,607 81,259 1.946 *473 -7
$4,000 under $6,ODO .......................................
999,203 1 2929231 739,1621 110796 72576 6.824
$6,000 under $8,000 ....................................... * :: , ::: " :: " : ... :: ' : ... . . ... ...........................
-- ...... ..... 569,309 70:0471 1,658,341 1 466 9" 901:850 195.667
1
*Estimate should be used with caution because of the small number of sample returns on which It Is baW.
NOTE: Detall may not add to total because of rounding.

Individual Returns/1977 - Tax Computation and Tax Rates
Table 3.14-Returne With Child Care Expenses: Expenses, Limitations, and Credit, by Size of Adjusted Gross Income
[M ftures are estimates based on swoe*-money amouft we In ftunds of dollars
Size of adjusted gross hcorne Number
Of
returns
Total .........................................................
Under $5,000 .......................................................
$5,000 under $10,000 ..............................................
$10.000 under $15,000 .............................................
$15,000 under $20,000 .............................................
$20,000 under S25,0DO .............................................
$25,OOD under $30,ODO .............................................
$3D,000 under $50,ODO .............................................
$50,000 under $100,0M ............................................
$100,000 under $200,ODO ...........................................
$200,000 under S500,00D ...........................................
$500.000 under $1,000,000 .........................................
$1,000,000 or more ................................................
Size of adjusted gross Income
(1)
2,926,669
20,013
346,401
566,798
663,594
612,302
371,613
304,127
37.644
3,699
407
41
20
Total .........................................................................
under $5,000 .......................................................................
$5,000 under $10,000 ..............................................................
$10,000 under $15,000 .............................................................
SMODO urder $20,000 .............................................................
$20,ODO under S25,DOO .............................................................
S25,ODO under $30,000 .............................................................
$30,000 under $50,ODO .............................................................
$60,000 under SIDO,000 ............................................................
$100,000 under $200,WD ...........................................................
$200,ODO under $500,DOD ...........................................................
S500,ODO under $1,ODO,000 .........................................................
$1,000,01DO or more ................................................................
TOW
TOW
expenses
(2)
2,746,041
27,275
293.805
469.933
544,159
548,379
409,307
370,449
71,265
9,715
1.384
241
128
Number
of
mum
(3)
2,WA,007
20,013
346,401
566,798
661,663
612,302
370,016
304,003
37,644
3,699
407
41
2D
Total
expenses
(4)
2,727,622
26,648
292.045
468,412
540,740
545,314
404,577
367,194
71,223
9,715
1,384
241
128
Expenses incurred in 1977-Continued
Expenses deferred
unit 1978-
Number
of
returns
(11)
K821
*578
-4,577
11,018
14,681
11,3B4
-5,619
6,101
848
-6
..9
Amount
(12)
24,081
'27
-2,005
1,035
7,577
3,057
-5,042
4,701
625
.1
..If
Ihfttlon
Number of Maximum
J= qualffying
oxP~
(5)
Expenses elo -ble
for 1977 credit
Number
Of
returns
(13)
Z890,256
16,001
342,569
565,754
652,440
606,188
365,719
3DO,032
37,404
3,699
394
37
19
4,379,M
34,136
464.295
833,502
970.652
939,395
585,807
480,873
63,386
6,813
823
69
32
Amount
(14)
2^413
9,878
289,634
461,146
625,212
539,077
388,215
352,459
60,287
7,461
903
95
47
Expenses Incurred In 1977
(6)
U66,0114
17,227
291,863
466,680
538,667
543.437
398,914
359.551
61,841
7,622
932
112
48
Number
of
returns
M
Earned Income,
2,91OA79
16,057
346,330
566.334
657,801
611.653
367,565
303,2W
37,515
3,699
402
38
19
1976 expenses e0gible
for 1977 croO
Number
of
returns
(15)
27AM
*473
-3,M6
-2,617
7,521
-6,122
-4,544
Z61 0
*150 -
TOW
expenses
(16)
18,419
'627
-1.760
-1,520
3,419
-3,066
-4,730
3,255
*42 -
Earned Income [Imitation
Amount
(8)
214",%0
46,956
Z107,007
3,534,061
4,124,441
4.588,598
3,197,963
3,471,909
627,199
100,653
14,635
6,745
9,394
Expenses limited
to earned income-
Number
of
returns
(9)
Z910,679
16,D57
346,330
566,334
657,801
611,653
367.565
303,266
37,515
3,699
402
38
19
Allowable child a
credit for 1977
.:Estimate should be used with caution became of the email number of sample returns on which it Is based.
Idenliffln (a) size classes for which date were deleted because of the small number of sample returns on which#" were be and (b) combined frequencles or amounts that Include the data thin deleted from another site class.
Includes expenses Incurred In 1976, but paid In 1977. as wall as expenses Incurred In 1977, but paid In 1978.
$2,000 on returns with one qualltong irKWIdual. $4.ODO on return& with two or more quallMng lruff%riduals, limited to actual expenses Incurred.
-Inth case of Mnt returns, the lesser of the husband's or the wifes earned Income.
The=r of maximum qual"ng expenses (column 6) or owned Income (column 8).
-Eypenses Incurred In 1977 out paid In 1978.
Expenses Incurred In 1976, but paid In 1977.
NOTE: Detail may not add to total because of tounding.
Number
Of
returns
(17)
2.910,142
16,001
346,376
566,437
658,468
611,222
368,418
301,654
37,419
3,699
394
37
19
TOW
allowable
expenses
(18)
2452JW
10,W5
291,394
462.666
528,631
542,142
392,945
355,714
60,330
7,461
903
95
47
119
Amount
(10)
OK494
9.9D5
291,639
46ZI81
532.789
542,133
393,257
357,160
6D,912
7,462
910
99
47
Child
care
credh
(19)
621,276
665
52,175
91,338
105,420
108,251
78,542
71,113
12,064
1,492
180
199

mligg
8
lut
R1111 Wit lults.
1-10
..... .... ..... ...... . ..... ...... .
t
SC.= 8~=p
4
z:
J. J-~,
HER SE, Mg9 a
is-jzp~! Pig. A
ma 1*1f
O?rp,-,6
lw~'s s T Ng t
25
91 M99 I . ---
SHE -301 .8 S a
ur.- Mf--- I
!2
5
2. z
1
v-g --g T -s -r. -P,
89M
rIj
Mrs . I E 11 t -9 1
9 s CHUM 9 E 8 9 9 pl-C2 § ZOJ E TOiIs
i A n- t NHE8
Di
H.&CE NEW, 9 WN 9
;~XJM M. J . - 4 ~
It— M24 WE- t-&MN I
P jai
I
lax
11 - a
F
U)
CCL
CL (D
4
Ca
-4
0 ro
038 0
3 0
Ci
V c
0

1
Una OEM
ro aN I I SSE - "t,:
a ~Ikpnkl 3999?
r - JZ.
5 Iq A 1 .5 1 a
z
- . ~t . . --t . ;i
AVIER
EMU HAST
FUM Ia ~: ON 8- A I I If I Imp: MAR
R WEAR 4RM
cr
N""--
9 Uggg~ RM I c
34
g-TrE 9 HUI
9UP
I m
L, I a
~
HM
F HUH i"89125P
E F HISa 9
lea;& SMa!2v FJ FJ
RMS
55r8
Lt. Lv
MH A
cr
fill fill
R Ug
faaall RUN
cS
till -
fillb
.1
1, ; Iju gkii§
HIL
HMI WAS
-VA I I
[a-Full
lilt
I, inu ;a;

is
HrM
HIM
MAR rum 8 MIR EVER
q UHR RUM A F IR I HAP& MEE
RUM
Mz g .eg
9 ?-.IFA
PRU
HAM P9W
,7.e.dKdd JI 'A HFUR
z . . -7
-
E'b a
AU
VER995 UM 1 21 gma
A 9 P5
_FF-0 I s
'
2as
RUM R Me's A R
9 dof&-- 9 g R
a avs M11 4 RUSH pI ZIp IRS11
V
1,1 ta
Fav-
MH ggig
C1111 I lilt, j t j lit,
ME,
He
§
§RWRg
0Z91116
Hal- 9111--

I
Ez
Individual Returns/1977 * Tax Computation and Tax Rates
~j c4
N
R'ZtNigg Kfflggg~ 4 2 w _ 1 -VR
F
iiaR;
R2 sq; cwi
cli
H_ H
- - -c"t - - - - - - - mm.,
- - - - - - 2 SH - - - - - - - - .8.
c1F _~~rclrclflzld 16~6cs rl:~'T..7.6.;
_r
CIL
~Fc6
- _V-4 --- v ~7;g s
- -- -- - - - S.-
.2MR'~_ sf
IMM. 8
_GH 2Q P Ell—
ml 'R8 . . . . . . . .. . . . . . . R. 4!~ . . G
-
.
,-,2 ci -., "N M-P :; t .2-: 9 2-192
fj
qmu . .~ H-4-z .
f.8 F 2~ -I-
!69 MEAO t
. R gM R§R i -
WG"~~ F'"HA 9 9 21 1 A H jzv"- MP~22tsg a;s S2
. R_~ % n . . . . . . ?%c:t--: clc%L E
Rum MR
:.S. m af -Xc4-~Fwf P-:c6mcx;gr
§~V: I gk~!-E
F MIRE. gunk . - . . . An§~R .4 . 5 ~kx§kk -Xxk~"k at 4§ . Q . Rs~
SWR RW S-_ 99019 9c=
:A 12e9 1 -394":
;- .4't
I Figgg i R q- A a U 5f5i ~;z . W959 ina
f "_:Wr: 'za0 ; _:clie.;
;
Pl eF sEli-
fc:;'d'6
9 VIM M11H WE: § F ~F F mm ia -S R mn: ;sk ma?
'ed.
- Eggg- - qOqg5 sf-g rz _~ a -8218%9 's -3 Z4-: -
e-
1616 L~R LK e i e F z
: "1, . - . ~ ~ z
HM
~ d tsF . . r _r
;;ang -.mR;!x 11~ unRk ck . I . 5. D.; . g. E . § . RE lang-M. k a kzs . : Hg?ks
.
Pat qn FIA 4 1 ORGEU5, IS: 'k ON
0 HHH §
OUR ;ftElg MUM - :ftEF!~fg
.
;
Wj flIj -IS' 142i E§
3"IM
Id
H
H a
M Bfg%4'
§§ §§
kiii.
A
_5 mg g ZU, U a-- b -.a"
I
123

I
124 indhirldual Rotuma/1977 *TaxComputadgn and Tax.Rates
102
CA
~;:GAR: a qRRVV
MUM Wit",
~z
.F -
"cq MaRk 1 n q 02RUE RRUAR
a UR p_
!
2
5trdFz.':k rl .-t~
V W Hisl e 6
- - ------ xv I M X MEN i H10
-
-
UU
&MEG
ct
12
99zICZ! q MUM,; HRR-"~ zaku:
O cEf Rnig 999 q.; "t-kU Pig'
TF-r
G
tn
Fvr:
q Ir I
V
-52 211
A
I I onkt~:: Sam, RE MR!
Z Ld
-t _N
Wvr.
R91-
~::-
§R
I R_ PE
A 'Mi IF 9 Ee H98fl: A URH
wg~z'wg
....... ...... .
N'~ffgla 1911
ceg
;;_;;. 9
ilfafe- -milagaRl
.,Lag
jjj~l miniiiii
Ad ~j4m
jusang.
c'r

g -6 -4
H HU
Wil l ! kII IHill lik"Ill,
Vizi W
Him PHP
...... ... .. ...... . ...... ...... .......
HSU A-zjgf i g S -81
xjejg.-s t P-W
-2E F k-~ Z'I l9w
I HU- N
zi 8 ~RM 9 Vw ~ g
PS
--82 9S
Sij
tg P;
81 i;. iG :28-5
r,Ha'9 AtIUSZE W -8 9 9 99 U-1;z- ~:i- 19 18 E, MM rst!
-WIV a-g
T-=j;;s 2.!
~5: S; .4c; rs
fa-lVE 4nis 9 8" -9 1 8-1 9 A -3 0.
9
Eg T----g
is T
S.P:-
IM-
D9 9 t. E E A ~2n EM-Sem
P
J.
t, 8-1
sat septl )m.L pus uopetndwoo xsjL o I.M/sLunIOU lOnplAlPUI
-8at
r.
z
g

126 -lndWv_ldUsj- Returns/I 977_ * Tax Computatlo and Tax Rates
ppig? a gfg qm-n- zmg~.,M- q- lun-g U-24-i- ~gggfgg gqggg.~g a pm-w
-
Ut--~ w'k ci a ,4? g
pm~-R.
9 Mek ~q? 9 He ~ E PEN 3.9 A RERR~ 'a
'i Pq
Hg-:
igi--i cLqvi
RRHM, ;~MN--z a";§ E § RE 22 9 9§-M~
~:ggg,:;,f gg -~gcq-:
8-
gcg-.igz-z
1-% HUE:
gzggcgg; g gs~:gsfg
a n -:!8--H HIM §RM
- -
2
- - -9 - El--
~g;Z2§:
~kz a ~~
'ii cl -
24
--
5
g gg
- A"~2- P, 4-M82P
c4
R. 9 2 Sk
A R "-He ~ - SE . E Liqqq .4 .1 . .... .... . SM2: ... . 9 FUH
-v;z
v
M
I -- ~g 2 R X R ggg":,g
----- -- 2 Sl gcg-zg~;
-, c4 ~2!2
- - - - - - - - - - - - - - - -
a
2
fggggf
A fS 2
1 AHHI~ F
`tc;t
- - - - - - - - - - -
--gigig
v &Im- ERA Kk IiISMST. ie f= A,
T--- Qcjcq-:~f~4 :q ------ c4
W991 RE9M~I"-- R F2 E 9 9- 9 -11 E:I; 1-1i Z-,'
- - - - - - - - - F.6
.4
Um a a;2Rz;-'l I "Zto- gfgg~ir
4
. . . . . .
"I
cZ -c4.X'I
--I R. 'S Si V~
. g
~ ggg a . . . . . . .
c2
gq l *fl
n
ER - -
R-- . .t M~,ig
:;M; 1-M 11"
.
. . 2qN iV a Mffls
OHM R 2 R E E ER 9 ~-;;z
E
:.6~ff I-e~6~;cq.~
udc,
gggk. .. ' . '
1
.
...... : . §§ §8§8§§ ..... §-8H - -§ :
6,t - -91§ --
-
E RZ.-f -~ 2 ,
8 wf-sf
'2-F . -H
2
'
E
:f .
-;, B; -- --,% aa_--g
':
~ -r
r, 8 8f "
r,
- as 2 E tS
4t VI 8~~' '-F V, E § rf E
g " . . . . 'S , . . . E S
MM
95. 51111 . - ------ %
h
I

H
ME 1ING isms".-
gill lilt 0" 81!_11
0 I Rill till 1
.... .... ..... . 2199 Hwls~ PUH
AMP ps.!.
,
HU NEU
H11 ME HER-! an Ma s
Egli 1131 THAH
p
IN
1611112
NON viol M
hu lags 11M
un
mail
i is
wit 13
AMA ?own,
I § -! y 1111 ~
4-8
EA
;T w1n;
mill lilt li!=n
-2 IN loll it
1 i 1 i i : : :::
- i
sisi Un-, Hitt
xp~:Sar,RE
gga MgN
NFE iva ic.-H-:~H
b.&
Hu Eag
Will
---9v
bpol pag r.i~g
1,11i i. -i- -- i !;--i R1HE
!`~_ M4 j"H 11 1 ` Ril§ "it' 1" a
HN -HE'l'i MH i
Y
:E
2i
s
1 9
v
I
9
lit
I
ff
I
11i
r 9 f 1. Z

128
E
0
.0
'V"z-Rg
lndhddual Returns/1977 * Tax Computation, and Tax Rates
a- M_ m
Pggindg EMU
-5-gif!
ggfe.;
C4
UUERU
9 r- rz MUR, ii xe _- S St
'.
S~iiglk
_z9?
S3___ I . -
c4aNic4 c4aa zvia
c4 z cqj cia"- : a . r
A
p HMO(
if
2e A:; R ie
cl ~t
cc M991 ------ E- AR---- RI Mi?~F ---- I ZRt, K-t E.
t~, ..~ I . ~5 T HkIR W p IUD
tE25MI
-
Fa :4
c__
__H u 9 Ei 99HU i MAU Pe9Z 9!1219VI: I PA-0-9
UUM R& 9 _ E4 R HHU
HUfff
HM : M~50§ _
12 E-
----- ------
c.1-
_8 9 v-" I-P9 p I A AZE Z Mull FRUS: He
~22RQJE
--
-
c4-
19 §FS&A§
--t ~:~:P~
MR§
cq 'Nal .or ci z..rLcfLff4 .fc6c6cF?.fc%T ci
't,
;!.c2 ej 5j:
c
.2 F
'N
geggi ,.; - -
- ------
-
- - - - - - -
-
'-t V11-1
a v E :f §
6.6,z
- - ---- -
S
g %agglz
H,
z1cjgzg
a -
tl:: qE &1% a 9 12 FIE, 1129b.3
gdgcq-: g ag
;z ;&
.99900 §
tF
4§~GtV
m H Eg M2
,q HIS Q AR4H HIM q a a k R
. . . . . . mn:
. . . . . 1 -
F ,
& S 9,-~6
MR5 F m,
.;cq_r c4m-
m
A"M
G; 1-Z
r- -St -~ .
'63MH
LR A
. " i -cS
9 RM-im
Lq - - - - - - . . . .
1=1e
. . . . . . . . . . . . .
1H
§§fla yes
g9liq .89h i
"Hug §_-
1, ~UOIEr-
§'
I iflill IIH
I
kkkkkk
1 11 HIM I'M,
Ukkkk kk
INN was HIM NiSS52 2UISN 4 `2 aaII
; g
~ ar;;
skill
Rk§§

:;,j3
Individual Rotuma/1977 9 Tax Computaflon and Tax Rates
j_MHF MUM Z14 F I". ~i9 F F OW? ~ --- !~!_.
C, 6M~ . -L
z qiUMN MPH 2 - RMS§ D; . -a _-5;g-mV __ s A ~-:g
qlAy
URM a~,Mffle
X
Ric
E
W ed
e P 93 A =!Z: &8021~g W!H5
21 O UR 59 991414"
, M a cja~4a
Far,~.6a a - -H-aa
.
ts
tm t
-Rsm
Q n
.4.6-
MME
!9 - _65
xngg-~
Pq
§ a ea~:
q
.1
w,
!2
C6
R sing
-
8 w;z9
!g -- - -
3 Fz
F. at H !29H a
am ME N MCQ: L* -R
CR a
c6
_HM
.6
Ralk
RUN
N rz p5i,M -4 M . H-HR:
. . . . . a HM
. . . . .
s
F~ EEL 9 -&Aqf.19H RRM.-I EMU m;M;V i
't
Law
28 4"i . .
. . . . .
VIRRE --"RFR- GBISF:
IN-9-
!1;;:9
N
8 sillf: gm
at
.F~6c6
nun
gag R19H
c2
Ham
11jill HIM Offl§', pliji mm IOU M
pf
11unk kkg§§§ HI H§ - d HHH I
2 V:! JIM e
, fad 91
kM
0,
J M
- 2 3225 ;;;;;;;; U RUH-
4~v§
129

130
cr
P
indhddual Returns41977. o, Tax Computation and Tax. Rates
URI," "WR RM
rz P- EPER Ef SDI%
DUIM: -MUR RUM . -,-t
P~gigd-
IXAMU HUM
zmsmss
3199RH HHP MUM p MFU
MUR Mus
HIM- c
91,19F -~ -Di5 . MEH, R MEW @!F3§F
V::-8-M 3
SR Men
CRUN! RVIOU HtWk-&§ MRFV i 9 Sl- E
ggg-e:
Olax 8= mg
~;Zap sumags-ZIE: F F i-q
-;z R!P-i "Imm
Rk
RUM MH §11HUR MR
AUN vP 12 13 1 :EHIIII
Rum ukkd ugkkk& HHH
IsizUSSF v5i2vala liffli! Ig -'aam-
V ~Je!ff,699 Wal'

cc
gy
Q
c4
lndlvldual Rotuma/1977 * Tax Computeflon and Tax Rates
0 RUM dsisig
'lag uxW I vie?% I ou
V518,99 U.9r,43 WAR Ez it:RMa. .
5---' - __z
.
gat
pig-m- Wv
99:: 1 gig
.6 16~ c'!
Will ' HIM 11 flu
ullu
R---F--Rg
~2!8 ice §5ipge:
RqU121 MM HUM FARM FFMA
RISK, HIM gCN,
Z9
RkRRZR SkUM MERU HIM F1195
9 9ci9 I-z:lz -UffflEFO
RUM MrfeiE §R'UP 9 iMal Emu nm: MR
Irais . A
lum Wilt,
2D
131

132'
Indhrldual Rotuma/1.977 o Tax Computation and Tax Rates
.2 ~.F ~ tl_g_§
a pun . nom-;~ ggHH
I.F r . . . Sill;
MUM AMR,-,
99. ~a
Hill- OUR 0413---
q
Ilk
~M-
MHz M: ki`
'UH ,
1 RR
!HE§Frzrz 7
U.: S4
rA A ~izi MRU M: ASA
HAP! Zk
81 MM" 3f ag. V124 - SH
A-
Kim. NI a-M'R~~!
OR -RN-9g UIRF at SIONFE-; WREP
C4
C6
Ulm
cq
MOR M ;ZMM?~ HU gig ~vMU -~Izkk kmng . "ag HI: :q;,6 le- iSi ARM-
~41616 Rfl!91:91;9 ~jg -Z
~: P"R99 R-S:k '% -, Za-, -C%Q - -, C6 I RUN ----- -Lq
RUM H"Ka a -"t-wI ISM:- M-9 3
L6 e~6
15
Rd 13 C,
§mv - -
cc~
ME UR A ji RF~~-Z "kk: 8--"R
-t - - - 'k tc! L !.Z-
Rgm- e 2Q--.§V
IF-ME iEPMG 99Mi 'Hv Iq Ilk -4 p, -q'~ g, -,
- .Z ~62f
~q
gq -
-
Eg
; " 'gl-ll , - , ~ ER E
SPHII Vt~'- MM
iiigcFil
-.Z,z
111451me,
W
va-IMU
R R
V! ~~w§~!
HURR Ci "MME Ck I-L 5" R n - .
rz
3 HHU HER"
g gkdggg
§ §
HFIS HH. INIH man;;
ula :1 Maio
A

Individual Returns/1977 * Tax Computedon and Tax Rates
4! H9?IR IFUSIH
r.
ce
k a
mgigs mum
;f! I i
9F!V§H 9 H! F Pgsak mnA 511w: u,
?;2 Jk
PWR RUM 0
a ZEHE 9139r.;Z§ El- R "Mes Uik: Y4 Me!%
6-
UHH
rgjj~k!g F'Fjp aw
AE;w5AX F'qngf k1g: Ell
; gfg e g. ; '~
;~~kgpf 2 - e- , TR19-r gj~ s ef-~ Le
E§s2qT
V1
Lgz' 14=e? A;2 W Ei~!
kagig, cj
-
SmU
;
§HAP! ~HFHR 5W-M HUH RURPS V§19: F FIE 14 ik~
R'iU2z_- nwig AF IV t'
S-9
~g'K..Fg gdsf'Z.6d
s-
nRa nRkRR ! ngegre
m
E~EiEsk s F's ai;: izew tR It
I $6g '~ a It ~ 99P, E
~ 4115il go o
Ilk
a s6dgi~
cq
IV
ME I USK
F 121k
i ~ URR5i§ HEFSH i MUIR ZFEVIR VIV F3a q 4 1 F ___I
IS- 2
mm-
g 9099ti - -: S'
" go '~g
't-41
M991 §1
ggicig g
- zi
g~tja EF
xg[RnWi RHMi 5;~~ivstv a Big
Him
V % _~ R
Irt-
128ni Mft!~;:~c4 -9'qR-LD; - '-~m !W0 F!x!q§6r'.j I KIN S' ri 9
N§ le Rmik ~z R g 81 ~~ 0 I §G~ F HAWN 9039f RI?!: a-5 0 PRO
FR i UORP5 991MV Re!R9194 MUD Alf: FIRICRI
W t;; 99105i 90 - 3 -4 ng FRH
§ Rf-~ 21 IBM
Rum
U p
... ...... ....
§ d-H
iiiwl :fif%Fmal
. .....
HIM HIM IOU's
§91n gggk d
S 1 2'41, 12 9 U 99r. r.
plij i HIM I-till
jjR§ :§k HHH HURR
1125 Zj ;';Z 7'defm 10111§ 1
g
a
in
flail, m
133

134
E
Individual Returns/1977 - Tax Computation -and. Tax Rates
IBM M915tigi HIM gr. gs; Ff 2 fj
~--
-q
---- ----
AW
- a &M21-1
mum OR
51 &;p: M- v Vpg&
- - ---- Ag v7
St-
Mirill MAU EI an UR
I MR 9§ 1
ME A
REaigt Raw ~g
11RURR RM-i'21§1 SH:
"RIP, G r~
$2kvM MIR: IN
gg,4 --vee
ci
AM H
ra Eli
R99 _Eln
clr
via 312! r. vr%f% Ear,
RUB

Section 4
Contents
Introduction, 135
Returns with age exemptions, 135
Credit for t-he elderly, 135
Text tabte.6
4A Returns of taxpayers age 65
or over: selected tax items
by marital status, 137
4B Returns with credit for the
elderly: credit by age of
taxpayer and size of adjusted
gross income, 138
4C Form 1040A returns of
taxpayers age 65 or over:
selected characteristics, 138
ChaU
4A. Returns of taxpayers age 65
or over: 1975 retirement
income credit and 1977 credit
for the elderly, 136
Ba6ic taUa
4.1 Returns of taxpayers age 65
or over: selected income and
tax items by size of adjusted
gross income, 139
4.2 Itemized deduction returns of
taxpayers age 65 or over:
itemized deductions by type
and by size of adjusted gross
income, 144
4.3 Returns with credit for the
elderly: selected income and
tax items by size of adjusted
gross income, 145
Introduction
This section presents data
for two groups of returns: those
on which one additional exemption
was claimed for taxpayers age 65
or over, and those on which the
credit for the elderly (formerly,
the retirement income credit) was
claimed. Most, but not all, of
the returns falling into the
latter category were filed by
persons who also claimed an age
exemption.
Returns with Age Exemptions
Persons age 65 or over
benefitted from certain special
tax provisions under the Internal
Revenue Code. These included:
Taxpayers
Age 65 or Over;
Credit for the Elderly
(1) an additional $750 exemption
for each taxpayer age 65 or
over,
(2) the exemption from
taxation of social security
income, a major source of income
for many older persons, and
(3) the "credit for the
elderly," which was originally
introduced by the Tax Reform Act
of 1976 to replace the "retirement
income credit."
In addition, beginning with
Tax Year 1977, taxpayers age 65 or
over could exclude from taxation
the first $35,000 of the gain from
the sale of a personal residence
(increased from $20,000 by the Tax
Reform Act of 1976), and they
could also include the extra
exemption for age 65 or over in
computing the personal exemption
Portion of the general tax
credit. -Table 4A shows selected
items reported on returns of
taxpayers age 65 or over,
classified by marital status.
For 1977, the filing requirement
for a single person age 65
or over was $3,700 in gross income
(compared to the $3,200 filing
requirement for 1976), while for a
person who qualified as a "surviving
spouse" the amount was $3,950
($3,600 for 1976). For joint
returns, if one spouse was 65 or
over, the filing requirement was
$5,450 ($4,350 for 1976) and it
was $6,200 ($5,100 for 1976) if
both spouses were 65 or over.
The reason for the higher filing
requirements was that the extra
age exemptions made taxpayers
below these limits nontaxable in
any case.
The tables in this section
represent information reported on
both the Form 1040 and Form 1040A.
However, as can beseen in table
4C, a very small percentage of
taxpayers age 65 or over filed
Form 1040A, primarily because much
of their income was in the form of
pensions, annuities, and rental
income, and because many of these
taxpayers claimed the credit for
the elderly. All of these items
required the use of the Form 1040.
Credit for the Elderly
Introduced for Tax Year 1976
by the Tax Reform Act of 1976, this
credit replaced the retirement in-
come credit in effect for 1975 and
earlier years. The Tax Reduction
and Simplification Act of 1977
postponed the effective date of
this provision to Tax Year 1977,
but allowed eligible taxpayers to
use the more beneficial of the two
credit
1976.
computations for Tax Year
For taxpayers under age 65,
the computation of the new credit
was similar to that for the old
retirement income credit. In
brief, the base for this computation
for 1977 was pensions and
annuities received under public
retirement systems, limited to
$2,500 for single persons, $3,750
for couples filing jointly if both
had qualifying pensions, and $1,875
for married persons filing separate
returns, reduced by pensions
received under the Social Security
or Railroad Retirement Acts. The
base was further reduced by the
amount of "earned income" (defined
here as the gross amount of wages,
salaries, or professional fees,
and other amounts received as
compensation for personal services)
in excess of $900 ($1,200 for taxpayers
over age 62). The actual
credit equalled 15 percent of the
(reduced) base.
Prior to 1976, the computation
of the retirement income credit for
taxpayers age 65 and over was quite
similar to that for taxpayers under
65, except that.all types of pensions
and annuities, as well as income
from savings, could be used
in computing the base. The credit
for the elderly introduced for
1977, on the other hand, differed
markedly between the two
age groups. Amounts received from.
pensions or savings were not used
in computing the credit for taxpayers
age 65 and over. The computation
base was simply $2,500,
$3,750, or $1,875, depending on
marital status, reduced by pensions
received under the Social Security
or Railroad Retirement Acts.
However, instead of a phase-out
based on earned income, the new
law contained a phase-out based on
adjusted gross income (i.e., both
e*arned and unearned income). This
phase-out equalled one-half of the
excess of adjusted gross income
over $7,500 for single persons,
135

136 Individual Retur~s/1977_- -Age 65 or Over;-Credit for the Elderly
Returns of taxpayers age 65 or over: 1975 retirement
income credit and 1977-credii for the elderly
Md,yPt'0f:,c.T,0ctjt.(t-hiH , iciiii,,oudollars)
C___1106 R4iirekMenit'16c , dme C , ~edit
over $10,000. for married couples,,
. I
and over $5*,'000 for married persons
who were separated. Thus,
no credit was allowedfor
single
persons age 65 * and over with
adjusted gross incomes over
$12,500, married couples with
*incomes over $17,500, or separated
persons with incomes over $8,750.
One more minor change
introduced by the Tax Reform Act
~.1977,.-Cieditfor.,,,ifie",Eldi3riY, prior-year income test. Under the
previous law,. to qualify for the
retirement income credit, the
taxpayer had to have received
earned income in excess of $600 in
each of any 10 years prior to the
One for which the credit was
claimed. There was no such test
for claiming.th.e credit for the
elderly.
Chart 4A compares the credit
for the elderly claimed for 1977
by taxpayers age 65 and over to
the retirement income credit'
claimed by'this same group for
1975. Details on the age and size
of adjusted gross income of tax-'
payers claiming the credit for the
elderly are shown~in table 4B.

Individual Retums/1977 e Age 65 or Over; Credit for the Elderly
Table 4A.-Returns of Taxpayers Age 65 or over Selected Tax Items by Marital Status
[AR" M eamatilal based on wriples-money amounts we in thousands of MMI
Marital auto
Number
A*SW Exemptiorts
Rehm wm
zero bracket
Of
amount only
Main was
defich
Number of
8"Iff"ons
A
mount
Number of
returns
Zero bradel
amount
(1) (2) (3) (4) (5) (6)
AN returns, botal ............................................ 111,112"711 101,1",U3 nM711 17,747,783 WZ659 14,228,310
Joint returns of. husbands and wtve% total ......................... 4.497= 68,464,9W 16,420.159 1 2,315.1 19 3,152,136 8,819,876
Both ap 65 or am ............................................. Z448.879 37,606,815 9,91Z596 7,434,447 1,717,690 4,771.309
Husband 65 or oveC We under 65 .............................. 1,732,029 25.901,920 5,541,072 4,155,804 1,209,818 3,402,165
Wh 65 or over; husband under 65 .............................. 316,312 4,11656,168 966,491 724,868 224,628 646,402
Separate rehm of husbands and wim ........................... 75,M 787,592 159,699 119,774 45.078 66,702
Rehm of heads of households .................................... 14ZO72 1,595,013 384,797 288,598 90,121 176,322
Returns of stffvWV spouses ....................................... 5,434 69,867 16,963 12.722 1 Z -4,811 '15,469
Relkims of sinp persons .......................................... 3.3W482 30,281,967 6,682.093 5,011,570
570,490 5,149,941
Returns with Itemized deductions
Marital status Number Total
Zero bradet
amount
Excess demazed
deductions
Taxable income
of
'efts,
deductions
Number of
returns
Amount
Number Of
returns Amount
Number Of
returns
Amount
M (S) (9) (10) (11) (12) (13) (14)
AN reharms, total ............................................ I gum IZW,490 1,%2AB 4P?JW 1A5Z501 7,M176 7,454,994 7SX4,150
Jok'd .bx, of husbands arid Wks, total ......................... 1,01Z567 8,181,115 998,670 3,157,501 1,01Z515 4,947,127 4,150.8W 52,175,903
80 ap 65 or over ............................................. 526,291 4,558,317 515.717 1,634,805 528,225 2,872,396 2.233,407 27.835,300
Husband 65 or ovK wile under 65 .............................. 403,248 3,149,661 401,982 1 264,126 403,246 1,86D.345 1,611,780 2D,2N,889
Wife 65 orW husband under 65 .............................. 81,050 473.137 80,991 258,570 81.044 214,386 305,619 4,040,714
Separate raturm of husbands and wives ........................... 21.416 232,221 19,269 30,830 21,330 197,982 64,347 $48,528
Returns of heads at households .................................... 41,147 224~M 40,813 89,762 41.147 133,756 130,934 1,194,993
Returns of surOvirg spouses ....................................... *196 .3,161 1
'198 '634 *198 -2.527 5,032 55,760
Reftime of sWql9 persons .......................................... 580.M
marttal Status
Number ol
returns
Tax preterences
3,946,714 533,375 1,119,113 577,311 2,671,784 3,103,865 22,968,966
Amount
Number Of
returns
Income tax after
creft
Amount
Number of
returns
Total income tax
(15) (16) (17) (18) (19) (20)
AN returns, tobal ............................................ 131,M 4,422,M k197,059 15",652 5,2W,571 IM98,3"
Joint returm of husbands and vrives, total ......................... 9D,418 3,197,849 2,866,342 10,68Z538 2,868,952 10,951,377
Both ap 65 or am ............................................. 55,543 1,926,131 1,474,881 5,855,486 1.475,996 6,015,683
Husband 65 or ow We under 65 .............................. 31,933 1,160,602 1,155,507 4,118,224 1,156,991 4,216,463
Wh 65 or over, husband under 66 .............................. 2,942 111,116 235,954 708,828 235,965 719,231
Separate reburris of husbands and wim ........................... 1,392 81,339 36,018 146.158 36,023 154,651
Returns of heads of households .................................... 1.184 43,278 96,737 227,458 96,799 230,729
Returns of wxvMV spouses ....................................... . *12 W
090 '101,052 2,095 10,107
Returns of skoe persons ..........................................
38,622 1,098,871 2.196,872 .2 -
4,163,645 2,196,702
4,251,480
*Es*rdft Should be used with caution because of the small number of sample returns on whid Hisbased.
Includes zero bracket amount
NOTE DaW may not KW to total ofmwwkv
.
Amount
137
---------------L.-

.13t Individual Returns/1977 9 Age 65 or Over; Credit for the Elderly
Table 48.-Retums With Credit for the Elderly: Credit by Age of Taxpayer and Size of Adjusted Gross Income
[AD f1gunas am estimates based on serroes-mor" amounts am in thouslards of dollars)
Returns of
AU nitun Rellums of M*aM age 65 and OM
Sim of adjusted gross hoome Number
Of
returns
clVdit
for
ft
Number
Of
Credit
-lor
the
TOW
Joild'stun WM
urider 65
= or om
dderly Nurrtbar'df I Credit for Number of Credit for
the eldedy - returns the eld"
TOW ........................................... .............. M450 167,41 224,M 74,M
(2) (3) (4) (5) (6) (7) (8)
.~I
1112,11193 Ioun I"n
Under 115,01)(1 ....................................................... 50095 Z983 19698 *918 40,397 Z066
$5.000 under $10,000 ...............................................
$10,000 under $16,001) ..............................................
$15,000 under SM,000 ....................................... .....
$M,M0 under =.000 .............................................
$30,000 under $50,000 ................. I ...........................
441:46D
208,168
39,724
44,068
8658
86.235
45,438
13,415 1
6,351
Z793
70:iF7
63,165
29,997
4ZS19
8,137
2Z370
21,181
If=
16.943
2.671
371,193
145,003
9,727
.1"
*521
63.865
24.257
2.064
'408
.
'122
48,874
.48,365
:6. 91
1
521 '3
7,596
BA95
*I'M
'408
'122
$50,000 or more ................................................... 377 746 265 531 112 526 111
*EsUrnate should be used with caution because of the small number of sample returns on which it Is band
NOTE., Detall may not add to total because of rounding.
Table 4C.-Form 1040A Returns of Taxpayers Age 65 or Over Selected Characteristics
[AD" we astimiates based on samples-money amounts are in t1housands of-dollars]
Sme of 4tsted gross . M=N
Adjusted
Exempbons Salem and wages
DMdends in
adjusted gross moorne
Number
Of -TOW
Number of
~
Number Number -returns
IM number Of
exempfiorts
for age 65
of Amount Of Amount
deficit ex-001111, or over
returns returm
(1) (2) (3) (4) (5) (6) (7)
TOW .......... .................. ........................... 481,845 Z$54AN 1,424A75 812,642 MPG 2,569,169 115,432 SAIS
Under $5,000 ....................................................... 284,487 804,166 838,043 379,243 274,508 758.818 -20,077 -2,019
$6,000 undar $10.000 ..............................................
$10,000 under $15,000 .............................................
$15,000 under SM,000 .............................................
119,860
58529
13:550
794,315
698003
232:091
354,511
167,364
47,036
149,750
SZ533
16,219
119860
58:529
13,550
775693
679:045
230,917
1919N
M
:1.839
*126
.66
'465
SMADO or mom ................................................... -5,419 '125,888 '17,021 -5,897 -5,419 '124,696 3,195 '753
Sim of a4mited gross incomis
Interest rwelved Zero breast amount Ticuble income- Income tax before oreft
Number of
raw=
Amount
.
Number Of
rottJms
Amount Number Of
returns
Amount
Number Of
returns
Amount
(9) (10) (11) (12) (13) (14) (15) (16)
TOW ......................................................... 239,107 81,079 377,M OK935 MAN IWM5 192,487 ISU14
Under $5,DDD .................................................. a ....
$6,000 under $10.000 ..............................................
$10,000 under $15.000 .............................................
$151000 under $M,000 ...............................
$20,00D or more .....................................
114,715
74,034
39:M 271,
:6
3,3381
43,329
18,498
4% 9
1439
180,050
119,SW
68,529
13,550
.*5 .4
.
19
245,500
331,443
166,895
42756
180,050
119,860
51.52 6
13 50 '
.5.
249,997
528.432
'196 7 2' :8 14
'15,060
99,939
58,529
13 SM
iJI9
.10,
30,653
72,142
291
'20,347
S6 Of adjusted gross WM= Number of
mum
General twored Income tax after credits Total tax Illiblity
Amount
Number of
mum
Amount
Number of
returns
Amount
(17) (18) (19) (20) (21) (22),
TOW ......................................................... I"IF 2104 IM"a 177,01 ISDAU
Under $5,= ........................................................ -15,050
.5M
-4,938 '128 -4,938 '128
WOOD Undfir $10,ODD .............................................. 99,939
1. 370 94,958 20,675 94,9558 2D.675
$11010M under $15,000 ........... ...... ......... ,
'*'***"*** ... *
58 529 8,271 58,529 63.770 58,529 63,770
$15,000 under $M.000 ............ I .................... : : ...........
13:550 Z439 !3,550 26,5n 13 .5 25,622
$20,000 or more ................................................... -5,419 '975 5,419 19,347
:419 "
.19.347
'Es" should be used with caution because of the small number of samqple returns on which it Is based
Inch" zero bracket amount.
NOTE, Dates may not add to total because of rowx*V.

0
Individual Retums/1977 9 Age 65 or Over, Credit for the Eldeky
41111110- H
IIIIII 12c ROD
tj 19 ck R
nIRI§p gq~§V- 1 INK RUM MR
Egg
. . . IMU HI, x UM
RAI MUM MaRv 4 W"Ilk WH9 IM a 91
MR. MON MW Rq~~ &ms
'sfeRgif HIP6 6f-6
I ,
A RAM; AMM Agm!=- EERM M15
ri g
Hun RUHR MISH lxvsq~ cERRAR ;-;4p[4 F 4 ql!e
VIM Tf:,ct- 10 V59,z!- .1 st j5p 5 .1; kgg-
gag Inku ml Raw.
g5gsf-ds 9HIR qgRars Ogg
15 RUN Rau 998~:rj !6 ENE 9 1 ;; &-sR
WOO
~5121R agm KRUR HUM
x Imp mig RRAR 3 RpIx
=Sivo
qz~ D I&RIR
rj§ Is r
9 -3
.
§
jj§
dga
ggvfr-.;; rram 191,21 1 ;UUM ar. aar.5
111ji Mill flffl ~ ,, p1jil : Mill lilt, ult t, r.
§§§§k HHH I
§§§§§ 9 lmd §§§§§§ §M jimi I
Isagafe- E'a"IlWa, 9110-r I mcgil 9921 1 HEN .
d<
139

0
illp
I II. mill 111111 till lilt
. 11 HIM
1. 111111
- s it
-
p :
-8-09~ 'C3
V1It 112i 'E '-!2 -84:t
legum- Mal Uzi
gpgt Eg!m 15~ifij PALS
12 3 5:6 1 A r3i Him is; 'S
MM I
-1
tag Hzil P-4,01- P j" aa-H
i FgH
104 -8 1
t'~-gg -Ag-Wa"§ V -Wf-Mt M§Wq~ t
AMA V. 5.~= p- at re 9 C'M -rd sgssggg Lossoos
Haug 9 E &Vi -M F-4 t- 1C :f rm-A-', t.s 'BA Mtall -
-fib % SIUM Man
HVE -A -A I v P- -E
M-St A -v- -A
9a I E VE9 9
190 ~A I
v Ott 'AMA 4 b Ign-9t
E PAP T19maz!R 95CP54, t a-:489 mr.1A;;4:2T
"PRIEVE-99 OUSE XWE-M r. V t~
t
-S IM § -" a t-.XS 'e.vuf8
1 wunaga
~ q-
8
RUgl
I
UHi:'U
5'~ YET-Egg E. ~,V-flm E g1 2 iz-3 I R -1 E P3 .4 R ir".
99 t1!3 t? S. .;2~3 ;3N~ =z;
I - !3je8-=r la
V Vt ; Q?
U5 1C - to2,99 3 e. is 'a g Va - t 12 'a -
up
F;
Z, M 11-Ju g1v
VViP13 9LR jog 11pwo !jeAo jo S9 95V LL6&/9uwnWV lenplAlpul Ott
SL
SL
Er

a
I-;
Individual Retums/1977 9 Age 65 or Over, Cred-It for the Elderly
MM MWA MW
tn": aUM W=-
1B 4 9
VIM- nna Run
'p,
~2%. R k Et4RX", URM
ma
a 1199-1 - EMU SWRO-1!
7c
~,9Z HOW` 9 P
Rkkkk
4,
R?G-R
g M-PR
MO
"URR PEMFSI UR a
-ki mal RR-
s-t-149t agm
- RUM
. q Qis EMIX - V
PUIR
~i A
kka-IR --ig . -
le s4xq;;Vx FEE
:1,1tct, F, WAR
-~9,4999 =--- Miss, - Mg RRW--Z- I - , P flgsi;4. Mw X-
§jg; mv
karz-st- wda
:MUR
Lq~zsf IRE;
-rva
slgmj§*~ iq§rzei
t-k-t . -~t
I I -
. a 9? Milk
-S?
4 R I
-R, Ur. IR simile "Ifisil
af t4 id! K se of R M, !D~~;IkR R -1
IFN UMH "RGH 1! HIM HURM RM 4
§ HHH
111111 HIM
a ;;M3
111HRI, §11jil HUH it
MR , Mug §§§I§§
HERE; fla "N1196 MR
vs-,; if of9 D4
141

142
Inclivil.clual Retums/l977 o Age 65 or- Over, - Credit for,the -Elderly
l5wo k4hul
xMil t-
v s IR a I JAR!R
Ul RUM MINE
=tqv St St _ A 31 of
_V6 5.
9 MUM-
m !S
DUM 0HERR E191100F 4 AGV§
eap-
I UM
wfd
RRQRRR X;;R- I lglq
46i%
M-3,
9HM ` lPf' VU
gof-Mg R-5
MaR UMM MM a
HEN iNn'! He 9 SIKH
c'T_
qcL
c6 a.
UM 5MR19 UAW a mffikk VERMAUllk ;i; ZRF;:§
HUN RESM Mxkg f WAR "UP A
all Wil d PUPS - - E nua~
MU URKA N~UIRU~
!l8fe-za I
k:EIIR§ ZkRq
."t A .-,I - . -
t-*R§a ~:`Mrae_k HIS
Mak RUM RUM Z 94§11- MEW R F R Fag",
lgggg~f 91z --don
1 55
ul
Will, §
§
§§R§§g
111 IBM-
Udg Z1.6
falifol' a.-S-6a H?Ij
v

NJ
zal
Individual Rotuma/1977 o Age 65 or Over, Credit for the Elderly
4 gun p4g~ 405sp F HIM HIM-591:1 gg
Hogg Iggg cq a
IMIF RaiW~ --z
1 52 60
HEM H-Mu -rg- ---wan.
1119 1SHR 1
555
51
MM Rum IMIr RRWR m
MOE' ROO:! -ggg-
km1Fr ;::.F
GIBE
EAM Ung ggov&g
I& OW
fUZU 1199 0- §g-
. ...... ...... ..
fiffl; Ifflit lit
§§§§§ -
VON. HNIZUK 11111 & ;; -i PHU
aim
Vc4
143

0 0
R;;jlgal EMU 04~SnRjix ann m5i~z Nine! tam§u R~RRR
anak
MaU IREt
RUM
Nfltul MU is M XURR"i R
~Jz-
SHE
u
k NEW q
5iRR
`LRgM
-
ngaa 1IM11 RUEM
-_6
Pun.
OM §&MH iWgg
R rgsiglfl~ S199-r-7 RUN M= c"R IUM FUM
1kit : A 15
jillit HIM
liffl?, 'kill
Hilli it "It,
RRRRR§ RMIK
§§
NRR Rum RRM
ck Iq
a

Individual Rotuma/1977 *Age 65 or Over, Credft for the Eldwty
pla pp,5g
I;gg pup np;er-
WRP P.M I ~5!IRkI
Rik I . i; 5i
I! "WIF
ka THA yof MIR IM: am mum w.-V:
Ila RURR4 SEP OL gm IRV Ukarl F
UNA
:t
1 I lox 1111 51 vgjpp NO Jim F a IN
main Fallop Nun:
59-5 sf&
1 fill
SONVA
if F, 9 PF -r:
iRMS11 HIM'
Mau n V
091111 grime: 6 go V:e
Pup alkIp! lypw g, IV
I HIM
AM OHM §tll§ '- Aun
aaaggg M;
iiwF HIM III. fit HIM
H I
21 ;-; ;;
PRO "I"I Itfill,
§ §JU
HIM, H11 gold
145

j5
!3
I
. g -4 -4 P.
p1s;go
-
pup § ffliji i'§§'§§
§H
tg
11111 HIM 11111. 111111111111
!Mar:
p HIM
. . . . . . . . . . . . . . . .
EPM MWE
I f 55 As: N-H ig'R-83,9 Ila I I H MI-ME: HT-M
E t IV -tb
V9 U i Agggs HEM 91M 9 :dM&S MH HA
t
ME
ja s UA
N
05 L
'fig
W: Ai 9 S i9 IFIR 2 1 As
Run- 1 EM 1 1. g cagi
I I eg
NMI MOST-, 4212 1 1.
&
HAA
1 16 f g-! I I I SR I lit I I i A~91 L; rg I I §5 I I i
Awpli -GLR J01- UPWO !JOAO; JO 'SO Gf$V !~:,LW &/eujnleu pnpjAjpUj
'
tg
T§
I
SL
91F L

All a
Oka
4 1 1 ;-z.111
~mjj kpi;p:
IndMdual Retums/1977 e Aoe 65 or Over, CreM for the Eldwly
FF
:T Sittig R.
Palas INP
'Nm w - P5615 WIN 09": 1 ra
Xt 81 s~
1 11
HUM namil Fe I
---
mall v
1119k naml air a
M all
IF Ila
UN :- e Uff WHI IV I Rill
NOME.
W 40 1 r:
.1
Iv:
I? lie
Ifflit Him 1011
JI&III loggi- r*
3 r. arrr. 11111111 a
HIM
ro
It
147

148
j
Individual. Returns/1977 *Age. 65 or,Over, -Credit for,the Elderly '
I ~;-wk glum
$39
Ue"Mak 11-M-~:-
%9:EVr.T S-~ * ,
P
S-RRIES: pipp:.:
HUIR
geP
if
SMM Vir-YIP: IMCI R!_ :! -3 r--:Ik qar- V,r,:
jaze~:.; e :,;
*
RkOR RM-911 Pip"* I U91 2k
RHRRR UMV
RAN ga lim 9-1
r4
-
WIM %H!
agg M 0; mcew
c
cl
ggid
MEE*
- -
we W Sips
WRU P"7: Run
1H
ffiga,
a af;; ;;_Z;999 911112 a ;14-1169 9§111-
a
a

-6V&
§""r, 9
Will
Mh
tr, !!
im p
ggtnt. v1sprn 1
td " M`$,
u pill
jr
HEM 1-3-4931's
101-2 loll
1 A gisI 9 9 MH I
.
-4
7g
pgpi
HIM
ell
...... .....
4~-*3-§ffl at TI-Bb I I I I I 1 -4titin migi I i
j--:j38 Palwvpja
n
at sp
0 22'- Xis
0; 13
4iiixpM;s
MOT, 'HURil VA H!, A -.1-a-mv 9RIN A -!Z I
gm, RAM,
'"To - - I 'It 9WIt'v 'fla 9-
AtnpI3 9W iq Rpejo !jeAo jo 99 96V o LL6LlsujrqeU junplAipul
R 1-9
na
V
CA 9-
SL

Section 5
Contents
Introduction, 151
State data, 152
Method of geographic coding, 152
ChaAt
5A Returns with deductions for
State and local income taxes:
average deduction by State, 151
Ba6ic taUe,6
5.1 Selected sources of income
and tax items by States, 153
State Data
5.2 All returns, returns with
zero bracket amount only, and
returns with itemized
deductions by type, by States,
156
5.3 Returns with income tax
before credits: tax credits
and taxpayments, by States, 159
5.4 All returns: exemptions bytype
and number of returns.by
number of exemptions other
than age or blindness, by
States, 162
5.5 All returns: adjusted gross
incomet salaries and wages,
exemptions, and income tax,
by size of adjusted gross
income and States, 165
Introduction
Data in this section classify
taxpayers by State, based on the
address reported on the tax return
as described below. Topics highlighted'in
this section for 1977
include expanded information on
exemptions by type (table 5.4) and
itemized deductions by type (table
5.2). Chart 5A shows information
on the average deduction for State
and local income taxes by State.
Chart 5A
Returns with deductions for State and local income taxes: average deduction
by State
N. DAR.
i7-77
~Mlc-
0.,
$760
under $1,000
under $1,500
under $2,000
151

152
State Data
The tables in this section
classify taxpayers according to
the State address reported on the
tax return, inc luding the District
of Columbia and, ' as described
below, Puerto Rico. Returns of
service men and women who filed
from Army Post Office and Fleet
Post Office addresses and of other
U.S. citizens living abroad are
classified
gories.
in two separate cate-
Residents of Puerto Rico had
to file U.S. income tax returns
only if they had-income from
sources outside Puerto Rico or
income earned in Puerto Rico as
empl oyees of the U.S. Government,
and 'the
income on their returns
Individual Returns/1977 * State Data
was limited to these amounts.
U.S. citizens residing abroad
could, under certain circumstances,
exclude as much as
$15,000 ($20,000 for employees
of charitable organizations) of
"earned income" from their adju
, sted gross incomes. Taxpayers
whose incomes'consisted *entirely
of such tax-exempt income were
required to file a Form 1040
nonethetess, and these returns are.
included in the statistics.
Provisions of both the Tax Reform
Act of 1976 and the Tax Reduction
and Simplification Act of 1977
affected taxpayers with income
earned abroad and are described in
section 1, Returns Filed and
Sources of Income, and section 3,
Tax Computation and Tax Rates.
Method of Geographic Coding
Geographic coding of returns
for Stati4tLu o6 Income was based
on the address at the-top of each
tax return. This method of.geographic
codi:ng was subject to
certain limitations. Not alltaxpayers
gave
some reported:
their home address;
(1) the address of the tax
lawyer or accountant who. prepared
the return,
(2) the address of their place
of business,
or
' (3) a post office box number.
~o the extent that such,an address
was located in a State different
from the taxpayer's home, the
,accuracy of the data was affected.

I
IndivIdual ROWMS/1977 * State Dab
RRSIRI um p[%::qt3 p Z44 -~igAF. mggsq qip,~Pg
Md $99 -~:- I ag r~i -4
uigzi ift-,90 &PRO Him,
k M-~
gxv~ vq~p
in- le
COIR "SH MR- Milk Max MIq
gpipili F
~i N
-vigs amqg~§
R,§U=
-
RVSRR tAM x"" IMIR- ` 1
,d g,
1111-99
ge'RMI N -g wng:w visig= U 851 Pga-
sf -~ ggf,$,6
R,4%ss ~q~mq
~gvqg-~~
A- 9'
84940(
1110M . 9-M
ag g
Ugk
NI-1.6
Mgm tpmg? apg
;-r ec4 -r
4RUF MH HW? ... i !Uv% ME- .,I OM q ---- RRAR§
9~Z IRM 'V,-;:i Uil
.. ..... .
ck
61
-
givg:; :;V-.RR 1%,q a19R9 FRUR MEE HRH~ AR&M UM
1; 1 12~ Wil ... t~ ;! -q.;-
-
-
R Riii ;-Pgr.~ 1
MEN t-igUR a2ziM R-: HERE 5-5 v--g
a%k
unk ~q -m? RR ~psR
UNA Higgl.e ERM !R 5M- .4 .. MR9 ..... MU lmk-~R? mu Ram R -1-L2
A M pm-2
-,Min
lzq-:.f ~:Izg
RR R 1% k St "K 9 9 oul G-991§ '-Otn§ ggPH lixel WE g Sm
-nl
gm Ee- ~:Akza ;e---
SEEM HU? RM HURR $3
q Dg ~.-
S!g - t~,
- rj~
't
R;Z--jq i ;~
q4§gj~ Rk?j
ce :4 d-~ --e
HZEZ2 4UH FH?p MH RIUR CZ REi F N & R F99
a
6 a-w
- K
I
1 1 I
MW MEE : z g f c;g
WH
igg
agg~:
P 9
nU ~-"w w- 6. A
6 6
:,RRR @M S81 rz g
&is H995 V
Usov: giftx F. 5k Wig
a Si
15-01 ~6 ARM: ww MR3 - URN ~rcje,~ MEE ~z iss:ii c6 16.F E Iq --i
I Hnpa Hsg- A-Z M 4-ARR !;~ . . . zzvu~ -i~% ?~G&k gmu is g
qg!
Hill iiin A::
.~W MR
zz F §;2
?1MR UP?
Ell
IN

154 Individual Retume/1,977 o State Data
V k J-Vsk
G E -.1 ~ 9 9 U~GU5 MEE RU~s sm-
cc
ji
M-1pe M-H §911193 11-NU RUISN:_ 9
HIM ULM §129.29-V P, R R A9 MU c6 m E72_9,
cq.6..f-d Wgcq ~.; e .F
MW HUM ~_Hlaj HM RUH ;19 9
R FF! Mig Zi I Z k ai UM MH V1611H MUR HER?
,:.Wla
H-E
MAE G-RU E 1_: 9 ~_, Ez E 1 9 Z_ E Z-; 13 9 HIFFE DUSH M95
g
a m ; . 6g.;gfg ggg
91 4 GM 'MIX PIP
a
MH H 9 ! R ~;_z A 3 ~~2 I& I I I gg;Z~R keg&;~ ~RF-R ReqV§
men m2 U4 2F m ingla zwl mig Rug Agm um R
': -fl~- 'I mj~_- R pgp a
A
UU,
IN
39GH
R Ax Ei I ?& 2 §NkxF mu a E RIM Uggr 9%HR H
ci
feg
IM'D g, F
-~
ggg tpF :sr
F3 - --- -
_;; -rig ;HUR .6 Hi
It C4 c6
HFAR Rap.! I - SME AAGM Mme *-MC2 MV
m -, :Sg - ;f aq miggg -g;pfg sgggs A 4 U9 1 " F IR ;g. -Figgi SH I
E &UH HUE Mu ung mgj mil R 4:! P a V I I
.... ......
-1 g1lak plig laux Rung I R~
. . . . . . . . . . . . . . . . . . . . . .
H-11

A
Individual Returns/1977 - State Data
_~ . m; i as "'! ; M 9 N " ~- -41 ~r. UGHE
k RI R Ei 1
U Fz U§lw Hi 1
4511 HIM 1"111 M-1 "MOR RU14 URgs ns~~ nn!x uku npo
2-1111 gIM11 jogjg 2 -Effi! 5gRIE Z-:_~ _- Rglog OK-9
MIR 5440 WERE ORM UP Re mom mm m-RR un~~o ARSa
a
111H Mp p-!p qp~ ;HP11
a Sfa .6.z5
!Rn~~ E~S~V-
. 8 ~&V
IN E. RE Iiii giEp
pip rnip F-mig wm
11 HIM lpsggl nalmn Z-ax-mi; pjig pygm. mm
mn 01 IV— tff!!f Elaz! - on
it W31 Im MU 19RUS
g. - -~8
.4qki ! pa-m
Rpu kg-j ;g§-; pig.-eg pn_~~ F?M*lg ~ ;6;gmi; pi;! d ga
gni
1-MV BHA 611V RRR
HHH- 1
d0 99901 m 14 x 0 0 m iR 1~ 2 S ;5 -. 1
a
R R Rz
EERIE ON
Pig!
Rug! It
qn--i §pp 6
B §Wwk aline zoll s-s uu~ 1~,m s-3 a- --ta mp Q g gq
~ !-5
c4
4ig! nMER n~?
1-siq "Z"N
a '40- 'M9 offig
Rpk~ pm pua Sap S i
pq 9-
Hlb ifin JIM 15,
I U I H
I sm

156
ir
LD
P
3.2
lndhddu.al Retums/-1977.o Statb Dat8 -
T1 H-M . _ R . "M c1kNq,.i . §Fgt2ii ': 'i H,_M, ARMA _~M 95M HMAZ EIMUN!
MRS §=RIV _89SM --SIN; vgt-ja; gg-2u2 gg§§
I 1:kkU-,I Wk .... R ---I A"t Wk ~M
~-Qf- QR 4 z
XR e.,_?R2 S_R§vl~ E-151 tqc_`gK!w -~99p; -migg-
E K9 9 A i~FZHH MM Hv&_ S~ 5 2 2 A
V rz 99M - ;~ v
MR- , qub 19,F c%r
Mal llm~ nme liku -Am ~_;M§
g nw Siva
ae kp.';J~ :1`,~ - -LIA ..q z Rt . . . . . .
-9 E-8 UM PPM pus IMP P, nu i ci!i:
MH
. . ~k -
2R I I I -MIR WU R" I smcra H
Vo r c2VY. Pi. a.F* 9c.; lz_:
1 .4 ctk UZ a Ea §
Wc; 5~?FF 7uH_1. !2F c6
%S90;
Agg-ii 'i 12M4
R-s~~V
- ----- - -------- -
cq U "-- E 9 ~ E § 9- -G "' 1-9 -4 A~ C6
In;
ciRR Mklz P.Lc%i
99 R "V
S;&jes M&frzj-
ms; m F
act
RUIN
c4 gim ~gsfcro K _2 -y
'.~cj~ct
Fcq 16
~t~
M~MZA M:Va
; MEE x u k.~L ....
wim
M_w "MOM c6,:;k HM ERR& lu;~5 cnta- 2z;zj_~~
cq
;; c6c6 cr,~c6c4.~ wicF c2
"t.
.1
-q
xVR
OVM 9 FS V"99 9m, Eg UFR.
~., cL c6ffc~cr t:gc6lz
&-
2 12;z 1 2 §SX81: pfcUg ggggg
_c? ci m
9 A M, § 9§H2
- -VE-I - - - ung - - - - - - - - - - - - - . . .
~:m MW2 HER" 9§9 , _m, - M99
H
-t_s!'V 2 - -1
c1r ;~ 5~ - 5 k_
5
RS- Hm mi, m
E R V5 A -4
sf ~-Iff
M
Lda
_:c6_:.6e
R
1
iq WULZ 1E S um mn.
aun mn m
,
,54M9 99,:99 aaggg gg!g;~! g_:ggrg f!fc6jpTg zgazcr gaggg Ldz~6g
z z A 9 to a 2 a - R ;;- - - -
-
z
cli
.
om
miz N
i
'W 9Lq ..... 93099 . . ~Yg M
Z- c-2 R g
'q .~e c_4c4c_f[jcd c4g
zc' c.
% -
_.iVvt-v m; "_ & . 2--- .!2 v
g;z E ~~!~
,q-- cR t~~tq - ct _R
Ai
0 -qsi i ~w E ARM, SH 8,911
'e~zz..r -7L6 ~q.~ -7
2 z
. . . . . . . . . . . . . . . . . . . . . . . . .

cc
r
z
et
Individual Returno/1977 9 State Data
S !A IS 6-9~- R MU Hz;-Z~y NHU 9099
gg - -
9~Q-E~O Z-;91-M9 il- ~i199 ~x 31 ig R
6-ggcz: g;gW:: HERE ;Z'Ziggg 9905 Vlsi~ dggsw g. f
z cL'
cq
Lq
v Ann mu uw wgi m.-!-A mk
D;G'
leg_ A
MR3 ~Mv~ MH IMER HE 9 ~ 21; @2 a R V.~ HM EUR
29
In-n!
-r-- E3
MH MH UN- UM xka-Ap sk 'R Na gwa-- R
:MH HCRE Riggs-; EMS HFU §W2;z ~
VS19M SHM Sz?;;Z5 FFH
gg~6~ag *~ : ~fq aggf z qag
g.
-- F m - ti;$ ~~ =-
'r c4
1-5? !HVP!~ m - - Mg~ - ~ R ENS11 2 HE" w-M -Y. 19 -M;.z HUF MIUM FEWA 92H -
g
-I ; HO IHUni
9EW 1 59Fii HAH HIN USM
; WAR
Eam -agp!g R~flE~Gft: ofg!~!,:rgi agaaf egr~lcq 'a"iggg gpgg a
@-A:; a - - PA M
cq
a !9.c2I , q.
I:m; !gtB§~R RRR?!~Z 991M§' F S'. P R -- § ;'; M R' RIE
-L c1L
- -K n,-t ;a
;f99's P161z9
-.7agg c6-
1! 9F;Z13 -9-91 USH rzg:E;;, aU;z9 ~q~L E:9H R.
Ic~,dgg c5pp '` - ------- ----
;H-F R-1 28- EPP ngggt= R tH st
i ci -- ----- FU82 --- &- 9 7- k R E i ;.2 R; A9~ RASVRt~? 9199r-lk MA
q ~2 42a-2 D;V~Ms 9 A 1 1991, i.;
MG~iN "- - - -§gF~ I
He ;1; -11 ;.2 ~-R
V
I
"a
- I'M '~t - R-xz r1% -RN--- gI~GL mags R Aq 2k .... T- R V~IE F R
------
cjc4.
4 ~msp plosix pg;pe PRO% 9999- -i~
r cj
k ?RM R F ~ F §9§a"- . MH 12 -- m 9 V.
I§ UM§ UM Sk
9 Meg . 5!Mi Ms
~zqgg c1pq g~:gs-: t9 ~nxiqsi ggf g~;; ~V W; f ; g lf`gg-~
- 905-
5 1 -0-:2-H Me,,~ ~M aw 2
E ~MF I&VU RHO
j:;'! t2 R;eg
.... .... ... ..... .....
6~'
'~A§l
.. ..... .... .....
z11 1 zzz919, 4 omm u) u)~~-'= ;-.'!5 3:
c! -L
157

Ise IndivIdual Rotuma/1977 o Staft--Data .
.9
W?s IRM IM!e oWer-, §4199 RUN 61if MR rm-Mai HUR ~-91;-eg E~R§
ME F,
F HM: k RR,Vk RN MH Up", Alq;~.i 91OR F~ ... mang ..... §Rv~§ ..q . vm -i A .
, 1 -
-
- - '
O
6; OR, " 2 5a X1 -1 W -:C,;q Vim m a ~: L' A R ?-RTR
=: ;tqvs
-
i MHoi . I.... p HE 2- a~,-M' HE- . AaM MR .... M-9q HER 1-6 HIRE R.. MER . ?VU
'E9
Mig 99W RNV1;U- V61-90 ...
t
!Ikuu-z 9-991-9 ..... ;,;FgRls 959905F 993P
~1-
-I
RqR agtm ci F Mpg MU HH12 M.M. P; 9 ? ~ i;-; s 6 W99- . -'t .~ EM ...Z
1814M SURRI REM M9:.,S,79 9-911"~ I gun ;Zgj§~; aps
ci 1 6" '
F RUSH ;§ R E EMHU F99FE 9 ~ 12 9WINS jg-k-
A q
R-Z;M& vnrzsg-
5 On 6 RESH "R§ I F q I 99ME ----- HOW ----- .
c4
,
c4~j 16 ~i .6.4~ cj~:cja v;-.ic6cj-z c6 i ~i- .6--. cq
m RA -;;"-a 91M 9 9 OR ~ 9 E Emma .2-
- "'
Rg-xg -.6;- ;Z-~ s;z--2g -2fe- ;MR I a
g g ----- .... ..... I ....
M~-R -- c1 '2 19~ Ui§g - ..... ....
a
!~? I -
MW!! a--A
--E3 c6 ~i L'i t - -F
~91R, 9R El aq? Rq N c--,i 9 A FREH 19 R 9 9 Hsi - N F. t2 R 22
-I. 1- m vs21 g~3-
-E !g-vl~~cj gggp:.~ g.4-eacj gega~ z f,6,qge ag~: ~;gaz z
UU RRM? HIM Itnu v
RX C"".
g-e-;zm
ce.,6- Ieg
Una
t~1-riqVig um spig app nuk
9 9f e-v- SON! oux
;;c.--. -%neqg S~!aggjj mFs, g:!~?gv S-3up ZRR apa
-e"F '7 -1 :a- -
HORR
gsip
HOU U199 Se A 5 -,1 C2 a F Z
199-
§
g
-V
R1299 OM UM p. ! . . . P. . . . a . ~ . ZHU ..mi .,% . HAIVE . . . - A V,
5 2 R ga;E-;;
. S-
asss
-
-gggg g!gk~-, pps? --- MIS-- Gf- 9,iq c6 *,qc4g
i RESt F. M-1 ..... R..... I 099H .... I 9..... V" ME ~;-; .. F A U2 3 1 RM,
9 S I R 199P R gz;a;k,
- "! - -
cli It-t G,9MIS M-M-v Ili - 919H IST-92 4.- ~ 2R--M
ci
. " I- '-
ggspz "s-
. . . . . . . . . .
. . . . . . .
zzz zzz z
. . .
. . . . . . . . .
. . . . . . . . .
95 a
~-*-g
~:-g - -a,- -%
-
. . . . .
. . . . . . . . .
.
. . . . . .
i

IMF
Z1111 fill llff, PN ~-Hll ffiq
. ..... ..... ..
MG EM-8 A -a i ~_3 9 E 9 HR--=v3 Ii HE -&a 5 -MEZ-1 -g a
I. P:~5- MOP-
a;;,. 9 HM -- !:-M- - jv~;! is. md . I I 18- E-E i, 9 awi I ~j. Ms J ~R
TM-, -glw Hsi- ~ '-t
-;-5t 'E --- §1 6,; 28 'n N23 1 IZ-191 S9
2 EV2 9 9 9 R i i~& i-~n 1 5511 Z-J Neu I P-4 Z-,h 'T~,g el,1 'A 12 1 g i t
1 19 e, OUS WW9pt sp.10 =!311H VUpip M~O ~AYO A A"o
Ru i i I § I A a at iii I - iv g ME
NECA A OHM ~-qv~e figNi ok-m N:c_~ g
f CE, 9 1 1 Ei alt 'giOl 1'9-t 0 is :4 V1 2 § t2tU 9`3 'E 't
win- ian
P7~:288
~S_
Hiiii in-in r-T-111 igtri l 12!3911
, t-rm. A
Wn -s W"
V2 at is V" 1110 UM illbL R19 91,119 M12-
V; K.'A ie Ems, _Mg
8884A
-T, NVE g8--t V "t'-'VE s S_
- - - - - - - - - - - -
P3
- - - - -
i2p - 2:~ n n Om zlgigs! ga-Ng
. 13
2:4 Njg8
pg; & , ;G
t r, W wa- _"EE - M -St- -
"EM -F. R g "2~ T g _8 2,*. 9_.p
-8.6
i;s Na j;
" a N - 9 ~Y 1 -2
:ua v -WHS S ~
g HN
1- 3 2
g Run ma- g"3w-p A" 8 R H 42
9,; 1 '& i MIR ilii '§ii-111N-1tb
_91-5 -g -11 P§ -g SgIiib
t:4
Pt ZI A A Z, I t
_ §02 1 j
%ea 9M e ZL6&/qujM9H junplAIpul
SL
z
v

160 Indhildual Rotuma/1977 * State Data
E
A
T3 DC gv~~!K ~zm,_-M ;z
~ 5au 2 M MU RAN99, . n U999,1112 . . . ...t Rg_'~fls; wtn't Vol cl~tcr Lq cl qn cs I- ~_; 9-44-
H 2
g,--
- ----- --
OR 0- M 99E MIN
4 9-- -I~ - 1-9 _
z iRa 12 - - A tz t_ 2
~ ~ -6 c F~
ccr
c' ; : c4
c4
. 4,W . 6 ~ j
c6 16,
~416_z~4
@91-9 g. Isnu-3 . . . . . Fugg~ . . . . usu
;Mq qv-tU MEE gvF-v ROME t::~R§aR umc4.
c6
Z-FM MPM HIM ULU! _R
ci 16 c j ~ i c4 C6 cj
Rs~=s
-1c.1
Egksg -ig R
15ZF Le"M
c:t VMS 1§
-6 _w:1-, z.4 c6-
. . .
A A smm grim
W291 mRs F;4 RRR;Z- R
~i_:
1 991- ~i -I-sZe R99 p F R GIEM RME ~FUF RW R
.6 agg'"N
1z a H-H 1II_;!f 0
P~31r . E si
-919 .5! Z~ Fi
a ;_ c4
~~6
IM
115, a
. . .
c; 11;c6l~16
9ss,v2R
1 __
~Ngp
'%~
H9§9 AUK ~cj.;I~g U0 a~g, .6 ns FI
-.6--- ~6g~zz .F..Fc6a-: Eir _: iit cl;
q P um 2
.6 ~i
- z! -3 Elt W19 9 OHM Mag~ RRkri~ R IMN cW Aqv~q V-L
, : MAH 9 1 a
~F LK..F 'df e
r .6 e _ 7 . 6 gfc r ~ ze
V I_,L r
99
a.
12 EX ;e-.P I M Fie
g A lpt.- I I:
"AF rp-NF22
1!! 3 i-q 3 A 1819 F 5-1 9 F MP RHA MR? 9 PGM 9
c6 16 ~4
n HHA
ME _§M UM UM Rt ..,L. si'll 2 AVAR UM . . . vFIR . . .
RMUEI~M 99AH % E'I ~W; Ar 7"SH
c
...... .... ..... . .. . ..... ..
.... ...
ill I if.] I HIJ]
cj
cli
CGR 9 V. I R~ M ~;"4 21 9 MiH 1"UH
c6
...
iiing MIgUr
'.SR
5
Ii Eu
I

0
A
z
a 15
Individual Roturna/1977 e State Data
MO gg 15 S 5-
~V . ~ V
W R'-! Zlqr- ;t! 8 1 PUV3K
1 `g Ps,
909F VIM
Rw
a '2% 5 H; a Wesx RU,
ar 5 M
Mag a w ruj-n wag ine m-F ;;N 95 W
65
E-M EMS MHk ROME A m~Z! E He Is 1H.RklecL ~R§Ivqk aM§ an 12
-It
KM
-6a
't 9 i$
0 5 ~ 9 iisfi " 00 VON 15164- RUM w .99! 9 9
11Et 499 . . 9 RE I R S N Z I P 9 HA k9FI-A F I k4r_z N§_ AIM A 1~ EMIRE .;~ i . MA
R- M: _~ a
9`90
K W~H MU ki M-e IR N Eli A I." @953kz U&iv a R;_2 R m A5!k tRn
` -~
"t a[ ggggff pg -.6 k 3f
R
-i nsi cL
?
V"~REm
XX'ka
M
-
i
d
tz mx" - S I
H
5
I MAR XWE i YaR SF-91- UM RIM UARA VPIRI RIM U I I
- -1,% L~ k - Ci -,q -t ci~!*[
- .
' i- m : :.z
.616
E ~ g - 1 E ~ ? _
V-M!~ _ ~m gi
X
7
z
i ER a S Ei~__ A F p=: a-t5p =;!.c! Vg S
un ;;z!-o RAI§q *Ukk§ IF-vA in, I I
1. ~ ct-tll~lq "t 11~1=Llt_:-
ct
SIR ;; a3 if 3 48S.'s, a a -N`- - a
A RE ii ~ 9 Alm Is A FZNU FRAF-81 E1 §1
~Vlglw: CPU n;903 MR G-2c.5
N Hie Mqgts~ SKY 8
p-12A R 4~;z E -e Vx?M
S~§- -qa-g V§-4~2 .9 R2 gg! Ejg-g 41~-q'i
. R RR ~q Z!-L ci !k 4 cl
c6~ SrAi MN; M
VI-H
SIM P.-9Z_ E Hum" Mvk krzg"F k E-1 F 9 MH 19,Ri UHR RHI
S.
W~
BE 5, E,I A UM2 i GOI'
M
a RUHZ-Z ZOO uapa
n
-W2 a
HN 'A -in
MIN RUH 9~"XA M MEN 2290 GROU OM F-.,99§
8 §~iia ~K;Ug Hun pn §--§A g'E X§§§g Rkkk
4 -
gIzOi !fg.;,6.r .
c6
MO
004 HOR i 9 9 z? 9
Jj z nills
9011 M2
161

162'
I
A
l
F
Individual Rotuma/1977 e Stilte'Date
ROMN-11119 Hgi5i H-UR M~k XRR9? M~y ~44~- HFlk ,
"Hi MIME ~,d 109§1 F-DRes- :;;: A~Tpl~;
w. . Zi -77
RRUGR ARIA1
. q A
PAR9 $13 0 E $119e
MH HEM H999
.... ;~ . -
"MG6 M 9 6'419 al
~.dcq-z
!2
Rf;F§~ welaR AA
RUH rRA99 Us'"R 89 4RE
-~,% -I .
!A,6;!fg Fo . ..-- R--AR
RUN A
li cif cr ~r w
gj~~V D; I F~
-It
Men- -
9 9;-z RUN A91611 U15Z 1903 MU HHUS PHE "I
roUN- mr A gnME:
R 19M 499-0
O-JAIR isgil;i G
rl~
14M AMR
ricq-cj ml-&
lue§Rk MFE 1ZRRRr-ZLm- "M RRU MM EMIR
9990-6 1090% FAM61 495V9 596H
'If
M-9 F5 ~1
-6
MzO 8
cj
s8 A
aa
M,496
ciicq~re
M~-
-7,zdg A 14
URRO Up"A HIM? 9:~:§FQ 99 ... V919 ..... 9§9 . . . M-2 .. RIM ..... UM UH~ ~9M MR
.,; 0 HEH1
61i , 0 m men H gslpg pip 2-zg58 PUR
lz$i acif cd 'IF ~ MR. c4a,,Tv;-: .iL6c6lTcj -e, -7,
N'~ofci-z MRV sV81A
--i
RM"R
lq-q RUH. lag;z 28,
URRA F~Mk
"i - 199U;"Zr N!
M IRMI RUH ~U§
ygl-z
As .4 -~ - Pil~
sfi alM gfyg~
i SUM HNH; 9 a E; 9PUM DI; c~,Z19 1 ?AGH UFT9 Ulg;z E 22 1% F-2 :13 ~F AM
-- -----
REM
i
;M99 169 1c6:
U591: ,z ;: 9999i - -
gPH,~i 8'H, P! 9999 H FIR19 ct
w- ~z
----
$1
..
91H
. ............ ...
Hill III.1 j:
ilf:1:1:
I 'I'l
oil
:a So
bf i, j

c i 5 2 Eff f 9
III III fill [if
P - - r,
p:A- Uffs M1199 UM P:~ 9 P. a - Z, V,
8:2
9M'--Mvii - -anpOli --- VE - :H iNm- oing Hag go-ml CSTH On -:,-
Up"10 EMS 9 N nw IMEA VOW HIM ROU sisin
9§91 HEN Vatsi~ 1-3,R'M UTU'a ANN is-in Hligo i_0 1_0:~m 9 IM
AdpAd z,:9 SAN
UO Mieg MllitV JMOO J J J . 8-1 J jc U s"M NNAM WSJ g um na
Hit VE-Z.ji-sm, 1-99ow 91SAR 91,91t 1121H §9999 §199b nulal VLS a
A 4 ~~2 90100 MOO Mil Nh=~ tw~~ HM,
M.SA HOY wqsj
REME W& 09 IOU gggle. im rlOm ;-Ay HE am Hili H&H guv a-
g:t 9 Al:~ ~li 0 uni OW, A ~ M`o 0.1-S
ME u MIM :-Zigwag mmi91.3 91IR2 t NO AHE 992M ANUS 9SM's Mgle all
Pig Mz:.w.,.g
'Malveg OM ISM "SNUf Suns Ms~ I !Rgiag i'M SH u BEA
9 §1919 91§89 Ag 19 9 Val UgH Hign ~NH25 ISHER,
ASS pS. 4.;3;2p3 y.13~21,3 pvz_=~; tsj.
M'~ I & HUE: ~HM 1110 oul Ining OM mut- g9j.1-2 9,8_50,1 _900
~JO :'P;s
t? .4199
pig
'ex,51,44-1 mxdlem gu:4
- _~ 9 j..
29-ki -- - N 1
zgdol"ms' 25195 URd OUR
-_Jd . 3.
!1!2 S2
EH
E ~~...a Mg, iAM -9 1
E 2292a 6.991 105t N91 i fNOV 99M 5T.:24 h
pv!3_:~ J.91:jzjs Jos !2mz;j5 NAg!.8
4 N ttfdt3~j ZY-lds 10919 g'-121311 igae~!l A--'anst l3a;v=:'e to2,&,-y6 ut~a§~;
c9t awa 9M * LL8&/sujnleU junPlAIPUI
k
I
'a
SL
11
lif
9 11SL
it
if
it
0
if
SL
11 SL
a 0SL
11 SL
11
9.
11
I
9
I
if
if
I

164
a
I
I
p
9
m
I
I
I
A
.1
9
a
9
a
a I
a
a
9
9
9
- Indhridual Riptume/1977 o State Data
Rsdik i-fRofa-Z rprq
20919 ER!91 HEM MH 99§19 HM 19HE AH 8!
PHU MRS- 199H HH" RRRR§ 0411 zskkaz 9-M~ HHA AM
0 ~ p
~'Xsgr- RUH 9§194 RIFM~ p9M ~UIH IHN~ PHU lqew§s?~ FRU HEP
gig -ogid ggg-ff si& ~:g-egg g-.Nqt
pon &H
U14§9 AM& -A-Ma -2~§f I Rko~Zv HOU §999V ;~TZZVA EMU W9
gggg!~: ig~gajw
OF A
gggjg. g~: 509
~i c4 a
MH HH-:0 919,15H RUH RIM §MSUIZI IHO EMU 8009 HOU AEF~!
m:
- unse gum §RRV!§ -r0k4I ;up.!Z5 OHM ORM UFFF F~m Npa Fskak
HFIN 9109 HEM Mple IFM 9§01 HIM P&M MIFIA 999.92 HU
Up dqp -40- gg.-d
4~5-00-1§19sf HIM HHE MR& MR&IMF MM: M?99 10~§ ZHU
vt --- FR N-V
HH9 IUM EW99 ie!P9 HUN HPH-mejm~ PSMRR
pq -;dqg ing `-ggg W"Ej
lt~i-~
ki ~ - q
995~i~ 99VA U111 W91 15911 MAR F14MA ZT-Us, EUVO M-19 "R9
9.990- ;Z1,4991 95k 1-95 ~ Ri -9995: 0§9`315'; V 99-1s~ E~-991999 st;. 9
skm kkqk,3 mag lugn ra R ~k4 ? 19 i r FE 9 9 ~19 'k MEL R N -,q i ~E A-Re
RG-§R§ FEW 6999IF7 5999:1 1RUP 999tP'i 9,4:0`~ 99999 lci5CZ q 9-80!g U'd's
:=LIM Mv LIM
:§ I :. , I I 's :, : : : , ': : ~ : I
fir
I

Individual Returns/1977 - State Data
M: YRUR
M 5Ei ag sf
- IRU R
p I SWER MpRk fzf~Pgg:
:!9191EF t9;%G @' 18V
iaslgMi
UAL R R R1-3 099PR R r F 9HIR
Zf
ez VU8213 95: cr
;z Allg1k
Z; tz " RE 'kni RM99 ~iimg§R
;go
I s- 2 .3 a
F MUZ Mirm~ ii ~ Z MIME
_909
Wolz~ rft-~ PufAm OUR- -Hilif 4151ii
HUM i~ a 9! 1 ___ E- ;:
-
1~e~ F,I fi A se
PH
- ,
?
I
09
V
155
IRV "
c2
1_4UM RMU UIM;: RMM;
i Num AIRP HUN H11%
M9 5 Ngk :fg 6,
ag
R~MR§
'15 R
:1
E, BRIs-URP,
AEOPU MM!x leun
RUN NiNUk- F!§' 12 Ef If!fit a1 1 909MN K-4
U?§__1 A -9
IgtR
Evvaj
q Z! E21 9 a Lgn~f §~m= n;~q~ p1ju imitu awn Zme
R;Uvid HU '!~W H lg
-; kRcMf"16
-SI5§x
19! Lg im ; Z A rgpifg, 99
Epurn z g F N F'R laggg
0 0
. . . . . . . . . .
CUNENE
flflu -
It
w 11
1IRM
.1 Bit
HIM
z1d;;H9
ARMS a gqv§!~t2 UI
U
... ...... .
11,11161 191121
i :
- lit] V HIM HIM,
11MRIBIN a 15mal ====
16.5

166 Individual Returns/1977 - State Ciata
'5
33
2;7jV
-.
5-U P ME; : g at
REM" z. pi"Rak RR91
cq
w rz
s~g G
c#
T
a-SIR
~ZR§ Rum[ ong:
fflw Kom is F.4
cp 'd~
MWA
g-,
~Joxu Rug:
V
rk LR
-
q
dac-f g ;&- : R ci
11
Inn
RIM
Vj
Q MEE R KH91 4. c-
- lm
RRkt:: t~'§ =PAIR 11MV;: Lsjp3r:
R 949 !
Mig
HUR11 !Vinnv nikIv
sgnm g -L
MeR - - -
MRFw Mal
V RA V
Aguns king
k-R R&I mime g
R Rk
. gR
M E 9FF
iL R PH;
OR
ccr
HRU
iU
um ~.c2g~lja jk§Fgj~g &,jig
le9R, 96 ER 91 Hill IRA-
If as
RqR=V:. ~LsAq~
un,
F39F"
1 -j
i. lilt ,
111111 liflit 10
lillit It
HIM 11
flaill
nkkkk I
$3 RU
it
c:pLc;g

Its
1,8 9
4
F;
Individual Returns/1977 - State Data
glRsr, mm in-3LR: ik MAU[
isfiEgrig gzf--~g Fine
iks- g- LK 19R !OV4949 KMk ~st
A at X a FN9 5i R, MW
R Z 95L k gi
92 cn:f ~9 _~99-dgg siggg22
FIR.3R!q~ EE[i
~t iua-og
oo" M2 Us -
o
R ;, 7
aclr
F9 E
.7 t
--gEi - a5;9? F4
!?99g5i_
49999F 5 RUM F3
2
x F3, 95igH __._9
-a ~gi_gH PHER g 'R g 19009 iI P"-Uq U k2
V
gfftxm~
n 90ARF'i
'IN
081
!:Mu lsmegg H na 511 i RUM FESURV k
g to RiF.3
0 ,~, -;Zia
9 at0 5 c§1azi
N q g ;,g Fm§!~ ~ MR 9 A i~ WRIZU §0U:_E" FUlkBI Vm:E=F4
. .
cL---
99-.i
APPRIN 014q
- ------
g~lqe!
-----
Eig:::m zgmx~x N44ipg gv~Rin
c;, mikk 5ingsp pppp!S3 MIR
~,~ 'I - cr ~j
Me i a ~~
ig
-
is A
4,11N Iguip-a't Usie.6
DR N 55 W R
OPM HUT- 99FIX
9-V
ng
k iE m R §[RRA iMe 3 z
H
1
'Al
apmi RwgI5 I Fun
gg"'Ki" Nagif R
RUIR
§VRKA!~ UWE" ~HWM RX04
m aniks F aIG Ea !9RHUt RM99
PfMz
qe;:§1k liaml Ij a §! a 12- la min
E
g ~_. gg
§ § §§
§Rg
OUT H1111 9ff - : ;;'; I
1911-5 1 U-1
UP
m6 HIM H §§§ §
51,g=
z-
man X§ x
mmar.99 HERE. m
167

168 IndivIdual'Returns/1977 - Stati Data
Z
R
F ;R A 19T999
algig; Pug 0 E 13 mmmto v al!~- jp;Mg
iZ
t; !a RaPP R t~-§ ZZ
R ;:Wpi r-
UURF! HOU xt~-Ug!r. ike R
*m!apl--Zsi --rim S3
MIMI lumIA& RRH C-29~ 9
Now-e- RR Sf-;-i
t8
Rig
RziW qvam-gz
.f*m
~ffa-lagsif
av
zz
V ~P-Ilpripl§ 11MR4 SnpmRR mmm
=P~ggk~ ;ftggi§rz
"Al
n4x~§ FS~12'1;pl e 6; me g
e;i~t -
io i@ RI;-; nmu NI SARI~Ap ilkm§ §1 12 gg§2L3
-emV g
te 2!2 PMH Mi _t--E ~::f,
a §gyqG-Z- 99 R 9 R§Wt; 3 Elz
sfl-: g;fMflag ~sf-~
56ie9
He V,3
=M;fgg.; gffi~
pj
ulg Big!
RH Mvp MUUH HM aa
VONg
-kARMV
9 r: 9 6 RE 11 0 fT
MUM 99--P! La a ig U-1295;
- - - - - - RUK
--R, R'-e
R Hag
f
1 a:95t Gf 9 9!9vfx;95f sl 09.'~ R[OMf9 R
HIM! 9FE.-M a1 9§051 HP PPERR
Fit i'ViO
HUN
HHH g
MM HRR § -;-;g 'j '..-
I
zar.356 HEMS Oar-
Z; 3a5
12

0
I
0
r o
. 1, 5
F! 99VER RUN[ Ubi§m R H50
Individual Returns/1977 - State Data
§Hp
1 16
E R R- k. kf PIRFI§ Milku psak
s f"
gkG540 MUM
.6 C',
S.AJEq! 1AR1115 gppg~:: I R~ a
F-Rikkv--s R1 TLF,
= --eead
Q C6
.6 5i CRRVV~l SUR PR§R§ immag[ ssugg- lRima
";z
a F UPR 5 9 § M1§ 9 R!:! 91 F
!L,!~fv
~R;::359 N-r R Umlii §mml mlklgi czkmg- 85:=n
-MUW7 9MI'mA
93
GUMM
m
URRMH §nv;&
--
uqzq~
C%
2i
Olga* MRIM91z! 44F,992~ d,-Z~iz e ie T @ r.,
~FRR HEN
L mk F iR2i
-R g-4 I
plima DOB "'IRRH _ "LU-11 §i F a 5
HOUR 5MR;!F4 C2 ~j G? te V HER
Ulffigg q M,1~ ig 5 F. ~H';Fag- C%
~ 5
mum ~=-WRR R- V Is §j~ R § g F-. I
T -CL R x g NOR d-mg
91MMU RR;::1jk grovon P k 1juing gfpF,!Ru mlawg- gong
pliji HIM tit,
all
§
C~ c%r-e
I11111r. 9=11.1516 §AWK
H1191a figar.5
V
E
...... ......
SO
at tit HIM HUI .1
a §RRjR§ Huff
astir. t-jazeng 9111112. V 2rrg
.
169

170
a
ip
It
lndivldual'Retums/1977 s State Data
1B
As !sRof sixHia; 41P P
ETRM, 1HUM9 IMAM NREMIR
*91t_:~
--- ------ -
amag mg-eig pRom mign
tff Id
MW
911MOS; MME11 RVEME
~z
isMA
Riv-05 IRN-Rivy A 0:04 A
6 tei§19133 M-M 929§ 9!:_@FR
17919199 r0l~'E;14 069" gMs
MEU IMMA ffikaii~fa g! §s's Zo
1z
!.!~Flggss yi-R9.3 1gle- Raw
RURRM SHUR HMO R
gggxag Kpoy 511;
ravaim F'Rggig qpniv fikllg4
X
@M__s3 ;RNIH RRMS Him.
O-UVR miia 99if '146
M-2919 MUD 35HIM!
7-Hill '16161 M_99'z qj!;_R6
21992 rs ZMEMH Hpu a Bi 5ru
offigig Hakil HUIR U-61
A 9999 ~ 15 -9 -9 F6_5 15: 8 IRTA
UmFii~ iesg`!R~ EMU RNFEEF
Mp-~~G- 5914do Ugft
URM "U" MAES Milk
. A
16 1 AI I V_!_2 Ya MIN
La
gj I!W-S 3[k)@§55 R599v- HM.
W, 'ramig x -,f
I
TR
2 Fs 1B 7. nun omr? snm
gga_
_s9 IQ -
_~ik ME R g mgn mple Ram
-
MUM 9951pils Inionx gugg
1911 gqj 5A Uggg
EZRA mk 9911'
0 0 .1 mIgg gmip-
P; iif-, gag go R-
i~jqu gaggg p L4 3 nk
mign jujiga R&B§V- ping
q~mjik guv ljpnsm jum!
r: Riezoll R=Agn Lq&nq~rj §91m
Ra N'ilmil PR a 1906
wqr4ii~ graml -RR~gLm A 19 s I
999_~&;q !eqqxrl qvgtg"~- P'Niggf
F vu r 16 51 F 10 Fg, now Rugg
R699 H ~!Fl %MqWgg-; zgggg
H
MOR9 FHRiR.~ mFHU1= SIPME
ogig o~flf M32
. §§§Rg HI M
Hg ~§kk
F*
,s
A
kill Ji iiii
Hill
iii i1 1, kill will
Rid
§ § §§§@
dM19 1§11H Ja R . H, - R 1
Ar-
-5511
x
l
ffll u g
- -
2!f rm 6 rin
U1.111

E
's
L
E
5
Individual Returns/1977 - State Data
'!;:UA
V 0 le L'F . lem
gad l - at- :;igiig
gri le FjWgs
sag
122 URR Fk
M5sf
Z
HEMN ;:Ww: k m
Urm
P. R A
=-Ugs: geg G ikst5k;!F CREW i2R H ~i
Fs F R! a a F 9!
jr sff!f sr v -9
~! fRFWP
P ZVI
a xm§LR
;-7j mrgg ggggg'L G1E!gt2.-e I D
r. S k E p § 9 R c~
RUN Migg 91-:_1
cc
a
Sulu
V.~~ nn cl Rik Mm
MRR
-sfM6':9 F6-Iqg§ psmgd
-9 _g
0 Ms;~;! 5 PURa. F: ~§mu
zs2f NUN --z '-, T SORM
P, T-. F, V, Fe Imal! saul: V21
3:3:! URI
r. a Hsi
R BUR
V R ! t !
1Z - sfI
4 OMNI
aaam gall, ,, if I :,-
I
kill ,
lum it
,
:
mill it, [ kill.
WH gj
_'4 v'*6912 Ur.
WH
m gar.9
JigIII
JR55n Ag
I a ar.1169 HIMin_01
171

172 Indlvldual Retums/1977 - State Data
P an
EMRIFF9 HIMM SPEUgil
~igp:g~: 5RErig -
- ~- T
6
FSgl .2 iE -I
A A RiH ISLR~WR §951W
~j
11HAR
I imaqqj VIE XR:: I RL at Ima iE lon lmvm C-migir:te mga§
HEW R;ORH REPRIN gl-a?94 I I ~i- 9 L? RREM2 U 4
mHoW "IUM91 REMO 59RR%-~ R
Is U;::Rq9
'Sal H smi?!1V
9 - e
N -- L-- v E le
--
URRAV HFF-!lS RUM lg&V~ 5XPIM MW-:99 MUR REMi
_ gqg-q-~ik jjgf,,F
F Pk§~Oo Halgim ~!mvlarz 4 F4 ga-I.mia n1§40, nuoes~ Ig g 1-e
HHE.§ M'VaU
al- RUH XUR
ME-- MEER Z
F MUM MIM RM im R%U;z ~Hgg~ a 1~ 9 ig E A I
1la:999 9.1n: igi;6 4-Kr *fUga ~gv~qge
ZAHER Aq um
Ugm F F3 R
aglisiig: WAN; Rx 911909 -49 -~,Mgfgr jgf.,6~i 'Mill:
z g0kRUZ AMU Xzn!ikgigR -mvmi ssun 5iax-g- --mr;e ;;~Etxgl
Ni's F.
1,1111-Agg
,3
V"i": KC6 RHUR
ik -4
EMU i 9 Q19U"
-- ------ -
FAUR
~a-fv
ZIPNO
MIX
q§M906m - iigm; i~lp?!Lm 699 _ _ gW': ;g~6 M
uft
9 UpRkig
-r ;;
-RaHl
HmF immi G-REp
:51golea 71"liggg W;
PIN H 0 RFEU-In lRakgapg nunn
Qfrgggg
5
INV-
Hal 11111
§ 11jit
HUH Hill HUH Hilt
m
RaR A M a air, r., r. aa ba
.5 EAvii
ggggg
§j

15
IT
a
kV,A191 R2L CUM R§M:
- misnt ' glor
F
Xe
R Ugio.
R Ustswig G! , ~
Individual Returns/1977 - State Data 173
f5 leU2
FFag
~i: IFIRRiZIN NkFkli Rkg~-- -j~ rg i~ ig 5 9
6
m5gi milism
HUMR Ha nw- q~mq;@ nug poppv- t::pig Iq
-4!2;2
`L`N
- F-
- -- ------ -
-
J;6G;z9 11tNicNi Ma- MUM
G GG
M89MG HQU: t- I S; SAMN WR
P;M~ KERWX 55
T
F 5i i~ kisig
RRU
- RR
MUM EMM&: "pa 106;3145~j mrg!j sagw- anan
4 ERUH
MER;5 ik
io: I
UZiU F rVUZxx -1 kEwRk Vk-4
F F,
.L
- 12` xg
~HEH
iggsl12-
cIL F,i i 9 91 Z F! RX-3 5 F
Zgggg *fpf-,z
-afgq &fsg
V !2 MUM
R~FNPP-! HIM 2k~i ~2;2 V vk!n~ ti: 6jqvR§ L2RVjR!F! alkV i&RgaF
FIRM;q ---i i~ ig nun AiiRaR iklolgi! M2 9~ A F !!;?RIP
gf~!;g ffls998f5f I vgzg~;` % -;g mRIM- Nava
i i's 7~'a - - - -
EHER @V;:M- 5,e!- MUM nrgi= lq~. c1t
a zi $qmt-
a t:: 3;: Y;v! mumu I ki x
Ri 9:1 ii OR N 9-1 294 ;go I
99?!~VF? MOM, E ZI; Ri UP ME:, RRHM
AR
'12 -- --- U-1
J,,
alitit HIM Uff a m mil HIM jilit.
ink J§§§ a
~1515!2 M Ikkki URM U,311-r :2
R R . I I
I Assr. RZ1,ZaN 592;

174 Individual Returns/1977 - State Data
ffifflu
nuRp LmiukR ERR
rf jl o f 4 Mil PHRA
V
r f 9~; Or l Rli§1 ':
%1IFS
r Jad ~ ;Sftimt; rz e
L a G w i~ Roc : g- ` Sf R - - ii
a RUM RMIA @9999V R 14 a
r. ,qg_-, g
15 941-299F HHIRR H P!agi
;5 N99-3
gggrg-pf g~-;; - ,
Ir
r,
mgmg kisxua qv2n
m2 - V_ P HINa~ Say Z- 0~,Jg
RUX"
WEIRR :Eapvta 284&!
I
mu j P migm! nFams
IN H FJ
MUM RUM Hen* ERRn
E 9HR45i e xp;mi ugng . Agap
. I N _ gvgf I g -
gRz % MUR WoRe UM
L3RUH i~UU RMM! mm
g g g ~z5g
I__m
.3 RJ~Gcq §ginn i~ aR[RRY
X
f T _.
fflestq-~ - - -
gi~m? Ei§~E;_ZAR X~_;§g2 1playm k Rim
--,Frjjj,: jg
GMW 392R
F
jqajgm~ r.&IRR
inp-egg F'UmG ~zmm
L
9M~Mqf Gler' HUM
R;ZRMtfls D; at P! wfl gmgimk
n 12 te Rv t-
RLB=RS-1 ml m 28 ZN V
,M=~ iR
I lmn!n mzq§ §;Zm? N§ u!
IiIIkk le:iiFj '54!1 'SZ2 G~ iff 9t
i Aijaj~eg G§g~. vmmmxg glis§g~
t
. 3H,
qlq~ CIL~ SF;~ -
"I Ec!
HUR Mg Fq ~ Ho HH "LP
Nf-~ i~z"- mr8§95
_RqW:_F
Inz Rpm a R g Fa R ymiu
HIM ;961W
3
_pf'sm 0 C6
: z 6'9,~
Ur
HOIN t_2 ii 5i i? _G -2a! _V
12 _ 1!9M.49f ~7-;,Z p2cr g
E;eii _
RE a § 9 3 RI-MU4 ~~HNH 9 -7 3 1MR
UN
. . . . . . . . . .
. . . . . . . . . .
49 I WC; tit Hit
:;f!94H2r' HUN
lit it ifflit It HIM ittilb ist II
JJR§ Raid Rk
HHO kkkk
P
I
RUHR %1z
zfdgzi_~-, F353H
R

Individual Returns/1977 -State Data
iigiFz U§rU HAR MO R 11RHM! HEW MR
numg glovsn sup - AikW ZUNI Bi- -
RUM A;_~! ~Hgi: HRU
"Ri f
g
p g SN21
nkMff
ga
g 5UHU W&HR SUR: 1Z=FV
gcisfs5k 1Z U N 925,z I
CUM" RUiNk &IiR'2 ia
olin RR*
mpg! gme, goppi
NO
U314 sk RE 9 iK?3H RHVGI~l M16M,
optni psz 5! pvp- mc:
g~-ez:!RIi HiP nUR
jlg_ -Va.; R! G§PF: WN
SING HIM" ISM Gn S3 ~f
mok ZUIRRik MUD I&a71a
SI R six,
magn 11AMMi MIN: k;; 2
k EMAP, ~RH N URf RV Mae,
. PUWRi HC_M: IRA$, m:
mH
azaiiliifg sfargufaf;
MR-Hi oi:_H99 Ujimr-:
rz
1,ea19 t-
I UR Rig `2 RUM VR~Jvv essgs
llfmog~
'RIP
tl:: g a t_~- g Ei R R;-z g kmsm- E R R Fg-
Rimc-2 pmg ngiosi: uns
R
4
RaI F, r___ U2599 PaIT
Rilki Rgixilk RR-P imin
1
12fil,2190
~V a
F!~-i ": Ing
sfig-Ms" s6_-_-_sN - Ligm a? 'UUR ' g-aswa g5f- we z
..... .... .
I-Bid 191121
§ Hillq filit! R§g k jj§ §H
§RW
pijit HIM iiflib
MR Ron
RUM HL3 1
flagam =~ftfng 64-991
, ! -
dar.5i Isma URM H11
:T 4e V.=V~MQ sfsf- P -1 a;;_ Nfil
175 *

176 Individual Returns/1977 - State Data
Hill
I
yj
mile snip
Polls s o Hill
V WIN 101111 1151" Imam!
wail Oaggy il-
9
MERITS SHOE HINK
i MINIMUM
W-1
Ung
RgURP, W-e§61H M1XL3iiw S "Rig ik
5 3giull -Ni q % ton - HIND
ic -M-1113111 1111N WIN 011110 , 1q,1111. SlIg
NHUP HHNIIF~
fiP", L ! 5K~`
-7-
"
Hif
fill Cl
PROIR 9P24"I 55M Romig" 11RAHi R" wii~
ug"
Eggs-! *pe~jisv i~jpmm J§ RER ngv-n Aun
110§59 282M z E RR AHJUR ~-:RHRS ikuu~ ikaqu
WHR RUM U1110 NO,
01!
it
1 1
- uvq anx i~a iqsp~ 1q. a I F
ig ~i,~UFR WX AwyRy any, pyalRy Algae? Fjt-R~
111 INME65 HN
111
UWE RUSys pzav! im D-;4k
51HE
I flflalfll 111; .
t;; kyyy 11yalul spygav yaqwk
n ! 1-1
z- X
- -
~ g-R - R-HP5 nzlggo!~F ~-1in - ' s
I I Will KeV195 W, folio NOW Hini NP- is Hick
0105; - WIN 5F 11 Min
win tla3 E ,
fg g: R
15861V is imam I IN
A T 1 WAR lijid 55§§§ ~gcl
ZEUS! loss W5 yj I HIM 111121
----
Wit
1HUH 10
jigink nk
§
anna,
w9d BURS, I R§§R
M f
159

6
Individual Returns/1977 - State Data
RURF SHM PHU
FQFH§ 45!-Viggi MOM-- Ma HW_:9i;1! rZa[REF: MUZA
NRg-Z
_n
12
8
angs !mpikk ugna Fizz 11r
99191z
44 M;d P!,~-
HOW gal a ga R;s s,= ME S3
Rum 14441
-- ;N2:2V ----- 2P - NAVE
3 cixikkrz MAUR HEMP
g IR
URU
U3_R~ -: 12 R
9 Ri RUM k:URiUi VRU~ R!i%1F[= gk&Ri~ii 4 FIR! Es
S2
f FE'ARU MUM k1qU;W4r 54ARR URIH~ §MIS BiRIF91
E gq 3~;.et F, 9 5199HR RgEs;; gqaRL~
66
X
sa
c
alu g RL B4 ~R
W -i,4
R E A 51 ~WAg 9;-! m
rZ
ME A F Rgim
HIR & -
2
V
te
M
ronk = Rikp A R;!!z2g., §pp
:x ;nkumi ggLeum mrste gnpzi
j . -&-gi f-g-gri - i-
g-! ns R! 5Bim;_Q up§z= nipm
&V- 99V_
iiik~pgp R5ipRw_ 1ARFU MEPA a SUM Eir-MM
Egle !~jjtexk
M
RgicliM@ X-Mrij ~iknvle Ei.4519 ii 91 t~`w 9 §j 5!:;U19i VETst' 90ME
UM-15 R5RR_; ikkikgl
HU
Ri $ g
ca
Mlar-53 EMU Ussfom goigg
G? - &Igm G4 ~SR
Ogg
s~ 2i
111jil
HIM It...
R§ R
Rum im 1
II I HIM Ittil.
§§59§9 9§8RH
16
fli nk
" 299 gag
!R 43a
177

178 Individual Returns/1977 - State Data
a
m!gRE ?fi9ivR WOU
;:: -M!
I vi 9t-"r&i gfsfz rzv
;-2 9 ~i Pal
.u ~PRH
11EFRUSS SHM; RUE - of
Mau ~Mlgvm Mix RIM A aV4 ;zs
HRiFqL%i5 MALB: H9312
sme,
- - . M 9 R § i F Hz ME: Rpiigi~
Kggigg- c2 gggggg !;Efafg
kz---5j?k F,,~ 9 VORP F Z
e vc2 - - - - -- -
-9 E R F Z S N § P - c"
megm MR-23 HUH a 9 92! FS V
Mo R
IOU
-Avg
9 RIURAF FRFS199 3i F,
9!99- 7F 15 9f FdPF T;
isRZRa?
'
hia S' tR GI
8- -g
utin
te: uki2m
RaRaR URIRZR~ "HMI- I 49V HUR
R i~9H AHH~ Mlte~-: un ig
--- ---- - ~i M9
RUM ags
ORR
ind ;;;;Z; Mad §;:.
:Ras
gall-I
H 8
Imil mill W §11jil HIM H
JIM
mialf
, 2F Val NUR Z. rme r.Sa aa

kill
&5je;&: : V
,~z 15ROM 1RUR:
gf Sig IN 29!!FN;t-~
M?iFIF, UUM
6;9E
1099
13 -URMER RMOiLRE Ulm:
ii-N
OUP-;
;kw
Ks,gs
I.2
;;
:'_isM9f:f Pi9f'%M99 R MeM2-;
RUNS MOR
ME
S.
9kre9
MUR Wifk__ ARM
&sWZN Ur_.~_W - .4 E i'MIP 9 KIM4
AFM? AHERF ARN-MF4 ppim
G ROUR MAZZ3 MUIR
Individual Returns/1977 - State Data
996 9-
ZCRR~V IN-2
lar.
giltBit
HIM
a
Hill kill
%2
Rg J~W§ Idevs
51,1991 !R ...
RIM
V HRUR MORE UPM HM
glief
ms
g 116A R
§
nmcz
st Vim RUMP MWIR MIX
V t-- lev -9xR, cf- MCI IR
t2gle
RUM IR V RE:
15 m R -_~
MA
it
if- --
12'arig
;;4;; sf --a;;
m HaMs RUGM RRU V Wlik
4 - %Isgfj
Xgul."! imin- uum Rim
-M",H 090sf
t'e~-;Nf
.
Hilli i
ga
179

ISO
2
15
b
*
lit I
M14
I -
ar
IndIvIdual Returns/1977.. State Data
ng~jz 4-igjgx~; iivv~s: URR
RUN 2,361sFy"!
~t2:1 SAY 9995§9 9_=1_2MH MAE
!4p' a
- - U`
a IF LBI '~Mjkt?
min
gignin T35ig F ai~A!Pg HAkq
Mpg-
Haag ;4
.6a
muik klka4z;;
Ckv Ri mug ggm~ §;Zi EAR r
_:w-
MR $93 XR1 VR sa
Fgi;.§Ngtqz~ wg1:Rg" nLejk RaffW klikz-k
11 P.3FiY? :_:sUU MV:
gglardif afNimsm REP
- I 4!E:MH RNFUH
c2
jQjQ
RRC-mn ?FURA 9121FA
u?e ig
a Z2 UF 5-t %_ D-; t-ZI _=0H
4j§jt9K-r
W.- :s;Z§V9E
3201901 g isBit R! si EN 28
: I
m FUR
ME Mum Ri
V3 -if gjRuvi~
__ MG-All tu;zva M'6'dtg_~
jp-_;ZpE gp!Epp;
`~L~t - - -
ga';Z Mgt
RUH i! ~f v sj~qtig~ VREN 55unR - _
KOWE~;f Ron
......
.......
.... .......
:R§§ c8,8..... H
...... .
Lct --- J~s
Imil
Has
mill wil ELMS
ill ts
M
I HIM HU
nd
AIRW
lit
HHH
-21_5F

.9
jq
~4~ _
Zdgmgfr ts V, 02
Individual Returns/1977 - State Data
c ;Mlgo
3 ;~!VMIF
_iql
THUMI URIU MURRX
_ Lit F HO 50 60 Nf&90
I V~kk4 F,9j9FV- - R m Be nbilkig Rgiflug gunIF mg
tit;
te r-;z ~ V
tli~q 't
P.;:;z H
V URMS IR9101it: slylliks
V
~
te
kUk
51
~ c
Ut
A R
p T,2tsplf~ka F!?!mqq itrzmm Ing RpRom
a& 9'Z
ImRFA ---WRRzq §mig
IER HU- H 5 =~590 RNAB
F 3[s =4 A! %%
U49099! RRIMS2- ikvu
U11go?
m 'TNi
A
i§gskig
iWe.6 gggF ~~
i9e5go M"MU"f W P,1109 _40U eaRS-55 9MRRoll 990 9
t- 0 McRav= _§ggj_ ..F ~ Jaff..,F
:;gpp&ZR kimon R~_eqrv
fang
sgsbi az : atl~&FN
G sgIggR R-MiRgRi --- - i~ -~s - ~5MR 110=91 ~RiFmiiiq HIF: z g_ r :Fr
Z§ F s R
- _gg ~
gas
g "-sm GG ---- uimwv -- BWZA~
sf ;2 X;~ to e to G~t-r MIL4
RaMOR ZIAW RUMP! UR"
r~zgjjqsjs §:; R Jig4 ptil 12 t2 -
a Vilm immm
gs zi~ r ~6
PF
f .F~j
t~ R Ft 4 BURR RIUM ZURP FIRp
:::S Q - Myld ig- - Ls R V F, ijzv 9
___xR!2U Uppn:: mfflks~q
ZR---G;;R UREM MIM!!
MH m- N RN AR_ iE F~92, Rpng;
1goR Imp-19st gatfig ;2"HF4 50U-A_P!M HR%m_ KFUR ZHINSF, OHRE NawLa Igi ATJ
61,11 a
KIN. 81 HN
Fp!p~q It!R-ugg -.2 @ P RM -_ ~g i~ Va54
-416 M r. sul-s Ral
... ..... . ......
Fg RA"Ek a RiUM15 sirs!Rk 3 to 22 sw9
a ~:;z
M0.1
........... .....
i-im Hill
-ill
§
it HIM It
RE Rikk
Imm mon I1§11,
_111-5 !~
181

.182
mg
J-q
I
7
Individual Returns/1977- .*State Data
ISM p
magigi ofi, :e ~:-r - --
RHEA How?: ~L411!
Vj A F. -3 ~!
§41m. 53m:
RgivIaR
5.
H -_ 15
-fi 7 ;zi-P9 E- 11 F
SIRN
Rp§F
R iq;!MR HaRM klis, I ssvzl~
~Z-nU WNW 9~=,IRNR I FARPPRF ~Mgt'~ Aga: 1 1 URVA
k6k
Ej
- 919 A
ig NR IRK- te Fj V- 4 V
q
kPIPPIU,
IntRa 51IM-011 Viaq
wo
ponarg Rap wpi Vps R p-51
04M U9 U
HMN RF9451 U19
IWO at
1111firs.
Mig"F
;ZffF§R Hi- 1 1 HSU
2
mml mJR1 ~jp
RR XR UBRAF UNR I I Ce
19
t-RRRF- pup R1314 1 1 Im-21
RUN HN
E
...... ............ .....
ifflal 1111R

1.4
&
!f
Individual Returns/1977 - State Data
. PUR MUG-
ALI
-
N LE k2l
9905 U
31 -sg sf
01 CUM?
Na Rn
ACUP",
E! P~-
V;Mik
-illta
RR AREvas
g.,
g;F kak Haim 8URH HAT-5;
G-
-~12RA UMA W20*1
to g2gs,60g
WOO
11 "I'S
q
;4 9141 ~NMlsl H-WIIR
1 TUX NiVAR51 HIF!", 91HU
iffansm a
ig igdIR sf g%Rigg
Pug-
HRRAF
IMS 561rg-f Ri Mlvg~f- ORE;
R;U
nmijz C-:mg§i -qn-§~%Ej itgap hgms m2=q gum a
E§W HIM iEMMIM PiRt:sm Isa
F FURII i~ Z 511A $2 affit: cq a HUM x"FIRk HUE,: MU
zi W-Mfg M!06 KRi Sk . f
lik~m snug BimpnQ a;-; puk
mi-ig mgom om
V
MIJR Via
ximp
cf
agrz-
MUM U.-sFat: ffka!mm SURR
E!16-m ` ;;
143figig 5 --
Eq M:!~
@-RJR
miks;M MU1 9 3 -
RUHR nmgm gniffi§5 0 @x1i eifiggi RM4 U19,901 Wk-z
's- 3 M qer~m
UM;zi~ HIMM FERM2 WK 91 HEM gait-OR sa ii
MIN
. ...... ...... ..
...... .......
:R mnk §R 25 .F
AlWr
. --el :
all 90 - - 1911-1
1
"% -i HIM 11M, m
atfl'
a
atIt i 1 §1 it 111111 it
a
§ H
- mil Him
it §11
]IRld 9159§19' H ~ s;;,g Skala HIM 9MR1
V qi= 853=. g, , I . m ==Mll HI-11d i ""
IN

184 Individual Returns/1977 - State Data
is; t
anmigi AEGag te cq r, imcR F a ;-z R R! .5 F R §F44k
F4=
c6
GAR 181 5ARMi Rime:; Z;
F M=
s- g;f
E6
MRA :;TV8f19! s grgm
;M§§ RAU 9 9
gf--~g,
§R:M R!99-53:!
"15HA MEER Mjviev
65V
G La'HO
521r:§~ RUM MUE
"CIR UUM9 %F90A
Rau
cctct
*.'fa g
kaRRIES fflnmu mwgm RnF;j
5; .32
q Enna ;?~axg
~!
HUH il Fimka Rum EP-2q5:k qikRi;;
algal H-gaig ggpfclk
VWU MPH §s-;RwqV Rm "z ~
g
xFf
iowgn
!U9599 czmi~--R, Numog
c6~ K --
c
....... ...... . ........ .
WM 9 Ci
AR
USER 2,;151 91121 BE a
U
L
itt
y
u
I
I
RH
Rffill IRM
Ha fim Q ARM!

H
Individual Returns/1977 - State Data
iz 9 k
1 gglmikk ig--ug:
smif -Sfv:?, -if "Itl;g G Rain ss -!q rj if
=Qg R %., ~aF
MPH RM
iN RNEOW !P`
z!pmm~ gag3
LRa Ragais: upp!
IsfN3 ofesfiz
HIM 3% R!
t'jogg &Rm-!V- umea
ERRAR k"111 IN',"
51 le Lg tq~. V -
qjg
a mg - -af
F
`2 11112
X§ Igook i-RIJIGee ukikk
c:t
sf- m Z,;Z;j Le i~
R[q-kPik M-lU
g1goffia Us a HE
UM RR gsfv V.4 9968a
RZ-f5tEf NOVIS-fif 590,f- M-5 I 'L
HOME WaRL
c%L
.....
...... ..
Fqqvv
is _- A sfDIV, :s a, M,
pLRjRjjjR: PxAj~..2
HIPIM M851OR
A gg~2 R gggp: Egg!
pum! migg mily t:;mo
m8glitg
am on
A _mV5xRiE Rum
Hacg"Rf -` is P v,
it rx-4zRk --um gzgupl- ~VMM
imm -Go-s-RE g~i
91"U_M& 1A 99- - U959f
R c4;, ;z s? 7;iP-!
L3 r- glkk-mc! -
if 9 19 9 A R6,rzz zzGY&_ -9 ?1;:: ~SYM
a
;H:A~_Rgi RUX" kikirke-1Z a E Ex
N'f
ata- 19 1 OR Fa 1 Rs m E` gvm,~- s 9 Mi
Ps R
P IRIgnm F'simix gang"I g- Z, E sug
UP-21 AIM-z r~
G?Rgff;~$!
M&R;e Riliftigg R 9,:M~2
.. .....
Rl I R
RHM I §§
if 11,12
! I ~ ;,; r, I
gal
gag g912-1
- :1112112 "
;11111119 119H - V a sr. "1,Z59 111,11d
N.
it kill Hilit ii
Rkk§ M
I

186 Individual Returns/1977 - State Data
"a
15
ts
II §
I
I P La w! 6 P 0 kpt2: : FI~3~
-gww 5 :- -~ 9f
MR- IN
c-f
g-
oft;
5p; R: ! 2 101 1
gjaRO; R:
HER!
'-frEW vl:~ IMP
SWOU
99uCt
ratg~jj: 06 gig
ZMR
9-
-log eel
Hriu kalp-6 upy ~Iej
t~jv te
gga:P rz g
H HUM WaT: V19MR
. ...... ...... ...
A9
zn
eiz m S3 p se R ie MY R
-
AR =WN? :
L8
St Hid
gall
RX529OR UPRR He g g mm
5 -XV51t
2kZZ spf !
:EIRSM5
q
6
g~ agc',Ra
Rxz;zA
MUZU GUM
sf-
..... ...... .....
Him 1211 119101
amit mm lit Ili"
fittif Hut 11 1i
111M
mill,
_1 -a1 111 R mf a
5 . 455
1- 919 HIM- i

4
J
Individual Returns/1977 - State Data
iprVaU MEN Me-.t = k §ig 2 Full ~JL~. rd.5 It 5
VIM
aw I
R P alkk
Hi U-01 gguik
F 1-,1F4?! E P1 mn§ m~g 9H
Ga.S:q C-6
!etA§:t9 ;::_MM
cz
acq
12
§Ugj~&
nvms iMMm mRFRU
gc"=
is
RNEiRks 4RHc2
if
ez; M rj& r.
Qum u2tvia
M41
MR 2eF t2§9991
Fix 9,Z - sq - 16
pmk gggsp g! M F4~
VMIURA RkRz", K"Ex?! Lp§Pk
2RUM;`
Ls
11RURR RR[Ei~W !XM 12 A R X R FA 4 F E @ lon§x- jlve%ug
8
I ME R;-; U-SUMM HHRM RAIRV~
fa-1 URN
s 2 e
HZ~H§
MR
112H Him ika
Zq!
'6 G96xi
-
SUM
ZOUR HOAR RUMN RM,=
all . 0 g te g M two P!R
;,f
newrx m-'145
05; guMN ~JHV~g VG
rag
6;i a e~fsd zcq wc;a
-
:sRG
$3 tz
E ILe
P age d
iF=FjRk MMM "MpI %-If
Tick HUR Me, g i§c:_RV3 LMUR UXUA MUR
HUR HQ :.RR im; Sim
ge;; rz;r.
. ..... . ...... .
I :c:r
It
.1 §iIjit
IS
§ WBB§§§ §
1911-5
HIM ii
§
§
§g§.a § §
=1111.11 MIRM R!Ir. Mit19 WISH-- !R
it
:
187

188 Individual Returns/1977 - State Data
y: I : ;ma-
1:1-M IN"A UR an gpR~EIA ;.ZtpVRiU 9 9 F9-;:
.
st le at ; NL1% x9sam. m SAW
U5
HRR ~999i§ 11 gi ig: I Yskak MCC
HE9 -5 -4 -4
SHP;:
t:: -
I RURI-A HUM W~VRV i-9 § A;_~
gs G?§g k
qR5Rt'!§ .1L . iAkv~R-Z Lq - - . , ~; V
_WVIM a s M A F_ _ t-.;! Ila V rzsV---
tff"5f
i::mkz!u r-- Rik -9
HEIR: I
ELM
spa
V?
9i R1 SaF;k5 S q L3 Fa
FAR;& w
*m
'It 5 --R~Pe le
1a
, ?fM'UMR§:
141MR3511 F3T'2;_2iV2 aRim
.1
R
- IR A si
s
1-8
Aij, 6 GlOw -2 wipi-ziri 9.6 ;Cgst_~w 9 t-:: 'K mig 1999*sfi! !'5 t;;= z;
,kill
>
ZZ
MUM RUM W_;;F. 1
'I
NVII-11 IWV.;
$
EHM
F3_ V x A F-i 5i okur-:- Agon
tit 1,
it liffli it a Him
.
RV
am!
V ~z
IQ
LM
ZRRUI ROW
n FQ j;z! al
vtniiza
cilt
5iik V - - F- a- - - i~?F - -1~ - E i~
gogs1p, ge ~_. g.'aTw gg;fg(
Esmxtam 11vakatg x ~_2;e m
lq~ ILFISIN
gg~
MEN P MH
--- V
1~ HEM Q 1,
1311 HE

Mir
Individual Rotuma/1977 o State Data
F9 1 92 E ~ RHRFS
FUR HEM
oo HIM
P ;:SA§lq 512gou 5rinz`
A ONO
OHM U IM ARM: HFI~E
1URRO-MaRg RHO: U410
MOM 2 9 citf 1~613f
igliftlg~
_,z~f
Jon; - 12951ft
RUN ill", 5 WIRE[
;c6 T?!!2
kPIM
A 19
V;; gof
c4
HUM-: Es InF,
WIle iiggsg
iflif-siff %%996f R
4 Emag mkzg go§[r3~4 twEVI
90991,91 lxf ::: ~J
U-199
!R Him &H Him im ggglo
a
-7
~"Ra URROR RFAVR14te HIM
g-scici~;f imritim gRa
ZL
siggft"M gxlzis4d 90991":
RN-g- H-gN ir.
Mv
ggg gk Rum
HUH ijilt
91
HHH §~ ffk§
_.sf
ts . "N9
SIR *ZF ria-UnUd R121 Z; 1
F I IrHUF 9RUZa n_srs_~
URIOR MOIR U!U" MIN
21-4
WIN Mpip-
fflJO HP!U likAOXF4 -19HE
691WO399 Sig!- oft-9099
kV_VVH8 ZRILBril VRRFF4- ft=xJJ
P.a Kk sez Flag V- HSI
.39 A99t::= M.Mq
Mull RE --- 51"1111"111-1- 11141
"A" 8
rd9l Jolna :149
:19HE si HIM- Ropmfig
N -Z;f ;&,f-
g~LR4;!
HAM FE159RO iffir-PIR §EiM
54GIM9 pig rsgsf Z;cf 999,219
omim A!ZsJgF pplo- !§gfis
dp!*C;9 vwzi 9,-Z 94-~ ~t:: - s?
95ML,
Ua Ko W-1sr- 9,6999
ificidii
HC
i mill it it
§ mn§ WOA
1,91,149,11. rNaer.111 61-99 r.
189

190 Individual Returns/1977 - State Data
ZRF45 B RE M-: Wn .
sirz Zia s"i
--~lwmg RARX Wogsi: MRA==
U-U
I; iks litI I Ff R
MAR
s if
k PUR99 SHUR F3u5 u g
s L8§U@!F HFIM I
gggigif
Mail 5 I-Qz pf
KaRk
migsia 0 le: -IR: p1Car F FiR ~,i
F 3URFIRA UFM kpvi~* RRRR§
RIVER U909 mg -
UIRVU
RV Rsgliis !e- MiERH
MUM "019F 9 ikRk
- 4fofs=~
kikno nampt nur--- let ~--% F,
Rig
-A C
....
: : : :
......... .
yda
iatffrj
I ii HUH Hit "1"
flud RUM Ur% 12 da
C. -5
OS
'i
p: vn? ~ 511g ~ nxu5
F.9?;;mp; A
qme
--RN
i !-Mtv V pmna Ls mgi
'k~ffpz`~ - - - - - - -
Ost--n
f -
g~fl mm Rims
R c!2 Rik nsmi --DgGgo- kgi%ik~
ts 28's
MUM MM
a kxkg;.qR Zuni wkxA:
E
9 R-EERH
~ ~-:Tc"- m -- -
URN, :fINf5ga ggsl;Z
1 guil'
Him itlit
m§d:§§RUR
RRRR§K
P! s:: A!~
s iE
kteegg
FEFIV
Z;s

T
11111 g i I
Who
RU RRURR P r_F r R9 I I I I
rFF P g
M vf
pp;;;
R? p
Individual Returns/1977 - State Data
I ::V I I ~? I ~ I ~ I I "
qQ!j;P lp ~p P
RM
Sal I IV
213 1s
" A 7 IF
sp-
pill! 111 1 1 11
1 P1111 ppil 11 Blip! it P N!
15
HIP POP lip 11 11 1 1 1 5 __~F
Ukt-M RUM
;;V
It URS-Ax RikRUR RZ
RX I I I I MRR
Al a I
alvig a
OF BPI 0 1 1 HIS
~~p pig IV I 1 51
Pf V
p p, I I pig
Pp
I
I F"
0 Mi
vt~::P§ ~RRVSF By 113 1 1 1 --ag
§gj~sjq
FRUI R giiipi~5 gg ti 51 Rip. 1 RR ;q pop F P gf
Fps QFP ~PPRP HIM pp I M
i inal HIM R11H
®r
kkagn
1 111111 it Nall' I 1111it MM
R
HUE
W
1H199,
MIN
R Ifflak IS
191 to ~
Any 6 May
was 1jud HHfl flga!
MI Max I a ,
-
191

192
pi's
P
ez
RUM x5"Z-HI:
Individual Returns/1977 - State Data
H99 §NW914 IRRP~:: HOUR
grim
Igo= I VD;-CK U=3111 "RU
RAN-e
. . . . . . . . . .
29SU I I E
-R r9 UWE 5!
ME
a
um.i gafge-eag VgFv a_jj "!
m r. R V--Egi~!5 t::qjksmr. IVEM
r
...... ....
Ej
rj
lac6
ts

Section 6
Explanations of terms are
designed to aid the user in interpreting
the statistical content of
this report and should not be
construed as interpretations of
the Internal Revenue Code or
related regulations, procedures,
or policies. Code sections cited
were those in effect for 1977.
Additional explanatory material
on selected items can be found in
sections 1 through 5.
Accelerated Depreciation on
Low-Income Rental Housing
see "Tax Preferences."
Accelerated Depreciation on Other
Real Property
See "Tax Preferences."
Accelerated Depreciation on
Personal Property Subject to a
Lease
See "Tax Preferences."
Additional Tax for Tax Preferences
(the "minimum tax")
This was a 15 percent tax
imposed on "tax preferences
subject to tax." This tax could
be reduced by:
(1) 15 percent of any 1977
net operating loss.which the
taxpayer could carry to a future
year (this amount then to be paid
as a "deferred minimum tax" for
the year to which the net
operating loss was carried);
(2) "unused" portions of the
credit for the elderly, the
political contributions credit,
and the child care credit; the
unused portion was the amount by
which these credits exceeded
income tax before credits reduced
by the general tax credit. See
section 3, Tax Computation and Tax
Rates, for a description of the
computation of this tax.
Adjusted Gross Income
This amount was the result of
reducing gross income from all
sources subject to tax by
adjustments such as the following:
(1) ordinary and necessary
expenses of operating a trade or
business,
Explanation
of Terms
(2) employee business and
moving expenses,
(3) expense deductions
attributable to rents and
royalties,
(4) expenses of outside
salesmen attributable to earning a
salary, commission, or other
compensation,
(5) depreciation and
depletion allowed life tenants and
income beneficiaries of property
held in trust,
(6) exclusion of allowable
"disability income" if the
disability income was included in
gross salary,
(7) deductible losses from
sales of capital assets and other
property,
(8) deductible half of the
excess of net long-term capital
gain over net short-term capital
loss, (9) excludable portion of
qualified dividends (up to $100
per taxpayer),
(10) business net operating
loss deduction,
(11) contributions to a
self-employed retirement fund
("Keogh Plan") by the selfemployed,
and to individual
retirement accounts by employees
or self-employed persons,
(12) forfeited interest
penalties, incurred by persons who
made premature withdrawals of
funds from time savings accounts,
(13) alimony payments
(formerly taken as an itemized
deduction); and
(14) exclusion of the
ordinary income portion (in
contrast to the amount treated as
long-term capital gain) of the
taxable amount of a lump-sum
distribution from a qualified
pension or retirement plan, taxed
separately from other sources of
income at the taxpayer's election.
A deficit in adjusted gross
income occurred when the allowable
deductions or losses exceeded
gross income.
Adjusted Gross Income Less
Investment Interest
See "Adjusted Gross Incom-."
and "Investment Interest."
Adjusted Gross Income Plus
Excluded Tax Preferences
See "Adjusted Gross Income"
and "Tax Preferences Excluded from
Adjusted Gross Income."
Adjustments
See."Statutory Adjustments."
Age 65 or Over
The presence of the additional
exemption allowed taxpayers
age 65 or over was used as the
basis of this classification. In
the case of joint returns of
husbands and wives, some had only
one additional exemption for age
65 or over while others had two
additional exemptions for age,
indicating that both husband and
wife were age 65 or more. Whether
one or two exemptions were claimed,
the return was considered as a
return of a taxpayer age 65 Or over.
Alimony Paid
Beginning with Tax Year 1977,
this amount was reported as a
statutory adjustment and taken as
a reduction of gross income for
payments made as alimony or
separate maintenance. For 1976
and previous years, this amount
was allowed as an itemized
deduction from adjusted gross
income and, therefore, was
available only to those taxpayers
who did not use the standard
deduction. See at4o "Alimony
Received."
Alimony Received
Payments received as alimony
or separate maintenance were
income to the person receiving
them (and a deduction to the
person paying them) if the
payments were:
(1) required under the terms
of a decree of divorce or
separation or a written instrument
incident to that decree;
(2) paid in discharge of a
legal obligation based on the
marital relationship;
(3) paid after the decree and
on a periodic basis.
193

194 IndIvidual'Returns/1977 9 Explanation,of Tems
All Other Taxes
For purposes of this report,
this amount represented-the sum of
the self-employment tax, tax from
recomputing prior-year investment
credit, social security taxes on
tip income, any penalty taxes on
individual retirement accounts
(IRA's), and any other unspecified
taxes. (Each of the above is
described under separate heading.)
This was in contrast to the "other
taxes" portion of the Form 1040
itself, which was composed of the
taxes listed above plus the additional
tax for tax preferences
(minimum tax). The minimum tax is
tabulated in this report as part
of "total income tax" and serves
as part of the requirements for
determining the taxable or
nontaxable classification of a
return. See at6o "Taxable and
Nantaxable-Returns" and "Total
Income Tax," defined below.
Alternative Computation of Tax
Income tax before credits was
usually computed by applying
graduated rates ranging from 0 to
70 percent to taxable income.
However, taxpayers with large
amounts of taxable income which
included long-term capital gains'
could profitably elect the alternative
tax computation. The
effect of this election was to
limit the tax rate on the first
$25,000 ($12,500 for married
persons filing separately) of the
taxable portion of.the long-term
capital gain to 50 percent.
In computing the amount of
long-term capital gain includable
in adjusted gross income, the net
short-term loss was combined with
the net long-term gain. Only 50
percent of any resultant long-term
gain waa included in adjusted
gross income. If the alternative
tax computation were elected,
generally the first $25,000
($12,500 for married persons
filing separately) of such
included gain was.taxed at a rate
of 50 percent Un'effect, 25
percent of the total net gain).
The tax on the amount above
$25,000 (or above $12,500 for
separate returns) was the excess
of the regular tax * on total
taxable income over the regular
tax on total taxable,income
reduced by the net long-term
capital gain in excess of $25,000
(or*in excess of $12,500 for
separate returns).
Since the alternative tax was
computed at no less than 50 percent,
the computation was profitable
only to taxpayers whose
taxable income was large enough to
be taxed at rates higher than 50
percent under the regular compu-7
tation method. -This meant that
taxable income had to exceed
$27,600 for married taxpayers.
filing separately, $40,200 for
single persons and heads of
households, and $55,200 for.
married,persons filing jointly
Taxpayers with large amounts
of taxable income which included
both personal service income
(wages, pensions, and the like)
and net long-term capital gains
could avail themselves of the
"maximum tax" on this income
(limiting the tax rate on personal
ser,~ice income to 50 percent) as
well as the alternative tax on net
long-term capital gains. See
"Maximum Tax on Personal Service
Income."
Amortization
See "Tax Preferences."
Bad Debt Reserves
See "Tax Preferences.11
Balance Due After Remittance
This amount was the
difference between "tax due at
time-of filing" (defined below)'
and the remittance tendered by the
taxpayer with the return-.
Balance of Insurance Premiums
See "Medical and Dental
Expense Deduction."
Business or-Profession Net Profit
or Loss
This source of income was
reported by individuals who were
sole proprietors of a non-farm -
business or self-employe d members
of a profession. When there were
two or more sole proprietorshi ps
operated by the same taxpayer(s),
the single amount of profit or
loss included in adjusted gross
income repr~sented the combined
profit and loss from all business
activities. The proprietor was
required to exclude investment
income from business profits and,
to include it, instead,.with the
various types of investment income
for which separate provision was
made on the individual income tax
return.
Business costs and expenses.
were deductible from gross receipts
or gross sales in arriving at net
profit or loss. Compensation of
the proprietor was taxable income
and, therefore, not allowed as a
business deduction in computing net
profit. The deduction of "net
operating losses" from other years
was not considered a business
expense, but was offset, instead,
against "other income" on the
proprietorl's incomb'tax return.
. Information on business
receipts and expenditures can be
found in Stati,6tLu 06 income--
&AAineAz Income Tax Re&Am.
Capital Assets
See "Sales of Capital Assets."
Capital Gain Distributions
Reported on Form 1040
These distributions included
the following:
(1) Long-term capital gains
credited or distributed to
individual taxpayers by regulated
'-nvestment companies (mutual
funds). Gains credited but not
distributed were reported as
income, but the taxpayer was also
credited with the amount of tax
paid on the gains by the regulated
investment company (mutual fund);
(2) Long-term capital gains
distributed by real estate
investment trusts.
Normally, taxpayers would
have reported these distributions
on the supporting schedule used
for this type.of income (Schedule
D, Capital Gains and Losses).
However, if the taxpayers-did not
need Schedule D to report any
other gains or losses or to
compute the alternative tax, they
then entered 50 percent of the
capital gain,distributions
directly on.line 15, page 1 of
Form 1040.
For purposes of this report,
"capital. gain distributions
--reported on Form 104011 are tabulated
as part of sales of capital
assets and are reflected in the
net capital gain and loss data.
Seeatzo "Sales of Capital Assets."
Capital Gains and Losses
See "Sales of Capital Assets."
2apital Loss Carryover
See "Sales of Capital Assets."
Cash Contributions
See "Contributions."
Casualty and Theft Losses
Personal casualty and-theft
losses not compensated for by
insurance were deductible from
adjusted gross income to the
extent that the loss for each
casualty or theft exceeded $100.
A casualty.was defined as complete
or partial destruction of property
resulting from an identifiable
event of a sudden, unexpected, or
unusual nature. While this deduction
is shown separately in this
report, it is also tabulated as a
part of "total. miscellaneous
deductions."

Child Care Credit
This was a credit to reduce
income tax, which could be claimed
by taxpayers who incurred expenses
for the care of dependent children
under age 15 (or other dependents
or spouses who were disabled) while
these taxpayers were working.
Qualifying expenses included both
those for services performed within
the home (such as for babysitters,
maids, and cooks) and, in the case
of children under age 15, services
outside the hime, such as those
performed by day-care centers or
nursery schools.
The actual credit equalled 20
percent of the smallest of the
following three amounts:
(1) total qualifying expenses,
as described above;
(2) income earned while these
expenses were being incurred; for
this purpose, "earned income"
meant salaries, wages, tips, and
other employee compensatiod plus
net earnings from self-employment.
In the case of a married
couple, neither of whom was
disabled, the lower of the two
earned incomes had to be used;
couples with only one earned
income, or who did not file a
joint return, did not qualif)r for
the credit;
(3) $2,000 ($4,000 if the
expenses incurred were for care of
two or more qualifying dependents).
The child care credit was not
refundable and was limited to
income tax before credits minus
the general tax credit, cr~dit for
the elderly, foreign tax credit,
investment credit, work incentive
(WIN) credit, and contributions to
candidates credit.
Contributions Deduction
Contributions deductible from
adjusted gross income were gifts,
in the form of cash or property,
to (a) 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, (b) veteran's
organizations, and (c) governmental
agencies which used the gifts for
public purposes. Individuals who
were members of a partnership also
included their pro rata share of
partnership contributions.
In general, a deduction was
allowed for all contributions up
to 50 percent of adjusted gross
income, with the exception of
contributions to private nonoperating
foundations which were
subject to a 20 percent limitation.
However, contributions of
certain capital assets which had
appreciated in value were subject
Individual Returns/1977 9 Explanation of Tems
to a 30 percent limitation unless
the taxpayer elected to take the,
unrealized appreciation into
account for tax purposes by
reducing the contribution deduction
by 50 percent of the potential
long-term capital gain on a
sale of the property.
Contribu-
tions exceeding the 50 (or 30)
percent limitation could be carried
over to be deducted in the next 5
years. Therefore, in addition to
contributions made in 1977, the
statistics also include amounts
carried over from 1972-1976 that
were within the current year's
percentage limitations.
Contributions to Candidates Credit
See "Political Contributions."
Credit for Tax on Certain Gasoline,
Fuel, and Oil
This was a credit allowed in
full or in stated amounts by section
39 of the Internal Revenue
Code for excise taxes paid on: (1)
gasoline used on farms for farming
purposes, (2) gasoline used for
nonhighway purposes or by local
transit systems, (3) lubricating
oil used for nonhighway purposes,
and (4) specified fuels which were
either used for certain purposes
other than the purpose for which
they were sold, or resold during
the taxable year. These taxes
could be applied as a credit to
reduce the income tax liabtlity
when the return was filed (with
any amount in excess of the tax
liability refunded) or refunded
during the taxable year if the
credit for any fuel. category or
any lubricating oil in any of the
first three quarters of the year
was at least $1,000.
Credit for the Elderly
For taxpayers under age 65,
the base for the computation of
the credit for the elderly was
pensions and annuities received
under public retirement systems,
limited to $2,500 for single persons,
$3,750 for couples filing
jointly if both had qualifying
pensions, and $1,875 for married
persons living apart from their
spouses. The base was further
reduced by pensions received under
the Social Security or Railroad
Retirement Acts, and by the amount
of earned income in excess of
$1,200. The actual credit equalled
3.5 percent of the (reduced) base.
Amounts received from pensions
or savings were not used in computing
the credit for taxpayers age 65
or over. The computation base was
simply $2,500, $3,750, or $1,875,
depending on marital status, reduced
by pensions received under
the Social Security or Railroad
Retirement Acts. There was also
a provision which reduced or eliminated
the credit for taxpayers with
higher incomes. The credit was
reduced, dollar-for-dollar, by onehalf
of the excess of adjusted
gross income over $7,500 for single
persons, over $10,000 for married
couples, and over $5,000 for married
persons who were separated.
Thus, no credit was allowed for
single persons 65 and over with
adjusted gross incomes over
$12,500, married couples with
incomes over $17,500, or separated
persons with incomes over
$8,750. The credit for the
elderly was limited to income
tax before credits minus the
general tax credit.
See aUo section 4, Taxpayers
Age 65 or Over; Credit for the
Elderly, for a more complete description
of and the data on the
credit for the elderly.
Credit on 1978 Tax
This credit was part of the
overpayment on 1977 tax which
taxpayers specifically requested
to be credited to their estimated
tax for 1978.
Depletion
See "Tax Preferences."
Disability Income Exclusion
The disability income
exclusion in effect for 1977
(formerly the "sick pay exclusion")
was available only to
taxpayers who retired on disability
beJoXe age 65, who had not
reached age 65 before the close of
the taxable year, and who'were
totally and permanently disabled
upon retirement. The maximum
exclusion was figured at a weekly
rate of $100. However, if the
taxpayer's adjusted gross income,
before this exclusion, exceeded
$15,000, the excess reduced the
amount of the exclusion dollarfor-dollar.
Thus, the exclusion
was eliminated entirely for taxpayers
whose adjusted gross
incomes exceeded $20,200 ($25,400
in the case of a married couple,
where both spouses were eligible
for the exclusion).
Prior to 1977, the "sick
pay exclusion" was available to
employees for periods of absence
due to injury or sickness, as well
as to those individuals who had
retired on disability (but with no
requirement for being totally and
permanently disabled). The maximum
exclusion was $5,200 ($100 per
week) regardless of the size of
adjusted gross income.
,See at6o section 1, Returns
Filed and Sources of Income.
195

196
Dividend Exclusion
A taxpayer could exclude up to
$100 of eligible dividends from
adjusted gross income. On joint
returns, the maximum exclusion was
$200 if both husband and wife
received eligible dividends, each
excluding up to $100 against their
respective dividend income. For an
explanation of eligible dividends,
bee "Domestic and Foreign Dividends
Received."
Dividends and Other Distributions
Received
This amount represented the
sum of,nontaxable distributions,
capital gain distributions, and
domestic and foreign dividends
received. See at6o "Domestic and
Foreign Dividends Received."
Dividends in Adjusted Gross Income
Total domestic and foreign
dividends less the dividend exclusion
equalled dividends in adjusted
gross income.
For a further explanationi,,6ee
"Domestic -and Foreign Dividends -
Received" and "Dividend Exclusion."
Domestic and Foreign Dividends
Received
Domestic and foreign dividends
received included:
- (1)-dividends eligible for the.
dividend exclusion (defined above),
consisting of dividends from domestic
corporations received, directly
or indirectly (e.g., as a beneficiary
of income from estates or
trusts, or as a partner for his or
her distributive share of partnership
profits); and
(2) dividends not eligible for
the dividend exclusion, consisting
of dividends from fordign corporations,
China Trade Act corporations,
tax-exempt farmers' cooperatives,
real estate investment
trusts and'corporations most of
whose business '
was1conducted'in
I
U.S. possessions., '
Domestic and for~eign dividends
did not include capital gain distributions
from regulated investment
companies and real estate
investment trusts, nontaxable
distributions of stock or stock
rights, returns of capital, or
liqui~ation distributions.
Taxpayers were'also instructed to
exclude so-called dividends on
deposits or withdrawable accounts
in mutual savings banks, cooperative
banks, savings and loan
associations, and credit unions;
and.patronage dividends'declared
by farmers' cooperatives and other
cooperative organizations.
.
Individual Returns/1977 9 Explanation of Terms
Earned Income Credit
The Tax Reduction Act of 1975
provided for an "earned income
credit," available for.Tax Year
1975 to low-income workers who
maintained a household and had
dependent children whom they
claimed as exemptions.
This
credit was based on "earned
!.ncome," comprised of wages,
salaries, and other employee
compensation, plus net earnings
from self-employment, and was .
intended to offset the impact of
social security taxes on low-income
individuals and to encourage them
to obtain employment. The Tax
Reform Act of,-1.976 subsequently
continued the "earned income
credit" for Tax Years 1976 and
1977 and liberalized the requirements
for claiming the credit..
The maximum credit remained
at 1.0'percent of the first,$4,000
of earned income, or $400, and was
reduced by an amount equal to 10
percent of the.taxpayer's adjusted.
gross income or earned income,
whichever was larger, above $4,000.
Thus,'at the $8,000 adjusted gross
income level (or earned income
level).the credit was eliminated.
~Taxpayers who met the following
five conditions were eligible
to claim the earned income credit
for 1977:
(1) had anadjusted gross,
income or earned income, whichever
was larger, of less than $8,000,
(2) maintained a household
which was the principal place of
abode f or the taxpayer and,either
a child who was under 19 years of.
age or was a full.-time student, or
a dependent child who was disabled,
(3) were not entitled to
.exclude from gross income any
amount of income earnedfrom
sources outside the United States
or from sources within~U,.S.
possessions,
(4) had a taxable year that
represented a full 12 months, and
'(5)'filed a joint return if
married.
The "earned income credit" was
unique in that it could result in
a refund'to the extent it was not
used to offset the income tax
liability. Thus, even if an indi-,11
viduAl was not otherwise required
to file a return, it was,to his or
her benefit to do so and to claim
the earned . income credit. See the
text in section 3, Tax Computation
and Tax k&tes, for a fur . ther
discussion of, and,the data on,
the earned income credit.
Employee Business Expenses
An 'employee was'allowed a
deduction in arriving at adjusted
gross income for business expenses
incurred in connection with any
employment. This deduction was
reported as an "adjustment" to
income on the tax return and should
be distinguished from the "employee
business expense deduction," an
itemized deduction from adjusted
gross income. Expenses which
qualified for the adjustment
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 commuting, and
(4) outside salesmen's
expenses of soliciting business
for,the employer.
If employees accounted for
deductible expenses to their
employers, they were not required
to report the reimbursement in
income, excep,~ for any amount of
reimbursemen in excess of
expenses. .
Certain expenses of employees,
such as work clothes, union dues,.
and employment agency fees were
not deductible in the computation
of adjusted gross income, but
were deductible as itemized deductions
in the computation of taxable
income. These expenses were
included in "miscellaneous itemized
deductions."
Estate or Trust Net Income or Loss
This was the beneficiaries'
share of-fiduciary income (with the
exception of the items described
below which were reported separately)
from any estate or trust.
Income from estates or trusts
included amounts required to be
distributed and amounts credited
to beneficiaries' accounts from
current~year fiduciary income,
whether or not actually received.
Also included was the beneficiaries'
share of any naccumulation
distribution" made in the
current year by the fiduciary of a
"complex trust" for income accumulated
in prior tax years. Beneficiaries'
share of these distributions
was reduced by their share of
depletion and depreciation deductions
before reporting the net
amount as part of adjusted gross
income.
Taxpayers excluded from estate
or trust income their share of .
dividends and gains or losses from
sales of capital assets and other
property. Such income (which comprised
the largest portion of
income from an estate or trust) was
included on the tax return on the
separate lines provided for these
income types and was riot identified
for the statistics. A loss
from an estate or trust was
allocated to the beneficiary only

upon settlement or termination of
an estate or trust which, for its
last tax year, (a) still had a net
operating loss carryover or a
capital loss carryover, or (b) had
deductions (other than those for
exemptions and charitable contributions)
in excess of gross income.
Data shown for 1977 include
the number of returns showing just
net income received from all estate
or trusts and the number showing
just the net loss from all estates
or trusts. In other words, if a
return showed net income from one
estate or trust, and a net loss
from another, that return was tabulated
in both the "total income"
and "total loss" columns. The
columns labelled "net income" and
"net loss" represent, as they do
annually, the,sum of all income
and loss reported from all estates
or trusts, i.e., the net amount,
on a return-by-return basis.
Additional information on
estate or trust income can be
found for selected years in
Statiztia o6 Income--Fiducia,%Y
income Tax Retwau-
Estimated Tax Payments
These payments, summarized on
the individual income tax return,
were paid quarterly based on the
1977 Declaration of Estimated Income
Tax, Form 1040ES. The amount
reported included any credit which
was applied against the estimated
tax by reason of an overpayment of
the 1976 tax liability.
Excess Itemized Deductions
This deduction concept, introduced
by the Tax Reduction and
Simplification Act of 1977, represented
the amount by which total
itemized deductions exceeded the
zero bracket amount. See aJ-60
"Total Itemized Deductions" and
"Zero Bracket Amount" in this
section and the text in section 2,
Deductions and Exemptions, and
section 3, Tax Computation and Tax
Rates.
Excess Social Security Taxes
Withheld
For 1977, if the total social
security (FICA) tax withheld was
greater than $965.25 because an
employee worked for more than one
employer, the excess could be taken
as a credit toward payment of an
employee's income tax. Any amount
in excess of tax liability was
refundable. In the case of a
joint return, the credit was
computed for each taxpayer. For
1976, the maximum amount was
$895.05.
Individual Returns/1977 9 Explanation of Tems 197
Exemptions
In the computation of taxable
income, a $750 deduction was
allowed for each exemption claimed.
An exemption was allowed for
each taxpayer shown on a return (on
joint returns, husband and wife
were each regarded as a taxpayer).
If either husband or wife filed a
separate return, the spouse's exemption
could be claimed on that
return only if the other spouse did
not file a return, had no gross
income, and was not the dependent
of another taxpayer.
Additional
exemptions were allowed for the
taxpayer or spouse who indicated
either or both of the following
conditions: age 65 or over or blind.
Exemptions were also allowed
for qualified dependents. In
general, an individual qualified
as a dependent if that person had
gross income less than $750 ($750
or more if in category (2) below),
received more than half his or her
support from the taxpayer, was related
to the taxpayer (such as a
son, daughter, parent), or lived
in the taxpayer's home as a member
of the household for the whole year.
The total number of exemptions
shown in this report includes
some duplication. This occurred in
the case of:
(1) dependents other than
children who had gross income less
than $750, but filed a return to
obtain a
wages,
refund of tax withheld on
(2) dependent children with
gross income of $750 or more which
included unearned income .(dividends,
interest, capital gains, and
the like), and
(3) dependent children under
19 years of age or students regardless
of age who either (a) were
required to file a return because
their gross income was $2,950 or
more, or (b) had gross income of
less than $2,950, all of it "earned
income," and filed a return only to
obtain a
wages.
refund of tax withheld on
In each of these instances
individuals were counted twice as
taxpayers filing their own returns
I
and as dependents on another taxpayer's
return.
Expanded Income
This amount was obtained by
adding together "adjusted gross
income" and "tax preferences excluded
from adjusted gross income"
and then subtracting "investment
interest." Each of these terms
is explained separately in this
section. However, for a further
explanation qf expanded income,
4ee "High-Income Returns, Taxable
and Nontaxable" in section 1,
Returns Filed and Sources of.
Income.
Farm Net Profit or Loss
This source was reported by
individuals who were sole proprietors
of a farm. When there were
two or more farms operated by the
same taxpayer, the single amount of
profit or loss included in adjusted
gross income represented the combined
profit and loss from all
farming activities.
Farm business costs and
expenses were deductible from
farm gross business receipts in
arriving at farm net profit or
loss. Excluded from farm net
profit or loss were (1) gain from
sales of livestock (except poultry)
held for breeding purposes, of unharvested
crops sold with the land
(when the land was held for a
period which qualified it for longterm
capital gains treatment), and
of other farmland, all of which
were reported on the separate schedule
for sales of property, Form
4797, and (2) farm rental income
based on crops or livestock produced
solely by the tenant, without
material participation of the landowner
(or sublessor) in the operation
or management of the farm,
reported as rental income by the
owner on the separate schedule for
supplemental income (Schedule E).
Additional information on farm
receipts and expenditures can be
found in StatjZtieZ oJ Income--
Bu4inu,6 Income Tax RetuAm.
Foreign Tax Credit
A credit against income ta.x
was permitted for foreign taxes
paid. The credit was for the
income and profits taxes paid to
foreign countries or U.S. possessions
and included the taxpayer's
share of such taxes paid through
partnerships .
and
In general,
fiduciaries.
the 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
foreign taxes paid. In addition,
the credit was further limited to
income tax before credits minus
the general tax credit and the
credit for the elderly. Amounts
in exceits of this limitation could
be.carried back 2 years and the
remainder carried forward 5 years
for use in computing the credit
for these years.
Additional Information is
available periodically from
SuppZementat RepoAt, StatihV" 06
income--intexnationat Income and
Taxe6, FoiLeign income and Taxe-6 on
Individuat income Tax RetUAM -

19&
Forfeited Interest Penalty
Adjustment
Taxpayers who had paid
penalties for the premature
withdrawal of funds from time
savings accounts could deduct
these penalties as an adjustment
to gross income. *This allowed
taxpayers who used the zero
bracket amount only (i.e.,
standard deduction) to take
advantage of this reduction of
income.
Form of Deduction
For purposes of this classification,
returns were categorized
into one of three groups: those
with nonbusiness itemized dedu6tions,
those with a zero bracket
amount only (known as standard
deduction returns for 1976 and
prior years), and those with no
deductions. For a return to fall
into either of the first two
groups, there had to be positive
adjusted gross income and in the
case of the zero bracket amount
only returns, adjusted gross income
had to exceed the exemption amount.
The reason adjusted gross income
had to exceed the exemption amount
was because the exemption amount
was subtracted from adjusted gross
income first, before the zero
bracket amount; the zero'bracket
amount,-no longer a deduction from
adjusted gross income, was actually
the first portion.?of taxable income,
the amount "taxed" at the
first, or zero percent, tax.rate
Returns in the third group, those
with neither itemized deductions
nor zero bracket amount only, were
either (1) deficit or "breakeven"
returns, since there was no income
from which to subtract any deduetions,
or (2) returns with no
itemized deductions and with
adjusted gross income less than
the exemption amount.
This last classification is
not entirely comparable to that
used in previous years, as a
result of the Tax Reduction and
Simplification Act of 1977. For
1976 and previous years, only
deficit and breakeven returns were
excluded from classification as
standard or itemized deduction
returns; any amount of positive
adjusted gross income enabled the
return to be categorized. Returns
with no deductions, on the other
hand,,could have been classified
as either itemized, standard, or
no deduction returns, depending on
certain other conditions, such as
marital status6
See aZ60 "Zero Bracket
Amount," "Excess Itemized Deductions,"
and "UAsed Zero Bracket
Amount," in this section and the
text in section 2, Deductions and
Exemptions, and section 3, Tax -
Individual Returns/1977 @ Explanation of Terms
Computation and Tax Rates, for a
further explanation of the changes
instituted by the T" Reduction
and Simplification Act of 1977.
Fully Taxable Pensions and
Annuities
See "Pensions and Annuities."
Fully Taxable Pensions and Annuities
Reported on Schedule E
See "Pensions and Annuities."
General. Sales Taxes
See "Taxes Paid Deduction." ,
General Tax Credit
This credit against income tax
was available to all taxpayers with
a "tax generated" (defined below).
Except for married persons filing
separate returns, it equalled the
larger of:
(1) the personal exemption
credit, equal to $35 multiplied by
the number of exemptions, including
those for age and blindness beginning
with 1977; or
(2) the taxable income credit,
equal to 2 percent of taxable
income reduced by the appropriate
zero bracket amount, but never
more than $180.
Married'persons filing separately,
beginning with 1977, could
only use the personal exemption
method of computing this credit
(previously they were eligible for
the-larger-of the two,credits,
although the taxable income credit
was limited to $90). ~
The Tax Reduction and Simplification
Act of 1977 required the
general tax credit to be incorporated
into the tax tables, thereby
eliminating the need for many taxpayers
to make this computation.
Those taxpayers ineligible to use
the tax tables, however, were still
required to compute their own
general tax credit.
For purposes of the statistics
the general tax credit is
sho;; for all ret urns even if it
was not actually computed by the
tixpayer. The amount of the
general tax credit was, however,
limited, on a return-by-return
basis, to the amount of "tax
generated."
Heads of Households, Returns of
These returns were filed by
"unmarried"l-persons who furnished
over half. the cost of maintaining a
household for the entire Year for
at least one qualifying relative.
Unmarried persons, for Ourposes of
this classification, were defined
as single persons, married persons
legally-separated, certain married
individuals living apart but not
legally separated, or persons
married to nonresident aliens.
nQualifying" relatives, such as
children, parents, brothers, and
sisters, generally had to qualify
as the taxpayer's dependents and
had to actually live with the taxpayer.
There were two exceptions
to this rule. Parents of the taxpayer
had to be dependents, but
did not have to live in the same
household; children of the taxpayer
did not have to be dependents,
but did have to reside in
the same household as the taxpayer.
A special tax rate schedule
was provided for heads of households
which gave approximately
half the benefit of-the joint
return schedule.
Home Mortgage Interest
See "Interest Paid."
Income Averaging
The standard income averaging
computation permitted a part-of an
unusually large amount of taxable
income for any one year to be taxed
at lower rates, thus resulting in a
lower amount of tax due than would
have resulted if the taxpayers computed
their tax using the regular
tax computation methods. An eligible
individual could choose this
computation if the "averageable
income" for the year was more than
$3,000.
"Averageable income" was the
amount by which "adjusted taxable
income" exceeded 120 percent of the
average "base period income" (the
average of taxable income, with
certain other adjustments, for the
4 preceding tax years). Briefly,
the income averaging computation
operated to tax all averageable
income at the same rate which
applied to the first one-fifth of
such income.. "Adjusted taxable
incomen (taxable income for the
computation year), from which the
averageable income was derived,
covered all income except "excess
community property income" and
certain amounts received by owner
employees (see the instructions for
Schedule G in section 8, 1977 Forms
and Instructions, for definitions).
"Base period income" included taxable
income and income earned outside
the United States or within
U.S. possessions which had been
exeluded from taxation under sections
911 and 931 of the Internal
Revenue Code.
Income Earned Abroad
A U.S. citizen who was a bona
fide resident of a foreign country
was allowed to exclude from U.S.
taxation all or a portion of any
"earned income" (see definition

-below), up to $15,000 ($20,000 for
an employee of a tax-exempt domes-'
tic charity), received while
living abroad. Taxpayers who
lived in a foreign country for the
entire year could use the entire
exclusion amount; otherwise, they
determined the amount on a
prorated basis according to the
number of days in their qualifying
period.
U.S. citizens living abroad
who were not bona fide residents
of a foreign country could also be
eligible for excluding all or a
portion of their earned income.
However, these persons did not
become eligible until they had
been present in a foreign country
or countries for 17 out of 18 consecutive
months. At that point,
the same rules applied to them as
applied to bona fide residents.
Earned income was defined as
wages, salaries, professional fees,
and other compensation for personal
services actually rendered. It did
not include dividends, capital
gains, or interest. Earned income
paid to U.S. citizens by the U.S.
Government was not tax-exempt, nor
were pensions or annuities taxexempt
if attributable to employer
contributions made for services
rendered outside the United States.
To qualify for the exemption, the
compensation had to have been
received no later than the close
of the tax year following the year
in which the services were
performed.
Beginning with Tax Year 1977,
the tax computation method used for
income earned abroad was different
from that of Previous years.
Basically, the taxpayer first
computed a tax on the full amount
of income, including the tax-exempt
amount, using either the regular,
maximum, or alternative tax computation
methods. The taxpayer then
computed the regular tax on the
tax-exempt'income. The difference
between these two tax figures was
the tax on the non-exempt income.
This procedure generally resulted
in a tax which was higher than the
regular tax would have been on the
same amount of taxable income. In
either case, if all the income
were exempt, there was no tax liability.
See atZO section 1, Returns
Filed and Sources of Income,
and section 3, Tax Computation and
Tax Rates.
Additional information is
available periodically from the
Supptementat Repoxt, StatL6tiu o6
Income--Inteuuiaonat Income and
TaxeZ, Fo,%eign Income and Taxe4 on
Individuat Income Tax RetuAYL6.
N Income Subject to Tax
For taxpayers using the regular,
alternative, or maximum tax
computation methods, "income sub-
Individual Returns/1977 * Explanation of Tems
ject to tax" was the same as "taxable
income" (adjusted gross
income less the personal exemption
amount and excess itemized deductions).
For taxpayers using the
income averaging method, income
subject to tax was a reduced amount
of taxable income especially computed
for the statistics by working
backwards from the tax itself. For
those returns with tax on partially
tax-exempt income, income subject
to tax was also computed by working
backwards from the tax figure, but
it could have been either greater
than or less than the actual taxable
income depending on whether
the taxpayer used the maximum or
alternative methods as well. See
at4o section 3, Tax Computation
and Tax Rates.
Income Tax After Credits
Income tax after credits was
equal to "income tax before
credits" minus the general tax
credit, credit for the elderly,
investment tax credit, foreign tax
credit, work incentive (WIN)
credit, political contributions
credit, new jobs credit, child
care credit, any other credits,
and, for purposes of this report,
to the extent that it did not
result in a negative amount, the
earned income credit. The portion
of the earned income credit which
did not result in a negative
amount is tabulated as "earned
income credit used to offset
income tax before credits."
Income Tax Before Credits
This amount was comprised of
two components: "tax generated"
and "taxes from special computations."
Generally, "tax generated"
was the tax liability computed on
current year "tax table income" or
"taxable income" based on:
(1) the regular tax, whether
derived from the tax tables or tax
rate schedules,
(2) the alternative tax on net
long-term capital gains,
(3) the income averaging tax,
(4) the maximum tax on personal
service income, or,
(5) the tax on partially taxexempt
income earned abroad.
"Taxes from special computations"
(defined below) generally
were related either to prior-year
income or to income that had been
excluded from adjusted gross
income. As a result, it was
possible for a taxpayer to have
"income tax before credits" without
having "taxable income" (or
"tax table income").
Income Tax Withheld
Tax withheld included amounts
deducted from salaries, wages,
tips, and other forms of remuneration.
An employer could use either
the "percentage" or "wage bracket"
method, both of which were based
on graduated rates ranging from 14
to 36 percent, or any of the alternative
methods permitted by the
Internal Revenue Service in determining
the amount to be withheld.
In addition to income tax
withheld on salaries, as reported
on Form W-2, tax withheld from pensions
and annuities, as reported on
Form W-2P, was included in this
amount. Beginning with Tax Year
1977, tax withheld on certain
gambling winnings, as reported on
Form W-2G, was also included (Zee
a.Uo "Changes in Law").
Individual Retirement Account
Adjustment
For taxable years beginning
after December 31, 1974, an individual
who was not covered by a
qualified private or governmental
retirement plan was able to set up
an individual retirement arrangement
(IRA) (a) at a bank or other
qualified financial institution,
(b) by investing directly in individual
annuity contracts issued by
an insurance company, or (c) by
investing in special retirement
bonds issued by the Federal
Government. Contributions to such
a plan, which were limited to the
lesser of $1,500 or 15 percent of
the individual's "earned income"
(wages, salaries, and net earnings
from self-employment), could be
deducted from the employee's gross
income in arriving at adjusted
gross income. Taxpayers could not
start withdrawing funds from the
account until they reached age
59-1/2 and had to start doing so
upon reaching age 70-1/2. Penalty
taxes (defined below) were
assessed in the event the taxpayer
failed to comply with these
limitations.
The Tax Reform Act of 1976
provided for the establishment of
an IRA (separate from that of the
working spouse) for a nonworking
spouse, effective for 1977. The
total deduction from gross income
in this instance was limited to the
smallest of (a) $1,790, (b) 15
percent of the working spouse's
earned Income, or (c) twice the
smaller amount contributed to
either spouse's IRA (thus making
it advantageous to contribute the
same amount to each IRA).
Intangible Drilling Costs
See "Tax Preferences."
Interest Paid
Interest paid on personal
debts, mortgages, bank loans, and
installment purchases of real or
199

200
personal property was deductible,
but interest paid on money borrowed
to buy tax-exempt securities
or single premium life insurance
and endowment contracts was not.
The amounts deductible as interest
expense included "investment
interest" (that amount paid or
accrued on indebtedness incurred,
or continued, to purchase or carry
property held for investment) as
reported on Form 4952, subject to
the limitations prescribed in the
law. Interest relating to business,
royalty, and rental income
was deducted directly from these
items and was, therefore, not
reflected in the interest paid
statistics. For installment purchases,
interest paid included
amounts stated in the contract,
certain unstated amounts of interest
as provided in Code section
483, and finance charges.
See section 2, Deductions and
Exemptions, for a more detailed
explanation of "investment interest
from Form 4952."
Interest Received
Interest received was the
taxable portion of interest received
from bonds, debentures,
notes, mortgages, personal loans,
bank deposits, and savings accounts.
Taxpayers were also
instructed to include so-called
dividends on deposits or withdrawable
accounts in mutual
savings banks, cooperative banks,
savings and loan associations, and
credit unions. Excluded-was the
interest'on a State or local Government
obligation. Such interest
was tax-exempt and, therefore, did
not have to be reported on the.tax
return.
Investment Credit
This tax credit was based on
a percentage of the "qualified
investment" in certain new and used
depreciable assets, chiefly machinery
and equipment with a useful
life of 3 years or more. The
applicable percentage for most
property acquired and placed into
service or constructed during the
period January 22, 1975, through
December 31, 1976, was 10 percent
of "qualified investment" as provided
for by the Tax Reduction Act
of 1975. The Tax Reform Act of
1976 extended this 10 percent rate
through-1980. Before January 22,
1975, the credit was, in general,
7 percent.
The cost of the,property
determined the taxpayer's credit
base, "qualified investment," an
amount-that took into,account the
length of the property's intended
life'and whether the property was
new or used. Small Business
Corporations and partnerships were
-Individual Returns/1977- Explanation.of Tems
eligible for the credit, although
the credit itself was claimed not
by these entities but by the
shareholders and partners, respectively,
on their individual
income tax returns. There were
also limitations on the credit
itself, for the most part dependent
on the presence or size of
income tax (excluding the penalty
taxes on self-employed, or Keogh,.
.plans and the special income
.
averaging tax), reduced by the foreign
tax credit and the credit for
the elderly before the investment
credit could be applied. Amounts~
in excess of these limitations
could be carried back 3 years and
the remainder carried forward, in
general, to the succeeding 7 years,
for use in computing the-credit for
these years.
Investment Interest
This was an amount.computed
for the statistics on high-income
returns required under the Tax Reform
Act of 1976. It was equal.to
total interest deducted (other than
home mortgage interest), limited-.to
investment inc6me (interest
received, dividends, and capital
gains, to the extent included in
the income being tabulated). ,
Thus, since different amounts'of
investment income are included in.
the different income concepts used
in this report, different amounts
of investment interest~had to be
tabulated,,.as follows: - , _
Uj When the income concept
being tabulated was "adjusted gross
income" or "adjusted gross income
less investment interest," investment
income equalled the sum of:
(a) interest received,.
(b) dividends after the exclusion
of up to $100-per,.taxpayer,
Wall net
tal gains,
short-term capi-
M one-half of net longterm
capital gains (in the case of,
taxpayers with long-term gains and,
short-term losses, one-half of the
excess of long-term capital gains
over short-term capital losses),
and all the net long-term capital
losses,
return.
limited'to $2,000 per tax
(2) When data on "expan ded
income" or "adjusted gross income
plus excluded'tax preferences" were
tabulated, investment income
equalled the sum of:
(a) interest received,
(b) dividends before'exclu-
sion,
(a) all net short-term cap 11
' 7
tal. gains,
M all net long-term capital.
gains, and all the net shortterm
and one-half net long-term'
capital losses, limited to.$2,000
per tax return.
Investment Interest From Form 4952
See "Interest Paid."
Itemized Deductions
See "Total Itemized
Deductions."
Itemized Deductions Tax Preference
See "Tax Preferences."
Joint Returns of Husbands and Wives
These were either returns on
which married.taxpayers reported
their combined income or returns
of married taxpayers where only
one spouse had income, but the
exemptions of both were claimed.
Low-Income Allowance
See "Zero Bracket Amount."
Marginal Tax Rates
The marginal tax rate was the
highest rate used by a taxpayer in
computing tax under a specified tax
computation method. For ' example,
if a joint return showed taxable
income of $26,000, the tax rate
schedule (reproduced in the income
tax return facsimile at the end of
this report) indicated tax as
$4,380 on the first $23,200 plus
32 percent of the excess. The
marginal
.percent,
rate in this case is 32
and the income taxed at
the-marginal rate is $2,M0
($26,000 minus $23,200).
The example assumes that the
tax was determined solely on taxable
income under the regular computation
method. If a taxpayer had
income subject to tax at both the
regular rates and the special capital
gains rates, a marginal rate,
was determined for each portion.of
income subject"to tax. The marginal
rate for income averaging
returns and returns with tax from
partially tax-exempt income was
determined for the statistics by
applying the rates from the.regular
rate schedule to a reduced
amount at taxable income (described
Tax").
under "Income Subject to
Marital Status
The five marital status
classifications were:
(1) joint returns of husbands
and wives,
(2) separate returns of
husbands and wives,
(3) returns of heads of
households,
(4) returns of surviving
spouses, and

(5) returns of single persons
not heads of households or
surviving spouses.
Marital status was usually
determined as of the last day of
the taxable year. If one spouse
died during the tax year, the
other was considered married for
the entire year. If a taxpayer
was divorced during the tax year
and did not remarry, the taxpayer
was considered to be unmarried for
the entire year. Each of the above
classifications is defined under
separate heading.
Maximum and Alternative Tax
Computation
See "Maximum Tax on Personal
Service Income."
Maximum and Regular Tax Computation
See "Maximum Tax on Personal
Service Income."
Maximum Tax on Personal Service
Income
"Tax generated" was usually
computed by applying to taxable
income graduated tax rates ranging
from 0 to 70 percent. However,
taxpayers with large amounts of
"personal service income" could
elect to limit the top tax rate on
such income to a maximum of 50 percent.
This was done by splitting
taxable income into "personal
service" and "other" taxable
income. To earned taxable income
the regular rates starting with 0
percent were applied, but to
amounts which would have been subject
to rates higher than 50 percent,
the maximum tax rate of 50
percent was applied instead. Other
taxable income was taxed at regular
rates higher than 50 percent, except
for any portion subject to
capital gains rates under the
alternative tax computation.
"Personal service income" was
gross income from salaries, wages,
professional fees, and compensation
for personal services. If the taxpayer
engaged in a trade or business
where both services and capital
were material income-producing
factors, up to 30 percent of net
profit was considered earned income.
Net proceeds from the sales
of property created by the taxpayer
were also considered earned income.
Beginning with 1977, pensions,
annuities, and other deferred
compensation for personal
services rendered in the past
could also be included. "Personal
service net income" was personal
service income as here defined
less allocable deductions and
expenses.
Personal service net income
was used to determine "personal
service taxable income." Taxable
Individual Returns/1977 4, Explanation of Tems
income was multiplied by the ratio
of personal servfce net income to
adjusted gross income. The result
(limited to the amount of taxable
income) was then subject to
reduction by the "tax preference
offset," the total amount of tax
preferences reported on Form 4625
(bee "Tax Preferences"). "Personal
service taxable income,"
then, was the result of applying
an earnings ratio to taxable
income and then subtracting from
that result those items which had
already received special tax treatment,
namely the tax preferences.
The part of taxable income
which was not personal service
taxable income was "other taxable
income." Other taxable income, in
turn, consisted of "other taxable
income subject to regular rates"
and "other taxable income subject
to the capital gains rate."
Tax generated was the sum of
tax on personal service taxable
income, computed as described in
the first paragraph, plus the tax
on "other taxable income," defined
above. Except for taxpayers using
the capital gains rates of the
alternative tax computation, the
tax on "other taxable income" was
the regular tax on taxable income
less the regular tax on personal
service taxable income. For taxpayers*electing
the alternative
tax computation, the tax on "other
taxable income" was the alternative
tax on capital gains plus the
regular tax on taxable income less
the regular tax on the sum of personal
service taxable income and
taxable income from long-term
capital gains.
The maximum tax computation
was not available to married persons
filing separate returns or to
taxpayers electing income averaging.
See at6O "Alternative Computation
of Tax" and the text in
section
Rates.
3, Tax Computation and Tax
Medical. and Dental Expense
Deduction
In general, medical and dental
expenses could be claimed as
itemized deductions to the extent
that they exceeded 3 percent of
adjusted gross income. Expenditures
considered for this deduction
were the actual amounts paid
during the tax.year for health
care of the taxpayer, spouse,
dependents, and any other person
who, except for the fact that he
or she had $750 or more of gross
income br filed a joint return
with his or her spouse, could be
claimed as a dependent. Amounts
paid for drugs and medicines were
included in medical expenses only
to the extent that they exceeded 1
percent of adjusted gross income.
Any insurance payment,
received on account of medical
expenses incurred, reduced the
cost which could be considered as
medical expenses actually paid by
the taxpayer. However, one-half
of the cost of medical insurance.
up to $150 was fully deductible as
a medical expense without regard
to the 3 percent limitation, while
the remaining one-half of the cost
plus any excess over $150 was
subject to the 3 percent
limitation.
Minimum Tax
See "Additional Tax for Tax
P re ference s. "
Miscellaneous Itemized Deductions
Included in the statistics
were all specified nonbusiness
deductions from adjusted gross
income for which separate categories
were not provided on the
return form plus personal casualty
and theft losses.
On the return form, miscellaneous
deductions included expenses
incurred An the collection
of Income; or for the management,
conservation, or maintenance of
property held for the production
of income subject to tax; gambling
losses not in excess of winnings
reported in income; amortization
of bond premium; expenses connected
with the taxpayer's employment
(for example, dues to professional
societies, cost of tools
and supplies for the job, and fees
to employment agencies); fees paid
for the preparation of a tax return;
allowable~expenses of an
employee in connection with the
employer's business; and up to
$100 ($200 for a Joint return) of
contributions to candidates for
public office.
casualty and theft losses,
while shown as a separate category
on the return form, were classified
in "total miscellaneous deductions"
for the statistics. See
"Casualty and Theft Losses."
Moving Expense Deduction
An employee who had to move
to a new residence as a result of
changing jobs could deduct certain
reasonable expenses incurred in
moving from the former residence
to the new residence at the new
place of employment, subject to
limitations in the law. These expenses
were deducted from gross
income and used to arrive at adjusted
gross income.
Deductible expenses included
those incurred from moving household
goods and personal effects,
meals, and lodging of the taxpayer
and household members en route to
the new residence. There were no
201

.202
dollar limitations for these expenses.
Other allowable expenses,
for which there were dollar limitations,
included househunting
trips, cost of meals, lodging in
temporary quarters at the new
location for up to 30 days, and
costs related to settlement of an
unexpired lease or acquisition of,
a new lease, 6r selling of a residence
and purchase of a new residence.
The Tax Reform Act of 1976
reduced the mileage limitation
(the distance between the taxpayer's
new principal place of
work or business and his or her
former residence) from 50 to 35
miles.-'In addition, the Act increased
both the maximum deduction
for allexpenses subject to a
dollar limitation. from $2,500 to
$3,000, as well as the deduction
for househunting trips and temporary
quarters from $1,000 to
$1,500.
Net Operating Loss Credit
See "Additional Tax for Tax
Preferences" in section 3, Tax
Computation and Tax Rates.
Net Operating Loss Eligible for
Carryover
See "Additional Tax for Tax
Preferences" in section 3, Tax
Computation and Tax Rates.
New Jobs Credit
The new-jobs credit, provided
f or 'by the -Tax Reduction and Simplification
Act of 1977, was
designed to encourage businesses to
hire additional employees. The
credit for years beginning in 1977
was 50 percent of the excess of
the total unemployment insurance
wages (FUTA) paid during Calendar
Year 1977 over 102 percent of the
total FUTA wages paid during.1976.
For purposes of this computation,
the maximu FUTA wages were $4,200.
Sole proprietors claiming this
credit had to reduce their deduction
for wage and salary expense
by the amount of the credit.
Employers were also allowed
to take an additional credit of 10
percent of the first $4,200 of FUTA
wages paid to each handicapped
employee referred to the employer
upon completion of a vocational
rehabilitation progr-am. Only wages
paid during the 1-year period beginning
when the employee was first
paid FUTA wages were taken into
account in computing the 10 percent
credit. The credit was limited to
one-fifth of the amount of the reg-ular
50 percent credit which was
available without regard to the
$100,000 limitation.
The total amount of the
credit could not exceed (1). 50
Individual-Returns/1977 Explan'ation . of I Tems
percent of the increase in total Other Taxpayments
wages paid for the year over 105
percent of the total wages p~ild in
the previous year; (2) 25 percent
of the current-year FUTA wages;
0) $100,000; and (4) income tax
(excluding the penalty taxes on
self-employed, or Keogh, plans and
the special income averaging tax)
after reduction by all other tax
credits. Any excess credit, however,
could be carried back to the
3 preceding tax years and the
remainder carried forward to the 7
succeeding tax years.
Partnerships, Small Business-
Corporations, and estates and
trusts computed the credit at the
entity level and passed it through
to be claimed by the partner,
shareholder, etc. The amount of
the credit allowed to the individual
was limited to the individual's
proportionate part of the
income tax allocable to the
interest in the entity.
One-half Excess Long-term Gain
.See "Alternative Computation
of Tax."
One-half Insurance Premiums
See "Medical and Dental
Expense Deduction."
Other Income
Included here were such items
as prizes, awards, sweepstakes winnings,
gambling profits, recovery
of bad debts, insurance received as
reimbursement for medical expensestaken
in a previous year, and any
other income subject to tax for
which there was no specific line
provided on the return form. Taxpayers
were required to apply any .
deduction for business net operating
losses against "other income."
Other Tax Credits
Other tax credits included,
in general, only those statutory
credits which were used to offset
income tax and could not be
identified as credit for the
elderly, child care,-investment
work incentive (WIN), foreign tax,
new jobs, or contributions to
candidates credits "Other tax
credits", to the ex~ent , that thiy'
were in excess of total tax and
were refundable, were tabulated as
part of "other taxpayments."
Other Taxable Income
See "Maximum Tax on Personal
Service Income."
Other Taxes
See "Taxes Paid Deduction."
nOther taxpayments" included
the credit from a regulated investment
company for tax it paid on undistributed
capital gain dividends,
the "throwback tax credit" allowed
trust beneficiaries for certain
taxes previously paid by the trust,
and any other unidentified amounts
that could not be allocated to
"excess social security taxes withheld,"
or "credit for tax on
gasoline, fuel, and oil.." "Other
tax credits," to the extent that
they were in excess of total tax
and were refundable, were also
tabulated as "other taxpayments."
Other Than Cash Contributions
See "Contributions Deduction."
Overpayment
An overpayment of tax occurred
when the 11taxpaym6ntsn (de-
.fined below) exceeded "total tax
liability" (also defined below).
Overpayments could be refunded;
or, at the taxpayer's election,
taken as a credit on the subse-.
quent year's estimated tax; or
taken partly as a refund and
partly as a cr6dit against
estimated tax.
Partnership Net Profit or Loss
Partnership net profit or loss
was reported by persons who were
members of a partnership, syndicate,
joint venture, or unincorporated
association. The taxpayer's
profit or loss shown was the share
only of the ordinary income or loss
of the enterprise together with
payment made to the taxpayer for
the use of capital or as a salary.
If the individual was a member of
more than one partnership, the
single amount of partnership profit
or loss reported
in adjusted gross
income, whether' actually received
or not, was the net result of,all
shares.
Beginning with 1976, an "at
risk" limitation was introduced on
a partner's deductible losses that
were attributable to certain partnership
"tax shelter" activities
to which a partner contributed
cash or property. In general,
losses were allowed only to,the
extent of the aggregate amount the
partner had "at risk" in the
activity at the clode of the
year. (The amount "at risk" was
the partner's cash or property
investment or amounts borrowed for
which the partner was personally
liable or which was secured by
property other than the amount the
partner had invested.) 'The amount
"at risk" was reduced by the
losses deducted; however, a loss

in excess of the "at risk" amount
could be carried over for possible
use in the following year.
Partnership net profit or net
loss, as shown in this report, did
not include dividends qualifying
'for the exclusion, net short~- and
long-term capital gain or loss,
interest on tax-free covenant
bonds, and shares of specially
allocated income or loss, even
when these amounts were received
through a partnership. Such
income was included on the tax
return on the separate lines provided
for these income types.
Deductions for which there were
separate lines on the return were
similarly excluded from partnership
net profit or net loss.
Data shown for 1977 include
the number of returns showing just
net income received from all partnerships
and the number showing
just the net loss from all partnerships.
In other words, if a
return showed net income from one
partnership and a net loss from
another, that return was tabulated
in both the "total income" and
"total loss" columns. The columns
labelled "net income" and "net
loss" represent, as they do
annually, the sum of all income
and loss reported from all
partnerships; i.e., the net
amount, on a return-by-return
basis. .
Additional information for
paPtnerships can be found in
st4;Uztjx_z o~ Income--&a,~neh,&
Income Tax RetuAm.
Payment with Request for Extension
of Filing Time
This payment was made when the
taxpayer filed Form 4868, Application
for Automatic Extension of
Time to File U.S. Individual Tax
Return, and gained a 2-month extension
of time to file the Form 1040.
The application operated to extend
the time to file. It did not extend
the time for payment of expected
tax since full payment of
any tax due had to be made with the
application for extension. When
the taxpayer filed the return, he
or she entered the amount paid with
Form 4868 on Form 1040 to determine
any tax still due or any amount of
overpayment of tax.
Penalty Taxes on Individual.
Retirement Accounts (IRA's)
A taxpayer could start withdrawing
funds from this account
after reaching age 59-1/2, and had
to start doing so after reaching
age 70-1/2. Withdrawals prior to
reafting age 59-1/2 were subject
to a penalty tax equal to 10 percent
of the premature distribution.
Failure to withdraw funds after
Individual Returns/1977 . Explanation of Terms
reaching age 70-1/2 resulted in
the taxpayer's paying a 50 percent
excise tax on the amount by which
the minimum required distribution
exceeded the distributions actually
received by the individual
during the year. Contributions
to the retirement arrangement in
excess of the legal limitation
for the year (15 percent of earned
income; $1,500 maximum) were subject
to an excise tax equal to 6
percent of the excess contribution.
See atzo "Individual Retirement
Account Adjustment."
Pensions and Annuities
Generally, pensions represented
periodic income received
after retirement and made in consideration
of Past services with
an employer, while annuities were
income payable at stated intervals
in consideration of a specific premium.
A taxpayer could acquire a
pension or annuity either by purchase
from a commercial organization
(usually life insurance,
endowment, or annuity contracts) or
under a plan or contract connected
with the taxpayer's employment.
Those pensions or annuities obtained
in connection with employment
could be purchased entirely
by the taxpayer or could be financed
in part (a contributory
plan) or in whole (a noncontributory
plan) by contributions of the
employer'.
Since a noncontributory pension
was one paid for entirely by
an employer, the amount received
by the employee was fully taxable.
This fully taxable pension was
reported on line 17, "Fully taxable
pensions and annuities," of Form
1040 rather than on Schedule E,
Supplemental Income Schedule, which
was used to report amounts received
from a contributory pension.
For the taxpayer who participated
in a contributory retirement
plan while employed, the amount received
was only partially taxable.
In general, the amount excludable
from gross income, the nontaxable
portion, represented the taxpayer's
contributions under the plan, while
the taxable portion represented the
employer's contribution. (In the
case of a survivor-beneficiary of
a deceased employee, a "death b6nefit
exclusion" of up to $5,000
could be excluded, in addition to
the deceased employee's contribution.)
The entire amount of pension
received for the year was
reported on the-supplemental
income schedule (Schedule E, Form
1040), with the taxable portion
shown separately and carried
forward to line 18 of Form 1040,
and included under the heading
"Pensions, annuities, rents,
royalties, partnerships, estates
and trusts, etc." When it was
possible for the retired employee
or a survivor to recover the
employee's contributions within 3
years by the annuity payments received,
the payments were nontaxable
until recovered, after which
time the Dension or annuitv was
fully taxable. This was the
"three-year rule" computation
method. If this method was inapplicable,
the taxpayer's yearly
receipts were prorated into taxable
and nontaxable portions based
on life expectancy at the time that
the pension or annuity started ' (or
"term certain," if the annuity was
not payable for life).
Receipts from individually
purchased annuities were usually
prorated into taxable and nontaxable
portions, since the taxpayer
could expect to receive more than
the cost, but not within 3 years.
Percentage Standard Deduction
See "Zero Bracket Amount."
Personal Exemption Credit
See "General Tax Credit."
Personal Property Taxes
See "Taxes Paid Deduction."
Political Contributions
An individual taxpayer was
allowed to elect either a credit
or an itemized deduction for political.
contributions paid during
the tax year. This political contribution
could be to a candidate
or candidates for election to a
Federal., State, or local office,
in a primary; general, or special
election, or it could be to a political
campaign committee. The
credit against income tax was permitted
for 50 percent of the political
contributions made, up to $50
on a joint return or $25 on a
return of a married person filing
separately or on the return of a
single person. In lieu of the
credit, an individual could deduct
from adjusted gross income political
contributions made, up to $200
on a joint return or $100 on a
return of a married person filing
separately or on the return of a
single person.
Availability of the credit
allowed taxpayers claiming the
zero bracket amount to reduce
their tax liability by all or a
part of their political contributions.
Taxpayers who itemized
their deductions, however, found
that the deduction was more advantageous
if their marginal tax rate
exceeded 25 percent. (See "Marginal
Tax Rates," discussed in
this section.)
203

204.
Presidential Election Campaign
Fund Checkoff
Taxpayers could elect to
designate $1 ($2 on a joint return,
if both the taxpayer and spouse so
elected) of their 1977 tax liability
to be applied to the Presidential
Election Campaign Fund. This
designation could be made by checking
the appropriate box of Form
1040 or Short Form 1040A. The
election did not affect t~e size
of the taxpayer's tax liability
for the year.
Real Estate Taxes
See IiTaxes Paid Deduction."
Refund I
A refund of tax included all
overpayments not appiied by the
taxpayer as a credit to the next
year' s estimated tax. See "Overpavment.11
Regular Tax Computation
Typically, the taxpayer, in
determining "tax generated," first
computed tax table or taxable income.
Depending on marital status,
the taxpayer then applied rates
from one of four tax rate schedules
to compute the tax. In some instances,
the taxpayer used the
equivalent tax table or requested
the Internal Revenue Service to
compute the tax. Returns of such
taxpayers are also classified
under the regular.tax-computation
method.
Rent Net Income or Loss
Rent net income or loss constituted
a part of adjusted gross
income and was determined by deducting
from gross rents amounts
for depreciation, repairs, maintenance,
interest, taxes, commissions,
advertising, fuel, insurance,
janitor services, and any
other allowable expenses related
to the rented property.
Royalty Net Income or Loss ,
Net royalties consisted of
gross royalties less deductions
for depletion, depreciation, office
rent, legal fees, clerical help,
interest, taxes, and similar items.
Gross royalties included revenues
from oil, gas, and other mineral
rights; and revenue from patents;
copyrights on literary works;.
trademarks; formulas; and so on.
Certain royalties received under a
lease agreement on timber, coal,and
domestic iron ore were eligible
for capital gains or ordinary loss
treatment under Code section 1231,
and as a result of the separate.
computation required by that
Individual Returns/1977 e Explanation of Terms
section are-reflected in the..
statistics for "sales of capital
assets" and "sales of property
other than' capital.assets."
Salaries and Wages
Salaries and wages as reported
on the tax return were
amounts of compensation for personal
services. Also included
were commissions;.bonuses; tips;
fees; excess reimbursement over
employee business expenses; and
the value of nonmonetary payments.
for services, e.g., merchandise,
accommodations, or property..
Identifiable amounts for.any of
these categories which may have
been reported by taxpayers in
"other sources" of income were
treated as salaries and wages for
the statistics. Excluded were portions
of salaries and wages earned
abroad which were tax-exempt under
special provisions of the law.
Sales of Capital Assets
In general, capital assets for
tax purposes meant property-regarded
or treated as an investment,
such as stocks, bonds, and nonbusiness
real estate including a personal.
residence. Thus, property
held for sale during the ordinary
course of business operations and
depreciable and real property held
in connection with a business were
among the property types not
covered by the tax definition of
capital assets.
.- Beginning with 1977,-.if
capital assets were held for more
than 9 months prior to their sale,
only half of this "long-term" gain.
was taxable and in many instances,
at a rate lower than otherwise
(,6ee "Alternative Computation of
Tax"). If the sale resulted in a
.loss, regardless of how long the
asset was held, the loss could be
completely offset against capital
gains and to a limited extent,
against ordinary income. However
capital losses from sales of pro-.
perty held for personal use were
not deductible.
In addition, net gains from
dispositions of some of the property
types excluded from the tax
definition of capital gains could
receive long-term capital gains
treatment under special conditions
set forth in the Code, while net
gains from some of the property
types included under the definition"could
be denied capital gains
treatment under other Code sections.
The latter are referred-to
under the heading "Sales of Property
Other Than Capital Assets,
Net Gain or Loss."
Property used in trade or
business, excluded-from the tax
definition of capital assetsp
received special treatment under
Code section 1231. Examples of
such property were depreciable and
real assets; most types of live~stock,
if held for breeding purposes;
the value of unharvested
crops sold with the land.they grew
on; as %ell as certain mineral
rights. Gains and losses from
sales or other dispositions under
section 1231 had to be aggregated
first. If the overall result was
a net gain, it was included in the.
computation of net long-term capital
gain or loss. If the overall
result was a net loss, it was
included in the computation of net
gain or loss from sales of property
other than capital assets.
Thus, a net gain under section
1231 could receive the-more bene_~
ficial treatment of a long-term
capital. gain taxable under the
alternative computation of tax,
while a-net loss under section
1231 received the more beneficial
treatment of an ordinary loss
which could be fully offset
against ordinary income as well'as
against capital gains. Included
in the computation under section.
1231 was the result of an additional
special computation to determine
net gain or loss from -
certain "involuntary conversions"
(principally from casualty or
theft) of business assets and also
of capital assets.
The amount of gain eligible
for capital gains treatment under
section 1231 was reduced in the
case of certain depreciable and
real property by sections 1245,
1250, 1251, 1252, and 1254.-and,-in
the case of certain mining property,
by section 617. Code sections
1245 and 1250 limited the
eligible gain in the case of certain
depreciable and real property
based on adjustments for any accelerated
depreciation claimed since
1962, 1964, or 1975, the date
.
depending on the category of prop-
'
erty involved. To the extent of
such depreciation, the gain was
ordinary income. Code sections
1251 and 1252 further limited the
eligible gain generally on these
same property types if they were
used in the busi ness of farming,
while Code section - 1254 treated
the gain from dispositions of oil
or gas property, for the most part,
as.ordinary income. Code section
617 limited eligible gain on depletable
mining property, after
taking account of certain exploration
and development expenditures,
as gain from ordinary income, to
the extent of these expenditures.
None of these Code provisions had
any effect on the treatment under
section 1231 of losses resulting
from the disposition ofcsuch
property.,.
The individual in reporting
his or her gains and losses from
property used in trade or business.

and from involuntary conversions
also included distributive shares
received as a partner in a partnership.
Net .6hoAt-teAm gain 0& toz,6--
Gains and losses from sales or exchanges
of capital assets held for
9 months or less were considered
to be short-term. To obtain the
net short-term gain or loss, gains
and losses from current-year transactions
were combined with any
short-term capital loss carryover
and any net short-term gain or loss
received from partnerships or fiduciaries.
Net Zong-teAm gain ox toz.6--
Gains and losses from sales or exchanges
of capital assets (or property
treated as capital assets)
held more than 9 months were considered
to be long-term, and therefore,
eligible for special.beneficial
tax treatment (.6ee "Net capital
gain" below and "Alternative
Computation of Tax"). To obtain
the net long-term gain or loss,
gains and losses from current-year
transactions were combined with:
(1) any net long-term gain or
loss received from partnerships or
fiduciaries,
(2) any capital gain distributions
of regulated investment
companies (mutual funds) and real
estate investment trusts,
(3) net long-term gains included
in the profits of Small
Business Corporations electing to
be taxed through shareholders (reduced
by the special tax computed
at the company level), and
(4) any long-term capital loss
carryover from recent years prior
to 1977.
ShoAt-teim capitat to.6,6
cAWove&--This carryover represented
that portion of any net
short-term capital loss incurred,
but not deducted, in a previous
taxable year. Also, the loss
carryover could offset dollarfor-dollar
all current-year shortterm
capital gains and up to
$2,000, beginning with 1977, of
any other income.
Long-teAm capitat toz.6
CaA&yoveA--This carryover-was the
unused portion of net long-term
loss which exceeded the loss
year's net short-term capital gain
or the $2,000 maximum deduction
for net capital loss. If both a
net short-term loss and net
long-term loss were incurred, the
net short-term loss was offset
first. Net capitat gain--In
computing the gain in adjusted
gross income, the net short-term
gain or loss was combined with the
net long-term gain or loss. The
amount of net capital gain in adjusted
gross income conformed to
one of several conditions, namely,
(a) on returns with a net long-term
gain, the amount included in ad-
Individual Returns/1977 * Explanation of Tems
justed gross income was 50 percent
of the excess net long-term gain
over net short-term loss; (b) on
returns with only net long-term
gain, 50 percent of the net gain,
(a) on returns with both net shortand
long-term gain, the entire
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) on other
returns, the entire excess net
short-term gain over net long-term
loss.
Net capital gain included
capital gain distributions received
by taxpayers which would
normally have been entered on
Schedule D, Capital Gains and
Losses. However, if taxpayers
did not need Schedule D to report
any other gains or losses or to
compute the alternative tax, they
did not file that schedule but
entered 50 percent of the capital
gain distributions directly onto
Form 1040, on line 15. The statistics
include a separate tabulation
of the capital gain distributions
not reported on Schedule D.
Net capitat to,6,6--.In computing
net loss in adjusted gross income,
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) the short-term loss in
excess of any long-term gain plus
one-half of the long-term loss in
excess of any short-term gain,
(2) taxable income computed without
regard to the capital loss or personal
exemptions, or (3) $2,000
($1,000 for married taxpayers
filing separately).
Additional information on
sales of capital assets is
available periodically from the
SuppZementat RepoAt, Statiztiu oJ
Income--Sate,6 o6 CapiW A6.6et6
RepoAted on Individimt Income Tax
Retwum.
Sales of Property OtheA Than
Capital Assets, Net Gain or Loss
In general, property other
than capital assets was property
of a business nature, in contrast
to personal investments which were
capital assets. Specifically
included were sales of (1) certain
depreciable, depletable, and real
business property; (2) accounts
and notes receivable acquired in
the ordinary course of business
for services rendered or from sale
of property includable in
inventory or ordinarily held for
sale; and (3) certain copyrights,
literary, musical, or
artistic compositions or similar
properties. Also included were
(4) any share of gain or loss
received through partnerships and
fiduciaries (in contrast to capi-
tal gain or loss, gain or loss
from these transactions was included
in its entirety in computing
adjusted gross income);
(5) losses on sales of small business
investment company stock (considered
as ordinary losses rather
than capital losses; gains were
treated as capital gains, however);
(6) losses on small business stock
if the owners were the original
holders (however, such losses were
limited to $50,000, or $25,000 for
married persons filing separate
returns; gains were treated as
capital gains); (7) amounts
resulting from certain "involuntary
conversions" including net
losses from casualty and theft
(,6ee atzo "Sales of Capital
Assets" above).
As explained under the definition
of "Sales of-Capital Assets,"
a net gain from dispositions of (or
certain transactions involving)
specified types of business property
that were excluded from the
tax definition of capital assets
could receive capital gains treatment
under section 1231. Gains
and losses from these dispositions
or transactions first had to be
aggregated. If the overall result
was a net gain, it was included in
the computation of net long-term
capital gain. If the overall
result was a net loss, it was
included in the computation of net
gain or loss from sales of property
other than capital assets.-
The gains and losses resulting
from involuntary conversions were
especially treated in this
computation.
The amount of gains (though
not losses) on dispositions of
property includable in the computation
of net gain or loss under section
1231 was limited as a result
of Code sections 1245, 1250, 1251,
1252, 1254, and 617. To the extent
that the amount eligible for capital
gains treatment was thereby
reduced, the amount included in the
statistics for net gain or loss of
sales of property other than capital
assets was increased.
Self-Employed Retirement Deduction
In general, self-employed
individuals could contribute to a
qualified retirement plan (Keogh
or H.R. 1.0 plan) and deduct all or
a part of such contributions in
computing adjusted gross income.
The amount which could be deducted
was based on "earned income,"
defined as (1) net earnings from
self-employment, but only with
respect to a trade or business in
which personal services of the
taxpayer were a material incomeproducing
factor, and (2) income
from the disposition of certain
property by individuals whose personal
efforts created the property.
205

206 ,
The maximum amount of the annual
contribution to the plan and deduction
was 15 percent of earned income
or $7,500, whichever was less.
Self-Employment Income
See "Earned Income Credit."
Self-Employment Tax
This tax, levied under the
social security system, was reported
by each individual. who had
self-employment earnings of at
least $400 derived from a sole
proprietorship or from any share
of partnership profits. U.S.
citizens employed by foreign
governments or international
organizations were subject to
self-employment tax on salaries.
Certain types of income and
deductions such as investment
income., capital gains and losses,
deductions for net operating
losses, and casualty and theft
losses were 'not
allowed in computing
self-employment earnings.
The maximum amount subject to
self-employment tax for 1977 was
$16,500, reduced by any wages on
which social security tax had been
withheld by any employer. The
maximum self-employment tax
payable was $1,303.50,.based on
the 7.9 percent rate in effect for
that year. For 1976, the rate was
the same, although the maximum
amount of earnings subject to the
tax was $15,300 and
tax was $1,208.70..
the maximum
Separate Returns of Husbands and
Wives
Generally, these were returns
of married persons, each of whom
filed a return independently of
his or her spouse and reported
only his or her own income,
exemptions, and tax. Also
included were returns of married
persons where-only one spouse had
income,'but elected to use this
classification, and also returns
with community property income
divided between husband and wife.
If the husband (or wife)
filed a sep.arate return, the
wife's (or husband's) exemption
could be claimed on that return,
but only,if the'other spouse did
not file a return, had no gross
income, and was not the dependent
of another taxpayer.
Single Persons, Returns of
These were returns of (a) unmarried
persons who did not qualify
as head of household or surviving
spouse, or (b) certain married individuals
living apart from their
spouses who maintained a home,
independently of the spouse, that
was the home of the individual's
Individual Returns/1977 0 Explanation of Terms
child or stepchild for more than 6
but less than 12 months of the
year.
Size of Adjusted Gross Income
The amount of adjusted gross
income reported by the taxayer on
the return was the basis for
classifying data by size of
adjusted gross income. Returns
with deficit and those on which
income and loss were equal were
classified as having "no adjusted
gross income" and appear as a
separate class in most basic
tables. The absence of a class
labelled."no adjusted gross income"
indicates that any deficit or .
breakeven returns in a table were
included in the lowest income
class.
Size of Expanded Income, Adjusted
Gross Income Less Investment
Interest, and Adjusted Gross
Income Plus Excluded Tax
Preferences
The amounts on which these
classifications are based-adjusted
gross income, investment
interest, and tax preferences
excluded from adjusted gross.
income-- are each described in
this section. Returns on which
this computation resulted in zero
or a negative amount were included
in the lowest income class.
,Small, Business Corporation Net
Profit or Loss
Net income of a qualified
Small Business Corporation
(defined in section 1371 of the
code), whether or not distributed,
was taxed directly through.each
stockholder. Net losses were
allocated to each stockholder to
be offset against
other sources.
income.from
Small Business Corporation
income shown in this report was
the amount taxable to stockholders
'as ordinary income. Net long-term
capital gain, reduced by the
special tax imposed at the corporate
level, retained,its
character in the hands of the
stockholders and is included in
the statistics for net gain or
loss from sales of capital.
assets. Undistributed income
earned in previous years was
taxable to stockholders in the
year i.t was earned and could be
distributed during the current
year without any further tax.
Data shown for 1977 include'
the number of returns showing just
net income received from all Small
Business Corporations and the
number showing just the net 'loss
from all Small Business Corpora-
-tions. In other words, if a return
showed net income.from one Small
Business Corporation and a net loss
from another, that return was
tabulated in both the "total
income" and "total loss" columns.
The columns labelled "net income"
and "net loss" represent, as they
do annually, the sum of all income
and loss reported from all Small
Business Corporations; i.e., the
net amount, on a return-by-return
basis.
.
Information on Small Business
,~orporations can be found in
Stat.j.ht.ica o6 Income--Co,%poAation
Income Tax RetuAnz.
Social Security Taxes on Tip Income
This amount was comprised of
social security tax on unreported
tip income and uncollected employee
social security tax on tips.
Cash tips amounting to $20 or
more that th& taxpayer received in
a mo nth while working for any one
employer - were subject to withholding
of income tax and social security
tax. Cash tips counted toward
social sectirity benefits and an
employee was required to report
these tips.to, the employer and the
employer then withheld the social
security tax. However, if the
employer was unable to withhold the
amount of social security tax, the
amount of uncollected social security
tax on tips was indicated on the
employee's Form W-2, and the taxpayer
was required to report the
uncollected
Form 1-040.
tax and pay it with the
If the employee did not report
the tips to the employer, the -
employee,was required to compute
the social security tax on
unreported tips on Form 4137 and
attach it to Form 1040.
Standard Deduction
See "Zero Bracket Amount."
State and Local Gasoline Taxes
See "Taxes Paid Deduction."
State and Local Income Taxes
See IiTaxes Paid Deduction."
State Income Tax Refunds
These represented that part of
a refund of State income tax attributable
to itemized deductions
taken in a prior year that resulted
in a Federal tax benefit. Taxpayer's
were instructed not to net the refundable
amount against the~current
year's itemized deduction for State
and local income tax.
States
State classifications were
based on the taxpayer's address
shown on the pre-printed address

label or reported by the taxpayer
on the return. Data for returns
with addresses outside the 50
States and the District of Columbia
are shown in three separate classifications
in the State statistics.
Returns from the Virgin Islands,
Panama Canal Zone, and returns with
foreign addresses are classified
under "U.S. citizens abroad." Data
from qualifying returns filed by
bona fide residents of Puerto Rico,
described in section 5, State Data,
are shown in a separate category.
The third classification covers
returns for armed service personnel
stationed abroad who filed their
returns in New York, California, or
Washington where their Army Post
Office (APO) or Fleet Post Office
(FPO) was located.
Statutory Adjustments
These were certain adjustments
to gross income allowed as deductions
in arriving at adjusted gross
income. Statutory adjustments were
comprised of disability income exclusion;
moving expense deduction;
employee business expense deduction;
self-employed retirement deduction;
forfeited interest penalty;,payments
to an individual retirement account
(IRA); and, beginning with 1977,
alimony paid.
Each of the above is described
under separate heading.
Stock Options
C,ee
"Tax Preferences."
Surviving Spouses, Returns of
These returns were filed by
widows or widowers whose spouse had
died during either of the 2 preceding
years, who had not remarried,
and who had maintained a home which
was the principal abode of a child
or stepchild for whom the taxpayer
was entitled to an exemption.
Surviving spouse taxpayers
could use the joint return tax
rates for the 2 taxable years following
the year of death of the
spouse; however, the deceased
spouse could not be claimed as an
exemption, except for the year of
death.
Tax Credits
Included here were the
following credits applied against
income tax:
(1) credit for the elderly,
(2) investment credit,
(3) foreign tax credit,
(4) contributions to candidates
credit,
(5)
c redi t,
work incentive (WIN)
(6) general tax credit,
(7) new jobs credit, and
(8) "other" tax credits.
Individual Returns/1977 * Explanation of Terms
In addition, for purposes of this
report, the amount of earned
income credit used to offset
income tax before credits was
included in this amount.
Each of the above is
described under separate heading.
Tax Due at Time of Filing
"Tax due" was reported on
returns where the tax withheld,
the payment with request for extension
of filing time, and the
payment of declaration of estimated
tax, together with other
reported prepayment credits, were
insufficient to cover the total of
income tax after credits, selfemployment
tax, tax from recomputing
prior-year investment
credit, additional tax for tax
preferences, social security tax
on tip income, penalty taxes on
individual retirement accounts
(IRA's), and "other taxes." Each
is described under separate
beading.
Tax From Recomputing Prior-Year
Investment Credit
The investment credit provisions
of the law included a "recapture
rule" which required taxpayers
to pay back all or a portion of any
investment credit taken on property
disposed of before the end of the
useful life claimed in computing
the credit. The law specified that
if property qualifying for the
credit was disposed of before the
end of its intended useful life,
the tax for the year of disposal
was increased by the difference
between the credit originally
claimed and the credit that would
have been allowed based on the
shorter actual life.
Tax credits could not be
applied against this additional
tax.
Tax Generated
.
This amount, computed for the
statistics, was the tax on "taxable
income" or "tax table income"
beJoXe reduction by the general tax
credit. On most returns (those
without one of the "taxes from special
computations") this equalled
"income tax before credits."
Tax on Partially Tax-Exempt Income
See "Income Earned Abroad."
Tax Paid With Return
This was the amount of tax
tendered by the taxpayer with the
return in the event that the
taxpayer's "total tax liability"
exceeded "total taxpayments.11 See
at4o "Tax Due at Time of Filing"
and "Balance Due After Remittance."
Tax Preference Offset
See "Maximum Tax on Personal
Service Income."
Tax Preferences
The following income and deduction
items, which were given
special treatment in the computation
of taxable income, were considered
tax preferences subject to
an additional tax (the so-called
"minimum tax"):
(1) AcceteAated depteciation
On (a) low-income rental housing;
(b) other real property (defined
in Code section 1250); (c) leased
personal property (defined by section
1245). The excess of accelerated
depreciation over the amount
computed under the straight-line
method was considered a tax preference.
(2) AmoAtization o6 (a) certified
pollution control facilities;
(b) railroad rolling stock; (c) onthe-job
training facilities; (d)
child care facilities. The'excess
of these special rapid write-offs,
over what otherwise would have been
a depreciation deduction, was considered
a tax preference.
(3) Stock option-6-Upon exercising
a stock option, an employee
did not actually receive income
when the fair market value of the
stock was greater than the option
price. This price difference was,
however, treated as a tax preference
in the year the option was
exercised.
(4) Bad debt iLezeAvez.--Financial
institutions were allowed deductions
toward a reserve for bad
debts under prescribed rules. When
these deductions exceeded the
amount required by actual experience,
the excess was considered a
tax preference.
(5) Deptetion.--The excess of
depletion over the adjusted basis
of property (reduced by depletion
taken in prior years) was a tax
preference. Thus, when the taxpayer
had written off the investment,
a tax preference was realized.
(6) Capitx~e gai".--One-half
of the excess of net long-term gain
over net short-term loss was excluded
from income in computing the
regular income tax. The excluded
half was treated as a preference.
(7) Intangibte dAitting expenzes.--Intangible
drilling expenses
incurred by operators of oil
and gas wells were chargeable, at
the operatorls.option, either to
capital or to current expenses.
However, beginning with Tax Year
1976, to the extent that any amount
deducted as a current expense exceeded
the amount that could have
been charged to capital and
deducted over the applicable number
of years, it had to be reported
as a tax preference.
207

208
(8) Itemized deductions tax
preference. This was the excess
of "adjusted itemized deductions"
over 60 percent of adjusted gross
income. "Adjusted itemized deductions"
was defined as all itemized
deductions except those for medical
and dental expenses and those
for casualty and theft losses. (If
adjusted itemized deductions exceeded
100 percent of adjusted
gross income, the excess over 100
percent was not included as a tax
preference, since it had no tax
consequence.)
The above items were considered
tax preferences, whether
incurred directly, by individual
taxpayers, or distributed or al.located
to them as owners, beneficiaries,
or shareholders of partnerships,
estates and trusts,
Small Business Corporations, and
regulated investment companies.
For a discussion of the "nobenefit"
deduction which could
reduce total tax preferences, .6ee
section 3, Tax Computation and Tax
Rates.
Tax Preferences Excluded from
Adjusted Gross Income
The purpose of this item was
to approximate, to the extent possible
from tax return data, eco-
'
nomic income exempted from taxation
under provisions of the Internal
Revenue Code. Its components.were:
(1) dividend exclusion (up to
$100 per taxpayer receiving qualified
dividends),
-.(2) capital-gains exclusion
(one-half the excess of net longterm
capital gains over net shortterm
capital losses), and
(3) any other tax preferences
reported on Form 4625, except that
the "itemized deductions tax preference"
was not included in this income
concept.
The derivation of "tax
preferences excluded from adjusted
gross income" is discussed in
greater detail in section 1,
Returns Filed 'and Sources of
Income, under "High-Income
Returns, Taxable and Nontaxable."
Tax Rates
The tax rates, graduated from
0 to 70 percent, were grouped by
marital status and size of taxable
income into four sets or schedules
of rates for individual income tax
returns. These four sets of rates
were for:
(1) Joint returns ahd returns
of surviving spouses,
(2) separate returns,of
husbands and wives,
(3) returns of heads of
household s, and
(4) returns of single persons
not heads of households or surviving
spouses.
Individual Returns/1977 e Explanation-of Terms
The rates were specified in
the "tax rate schedules" and incorporated
into the "tax tables."
For' Tax Year 1977, the tax
tables were revised so that, in
general, taxpayers filing Jo7int
returns with "tax table income" of
$40,000 or less or nonjoint returns
with "tax table income" of $20,000
or less could use the tax tables,
even if they itemized their deductions.
On returns with the zero
bracket amount only (i.e., standard
deduction returns), tax table
income equalled adjusted gross
income; on itemized deduction
returns, tax table income equalled
either adjusted gross income less
"excess itemized deductions" or
adjusted gross income plus the
"unused zero bracket amount."
(For 1976, taxpayers with taxable
income of $20,000 or less could
use the tax tables, regardless of
the form of deduction used.) In
general, taxpayers1whose income
was larger than the above limits
had to use the tax rate schedules.
Reproductions of the tax tables
and tax rate schedules can be
found in section 8, 1977 Forms
and Instructions.
Tax rates were used to
classify data for some of the
tables in section 3, Tax Computation
and Tax Rates. Typically,
the tax on income subject to tax,
was computed using various 'rates
which applied to separate.segments
of income. Thus, associated with
each tax rate applicable to a
6ven return was a segment of
income andthe tax generated on__
that segment of income. 'The last
or highest tax rate applicable to
income on the return was known as
the marginal-rate. (See atao the
illustrations and text in~section
.3, Tax Computation and Tax Rates.).
Tax Savings From Special Tax
Computations
In this report, the amount of
tax savings is the difference between
the tax resulting from using
the provisions of one of the special
tax computations (e.g., alternative
tax, maximum tax, or tax
from income averaging), and the
amount of regular tax that would
have resulted from not using,theseprovisions.
See aUo section 3,
Tax Computation and Tax Rates.
Tax Table Income
This was a new income concept
introduced by the Tax Reduction and
Simplification Act of 1977. On returns
with a "zero bracket amount"
(defined below) only, this amount
equalled adjusted gross income.
On returns with itemized deductions,
this amount equalled adjusted
gross income minus "excess
itemized deductions" (defined
above) or adjusted gross income
Plus the "unused zero bracket
amount" (defined below). Those
taxpayers eligible used this "tax
table income" in the tax tables to
determine their tax; otherwise,
they used "tax table income" to
derive "taxable income" (tax table
income minus the exemption amount)
which, in turn, was used to determine
their tax from the tax rate
schedules.
Tax table income was not
tabulated for deficit returns
or for returns on which excess
itemized deductions exceeded
adjusted gross income.
Taxable and Nontaxable Returns
Taxability of a return for
purposes of this report was determined
by the presence of income
tax after credits or'the additional
tax for tax preferences ("minimum
tax"). Some returns classified as
"nontaxable" may have had a liability
for tax from the selfemployment
tax, the social security
tax on tip income, tax from recomputing
prior-year investment
credit, penalty taxes on individual
retirement accounts, or other
taxes; however, these taxes were
disregarded for the purposes of
this classification, since the
first two were considered social
security (rather than income)
taxes, and since the remaining
ones were either based on prioryear's
income or were penalty
taxes. For the purposes of this
report, the earned income credit
was treated as an amount which
could be used to offset income tax
before credits. As a result, returns
on which there was no additional
tax for tax preferences and
on which the earned income credit
exceeded income tax after reduction
by any other credits became.nontaxable
strictly because of the
earned income credit.
It should be noted that classification
as taxable or nontaxable
was generally based on each
return as it wai originally.filed;
the-classification does not reflect
any changes resulting from
audit or other enforcement activities.
However, there was an exception
in the case of the earned income
credit., Many taxpayers received
the credit only after the
Internal Revenue Service had reviewed
their return during processing
for revenue purposes and
notified them that they were
eligible to receive the credit.
Therefore, while these returns
were neither amended nor corrected
through audit, they were adjusted
during revenue processing and these
adjustments are reflected in the
data. (See atzo "Earned Income
Credit," in section 3, Tax Computation
and Tax Rates.)

Taxable Income
For Tax Year 1977, taxable
income was equal to adjusted gross
income minus "excess itemized
deductions" (or plus the "unused
zero bracket amount") minus the
exemption amount. It inctuded the
"zero bracket amount" (the equivalent-of
the former "standard deduction")
and thus is not com-'
parable to "taxable income" shown
in earlier reports. This change
in the definition of taxable
income was brought about by the
Tax Reduction and Simplification
Act of 3.977 which introduced the
concept of a zero percent tax
bracket and the zero bracket
amount (the income "taxed" at that
rate).
Taxes From Special Computations
These were comprised of the
special income averaging tax (from
Form 4972), the multiple recipient
special income averaging tax (from
Form 5544), the tax on accumulation
distributions of trusts (from
Form 4970), the tax from recapture
of a new house credit (from Form
5405), and penalty taxes on selfemployed
(Keogh) plans. All of
these taxes were included in income
tax before credits. See at6o
section 3, Tax Computation and Tax
Rates.
Taxes Paid Deduction
Taxes allowed as a deduction
from adjusted gross income included
personal property taxes, State and
local income taxes, certain State
and local retail sales taxes, State
gasoline taxes, taxes paid to foreign
countries or U.S. possessions
unless a foreign tax credit was
claimed, and real estate taxes except
those levied for improvements
that tended to increase the value
of the property. Federal taxes and
State and local taxes on cigarettes,
tobacco, and alcoholic beverages
were not deductible, nor
were State and local fees for vehicle
license plates (unless the
fees were based on the value of
the vehicle) or driver's license.
Taxes paid on business property
were deducted separately on
the schedules for business, rent,
and royalty income, and are, therefore,
excluded from the tax deduction
statistics.
Taxpayments
These payments were, in effect,
made before the return was
filed and were applied against tax
liability to determine the amount
payable at the time of filing.
They included the following:
(1) income tax withheld,
(2) excess social security
taxes withheld,
Individual Returns/1977 # Explanation of Terms
(3) credit for tax on certain
gasoline, fuel, and oil,
(4) other taxpayments,
(5) payments on 1.977 declaration
of est imated tax,
(6) payment with request for
extension of filing time, and
(7) the "refundable portion"
of the earned income credit. (See
atzo "Earned Income Credit" in
section 3, Tax Computation and Tax
Rates.)
Taxpayments in excess of total
tax were refundable.
Each of the above is described
under separate heading.
Total Income Tax
Total income tax was the sum
of income tax after credits and
the additional tax for tax preferences.
It did not include any of
the other taxes which made up
"total tax liability." Total
income tax was the basis for
classifying returns as "taxable or
nontaxable."
Total Itemized Deductions
Itemized deductions from
adjusted gross income could be
claimed for contributions, interest
paid, taxes, medical expenses,
casualty or theft loss,
union dues, and other qualifying
expenditures for which no specific
line or schedule was provided on
the return. Such other expenditures
included educational expenses
and certain expenses
connected with the taxpayer's
employment.
The Tax Reduction and Simplification
Act of 1977 required
that four groups of taxpayers
itemize their deductions, even if
those deductions were less than
the zero bracket amount. Those
individuals were either dependents
with unearned income, married and
filing a separate return, dual
status aliens, or excluding income
received from sources in U.S. possessions.
Dependents with unearned
income could substitute their
earned income, if it was larger
than their itemized deductions.
Total itemized deductions was
the amount before the zero bracket
amount was taken into account. It
was tabulated only from returns
showing positive adjusted gross
income.
Total Tax Liability
Total tax liability was the
sum of income tax after credits,
additional tax for tax preferences,
self-employment tax, social security
tax on tips, tax from recomputing
prior-year investment credit,
taxes from individual retirement
accounts, and other taxes, reduced
by the "earned income credit used
to offset all other taxes" (defined
under "Earned Income
Credit").
Type of Tax Computation
There were six methods of
computing the tax on income
subject to tax (taxable income on
most returns) used to classify
returns for the statistics. These
methods were:
(1) regular tax, as computed
from the tax tables or tax rate
schedules accompanying the Forms
1040 or 1040A;
(2) alternative tax, computed
on Schedule D, Capital Gains and
Losses;
(3) income averaging, computed
on Schedule G, Income Averaging;
(4) maximum combined with
regular tax, computed on Part I,
Form 4726, Maximum Tax on Personal
Service Income;
(5) maximum combined with
alternative tax, computed on Part
II, Form 4726, Maximum Tax on
Personal Service Income; and
(6) tax on partially taxexempt
income, computed on Form
2555, Exemption of Income Earned
Abroad.
All of these tax computation
methods are described separately
in this section and in section
3, Tax Computation and Tax Rates.
Union Dues
see "Miscellaneous Itemized
Deductions."
Unused Credits
See "Additional Tax for Tax
Preferences."
Unused Zero Bracket Amount
This deduction concept,
introduced by the Tax Reduction
and Simplification Act of 1977,
represented the amount by which
the zero bracket amount exceeded
total itemized deductions. See
atAO "Zero Bracket Amount" and
"Total Itemized Deductions" in
this section and the text in
section 2, Deductions and Exemptions,
and section 3, Tax
Computation and Tax Rates.
Work Incentive (WIN) Credit
Taxpayers could take a credit
against their income tax liability
of 20 percent of the WIN (Work Incentive
Program) wages paid an
employee hired under the Federal
Work Incentive Program. This program
was intended to provide welfare
recipients the training and
job opportunity needed to help
them become economically independent.
The Tax Reduction Act of 1975
extended the WIN program to include
209
I

210
Federal welfare recipients of the
Aid to Families with Dependent
Children (AFDC) Program under the
Social Security Act. Small Business
Corporations and partnerships
were eligible for the credit,
although the credit itself was
claimed not by these entities, but
by the shareholders and partners,
respectively, on their individual
income tax returns.
The credit was limited based
on the presence and size of Income
tax, reduced by the general, foreign
tax, investment, elderly, and
political contrIbutions credits,
before the WIN credit could be
applied. Amounts !.n excess of
these limitations could be carried
back 3 years and the remainder
carried forward to the 7 years
subsequent to 1977 for use in
computing the credit for these
years.
The Tax Reform Act-of 1976.
contained several amendments to
this credit which took effect when..
the law was enacted (October 1976).
However, most of the effect of
these provisions was realized for
the first time on 1977 tax returns.
Individual Returns/1977- Explanation,of Tems
The Act:
U.) increased the maximum
limit of the credit from $25,000
of tax liability, plus one-half.of'
the excess over $25,006, to $50,000
of tax liability, plus one-half of
the excess over $50,000; .
(2) decreased the amount of
I time requir6d to retain an employee
(in employmefit) in order for an -
employer to qualify for the credit
from 24 months to 6 months;. and
(3) extended the time the
welfare recipient portion of the
credit could-be used.
Zero Bracket Amount
This amount replaced the
"standard deduction," in -effect
for 1976 and.earlier years. While
the former standard deduction consisted
of a minimum and a maximumamount,
depending upon'marital status,
the new zero bracket amount -
was a flat amount, although-41so
based on ~arital status.' For 1977,
the zero bracket amount was $3,200
for married taxpayers filing
jointly and surviving spouses,
$2,200 for single persons and
heads of households, and $1,600
for married taxpayers filing
separately. This compared to a
basic standard deduction of 16
percent of adjusted gross income,
with fixed limits depending upon
marital status, for 1976. Thus,
for 1976, for unmarried persons
(including heads of households
with dependent children), the
limits were a minimum of $1,700
and a maximum of $2,400; for
married persbns filing jointly
(as well as for,certain surviving
spouses), the limits were $2,100
and $2,800. The lower limits represented
the "low-income allowance,"
i.e., a minimum deduction
allowed any one taxpayer.
The zero bracket amount
appeared in the revised tax
tables and ' tax rate.schedul es as
the amount of income "taxed" at
the zero percent tax rate (hence,
the name). Therefore, this amount
was available to all taxpayers,
whether or not they itemized their
deductions.
See at6o the text in section
2, Deductions and Exemp~ions, and
section'J,. Tax Computation and Tax
Rates.

Section 7
Sources of the
Data,
Description of the
Sample and -
Limitations of
thei Data
Contents -
returns due but not yet filed
Sources of the data, 211
Description of the sample and
could best be represented by the
returns for previous income years
that were processed in 1978.
limitations of the data, 211
Sample criteria and selection, 211
Method of estimation, 211
Sampling variability, 211
Response and other.
All.returns processed during
-1978 were subjected to sampling
except tentative and amended
returns. Tentative returns were
not subjected to sampling because
nonsampling errors, 213 the revised returns may have been
Text tahtu
7A - Number of Form 1040 and Form
1040A returns in the population
and sample, 1977, 212
7B "Upper limit" coefficients of
variation for the estimated
number of returns, 1977, 213
&zic tAUeA
7.1 All returns: coefficient of
variation for sources of
income and adjustments by
size of adjusted gross income, 215
7.2 All- returns: coefficient of
variation for number of
returns by size of adjusted
gross income and by State, 224
SOURCES OF THE DATA
The data in this report
were estimated from a stratified
systematic sample of unaudited
indivi I dual income tax returns,
Forms 1040 and 1040A, filed by
.U.S. citizens and residents during
Calendar Year 1978 and processed
in the service centers of the
Internal Revenue Service. The
total sample of 155,299 returns
was systematically selected from a
population of 86,759,093 returns.
The estimates in this report
are intended to represent all returns
filed for Income Year 1977.
While the overwhelming majority of
returns processed during 1978 were
for Calendar Year 1977, a few of
them were for non-calendar years
ending during 1.977 and 1978 and
some were delinquent returns for
prior years. Returns for recent
prior years were used for the 1977
statistics in place of 1977 returns
processed for revenue purposes
after December 31, 1978. In
general, the characteristics of
sampled later on, while amended
returns were excluded because the
original returns had already been
subjected to sampling.
DESCRIPTION OF THE SAMPLE AND
LIMITATIONS OF THE DATA
Sample Criteria and Selection
Form 1040 and 1040A returns
filed and entered into the Internal
Revenue Service's Individual
Master File System during
1978 were stratified, by computer,
into sample classes based on State
groupings, the presence or absence
of a Schedule C (Profit or Loss
from Business or Profession), and
on combinations of (a) adjusted
gross income or deficit, or the
largest of specific income or loss
items, and (b) business or farm
receipts. The State groups,
listed in table 7A, were based
on the size of the tax return
population of each State and
defined in such a way as to secure
at least a minimum number of
sample returns from each State.
The sample for the State groups
was then allocated to financial
strata to minimize the variance of
the estimates. Refer to table 7A
for strata descriptions and the
number of returns in the population
and sample, by strata and
State groups.
Method of EstImation
A separate set of rates (by
sample strata) for each of the
five groups of States was prescribed
for the selection of the
sample, the rates varying from
0.02 percent to 100 percent. The
adequacy of the sample selection
was reviewed, by sample stratum,
by applying the prescribed rates
to the number of returns reported
filed by each of the ten Internal
Revenue service centers. When the
actual number of sample returns
differed considerably from the
expected number, a followup was
conducted.
Sampling weights were obtained
by dividing the number of returns
filed per sample stratum by the
number of sample returns actually
received for the stratum. All
sampling weights were then converted
to "integer weighting factors,"
which were applied to each
sample return. For example, if a
weight of 44.24 was computed for a
stratum, 24 percent of the sample
returns in the stratum were systemati,cally
given a weighting factor
of 49, and 76 percent a weight of
44.
A comparison of the estimated
number of returns shown in the national
tables of this report with
the number of returns reported
filed, as shown in table 7A, will
disclose slight differences. These
differences occurred for the following
reasons: (1) an estimated
124,418 returns were excluded from
the.tables because they showed no
income information, and (2) returns
were classified into the proper
size classes in tabulating the
data regardless of the strata to
which they were assigned for
sampling purposes.
Sampling Variability
The coefficient of variation
is the standard deviation of an
estimate expressed as a percent of
the estimate. The standard deviation
when added to and subtracted
from the estimate provides the upper
and lower limits within which
approximately two out of three
estimates from similarly selected
samples would be expected to fall.
Coefficients of variation for
this report were computed using a
sum-of-squares formula for selected
frequency and amount estimates and
appear in tables 7.1 and 7.2 of
this section. The upper limit
coefficients of variation shown
in table 7B were computed using
211

212. Individual Ratume/1977 o Sourc" Sample, and UmMMons
S I
-IF, I
c; w
Ag
2
c6' wF a
T N
i 1E F 4 Z R a
GM H Rt It Rk gi 1 §
Ig
K111
11 ]a 19 11, J102 1119 1 5-
RJR IR JR. JR IR
ItIt lal lal
?"I
1 1 1 1
P15

a formula based on the sum-ofsquares
method. These coefficients,
applicable to frequencies
only, are meant as a general guide
for use when computed coefficients
of variation are not shown.
Whenever the coefficient of
variation of an estimate exceeded
35 percent, the estimate was considered
to be subject to high
sampling variability and, therefore,
to be used with caution. In
as much as the actual coefficients
were not computed for most of the
estimates in this report, an
arbitrary convention was used to
approximate the 35 percent-ormore
standard. When an estimate
was based on fewer than 10 sample
returns, all of them selected at
less than the 100 percent rate,
the estimate is identified by a
single asterisk(*), indicating it
is subject to high sampling variability.
While the 10-return convention
(and asterisk) is a
reasonably adequate indicator
of high sampling variability, it
Is subject to limitations. Thus,
when the asterisk was used to
identify an estJmate based on
fewer than 10 returns which were
selected at several rates, one of
Individual Returns/1977 * Sources, Sample, and Limitations 213
which was the 100 percent rate,
the conclusion that the estimate
is subject to high sampling variability
may not always seem warranted.
This limitation of the
10-return convention is evident
from a comparison of the computed
coefficients of variation of less
than 35 percent which are shown
for selected estimates in table
7.1 with the presence of asterisks
in table 1.4 for these same estimates.
On the other hand, the
results of the comparison are not
entirely inconsistent when one
considers the small sample on
which the estimates were based and
which dictates some use of caution
in using them in any case.
There Is another limitation
of the 10-return convention and
asterisk. Because the asterisk
was used only with estimates based
on fewer than 10 sample returns,
It should be apparent that there
are also other, unidentified,
estimates based on more than 10
sample returns which would have
large coefficients of variation.
A further examination of the
computed coefficients in table 7.1
bears this out, i.e., instances of
large coefficients of variation
Table 7B.-"Upper Umit" Coefficients of Variation for the Estimated Number of Returns, 1977
Esfirmted nuntm of Wuns
30 .................................................................
40 .................................................................
so ................................................................
75 ..............................................................
100 ...................................................................
200 .....................................................................
300 .....................................................................
4M .....................................................................
5M ...............................................................
600 ...............................................................
750 .................................................................
1,000 ...............................................................
z(M ...................................................................
3.ODO ..................................................................
5,000 ..................................................................
7,500 ...................................................................
10,WO ................................................... I ...............
15,000 ..................................................................
2D.000 ..................................................................
25,000 ..................................................................
M000 ..................................................................
40,000 ..................................................................
SOADO ..................................................................
75,000 ..................................................................
100,000 ..................................................................
150.000 ................................. :-- .... * ................. .
200.000 ............................................................. :.::
300,000 .................................................................
400,000 .................................................................
500,00D .................................................................
750AD .................................................................
1,000,000 ...............................................................
Z0001wo ...............................................................
3.000,000 ...............................................................
5,000.000 ...............................................................
7,5W,ODD ...............................................................
10.000,000 ..............................................................
IZOOO,ODO ..............................................................
15,OOD,000 ..............................................................
2D,000,OW ..............................................................
MOD0,0W .......................................................
30,0DO.ODD .......................................................
50.000.000 ..............................................................
65,000,000 ..............................................................
WOOD,000 ..............................................................
Less Van
$10,000
(1)
81.7
70.6
57.6
50.0
44.8
40.9
35.4
31.6
25.8
22.4
18.3
15.8
12.9
112
10.0
* No sanV&V varisMty since as mum In d* csteM am in dw ownphL
~Rslmbls upper Wd coeffidev. of varktion Covonot be owqxfiod br I soffmWiraqwKiss.
%olVpft" *m Ow esfirrated nurnber ofroturns axonded to POPMon SoM
82
7.1
5.0
4.1
32
2.6
22
2.0
1.8
1.6
1.4
1.3
1.0
0.9
0.8
$10.000
under
$15,000
(2)
M
I
61.6
63.2
51.6
44,7
36.5
31.6
28.3
25.8
22.3
2D.0
16.3
Itl
1 1.6
10.0
82
7.1
U
5.2
4.5
U
Z6
to
1.0
1.4
1 .3
12
$15,000
wow
$2D.ODD
(3)
91.4
74.6
57.8
472
40.9
33.4
26.9
25.8
23.6
20A
18.3
14.9
12.9
Adpled gross inoorne or deficit Mypessed in percenQ
10.6
9.1
7.5
U
&8
4.7
4.1
to
14
1.8
1.5
13
12
$2D.M0
under
$30.000
(4)
89.3
72.9
6"
46.1
40.0
32.6
282
25.3
23.1
20.0
17.9
14.6
12.6
10.3
6.9
7.3
U
5.6
4.6
4.0
2.8
2.3
1.8
1.5
13
12
$30,000
under
$50,OOD
(5)
91.0
81.4
70.5
49.9
40.7
31.5
25.8
22.3
182
Me
14.1
12.9
112
M 8.1
7.1
5.8
5.0
4.1
3.5
32
U
22
1.6
1 2
1.0
for estimates not identified by an
asterisk. Such large coefficients
mean that the estimates should be
used with caution notwithstanding
the absence of the asterisk.
A dash in place of a frequency
or amount indicates that:
(1) if returns were sampled at
a rate of 100 percent, no returns
had the particular characteristic;
or
(2) if returns were sampled
at a rate less than 100 percent,
either no returns in the populaticn
had the characteristic or the
characteristic was so rare that it
did not app.ear on any sample
returns.
Response and Other Nonsampling
Errors
In transcribing and tabulating
the information from the returns in
the sample, additional checks were
imposed to improve the quality of
the resulting estimates. Incorrect
or missing entries were corrected
during statistical editing to make
them consistent with other entries
on the return or accompanying schedules.
Data were-also adjusted
$50,000
under
$100,000
(6)
e)
el
e)
M5
GZ5
54 .1
48,4
44.2
395
341
24.2
19.8
15.3
12.5
10.8
8.8
7.7
6.8
&2
5.4
4.8
4.0
3.4
2.8
2.4
2.0
13
1.5
1 .2
1.1
$100,000
under
SM,0DO
M
89.3
77.4
69.2
56.5
48.9
34.6
283
24:5
21 9
20. * 0
17.9
15.5
10.9
8.9
6.9
5.7
4.9
4.0
3.5
3.1
2.6
24
2.2
1.8
1.5
1.3
1A
SMODO
under
$50D,ODO
(8)
36.6
31.7
28 ' 4
232
R.0
14.2
1 1 ' 6
100
io
8.2
7.3
6.3
4.5
3.7
2.8
23
10
1.6
1.4
1.3
1.2
1.0
0.9
$500,000
or Moro
(9)

214 Individual Returns/1977 e Sources, Sample, and Limitations
during editing in an attempt to
achieve consistent statistical
definitions.
Quality of the basic data
abstracted at the processing
centers was controlled there by
means of a continuous subsampling
verification system.* In
addition, the Statistics Division
in the National Office conducted
an independent reprocessing of a
small subsample-of the returns
statistically processed in the
field as a further check on
processing. Prior to tabulation,
numerous computer tests were
applied to each return record to
assure that proper balance and
relationships among return items
were maintained.
Finally, prior to publication,
all statistics and tables
were reviewed for accuracy and
reasonableness in light of provisions
of the tax laws, taxpayer
reporting variations and limitations,
economic conditions,
comparability with other statistical
series, and statistical
techniques used in data processing.
However, the controls maintained
over the selection of the
sample returns, the processing of
the source data, and the review of
the statistics did not completely
eliminate the possibility of error.
Also, practical operating considerations
necessitated the allowance
of reasonable tolerances in the
statistical processing of the data.
D

E Z
IRqc4-MIQ
Indlvldual Returns/1977 - Sources, Sample, and Umitations
W--w.
,d cd.6 cd cd ~d
W
-4c~j-i lacd'dd-
cd
W- N
5R-- -- 'd-6-4- --"I. vs.-i ad "d w m 4 ~5 ci
ct -R-r~ ~-~mc~ '-t(RcqcRqq Ct ~4cqc!P':Wc~ '.tcR
~2 c6
-Wm- nCtMq@ .1--t
3918tIsm MRARS SmAst g44"Ig Rgig 8 an
q-:Rcq wNtNq-t c4MM a-M
cs c;
c; 2 qc4Z;j`t
-2 :1 NQ
c
-ui-
Iq-Ln q ~
ui~
w~ ~q
-i~
-IR
-S~ i -4
1:2;j-:3q
W ui c5
:1 14 ;1
c; ggg~ggg -j Q gg
6 Wm- . . ... . CS . 'S C$
cIZIci-T Lf!~Q'Tqm-n ".t-qc7iq 'R....u
N N - - - - - m -4 N N W'! ~! 6- C; CS g 0 -6 2 cs 6
'1-'qaRcRq 'q'R"tQ~cq"t 'I'QIRW~4q n C!~4-4
-cdcsi- ~ci-- d -4 cJ W- - - - -- - --dcs.
gmggg- -qm:2:3:jcI -tLqcq-~W:~ c! 111 .
---- - - - - - ----C; c$ d 0~cs'd ci C;
CS CS C$
--t'qcILqq-.t ggg-~-g 2 M~!gmg
14 c%I W . . . . . ~.6 c; CS
:fall ~ Rg-fggg fgIC;
re
R11111 Him IOU; fillit HIM UM §01 4
2 a f
§ §Rgk§§ R§§Rkg
cs ~J~ g lj-~ . 11,
215

p
lip; smu g lam c la i,
HIM
t!~ 2x i s
I I PigH MH
it,
..... . ...... ...... ...... . ...... . ... ...... .
in L,
L~in 44 kn in
ppps-pg
--- - - - --- -
kn b b, k. b, N. in.Q kn kn L,i.6~o bD
boi.i. 5' ~ 5~ b b i. i. L~ b. ~4 bl
5.5. S.
P.
Ppi;57.:=a
C lblbm-m
L, k. L, ~4
ED mntmge. 8zz; PP9!2 pj;3 P P3 ps FS
in E ~b
L.L~bb-
N. Z. R EVkz~ 6 L. b.binbi--.
Rpp - 9~bo
bi-lbli-i:l
- - - - -
91
--k.M - -
L. C
Lw,
p
-
-;imud
k. ~4 11. ~;D h. i.i. L- bl
.
bl-~4k~t-
&8s28t;sn fg--28d5; - 6b .G C'. 8 az;2!85>~a ;g ~ rnlr.*
K. iD b. b.i. k, iD L, b, L. b,
L. C
i. ~4 i:. i. Ll;~
P
k. b. 111! Ott!" pqs pna r.
.=1 b bl ib M ~4 k. L.:.
suowmwn Pue-voidwes smnos o awswro6u lonplAipul, RE
lia
IR

a
-
19
Individual Returns/1977 e Sources, Sample, and umpstiong
cqqc~ mc!-:ut~q i~;=Co; w I q-: -R-Q
14i cq -q -R
9
c.V4 ~Vi
-qcq~~"~q
pp
IR-14 H-:= V 14"tPR
i
'A Too CD
gig M C-S
Ctq;M UNRO V== Qqc4.!..:
g g Z d~ d
z1g:322 3 q-a-a Aq--A-
j.5 .
WO'd dc$
:1
05 Q~g~cqcj
=4 9.9 .tqwm
1'
,!1114c
-7-4:42
cs
gg
Z2 w
~i
:1,4 q
.5 d W ad
:3!!".~!g- 3 CR
CS CS
C; CS
Q6
~dddd ~M
Qq --t :1,1
qw-
.,d,6 -V-4vs - d d==d ~~j V~ C4 CM:1't d~ dd V c~M9
.RV
,.t
c4c"?a -"~i q=ld": -d d lcqR
2" -..tc4c4-a
4V..~J.4
4q -6do '-:'R R 6O.-S
~"P IQ IR c! C!
-V 4V4.
. . . . . . . . . . . .
c0igg d "V -4
211 OUR
:111111C-;c*1 41136999. garalli
4%figars ro ro
1125.2mi
r0r.
r. r*
r,
r0
-q
.t~gw?o.
c!0
-=d O'd 'd
'00
ddd =qW.
217

218
Z
if
Indhddual.. Retums/1977 o Sou Sample, and Urnitations
M
§HNF.416.6
§9 HHU R
-Nadi
IR In "t '4
6Q n In It ~4 c4 q q. c4 q IR c4 IR cR
s sz9saEft &vvs,-- . ;! . . . . . . . . .
. . .
r cqrr-t c3~ Lq w~ c! Pq cp ~ cq,.t C! cR c!rrt r.: r.: -:LQQm,.q
14 '-k '-t ~R -t -7c4'q'Q'q" -4 -R
-66
-m mcq
M4 IQ qq ? -1 q .: g "t cq ulq q 6. q qq cq'q 'T R q -~q -t'Q 'Rg
N-- -w&q'-t Lqq--
qq 'nq
cq ct Lq IR 'T
~c4cncRc?cR rtc!Lq-:N:(Q -tcRc!'qqq 4n clw~R-cj Rjc4w- M~M~ cl N C~Ii IR
-:-:-q IR RIqcUIR~; :1 qq~q'.t.R IR '~ cq Ln I.: C~ -: q:3 gs djq
gg r. R;&Iq t::_ tz' R se IQ v 12
u~j f~t r~c4jc4j q En cQ; cQS r-: N N -: c4 cR N: ct cn "cRc4'qm
a
t c4,R 1 r.:,q q li~ LMWQ~ i
sorz zss?;;G ;;R t96- ;z 9 rz 49ivg ;;9 tg ci cs
. . ... .....
R
IR -R c4 1-: IQ q
R_-
c! r'-~ ~4 qIt -T IR -t q q q Lq In -q ~4 1 cQ -InH~q
A4 M=Df- , -
4S2" A
~qcRIIInq
§§R§§§
MR! :NRggg g9sh
Iiiji l HIM HHE
ud
ug
§!II i Him I M
Z' ud
'q R
144M
t t R -7
'I Lq g q ~I

a
Z
Individual Rotuma/1977 *Sources, Sample, and Limitations
1~ ui i ':'d
I&PU3--g
IRq c.! Lq In cq In '7 IQ
- ------
q-~'tqq- cl-qu~-:cq N cm f%t cq c!
c4 c4 cj i ~z .6 ~i-i 66 -- --- - --
"'R c4 -~ -.t g -=! cQ "-q'-t'tgq 'R'R -4
4 - - - --- ------
""cR~NtP ww=;;r~Lq '-tcq"-tRc4~ cR'-t:3"-tq Z c4'Q -1
cq :: IQ7cq,.3: P% c%! q 'm g cg f; Q d:tR~ olc2l*R"o~'ct I,% N c~ c~q c~ c~
- - ---- -
ci N..i ;6.ii - m cj N. . . :=R'"R q `4 6 Z
c4 Lq ~R ~d
"t c! C!
c4 Q
IQ
---
Q'T -!'-t
In -1 --dm 'Rj
- -66c; iw--
q- g''.j wg Sq
:1 w-t7 ~ cg 7-~Qcl g cq lq-=~ct~ cs
-n --t
ggSgM Ig
le Vd
--:cqc4-7- IR-"I -R c-jq -!c46w c-! - q c4 IR
cd.
--- -- - - Q. IQ IR cR I.:
.56csi~z~z
Lq ~t -T 1% 1-t . It IR q cq P.:I
c4 cq oic4qq~q ti c~ c4 I.: N: cQ q~ cq ci M at c~ c)l C~ c~ LQ -7 c!qw~
PHU HM
%ic 9
.4AS
flassr.
;;-1 4 23259 galgh;
.93919 3, ;; i19fld a
§§1§
219

220
"a
I
- t-.
Individual Returns/1977 - Sources, Sample, and Umitations
_W_ www-
RN --: il,--: g V
=zgg V -'R qm'q'~
$4--ettv-
- - - ---- "t:aX, cl 11
c-;
q
c46
g . 2 -'t -6g
.t c!q g _'q cq _:c;
6
m glee
IR -4 "t 11 -~t c4 -R cn I'% ~-d 'R'R
-t -7q LQ c4
Re&VT e t': V M; C:: 9V!!?t-VV cl"~'~~:C!q
---- - - -
~q 'n cM'R'!-:C!C! qq '-:"t cR LQ -1 'Rq IR
------ N"q~7-!q
- - - ---
'ad qq q q -f,-d C~ -1.~-
gq c!
_VVV
cd
q cQ
IR Iqq
- - - - --- - -- IQ IR R '.t q qqq
-- -- - --- - - -
QfP&q"QR" F.: cR cn c~ m In r% 4R "It q In cl 44 4zq4q"~C!q T -1
"tq-R c4 -M N 't IR cd IR 0~ IR -1 'qq..qC!q i- .4 M 'i 4 4
IM N
cn c4 cl~
-Q c4 q"~4nqcQ' =-:C~C!C! tj IR ~4 q W-m-cs- 'R q Lq
_-
Iq LR "t c! 'Tc4-R:~-R lf~ Iq -Q -t :~!4cR-Ctq __
~ J _. c4 c4
Q~c~qw:~w LQ cq cqw.4.q.. Rq Lq ~q gcq~!.2c!q -t qq -t c.1
C; *
HIM
. .
. . . . . . . .
.k .t
. . . . . . . . . . . . . .
yfiti HIM H fli g§
~ " i4ijill
M111 pH

9
fz,
Individual Returns/1977 - Sources, Sample, and Limitations
111-~-V-~N-~ --~Q 2 -4c?cqc1cQ c1cl'.tq.~cR ~q cQ -: 't
"
11-7r'l-qq 2 qr't'Q;"!c! '~%Rc4c4-
CS 'd
"Rqq'-~cqq "q'q'qc1'q ~~-7clc4qg 5 gq'qq-~.T -tcg~c4--: "-:--:clc4,-,- IR q,-t
~clcllqlt" 1q.1!cw" ;4 C? cas 1 IR .7 N
st a giz! Poe Mw4v-
~Q~- "~NcRc417 Iq -1 17 Ct N
cd 6 ig-sRn v-- - - 6
m
lqqq'-k-~ In-7q-?C?60 c4 "t C! c4
--46c;
- ---- --- - - - -Qq~4q
'i6's
I.R 'R 1. c4'q','7c!q qQ~-' --mc;'.zgDig
gsiggd6 d~iwwc;6 rz 4
R2.';RV28 P. A te 5? -- - -
'T R-t -7 ~R R c4 c! ;~ N -Q" q-711"c!60 1"-Q I N "% 1-t q .7 'It N R q q q
239r. S;e SM;12 W We t~' 219"i OP!9Gt8st I wa t2-- ;;Di!g;;
c! cR 11 q -P - - - ----- - Lq 'R CI c! ~-W-qq .7 c! C! I.: IR -: --It IR
-03 tg99;9 Cm%: "d W .6---
t': cR cq c4 ~'T q"-t q r-: Qq rtc!'q-C!q -:R~qftq ~~o~4nc!qc! w ~w- - -
IPT 11 q 11 In q ~jg g'%.Rqq-q c!-cR-.g'1 '1'q'q"gg :1 -T
-4 q LQ ~R 14 c!
'-t cl~ r't cqq (q ~q u! oil .t cq c~ cc? C~ C~ 4q cqqq ulft 4R wl 'q q C~ cq 'q Qq Nqcq't In
tt, .4 DN-7N ; " -7 c! rt -P cR 'Rc'!~gc~qq Z 'P-nq-~c4l% q -1 cq IR 0i ~Iim.~6Qq ~W-
'UNs gg~---RA cR- --.
AD;2R:wRc% 2 n R ~- --d- &: 9 sj "i
'R'R c4g q q -win-7qq :3 cql~qo~cq c!q11: Lq -111 ~ -1 R -: q ~j I
dm -- - c2 t~' 'd- - - - - i66
M tff
:f!N66H 191 V g9112 ia g
JM;- '" Itlilt IOU
'
RUM H
1
j
min 1011
HHH H - g
kjR,
21
11§§§§ 1
HIM- agglat 6111
221

Individual Returns/1917 e S6urces, SaMPIG, and Urnitatlons
cs c3i cd
IR 1-t IQ
c2,
`R
is A
IQ N N c4 CR C~ q r-:q '-t 1111 N a? qq cq c! q c! r~:
-n --~-R~4cq
-:2n-qq c4. IR c4 -4
n ~!q ul 1-z cmd mq Z m"It ~3z6~ q. A "q cQ Iq 't C~ 1-: c! 11 'T q I'% -R f4
11 Q~q -:Cqqcq1!~t qQ":qc!cQ; 2 -J-R'R"~q N R -6
A 9;~ t::!2
-"-qnq-
~26 cd oi ~J,4~ c; 2 q cR "t c4'i IR q -: cRIt
... cd
c4 In cR q q -2
----- -
-R IP I'% 'R
c4 It 1~ q ~Vq' IQ P c! 'T c4 In '-t ~! v~ cq :~G~ q c4 P~ c4 q
-1 IR N14 1~ IR 2 -,Q cR R IQ OR 1-t ~q -R
129 W;mm ;;~z4s .8
IR
1229
-ww m -d: cR AR r~ q r-t N q Q3 R c4 IT cR c4 w '-t C! -it q cQ

a
F
E
EZ
cq c~ .7
te gi 3;~ S?
Individual Returna/1977 * Sou. , Sample, and Limitations
";Lq .31 q I -Rclw-4 2 q N'-t --~ ~
N q 41 r q m eq N cl c~ 6. qc! cR-~ q Lq R'.t q '-d q 'g'R q cj
1-. xI a.- . . 16 . . r;; . S?0E3xz . . . . . ---e-
q -Tq .7 -1 q -7 6. g cq ~: [-@I R cig
9
cQ'q q
iMR;;-
cq -1 cq g g - --- - -
q -q r-t c'4'qqrm-q wl-t-:c!~. qq Ic4- 1 ~'q cq q q g -:,n -Trqg Rq q c4 -R
c~ LQ r-: c4-t IR c~ R 11 14 c! q q -1 C~ I In IR 14 -1 q 11 c~ IQ
a- ag - P,6&1 law
c~ F'1".t cq c4
2a-4 ig le R
N c! cq 4n tq c!~=Qq ~@cRmc4" N~Q-
21019
g -n q --t LQ r-% -T cR r clq R -.R"-qg- -R '-t Q c4 -q cqr -R~,cRQq
c;
t N.T
R R
q c! q R -1 c4
-T cq ~q
4R "c4r~cR"m c4 -~ ~R'R --k
c4.lq;.:Rq
2g--~ -i'i66 !~04-~:RR
9
Hun
;fNiggg 1911;q
IRQ-Iqqq
6 o;. ..
cq cc! o~ ~t cc!
11"%cqc-iQl~ 'TqLq'q'4Q -,c4qc4c~c~ q u! N
:;fRof, ;;"
-
Z
--iaIIaa
a9"
Will flifit I it
IR ,4,:!- qq q c! cR
flagal Z'3r; '6;;*6;9!2 HER! ]VIN9915; Rall
M W
MER&
I t'
223

I
N ::.; 9.EP.F.; Z;P,-Z- j5psnpp itp.9- :91:.- -
b.1 kw - m~m ~~ ~.-b-kD ~-imbblbl iab-ld4t! ~;
G- -~0.66L - ppr'N5. r-r-l-gr- r-Pr-p- p
-Q- ~----- ----- -- -i. -- .
=8pn- r-,ppr- . : w F."PF. p
L36b"L"~. "ww. ~w~Q~ Z.mw- ' -- ~ ~Qm -
I
3 If
9
'ra
2 NIP
;~ 12
M
le
m
SL
I?
SL 0 06
7
CL
c
M
z
r- 4
rr
0
m
3.,p
cr
CL 06

Section 8 1977 Forms and
Instructions
Contents
Form 1040 and instructions, 226
Form 1040A and instructions, 251
Schedules A&B, Itemized Deductions
and Interest aind Dividend Income,
266
Schedule D, Capital Gains and
Losses, 267
Schedule E, Supplemental Income
Schedule, 268
Schedule SE, Computation of Social
Security Self-Employment Tax, 268
Schedule TC, Tax Computation
Schedule, 269
Form 2440, Disability Income
Exclusion (Sick Pay), 270
Form 2441, Credit for Child and
Dependent Care Expenses, 271
Form 2555, Exemption of Income
Earned Abroad, 272
Form 4625, Computation of Minimum
Tax, 274
Form 4726,-Maximu Tax on Personal
Service Income, 275
Form 4798, Carryover of Pre-1970
Capital Losses, 276
Form 4952, Investment Interest
Expense Deduction, 277
225

S. Individual Income Tax Re;um 1@77
1040
Fee the rest Janshir 1-0scence, 31. 1977, 1 Inner tenbl, m, Winning 1977 Inches
-1 .... I. I lind 0, h c. Im, Ta end inituls ct octe) ust nerne Todur axu~uu security numatur
It M
I; Pment hone, addres, (N-1,11 Ind ined, Inct,di,g spadherat mxcthe~ he mrit met
M6
CRY, them a Pst office, Stet, I'd ZIP cod,
Presidential,
Election
Ca"'Paign
Do you want $1 to go to this fund? . . . . . . . . . . . . . _lLesl
-1
lotice, m spou"Is settle,
security M
MGM
Yours III,
spouse's No
J!L.~ Net.' c Checking "Yes" will
not in tease your tax or re-
Fund If joint return. does your spouse want $1 to go this fund! No duce your refund.
1 Single
heck Only 2
ZChe
k
Me led filing joint return (even If only one had Income)
One1 Box 0 'y
3
4
5
."ied filing separately. If spouse Is also.filing, give spouse's social security number in the space above
and enter full name hem Is-..... . ...................................................................
Unmarried Head of Household. Enter qualiyng name 11 ............. . ............1..................... See page 7 of Instructions,
Qualifying widow(er) with dependent child (Year spouse died flo, 19 See page 7 of- Instructions.
[71
Always check 6a Yourself 0 65 or over
I bel xm number of __1
the "Yourself"
box. Check
and b
other boxes If It 0 Spouse 65 or over :~~ -d nd
they apply. to First names of your dependent children who lived with you Jo ................ :....................... lines, nomber of
childrimuldell P. F
III Other dependents:
!s' and Widentoo %-=d-dm=
vappert? Intar number F]
(1) Retail'
de-1
7 Total number of exemptions claimed . . . . . . . ... . . . .. . . . . . . . .
.
. . . ..
Add -.be.
Ine ..d in boxes
athree
I of ~ deals
X
8 Wage36 salaries~ lips, and oth.r employee
Audit
compensation. ( F- W _2' " o"""'
9 Interest Income. (if over $40D, attach Sched.1aable' B.) -. . she . . 5 . .11777) . . . . . . . . . . . . . . . . . . . . . . 9
108 Dividends (" '"Ithied."I.- 8'"'s) .............. 1: 10b less siclusion ................. Bilm 10. 10c
(Se~ pages 9 and 17 of Instructions)
(if you have no other income, skip lines 11 through 20 an d go to line 21.)
11 State and kxa[ Income tax refunds (does not apply If refund Is for year you took standard deduction) . . . 11
22 ;; Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Business income or (loss) (attach Schedule Q ... . . . . . . . . . . . . . . . . . . . . . _i3
24 Capital gain or (loss) (attach Schedule D) . . . . . . . . . . . . . . .. . . . . . . . . . . . 74
15 50% of capital gain distributions riot reported on Schedule D . . . . . . . . . . . . . . . . . IF5- 16 Net gain or (loss) from Supplemental Schedule of Gains and Losses (attach Form 4797) . i6 -
17 Fully taxable pensions and annuities not reported on Schedule E . . . . . . . . . . . . . . . 5
Is Penslons, annuities, rents, royalties, partnerships, estates or trusts, etc. (attach Schedule E) . is
29 Farm income or (loss) (attach Schedule F) . . . . . . . . . . . . . . . . . . . . . . . . . . 29
20 Other (state natur and source-see page 9 of Instructions) Jo, ---------- --------------------------------- 20
22 Total Income. Add line 8, 9, and file through 20 . . . . . . . . . . . . . . . . . . . . . 0, 21
Im. RMINNIN qq A (if none, skip lines 22 through 27 and enter zero on line 28.)
0
x
~2
23
24
Moving expense (attach Form 3903) . . . . . . . . . . . . .
Employee business expenses (attach Form 2106) . . . . . . .
Payments to an Individual retirement arrangement (from attached
Form 5329, Part 111) . . . . ... . . . . . . . . . . .
22
23
24
25
26
Payments to a Keogh (H.R. 10) retirement plan . . . . . . . 25
Forfeited Interest penalty for premature withdrawal . . . . . 26
Id
lion. . . . . . . . . . . 27
= Y p age ' o f 'n
N
jL
r6 29
....
:dj, . c1d IIrte. = 27 . . . . . . . . . . . . . . . . . . . . . . . 28
.
Subtract line 28 from line 21 . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . .
29
30
32
Disability Income, excluslon (sick pay) (attach Form 2440) . . . . . . . . . . . . . . . . . .
Adjusted gross Income. Subtract line 30 from line 29. Enter herikand on line 32. If you want
IRS to figure your tax for you. see page 4 of the Instructions . . . . . . . . DO- 31
Fc- 1040 (1977)
32 Amount from line 31 . . . . . . . . . . . . . . . ... . . . . .
33 If you iterniie deductions, enter excess itemized deductions fro, Schedule & line 41
NOT itemize deductions. enter zem . . . . . . . . . . . . . . . . . . . . . . . . . .
It you have unearned Income and can be claimed as a dependent on your parents
return, check here fl~ [] and see page 11 of the Instructions. Also see page 11 of
the Instru tions if:
0 You are married filing a separate return and your spouse itemizes deductions,
: You file Form a 4563,
You are dual-status ORalien.
R
34 Tax Table Income. Subtract line 33 from line 32 . . . . . . . . . . . . . . . . . . . . . . . .
Note: See Instructions for line 35 on page 11. Then find TC exemption your (Formtax It4o) on than the tothose figure amount on line 34
in ($40,000 the Tax Tables. Enter the tax on line 35. However, it line 34 is mom than $20,000
if you 'checked box 2 or 5) or you have more
covered in the
Tax Tables for your filing status, use Part I of Schedule
yourtax.You
must .1. us. Schedule TC it you file Schedule G (Form 1040), Income Averaging.
35 Tax. Check If from F] Tax Tables or F] Schedule TC . . . . . . . . . .
36 Additional taxes. (See page 12 of Instructions.) Check if from E] Form 4970, . 0 . Form . . . 4972. . . .
0 Form 5544, [] Form 5405, or C] Section 72(m)(5) penalty tax . . . . . . . . . 9 o e w
37 Total. Add lines 35 and 36 . . . _. __ . . . . . . . . . . Ill.
38 Credit for contributions to candidates for public office . . . . . . 38
39 Credit for the elderly (attach Schedules R&RP) . . . . . . . . .
40 Credit for child and dependent cam expenses (attach Form 2441) .
41 Investment credit (attach Form 3468) . . . . . . . . . . . . . . .
42 Foreign t: credit (attach Form 1116) . . . . . . . . . . . . . .
43 Work Incentive (WIN) Credit (attach Form 4874) . . . . . . . . .
44 New jobs credit (attach Form 5884) . . . . . . . . . . . . . . . .
45 Sea page 12 of Instructions . . . . . . . . . . . . . . . . . . . .
40
41
42
-M-
44
45
46 Total credits. Add lines 38 through 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Balance. Subtract line 46 from line 37 and enter difference (but not Idea than Zeri . . . . No
48 Self-employment tax (attach Schedule SE) . . . . . . . . . . . . . . . . . . . . . . . . . . .
49 Minimum tax. Check here file, [] and attach Form 4625 . . . . . . . . . . . . . . . . . . . . .
50 Tax from recomputing prior-year Investment credit (attach Form 4255) . . . . . . . . . . . .
51 Social security tax an tip Income not reported to employer (attach Form 4137) . . . . . . . .
52 Uncollected employee social security tax an tips (from Form W-2) . . . . . . . . . . . . . .
53 Tax on an Individual retirement arrangement (attach Form 5329) . . . . . . . . . . . . . . .
54 Total tax. Add lines 47 through 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ph,
55 Total Federal income tax withheld (attach Forms W-2, W-2G, and
W-2P to front) . . . . . . . . . . . . . . . . . . . . . . . . . . .
56 1977 estimated tax payments (include amount allowed as credit
from 1976 return) . .
57 Earned Income credit. If . . line . . 31 . . Is. under . . . . $8,000, . . . . see . . . page . . . 2. of .
Instructions. If eligible, enter child's name I ...............................
513 Amou nt paid with Form 4868 . . . . .
59 Excess FICA and RRTA tax withheld (two * ;more '--**-
employers) . . .
60 Credit for Federal tax on special fuels, etc. (attach Fit 1
62 Credit from a Regulated Investment Company (attach Form 24319) v 6 9
file See page 13 of Instructions . . . . . . . . . . . . . . . . . . . I Isla
62 Total. Add lines 55 through 61a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Is.
63 If line 62 is larger than line 64, enter amount OVERPAID . . . . . . . . . . . . . . . . . . Is-
64 Amount of line 63 to b a REFUNDED TO YOU .................
65 Amount of line 63 to be*credited an 1978 estimated tax . . . . 1,- 1 65 1
66 If line 54 is larger than line 62, enter BALANCE DUE. Attach check or money order
payable to "Internal Revenue SemIce." Write social security, number an check or money
for
order full. amount
. . Is- 66
(Check file El It ;om 2210 (2210F) Is attached. See page 14 of Instructions.) -
Unchir penalties of perjury, I declare that I hue examined this return, Int,luding itexxim;
of my knowledge and belief, it 1. Me, correct, ..d complete. Declaration of preparer (other then taxpai Is based on all Infonraftlonbest at
which computer has any knowledge~
Your signal,ure
-9
56
57
58
59
_12
33
INNER',
Page 2
34
0/ ME 02
Mom
Ville'll
3,
46
47
49
50
_R
52
53
)Ifthd prudames signature and ider,tifying number (see Inst-tims)
P.1d phnience. M- (ur mapecone'. .he, eddiess, end Iductiorn cheido)
flu~aiu-. I. .,.T-
54
I
CL
CL
C
-4a
-n
!R
3
CL
ch
0
:3
(11

1@77 instructions
for Form 1040
Ospillftma IlIftemall
won RVMMA
2sway serIfIce
and for Schedulea A, B, C, D, E, F, R, RP, and SE
(Tax Tables-pages 31-42)
Watch for
Tax Law
Changes
From the
Commissioner
At the time Form 1040 and these instructions were printed, Congress
was considering legislation that would allow credits for energy saving
expenses for your personal residence. We have set aside lines 45 and
61a on Form 1040 for these credits. If this legislation is passed, we will
do our best to tell you about it in radio, television and newspaper
announcements. Please watch for this information which will also tell
you about the energy credit form and instructions.
These instructions contain information needed to complete Form 1040
and Schedules A, B, C, D, E, F, R, RP, and SE. Please check to see if
you can file Form 1040A before you begin to prepare your return. Since
Form 1040A is much easier to complete this year, you should
file it if you can.
This year Form 1040 has been redesigned to allow you to make all your*
calculations in a step-by-step manner.
Please note the Presidential Election Campaign Fund check-off near
the top of the Form. Without increasing your tax or reducing your refund,
you can have $1 ($1 each for husband and wife on a joint return) go to
a fund to pay expenses for the 1980 Presidential Election.
These instructions contain new tax tables and tax rate schedules.. The
tables and rate schedules do not tax the first:
0 $3,200 of income, if you are married filing a joint return or a qualifying
widow(er),
0 $~,200 of income, if you are single or unmarried head of household, or
0 $1,600 of income, if you are married filing separately.
These amounts are called "zero bracket amounts" and replace the
standard deduction.
We believe the simpler form and instructions will'make it easier for you to
prepare your own return. If you need help, please call us at the number
listed for your area on page 46 or*visitan IRS office.
If-you decide to have someone else prepare your return, select a qualified
person. If you use a paid preparer, the law requires the preparer to sign
the return, enter his or her identifying number, and give you a copy.
Ask your preparer to consider whether you can file Form 1040A instead
of Form 1040.
Please cheek your return to make sure it is.correct and then file it early.
Thank you for your cooperation.
Commissioner of Internal Revenue
Earned Income Credit For this purpose, earned Income ITHISMI wages and salaries
(after the disability Income exclusion, It applicable), tips.
Line 57-You may be entitled to a special payment or other employee compensation, and your not earnings from
credit of up- to $400 that may come as a refund check or be self-employment (generally amount shown an Schedule SE
applied against any tam you owe If you reported earned In. (Form 1040), line 13). Earned Income does not Include social
come and can answer "Yes" to questions A, B, and C below. security benefits, welfare benefits, etc.
A Is your adjusted gross Income, Form 1040, line 31, less than $8,000? . . . . . . . . . . . . . . . .
0 Is-your earned income less than $8,000? . . . . . . . ... . . . . . . . .
C Did you pay mom than half the cost of keeping up a home In the U.S. In which you lived and which. fl~r tl~. willm
(except for to porary at absences a :s th'a home lid who was under 19 years
0:= a's
e 0 1 as".
of age or a fulml-tilme uderit,OR=d hll~ 'c) . d. Of ) your -1 2 8)? .
If you answered "Yes" to ALL the questions above. you can qualify for the credit If YOU DO NOT-
fis Check Box 3 on Form 2040, Married Filing Separately, or
File Form 2555, Exemption of Income Earned Abroad, or
File Form 4563, Exclusion of Income from Sources in U.S. Possessions.
If you qualify, use the Earned Income Credit Worksheet below to figure your credit.
Eamed Income Cmdit Worksheet
(Do Not File This Worksheet--Keep It for iour"Records)
I Amount of wagea. salaries, tIps6 etc- fmm Form 1040, line 8. Be sure to attach Copy B of Form(s) W-2
to your return . . . . . . . . . . . . . . . . . . . . . . . . . . . .
caution; If you m an election not to claim the disability Income
exclusion and at the end of
you were under age 65, include on line 1 that portion of your ff~:blfityutd::~
(attributable=t1afdoritVmy hW,,Intmu It
Schedule Z I lin r F=CJ 0 y milromend age) tha
2 Disability Income exclusion (sick pay) from Form 1040, line 30 . . . . . . . . . . . . .
3 Subb line 2 from line 1 .. . . . . . . . .
3
4 Not earnings from self-employment from Schedule SE (Form 1040), line 13. (Reduce for any amount
also Included In line I above and for arry amounts that are not Includeli In Income, such as the rental
value of P~rscmaoa or rental allowance furnished a minister.) . . ... . . . . . . .
3 Earned Income. 00 lines 3'and 4, However, if line 4 is a loss, subb line 4 from line 3--4f Ian than
zero, order zero and do nut complete the rest of this workshed because you do not have an owned
Income crediC) . . . . . . . . . . . . . . . . . . . . . . . . . .. . 5
6 Adjusted gross Income from Form 1040. line 32 . . . . . . . . . . . . . . . . .
7 Amount train line 5 or line 6, whichever Is larger ..... . . . . . . . . . . . . . ..
8 , Enter 10% of line 5 but do nut enter more than $400 . . . . . . . . . . . . . . .
If line 7 is $4,0DO or less, do not complete the rest of this workshost but enter the amount from it.. a
on Form 1040, lfnl~ 517. Also write the flat name of your child who qualifies you for the credit in the
space provided an 57(see Note below).
I
9 Amount from line 7 . . . . . . . . . . . ... . . . .
10 LOSS . . . ... . . . . ... . . . . ; . . .
..
. .
ilt Subtract line 10 from line 9 . . . . . . . ... . . . .
12 Enter 10% of line 11 . . . . . . .. . . . . . . . . . . . . .. . . . . . . 12
13 Earned locome credit. (Subtract line 12 from line 8.) Enter here and on Form 2040, line. 57, Also wFft
the fird name of your child who qualifies you for the credit In the space provided on [I no 57 (a" the
Note below) . . . . . . . . . . . . . . . . . . .
9
10
11
Yes No
Notin If you have more than one child who qualifies you for the credit, you need only enter the first name of one of the children.
Page 21
R

.
Highlijhts
for 1977
these amountsjare also built Intothe
tax tables for you. Please see pages 6
creased.
3903.
See ~ Instructions for Form
Plem note then Important reminders and
changes made this year..
Who Must File.-The income level
at which an income tax retum must
tm filed has been, increased.. If your
income is less than $6,200, be sure. to see page 4.
If you want the IRS to figure your
tax for you, please'see page 4.
Standard Deduction (Zero Bracket
and 11.
-The General Tax Credit has been
revis~d to take into consideration the
exemptions for age and blindness.
Married taxpayers filing separate returns
will now be limited to a credit
based on $35 per exemption. If you
find yourto in thetaxtables, youwill
not need to compute this credit since
-
'Deduc(ilorts for Attending Foreign
Conventions-Certain new restric.
tions apply to expenses that can be
deducted for attending foreign con'
ventions. If you are ~n employee, see
page 10. If you bra a self-employed
person, see Instructionsfor Schedule
'C. .
You may get additional forms, a
i is already Amount).-The former standard defigured
-for y=
New Jobs Credit.-A new credit is
copy of Publication 17, Your Federal
Income Tax, and other publications
by using the order blank on the next
duction has been replaced bK a flat allowed Tur.business employers who to the last page.
amount the law calls ."zero bracket
amount." This amount depends on
y
hire additional employees. Please see
Form 5884 and page 12 of the in-
I our filing s I tatus, 1t is no longer a structions.
separate deduction as such; instead
the equivalent amount is built into the
new simplified tax tables and tax rate
schedules. Since this annount is built
Into the tax tables and tax rate sched.
ules, taxpayers wholtemize deductions
will need to make an adjust-
ment. However, iternizers will not
experience any change in their tax
4iability and the tax computation will
be simplified for many iternizers,
7
Disability Income Exclusion (Sick
Pay)-The new rules for the dis-
ability income exclusion that origi-
nally were to go into effect in 1976
were postponed for one year and are
now effective for 1977. Under these
rules y6u may be able to exclude up
m.1,00 a week of your pension In'
cc but only if, you are under 65
and totally and permanently diabled.
Please see page 11.
Tax Tables-Because of. changes
in the'law, vie have been able to
develop new simplified tax tables to
make it easier for'you to find your
tax if your income is under certain
Alimony Paid-Payments for all-
monyare now adjustments to income.
You no longer have to itemize deduc.
tions to claim a levels.'Now, even if you itemize de.
deduction for alimony
you paid.
I
ductions, you may be able to use the Moving Expense Rules
Have Been
tax tables to find Your tax easily. In Uberalizled-The mileage'test has
addition, you no longer need to de- been decreased from 50-miles to 35
duct $750 for each exemption or fig. miles, while the dollar limits orl
ure your general tax credit, because cluctible amounts have been, in.
Privacy Act. Notice -
The, Privacy Act of li74 say. that each
Federal agency that asks you for Informstion
must tell you the followingr
1. Its legal right to - ask for the informstioh
and whether the law says you
..at give It.
2. What purpose the agency has In aik-
Ing for it, and the use to which it will
be put.
3. What could happen if you do not give
it.
For the Internal Revenue Service, the
law covers the following:
2. Tax return!' and any papers you file
with them.
2. Arry questions we need to ask you
So V.! can-
(a) complete, correct, or process
your returns,
(b) figure your tax, and .
(c) collect tax, Interest, or penalties.
Cup legal right to ask for Information
Internal Revenue Code sections 6001 and is
6011 and their regulations. They
taxfile
a return or statementsay withthat us
Yooruanyust you are liable for. Code section
6109 must and its =tions ~tate that yo
she. a security number on
what you file. This Is so we know who you
am, and can process your return and
papers.
You must fill in all parts of the tax form
that apply to you. But you do not have t . c,
check the boxes for the Presidential Elec.
tion Campaign Fund. You can skip that if
you wish. .
I We ask for tax return information to
carry out the Internal Revenue laws of the
United States. We need_it to figure and collect
the right amount of tax.
We also use the Information for other
masons. We are required by law to give It
to the Department of Justice if they need
Foreign Barik, Securities and
Other Financial Accounts-if you
had any interest in or signature or
other authority over a bank, securities,
or other financial account
in a foreign counitry (except in a
U.S. military banking facility operated
by a U.S. financial Institution),
you must file Treasury
Department Form 90-22.1, Report
of Foreign Bank. Securities, and
Other Financial Accounts., .
. This form, which is due before
July 1, 1978, should be filed with
the U.S. Treasury Department at
P.O. Box 28309, Central Station,
Washington, D.C. 20005.
.. Form 90-22.1, which,repilces
Internal .. Revenue Service Form ,
4683, U.S. Information Return on
Foreign Bank; ~ Securities and
Other Financial Accounts, and Foreign
Trusts, may.be obtained from
Internal Revenue Service offices or
by writing to the above address..
it for a lawsuit. We may give It to other
Federal agencies as provided by law. We
may also give it to States, the District of
Columbia, and U.S. commonwealths or
Peas ssions to carry out their tax laws.
And give it to foreign governments
because of tax treaties they have with the
U S
, if, you do not file a return or give us the
Information we ask for, you may be
charged a'pensity. And you may not be
allowed the exemptions, exclusions, cred.
its, deductions, or adjustments shown on
your tax return. This could make your tax
higher. You could lose Social Security cred.
its or your refund could be lost or delayed.
You may have to pay interest an the tax
you o".
Please keep this notice with your records.
!t may help you If we ask you for other
information.
If you have questions about the miss for
filing and giving information, please call or
visit any Internal Revenue Service office.
Page 3
Form . 1040 pellieral' InstriIictions
Who Must File
Whether or not y6u must file a return
depends primarily an the amount of your
Income and your filing status. (Please see
page 8 for examples of Income.)
~ Then miss are for all U.S. citizens and
resident aliens, Including those under 21
.years of ago. These miss also apply to
these nonresident allend and . resident
aliens who are married to citizens or resi.
dents of the U.S. at the and of 1977 and
who elect to file a joint return as discussed
on page 6, under Your FITIN Status.
. And your
File a return If lim am: laxame Is
st kash
0 Single (legally separated,
divorced, or married living
apart from your spouse for the
entire year
child and.
with dependent
-~ou are under 65 . . . $2,950
-You are 65 or older . 3,700
A person who can
0Claimed, as a dependent
be;
on
Cxabparent's return,.and have
Is dividends, Interest, or
other unearned Income of
$750 or more . . . . . .
0 A qualifying widow(er) with
750
ciptenderat -you chi d and:
_You re under 65 . .
are 65 or older
. 3.950
4.700
0 Married filing jointly, livin
with your spouse at the end oil
1977 (or at date of death of
spne), So and:
h of you are under 65.
--One of you Is 65 or older .
. -Both ~of you are 65 or
4,700
5,450
older. . . 6,2DO
*Married filing
or mauled but
separately
not living
,with ,977your~ spouseat the end of
a . . . . . . . 750
0income A person entitled to exclude
from sources within
U.S. posse!sions . . . . 750
*Self-employed and your net earnings
from self-employment were at least $400.
ji~ Even If you are not requ ired to file a
return, you should file to get a refund if
(1) income tax was witnhe d or (2) you
are eligible for the earned in' a credit
If you am filinp only to com get a m-
fund, please see ( mn 1040A instructions
to determine whether you can file Form
1040A.
Where to Get Forms.-In general, we
mail forms and schedules directly to you
based on what you filed last year. Many
people will need only the forms we sent
them. The order blank on the next to last
page will help you get Tany of the foms,
schedules, and pubfkat ons referred to I
these instructions. Many banks and post
.Offices have the Same material. However,
If you do not find the material you need
there, please fill out the order blank and
we will send the material to you.
Dual-Status Tax Year.-You have a due].
status tax year if you were both a nonresident
alien and a resident alien (or U.S.
citizen) during the tax year. If you had a
dual-status tax year for 1977 and you
were either (1) unmarried at the end of
1977, or (2) married to a resident or citizen
of the U.S. at the end of 1977 and do not
Page 4
elect to file a joint return as discussed
under You F % Status, c, Page 6, either
of the rogwin. pplies to ;Qu:
(1) If you were a resident of the U.S. at
the end of the Sir. file your.retum on
Form 1040 and cisafly mark at the top can.
ter of the return "Dual-Status Return." Attach
a separate'schedule (Form 104ONR
clearly marked "Statement" may be used)
to your return to show the Income tax
computation for that part of the tax year
during which you were a nonresident alien;
(2) If you were not a, U.S. resident or
citizen on the last day of the year, file your
return on Farm 104ONR and clearly mark
at the top center of the return "Dual-Status
Return." Attach a separate schedule (Form
1040 clearly marked "Staternamr may be
used) to show the Income tax computation
Death of TaxPayear-4f a person died
In 1977, or In 1978 before filing a return -
for 1977, the survIvIng spouse or personal
representative of the estate'rinust file a
return for the person who died.
For these Instructions, the personal representative
is the executor. executrix. ad.
ministrator or administratlix of the estate'
of the Person who died who Is qualified
and acting within the U;ited States. H.
ever, if none of these Is appointed, the
personal representative Is the person In
actual or constructive Possession of any
property of the person who died.,
The personal representative can fil a
joint return for the person who died It the
surviving spouse agrees and did not remarry
during the taxable year. If a personal
representative has not been appointed. the
surviAng spouse can still file a joint re.
turn. if he or sheThe did not 977mma% in= durin
the taxable year.
of th!
person~who died and the Income of the
surviving spouse for the entire year must
be Included In a joint return.
It you are filing a joint return, write In
the signature area "I'lling-as surviving
spouse." Show the date of death in the
name and address space.
For mom Information, you should get
Publication 559, Federal Tax Guide for
Survivors, Executors, and Administrators.
Rounding Off to Whole Dollars.-You
may round off cents to the nearest whole
dollar on your return and schedules, provided
you do so for all entries on your
return unless instructions for a particular
form or fine specify otherwise. You can
drop . amounts under 50 cents--mincrease
mounts from 50 to 99 cents to the next
dollar. For example: $1.39 becomes $1 and
$2.69 becomes $3.
Recmdkeeping.-You must keep your
records as long as their contents may be
needed In the administration of artr
Internal Revenue law. Records that
port an ftenn of Income. deduction, Pro;:fit
appearing on your return should be kept
until the statute of limitations expires for
that return. Usually this Is 3 years from
the date the return was due or filed, or 2
yeam from the date the tax was paid,
whichever occurs later. Some records
must be kept ludefinitely. Records of trans.
actions relating to the basis of
(including your personal residence~792d
be kept as long as they are needed In
determining the basis of the original or
You should also
prop YoUNled tax returns as
r records.. Please get Pub.
Recondkeeping Requirements
and A Guide ' to Tax Publications. for fur,
ther detalls.
for that part of the year during which you
were a U:S. resident or citizen. .
. IRS will figure taxless It )r 3; 0 Income
You MUST Itemize your deductions on line 31 Is $20,Mor .000 or
and use V,)ux MAY NOT use the Tax Tables or less If you am married filing a joint return
Rate Schedule Z for unmarried or a qualifying widow(or)). Ali of your In.
head of household.
come must be from "gas, salaries, UPS,
dividends, Anterest,
For more detailed Infor;; ted 3tI rbaor g6n S.. In, be ther I d]
pensions and annu.
Ries. You cannot Itemize
additional restrictions
udg
deductions or use
Schedule G, Income Averaging. or Form
status tax rs, It Is
2555, Exemption of Income Earned Abroad.
Publl mcin 519, 'Umn-I
rlis for cal itins.
All you do Is:
1. Fill In.your return through
U.S. Citizens UvIng Abroad-40nersIfy,
line 31. So
sum to complete all the Information In the
foreign source Income must be reported
on your return. See What Income to Re. name and address area and check the ap.
port on Page. 8 and get Publication 54, propriate Yes or No box(esl for the Presi.
Tax Guide for U.S. dential Election Campsign Fund question.
Citizens Ab?W.
2 Fill In lines 38 through 45 and. 48
through 53 It they apply. Also fill In 55 and
56, and 59 through 610, as necessary. Be
sure to attach any applicable forms and
schedules.
3. On a joint return,
Shaw r and
your spouse an 1 Income 7 andser ar mle, IR~Uln
the
space betwee Ines
can figure
your tax In the way that will give you
the smallest tax.
4. Sign and date your return. Both you
and your spouse must sign a joint return,
even if only one had Income.
5. File on or before April 17, 1978.
We wit then figure your tax and send
you a refund check if you paid too much
or bill you If you did not pay enough.
Note: If you are eligible teamed
Income credit (see page 2), we will
figure the credit for you It you write EIC
on line 57. Also write the first name of your
child who qualifies you for the credit In the
space provided on line 57. If you,have a
credit for the elderly, we will figure that
also. Just attach Schedules R & RP attar
rou have checked the applicable box for
ng status and age and filled In fine 2
of Schedule R, or lines J, Z and 5 of SM.
ule RP, whichever schedule Is applicable.
Then write CFE on fine 39 of Form 1040.
When to File
You should file as soon as you can after
lenuary at. 1, but not later than April 17,
filing ma~ subject you to
penalties and interest. so Instructions for
Penalties and Interest an page 13.
Amended Return
Use Form 104" to correct any error In
a previously filed income tax return.
is
40

I
Individual Returns/11977 * Forms and Instructions
92. m i Ks
T,:P '. t 1.
ki
1 - a I
t
I A
at H -1
'X. s, L. I .5~, Vs. Q -P
~
1 af -i j2
V"--Ubla EE~i
-S a I H ;-'a
S
gs
M'p.; X
at
.
13" C -9 f 9:9!it Hillh.btlg al"19-9111C V's V.
a. ~.o
-M. JE-
.-.E ke -
I f f-=a"jE_' 1 N- E
IA E. I lee. P~S g. It It .5 k egg.
g.- 1,g.-z 2- m';. 2jE.!0-51S.e
gp-., 15.09
J,
C- 1Zr,,-, E
Z H E lc 84
Ell
~:ti
i a
".L, Li e
-'Sit .
E
t
C
J'5,E, Z~- "f'IV
V
E Eml~ -Z.2 ~E
§3 IE 0 a. 5 f.
E E~.= i E 15 '91 E
49-2- 168~1.25E& .
4 S E 2
L &E
11:1 1-IggZR%~z-gri -.ipp ginsol I E2 V Us e~ja Ez -E E A -S j3 C.
-.,:g
-0
i a l
C
YE I 8 12
*E . .
;5 wm 'S
'L.
95
'_.1
91
-.5
E
35*
MSEE-2' E
E 2 - SR Eg~ lbat
H
t;
-a.
_0P- ~8gS IS
U.
t E0. 9F 1 is
C.
WiNS ..~
S.0.~Wsf. fal-3,N-3- -M
Hill'. X-E
0 tlw~ EV-.E
-CAW.- 1118 JE f..
k s -me A
tB 3.! !Z
E_
So
12
ISE
.-823-- A03 X . -0 et
-912. -, Z-Z , E
S-a
2 , ..Sj!5r. E
a , , U_ 11
a
E
v2:5.02-N 21 ; i
J'E .6 ?6 E V
o
75
A. t:
R1_5 ci 115 -8
E
A c
E. A': U~
;E
z Re z ".1-5 ;A il E_
>91
USE af~ St S
SK'o's
~4
E
8H
.9 1 8
-A tg
9-V 'E S E V:
Ea-.c
wig A 2. E V 1.5 .5 S 9, -.5 m
S
I - '. &_t ~- , . A 1. z :t
E M ?4 - is . .
2 -S g, 7 E 9
;6~ K j
1 .2 122 -Z E T-
CL 2 -"S~ > 2 , So ka 4 .5 ->. 2
~'E EFa E 3:
2.5 S - ~ z S.
8-63: E-R o, o
1.2 e N
E
al 515 a at
Is---
15N a
.9-;;
E
S
E'
A.
E~. ~:. !~
. ?,Z* 432: ~ 2
, Z.
Sos
~? -P,.v.-r.
ge .4 -E,
C
U. > E_ -E,
155
EJ-2
'E 2
15V E_ _-p IE .
ar
. ~_ oz
'Ef . S.r:
-S'P.2
a 52
o ol,
3 .2 H 1-34
tie"
V.0
-E
SA
-2! '-IL '§'E 9 . ~
EgIS 19- g 2L, E I S~ -22 "Of -M §E
Is..
~g M 'I B ~~M . % p E -E &:
-9 ~~
o
E5 --d pj
S
51.: "*SjE
. =
E 019 2 X Z'
5 e bi 0
;fz . j Z 2
H1 ZE 2 A, Z :j P_,~ E - "N
E
Z
V z 8-- e
-.0 21 1 ti= .
2,
u!
WE' "till g
=t . z .2 Ua
d
v. E. j
E~ S~
r a
o
~E ,.
. 1~
.1i d Vp~ 0 E.
F
E
I
c E 2I fis
C Mz
t 1
t
Ril
3*'*.
=' ~ a 0, 1
o
t2~
El
A
El o.Z
a
12
E
-.
tj
: 4 >- E
.0 SU
z
9 3
E r. .
UP4.1 U
12
;a.tE; 5. r
~5~21
E 1-5 E -9-S
o ..?g: 4;o. PZ l2. -.5 l .2 o.9
V
E "i a ri gig- .5 t' E
Z
6
1 J *-0
. .1 It
a
all Q:113?
r:
g-1.3.at - . - E
; 3 14 ~- -~ = F1. 11
Is
001
66, I
39
~.38MA
OFF-,
:~A'rj~j
I
C
I S* 'it, 2. : % ~ i
31 - I - Si
, f -qgllil
N
Hj.
fig"AMS.
2..
K.jj.-N
a.
--
kjjq-.§a'1 ~ 'i i 9
ff
,
-*,mc a K
0
PE- I I.M ~.P E, § '9 g 113 'o;"
" C.: p : ~ _1 5 Ee
e 1 E
et;p N11-
EH=,
8 E12E J~4!
ig
E 1.
Z!
I * ,
-0-
I MIN. sv ZZ
Sh
c

23Q Individual Returns/1977 e Forms and Instructions
-93 fi~
x &
if a E 2
I - V. - I
.2 L
_8 -at: V9 E t s
E E :1 a *2
P I
o: C1
E 2_8! 7
V--j E
V. ;0 al
i's mo .9 K a- 9
18. Z 62-El 2, E g
134
EBB. 1-5
e v Sta
-EE
2 as Egg
El- Pf -";Q~ -_ ES 9 -" a N
Z ::I -ge - K 16-- -. ' -2 jj E~ c v Eg. -a os" ~v g=i i
a F
E U 0 15-3 E E r: I- E
E
te V3 8,
E3- 0 lo
E E '62 Z' Z 6
0 ; tf- a
8 E
sll E v 8 r= E' Z E E e
E
E E L- - ,A
.8 r= r: 2
-VA o M J1
2 W
E_ 12 E 5
-U I
.4 U 2 x a
CIP
sm
U-2
I z
E
S. ~ .5 .
. . C .
2
gejfE
9 E.
a~'
L.
j -
E
Z.-
V. Lit
13 a 510' E i.,zi. 0 - V 4
E 'I , pg1j,5
. . ! I - it
e's ga g Vdg RR, t,
V _=~,o E 2 c -E-z.2 E 11t-5
Sv
R s- E -H.-
- - =. E .1 r!E
-
&Z 3- V8 U
.3 4spv t
E
1; E 6 3~._ o-
E E_ , Igo
Ym'&' 3.2 4 S E
6 E
E8
.'a :o:. :2 2, V 1 2,2 Es V.il -2 o
.2 J~ % *E ~ j §-I'E 2 E-
R jk 75 E a
s jg c v
! - =- 1- ..v.r -
E Ij r= z T r: r: - o v B f.
R E
Nt o =15 _E ~ff r: III--- E-9 T1
!4 S. 11 -E , L .. ;, 't
E;a
E E. -a e -6-0 a
Mjdtliji a F
R.~ F_ *z 1.9 1 92. E.
It's 1 82% r*a '0 r= e t &A! 55j Ir
r - .
-2
2 to a f -5 lo .-Sk 'S .
9
-5 2 - To .
_B f, 9 a. -9't! It .2. i
E
e.z a 2
gAEg~4.Ej.,-Tq.t
E.-t vtt:56~-s .2 %
.1 -11 -a' f - 11 -3 V It.
,j3:Zv2 Z
11o B 3c.
ti . =
Re
%
V a
3 -i I
2-A - oil s ri
.2
t A HE
4-, Mo.
9i v.
Ems E 91-H-2
E_
-E o a
g2 Es 5
2av.1
'Wh-aE
3Eq L
xa Es g
-a
s E t!v_ .729 a Vo
Ep ~ .
a, o t t
g 6
Z. z
-21;
Z_
V
.9.-a
o E
..-5. 2 § 9.E
. t2 el . , 2,~ J t:
E -a --
~; 2
1-E
P.'o
'rE*1;2 S et- . - Z 9 . V v 91 R29= v A'E A E! U
E J. .S_ g tipP.L
-
Ze
"le
P,=.t
ZE~!j'-60115 t--a-vs S,~ ng jam.8% '.a 6V ; en: E
El" f -
EE. hiv 7 E .5. 1 a WI
H,At -
L
E
sa
i
112 r: 9:5 zza -
zzo~ =.,o . .;z
2 -a- ~85 am
I 'EE"
ka=r.
, .:2 S.
o
-c .251
a
-.6.5
E,
E
A - E I E!-.
rLr C
9-1 a 11
tags] Avis
9 1:9 8 -27~a R. -6 a R- E'
.Sigf
T O.qs:2
R.".. .3 9
J~Ht
on NBE?
"2:5 vx .1
s
s ..E
13. E
cc
I 8.m - - I
E
j;EvUjjr=
B
ipe,
E
i!~v .
-91,1. -1 , -pkt
E ; a
E w '. .
.1o 7 ~- I it
is
fi. %
Mai HEM.
1125
E
V .
ie "B
113111j..2.1
E.E ..m=9
-a I g A ; g P
I C,
§5
2 _-E. g-E
- 9 E is -11
1 . o.
c
pt 'i.* V., jO
!
pu;
19, wa o2o o
-r, Rzgj
RE 1; =8
U.A-v;a
z
E
em co 1; t a %-_-O -V c Q ED 0
crm @ E 285 M;6 Ell BI Ptj~ggg Ell tIE 66 6:
S.'j EV X116 s
4-E-8t EIR. J1. ~*t I :
zo"I! 1H g ~ . , E - 0 v E
t o.
E v -,-2
fig -1 - - r, - 9.=. V -f a. .5 it
L21 . 5:~
ie 0 0 E..
. c , U,
e
Z
aE
RH E .~g f' -t
E
w pa a-g E
m E4E 1-88. - v
_ER ME E
, 1 ..2 , j c. O'g.
-a 14-1.6 -1, 1 1 , a , .?s e h v "' E
02, o
-e . .1 e E. I% jv K ova 0 -I I
V -IR
I
S EE E~ E
- E.- - -e- 8 gm5 o~ E
11.1r. ERNSEi 0
L, 1, us .1 xe 4 12-~if a e Ste 1! 2. 32 E fN
298
11
,
N..
Z9
> .gSZj,1- E 1 . E 9 ILI 4" P. I SISS ig
e 2
2~
E o..
tie
h>: ,:a kl~
o.
E We
LP
.;E -:9 J. e
us
. " 9 .,-aa -2 U", 9-.
o
Si I -i'M
S..
ili E
v g 9
K ' -e ~.E'j
'E-
'o
E HI!
rs U. .0 58 1
:51 o=,o a iji
-
S c
.9 c' I
3 o
t p e cPo
Sil 58 E' e e'
0,
ZIB E a, t: -1
E
El-v- BE 410-6
jE §j1.2 8 I'E
1tj;j1.-9 - a E 8~lw .L - a Ss t
9'8!j,.ft 'ZE e- E4 . m.
E
E g'R- .8
S-ga if jjj~
.52 3
---a"E B- -E d E ~ 2"S .6-d
is
1"n, 1;
Aw
t
..
7,
-1.2
42
j El. E.
E, E. f i. 1. 1 1
. P
- =
P -Is v 5 P
-
t
'0 2. ;*2:5 o S. 0- E
t r,
f E.
Ef
E rz
rL
I
f' 2
x
0tj
1: j
:i is
12
lei E .
E
:
0.
E
-so
v
I
ifil 0 as.
2
Us
R1 S
S E j
E=
.
E
A
Ili. o j 'E I 1Z
'49 aj
M .5s ,
2- T
1. -
E Mw
MEI r. U2
Est 12-P
g, > , . -E Zo 12.11 E ~,gj
I
V ge
-
-E
x of
o
F_
E_I
__1

I
Examples of lacakne You Do Not Report-
Disability retirement payments and other
benefits paid by the Veterans Administration.
I
Dividends on veterans' insurance.
Life insurance sums received at a person's,
death.
Workmen's compensation, insurance, dam.
ages, etc. for Injury or sickness.
Interest on certain State and municipal
bonds.
Federal Social Security benefits.
Gifts, money or other property you in.
herited or that was willed to you.
Insurance repayments that were more than
the cost of your normal living expenses
if you lost the use of your home because
of fire or other casualty. Repayments of
the amount you spent for normal living
expenses must be reported as Income.
Employer amounts contributed on behalf
of and benefits provided to you as an
employee or the spouse or dependent
of an employ", under a qualified group
legal services plan.
Une S-Wages, Safari", rips, etc.-Show
the total of all wages, Salaries, fees, com.
missions, tips, bonuses, and other
amounts your employers paid you before
they took out for taxes. Insurance, etc.
Include In this total:
(1) The amount shown on romn W-2 In
the box Wages, Tips and Other Compensa.
tion.
(2) rips you did not report to your am.
ployer. (Show any social security tax due
on these tips on line 51--minstructions for
this am on page 13.)
(3) Wages You received but do'not have
a Farm W-2 for.
(4) Certain disability retirement Income
if you are under age 65. (See Instructions
for Schedule E under Disability Pension
and Annuity Payments.)
(5) Fair market value of meals and liv-
Ing quarters if given by your employer as a
matter of your choice and not for your
employer's convenience. (if your employer
provided meals where you worked for your
employer's convenience. do not report
their value.) Do not report the value of
living quarters if you had to accept them
as a condition of employment.
(6) Strike and lockout benefits paid by
a union from union dues, Including cash
and the fair market value of goods re,
calved. unless the facts clearly show that
such benefits were intended as a gift.
Note: You must report on tine 8 all
wages. etc., your employer paid for your
personal services, even if the income
was irrev9cably assigned to a trust, an.
otbor person, a corporation, or tax exempt
organization.
Please get Publication 525. Taxable In.
come and Nontaxable Income. for more
information on reporting income received
in the form of goods, property, niftis, stock
options, etc.
If your employer paid you more than you
spent for business expenses, please see the
instructions on page 10 for Reporting De.
ductions and Excess Payments.
Um 9-4"terw Income--For an expla.
nation of interest Income, you should see
page 17. Enter on line 9 the total interest
rec ived. If you received Over $400, you
must also fill In Schedule 8 and list names
of all payers and amounts received.
Une 20&-Dhrldends.~For an explanation
of dividend income, see instructions for
Schedule B on page 17. Enter on line 10a
the total dividends received (this is grow
dividends less capital gain distributions
and any nontaxable distributions). If you
received over $400. you must also fill in
Schedule B and list names of all payers
and amount received.
Note: If you received capital gain distributions
and do hot need Schedule D to
report any other gains or losses or to figure
the alternative tax, do not fill In that schedule.
Instead show 50 percent of your capital
gain distributions on Form 1040, line
15.
Units 10b-Ercluslon~Ycu may exclude
up to $100 'of dividends received from
qualifying domestic corporations. '
If you are married filing a joint return,
y u and your spouse may be able to ex.
clude up to $200 of. dividend Income. Thus,
if both you and your spouse had dividend
income from jointly or separate~ owned
stock. you may each exclude up to $100
of dividend Income. However, neither of
you can use any part of the $100 exclusion
not used by the other In the cwe of stock
owed separately.
.
For example, if you had $300 in dividends
and your spouse had $20, only $120
may be excluded. If all of the stock on
which the $320 of dividends received had
been held jointly, then you and your spouse
could exclude $200 ($100 each).
Taxable dividends from the following.
corporations do not qualify
dends exclusion:
for the divi-
(a) Foreign corporations, including
amounts from controlled foreign corpora.
tions.
(b) So-called exempt organizations
(charitable, fraternal, etc.) and exempt
farmers' cooperative organizations.
(c) Regulated Investment companies,
unless the companies have told you how
,much of the dividends qualify for. the
exclusion.
(d) Real estate investment trusts.
(a) Electing small business corporations
to the extent the amounts am distributions
out of current earnings and profits. However,
for this purpose, current earairigs
and,profits am limited to, taxable Income
for the year.
Note: Earnings from savings and loan or
building and loan associations are often
called dividends, but they are realty In.
terest and should be shown on line 9.
Una I I-State , dish Local Income Tax
Rafunds.-Show the amount of State and
1=1 ii1conne tax "nds that,you received
or were credited to you in 1977 if you
claimed the tax as an itemized deduction
in a prior year. You need only report that
part of the refund that resulted in a Federal
Income tax Savings in the year cle,
dueled.
Do not use the refund to reduce your
,deduction for State and local Income tax
for 1977. If you did not Itemize your de.
ductions in the year the tax was paid. do
not Include the refund in income.
Una 12 - Alimony Received. -- Show
amounts you re"hied as alimony or separate
maintenance. For more information,
please get Publication 504, Tax I nformation
for Divorced or Separated Individuals.
Line m--so percent of Capitol Gain Distributions.-If
you do not need Schedule D
to rep rt any other gains or losses or to
figure the alternative tax, do not fill in that
schedule. Instead, you should show 50 percent
of your capital gain distributions on
line 15.,
Une 17--Fully Taxable Pensions and
Annuities-You should use this line to re,
port: (1) Pensions and annuities if you paid
no part of their cost. (2) Military retirement
pay from Form W-2P. (3) Amounts re,
calved as annuity under the special rule if
you recovered your entire cost before Jan.
uary 1, 1977. Plea" see Instructions for
Schedule E for more information on pensions
and annuities.
Una ~O-Other_You should use this line
to report and tell the Source of any income
you cannot find a place for on your return
or other schedules. Include prizes, awards~
and amounts you recovitred for bad debts,
medical expenses or other Items that reduced
your tax in a prior yew.
You must also report gross lottery and
gambling winnings as income on line 20.
Lottery and gambling losses can only be
taken as an Itemized deduction on Schedule,
A. However, such lowes; are limited
to the amount of winnings reported.
Generally, self-employment income
must be reported on Schedule C (Form
1040) or,Schedule F (Form 1040). H
ever, if you received self-employment in.
come such as directors' fees and you,did*
not incur any expenses related to this in.
come, you may enter the total amounts.
received here and on Schedule SE (Form
1040), line 5e,
Not Operating LosL--4f you lost money
in, a trade or business In 1977, you can
subtract the loss from your 1977 Income.
(rhe loss can also be from a personal
casualty or theft low or from selling or disposing
of real or depreciable property used
in your trade or business.) ' . .
If your losses were mom than your Income,
the difference may result in a not
operating losf. Generally, you can use a
net operating low to reduce your income
for the three years before, 1977 and thei,
seven years after. or you may elect to'use
it to reduce your -income for, the seven
following years without carrying the loss to
the three prior years. If you carry back th
'Paige 91
lossend am due a refund from the carryback,
you may use Form 1045 to got a
quick refund. But If you elect to carry the
loss forward Instead, you must attach a
Statement to this effect on a timely filed
return (including extensions). If you make
such an election, it cannot be changed
You can change methods of figuring
your cost from year to year. But you cannot
change to the fixed mileage rate If
you claimed depreciation and did not use
the straight line method, or if you claimed
additional first-year depreciation.
(2) Meals and Lodging.-You can de.
convenience of your employer to be able
to deduct the expenses for that portion.
If you paid part of an expense and your
employer paid part, you can deduct the
amount you pifid. It your employer paid
you more than you spent, you must report
the difference as Income.
later.
If you had a loss In a prior year to carry
forward to 1977, you should enter It as a
minus figure on line 20. Attach a Separate
sheet showing how you figured the amount.
For more Information, please get Publlstion
535, Tax Information on Business
Manses and Operating Losses.
Adjustments to Income
Une 22-MovIng Expense-Employees.
Including now employees, and self-employed
persons, including partners, can de,
duct certain moving expenses. The move
had to be In connection with your n job or
business. The expenses you deduct In.
clude the cost of moving your family, furnitum
and other household
sonal belongings. You ca I 9:1s~oa=
meals and lodging while traveling to your
new home.
Up to a certain amount, you can also
deduct for. (1) Travel.'meals, and lodg-
Ing for househunting trips you made after
getting the job and before you moved. (2)
Meals and lodging-while In temporary
quarters In the general area of your now
place of work for up to 30 days after you
got the job. (3) Expenses for selling, buy.
Ing. or leasing your now or old home.
The mileage test has been decreased
from 50 miles to 35 mites, and the dol.
tar limits for the amount you can deduct
have been Increased.
If you find you can deduct moving expenses,
you should attach Form 3903. AIM
Include on Form 1040, line 8. all amounts
you were paid or repaid for moving expenses.
Therrshow your allowable expenses
an line 22. (if you were employed, amounts
duct these If YOU were temporarily away
on business from the general or" of your
main place of work. You cannot deduct
the cost of meals on daily trips where you
did not need to sleep or rest.
(3) Outside Salesperson.-In addition
to the above, an 'Outside Salesperson can
generally deduct other expenses neces-
sary in sales work. Examples are selling
expenses, stationery, and postage. An outside
salesperson is one who does all sell-
Ing away from the employees place of bust-
ess. If your main duties are service, and
n, ,
delivery, such as a milk driver-salesperson.
you are not considered an outside sales-
person. .
If you claim a deduction for business
:penses, you should attach Form 2106.
Show the total of all amounts received
In
from or charged to your employer and the
natuie of your OCCUp3tion. Also show the
amount of your business expenses broken
down into broad subjects.
' Even If you do not claim a deduction
for your business expenses, you must attach
the above Information to your return
unless a you were required to, and did make
satisfactory accounting to your employer.
You are considered to have made a
satisfactory aceounting If:
(a) You received either a daily allow,
once of no more than $", Instead of
actual living expenses, or the maximum
per them rate authorized to be paid by
the Federal Government In the locality In
which the travel is performed, or a mile.
age allowance of no more than 17 cents a
mile. However, an employer may grant g a
separate additional allowance for parldn
fees and tolls attributable to the traveling
Reporting Deductions and Excess Pay.
mentsYou should report expenses and
payments as foll6vs:
(1) If your employer paid you more
than you spent, report the difference as
income on Form 1040, line 20.
(2) if you spent mom than your err~
ployer paid you for travel and transporta.
"on, meals and lodging, and outside sales.
person expenses, you can deduct the difference
on Form 1040, line 23. If you itemize
deductions and had other business ex-
penses your employer did not pay for, you
coin deduct them under Miscellaneous
Deductions on Schedule A (Form 1040),
line 31.
(3) If your expenses equaled the W
ments you received (or were m6re than
the payments but you do not want to claim
a deduction for the difference), please
write on the bottom margin of Form 1040,
page 1, "Employer payments were not
more than my business expenses:'
Note. It your Form W-2 IndIiIdes
amounts your employer paid you for busl-
now, expenses. attach Form 2106. Include
your total expenses on line 23.
For more Information. please got PuW
cation 463, Travel, Entertainment, and Gift
Expenses.
Unis 24--lisayments to an Individual Ite.
threment Arningentuart-Enter the allow
able deduction as shown on Form 5329,
Part Ill. Married persons. both of whom
have an Individual ratirennent arrangement.
:nd who file a joint return, should attach
Form 5329 for each spoiise and enter the
combineddeductions, an line 24.
paid or repaid should be 14cluded on Form and transportation expenses. A non-working spouse must file a Foint
4782 and In total wages, tips and other
compensation on the Form W-2 your am,
. /
ployer gave you.)
For more Information, Including special
rules for , military pe nnal, get Publicstion
521 , Tax Information on Moving
Expenses.
UI no 23- . Employee Business Exporiees_
You can deduct thi following expenses
that were not paid by your employer.
(1) Travel and Transportation.-You
can deduct bus, taxi, plane train fares and
(b) Your expenses were necessary to
carry out your employees trade or bualnew.
and you, gave your employer proof
of the time, place. and business reason
for the travel.
Deductions for Attending Foreign Con.
wentions-Generally, you can deduct expenses
paid or incurred In attending no
more than two foreign conventions duringthe
taxable year. In addition, them am
special limitations On the transportation,
5329 for the year In which an Individual
retirement account or annuity is astst~
lishad for him or her and for each following
yefr that the indlyidual retirement account
or annuity remains In existence.
If you have an Individual retirement ac.
COUnt Of annuity, You must attach Form
5329 whether or not there was a contribution
or withdrawal In the year.
Coutiorc it you fall to file Farm 5329 by
the due dabs, wIthoult reasonable caus%
meals, and the cost ot using your car 1. u r work.
If you use your Own ", fjobusiness
reasons, you can deduct what it cost you
for business use. Instead of figuring your
actual expenses such as gas, oil, repairs,
license tags. Insurance, and depreciation.
you may prefer to take a fixed mileage rate.
Effective January-1, 1977, this Is figured
at 17 cents a mile for the firtit 15,000
miles and 10 cents for each mile over
15,000. Add to this amount your parking
feesandtolls. -
.
For iiirtomotilles'that have been or are
considered fully depreciated, the stand.
aid mileage rate Is 10 cents a mile for
all business mileage.
lodging expenses that can be
deduct
'the
ad for attending fore
l9n
conventions,
Other Business Expenses.-It you Item-
ize deductions on Schedule A. you can. also
-deduct other business expenses under the
heading Miscellaneous Deductions. Examples
of-these expenses are dues to
unions and professional organizations and
the cost of tools, materials, atc., that your
employer did not pay for.
Limitations apply to deductions relating
to the use of your home for business PUTposes.
Under these rules. you must use 8
Pon Of your home as an office exclusively
on a regular basis In connection with Your
employees "do or business and for the
you will be subject to a penalty of $10 &
day, for each day It Is not filed. The Pon-
alty cannot exceed $5,000.
Une 25--istyments to a Keogh KIL 10)
Retirement Plan.-Enter the allowable de.
duction. for contributions to Your Keogh
(H.R. 20) plan.
Solts proprietors who have Keogh (H-FL
10) plans should file Form 5500-K Or
Form 5500 for such plans. Do not h
to your Form 1040.
Partners are not required to file nstures
for Keogh plans In which they participatiL
However, partnershIps are required to file
Form 5500, form 5500-C~ of K,bO
55007
report on Keogh pbsins.
Page 10
CL
X)
C
ca _4

;: i You should oxnpkto a Farm 5500-K for. Into after August 16. 1954. or a decree
each plan with lowin does 100 participants
and with at Mad one asimer-amplayes. For
for support antered Into, after 'March
1.
1M The person who recolves these pop
, each plan will" fewer than 100 participants. ments most report thern as Income. Do
and no, ofemser-ampheyes, you should earn,
plobs Form 5500-C, and for each plain with
'100 car more pariddissioN6 complada Form
.5500. All of H forms should be filed
on holes the lad
:Y79itgn-U.T. fofi:wlqg the close of
the plan year.
Cautloru The law Imposes ponsifillas for
" deduct lump sum cash ar property rad.
Alemands, voluntery Payments not made
under a court order or a written separation
agreement."or amounts specified child
SuPPOrt.'For more Information, you" should
got Publication 1104, Tax information for
Divorced or Separated Individuals.
Une 30-4lisablift, Income Exclusion
'failure, to - furnish complete InfiPirmartion
and linfluri Of& miquirdid stelleamentS and
(Skk Pay).-Before 1977, an employee
wa3 able to take a sick- pay exclusion
'retsims.
Lbo 26-Forlefted I Penalty for
when the employee was absent from work
because of sickness or Injury. For 2977,
Prematic" Withdrawal-You can deduct a the disability income exclusion applies only
flodefted Interest' penalty for premature
withdrawal from a time savings acocamt an
this line. Enter the amount of forfeiture
4shown on your Form.10991-INT
on this
-
H Xou are under-age 65 at the end of the
taxable year, had not reached mandatory
retirement age at the beginning of your tax.
able year, and were
your 0"on or annaft or you may elect
not to exclude your dinWiNy,lnconn and
inset It as a pension or annuity. Once
made, this election cannot be changed..
You must reduce the ciftabIllity, Income
exclusion by the excess of your adjusted
gross Income before the.exclusion Qlno
29) over $15.000. On a insturn where only
one'texpayer Is artfided to the meAmum
.disability Income exclusion, the-eiFcluslon
would be phased out entirely If the amount
on Form 1040. line 29, Is $20,200 or
mom. On is Joint return where both spouses
am entitled to the maximum disability Income
exclusion, the axcIuskm*woWd be
phased out entirely If the amount on Form
1040, line 29, ]a $25.400 or mom. ~
fine.'NoW. Be sure to include the gmss
amount of 1977 Interest income on fine 9-
Une V--Allmoorly, Paid-You can deduct
periodic parymerme; of alimony or separate
maintenance made under a court decree.
Permanently and totally
disabled when you retired (or were perma-
nently and totally disabled on January 1,
1976, or January 1, 197", if you retired
before the later date on disability or under
circumstances which entitled you to retire
Enter the amount of your disability'litcome
exclusion on Form 1040, line 30 and
attach Form 2440. You Must also attach a
Physician's certification to your return.'
For the pfiysiolan's certification form
and Inform atioS on how to figure your
exclusion or to make the election not to
claim your exclusion. please get Form 2440
You can also'ded6ct payments made under an disability). If you qualify, you may and Publication 52?, Tax Information of)
a written separation agreement entered be able to exclude up to $lW a week of Disability Payments.
instructions for. Page.2 of Form 1040
you checked Form 1040, Box 2 or 5).
XND
Tax Computation,
Should You Itemize YourDedUctictud
.
You must clockle'vehailiner you should
itemize your deductions for charitable contributions,
medical' expenses, Interest.
Itemized deductions 16 making the
computation on Schedule TC, Part 11), .
(b) You can be claimed as a dependent
'an )gur or:%f rents return andyou have $750
or
. unearned income and less
than $2,200 of earned income If you are
p 6 Y, da7m
fewer
then:
f examlons Form 1 and checked,
040. Box I or 3;
exemptons and checked
Form 1040, Box 4; or
0 exemptions and checked,
Form 1040. Box 2 or 5,
taxes. etc~ it will generally be helpful to
follow these guidelines to help YOU deter,
mine whether you should itemize.
If you are:
0 Married filing jointly, or a Qualifying
widow(er) with dependent child, you
should Itemize If your itemized deduc.
tions are more than $3,200, .
0 Married filing ~sepanatellr. you should
itemize If your Itemized deductions
am mom than $1,600.
0 Single or an'Unmarried head of house-
.hold, you should Itemize if your Item.
ized deductions are more then $2,200.
CAUTIONt Certail~ taxpayers are re,
quired to itemize deductions even though
their itemized deductions are less than the
amount shown above for their filing status.
Sea Whi MUST Hembus Deductions, below.
single (less than $1,600 of.earned Income
if you are married filing a separate return).
Earned Income means', wages, salaries, Plainsional
fess, etc., for personal services rendered.. It
does not'includO COMINNISAtiOn for your services
that' was a distribution,of earnings and Profits
other than a reasonable allowance. for your work
far a corporation. If you were amilegaid in a busi.
nes' in which both Personal services and capital
were material Income-producing fattom consider
as earned income for Personal services rendered, an
amount not In excess of 30%of your share,of net
Pmfits of the business. .
W You elect to exclude income from
sources in United -States Possessions
(please we Form 4563 for details), or
(d) You are a duai-status alien (please-
see Instructions for Dual-status Tax Year
on page 4).
AND
.
41111, You do not figure
your tax,lising any
method described In Other Ways to
Figure Your Tax on page 12. .
."if you cannot use the Tax Tables to find
;your tax, use Part ]. of Schedule TC (Form
, 1040), Tax Computation Schedule.
How to Find Your Tax If You Use the Ta x
,Tables:
To find your tax, you will need:to use the
appropriate Tax Table. If you checked Form
1040:
Box 1. use Tox Table A (Single).
Box 2 or 5, use Tax Table 8 (Married
Filing Jointly and Qualifying Wid-
-(e,)s);
Box 3, use Tax Table C . (Married Filing
Separately), or
If It Is. tn.your,benefit to Itemize your
deductions you should fill In Schedule A
(Form 1040) and enter-your excess itemized
deductions from Schedule A, line 41
on Form 1040, line 33. Subtract line 33
from line 32 and enter the balance on
line 34. This is your Tax Table Income. .
If you do not itemize your deductions,
enter zero on Form 1040 line 33 and enter
the amount from line 3i on IM. 34. This
Is yoqr Tax Table Income..
Who MUST Itemize Deductions
You must itemize yourcleductions on
Schedule A (Form 1040) if:
(a) You are married filing a separate re.
turn and your-spouse itemizes deductions
If any of th& above applies and your
itemized deductions on Schedule X line
39, are less than the amount on Sched-
ule A, line 40, you must. complete Part 11
of Sched.uleTC, Tax Computation Schedule.
Enter the mount from Schedule TC, Part
11 [in a 5 , on Form 1040 lin0 34. Do in 0t
make an entry on Form 1040, line 33 and
disregard the instruction on line 34. Line
34 is your Tax Table Income. If (b) applies~
check the box under line 33 an Form 1040.
Una 35--Tax.-Find your tax on the
amount.on line 34 in the Tax Tables, (or
if applicable, figure your tax on Schedule
TC, Part 1) and enter the tax on line 35.
Box 4, use Tax,Tablo D (Head of
-Household).
After you have fou nd the correct Tax
Table, read down the left income column
until you find your Income ai shown on line
34 of your return. Then read across to the
column headed by the total number of
exemptions claimed on line 7 of your re-
turn: The amount shown at the PPint
where the two lines meet is your tax. Enter
this amount on Form 1040, line 35.
The new zero bracket amount, which re-
places the standard deduction used in prior
years has already been allowed In figuring
the t;x shown in the Tax Tables. I
(unless your spouse falls into category (b)
below, and substitutes earned Income for
n
Find your tax in the Tax Tables if:
0 The amount on line 34 is $20,000 or
addition,
you no longer need to deduct $750
for each exemption or figure the general
less,and you checked Form 1040.
Box 1, ~, or 4 ($40,000 or less and
tax credit because these amounts are ~fsci
built into the Tax Tables for you~
pap 11
meet to Figare.yoff Tax it You Called use
do Tax Tabim
-You Must use schacturle M Part I to
figure youir tax If you cannot use the Tax
Tables.
The now sam bracket amd6nt. which to.
places the standard deduction used In prior
years, has almady been allowed In dabeffninino
the tax nalsis In the Tax Rate
Schisclules. However, you will stfil.need to
deduct $750 for each exemption and figure
your general tax credit.
~ It You figure your tax on Schedule
TC. enter the amount from Schedule TC.
Part 1, line 11, on Farm 2040, line 35.
Other Ways to Figure Your Tax
Schedule G~ Income Averaging.-ft may
be to your advantage to use the averaging
method If your Income has Increased sub.
stantially this year. It you use this method,
fill In Schedule 0. For mom Information,
Please got Publication 506, Computing
Your Tax Under the Income Averaging
Method.
Schedule 0, Alternative Tax.-4t may be
to yojur advantage to use the alternative tax
If the not long:term capital gain exceed,
the not short-term capital loss, or if there
Is a net long-term capital gain only. If you
use this method, fill In Schedule D. '
Form 4726, Maximum Tax on Personal
Service lncome.-T~s tax on Personal as-
Ice taxable income is nitrated to a maid.
mum rate of 50 peroenL You should got
Form 4726 for more information if your tax.
able Income, or personal service taxable
income was over
..$40,20D and You are single or an unmarried
head of houiehold, or
$55,200 and You are married filing
Jointly ct~ are a qualifying widvw(er),
with dependent child.
If you f1pre your tax using any of the
above methods, you must also use Schad.
ule TC, Part 1.
Additional Taxes.-Una . 36=Report on
line 36, and check the appropriate box(es)
for any additional tax from:
Form 4970, Tax on Accumulation Distribution
of Trusts,
-
I- 497Z Special 20-Year Averaging
Method,
Farm 5544. Multiple Recipient Special
10 Year Averallinif Method,
Form 5405. Recapture of Credit for Pur.
chase or Construction of New Principal
Residence, or
Section 72(m)(5) Penalty Tax on ~rema'
ture or Excess Distributions from a Retirement
Plan.-If you am or were an owneremployee
and received Income resulting
from a premature or excessive distribution
from a Keogh (H.R. 10) plan or trust. you
are subject to an additional tax on the dis.
tribution. Include any additional tax due
on line 36, check the box, and attach a
statement showing the computation.
A distribution is premature If received
by an owner-employee before reaching the
age of 591/2 or becoming disabled. If you
received amounts in excess of the benefits
Page 12
permilded under this Plan formula, the dietribution
Is excessivis. -
. pll.d Ca:; .,,: ;not Vr.4F:pFgh-t op.,
10) Plan-Only the credit for the elderly,
credit for child cam expense% and the
credit for contributions to candidates for
public office may be'appited against this
tax. If You apply anir credit against this teas,
reduce the tax (but not below zero) by the
amount of'such credit and show the cions.
pubstion and Identhy the crodift(si on a sW
state shotement.
Credits
Line 38--Credtt for Contributions to Candi.
dates for Pubtle Office, eft-You may
claim a tax credit here or an Itemized deduction
on Schedule A, line 31, but you
cannot claim both. - for contributions to
candidates for public office and political
$562.50 (if married filing jointly), If you
are- '.
I .
(1) Age 65 or older, or
(2) Under age 65 and retired under a
public ratimment system. - .
For more Informatl6n. please us InstruL,
tons for Schedules R and RP.
Unit 40--Cradft for Child and Dependent
Care Expernaes.-Certain payments made
for child and dependent care may
claimed as a credit against your tax.
Line 41--Investrnent Cradit-For conditions
under which you can take an Investment
credit. for investment in certain trade
or business property, you should get Form
3468.
Unar 42--Forstgn Tax Cr*dL--o you paid.
llacom tasb
a loa,lax, fWuldwag,etcoFuanrtmrylolrluSatopsonw
If you can claim this credit.
43-4taft for Wages pidd or it,.
cUunneedinlifforkIncandl (WIN)Progrims-
Business employers may claim a credit of
20 percent of the salaries and wages paid
or Incurred to'employeas hired under a
Work Incentive (WIN) Program. The credit
Is allowed for salaries and wages paid or In.
curred In the fimt 12 months of
wnploy~
ment
Employers may also claim a credit of
20 ment of salaries and wages paid for
bus= or nonburdness employment of
mirtain Federal welfare recipients. For nonbusiness
emisloyers. this credit is limited
to $1,000 for each employee. Please am
Form 4874..
1
Line 44-New, Jobs Crecift.--Businears employers
who him additional employees dur.
Ing the year may qualify for this credit.
Generally, this credit Is based upon the
aggregate unemployment insurance wages
under the Federal Unemployment Tax Act
0 FUTA). Please got Form 5884 Now committees and to newsletter funds of
candidates and elected blic officials. Pub.
licallon 58% Voluntary puTax
Methods to
Help Finance Political Campaigns, explains
whether a deduction or credit Is better for
you.
Jobs
It and Publication 9OZ 7ax Informs-
If you elect to claim a credit add up the
money you gave to help pay campaign ex.
tion on Jobs
details:
Tax Credit, for additional
penses of candidates for public officia,
political committees and to newsletter
funds of candidates and elected public of. -
ficials. If you are filing a separate return,
enter HALF the amount you gave, but not
more than $25. If you are manned, filing a
joint return enter HALF the amount you
gave but n;t mom than $50. Do not enter
mo;~ than the amount an Form 1040, line
37 reduced by the amount of credits on
lines 39, 41, and 42. Make do calcula.
tion before you enter the =Molhere. '
Do not claim this credit for the amcxmt,~'
If any, you checked off to go to the Presw
dentist Election Campaign Fund. , -,., 'A
Una 45--Energy Credits.-This line
and line 61a have been reserved for
credits for energy saving expenses. At
the time these Instructions were printed,
Congress me considering legislation
that would allow credits for these
expenses. Under this pending legislation,
you may be entitled to claim the
energy credits against your Income tax.
If this becomes law, we will notify tax.
Payers through radio, television, and
newspaper announcement&,We will also
make available Form 5693, Energy
Credits, and Instructions in IRS offices
and many banks and post offices. The
Line 3%-Credit for the Ekferly~:-Vod ni-ay foim will tell you which expenses quall.
be able to claim this credit and reduce your fir and'how to claim the credits. If you
tax by as much as $375 (if slngle);~'or have'any questions about whether you
qualify for the credits at that . time,
please contact an IRS office.
~. If the legislation does not pass, do
not make an entry on this line or line
61a.
Other Taxes
Une 48--Self-employment TaIL-Enter the
amount shown on Schedule SE, line 18.
If you malittalm a household that Included
a child underage 15 cra dependent
or spouse Incapable of self-care, you may
be allowed a 20 percent credit Thesefor
employment
minted expenses. expenses
must have been paid during the taxable
year in Une 19 lnimum Tax-You must attach
Form 4625 If you, have Items of tax
preference of mom thin $10.000 ($5,0DO
order to enable you to work either
full or part time.
If married filing separately), even It there
is no minimum tm OR If you have any
minimum tax liability deferred from a prior
taxable year until this year.
Tax preference Items Include adjusted
itemized deductions (generally the amount
by which your Itemized deductions as ad.
justed exceed 60 percent of your adjusted
For detailed Information, please sea gross Income), accelerated depreciation,
Form 2441.
stock options, long-term capital gains, etc.
Please see Form 4625 for additional details.
Une 50-Tax from Recomputing Prior Year
Investment Credft.-Enter the difference
between the credit taken In a prior year and
is credit you refigured due to disposing of

the property earty. Plum ses Forin 4255
for details.
Um 52--Social Security Tax on Tip In.
come Net Reported To Employer-4f you
received tips (cash or charge) of $20 or
mom In.any month and you did not re,
port them to your employer, you must
pay the social security or railroad retirement
tax on those unreported tips with
your Form 1040. To determine the amount
of social security tax on unreported tips for
which you are liable. you must file Form
4137 with your Form 1040. Enter on
Form 1040, line 51 the amount of tax
shown on Form 4137, line 10.
To determine the amount of railroad
ratilremeni tax on unreported tips for
which you are liable, contact your nearest
Railroad Retirement Board office. Enter the
tax as determined on line 51 and write on
the dotted line to the left of the entry space
for line 51 "RR tax on tips."
Be sure all your cash and charge tips,
regardless of the amount are Included as
income on Form 1040, line S.
Una 52--Uncollected Employee Social
Security Tax an Tips.-4f you did not have
enough wages to cover the social security
or milroad retirement taxes due an tips
you reported to your employer, the amount
of tax due will be shown an your Form
W-2. Enter that amount on line 52.
Una 53-Tax on an Indholdual Reffrornent
Amangeneent.-Enter any tax due from
Form 5329:
part IV-for excess contributions to an
individual retirement arrangement
Pan V-for premature distributions
train an individual retirement arrangement,
and
Part VI--for undistributed funds In an
individual retirement arrangement.
Tax from Recomputing a Prior Year
Work Incentive (WIN) Credit.-4f a WIN
employee is dismissed within the first 90
days of employment (whether or not can.
secutive) or before the end of the 90th
calendar day after the day in which the
employee completes 90 days of employ.
ment, you must repay (with certain excep.
tions) any tax credit previously taken on
the salaries and wages paid or Incurred to
that employee. Please see Form 4874.
The tax train recomputing a prior year
(WIN) credit may not be offset against the
current yeaes (WIN) credit Include this
amount of tax In your I ior fln. 54. On
the dotted line to thetota left of the line.54
an" space, please write 'WIN Tax." and
show the amount.
Payments
Line 55-Faderal Income Tax Withheld-
Enter the total income tax.withheld shown
on Forms W-2, W-2G, and W-2P.
If you return to work after a period of
unemployment, you may have the amount
of income tax withheld lessened If your
employer agrees to use the part year
method of withholding. There are also
other methods of withholding which in
some instances. could reduce your ~,Ithholding.
For mom details, me your am.
Player or got Publication 505, Tax With.
holding and Declaration of Estimated Tax.
Una 55--Udmated Tax Payments.---Enter
an this line any payments you made an
your estimated Federal Income tax for
1977.
If you a - not your spouse filed a joint
declaration of estimated tax for 2977 but
decide to file separate income tax returns
for 1977, either of you can claim eachall
the
estimated tax paid. Or, you can claim
part In whatever amounts you -agree to.
Please be sure to show the social security
numbers of both on the separate returns.
If you and your spouse filed separate
estimated tax declarations for 1977 but
decide to file a joint Income tax return
for 1977, enter on this line the total of the
amounts paid on your separate declera.
tions. Please be sum to show both social
security numbers on your joint return.
Follow the above instructions even If
your spouse died;
If you were divorced during 1977 and
you filed a Joint Form 1040-ES (Estimated
Tax Declaration) with your former spouse,
please enter your former spouse's social
security number In the spouse's social
SAC rity box on Form 1040. Also, enter In
the upper right comer of the return, near
the boxes for the soplal security numbers6
"DIV.". If you were divorced and re.arried
In 1977, enter your Present spouse's
social securfty number In the box and enter -
"DIV." and your former spouse's social
security number In the upper right comer
of the return near the boxes.
Una 57--.Eamed Income Credit.-4f your
adjusted gross Income on line 31 Is less
than $8,000, you should Am the Instruc,
tions on page 2. If you are eligible. be sure
to enter the first name of the child who
qualifies you for the credit In the space
provided on 11me 57. 7
Una 58--Extenslon of Time to File (Form
4868).-If you filed an application for an
automatic f., 2-month extension of time to
Is Form 1040 for 1977, enter the amount
paid with Form 4868.
Line 59---Exec" FICA and RRTA Tax Withheld--More
then One Employer-if you
had more than one employer In 2977 and
together they paid you mom than $16,500
In wages, too much social security (FICA)
tax and railroad retirement (RRTA) tax may
have been taken out of your wages. If too
much me withheld, you may be able to
take credit for It against your Income tax.
Please use the following steps to figure
your credit. If you are filing a joint return,
you haw to figure this separately for you
and your spouse. If you am a railroad am.
ploym and you claim the credit, attach a
statement from your employer shoWng the
amount of employee RRTA compensation
and amount of RRTA tax vdthheld.
Ste I (a) Add all FICA and RRTA tax
withheld by employers fmm
your wages for 1977.*
Enter the total here.
(b) Add all uncollected FICA*
*
RRTA tax an ups, If any. or.
Enter the total hem . .
step 2. Add (a) anal
SUPS. subtract . .! ~ ~ ~ ~ ~
StelikEnter this amount on Form
1040, line 59 . . .
S
$ 965425
*Ncite Do 'not Include more than
SM-25 for any one amployvir. It any ans,
employer withheld more than $965.25, you
should ask the employer to refund the
excess to you. You cannot ink* credit for
it on your return.
Una 60--Cmdlt for Federal Tax on Spatial
Fuels, sloc.--Enter any credit you can
claim for special fuels a~d nonhigh-ai
gasoline and lubricating oil.
Please attach Form 413& For more In.
formation, you should got Publication 225,
Farmer's Tax Guide, or Publication 378,
Federal Fuel Tax Credit or Refund for Nonhighway
and Transit Users. .
Una 61-Credit for Taxes Paid by Reg.
ulabod Immstment Compardes.--Enter
the amount of the credit on line 61 and be
sure to attach Copy B of Form 2439.
Line Gla-fivergy Creclits.-This line
and line 45 have been reserved for credits
for energy saving expenses. At the
time these instructions were printed,
Congress was considering legislation
that would allow credits fof these ex.
Penn& Under this pending legislation,
you may be entitled to claim the energy
credits against your income tax. this
becomes law. we will notify taxpayers if
through radio. television, and news*
paper announcements. We will also
make available Forin 5M, Energy
Credits, and Instructions in IRS offices
and many banks and post offices. The
to= will bill you which expenses qualify
and how to claim the credits. If you
have any questions about whether you
qualify for the credits at that time,
plum contact an IRS office.
If the legislation does not pass, do
not make an entry on this line or line.45.
Refund or Due
Una 65--Owrpsyments Credited to 2978
Estimated Tm-Wa will apply amounts
you want credited to estimated tax to an
account under your social security number,
unless you attach a request to apply
it to your spouse's account. The request
should Include the social security number
of your spouse If it is not shown an the
return.
Una 66-43alance Due IRS.-In most
cases. people who how Income tax withheld
from their -gas will find that the
amount withheld will be fairly close to their
tax for the year. Sometimes It is not, and
this is more likely to happen If both you
and your spouse worked.
If you find that you need more Income
tax withheld for 1978, you can file a now
Form W-4 or Farm W-4P. Or you can ask
your employer to wthhold mom money. If
you prefer, you can file a Declaration of
Estimated Tax on Form 1040-ES and make
Installment payments. For mom information,
please got Publication 505, Tax Withholding
and Declaration of Estimated Tax.
Penalties and Interest
Avoid penalties-and Interest by correctly
filing and paying tax when due. The low
provides a penalty of from 5 percent to
25 percent of the tax for late filing unless
Page 13
you can show ressonaine cause for the
delay. If you file a return late, attach a
full explanation to your return.
Penalties are also provided for late pay,
ment of tax unless you can show reasonable
cause for the delay.
Tay," Not Paid When Due- a P no
for failure to pay taxes wh;n d! 1371?f
I percent of the unpaid amount for each
month or part of a month It remains unpold-up
to 25 percent of the unpaid
amount. The penalty applies to any unpaid
tax shown on a ratum. it also applies to
any portion of addliforail tax shown on a
bill If It Is not paid within 10 days from the
date of the bill. This penalty Is 1. addition
to the applicable Interest charge on late
payments.
Penalty for Not Paying Enough Tax Dur,
frig the Year-4f you underpaid any Installment
of your 1977 estimated tax liability
by more than 20 percent (33% percent for
farmers and fishermen), you may owe a
penalty unless you meet one or more of
the exceptions explained on'Formi 2210
(Farm 221OF for farmers and fishermen).
Please attach this form to Form 1040 to
show how you figured the penalty or
which eiceptigns you believe you meet.
If you attach Form 2210 or 2210F,
be sum you check the box under line 66.
If you owe a penalty. show the amount In
the bottom margin - page 2 of Fo" 1040
and write "Penaltni--estimated tax." If
you owe tax on line K Include the penalty
Amount in with your total. Or, If you am
due a refund. subtract the penalty amount
from the overpayment on line 63.
Declaration of Estimated Tax
In general. a declaration is not required
to be filed if you expect that your 1978
Form 1040 will show (1) a tax refund. OR
(2) a tax balance due to IRS of Ins than
$100.
Citizens of the United States or reefldents
of the United States, Puerto RICO.
Virgin Islands, Guam and American Samoa
must make a declaration of estimated tax
If their total estmatedtax Is $100 or more
and they:
Instructions for Schedule A (Form 1040)
Itemized Dedulbtions
If your Itemized deductions are more than
60 percent of Form 1040, line 31, the excess
may be considered an item of tax preference
and you may be subject to the minimum taL
Please see Form 46A Computation of Minimum
Tax, for details.
Note: See the instructions on page
11, Should You Itemize Your Deduc.
tions? Also see Who MUST Itemize
Deductions on page 11.
Medical and Dental Expe
If you itemize your deductions. you can
deduct one-half (up to $150) of the
amount you paid for medical cam insurance
even If you haw no other medical
expenses.
If you made payments for medicines,
doctors, hospitals, etc., you should follow
the step-by-step instructions in lines I
through 10 on Schedule A. Follow these
lines carefully because they show you how
much you can deduct. Show the amount
you paid for medicine and drugs. Subtract
I percent of Form 1040, line 31 (adjusted
gross Income), from that amount. Add the
amounts on lines 4 through so. Subtract
from the total. 3 percent of Form 1040,
line 31 (adjusted gross income).
. The remainder. plus your medical care
Insurance on line 2, Is your medical ex.
pense deduction. The I percent and 3 percent
limitations apply-in all cases, regard.
less of your age or the age of your spouse
or other dependents.
The medical expenses can be for your.
self, your spouse, or any dependent who
received over half of his or her support
from you, even if the dependent had in.
mine of $750 or more. ,
You should include all amounts you paid
during 1977, but do not include amounts
repaid to you. or. paid to anyone elm by
6spital, health or accident insurance: Be
sum to include on-line 5 the rest of the
amount you paid for medical cam insur.
Page 14
ance (the amount you could not list on
line 1).
Kinds of Expenses, You Can Deduct-
Payments for medicines, drugs, vac.
cines, and vitamins your doctor told you
to take but not yHounins you take on youi
own lu~ to keep healthy.
Payments to hospitals, physicians (madload
doctors and osteopaths), dentists,
nurses, chiropractors, podiatrists, physiotherapists,
psychiatrists. psychologists and
psychoanalysts (medical. cam only); and
eye doctors or others who examine or test
eyes. (If you pay someone to do both nurs-
Ing and housework you can deduct only
the numing cost.) ,
Payments for false teeth, eyeglasses.
medical and surgical aids, arches,
crutches, sacroiliac belts, wheelchairs, braces'
hearing aids (and batteries for hearing
aids), orthopedic shoes; and cast and care
of guide dogs, etc. .
Payments for ambulance ' service and
other travel costs necessary to get. mailical
care. (instead of figuring amounts you
spent for gas, oil, etc., for your car, you
may take 7 cents a mile.) .
Payments for examinations. X-ray sawices.
insulin treatment, whirlpool baths the
doctor ordered. meals and lodging If part
of cast for care In a hospital or similar
place, hospital or medical Insurance Including
monthly payments for extra ~edi.
cal Insurance under Medium.
Kinds of Expenses You C~rmot Ddut.-
Payments for funerals and cemetery lots,
cosmetics, operations or drugs that am
against the law, travel your doctor tells
you to take for rest or change, life insurance
policies, the .009 hospital insurance
benefits tax Included as part of the social
security tax and Withheld from wages or
paid on self-employment income.
Capital expenditures are not generally
deductible. For exception and mom Information,
you should got Publication 502,
(1) Can reasonably expect to receive
more than $500 from sources other than
wages subject to withholding: or,
(2) Can rmscmabl~y expect gross [name
to exceed-
(a) $20,000 for a single Individual, a
head of a household. or a too.
or Wilower entitled to the special
tax rates,
(b) $20 000 for a married Individual an.
title~ to file a joint declamtJon with
spouse, but only If the spouse has
not received wages for the taxable
year,
(c) $20,000 for a married Individual liv.
Ing apart from spouse as described
on page 7;
(d) $10,000 for a married Individual en.
titled to file a joint declaration with
spouse. but only If. both spouses
received wages for the taxable year,
(a) $5,000 for a married individual not
entitled to file a joint declArationt
with spouse.
See Form 1040-ES for details.
Deduction far
Ex0enses.
Taffes, ,
You Con Deduct-
State and local Income taxes.
Real estate taxes
State and local taxes on gas used1n your
car, boat. abi. For the amount to deduct
for gas used in your car, please me the
State Gauges Tax Table on Pais 15.
General sales taxes. For the amount to deduct,
we the Optional State Sales Tax
Tables.
The only salim taxes you can add to the
table amount are those paid on the pur.
chase of the following Items:
(1) A beat, airplane. home (including
mobile or prefabricated) or ma.
terials you bought to build a new
home Ik
(a) the tax rate was the same
as the general sales tax rate,
and
(b) the seller stated the tax separately
from the price of the
Item Included It in the
total amount but you paid.
(2) Ait car or truck. you bought
In Vermont unless or West Virginia.
(In them States the deduction
is limited to the sales tax paid
at the general miss tax rate.)
The sales tax tables cover income up to
$19,999. (For this purpose, income is: line
29 of Form 1040 plus any income you re.
calved that is not subject to tax; such as
social security, veterans' and railroad m-'
tirement benefits, and workman's com.
Rensation. Also include the untaxed por.
tion of long-term capital gains. dividends
exclusion, unemployment compensation'
and public assistance payments.)
The following steps and examples. ex.
plain how to figure your miss tax deduc.
tion if your income was over $19,999.
Stop I.-Find the $19,000-19,999 Income
line in the table for your state
and mad across to find the
amount of sain tax* for your
family size.

Step 2-subtract - $19.999 from the
amount of Fur income. For
an $1,6412ihat 004 or fraction of
your Income Is
greater than $19.999, but less
then $50,000, add 2 percent of
the amount you found In Step 1,
above.
Step 3--For each $1,000 or fraction of
$1,000 that your Income Is
greater then $49,999, but less
than $100,000, add 1 percent of
the amount you found in Step 1,
bove.
If your 8Income was $100.000 or more.,
your deduction Is 210 percent of the
amount determined In Stop 1, above.
Example 1-Assume your Income
was $27,2M. YOU live In Ohio, and there
Ore 5 People In your family.
Stop L no Ohio table for
income Of
1IMM Bad 8 fainallif of 5 $184.00
People shows . . . . . .
Slop Z Figure this Ship as buornic
$Z?.nO-$I%9g1=$7,251
$7,251-1,000=7251 or 8
(411411 $IAM-or fraction of
$IAO of Income)
exassaia . . . . . .
Ohio gain in deduction an in.
com of $V.250 for M*
ors . . . . . . . . $21
29,14
-
The following list shows the tax rate on
4 Station of gasoline In each Stebo based on
Information available on September 1,
1977. FInd the rate for your State. Then
use the table below to find how much tax
Abb~ 70 Hawaii 830
JUSSION so Idaho 9.50
Arizona So fuln.10 7zo,
Arkansas 8.50 Iniffarm 80
California 70 Iowa 70
Colorado 70 Kansas go
Cemeacificut 1 10 Kent"clo, 90
Delaware go Louisiana 80
Ofter June 30. 110) Maine go. (
Distinct of Cdumbis 100 Maryland 90
Florida so Mossachusatts"
saw& 7Z# alwipm go
miles driver,
Under 3.000
u--.;
under, 6.000
Under "000
7 OW ud u , 8.000
ed
6I
d:rr to'm
10.000 under I IAOO..
21.000 under
12.000 under 120oo 13:000::
13,0 ,4 under
under 1' 5'=;:
110 l&
undar
17 000 under 18.000
Woo Under 19,0w::
19,000 under 20.000.,
20.0ce.
50 60 645111
$10
17
22
27
32
37
42
41
52
57
62
67
72
77
82
07
992 7
99
$11 19
24
so
35
40
46
51
59
62
67
73
78
83
89
94
99
106
107
Example 2--A9sume the Same facts
except that your Income was $5ZSOO.
Ship L Ohio sales tax table-419,999
. Incom-4amily sh 5 . . .
Stop Z Figure this stop as follow
$49,999-11119.999-S30,001)
$30,000~1.00G=30
.02x$184.00-$3.68
$184.010
.30X$3.68= . . . . . . 1IOAO
Shap& Figure this step as follows:
$52_W-li49X9=JZsa1
$Z5OI.I.0W=2.5O1 or 3
Olx$184M=$IM
3X$134-
Ohio salestax deduction an In-
-5.52
=6 Of $SZSOO for fafflily
of 5 . . . . . .. . . sm
if your records show that you paid
more sales tax than the amount sham
In the table, you can deduct the larger
amount and not use the table. If you do
not use the table, you-can deduct the
following taxes:
(1) General State or local safes taxes
you Paid when you bought Items.
(2) General State of local sales taxes
the seller paid If seller allted the tax
separately from the price of the Item
but Included It In the Wtal amount you
paid.
State Gasoline Tax Table
to deduct for the number of miles you
drove Your Cat. If your car had 4 cylinders
or less. you may deduct only half the table
amount If the rate for your Ste% changed
during 1977,'find your deduction for the
711t
$12
20
25
32
38
43
49
55
61
67
72
78
84
90
95
101
107.
X13
116
Minnesota 90
Mississ ppi 90
MI-d 7if
Montrove 7.750
(aftel, June 30. SA
Nebraska 8.50
(after July 31, 940)
Norads 60
No. Hampshire 90
(~July 31, 100)
New Jersey So
New Maides 70
7.50
$12
22
2B
34
40
47
53
fig
ds
71
77
84
90
96
102
108
1116
12
124
TAX RATE
7.750
MI
29
35
42
48
54
61
67
74,
so
85,
93
99
106
112
11
125 a
128'
09
$2133
so
36
43
50
56
as
69
76
as
89
96
102
109 1
16
122
129
132
8.50
$14
25
32
39
46
53
60
67
74
OR
so
95
02
109 ,
is
123
1330 1
7
141
- V) Certain State or local selective
sales or excise taxes If the rates were
the same as the general sales tax rates.
Personal property taxes. If part of the
amount you paid for your car top was
based on the car's value, you can deduct
that part as a personal property tox.
If you need more Information, please
contact an IRS office.
f you had any deductible tax not listed
on' Schedule A. lines 11 through 15 (such
as foreign income tax), describe the tax
and show the amount on line 16.
You should use Schedules C, E, or F
(Form 1040) to deduct business Federal
taxes or other taxes paid for your business
or profession.
Do Nat Deduct.-
Federal social security.tax, Federal excise
taxes on Your Personal goods or for
tronfsrrtation, r telephone, or gasoline.
Fees hunting and dog lk:64es; car,
inspection, or drivers' licenses. .
Taxes you Paid for another person water
. taxes, or toxin on liquor, beer, wine, CISareftes,
and tobacco. ,
Selective miss or excise taxes (such as
those on admissions. room rental, etc.)
even if they are separately stated.
(if these taxes are St the same rate as
the general sales tax and you do not use
the sales tax tables, you can deduct
them as explained above.)
(Continued on page 1S,)
miles you drove at each rate, and add the
amounts. ,
it your records show that you paid more
then the amount shown In the,table. you
can deduct the larger amount r
NOW York 80
North Carolina 90
North Dakota 71!
(after June 30. 80)
Oldo 70
Oklahoma 658f
idea deduction for 630
Oregon 70
Pennsylvania 99
Rhode federal 10III
South Carolina So
(aftrJuni,30,90Y
90 9.50 100
SM 26
23
41
48
56
63
71
78
86
93
100
108
115
123
130
138
145
149
$16
27
as
43
at
59
67
75
$17
29
37
46
54
62
82
90
98
206
114
97
195 1
03
112 20
122
130
137
145
253
128
so
145
161 13
157 165
110
South Dakota 80
Tennessee, 7$
Tan 591
=
Virginia go
Washington 90
(dfw June 30, 110)
West Virginia 8.31!
Wisconsin 70
Wyoming as
%is
41
50
69
fig
H-busliness
miles driven
under 3dgW,
3 OOD
4'.WO Under
to
1:8.1 , 0 under
7 under
6.000
7,000
8.0 9'. - uun** der' HV
ndet, 10,000
20000 under 11400
'1:2 lz " U;rd:r'11
13 I OGO under 14.6
4:003 under 15~~
15,000 ..d.r 16.000
16.000 1 under 17.000
17,000 on r 18,ODO
" 1
-rdar 95
105 1
4123 14,
32
141
ISO
159 1
168
77
19 000
19,000 under WOW
182 2c.000-
-For ower 20,000 miles, uw!41bla amounts for total miles drhnim. For eiiample, for 25,000 mllev~ add the deduction for 5,000 to the deduction for 20,000 mileal.
1
Page 15
Taxes charged for sidewalks, front-fact
benefits, or other Improvements which
make your property more valuable.
Form 4952 for a definition of net lease
property and an explanation 'of excess
expenses.
services. If you gave property. attach b
description, show the date you gave It. and
(except for securities) how You figured Its
For Information about deductions home- These limitations do not apply to Inter. value. Also, for each gift valued at over
owners can take, please get Publicatloh
588, Tax Information on Condominiums
est on investment Indebtedness incurred
before December 17, 1969.
$200 and each gift of capital gain or ordi.
nary Income property:
and Cooperative Apartments and Publica.
tion 530, Tax Information for Homeowners.
Intered EVense
You should show on Schedule A only
Interest om nonbusiness items. Show In.
terest paid on business items on the semi
schedule you use to report your business
Income.
Generally, a cash basis taxpayer who in
1977 prepaid interest allocable 'to any
period after 1977. can only deduct the
amount allocable to 1977. Please see
Publication 545, income Tax Deduction for
interest Expense.
You Can Deduct Interest Cn.~
Mortgage on your home.
Your personal note to a bank, credit union.
or person, for money you borrowed
Life insurance loan If the Interest is -paid
. In cash.
Taxes you paid late. the Interest.
If the taxes are theShow kindonly you can deduct.
enter them under the heading, Taxes.
Bank credit card plan. You can deduct the
finance charge as Interest If no part Is
for service charges, loan fees, credit
Investigation fees, etc.
Revolving charge
YOU may
dre=du1vc1tntghecfihnaarngc9eaccounts. chargeladdedflory0owurl
Do Not Deduct lideres On-
Ufa Insurance loan if the interest Is added
to the loan and you report on the cash
basis.
Money you borrowed to buy or carry taxexempt
securities or slngle~premlum life
Insurance.
For more Information on interest ex.
Penses, Please get Publication 545, Income
Tax Deduction for Interest Expense:
Contributions
You Can Deduct Oft To.-
Organizations operated for religious,
Charitable, educational, a lentific. or liter.
Sly Purposes, or to Prevent cruelty to animals
and children. These Include:
Churches (including assessments paid),
Salvation Army, Red Cron, CARE,
GoodwUl Industries, United Way, Boy
Scouts, Girl Scouts. Boys Club of Amerl.
ce, and similar organize Ions.
Fraternal organizations (if tthe
gifts will be
used for the above purposes) and cer.
tain cultural and veterans' organiza.
tions.
Governmental agencies that will use the
gift exclusively for public purposes, int
cluding civil defense.
Nonprofit schools. hospitals, and organiza.
tions whose main Purpose Is to find a
(1) Explain any conditionis attached to
the gift.
(2) Tell how you got the property.
(3) Show the cost or other basis of the
property if you owned It less than
five years, or if you must reduce
the contribution by any ordinary In.
come or capital gain that would
have resulted if the property had
been Sold at Its fair market value,
and
(4) Attach a signed copy of any ap.
PrOisal. If you elect to reduce
Your deduction for contributions of
capital gain Property, Indicate this
and show-how you figured it.
Generally, you cannot take a deduction
for a transfer of a future interest In tongible
personal proparty until the entire in.
terest has been transferred.
areSpecial MISS'aPply if your contributions
more
than 20 Percent of Form 1p4o.
line 31, or if you gave gifts of appreciated
property, made bargain sales to charity,
or gave gifts Of the use of (or rent-free use
of) Property. For additional Information,
please get Publication 526, Income Tax
Deduction for Contributions.
. I
CaWaRy or Theft Lossas
you had property that was stolen or
damaged by fire, Storm, car accident ship.
stores if the charges cou based on your
unpaid balance and .8 re figured monthly.
Personal property (cars, televisions, etc.),
. cure for (of to help people who have)
arthritis, asthma, birth defects, cancer.
cerebral palsy, cystic fibrosis, heart disease;
diabetes, hemophilia, mental Ill.
wrif eck, etc., you may be able to deduct
your loss or part of It In general, Schedule
A can be used to report a casualty or theft
loss of property other than business prop.
that you buy on the Installment plan. ness and retardation, multiple sclerosis, arty.
Note: Special limitations apply to In. muscular dystrophy, tuberculosis. etc. The amount of a personal casualty or
terest expense paid or accrued on debts
related to investment property.
YOU Can Al Deduct-
Amounts you so paid for your gasoline and
theft loss you should enter on line 25 Is
generally the smaller of:
The limitation for Interest on investment
Indebtedness incurred after September 10,
1975 is the sum of (1) $10,000 ($S,ODO, if
married and filing separately), (2) a pro.
rated portion of net investment income
and (3) the excess expense from net lease
property.
The limitation for interest on investment
Indebtedness incurred before September
11, 1975, but after December 16, 1969.
is the total of (1) $25,000 ($12.500, If
married and filing Separately), (2) a pro.
rated portion of net investment Income,
(3) excess expenses from net lease proparty,
(4) net capital gain from investment
property. a9d (5) one~half the amount by
which the Investment Inte;Ost for this period
exceeds the total of ( through(4).
Report the nonbusiness portion of the
allowable interest as an Itemized deduc
tion on Schedule A, line 19. Any Investment
interest not deducted because of
these limitations may be carried forward
to the following year and be subject to the
same limitations.
other expenses necessary to
your duties as a civil defense volunteer. carry out
(Do not deduct any amounts that were
repaid to you.)
Out-of-pocket expenses such as gas, oil,
etc to do volunteer work for char-
ItZle organizations. (Do not deduct any
amounts that were repaid to you.) in.
stead of figuring what you spent for
, gas and oil, you can take 7 cents a mile.
In some cases, amounts you spent to take
care of a student in your home under a
written agreement with a charitable or
educational Institution.
Do Not Deduct Gifts To-
Relatives, friends, or other persons.
Social clubs, labor u.nions, or chambers
of commerce.
Foreign organizations, organizations op.
elated for personal profit or organize
tions whose purpose Is to get people
to vote for new [am or changes in old
laws.
(1) The decrease In the fair market
. value of the property because of the
casualt~; or
(2) The cost of the property to you.
You must first reduce each loss by insurance
and other reimbursements paid
you Then you can claim only that part of
each' netloss that Is more than $IDO. If
YOU and your spouse Owned the property
jointly but file separate returns, you both
must subtract $100 from your part of the
lose.
It you had more than one casualty or
theft loss skip lines 25 through 28 of
Schedule A. Prep re a schedule using the
Information on lines a 25 through 29 for
each loss. Add th% n t losses and enter the
amount on Sch ula A, line 29. Write In
the margin to the right of line 29, "Mul.
Uple lossade. See attachment."
You may find Form 4684, Casualties and
Thefts, helpful In determining the amount
of your loss. If you fill out Form 4684, omit
lines 25 through 28 of Schedule A and an.
ter the loss from Form 4684 on Schedule A.
line 29.
Use Form 4952, Investment Interest Exparse
Deduction, to figure,the allowable
investment interest. You should also see
YOU may deduct what you gave in cash
(checks, nnoney orders. etc.) or property,
but do not deduct the value of your time or
For more information, please get PubficatiOn
547, Tax Information on Disasters,
Casualty Losses, and Thefts.
!Page-16

-MisceUneaus Deductions
Aftniony Paidid-You can now dea. &vnodic
payments of alimony or s;;Zata
maintenance, made under a court dacms,'
even If you do not itemize deductions. For
more Information, plum "a Instructions
for Form 1040, line 27, on page 11.
Union Dues.-You can deduct dues paid
to.unlons.
Business Use of Horne, Including Office
Usis.-GentersIfy, except for Interest, taxes,
and usually losses. no deduction will be
allowed for a dwelling unit that you used
for personal purposes during the taxable
year. However. if you used a part of your
dwelling exclusively on a regular basis In
connection with your employer's trade or
business and for your employees canvenience,
youmay deduct the expenses
allocable to that portion. If the use was
merely appropriatis and helpful, no disduc,
thin Is allowable.
Please sesit instructions for Schedule E
(Form 1040) for Information on deductions
allowable for rental on of a dwelling used
as a residence, Including vacation homes.
For more Information and the method of
computing the deduction. got Public&thin
587, Business Use of Your Home.
Contributions to Condlelabas for Public
OHIM*tr, thurnized Deduction.-YGui may
dalm an Itemized deduction on Schedule
A. or a tax credit onI Farm 104D, line 38,
but you cannot claim both, for contribu.
tions to candidates for public office and
political committees and newsletter funds
of candidates and elected public officials.
if you elect to claim an itemized cieduc.
tion on Schedule A. the amount of the de.
duction entered may not be more then
$100 ($200 If you are married and I'lle a
joint return). You should write "political
Gambling losses, but only up to the
amount you won and reported on Form
1040, line 20.
Cost of safety equipment. small tools, and
supplies used In your job.
Dun to professional organizations and
chambers of commerce.
Certain costs of business entertainment,
subject to limitations and reporting and
substantiation requirements.
Fees'yous paid to employment agencies to
get a job.
Necessary expenses connected with pro.
ducing or collecting Incomeor for managing
or protecting property~ held for
producing income.
Instructions for Schedule B (Form 1040)
If you are required to use Part I or Part 11
,or if you had a foreign account or were a
grantor of, or a transferer to, a foreign trust you
must answer both questions In Part III.
PART I.-4nterest Income
It you receive more then $W In Interest you
most complete Part I of Schedule 0 and answer
me questions in Part Ill.
Une 1-4merest Incerne-ust the names
of all payers and amounts received In
Schedulp B, line 1.
Report any Interest you recalved or
which was credited to your account SO, you
could withdraw It. (it did not have to be
entered In your passbook.)
.Include Interest an Me Follovering,-
Accounts with banks. credit unions,
savings and loan associations, etc.
Tax refunds.
Notes and loans.
Bonds and deberstures. Also arbitrage
bonds Issued after October 9, 1969, by
State and local governments, But do not
report Interest an other State and munk>
filed bonds and securities. If you hold carporate
bonds or allm notes of debt ortarl.
contribution" an line 31 nod to the amount NOW. It you work for wages or a salary,
of the contribution. Sea Instructions for you should Include, on Schedule A. any
Form 1040, line 38, on page 22. . employee business expenses you did not
Expenses for Education.-The rules for claim on Form 1040, tine 23;
reporting educational expenses are the On, Not Deduct the Cost Of going to
same as those on page 10 for Employee and from work or entertaining friends.
Business Expenses,
If you need mom Information, please got
You Can Generally Deduct Expenses for.- Publication 529. Miscellaneous Deductions
Education that helps you keep up or Im- and Credits.
prove skills you must have In your preserd
job, trade or business. . Summary of Itemized Deductions
Education that your employer salcl4cu
must have, or the law or regulations say
you must have, to keep your present
salary or job.
Please enter the total of eactigroup of
Itemized deductions on the appropriate
lines 33 through 38 and add the amounts
an line 39. 1
Not Deduct Education Experises for.- Enter the zero bracket amount for your
Do Education that you need to meet the mint.
mum educational requirements for your
filing status on line 40. The zero bracket
amounts are:
job, trade, or business.
$3,200. If you arg married filing a joint
Education that Is part of a mume of study return or a qualifying widow(er) with
that will lead to your getting a now trade dependent child,
or business.
$2.200 If you are single or an unmarried
You Can Also Deduct Several Other Ignite head of household, and
of Miscellaneous Expemn Such As: $1,600 if you are married- filing sepa.
nately.
rally Issued at a discount after.May 27,
1969, you have to Include a certain part
of the discount for the part of the year
You hold the bond or note.
U.S. Savings Bondi. The yearly Increase
In the value of a bond Is Interest
You can report Interest on Series E
bonds In either of the following ways:
(1) You can report the interest when you
cash your bonds, or when the bonds reach
final maturity and no longer earn Interest.
. (2) You can report the yearly Increase
In all bonds on your return each year. You
can change to this way of reporting at any
time. But if you do so, yDu must report In
the first year you use this method the
entire increase in all bonds frons the date
they were issued. Then report the yearly
Increase each year afterwards.
For mom Information about Interest
Income, how tomiss figure fororiginal Issue bond
discount, and interest on Industrial
development bonds, plum get Puts.
lication-550. Tax Information on Investment
Income and Expenses. For unstated
Interest got Publication 537, Tax Information
on Installment and Deferred-Payment
Sales.
ImportanL-Although your Itemized de.
ductions are reduced by the zero bracket
arnount, you will receive the full benefit of
your Itemized deductions because the zero
bracket amount has been built into the tax
tables and tax rate schedules for you.
If line 39 Is more then line 40, subtract
line 40 from line 39 and enter the difference
on Schedule A. line 41. and on Form
1040, line 33.
If line 40 Is more than line 39, enter zero
on Schedule A, line 41, and on Form 1040,
line 33, unless you are required to itemize
deductions (see page 11 for Who Must
Itemize Deductions). I
PART U.-Dividends
If you received more thin $400 In sposs dMdends
and other distributions Oncluding capital
lizin dividends and norstarrable distributions), you
must complete Part 11 and amover the questions In
Part 111.
Line 3-0., Dividends and Other Distributions
on Stoick.-If you own stock, you
must report as dividends any, payments
you received out of the mmpany's~ earnings
and profits. Usually dividends are paid
In cash. But If you received merchandise or
other property, you have to report Its fair
market value.
If you received more than $400 in gross
dividends and other distributions (includ.
Ing capital gain dividends and nontaxable
distributions), list names of all payers and
amounts received in Schedule 8, line 3.
Please be sum to include amounts you received
through nominees or other agents.
List their names as payers. Also Include
amounts you received as a member of a
partnership or beneficiary of an estate or
trust
Do Hot Repast the Following its DIv1-dends-
Mutual Insurance company dividends
that reduce the premiums you pay. (rho"
are not Income.)
Page 17
Dividends paid by. savings and loan
associations, mutual savings banks, caciperative
banks, and credit unions. on
deposits or amounts from which you could
withdraw your money. (Report these as
Interest.)
For mom Information and special rules
for stock dividends, liquidations. stock
rights, conversions and redemption,
please get Publication 550, Tax Information
on Investment Income and Expenses.
Une 5-Capital Gain Distribut[Ons.-En*
ter on this line all capital gain distribu.
tions. The amounts Included on line 5 must
also be included in Schedule B, line 3' Also
see note above Part Ill of Schedule B.
Une &--No ntaxable Distributlons.-Enter
on this line the total of nontaxable distrusts-
, Instructions for Schedule D (Form
ihe 7ax Reform Act of 1976 increased the
holding period for long-term capital gains
and losses from 6 months to 9 months for 1977
and one year for 1978 and after.
For amounts received from an installment
sale, the holding period rule in effect in the
year of sale will determine the treatment of
the amounts received as long-term or shortterm
gain.
Gains and losses on agricultural commodity
futures contracts (but not options an futures
contracts) will retain the 6 month holding period
rule for long-term treatment
Under the Act, the limitation on capital losses
that can be used to offset other Income has been
increased from $1,000 to $2,000 for taxable
years beginning in 1977. The limitation will increase
to $3,000 for taxable years beginning
after December 31; 1977. (if you are married
and filing a separate return, the limitations
specified above must be reduced by one-half.)
A. Who Should File.-You should use
Schedule D (Form 1040) to report the Sale
or exchange of a capital asset as defined.
in Instruction B, below. In general, use
Form 4797, Supplemental Schedule of
Gains and Losses, instead of Schedule D
to report:
(1) the sale, exchange, or involuntary
conversion of trade or business property,
certain depreciable and amortizable property,
and certain oil and gas property;
(2) the involuntary conversion (for example,
a casualty or the ) of certain
capital assets; and
(3) the disposition of other noncapital
assets not mentioned in (1), above. If a
capital asset Is involuntarily converted (for
example, because of casualty or theft)
you may use Form 4684, Casualties and
Thefts, instead of completing Form 4797,
Part 1, Section A, You can get these forms
from any Internal Revenue Service office.
B, What Is a Capital Asset.-Genemily,
all property you own and use for persona
purposes, pleasure, or investment is a cap.
ital asset. Some examples are: the home
you Own and live in with your family, your
household furnishings, a car used for
pleasure, and stocks or bonds held in your
personal account.
Pap 18
tions (return of capital). Any amount entered
on line 6 must also be Included In
Schedule B, line 3.
You must reduce your investment cost
(or other basis) by the amount of nontaxable
distributions received. Amounts re,
calved after your cost (or other basis) has
been reduced to zem will be taxed as
gains. These gains Must be included an
line 5 instead of line 6 and also reported
on Schedule D (Form 1040).
Nomine".-
If you received interest or dividends as
the nominee for another person and paid
such amounts to the actual income recipients,
please show the amount you received.
as a nominee In the bottom margin of
Schedule B and write "Nominee amounts."
1040)
A capital asset as defined by law is any
piece of property held by a taxpayer except:
(1) stock in trade;
(2) real or personal property includible
in Inventory;
'(3) real or personal propert~ held for
sale to customers;
(4) accounts or notes receivable acquired
In the ordinary course of a trade
or business for services rendered, or from
the sale of any of the properties described
in (1), (2), or (3), or for services rendered
as an employee;
(5) depreciable property used In a
trade or business men though fully de.
preciated;
(6) real property used in a trade of
businesi:,
(7) a copyright. literary, musical or
artistic composition, letter, or memoran.
dum, or similar property-(a) created by
a taxpayer's personal efforts; (b) prepared
or produced for a taxpayer. in the case of a
letter, memorandum, or similar Property;
or (c) if acquired from a taxpayer cle,
scribed in (a) or (b) under circumstances
entitling a taxpayer to the basis of the pre.
ceding owner (for example, by gift):
(8) a publication of the U.S. Govern,
ment (including the Congressional Record)
which is received from the U.S. Govern.
ment or an agency thereof, other than by
purchase at the price at which it is offered
for sale to the public, and which Is held
by-(a) a taxpayer who so received such
publication, or (b) a taxpayer In whose
hands the basis of such publication is de.
termined, for purposes of determining gain
from a sale or exchange. in whole or in
part by reference to the basis of such publication
in the hands of a taxpayer described
in (a); and
(9) certain government obligations issued
at a discount on or after March 1,
1941, payable without Interest, and matul
Ing at a fixed date not exceeding one year
from the date of issue.
C. Transfer of Appreciated Property to
a Political Organization.-If you transfer
property to a political organization and at
the time of the transfer the fair market
value of the property exceeds your adjusted
basis. you.must treat this tmnsac-
PART Ill.-Foreign Accounts
and Foreign Trusts
be You Have an Account In a Foreign
Country or Were You a Grantor of, Or
Transforcur to, a Foreign'Trust?
If at my time during 1977, you had an
Interest In or IsIgnature or other authority
over a bank account. Securities; account.
or other financial account In a foreign
country Or were a grantor of, or trans.
feror to a foreign trust, which trust was in
being during the taxable year, you must
check the appropriate Yes taxies). (if you
own more than 50 percent of the stock in
any corporation that owns one or more
foreign bank accounts, you must check the
Yes box for question 1.)
See the Instructions on page 3 for addi.
tional requirements.
tion of property on the date of
transfer. as a You saleshould report the fair market
value of the property at the time of
transfer as the Sales price. Ordinary Income
or capital gains provisions will apply
as if a sale actually occurred.
D. Exchange of "Like fund" Property-
Alth ough no gain or loss Is recognized
when property held for productive use In
trade or business or for Investment Is
exchanged solely for property of a "like
kind" to be held either for productive use
in trade or business or foi~ Investment. you
must report the transaction on Schedule D
or Form 4797, whichever. Is applicable.
(This does not Include property that IS
stock In trade or other property held pri.
marily for sale, nor stocks, bonds, notes,
chases In action, certificates of trust or
beneficial Interest, or other Securities or
evidences of indebtedness or Interest.)
If you use Schedule D, you should
identify the property disposed of in
umn a. Enter the date you acquiredcal it
in column Is and the date of exchange In
column c. Write "like kind exchange"
in column d and enter the adjusted basis
in column a. Enter zero in column I.
E. Sale or Exchange of Capital Assets
Held for Personal Use.-Gain from the
sale or exchange Of Such property is a
capital gain and should be reported either
in SalePart I or rt 11. However, loss from the
or exchange Pa of such property (but not
necessarily involuntary conversions such
as by casualty or theft) is not deductible.
F. Cost or Other Basis, as Adjusted-
In general, this means cost (or other basis
as explained in the next paragraph), less
applicable depreciation (allowed or allow.
able), amortization, depletion, etc.
You may need to use a basis other than
actual cash cost if you acquired the proparty
by bequest, gift, tax-free exchange.
involuntary conversion, or wash sale of
stock. If you do not use actual cash cost,
please attach an explanation of the basis
used.
The basis of property acquired by gifts
made before January 1, 1977, generally is
the basis of the property In the hands Of
the donor plus any gift taxes paid on the
gift. For gifts made after December 31.
1976, only the gift tax attributable to the
appreciation In value at the time of the gift
is added to the basis of the property in the
full

hands of the donor. (Please see section
1015.)
The basis of property acquired from or
passing from a decedent will generally be
the fair market value it the date of death
if the decedent died before January 1,
1977. In general, the basis of carryover
basis property acquired from or passing
from a decedent who died after Decem.
bar 31, .1976, Is the decedent's basis
immediately before his or her death. ad.
justed for certain items such as Federal
and State estate taxes paid by the estate
attributable to the appreciation In the
property. (Please see section 1023.)
It a charitable contribution deduction Is
allowed because of a sale of property to a
charitable organization, the adjusted basis
for determining gain from the sale Is an
to 1978, if you have a capital loss for 1977 Form 4962, line 27, (b) the amount on
that Is greater than the loss deducted on Schedule 0, line 13 (or Form 4798, Part I,
your 1977 Farm 1040, line 14. Please keep line 6). or (c) the amount on Schedule D,
this information to help you In filing your line 14 (or Form 4798, Part 1, line 7). You
1978 Schedule D (Form 1040). should enter this amount In the margin to
If you haw a capital loss carryover from the right of Schedule D, line 13 (or Form
years beginning before 1970, or a com- 4798, " Part 1, line 6), and. Identify it as
From Form 4952."
bination of pro-1970 and post'11969 capital
losses, you should: (1) complete Parts I Before determining the capital gain de,
and 11 of Schedule 0 (Form 1040) through duction on Schedule D, line 15a (or Form
line 13 to report current transactions and 4798, Part 1. line 8(a)), or the Alternative
the amount, if any. of post-1969 capital Tax in Schedule D, Part IV, you must do-
amount which is in the same ratio tothe
adjusted basis market as value the amount realized Is
to the fair the property. ,
For additional Information,. of please get
Publication 551, Tax Information on Cost
or Other Basis of Assets.
G..Short-term or Long-term . loss carryovers, and (2) carry the amounts, creage the gains on Schedule D, lines 13
If any, from Schedule D, lines S and 13,
Form 4798, Carryover of to
and 14 (or Form 4798, Part 1, lines 6 and
When you
sell or exchange a capital asset you will
have either a short-term or a long-term
capital gain or loss, depending on how long
you held the property. (Please see Instruc.
tion H.)
If you hold the property 9 months or
law, the gain or loss is short-term and you
should report it In Part 1.
Pre.1970
Capital
Losses, Part 1, to determine your capital
7) by the amount treated as ordinary in.
come. You should enter the amount treated
gain or loss, and your capital loss limita.
tion for 1977 if you have a net capital loss
as an ordinary gain (shown In the, margin)
on Form 4797, Part 11, line 8, or If you do
for -the year. You should also use Form not Use Form 4797 for other tranilactions,
4798 to deiarmine the amount, If any, of
capital loss carryovers from 1977 to 1978
if the losses include pre-1970 loss carry.,
overs. Please be sum to keep a copy of
your 1977 Form 4798 to help you In filing
your Schedule D (Form 2040) and Form
4798 (if applicable) for 1978.
J. "Taxable Income, as Adjusbad-1-
A separate calculation may be needed to
enter the gain on your Form 1040, line 16,
and identify it as "From Form 4952."
L Installment Sales.-If you sold per6
sonal property for mom than $1,00% or
real property for any amount, you may ~e
eligible to use the Installment method to
report any gain If.- (1) them are no pay.
ments In the year of sale or (2) the pay.
ments determine "taxable income, as adjusted."
This calculation is made follows: Dotermine
Tax Table Income as(Form
1040,
In the year of sale do not exceed 30
percent of the selling price. 'the win
must provide for one or more payments In
each of two or more taxable years. .
line 34) without regard to. gains or losses For the treatment of a part of the pay.
from sales or exchanges of capital assets. ments as "unstated Interest," an.install.
Reduce that amount (but not below zero) ment sale workshed, and other Informs.
If You held the property by: (1) $2,200 If filing as a single person tion; Please get Publication 537,,Tax In.
mom than 9
I ,
months, tho'gain or loss is long-temn and . or an unmaue head of household, (2) -motion an Installment and Deferredyou
should report it In.Part 11. $3,200 if mauled filing jointly or a quail. Payment Sales, from any Internal Revenue.
'I id : I
A nonbusinew bad debt Is usually
treated as a short-term capital low. This
does not apply to: (1) a debt evidenced
by a corporate security with Interest cou.
Pons or In registered form and (2) a debt
acquired In your trade or business. .
H. Holding Period-To determine
whether you hold property over 9 months,
you should begin counting on the day
3fter the day you acquired the property.
aThe
n same day of each following month Is
the beginning of a now month, regardless
of the number of days in the month before.
In your computation, include the day you
disposed of the property. For special.rules
on nontaxable exchanges. gifts of proparty,
property you inherited or that was willed to
yl please got Pubilution.5441 Sales and
Oth r Dispositions of Assets.
I. Capital Loss Carryover.-You will
have a capital loss to carry to,1977 If the
amount of your 1976 Schedule Dffornn
1040), line 16a (or your 1976 Foun 4796,~
Part IV, line 9(a) or 26); Is larger than the
capital loss you deducted from income on
your 1976 Form 1040, line 30a. The
amount of any capital loss canyover to
.2977 should be reflected In the space pro.
vided an your 1976 Schedule D (Form
1040), page 2.
If you do nut have a capital linesloss 4 a;adrryj
1
over to 1977 you can skip
on your 1977 Schedule D (Form 1040). (or 'Form 4798, Part 1 1, lines 6 and 7) show (1) within 18 month; after or before the
If you have a capital loss caffyov#r from a gain, tImn. part or all of the arnrunt of
Year$ beginning aftor 1969, you should Captal gains used an Form 4952. line 27, "[a' you Purchase an=r I
principalri
dance and use It as such; or
enter the amount($) of, YA I be treated
your 197,7 Sched.
as ordinary Income for puruls
0, lines 4 and 12. Use Part V of your . poses of determining the 50 percent capital (2). before the sale or within 18 months
.2977 Schedule 0 to compt ' gain deduction or the site I ng w ow(er) w It dependent child, or Service office.
(3) $1.600 if married filing separately. M.'Capitall Gain Distrlbutions.~-See the
However: you. can skip this separate, Instructions for Schedule B (Form 1040)
computation If you know you have mom on page 18.
than $2,000 of tax table Income (~2,000 If N. Special Rules-The following items
married and.filing a separate return) after - may require special treatment (1) transexcluding:
(1) gains or losses from the actions by a sepurities'dealer, (2) wash
sales and exchanges of capital assets, and miss of stock or securities, (3) bonds and
(2) your zero bracket amount of $2,200, other evidences of Indebtedness If original
$3,200, or $1,600, depending on your filing Issue discount Is a factor, (4) certain mat
status.
I
property subdivided for sale which may be
If a separate computation Is not re, considered i capital asset (5) distributions
quired, enter on line 16b the Ion shown on received attributable to an employee pen..
line 16a, but not more then $2,000 slon, profit-sharing, or stock bonus plan
($1,000 if married and filing a separate (please see Form 4972 or Form 5544),
return). (6) gain on the sale of depreciable propi-
IL Investryient Interest Expense Deduc. any between husband and wife or betwee
tion AdJustment.-Mohn These rules also shareholder and a "controlled corporation"
apply it you use Form 4798 to report a treated as ordinary gain, (7) gain an dispo.
pro-1 $70 capital loss carrydver as indicated sition of stock In a domestic International
in instruction 1). sales corporation, (8) gain or loss on op-
If Schedule D, line 13 (or Form 4798, tions to buy or. sell, Including closing
Part I line 6) Is blank or.If line 13 or line transactions, (9) transfer of property to a
14 (or Form 4798, Part 1, line 6 or line 7) foreign corporation as paid-in surplus or
shows a loss, please s1kip the rest of as a contribution to capital, a; to a foreign
Instruction K
trust or partnership, and (10) the transfer
If you haw Investment Interest expense of
motive capital after the sale. you begin construction of a
Ito the amount, gain tax. The amount treated rdinary new Principal residence and use It is such
If any, Of capital loss c4uyOvOr 11man -1977 Income lo'fMo lower Of, (a) the arnount on ., at tater.than two years the safe.
property to a partnership which would
of more than $10,000 ($5,ODO If married be. treated as an investment company if
filing, separately), the -amount of that the partnership were Incorporated.
Interest that you can deduct could be 0. Sale of Persons] Residence-Tax an
limited. Please see Form,4952 for details. part, or all. of the gain from the sale
It them Is an entry on Form 4952, line 27; of your principal residence must be do,*
and on Schedule D both line 13 and 14 forred If: - .
I
Page 191
if you sold your home for $35.- Or
less on or after your 65th birthday, and
you owned and used It as yourprincipal
residence for at least five of the last eight
years, any gain on the sala need not be
Included In Income. If.the Property was
sold for more than $35.ODD, you may have
to report part of the gain as income. .
Form 2119 may be Used to report the
sale of your personal residence if you pur.
chase a qualified replacement residence.
or are 65 or older. Please get Publication
523,.Tax Information on Selling or Purchasing
Your Home. .
P. Los . sea In Transactions Between Cartaln
Persons-A deduction is not allowed
for a loss from the sale or exchange of
property directly or Indirectly between: (1)
members of a family; (2) a corporation
and an Individual or a fiduciary owning
more than So percent of the corporation's
stock (liquidations excepted); (3) a
gmntor and fiduciary of a trust; (4) a
fiduciary and a beneficiary of the same
trust; (5) a fiduciary and a fiduciary or
beneficiary of another trust created by the
some grantor (6) an Individual and a tax-
exempt organization controlled by the Individual
or the Individual's family: or (7)
a partnership and a partner owning, dlrectly
or Indirectly, mom than 50 percent
of the capital interest or profits Interest
in the partnership (other than a sale or
exchange of an Interest in the partner
ship).
9. Long-t" Capitol Gains from Re9w
lated Investment Companies.-You should
include In Income as A long-term capital
gain the amount shown on Form 2439 that
constitutes your share of the undistributed
capital gains of a regulated investment
company. Enter the tax paid by the company
as shown on Form 2439 on Form
1040, line 61. Add to the basis of your
stock the excess of the amount included
in'income over the credit.
R. Losses an Small Bushlow Stock.-
Subject to limitations, you.ma~ deduct the
loss on the sale. exchange, or worthlessness
of Small Business (section 12")
stock as an ordinary loss. rather than as a
capital loss.
S. Alternative Tax Computation-it
Instructions for Schedule E (Form 1040)
PMT I.-Pension and
Annuity Income
General flute for Annultles.-Genemlly,
amounts you recolved from annuities and
nuity cost unless you were previously taxed
on it.) After you recover your cost. all
amounts you receive am fully taxable. This
method of figuring taxable Income also ep-
plies to th~ employee's beneficiary If the
pensions am Included In your income In
an amount that Is figured on your life ex.
pectancy. You may find this computation
employee dies before receiving any annuity
or pension payments.
Example: An employee received $200 a
and your life expectancy multiple In the month from an annuity. While working the
income tax regulations covering annuities
and pensions. I
Once you figure the excludable
employee contributed $4,925 toward the
cost of the annuity. The employer also
. (3) you were permanently and totally
disabled at the time of your retirement (or
were parmanently-and totally disabled an
January 1, 1976. or January 1. 1977 If you
retired before the later date on.disablilty or
under circumstances which entitled you to
retire on disability), and
(4) you have not mode the irrevocable
election not to claim the disability income
exclusion (discussed below).
If you,meat these four conditions, you -
amount
for a -full year, it does not change M you
will not have to refigure the amount to
exclude each full year. In making this computation,
yop can got help from the Internal
Revenue Service as wall as from the payer
:of the annuity or pension.
Special Rule for Certain Types of Emgilloyees'
Annuities-A special rule applies
for amounts received as employees' an.
nultres if (1) the employer contributed part
of the cost and (2) you will get back the
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 fimi three years, which
exceeds the employee!s contribution of
$4,925. The employee would exclude from
Income all the payments received as an.,
annuity until $4,925 is received. All pay-..
ments received afterward are fully taxable.
Note: It you did not contribute to the
cost, of your annuity or you recovered your
entire cost before January 1, 1977, you
should report your disability pension or
ann~lty payments received during the tax.
able year. on Form 1040, line 8 (except
for amounts received for.parlods after
mandatory retirement age). In addition,'
please enter on Form 1040. line 30 any
part of your disability payments. that Is
eligible for the disability Income exclusion
from periods before the date an which you
reach 'mandatory retirement age. At the
earlier of the beginning of the taxable year
In which you reach age 65 or the date on
which you you reach mandatory retirement age,
will begin to report the disability pay.
amount you contributed within three years should report your annuity on Form 1040, ments under an applicable pension or an.
from the date of the first payment you
receive under the contract. If both these
line 17 Instead of on Schedule E. (Do this
even it you received a Form W-2P.) -
.nulty rule.
you do not most all of the above con.
ciinditionat am met you can exclude from . Death Benefit Excluslan-4f you receive ditions, if the amou nta you receive are not
Income the payments you receive under pension or annuity payments.as a bene. eligible for'the disability Income exclusion.
the contract during the first three years, ficiary of a deceased employee and the In addition; If you.do not meet condition
until you recover your cost Your cost is employee received no mUrement pension I or 2, the amount you receive should be,
the amount you contributed, Plus the con. or annuity payments, you may be entitled reported under an applicable pension or
Arlbutions your'employer made on which * to a death benefit exclusion of up to annuity rule. If any of these amounts are
you were previously taxed. Note: it you (1),$5,000. For more Information please get excludable as a recovery of your contribu-
filed your 1976 tax return on which you Publication 575, Tax lnforma~on on Pon. tion. enter the 'total amount on line 3.
began to recover your pension or annuity slon and Annuity Income.
Schedule L and the excludable portion on
cost, and (2) later learned that,you could
he" excluded your pension or annuity
Disability Ponsim and Annuity Paympnlhi.-:~If
you meet all the following oor~
line 4. If none of the amounts are excludable
as a recovery of your contribution.
payments under the sick-pay exclusion
rules; but (3) were advised not to file an
Micro, may-be eligible td, claim the
disabilityYouIncome exclusion (sick pay)
enter the total amount an line 17 of Form
1040. Sao discussion below for details M.
amended return and claim the sick-pay (please sea Instructions for line 30, page garding election referred to In condition 4.
exclusion due to no'chango in your 1976 11, and for Form 2440, Disability Income'. If you meet all the conditions except con.
I
tax liability, then (4J you should add to
the cost of your pension or annuity on
Exclusion (Sick Pay)):
(1) you have not reached age 65 at the
dMon ' 3, report an line 8, Form 1040 all of
the disability payments received for periods
your -1977 tax return the cost recovered end of the taxable year.
prior to the date on which you reach minV
on your ortg1hat 1976 tax return. (Cou- (2) you have not reached mandatory re, mum retirement age. Amounts received for
donDo not add interest showo . as timment age at thai beginnLni'of the tax- periods thereafter will be treated under an
earnod an your contributions to your an. able year,
applicable perodon or annuity rule (seethe
Page 201
may be to your advantage to use the alternative
tax If the not long-term capital gain
exceeds the not short-term capital lose, or
if there Is a not long-term capital gain only,
and you are filing: (1) as a single person
.or unmarried head of household with tax.
able Income over $40.200: (2) a joint re.
turn, or as a qualifying widow(ar).vdth do:
pendent child, with taxable Income over
$55.200; or (3) a separate return from
your spouse and you have taxable Income
over $27,600.
If the net long-temn capital gain exceeds
the not short-term capital loss, or If there
!a only a not long-term capital gain, you
should figure the tax using the alternative
method to determine If the resulting tax
Is less then the tax computed using the,
regular method.
For additional information about many
of the Items discussed In these Instructions,
please get Publication 544, Sales and
Other Dispositions of Assets, or Public&-
Ban 550, Tax'Information on Investment
Income and Expenses, from any Internal
Revenue Service off!
Ca
in

preceding paragraph). Generally, minimum
rethement age Is the age at which you are
eligible to receive a pension or annuity
without regard to disability.
Mandatory retirement igis Is the age at
which It has been the practice of your
employer to terminate, because of ago,'
the services of the class of employees to.
which you belong. ,
Before the time you start to report your
disability payments under an applicable
pension or anquiry rule, you may not apply
any of your pension or annuity cost
against your disability payments. However,
If (1) you retired on disability before Janu-
Ory 1. 1977. and on December 31, 1975,
or December 31, 1976, were entitled to
exclude. any amount with respect to such
retirement disability payments from gross
income as sick pay, or (2) you are eligible
for the disability income exclusion, you
may make an irrevocable election not to
claim the disability exclusion. If
you make a valid income
innevoce ble election, you
should report your climbility, payments under
an applicable pension or annuity rule,
which allows you to gain part as ordinary income. Together
with the regular ordinary Income part of
the lump-sum distribution, you may figure
the tax on the distribution under a special
averaging math6d..For more Information,
please get Form 4972, Special 10-year
Averaging Method or Form 55", Multiple
Recipient Special 10-Year Averaging
Method, and separate Instructions.
apply your =at against
your climbility payments. The irrevocable
election Is applicable for the year of alsotion,
but may not be made for a year be.
fore 1976, and all following years.
To make the Irrevocable election, please
attach a statement to your tax return that
(1) states you elect not to claim the disabil.
ity Income. exclusion and will report your
disability payments under an applicable
pension or annuity rule. and (2) lists your
qualifications for making the election. It
you retired in 1977, you must also attach a
certificate from a qualified physician at.
testing to your total and permanent dis.
ability at the time of your retirement. You
may not make this election if you am a
disability retiree who retired after December
31, 1976, and whose disability payments
am not eligible for the disability
income exclusion.
Any amounts you receive before you ba,
gin to treat your disability annuity uld~er
'an applicable pension or annuity rule will
be earned income for purposes of line 2b of
Schedule RP and line I of the Earned In.
Credit Worksheet.
Came It you have begun treating your pension
Under an applicable pension or annuity
rule, any amounts received before you
reach minimum retirement age that am not
treated as a recovery of your contributions
am earned income for purposes of line 2b
of Schedule RP and line 1 of the Earned In.
Came Credit Worksheet. Any amounts received
after you reach minimum retirement
age to the extent included In your gross In.
come are retirement income for purposes
of Schedule RP and not earned income for
PART II.-Rent and
Royalty Income
Rent-4f you were not In the business
of selling real estate, but received rent
from property you own or control, report
the total on Schedule I, Part It, column
(b). If you received property as rent Instead
of money, report Its fair market
value.
You should report amounts received
from room rent and other space rentals In
this part, unless you also provided serv.
Ices to the person renting from you. If you
provided services, report the full amount
received as business income in Schedule
C (Form 1040). If you were In the business
of selling real estate, report rentals rectived
in Schedule C.
Except as provided below, you can doduct
depreciation expense for rental property
and all ordinary and necessary expenses;
such as taxes, interest repairs,
Insurance, agent's Commissions, mainte.
nance, and similar Items. Do not deduct
capital investments or improvements. You
should add these to the basis of the property
for the purpose of depreciation. For
example, a landlord can deduct the cost
of minor repairs, but not the
purposes of link 2b of Schedule RP.
Lump4um Distribution from Form
1099R-lf you received a lump-sum dis.
tribution from a profit,-sharing or retinsment
plan, you should report the taxable
amount paid as capital gain on Schedule
0 (Form 1040) and ordinary income on
Form 1040.
You may be eligible - to figure the tax on
the ordinary income part of your lump.
sum distribution under a special averaging
method. If you make an irrevocable elec.
tion, you may treat the long-term Capital
cost For iturther Information and for the
method of figuring the part of expenses
resulting from rental use, please get
Publication 53%
Homeowners.
Tax
I
Information for
Form 4831,,Rental Income, Is aniallable
at Internal Revenue Service offices, If you
want to use It as an attachment to your
return to report your rental Income and
of marf Major
improvements such as a new or
remodeling. Do not deduct the value of
your own labor.
If You Rent Part of Your House-If you
rent out only part of your property, you
can deduct only the part of your expenses
that relate to the.rented part. If you do not
know the exact amount of them expenses.
figure them on a proportionate. basis. For
example, if you rent out half of your home
and live in the other half, you should deduct
only half thi depreciation and other
expenses.
Rental of Dwelling Unit Also Used for
Personal Purposes (including Vacation
Home),You are limited the amount
of deductions resulting fromon the rental of
a dwelling unit, includingfor a vacation home,
if you use the dwelling personal purposes
more than the greater of 14 days or
10 percent of the number of days during
the year for which the dwelling unit was ac.
tually rented at a fair rental. The deduct.
this expenses resulting from the rental
of the unit am limited to the amount by
expenses. If you use Form 4831, please be
sum to carry over the net income or (low)
to Schedule E, One S. I .
Rental Income Based upon Farm Production
or Crop Shares-You should report
this income and related expenses on
Form 4835, Farm Rental Income and Expenses
and Summary of Gross Income
from Farming or Fishing, If you meet all
them tests: .
(1) You received rental Income based
on farm production or you received crop
shares based on the rental of all or part
of your crop land on a crop share basis.
(2) You did not, to any &mat exient
take part In managing or operating the
farm.
(3) Two~thirds of your gross Income
was from farming (fishing). Please we
note below.
If you use Form 4835. plasm be sure to
carry over the net farm rental profit or
(loss) to Schedule E, line 9. You should
report crop shares received only for the
ye r in which they am converted to money
or Its equivalent, such as merchandise or
property.
Note: For purposes of estimated ta)6
Income received from crop shares and
from rental based on farm production
(but not a fixed rental that Is not based on
farm production) Is considered to be thcome
from farming. You should addthis
Income shown on Form 4835, line 2Z to
your other income from farming (or fish.
Ing). If the total 1. at least tm,thlrds of
your gross income, the penalty for not
paying estimated tax will not apply if you
file your tax return and pay the tax on or
before March 1, 1978.
Royalties-You should report on Schedule
E, Part 11, column (c), royalties from
oil, gas or mineral propertles, copyrights.
and patents. If you hold an operating oil,
gas, or mineral Interest, report gross in.
come and expenses in Schedule C (Form
1040). Under certain circumstances, you
Can treat amounts received on the disposal
of coal and Iran ore as the sale of
a capital asset. For more Information,
please get Publication 544, Sales and Other
Dispositions of Assets.
It State or local taxes were withheld
from oil or gas payments you received,
which the gross rental income is greater
than the allowable deductions for interest,
you should report in column (c) the gross
amount of royalty, and include the taxes
taxes, and casualty losses that are allo.
cable to the rental use.
withheld by the producer in column
other expenses.
(a),
It the rental dwelling unit Is rented for It you are involved in leasing personal
less than 15 days, no deductions (other property, certain other tangible property
than interest, taxes and casualty losses other than buildings, an elevator or esca,
ble on Schedule A (Form 1040)) are lator, or other real property that Is or li~d
:::owead and you should not report the been subject to an allowance for deprecia.
rental income.
tion or amortization, any loss from the
A dwelling unit includes a house, apart- activity may not be greater than the total
ment, condominium, house trailer, boat or amount which you have "at rlse. In the
similar property.
activity at the close of the taxable year.
Page 21
PART Ill.--Partnemhips, etc.
Partmership-If you are.a. member of
a partnership, joint venture, or the like.
hould include on Schedule E. Part 111,
you at
your share of the ordinary income YO 11 sidered to be "st .poration which elected to have ft current
risk" ufor amthe ang=,y
con to the extent of the taxable Income taxed to Its stockholders.,
cash,and adjusted ty basis of other prop. you should 'report-
(whether
you received it or not) or the net loss for
the partnership taxable year which ends
during the year covered by your return or
on the same day as that covered by your
return. I .
In determining the loss to be reported
on your own return, you may not claim
your share of a partnership loss (including
capital loss) 0, that is in excess of the ad.
justed basis your interest in the partnership
at the end of the oartnership's taxable
year. In the case of liabilities incurred
after December 31, 1976, the adjusted
erty you contributed to the activity, as well
as any amounts borrowed for use In the
activity for which you are either personally
liable or have pledged property as security
(other than property used In the activity).
Additional information concerning "at
risW' limitations and a schedule of other
items of Income, deductions, credits, etc.,
to be carried to your individual return are
Contained on copy 8 of Schedule K-1
(Form 1065), Partner's Share of Income,
Credits, Deductions, etc.
As a partner, you must Include 'on
Schedule SE your distributive share of
partnership Income or (loss) train trio oper.
ation of a trade or business. This income
(1) Actual dividerid.clistributions (wheth.
er taxable as ordinary income or long-term
capitat'gain) as dividend Income In Sched.
ule 0 (Form 1040), Pak fl, line 3.
Subtract-from the actual dividend Metribution
the non-dividend (distribution of
previously taxed Income) part on Schadule
B, Part 11, line 6, and the long-term Cap.
Ito] gain portion on Schedule B, Part 11. line
5. Also Include the long-term capital gain
part on Schedule D, line 7.
(2) Constructive dividends~ reported to
you on Schedule K-1 (Form 1120S) tax.
able as ordinary Income (loss) an Schedule.
E, Part Ill.
basis of your interest in the partnership
(for determining limitations im losses)
generally any shall not include any portion of
partnership liability with respect to
which you have no personal liability. This
liability restriction does not apply if your
interest is in a partnership whose principal
activity is investing in real property, other
than mineral property.
(The dmount of a partner's distributive
share of a partnership loss that
partner is allowed to deduct in the cu the-
taxable year may also be limited by"'t the
"at risk" provisions discussed below.)
is considered as -not earnings from selfemployment.
For more information, please
get Publication 541, Tax Information on
Partnership Income and Lomas.
Estates and Trusts-if you are a beneficiary
of an estate or trust, you should
report your taxable part of its inc6me
whether you received it or not as follows:
Dividends from qualifying domestic corporations
an Schedule B (Form 1040),
Part 11, line 3. Note: It total dividends received
from all sources are $400 of low,
you may enter total. on Form 1040, line
10a, without itemizing,on Schedule B
(3) Constructive dividends reported to
you on Schedule K-1 -(Fonm 11209) taxable
as long-term capital gain on Schedule
D. line 10.
It you are a shareholder claiming a
deduction for a net operating loss, pleasoattach
to
Special '.'at risk" win apply in the case (Form 1040). .
of a partnership engaged in ithe activity Short-term capital gains 'on line 2,
of-
(1) holding, producing, or distributing
motion picture films or video tapes,
Schedule D (Form 1040).
Long-term Capital gains
Schedule D (Form 1040).
on line 9.
(2) farming (cultivation of land, or rais.
ing or harvesting of any agricultural
or horticultural com modity, including
the raising, shearing, feeding,
caring for, training, and rnanage~
ment of animals; however, trees
(other than train bearing fruit or
nuts) shall not be treated as an
Other taxable income less deductions
for depreciation and depletion and other
deductions on Schedule E, Pont 111. *
Please see Schedule K-1 (Form 1041) or
get information from the fiduciary about
these items. Include your share of Items
of tax preference on Form 4625agricultural
of horticultural com- A U.S. person who transferred property
modity),
to a foreign trust may have to include the.
(3) leasing personal property, and cartalln
other tangible property other
than buildings. an elevator orescalator,
or other real property that is
income resulting from the property in his
or her taxable income, if during 1977, the
trust had a U.S. beneficiary.
Income from Farming Reported in Part
or has been subject to an allowance
for depreciation or amortization.
(4) or
exploring for, or exploiting. oil and
gas resources,
as a trade or business or for the produc.
tion of income.
Your sham of any partnership loss from
ne of the above activities for the taxable
oyear
r may not be greater than the total
amount for which you are "at risk" for the
activity at the close of the partnership's
taxable year. Note: Any loss from such
activity not allowed for your 1976 taxable
year is treated as a deduction allocable to
Ill-If your gross income from fanning
(or fishing) 'is at least two-thirds of.your
gross income. the penalty for not paying
estimated to* will not.apply if you file your
tax return, and pay the-tax due, on or
before March 1, 1978.
If you are a member of a partnership or
If you am a beneficiary of an estate or
trust reporting income.from farming (or
fishing) on Schedule E, Part III, please
enter your share of partnership grow Income
or your part of fiduciary taxable In.
come from farming (or fishing) in Column
(d).
Small Business Corporatlions-If you
such activity for your 1977 taxable year. are a shareholder In a small business cor~
your return a Computation of the
adjusted basis of your stock In' the
poration and the adjusted basii of Cur, any
debt the corporation own you. Your not
operating loss deduction Is limited to that
amount.
Special "at risk" rules set forth under
Part M.-Partnership, etc., are arm applicable
to a small business corporation.
Please read these special "at risW' win
by inserting, "a small business corpora.
tion" hem "patrtnership" appears and
"shareholder" where "partner" appeam
Depreciation
You can deduct a reasonable allowance
for the exhaustion, mar and tear,
obsolescence of property used In a trade end
or business, or property held for the pYocluction
of income. The allowance-is not
allowed for, stock In trade, Inventortes,
land, and personal assets. Please see
Form 456Z Depreciation. for Information
on depreciation methods, limitations and
special rules.
Note: Your total additional allfirst-year sources
diapreciation
deduction from
Is
. limited to SZOOO ($4,000 It filing jointly)
Class Life Asset Depreciation Range
(CLADR) System and Class Ufa (CL) Sys.
to-If you figure depreciation by using
the Class Life Asset Depreciation Range
(CLADR) System for assets put in service
after December 31, 1970, you must file
Form 4832, Class Life Asset Depreciation
Range (CLADR) System. If you figure
depreciation by using the Class Life (CL)
System for assets put in service before
January,1, 1971, you do not have to file
a form. but you must keep the records
required by the regulations. For mom in.
formation, please get Publication 534, Tax
Information on Depreciation.
Instructions for Schedulie R (Form 1040)
Credit for the Elderly-
Individual(s) 65 or Over Having Any Type
of Income
if You am 65 or older and hue any type of In.
Page 22
mine, you may be able to take a credit against
year fix.
To determine your credit, you must me Schedule
R. Hommier, if you are married filing jointly elth
your spouse, one of you is 65 or older and the
other Is under 65 and be: public retirement Income
then you may tied to figure your credit under
Sch;3uls RP (Form 1040>-Cmdit for the Elderly
Individual(s) Under 65 Name Gross Income from
a Public Retirement System as a Result of His (Her)
Services or Services of His (Her) Deceased Spou

If you do not make this election you must figure the
credit under Schedule R.
Special Rules.- . -
(1) Married couples must file joint returns
to be eligible for the credit. No credit
Is allowed to a married couple who lived
together at any time during the taxable
year unless they file a joint return. However,
a rn~arried couple who did not live
together at any time during the taxable
year does not have to file a Joint return
to be eligible,for the credii.
.
(2) The credit is available regaraless of
work experience In earlier years. -
(3) No credit is allowed to a wiliestdent
alien unless the nonresident alien and
his or her spouse who Is a citizen or resi.
dent of the United States elect to be taxed
on their worldwide income and file a joint
return.
. Figuring the Credit-If you are having
IRS figure your tax and also want them to
figure your credit for the elderly, please
see page 4 of the Instructions.
If you am figuring the credit yourself,
you will need to read the following instruc.
tions. If you and your spouse are eligible
to make the election. noted previously,
read the Instructions and complete Schedule
R and Schedule RP to determine your
maximum credit. Fill in only one schedule
(either Schedule R or Schedule RP) and
file it with your return.
The maximum Initial - amount of Income
on which you can take the credit Is based
on your filing status and, if married, the
age of your spouse.
Instructions for Schedule RP (Form 1040)
Credit for the Muir-
Indlividual(s) Under 65 Having Gross I I ncome
from a Public Retirement System as
a Result of His (Her) Serylces or Services
of His (Her) Deceased Spouse '
If you am under 6S and he" gross Income from
a public retirement system msulting train your saw.
ices at services of your deceased ' r spause. you may
be able to take a credit against your tn.
To cletermin your credit you must use Schedule
RP. However, ? if you am ma= fiIIn,,.,oYn.1.1,hamf
ba
your spouse is 65 or older. u
elected to figure the credit under Schedule RP, you
must determine the credit by using Schedule R
(Form 1040)--Credif for the Elderly--indfuldual(s)
65 or Over Having Any Type at Income.
Special Rules.-
(1) Married couples must file joint no.
turnsto be eligible foithecredit. No credit
is allowed to a married couple who lived
together, at any time during the taxable
year unless they file a joint return. How,
ever, a married, couple who'did not live
together at any time during the taxable
year does not have to file a joint return
to be eligible forthe credit.
(2)'The credit is available regardless of
work quiperience in earlier years.
It laid are: I%-. for Credit I
(1) Pensions and annuities received
under the Social Security Act or Railroad
compatift it Retirement Acts. For social security pan-
Single (includes Unmarried Head
slon, enter the gross amount before deduc-
of Household and Qualifying tion of any amount withheld to pay medl-
Wldbw(er) With . dependent
cam insurance premiums.
child), 65 or over . . $2,500
Married filing jointly and only , .a,
spouse is 65 or over . . . . '2.500
. (2) Any other pensions and annuities
that are not taxed. Include the total
monthI9 payments you received from a
Married filing jointly and both
matured U.S. Government life Insurance result
spouses 65 or over . . . . 3,750 endowment contract that do not
Married filing a separate return,
or over, and have not lived with 65
your spouse at any time during
the taxable year . . . . . 1.875
from the cost of the contract. (Do not Include
supplemental, annuities under the;
Railroad Retirement Acts. military clisalillity
pensions, or any amount treated as a
From this amount you must subtract
(on lines 2a and b), certain exempt pen.
return of your cost.)
i
Do not Include on this line amounts
sions and annuities, and you may also
have to subtract a part of your adjusted
cluded from gross income : such as
amounts received under accident or health
,qross 1 income as shown on Form 1040, insurance plans or as compensation for'
no 31. The maximum amounts allowable injury or sickness.
as a credit are shown below, but the creditcannot
be more than the amount of tax Una 2b.-Show one-half of the excess
shown on Form 1040, line 37.
of your adjusted gross Income (Form 1040,
$375 (15 percent of $2,500) on a sep- line 31) over-..
arate return if single and 65 or overor $7,500 if single.
on a joint return where one spouse Is
65 or over.
$10,000 if filing a joint return.
$5,000 If married filing a sarplarate,re-,
$562.56 (15 percent of $3,750) on a
joint return If both spouses are 65 or
turn.
over.
Una 3-Add lines 28 and ti'and enter
$281.25 (15-percent of $1,875) on a total on line 3.
separate return If married. 65 or over,
and have not lived with your spouse
at a6y time during the taxable year.
Please figure your credit as follows:
Una 4.-Subtract line 3 from lineIand
enter the difference on line 4. (It Fine 3 Is
mom than line 1, enter zero an line 4.)
Check filing status and age box. Una 5 through 7-Complethis them
Una 1-Enter the Initial amount of In- lines as instructed on the schedule.
come for credit computation as instructed
on the schedule.
If you need more Information,'please get
Publication 524, Tax Credit for the Elderly~
Line 2a~Enter the follaNing pensions It gives examples of how to figure the credit
and annuities received during 1977. and also sample filled-in schedules.
(3) No credit Is allowed to a nonresident
alien unless the nonresident alien and his
or her spouse who is a citizen or resident
of the United States elect to be taxed on
their worldwide -lnmme and file a joint
return.
Figuring the crecift.-If you are having
IRS figure your tax and also want them to
figure your credit for the elderly, please
see page 4 of the instructions.
Af you are figuring the credit yourself,
please follow the instructions list".
Thi maximum amount of retirement4n.
come on Which you can take the credit Is
based on your filing status and, If married,
the age-of your spouse.
Then
If yen am:
computation Ic
Single (includes Unmairlad Head
of Household and Qualifying
widow(er) With dependent
child) under65. . . . . $2,500
Married filing jointly and one
spouse 65 or over (applicable
only If election made) . . . . 3.750
Married filing jointly and both
spouses under 65 . . . . 1. 3,750
Then your madmum
It you am: amount for credit
Married filing a separate rutum,
under 65, and have net lived
with your spouse at any time
during the taxable year . . ' . 1,875.
Note. The $3,750 must be divided between
you and your spouse on a joint return,
but no more than $2,500 may be altociated
to either.
From this amount you must subtract
certain exempt pensions and annuities and
you may also have to subtract 'a put of
your 1977'eamed income. The maximum
amounts 'allowed as a credit am shown
below, but the credit cannot be more than
the amount of tax.6hown on Form 1040,
line 37.
$375 (15 percent of $2,500) on a set)orate
return ifsingleana under 65.
$56Z5O (It percent of $3,75CD on a
joint return If one spouse is 65 or
over or on a joint return where both
spouses am under 65.
$281-25 (15 percent of $1,875) in a
separate return if married, under 65,
and have not lived with your spouse
at shy time during the taxable year.
Page 23
Phrase figure the credit al follows:
Planes, enter the name of the public retirement.
system of the spouse under 65.
If both you and your spouse are under 65
and receive public retirement system in.
come, please enter the name of the public
retirement system of both you and your
spouse. Please identify the public retire.
ment system received by the husband with
a (H) and the wife status with a (W).
Instructions for
Was 72 or older on January 1. 1978. do
not make an entry on this line for him or
her.
Earned Income Is wages, salaries, pmfessional
fees or other amounts received
as payment for work or services. A regular
annuity or pension is not named Income.
If you or your spouse was in a trade
or business in which both personal seivices
and capital were to a great extent in.
come-producing factors, you should con.
sider a reasonable amount (but not over
30 percent of your net profits) as earned
income.
Line 3.-Add lines 2a and b and
enter total on line 3.
Line 4.-Subtmct line 3 from line I and
enter the difference on line 4. (If line 3 is
more than line 1, enter zem on line 4.) If
the amount you entered on line 4 for col.
umn A or B Is more than zero, please complete
the rest of the schedule to figure your
credit. It both columns are zem or less
on line 4, you cannot take a credit for the
after you reached mandatory w
timment age.
(it) were not permanently and totally
disabled When you retired (and
were not permanently and totally
disabled on January 1. 1976 or
January 1, 1977. If You retired be.
fore the later date,on disability or
under circumstances. which en.
titled you to retire on disability), or
(III) have made a valid Irrevocable elec.
tion not to claim the disability in.
come exclusion.
Generally. minimum retirement ago is the
age at which you are eligible to receive a
pension or annuity without regard to dis.
ability. Mandatory retirement age is. the
age at which It has been the practice of
your employer to terminate, because of
Check filing and age box. By
checking the box for a married couple
filing a joint return where one spouse is
65 or over. you and your spouse elect to
figure your credit under Schedule RP.
Line I.-Enter the maximum amount of
retirement Income for credit computation
as instructed on the schedule.
On a joint return, a married couple must
dwide the maximum amount of retirement
age, the services of the class of employees
income between them but not more than
to which you belong. I
$2,500 may be Allocaied to either. Please
use column A for wife and column 8 for
husband.' .
E3ceptlorr-lf you and your spouse we
making the election previously mentioned
to use Schedule RP, the spouse under 65
should use column B.
Una 2ii-Show the following
and annuities received during 1977. pensions
,(I) Pensions and annuities received
under the Social Security Act or Railroad
Retirement Acts. For social security pansion.
show the gross amount 'before deduc.
tion of any amount withheld to pay medi.
um Insurance premiums.
(2) Any other pensions and annuities
that are not taxed. Include the total
monthly payments you from a
received
matured U.S. Government life Insurance
endowment contract that do not result
from the cost of the contract. (Do not
include supplemental annuities under the
Rallmod Retirement Act, military disability
pensions, or any mount treated as a re.
turn of your cost.)
Do noij includa on this line amounts ex.
cluded from, gross income such as
amounts received under accident or health
Insurance plans pr as compensation for Injury
or sickness.
Una 2b.-Show earned Income 'm
calved during 1977 on line (1) or (il), depending
on your age. If you or your spouse
For information on how'to mpon your
disability retirement income, please see
Instructions for Schedule E.
elderly so do not complete the rest of the
schedule. .
(b) If you were 65 or older on January 1.
Line S.-4f you are under 65, enter your 1978, your retirement income Includes the
retirement Income on line a. Please see amounts received during 1977 from pen.
below for what income to enter.
sions, annuities, Interest. rents, dividends.
I I
I you are 65 or older, enter your retire- proceeds of retirement bonds, and
ment income on line b. Pleasir see below amounts received from Individual retire.
for what income to enter.
ment accounts and individual retirement
annuities which
What Is Retirement Income-
are reported as Income on
Form 1040. It does not Include royalties,
(a) If you were under 65 on January 1,* (For this purpose, Income from rents
1978' retirement Income Includes means the full smourif received
only theyour amount you received during 1977
before
subtracting depreciation
from a pension or or any other
annuity under a public expenses.)
retirement system as a result of your sem.
ices or services of your deceased spouse, unes 6 through 10-You should com-
which is reported as income on Form plete these lines as Instructed on the
1040 (A public retirement system Is one schedule.
set up - by the Federal Government or a If You need more Information, please got
State county, city, etc.) Publication 524. Tax Credit for the Elderly.
If 'you
retired from the Fede ral, StateI ' It gives examples of howto figure the credit
etc. Government on disability and were un' and also sample filled-in sChidules.
der age 65 at the end of your taxable yea Married Residents of Community Prop.
your disability annuity payments a " arty States.-If you' are married filing a
earned income and not retirement income re joint return and live in a community phip.
unless the payments (1) are for periods arty State, you should disregard com-
after the date on which you reached the munity property lam for purposes of
minimum retirement age and (2) are In- computing the credit for the elderly on
eligible for the disability income exclusion. Schedule RP. The total of all taxable and
Siich payments are Ineligible for the dis- nontaxable in computing
ability Income exclusion If you:
income used
(1) received the payments for a period
the
credit 1. considered that of the Individual
whose semic,,s gave rise to the Income. -
Note: You may be entitled to claim
* the ne~ jobs credit if you hired additionat
employees this year. However, you
may not take a deduction for that portion
of the wages or salaries paid or In.
curred which is equal to the amount of
the lpew jobs credit allowable before
app lution of the tax liability limita.
tions. Please see Form 5884, Now Jobs
Credit and Publication 902 Tn Infer.
nurtlim a. Job. Tax Credit, ' for addi.
tion3l information.
If you owned a business or practiced a
Profession; you should-complete Schedule
C. Then enter your net profit or loss on
Form 1040, line 13. If you had more than
Page 24
Schedule C (Form 1040)
I
one business, or if you and your spouse
had separate businesses, complete a
Schedule C for each business. 'Farmers
should use Schedule F (Form 1040).
If some of your expenses am part business
and part personal, you can deduct
only the business part. For example,.tf only
half of your car usage Is for business, you
can deduct only half of the cost of oper.
ating the car. -
You should report miss, ixi:hanges, or
involuntary conversions of certain trade or
business property on Form 4797, Supple.
mental Schedule of Gains'and Losses.
You have to pay the social security soft.
employment tax on Income from arw Latin
or business; unless specifically excluded.
Please see Schedule SE.
Deductions For Business Use of a
Dwelling Used as a Resildence.-You may
deduct, within certain limits, business use
expenses that are allocable to a portion of
your home only If that portion Is exclusive.
ly used on a regular basis:
(a) as your principal place of business,
(b) as a place of business used by your
patlerits, clients, or customers In
meeting or dealing With you In the
normal cour" of your trade or
business, or
(c) In connection with your business it
It Is a separate stmctum that is. nut
attached to your dwelling unit
11

You may also deduct expenses allocable
to space within your home that is used
ait a regular basis as a storage unit for
inventory field for use in your tmde or
business of selling products at. retail or
wholesale, but only.if your'home Is the
sole fixed location of your trade or
business.
Limitation on Deduction.---Subtract the
allowable Interest, taxes and casualty
losses allocable to business or storage use
from the amount of gross Income derived
from trade or business use and determine
the balance. You may deduct so much of
your other expenses'allocable to business
or storage use that
balance.
do not exceed this
The Interest, taxes, or casualty lossesr
not allocable to business or storage use
may be taken as itemized deductions. on
Schedule A (Form 1040). .
Special Rule for Day Care Services.-If
you use space in your home on -a regular
basis In your trade or business of provid.
ing.day care services, you may deduct the
business expenses attributable to the
business use even though you also use the
same space for nonbusiness purposes. To
figure your deduction, you must dilocate
your expenses for the space by the ratio
of houm of business use to total'bours of
availability for all uses. You must else comply
with applicable State ng, certiff-
cation, or approval requirements licars! In order
to deduct expenses accrued after August
31. 1977.
For more information, please get.Pub.
fication 587, Business Use of Your Home.
See Instructions for Schedule E (Form
1040) for information on deductions for
rental of a dwelling used as a residence.
Umited Deduction for Losses
Arising from Certain Activities
If you are engagid In the activity of:
(1) holding. producing, or di5t'ibuting
motion pictu re films or
mideo tapes,
(2) farming (we the instructions for
Schedule F (Form 1040) for a
definition of farming),
(3) leasing personal property, and
certain other tangible property
other than buildings, an elevator
or escalator, or other real property
that is or has been subject
to an allowance for depreciation
or amortization, or
(4) exploring for, or eirpiciting, oil
and gas resources,
as a trade or business or for the pro,
duction of income, any loss from that
,activity may not exceed the total
amount you have risked (amount that
you personally invested plus any
amount for which you are personally
liable).
Note: Enter as a deduction on line 19,
any amount of less from such activity
that was incurred in 1976, but ~not
allowed for that yea,
I
Accounting Methods and Records.-You
must use the cash method on your return
unless you kept books of account. If you
kept such books, you can use either the
cash method, accrual method, or In certain
limited situations the completed contract
or percentage of completion methods. The
method or methods used must property
reflect your income.
Cash method means you generally
all items of taxable Income actually
show
or constructively received during the year
(whether' In cash, property, or services)
and those amounts actually paid during the
year for deductible expenses. Income is
constructively mceived it is credited
when
to your account or set aside for you to
draw on at any time.
Accrual method Means you report in.
come when earned, even if not received,
and deduct expenses when Incurred. even'
If not paid during the taxable year.,
Item A-4itincipal Business Activity and
Product.-You should give,the one business
activity that accounted for the largest
percentage of gross Income Included in
Schedule C. page 1, line 1. State the broad
field of business activity as well as the
product or service. For example, "wholesale-drugs,"
"retail apparel."
Item C--Employer Identification Nurrr
ber-You do not,need an employer iden.
tification number unless you were required
to file an employment, excise, or alcohol.
tobacco, and fireamns tax saturn or maintain
a Keogh (H.R. 10) plan.
Item D-Business, Addrew.-Op not
Use your home address as a business address
unless you actually conducted the
business from your home. You should
show the street address rather than the
box number.
Item F-Information Retums.-You
may be required to file Information returns
for wages paid to employees, certain pay.
ments of fees and other non-employee compensation,
Interest, rents, royalties, annuities
and pensions. For more detailed
information, please see instructions for
Forms W-3 (Transmittal of Wage and Tax
Statements) and 1096 (Annual Summary
and Transmittal of 'U.S. Information
Returns).
Income
Line 1--Gross Receipts or Gross Sales.-
Please enter gross receipts or sales from
your trade or business, except those Items
required to be reported on line 4. (See Instructions
for line 4.)
Returns and Allowances.-You should
enter such items as returned sa;es, re.
bates. and allowances from the sa a price
or service charge.
Installment Sales.-If you use the in.
stallment method of reporting income from
sales, please attach to your return a whedule
showing separately for 1977 and the
three preceding years:
(1) gross sales,
(2) cost of goods sold,
(3) gross profit,
(4) percentage of gross profits to grow
sales,
(5) amounts collected. and
(6) arms profits on amounts collected.
Una Z--Corst of Goods Sold, Schedule C-
1-If you were engaged in a trade or busi.
ness In which the production, purchase, or
sale of merchandise was an income producing
factor, Inventories of merchandise
must be taken Into account at the begin..
ring and end of your taxable year.
The inventories can be valued at.
(1) cost
.(2) cost or market, whichever is lower,
or
(3) any other method approved by the
Commissioner of Internal Revenue,
You must continue to use the same
valuation method you adopted for the first
year you took inventory unless you get
permission to change your method by
applying to the Commissioner of Internal
Revenue, Washington. D.C. 20224. You
should use Form 3115 to apply for per.
mission, and file it with the Service within
laO days after the beginning of the taxable
year In which you want to use the new
method.
Cost at Operations (Where love., ries
are Not an Income~dete Ining Factor)-
If the amount entered on line 2 includes an
amount applicable to cost of operations,
you Should complete the app~opriate lines
of Schedule C-1.
Line 4-.Other Income.-Include on line 4
finance reserve income, sales of wrap..
amounts recovered from bad debts, and
Interest as well as other kinds of miscel.
lanmus income from your trade or busi.
ness,
Deductions
Una &--Depfeclation.-You can deduct a
reasonable allowance for the exhaustion,
wear and tear, and obsolescence of pmp-.
arty used in a trade or business, or property
held for the production of income.
The allowance is not allowed for stock in
trade, inventories, land. and personal assets.
Please see Form 4562 for information
on depreciation methods, limitations and
special rules.
Class Life-Asset Depreciation Range
(CLADR) System and Claw Life (CL) By$tem.-If
you figure depreciation by using
the Class Life Asset Depreciation Range
(CLADR) System for assets put in service
after December 31, 1970, you must file
Form 4832, Claw Life Asset Depreciation
Range (CLADR) System. If you figure cle,
preciation by using the Claw Life (CL) System
for assets put in service before January
1, 1971, you do not have to file a
form, but you must keep the records required
by the regulations. For more information,
please get Publication 534, Tax Information
on Depreciation.
Una 9-Repairs.-You can deduct the cost
of incidental repairs,' including labor (but
not the value of your own labor), supplies,
and other items, that'do not add to the
value or appreciably lengthen the life of
the property. Amounts spent to restore or
replace property am not deductible. They
are chargeable to capital accounts or to
depreciation reserve, depending on how
depreciation is charged on your books. You
should include on line 9 the total amount
of repairs from Form 4a32 if the Class
Life Asset Depreciation Range (CLADR)
System of depreciation Is used. .
Une 24-Amortizallon-You may elect to
amortize expenditures for pollution con,
Page 25
trol facilities and on-thejob training and
child care facilities ratably over a to month
period Instead of taking the depreciation.
deduction. You may also elect to amortize
expenditures for research or expermentation
or a trade mark or trade name ratably
- ::r a period of not less than 60 months.
~or mom Information, please get Publication
535, Tax Information on Business Ex-
?enses and Operating Losses.
Treatment of Nonresidential Real Prop.
arty Construction Period Interest and
Taxes.-Special rules apply if you began
construction of nonresidential real prop~
erty after December 31, 1975, and can.
stitiction was not completed' within the
same taxable year.
If the construction period Interest and
taxerl were paid or accrued in 1976, only 50
percent of those amounts should have
been deducted In 1976; 162/3 pemern: Is
deductible In 1977 (or in the taxable year
In which the property Is ready to be placed
in service or is ready to be held for,sale.
whichever is later) -and each following year
until the full amount has been allowable as
a deduction.
If the construction period interest and
taxes were paid or accrued in 1977, only
20 percent Is deductible in 1977; 20 percent
is deductible in 1978 (or in the tax.
able year in which the property is ready to
be placed in service or Is ready to be held
for sale, whichaverls later) and following
taxable years, until the full amount has
been allowable as a deduction.
Nonresidential real property means
real property that is net or cannot reasonably
be expected to be residential rental
property, real property held for sale as
dwelling units, or Im-Income housing.
Una 15a-Retiment Plans, etc.-You
-shoOld enter the amount you claim as a
deduction for contributions to a pension,
profit-sharing, or annuity plan, or plans,
for the benefit of your employees. If the
plan includes you as a self-employed per.
son, you should enter contributions made
as an employer on your behalf (but not
voluntary contributions you made as an
employee) on Form 1040, line 25, instead
of on Schedule C, line 15a.
For detailed filing requirements, please
seia instructions for Form 1040, line 25, on
page 10.
Una 15b-Employee Benefit Programs-
You should enter the amount of
your contributions to employee benefit
programs that are not an incidental part
of a pension or profit-sharing, plan Included
on line 15(a). include on line 15(b) con.
tributions to insurance, health, and welfare
programs.
Una 16-Interest on Business Indebted.
ness.-Genetally, a cash basis taxpayer,
who In 1977 prepaid interest allocable to
any period after 1977, can only deduct the
amount allocable to 1977. See Publication
545, Income Tax Deduction for Interest
Expense.
Do not include on line 16, Interest that
your trade or business paid or accrued
on debts incurred to purchase or carry
property hold for Investment. You should
claim this interest on investment debts on
Schedule A (Form 1040). For further In'
formation, please see Schedule A (Form
1040) Instructions.
Une 27-Bad Debts from Sales or Services.-You
should include on this line
debts, or portions of them, arising from
sales or professional services that were
mchic!4~~ in income and definitely known
to be worthless; or a reasonable amount
that was added -during the taxable year to
a reserve for bad debts. A debt which Is
f,exducted as,bad wd which reduces your
must, If ater collected, be Included as
Income for the year in which collected. For
more information, please get Publication
548, Tax Information on Deductions for
Bad Debts.
Una 18-Deplepon-if a deduction Is
claimed on account of timber depletion
you should attach Form T to your mturW.
Una 19--Other Business Expenses-You
should include all ordinary and necessary
business expenses. Do not include cost of
business equipment or furniture, amounts
Instructidnis for Schedule SE (Form 1040)
Important Notice: If you are self-employed
and Form 1040, line 31, is less
then $8,000, it may be necessary for
you to complete lines I through 13 of
Schedule SE (Form 1040) even though
your self-employment ' less
than $400. You may be income eligible toisclaim the earned income credit. Please see
page 2. Income ~empt from self-em.
ployment tax as a result of filing Forms
4029 or 4362, is not earned income for
purposes of the earned income credit.
Schedule SE provides the Social Security
Administration With information on selfemployment
income necessary for figuring
benefits under the social security program.
You haw to pay social security self-ern.
ployment tax regardless of ap, and even
Page 26
though you are receiving social security
benefits.
To assure proper credit to yo~r account.
please enter your name and social security
number on Schad ul
SE exactly as they are
shown on your soci:l security card.
Fiscal year filers must use the tax rate
and earnings base that are applicable at
the time In which their fiscal year begins.
No prolation of the tax or earnings base
is required for a fiscal year that overlaps
the date of a rate or earnings base change.
Ministers, Members of Religious Orders,
and Christian Science Practitioners-If
you are a duly ordained, commissioned,
or licensed minister of a church
bar of a religious order (who has -net a "in' taken
a vow of poverty) or a Christian Science
practitioner, you are subject to social
security self-employment tax, But you can,
spent for replacements or permanent Improvements
to property, or . personal living
and family expenses.
Automobile Expenses, Special RgW.-
Please me page 10 for optional method of
figuring deductible automobile expenses.
Schedule C,3-Expense Amount Infor.
mation.-Expense account allowance
means (a) amounts other than compensa.
tion, received as advances or reimbursements,
and (b) amounts paid by or for you
for expenses incurred by or for yourself or
your employe", including all amounts
charged through any type of credit card,
for which a deduction is claimed In this
schedule. This term does not Include
amounts paid for (a) the purchase of
goods for wsale or use in your business.
and (b) Incidental "pens", such as the
purchase of office supplies or for local
transportation in connection with an
errand. You should keep records as proof
of amounts spent for entertainment.
Foreign Conventions.-Generally, no de,
cluction is allowed for attendance at mom
than two foreign conventions during your
taxable year. The amount of expenses you
can deduct are also subject to special lim.
itations based on the amount of time. ac.
tually devoted to business. etc'
In order to deduct any exp:nses for a
foreign convention you must
ttaich both
of the following to your tax return for the
year in which the expenses are deducted:
(1) Your signed statement indicating
the total days of the trip. the days and,
amounts spent traveling. the number of
hours each day you devoted to scheduled
business activities, a program of the busi.
new activities: and
(2) A written statement, signed by
officer of the organization or group spon. an
wring the convention that includes a
schedule of business activities for each
day of the convention and the number of
hours of each day you attended such
scheduled business activities.
For more Information, please get Publi.
cation 463, Travel,
Gift Expenses.
Entertainment. and
under certain conditions, request to exempt
your income from service as a minis.
ter, member, or practitioner by filing Form
4361. If you filed Form 4361 and you have
no other income subject to social security
self-employment tax, write "Exempt-Form
4361" on Form 1040, line 48. (Note.,
If you filed Form 4361 but have $400 or
more from other net earnings subject to
self-employment tax, you must complete
Schedule SE.) You can get forms, sched.
ules, and publications from any Internal
Revenue Service office. If you previously
filed an effective waiver certificate, Form
2031, to pay social security self-employ.
ment tax, you cannot file for an exemption.
For more information please get Publics.
thin 517, Social Security for Members of
the Clergy and Religious Workers.
Members of Certain Religious Sects.-If
you have conscientious objections to social
security insurance because of your belief In

the teachings of a recognized religious sect
of which you are a member. you can file
Form 4M to get exemption from selfemployment
tax. If you filed Form 4029, do
not file Schedule SE. Instead, write
"Exempt-Fomn 4029" on form 1040, line
48.
Coverage of Ministers and Members of
Religious Orders Who Are U.S. Citizens
Serving Ouiside the U.S.-Ministers and
members of religious orders who are U.S.
citizens serving outside the U.S. (such as
missionaries) may figure net earnings from
self-employment as i I they were sewing
in the U.S. Ministers or members of a neligious
order who are sawing In a possession
of the U.S. or In a foreign country
must include their income in figuring
net earnings from self-employment. This
provision applies to ministers who have not,
elected to be exempt from coverage.
Christian Science practitioners are not
included In this provision. The provision
applies only to ministers and members of
religious orders.
attach an explanation. Also exclude from
Schedule SE, line 2, any additional fi
year depreciation or . unrembursed expenses
income.
resulting from farm partnership
Use Schedule SE, line 7, to exclude any
amounts reported In . Schedule C that
should not be taken into in figur-
Ing your nonfarm self-employment account Income.
Deduct additional firist-year depreciation
from nonfarm
SE, line 7.
partnerships on Schedule
In figuring net earnings from self-employment,
do not take Into account Income
or (loss) or any deductions for expenses
connected with this Income from the foilowing
sources:
A. Employees and Public Officials.-Income
(fees, salaries, ertc.) from the per.'
formance of services as: (1) a public official
(except as noted above); (2) an
employee or employee representative under
the railroad retirement system; or (3)
an employee (except as indicated above).
poration. or by a government or its political
subdivisions, unless received In the course
of a trade or business as a dealer In stocks
or securities. .
E. Property Gains and Losses.-Gain or
loss: (1) from the sale or exchange of a
capital asset; (2) from certain transactions
Involving timber, coal, or domestic iron
ore; or (3) from the sale, exchange, invol.
untary conversion, or other disposition of
property If that property Is neither (a) stock
in trade or other property of a kind which
would properly be Includible In inventory
If on hand at the close of the taxable year,
nor jb) property held primarily for sale to
customers in the ordinary course of the
trade or bu,liness;
F Net Operating Losses.-No deduction
for 'net
operating losses of other years is
allowed in figuring net earnings from self.
employment.
More Than One Trade or Business
It you am a minister or member of a
religious order, you Include in your
earnings from self-employment must (but not for
income tax purposes) the rental value of a
home furnished you or an allowance for it.
You must else include the value of meals
and lodging furnished you for the convenience
of your employers.
I
U.S. Citizens Employed by Foreign Gcv,
ernments or International Organizations-
You am subject to the social security ;;Ifemployment
tax if you ire a U S citizen
employed In the U.S., Puerto Rico, ' ' '
American Samoa, or the Virgin Islands Guby
am, a
foreign government, an Instrumentality
wholly Owned by a foreign government, or
an international organization organized under
the International Organizations Immunities
Act. You should report income
from this employment on Schedule SE,
line 5(d).
Salf~mployment I ncome of Certain Individuals
Temporarily Living Outside the
U.S-U.S. citizens who are self-employed
outside the U.S. and who keep. their residences
in the U.S. must figure their net
earnings from self-employment In the same
way as those who are self-employed In the
U.S. The exclusion of Income earned
abroad for Income tax purposes does not
apply to the social security self-employment
tax. This provision does not apply to
U.S. citizens who have establisheq residence
In a foreign country.
Fee Basis State or Local Government Employees,
Fees rec: aived
for functions and
service. performed by these employees (including
public officers who in this Capacity
are employees) are subject to ilelf-emplop
ment tax If the functions and services are
performed'in positions which are: (1) com-.
pensated solely an a fee basis; and (2) not
covered under a Federal-State social secu.
rity coverage agreement.
Adjustments.
D. Dividends and Interest.-Dividends
You should exclude from Schedule SE, - on shams I of stock an . Note: An employee IS or over who has
income from the sale of newspapers or
magazines to an ultimate consumer is subject
to self-employment tax it the employee
kept the profits from those sales.
B. Certain Payments to Retired Partners-Income
received by a retired partner
under a written partnership plan that
provide's for lifelong periodic retirement
payments If the retired partner has no Interest
In the partnership (except for the
right to the retirement payments) and did
not perform services for the partnership
,during the year.
"
C~ Real estate rentals-Rentatis from
real estate, except rentals received In the
course of a trade or business as a real es.
tate dealer. These Include cash. and crop
shares received from a tenant or sharefanner.
You should report these amounts
on Schedule E, Part 11. However, rental in.
come from a farm Is not excluded if the
rental arrangement provides for material
participation. by the landlord and the landlord
does participate materially In the pro. .
duction or in the management of the production
of one or mom farm products on
his or her land. This Income represents
f~mn earnings and should be reported on
Schedules F and SE.
Note: To determine whether you partici.
pated materially in farm management or
production, do not consider the activities ..
of any agent, who acted for you.
The following are not real estate rantals:
payments for the use or occupancy of
rooms or other, space where services are
also furnished to, the occupant, such as
rooms in hotels, boarding houses, apart.
ment houses, furnishing hotel services,
tourist camps or homes; or payments for
space in parking lots, wamhouses, or storage
garages. These payments must be included
in figuring net eanniags, from self.
employment. ~
d interest on bonds,
line 2, any item of income or expense that debentures; notes, certificates, or other Wi.
is not included in the computation of not dence Of Indebtedness, Issued with Inter.
earnings from farm self-employm6nt and est coupons or In registered form by a cor-
you farmed and also had one or more
other trades or businesses, your net earn.
ings from self-employment are the com.
bined net earnings from self-employment
of all your trades and businesses. Thus, It
you had a loss in one trade or business, It
reduces the income from another trade or
business. In these cases, please both
Schedule F and Schedule C to figure use net
profit from the farm and nonfarm activities
respectively. Make the combined compu.
tation Of self-employment tax on Sched.
ule SE.
Joint Returns
For a joint return, you should show the
name of the spouse with self-employment
Income on Schedule SE. It both you and
your spouse have self-employment Income,
each of you must file a separate Schedule
SE. You should Include the total of profits
or (losses) ire. all businesses on Form
1040, line 13 or 19, as appropriate. Then
enter the combined self-employment tax
on Form 2040, line 48. " .
Commynity Income
For the purpose of figuring not earnings
from self-employment, If any of the income
from a trade or business, Including farm.
Ing, Is comirounity, income, all the Income
from that trade or business Is considered
the income of the husband, unless the wife
exercises substantially all the m , inagement
and control of the operation. In that case,
all the income Is considered the wiWs.
If you file separate returns, Plana at.
tach Schedules C and SE or Schedules F
and SE to the return of the s~pouse with
self-employment income. Community Income
Included on these schedules must be'
divided, for Income tax purposes, on the
basis of the community property laws.
Partnerships.
in figuring your combined net earnings
from self-employment, you should, Include
your entire share of earnings from a
partnership, Including any guaranteed Oayments.
No part of that share can be allocated
to your applies, even thoug~,,ldas In-
Page 27
come may, under State few, be community
Income. However, In the case of a
husband and wife to= partnership, as In
other partnerships, the distributive share
of each must be entered as partnership Income
on Schedule E (Form 1040) Part 111,
for income tax purposes. and on Schedule
SE, line 1(b). for self-employment tax
purposes. (You should report nonfarm
partnership income in Schedule SE, line
5(b), for. social security self-employment
tax purposes.)
Note: if a member of a continuing part.
nership dies, part of the deceased partner's
distributive share of the partnership's or.
dinary income or Iloss) for the taxable
year of the partnership in which the partner
died must be included in the partner's
not earnings from self-employment.
Optional Method for Computing Met
Earnings From Farm Self-Employment
If. your gross profits for the year from
farming were not mom than $2 . 400 you
can report two-thirds of your gross profits '
..from farming Instead of your actual net
earnings from farming. If your gross profits
from farming were more then $2,400,
and your actual net earnings from farming
were Ins than $1,600, you can report
$11600.
There is no limitation on frequency of
electing the optional method for self-employment
Income solely from farming. If
this method Is used, however. It must be
pplied to all farm earnings from self-em.
aployment for the year. It may- be used to
Increase or decrease net farm earnings and
It may be used even if the farming operation
resulted In a loss. You may change
the method (either from actual net to op.
tional return. n !Vr the reverse) after you-Ille your
a change may be made.by the
taxpayer or someone qualified to act on.the
taxpayer's behalf if the taxpayer Is Incom-,
potent or deceased.
NOW: You may be entitled to claim
the now jobs credit If you hired addltippet
employee; this year. However,
you may not take a deduction for that
portion of the wages or salaries paid or
Incurred which is equal to the amount
the newJobs credit allowable before
Of .ppilwilon of the tax liability limitation.
Please. see Form 5884, New Jobs
Credit, for additional information.
For the optional method, you should
figure your share of gross profits from the
farm partnership according to the partner.
ship agreement. In the case of guaranteed
payments, your share of the partnership's
gross profits is your guaranteed payment
plus your share of the gross profits after
such gross prolits am reduced by all guar.
anteed payments of the partnership.
Optional Method for Computing Net
Earnings From Nonfarm
Self-Employment
R you am a regularly self~employred individual
you may, If you meet certain conditions.
use an optional method to de,
termine your net earnings from nonfarm
self-employment. The option Is. available
when your actual earnings from norifarmi
self-employment am leis than $1,600 and
less than two-thirds of your gross nonfarm
profits.
Under the nonfarm optional method,
you as a regularly self-employed Indhildus]
two-thirds of your gross
nonfarm may report profits (but not mom than
$1,600) as your not earnings fmrn~ self.
employment If your net earnings from such
self-employment are less than $1,600 and
less than two-thirds of your gross nonfarm
profits from such self-employment. How~
ever, unlike the far. optional method, the
nonfarm optional method does not permit
you to report less than your actual
not earnings from nonfarm self-employment.
You may use the optional method of
figuring net earnings from nonfarm selfemployment
If you are: (1) regularly self.
employed, or (2) regularly a member of a
partnership. This requirement Is met It you
had actual not earnings from lielf-employment
of $400 or more ~ncludlng your dW
tributive sham of the Income or loss from
.any partnership of which you are a mem.
ber) from trades or businesses (nonfarm
and few) In at least 2 of the 3 consecutive
.(Form 1W)
years Immediately preceding the year for
which you elect to use the nonfarm option.
Do not use the optional method of figuring
net earnings from nonfarm self-ernployment
for more than 5 years. Tho.5 years
need not be consecutive.
It both nonfarm and farm businesses am
Involved, the nonfarm option may be used
only if your actual net earnings from nonfarm
self employment am less than $1,600.
Additionally, In all such combined cams
your net nonfarm earnings must be Ins
than two-thirdi of your gross nonfarm prof.
Its In order to use the nonfarm option. If
you quality to-use both options, you may
report less than actual total net earnings
but not Ins than actual net earnings
from nonfarm self-employment alone.
. If you elect to use both the nonfarm option
and the farm option in figuring pat
earnings from self-employment your max.
[mum combined totalof not earnings from
self-employment for any one t6xable year
cannot bei more than $1.600.
For the rionfarm optional method. you
should figure your share of gross profits
from a nonfarm partnership according to
the partnership agreement VAth guaran.
teed payments, your share of the partner.
ship's gross profits Is your guaranteed payment
plus y9ur share of the gross profits
after such gross*profits are reduced by all
guaranteed payments of the partnership.
Share-Farming Arrangements
If you produce crops or livestock on land
belonging to another for a proportionato
share of the crop or livestock produced, or
thb proceeds from them, you am considered
to be an Independent contractor and
a ielfemployed person rather than an em.
ployee. Report your not earnings on Schedule
F for Income tax purpoon and on'
Schedule SE for social security self-em.
ployment tax purposes.
For more Information on saff-employ.
mint tax, please got Publication 533, In.
formation an Self-Employment Tax.
(1) Profits received from the sale of live.
Income In trus taxable year following the
taxable year of destruartion or damage if
you can establish that It Is your practice
stock and other items bought for resale: to report Income from such crops In. a foi~
lowing taxable year.
(2) Cash and the value of menihandise
or other property received from, the sale of
livestock and produce raised during 1977
or earlier years.
For more Inform tion, please get'Pubil-
cation 225, Farme7s Tax Guide.
(3) Other firm Income. ,
Your expenses am the arfio unts you paid
ri-a, or step......a
.
The7gross profits.are figured as. .,cated
during 1977 plus
depreciation..
deductions such as ii the summary of Income and deductions
page 2 of Schedule F. Famn-expenses
Employer Identification Number
You do not need an employer identifica.
tion number unless you maintained a
Livestock Sold an Account of Drought
You can. elect to Include livestock sale
the actual expense a Incurred during
1977 whether you paid * them or not. You
can value Inventories according to the
farm-pricle method. which provides for
Keogh (N.R. 10) plan or were required to
file an employment, excise, or alcohol, to-
.bacco, and firearms tax return.
proceeds In income In the taxable year following
the taxable year' of a drought, if
your principal trade oi ~usiness Is farming,
the valuation of Inventories at market price
less direct cost of disposition, or you can
use other methods. Fernion; raising live.
and Ifyou can establish that the sale would stock can valve their Inventories, of ani-
Cash Receipts and nothave occurred except for the drought mals. according to either thafarm-prica
Disbursements Method of Reporting
You should Include the following In
.Income:
and your am Is designated'as belog ellgible
for Federal Government assistance.
You win elect to Include crop Insurance
proceeds and cartsindisaster payments In
method or the ynit-livestock-price method.
It you use an accrual method of ac-'
counting, you' must Invent9ry growing'
crops.
Page 28

1latited Deduction for Losses Arising from Certain Activities
if you am engaged in the Activity of
farming as a trade or business or for
the production of income, any loss
from that activity may not exceed the
total amount you have risked (amount
that you. personally invested plus any
,~,mount for which you are personally
able).
For this purpose farming means the
cultivation of land, or raising or harvesting
of any agricultural or horticul.
tural commodity, Including the raising,
shearing, feeding, "ring for, training,
and management of animals; however,
trees (other than trees bearing fruit or
nuts) shall not be treated as an agricultural
or horticultural commodity.
Deductions am limited for farming
syndicatm.-A farming syndicate may
be a partnership, or any other noneor.
porate enterprise, or an electing small
business corporation engaged in the
trade or business of farming, if (1) at
any time interests in the partnership or
enterprise have been offered for sale in
any offering required to be registered
with any Federal or State agency, or (2)
more than 35 percent of the losses dur.
ing any period are allmable to limited
partners or limited entrepreneurs.
A limited entrepreneur is a person
who has an interest in an enterprise
other than as a limited partner and who
does not actively participate in the man.
agement of the enterprise.
Income
Generally, you should report all farm Income
in Schedule F. However, If you received
rental income based on farm pro~
duction or if you received crop shares
based on the renting of all or part of your
crop land on a crop share basis, and you
did not materially participate in operating
the farm, report this income on For.
4835, Farm Rental income and Expenses
and Summary of Gross Income From
Farming or Fishing (this income is not
subject to self-employment tax) and
Schedule E (Form 1040). if you materially
participated in the operation of a farm, the
rental income you received is subject to
self-employment tax and should be re.
Ported in Schedule F.
Note: To determine whether you partici.
pated materially in the farm management
or production, do not consider the activi.
ties of any agent who acted for you.
Under both 'the cash and 0e accrual
methods of reporting, you should report
cmP sham rentals received in the year in
which you convert them to money or its
equivalent.
Report sales, exchanges. or involuntary
c nversions of certain trade or business
Property or on Form 4797, Supplemental
Schedule of Gains and Losses.
Anything of value received instead of
cash, such as groceries in "change for
In the case of any farming syndicate,
a deduction for amounts paid for feed,
seed, fertilizer, or other similar farm
supplies is only allowed for the taxable
year in which these items are actually
used or consumed (or, If later, the taxable
year for which these amounts am
deductible under the syndicate's method
of accounting). However, this does not
apply to any amount paid for supplies
on hand at the end of the taxable year
0, account of fire, storm, flood, other
usually, disease, or drought, or to any
amount required to be capitalized.
~ The cost of poultry (including egg
laying.hens and baby chicks) purchased
for use in a trade or business (or both
for use In a trade or business and for
sale) must be capitalized and deducted
ratably over the lesser of 12 months or
their useful life in the trade or business.
A syndicate that is engaged In planting,
cultivating, maintaining. or developing
a grove, orchard, or vineyard In
which fruit or nuts are must up-
grown
italize any amount that (1) would otherwise
be deductible, cultivation (2) is attributable
to the planting,
mainte.
nance, or development of the , grove, or-
chard, or vineyard, and (3) Is Incurred
before the taxable year in which there
is a crop or yield in commercial quantities.
Note: Enter as a deduction on line 50,
any amount of loss from such activity
that was imcurred in 1976, but not allowed
for that year.
produce, must be treated as income to the
extent of its market value. The value of
farm produce that you and your family
used need not be reported as Income, but
expenses Incurred in raising such produce
must not be claimed as deductions. You
should include recoveries from i . nsurance
on growing crops. (Cash method tax.
Payers, Please see Cash Receipts and Dis.
bursements method of Reporting.)
Cooperative Allocations,
Dividends and Advances
You should also include in farm income:
(1) per-unit retain allocations received
from cooperatives in money and qualified
per-unit retain certificates (to the extent
of stated dollar amounts), and (2) patron,
age dividends received from cooperatives
in money and qualified written notices of
allocation (to the extent of stated dollar
amount).
You should include in farm Income any
patronage dividends received in property
other than written notices of allocation to
the extent of fair market value.
You should report nonpatronage dis.
tributions received from farmers' cooperslives
exempt from tax on fine 21.
Patronage dividends am excludable
fmm your gross Income. if directly attrtbutable
to: (1) the purchase, of personal,
livint or family items, or (2) the purchase
of capital assets, or depreciable property
used In your business. but only whom the
be is of the items purchased is reduced
byle amount of the dividends excluded
from income.
Please get Publication 225 for de.
tailed instructions on how and when to
report the receipt and redemption of
nonqualified certificates and nonqualtfled
written notices, and the receipt of
patronage dividends received on pur.
chase of assets and nonbusineSS
purchases.
Cash advances recelved'from marketing
cooperatives you do business with am Includible
In farm Income.
Agricultural Program Payments
In Cash.-YOU should enter the total
amount of price support payments, diversion
payments, and cost sham payments
received in cash (sight drafts).
In Materials and Services.-If you re,
calved benefits In the form of materials,
such as fertilizer or Hme, or in the form of
services, such as grading or the construc.
tion of dams, please enter the total amount
paid by the Department of Agriculture to
the vendor or contractor.
Commodity Credit Corporation Loans
If commodities are pledged as security
for a loan from the Commodity Credit
Corporation, Income is not considered
received until the commodities am deliV-
:red or forfeited to the Corporation, unless
I n election is made to Include the loan
n income when received. If you made this
election or delivered or forfeited the
pledged commodity, you should enter the
'mount received on line 23. In the case of
in election, attach to your return a statement
showing details of the loan. You must
continue to report similar loans as income
unless you receive permission from the
'Cohnnnissioner of Internal Revenue to
change your method of accounting.
Commodity Futures-Pumhase or sales
contracts entered into solely for protection
against price fluctuations are a form
of business Insurance and are considered
hedges. Any profit realized Is ordinary In.
come and is entered on line 26. If you
incur a loss in a closed futures contract, it
is deductible as an ordinary and necessary
business expense, and is shown as a negative
figure on line 26. Purchase or sales
contracts are not true hedges where they
offset losses already sustained. Commod. -
ity futures contracts entered into with the
hope of making a profit on the contract
itself through favorable price fluctuations
am considered speculation and thew
transactions am shown on Schedule I)
(Form 1040).
Federal Gasoline Tax Credit
If you use the cash method, you should
enter on line 24, any Fedhral gasoline thx
claimed as. a credit an Form 1040 for
1976, If you use the accrual method,
enter on line 63, any Federal gasoline tax
you claim as a credit on Form 1040 for
1977.
Page 29
Expensies and Ollser Deductions
Hired Labcxr-You can deduct amounts
paid for farm labor. Do not deduct the
vil lue of your own labor or that of your
family. You should deduct only that part
of the board which Is purchased for hired
labor. The value of products furnished fly
the farrA and used in the board of hired
labor Is not deductible. Do not deduct
amounts paid to those who did household
work except to the extent their services are
used In boarding and otherwise caring for
farm laborers.
Repairs and Maintenance.-You can
deduct amounts paid for repairs and main.
tenance of farm buildings (except your
dwelling), farm machinery and equipment;
and the cost of ordinary tools of short life
or Small Cost such as ShOvels, rakes, etc.
You should Include In this deduction the
total amount of repalrs I m Form 4832 If
You use the Class Ufa = Depreciation
Range (CLADR) System of depreciation.
Interest.-Genertilly, a taxpayer, who In
1977 prepaid interest allocable to any
Period after 1977, can only deduct the
amount allocable to 1977. Please get
Publication 545, Income Tax Deduction for
Interest Expense.
Rent of Farm, Part of Farrin, or Paw
tum.-You can deduct rent paid In cash.
If you am a tenant famer paying rent to
your landlord In the form of crops raised
on the farm undera crop share agreement
you cannot deduct as rent the value of the
crop, but you can deduct amounts paid
In raising the prop.
Taxes.-You can deduct certain State
and local taxes. (State and local income
taxes are deductible only on Schedule A
(Form 1040).) Do not deduct Federal In.
come taxes; estate. inheritance, legacy,
succession, and gift taxes; or taxes on
any improvements or betterments. Do not
deduct taxes on your dwelling or house.
hold property and other taxes not related
to the business of farming.
Conservation Expensax-You can deduct
certain amounts spent (including
any amount paid on an assessment levied
by a soil or water conservation or drain.
age district to recover the amount the
district spent) for soil or water conserve.
tion and the prevention of erosion on land
you use.
Page 30
Take Stock
in America
The allowable deduction for any we
year cannot be more than 25 percent of
your gross Income from farming (exclud.
Ing certain gains from sales of assets such
as farm machinery or from the disposition
of land). Any excess conservation it
parses can be carried Over to the foll
Ing years with the same limit op~lylng to
those years.
Land Clearing-You can deduct
amounts spent for clearing land to make
It suitable for farming. This deduction
cannot be mom than 25 percent of taxable
Income from farming, or $5,DDO, whichwar
Is less.
Retirement Plansv iste.
Line 48.-411ease enter' the amount you
claim as a deduction for contributions to a
pension, profit-sharing or annuity plan, or
Plans, for the benefit of your employeeL
If the plan Includes you as a self-employed
person, enter contributions mado as an
employer on your behalf (but not volun,
tary contributions you made as an employee)
on Form 1040. line 25, Instead
of on Schedule F, line 48.
For detailed filing requirements, please
see the Instructions for Form 1040, line
25, on page 10.
Une 49-You should enter the amount of
your contributions to employee benefit pro.
grams that are not an incidental part of a
pension or Prollt-sharing plan Included on
line 48. Include on line 49 contributions to
insurance, health. and welfare programs.
Automobile Expenses, Special Rulsi
Please we page 10 for optional method Of
figuring deductible automobile expenses.
Other Firm Expenses.-You should 16clude
such items as advertising, stationery,
stamps, account books, other office sup.
plies, etc.
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 loss of a prospective by
frost, storm, flood, or fire is not crop deduct-
Ible. When using the cash method, the
value of animals you raised that died 13
not deductible. For animals you bought
that died, 'the cost less depreciation
allowed or allowable Is deductible If not
compensated by Insurance or otherwise.
Do not deduct personal losses.
63
%ZY
Pla i na and Developing Citrus and 0,
friend Groves-You should charge to capi.
tal, account expenses for the planting cultivation,
maintenance, or development of
any citrus and almond grove (or part of
such grove), Incurred before the close of
the fourth taxable year beginning with the
taxable year In which the trees were
planted.
DePreclation-You can deauct an al.
lowance for the depreciation of buildings,
Improvements, machinery, or other farm
equipment of a permanent nature. Similar
assets may be grouped together as one
Item for reporting purposes In the depm.
ciation schedule In Schedule F. In figuring
depreciation, do not Include the value of
land. Do not claim depreciation on live.
stock or any other property Included In
your Inventory. You can claim depreciation
on livestock not Included In your Inven.
tory of Iiiiestock bought or raised for sale
If you acquired them for work. breeding.
or dajry purposes.
Class Ufa And Depreciation Class Ufa Range
(CLADR) System and
(CL) System.-If
you figure depreciation by using
the Claw~ Life Asset Depreciation Range
(CLADR) System for assets put In service
after December 31-, 1970, you must file
Form 483Z Claw Ufa Asset Depreciation
Range (CLADR) System. -it you figure do.
prisiciation by using the Class Ufa (CL)
System for assets put In service before
January 1, 1971, you do not have to Me a
form. but you must keep the records required
by the regulations. For more Inf,,
motion, please got Publication
Inform thin on Depreciatloh.
534, Tax
Plea:e see the instructions an the back
of Form 4562 for more detailed Informa.
tion about methods of figuripg deprecla,
tion, other than the depreciation rulets
mentioned above.
. Income from farming is subject to
self-employmebt tax. (Please see
Schedule SE.) If you filed Form 4029,
do not file Schedule SE. Instead ,wife
"Exempt-Form 40271 on Form 1040,
line 48.
Additional Information Available
You can get Publication 225, Farmees
Tax Guide free from your county agricul.
turei age~t or Internal Revenue Service
office.
Buy U.S. Savings Bonas
Whereyou work or bank

14
a
I gig a is ass I Egli
H-ii IHSH ME i HH, HH ijiii HU Haii Hil iiii lics i s a
9.9 9 W999 t-Mg ighi igg~ :UST ?;IST Se is K ZA
UH 9.4 6~ 8 9 S&tie Nz;::.
IS Tals ante, VI;:. . . . . . .
im to i P1 Mi ii iiiii Mi iiii Mi HUI is P1 Cci iM,iiiii Hipf
HU CEOt i H,i 9 is H,sit
jj
'18
ffij j:':'j JCJJ
a ii a
jP-jj PjPC
is
jf_jj
a
J-2tj
as
jjjj lit
M HE: IM 9 9 9 9929 ME RUS C1369 S999 T.M EMU.
g g j j. ggu Am Ea I so I 1 6 mg §T-§A Am m, AM M9 M9 MW 9
ME. 9 9 E 991-1.911 ~M H A 9 N ENVI.d- MN M9 92"N gi5A g§-;:6 ~=M
U
Pi 'I I 'I HU Hell CHI p1m P-8 48 P1i Mi UH iiii Mi Mpg PIipii
,
It a its or, '8
8,0-0
'-a i P-6 P1 ii i P1 i usii Mi i is P!i iiiis. Usti
PP PC
Ills
RM 9 N a-l 9 W. -5; HV:2 9 9 '~
TES ijesi i.3 --~ 9 9 59- ME I R;19I ME HIE
- - - -- ----
989
M. ----- ---- -
-T is;j T 9 w N -4 0- VC5 -E IM IM ME 99H ZT19i ~~-4 f
SHE H9 HIR 'UH MH M9 M9 9-T§g H99 ~Ukg IM 0822 To ME
4 pe a --fI- e ---- ---- ---- ---- ---- ---- -----
111 as I Ho is is Sao a I gill sis as iscii -.-
.
---- - - - - -- - -- -- - - -- - - - - - -- - - - - - - - - - - -
f
17
I;
f;
A
LW
--s'lH 1-918, *9
- - -- - - -- - - - -- - - - - - - - -
:'ee :':' z.:.
.air rpj-s- jtpt ip'"t Ipps. icir it: c p tti. .
jig jjIg jjj§
a gig! ago Ho M a 0 fail gig Mi isal a 1 Im cr
431,
---Jq
,I ZI
, M-9 2 .i ;~:
: RH
---- - - ---- - - ---- ---- ----
M H39 SM i Tlv - ~ 1 9 -a - -S vi-Si ii -1 V-i :g 2 :A: -" . so
f f 92§9 1H 9M, M9 9:R9 -S -§ VE 'a- V§ RVEIA .8 6 11.81 0 t a mE
-4 a-f Z-9 -a-; -a- .9 - Snz; mt R 2: a, -9 -1-9 -_8 -§tI's -9 --e V -9 nn -- ::!-A W~ i 6 ~'9-
- - - - - - - - - -- - - -- - - - - - - - --
- - - - - - - - - - - - - - - - - -- - - - -- - - - - - - - - -
.i, P,-ji
cpci 4picp P.PC 1:jci ttc cici -t... c Prj cicl
ttcj e-pci tppj. U-pp PLU
is I a is F,I SM is a is 8 si is a s9if gig 11 3 a 8 T, 1§8 sill a I a 99 i 8 a
- -- - - - - - - -- - - - -- - - - - - - - --------- ---- -
icif Pccc 'CPP. jcPC -tt, b- - --. - -. =Pj- tti;
a loss I lls
Els Ises HIS slig Isig 8 a 8 F,
1 18"1 'a '1'991 ~9, i i
N
UN 9SH I zi v g :2 g § .91 9 2 §1 E 9 T§V pt A 9 a-: M9 IS
9 9 t 9 9 H va-
ZJ Z.- ~j 9M HTS Sc t
S'l I § T~ -a gnE mg my 9 k 7 9 5 i .;: 9 .= ME E I E E I § It 'F v
3 %
.... .... .... .... .... .... .... .... .... .... .... .... .... .... ....
.jP.i
Prip Prci PPPP tpgi Pjcj t-4 P P P PP j cpci LLpi :-igi
a I Hs MI is i 1 1 is IUlf III SIS ISH 1 is HE 1§86 a is
gi
iis 1 M
---- ---- ---- --jPPP
-- ---- PPPC icPP ---- ---- ippi ippc I ---- itpp ---- -- PPPP I -- jc,c ---- ---- j-!tj ---is
a 881 gills HE 9i 112. sil Ills IsIs ISO SH 8 1 gills 91a igs
p,-Pp
ppps, ppps. PSIPP ppps- PpSIP pppp PPP
Ell !- 1% 9 E l 9 22 9.'-' IEEE 5 9 a V I's 6 H Mg HR~ M
ppps- Wipg 1:pp5- pppp p p p P ip pppp pspp l- t;!.!.
j~:2§ -I E~ =1§6 SET§ ' ~ g '. pppp - pppp p"t S.S.
G a! . - v 8 E N r H i 74 is 0151 Eau BER S 0 a
pppp ppp5- 3-5-3-5- yppp ptpp
S. P S. S. ppig
I ~ -4 is to v nu ~'t 8- 1 Z"l HU 9:4 6 9 E 9 M ul I S 3 U19 9 -,~ 9 .~! 9 1 S §192
lit
8 ; 1 z
suoijonilsul-pue swjoj e LMIsuinjaH lenp!AIPUI atz
6

w
pEw t3pt! Gi
ii, i i"SH ii-H pHij 888 SH Egg
g
ji §s§JS g
kg
S881818 Is
Egg Hs is ii 11SH
-00 0-0 0000 0000 0000
2"000000000-0 .... 000000.000-00000-000000... 00000. -0
00.0 0000 oo..
-0 -0 ------------------
=Ooppopop 'aii ppf:i P.2gj 30ppp ppci pjolg rp3op P ppp PPPPPPP
ISSIS 9 gas 8 sisaul us isr 1 MUMS 918 HH ME sill HN
------------------------ ---------
PPPP ippe jptp PPPP PPPPI
pppi: ippp pcpp pppc
§9115 91SHHUH 982HU 91s is! MCCH 8821918
mu Rnn un gum Ing R.Tig mg -ugg g~.!n Sm Rug quR un-OM nu §14M U"I - --i- lpp,
is : IS
M.1- HHHH". P21.1- 911-U HU9 92H An agnun §w-2 W~ gsnn ov~~ nn~ un~, I
IM2 HVIA UH UH MHH& .1M19 Ml 9§0 -UH M12. gM "UH "UH 8M
HER HSIA~ 9~H t~-^M H-H UH 22M W"'M LM98- 6a~ Z-Ag~;~3 $TVs mus:R0
"" 1. "M a - HU- UN ig . :-i U:A~ ~ U§ . nwn
-00 0000 0-0-
H. Z~; ~;-3 Z ...... o......................oo..O-
2823: Mooo 0000 -00 -00 0000 0000 0-0 0000 -00 -00 -00 -~ 0000 0000
0000 0000 0000 0-0 -00 OR- 0-0 0000 0000 0000 0000 0000 0000 0- 0000 0000
--------------------------------------------------------
Lppp 4p-jp-j:i ipipt -r - ttcp U-jr- 1: cj nc- C-'-j m-g. tugj t:
gois sas1§111 sisisH, ai
H EN:
sisHIS sullis s s mail alsissals is 1i 88HIM'sM
gtg --------------1--- ----------------------------------- ----ago
F. 9SHIS 8 Egg ME SnUls is 18 is §11, t t lg"gt
H;;* -------- a a
VM29H HUTSP-91H H;S4H1M;St H H zz R ERR".- RUN -V'SM8 =Ust ~
--------------------------------------------------------
I
-W,9 'R -- -9,9 *1'- -g N
j~ v Vt M
MUT HIM
---------------------------- -
ZIA 9-9: rm 9~ss Is.-Stg WgEM ts:,
--------sT
r2!113;st§,.,:-ig~ks-§,§,-8 , !., -§-SE-~-EEI;gs§g~llmsgggergn-gg~t'
~'.-~,;g" Sig
u m-WHIR vu Eggs nu g~vu gag mu Em un
99912-1159
~Zwj gm EUR UH IS189 ME Hif .-M! ~.M ug. MUHHUMNER -4
UIE IM 99P, RES 9M S99-1- t-Hg NEU g" Munn 9 989~ iM: A TIM
E a a g gig U. gs '18 RE, Ug~ 5M 9z:6 . ............
------------------------- ------------------------------- --------ppp...:
L-pp:. :,g p pp P, pp
13 HsisillssElUs Egg Egg I HISSMINSHM
1
--------------------------------------------- - ----------------------
-- -P jcpp PtLP P:-
c
Ic Egg v8s
JrjJ
Es
!ff ~!-l g
!~P!~N V NNN !.P!.p NNNN
4 g '11,9V 'd ~ g !- iN :: M
RuHM H HH81
0
f
ul
- 00
CD
~~~ ---------
kp§ M- un SRI:, un ong ag-. - onig un Fos u-
n gm Hi's- 5M -"H Hi
------------ ---------------------------------------------
- ------
-
9~? -- 8 23.94 &4t= R
-----------------------------------------------------------a
:4 L2_9tt i-A It"~!., 1~3-8-*V-.* ontg U=8 ZI S H
T
MCS _9 V
MUM-;g gi~g- zaas USHR Rum Eno 1111:111 un Eggs. un igv,~ nal Ism un 2§11 m4
UP& suoijonjisul pUe SLUJO=j 9 LML/suinjaH jenpjA1PUj
H
'gj
qg
-3-
uoI
M
as
o
s,:. P4
.3
C6
g in
ca,
MW
WX 9' -a
ago
ca
.R
FIF
cn"
IL
Al
I

I
-----------
It I III HIItill"ll 1 ESE till igil 11,1 8 RUN S
8811 "It NWIM tW, tt -9-1-9tic s INI-11, PUP11, HitIMIII
;;z2;;z
;g
9 is 8 a S I-, g Nis ss 1*1 8 19"OM 1,h,- 1
.............
V MH UP HM SHN HN VM-j IRIN 9922
-.ew
WN S § g V1 S I-%! -11 -gt § M2 m ml- HM! It
- S. -S-P
,
G 3
.. ... . . .
. . . . . . . . . . . . . . . . . . .......
--g-A-W"Ok n
----------------------
tIlI Rjo,~ - -I,-- Et-3,~ "g - -g - . ~ :
....
v -.R
--------n
-.
v-------- &a -i:
-g
PippilAPP" Ir"Pit ItilA NVIIAN" 112!1 J~XPNXX! 1111IM! KPISP MOP ME jEje tj;2Pj jims JE13P fi-tims
§1 igm gin a MH sts 891911s, a saltHIMIMS I SM H S9111H
...............
11-H Hong A T-9 In galv-i H-H
§!-R 2, 1 § R 22 S R 3- -1 E 9 2 j 9 9 9~,j 9 1 9 2 H9 11 R 9 U, 5 & g § ~-2 9
MS. S-S-Ps- PS-5-31 S-5-Ps. S-P$-P Pf-P3- jAPP S-S-sq s-s-s-p j-5-Ps. S-s-s-p S-5-5-s- 5,3,5-P SPp~, 5-5-3-s- S-CP!~ NPP!.
SHUHIM
ESH 9THE -1.TM 2M ~ HAN, UH M9 Mu nt-N Hs &--a !-44-H 9-'6,t'F-8 8M 9§19 THWIVHt 12'IM-g T
MR n-------Mu §§R§ w-1 lul Imum J . 8 gY:4" U9 VIM ------ ME EM IE j§ SEq
--- -- -- ---- --
,Is za Ha8 96a,8_1 -V ~ S 9 R 39 -V- - -19 - -~e- - -89-~:~! - - -11- - -93 - -9 -P2 - 11 S 9 2! 5 9 t P PV"R
HIT. 9 1If - 9 1 ~ E 99 9H-f 8- § u: a- 6;-! g z i i
a HHHE 881§111S Ho at~lfl t M to so to I a Nis 9 gas
ypulaya sy;qlam !4W4!3 wwvl !Sillvxxx P;CxlVitt J~~l
911,1901'stigoHIPI to Es toI1111811111al mignal is ass
P5.5 .........
AIit- ngii -r-,i a-Zi TaH. i3fis 19H 1391 ONE H92 90H 9991 SEH
g PP-5-5- p.q-pp pgpc ppip ppps- pip$. p;wj-, 4m. ~.P. zmPmj,,
nngaamm 29ra gigils SHUH131
. H A29f
Miassigli§9.99 "H Irv fillIM ing 1101 sin -alip's 216f MH mg MN 99H gi~z%
- -E -§13 - - -§ -19- -Z-a -§ttV-2
§ 1 9 9 9 9 1 19 911 111tt ta V v -N -9_9tv -Am -8- -09 E9 9 a 9- 11 § F
z.. 2.:.. ~...~ ~ . . ~. .... ~w?. zo. za. 2.. j. jw Z.~ P 4. ~ ~. ... . .... ..
9 099 99,23t 11,19 THAA On Ing Wn
g ~Ojj REpi2 gg~jZ gg-zi f a
a Z: 19 9 22 9 E3i j4., i, j8,i Zi p P9,iip, fi p, 51 S'.-' P! P1 P! P1 11' PE PEP951' ig, P910 3~, P9fP1 P1IP2 P I I EI E E 9 if 9
. .... . ... .... .. 5-Ps. --p-
V N- -§,-g V-9 80 Vg NV9-1 -E -1 V-Tt g g j
~~Jj E#11 elsisis 13jill
sa Big 8919618
wt 9M W921 H93 13M iiii gas
11 1jaul 1p;8;
in1 mvic agn #111tillt; I I Egli
J~Ep#IP2.1enme Jail J~
rigH is offigif a F. 81lilt INEM M'sM Ms"affir. Ban atlill win un
--ps. PS.S.S. P1913-5. j-PPS. PPS.S. S-91S.S. J-PS.S. S-91PIP PRIPP, PPPJ- PIS- -P ffl-js.~! S-~:~!P PPPP P.-P ps-ps.
SM9116MR.-I 199 991t, YZIS P99 H29204 EAH M~ IM
UF
HR UP H-H ME 19,311 lo-vo gug His ME fiat HUI 9H.H.Hi U99 HN
...............
.
m
-29
--UH -M EHHUHM!
UHM-9 pppp pp HU ifilij:9i 9 2: RipHUMISHE is -im H-H Ing un ma w. ;3;:sA8gi3 --in mi Z1. T&H
$, -------------------------ppp
g N
gpipHUHH91 pp ip,~, SEE~P,iffiii
---W son list.
suoijonilsul pue swjoj 9 L16tisuin 198 lenp!AIPUI
9 Cn
cn
A
cn"
. i
i
"a

0. V Et
;55 ,
1112; a RNjilt
C- E 6~
gm 3 9 :54,
- 25-98i
M
WS E.
Co
I
04.un
Ix E4
4§
CD
o
r-
of
Oil-
a ll
Individual Returns/1977 e Forms and Instructions 245
R~4§ e;;zs Sral
ME 5M ISH 0 EM Me 11H alza am gn~ Rgaa - - - - - - - - - - - -
ME 511a
k~VM :;Sale SAV~ k4k~ kkvn
nig Eggs
- - - - - - -- - - -- - - - - - -
IR 1AAR AUk "1"; 11! ~§ na
~1 -~ It It It -tlt . -1 .
- - --- - - - -- -- - - - - - --
.
IM loll alai 11321 IIH I§Rl C r 12 1 1 2 -. -1 ~ ll a
alai 111" d e ' o . . 41,11 . alai H
e - gggg.
511 lan 13,32 IR
11" alai 11,111 df 1910 4 a Iasi IIRF Ora 1 aH.
C, - ---------- EMA A! A 9 R MR WM Z E a
RUN M& !2413 MV w:§ ns§ Rm I E, ki 3§99 lp"!
Z Bi a a 1§91 Ing gi§i 611p n 3 Isi :1 § z E Has
'auled 2=3 gill I
Q
RE IRS
al 11 a I Ma M§ S a at aj~k IEEE IRE&
1 5 goal sill 4a 115 'sdd -se e Fea.:
;
a il- .
Mr! gill .4111 11.5l 1115 HIM! sall Is dir 'Read dee
. . . . . . . . . . . .
. . . . . . . . . . . . . S;z M
- - -- -- - -- - --
919p, HUI Rail IM211 Ulu alai 1151-1
as 4a45 1. 5't I I 11 F E
Emus n.;ZR Rug MA HIM
111i Egg 111! §M 4514E 5511§ §11F 1211
111; 1119 11F.C.Ff Hollow §112
Mt
. !p--~ up
9931 M-1 IG199 HAP RM 11919 IM 99§9 RM W! wg gw w~
'M ME -,Ep:: 4911 IM alai 99?5 RM R
~Nvx =Gtv R~;Z§ Sgsj jpj EF15 j§jR
Ideeld 1616.61d "6,6"e 16 c.;N tedta d~:- -Z~: Zl~ ZZZ,
pagg ~-Rvsq wzsl? 1RR;!A vA g ~JRR iRkk Nul Pun ~o
'I ~302 L RR RR R Ulf V453 RM MR ~ , !M HM gUR HIE EI M
2i
, 119cR ; . W5. H96
all
AM HE
up RR11 MIN Bfl .1 -H 55!3Z a.; MwiM
i .6.6.6
cl .65 .6.6.6.6 '"'t
HU URE MG RFM HIB 9M pup 141! pmg ;.wcm RR§ &;i
n-!! ~! o;
.... ...
a a ;
HER I.H., q .6.6.6, pu pin likk VM R.~§z ..." ng? .1.1or En;E Rug gpg Dms§ mg gin m; PHI
.6.6.6.6 .6.6.6w aaoiaaaao; ao;.. o; a.;.;a aaoio; aoid.; a. *Ic6of
ME ME !:Fu xqgq BRIJ jp1i
oaq qxq&Im agal I'm EFF gI SEE& San SERI SERI §FRR sin
IWIM tMIti liti;i "*; timi
tmwl Mi si tt
392 R; f : f : 14f RU N Uipf
r SUN 8,01RIf UN.
alfil
1182 Rcslqq 4449, 4510 UFF UH IMS JjI§ 131! Ills Jul §§!E Ran 3213 !qRS RZAI
rZann ~Rgg A~RA
Rkn ~V§a In- lip mls Am nVa ing Rgn, ge-n--anz
n n
un
. .... '.1
-6 .1.fM M=
i 6Z;.f M.M Ni-6 t6.6a . eo .6,6.6,6
Am mzv gm m§ mu Ful fig gjin m-5 g~R! -2,:n R;ZR~ nRgE ~t~RG S~§q ~@;Z~
. - , - , O.Ni.6 .6.6
t
'62~6.f fh
d.; I.Na .6
U,6,65 e "MM'~ ~ &ea N=
6,
CM EM 11-H '119 MI !9H V ~F F Ag Ella g9i'M :MH ME H-H M9 H" M21 M!
elele 16 59616 les
's .6 .6.6.6 ~~ZN6-.r 'de e'Ne'd ~6,6,6& 6.d. q.6
'Nee
§;!AR 12slv~
nin M-~ F~F~ ~E R -Mug n V, ~pl pR4 gng aw Ti;n ma Rg~z? un nu
6,6.6,6
"MR mi aiz!2 S;n lgl~ gm . up wa.
vm FEE.-- ~ §4 gRPT ti:m- nu
=M ~Z'
.z X:221
Z%ZZ~:
=65 5.6.6e 'Me~ 'Wee .6.6.6.6
. 'd .6.6.6.6.6
1z
§R ~R un; nfi g ~-m gill
kg~k &§--4 32 R xk
m quE lz:k~ ngv Z~; 'Zk
Rkz-
e
ZX:,z
H R RM IM RE RUA E§1~4 1 no vg~is 12 p F- Mii SE19 HIR 9999 MF
.6.6.6.6 S.6.6.6
§Rg §§?T Ama.-
12~.-
~ n - AR
nn Mug
zpq
,
qnj~: ~amk ~A P
§ ok 615U % ;-wk 4Rpup R .6
~I
tz- - , -- -4
* -- -6. . .6.6.6.6-- 2 .616.6
ul agal IASI Sjs§ slij sin 1121 1:f
ISSI
2 Nist
swif Ef aii X R RUN
~, X 11111 Rig
62,11gaagg EFFE, zin §FRI 11it! usl
NIN
Uga MR U4 Na
S S IIPF Jill §I?F sla In
IN"1 1111 if 11"a d 11" da RM "a" 11111111 OUR 111111" 411 15111ala
UR R R gif
o;
w
IL

---------- ------------- -----------------
----------
----------------------------------------- --------pr,-C:pc
jt:tc P------ ====r1i
I's a 8 8 a a 3 a 8 a --a -1 '19. i -a
%9. cr
2- 9 3-11 MI 'I'MME VVIS 9 M1,E -9 V2 -9 g I
-------------------------------
e:-:-:- - - - - ig MA ME 2 8 513
- - - - - -- - - - - - - - - - - - - - - - - - - - --
1 t "R g -§'B: b n -§'§ a 9 --,Sc 'E --,E
9 9
e:- - - - -- - - - - -
1111 ~ 2 -111- -E -9 -ME- -9 --T -9 -r- -i"! U,19 1 ;j 9 f 9 2, E 1
- - - - - - - - - - - - - - - - - - ----
-8 1. -§ -~ -~ -g -~ -~ -. -~
9 9 H~ Ii i '&' -U'l,2 - '-8V - Y , 9 'p.ft - a a g U8
-- -- -- -- -- - - - - - - - - - - - - -- - - - - - -- - - -- - - - - - - - - - -
j.!tp pppp pppj- 4.pj-pp
- - -
.
-
itpci
-- -
j
;-
--ppp
- - -
P3-s-j-
- - - -
IM to-SUP1 PHU pffi Egg 8 a . IBM HU 9911 gigs SIR 9MIUR
-------- ----------------
---------------------------------
P P P PP P P P C P L t P. i P P U-i P P P p P P C P U- j:i L !: P P - P P 4p.tP C P P P P f C J. c j A s. P
691111 MUSS 118 . Millais 8 SSE §819 §690 99115 Isla- HIM's
g g g g 9 6'F f 9 11 al is 2 19 1 m 9 9 9 6 ii W-E O'l "I f nn H,
3, 3. P P S. 5. j-.1 5. S. 3. S. 1-!- P N
"9 s 9 i 6 5 8, H H 92 H § 9 1
3-j-5.3. p S. N N N
a 6 E: R3
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ppp
tlt t:4
- -
cj P~,-
911C g 'H p" 11 HI 9H i
a o 1 a a a a 1 a S is H81
:4
W
1
f
9 CIA
88111115 1 9 ass a MUMVIS al ffi s iMills
SIgH lag 3
. . . . . . . . . . . . . . . . . . wpps. pppp
-15V - - - -999-11 - - - -ME - - - -;UU6 - - - -i:~=§ - - - -O-RHO - - - -IM - - - TH-11- M
NUF W919 992p-4-1.'M- vjng :u~g giu- Has, 'Mu-91H UH 8UR UH
am-19
ppps- ps-ps. psss. pppp S.P. w ww-. w. .. p
HH'UH FM
HH 41S19M HIS: Is HCa n:ci ass cp-ci ti~ip c-.i ciitj tt.-j rjrj vicp t-ftj jpcj
all . as 9 Egg 6 8 68 8. a a 8 si 0 Is go
iffi HH S i'11H iii s ME H s pppj.- P.1-ii:
HE HI S U S 986 sr. I ar, HI S, 8 9 a
0299 MIM M9 9 H v HU i 9 T 9 9 2 i i 9 §Rgm !!;! Q a E .1 ta fs N
R-M WRRN. t! ~ ii 54 4. 6 se I e 8 is 2 gn a 13 V Q8 V A t3 93 Nizt. oooc, oc,oo ooo. oo..
,
oooo oooo ooo. o-
o..o oo.. o.o. ooo. ooo. o.. o... oo-
o, oo- ..o. o.. . o.o. o oooo, ooo. ..o. oooo ooo. oo-
o.. -01 ~oo Clooo -oo o-o' oooo oooo oooc, oooo
ocoo ao-oo oooo o-o oooo oo- oo- oooo -o ooo-oooo-o--oo oooo oooo
ocoo, Q- o- amo- oooc oc,oo oooo oo- oooc-oooc~ oooo o- -o
ii :-:-ii :jc P pppp ppjj P ci p
ppipa H"i a fici 0 a 8 PCi 1, :-,:,9i Sir 98i :, 9 HH 1 8 H 0 is 1 URI 11 US p 8819
p .9
.
UWE HU irs-pir. ass § isiis, fifil tun a 8 is H19 t Is sr.
icic
8 a
jp~ti
as gigs cls P1 ass
1151 un uuug~g ~ 9 Mi 1219 HU T. 22 B- I f 19 M9 92H 19 .1-i MA
uk~ g g:.2 g Rism FEER ~ 2 e. S- E f E uIR g E mg 5 A A A Im un 2 ~ g g
Aa 9 S~2 9 ~ 9 Y 9 F 9 2 g;-z 6 Z-~,g g ZN
99 tn bt IMG. ooo.
9 9 ggi5 g~gg 4. -..o ooo. o... -o oooo oooo
Rmacl ZMT& 198rs~ wooo oo- o-o oooc, occoo oooo oooc, oooc -oo oo,~o oooc,
..Oa ccoo oooo -C, oooo oo- oaac cooo cooo oooo o- oooo
ocoo, QoQo occo oooo Qopo o- o- occo acoo coooc, oooo oooo oooo o-
suoijonjIsul pue swjoj 9 LL6L1sujnj9H ILnp!AIPUI
'n
--4
Cos
ma
3m
3. CEr-
P-'- 53 1.
o.
PC Ca
go
o5
a- ca
o
go
3
o-2

Co
Individual Returns/1977 * Forms and Instructions
qisp -IRNI mg ~S§A "ep~s Hn nu 9--w -q nu 9-,§ .95A Sk § §
U, SW ~~M
w!g Ann F§n mp I k:! I I R
CIt
-4
s s R R
ZZ
2a nR 'S. 1; 1;
-k cialqa 6
H ~"T'gag` R5 - R -R 5 RPf- HP; V8
11 'sksk SM M& 511§9 MR S191 22 1 511H 1.1.62 Imaaa SUR I .
.S IM ;.i Risk acg"a. 2M
I - - . - - - - - - - - - T V
C4 -, -a 9a -- a Z5 2~ "-- l & 'i 1; in 'i'i-i
i ~;e St Eli a
'i 6 H ME
1; ~; 6 ~i
:.;.;a UH a "; if ;
HH
aaag
Z 2 Z i
122192 I'M
Z 62 1IFF Z a H11
2.1.fa §M
aaaa
!SH
:22 IM
aaaa MR
---- .: ~ ---- .:,z -- z :!ef ---- ---- . - - ---- ---- ---- --- ---- ----
; 2a a
ME 911-Bi HH ,9991- MT 9999 q VMqG %~-Ig
n~ N cIA ~~ V11c1L
ssvx 'I "t
2 M;e %D;AV S;; g a
11L CIL ""
kEi~
. . . Vn8j
Ut - - - - - - - - -t - -It - --t - -~ 2 a
--t 't -It --~
- - - -
t 2 - ..
- - -
~Rg~ ~q - IQ g a
IR
IME A 9 P
"~ -:.z ~: ~ ': "Z
SUP
~!"- ~: -: RRR
~ ~: ~: q- A U I C S3 3 17.
- - = - MR -1. 9
~ ~:,~ -~ ~.:
M§
1: 1~ ~ :
E
~:
H
~:.~
R - F
~~
~:
H 'n 4i M~ § :! 6 A ~ § 2. 9 ME WE 9 kR i5M MT S. AL Z ~M Mv
Z ~:
9 iF9
- - - - - - -
RaU RM
- - -
P -1 @ S
- - - -k - - - - ---
~% ~: 1% .
- - - - - - -
!~ - Ei g
-q -. - - . At-M . . 99U - R.1-1i A
Cj Et 9 a
aa ~ a.,4c,;
cli L . .
c4 ~ 4 R G;tf
C4
CD
C4 ~i a a ~4 4 cj a n" n" -c4 - i -c4 -c4
N "
1 1
c i 'i
cq a c4 cq I; c4 ~v 4 4 14
ME M9 ME
cli 6 c4 ci a ~n ~a -a -a ~n -a
a a
n
a
E
Z a a q
~4fiA R M i
ciai a a'4aa 14 , * 14'i c4 Q cq cj ci
R
'~
i ci a aa- FF~? FMV n~" RM AW, Am m~
v! ,t vm my, gcm nu a a N 4 '~ a
aaa,4 acqa,4 a.,; aa -N N- aa;~. aaa. a c4 a aaa a a 4 a a c "
.44 4 f a
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
'i IN W ,L ~ '*L ~
mR
cj,4 a a
U's dffe EE
un up §m
- ~ ! a, 4 ei siiz.
: f 4 Zj
-
.6.6,6's
ENNA V.999 RARE AM $3M &M M.~ HIR E19H I"SM MIS IMF: Z Ml~
IM ~~F . F
E HE@- RM § 5G, Z, S Ma p 27 R aM I
i SH M 0 M~ r II§§ HUI HIE 9H 9 Ml- c~ -
U99 H§6 IlAr. nal -EgIR Z 0 RRRk YVAF R 9 Aq E
-.
R
-.
ICi
P~i 9; ~L
13
AM RM Wv 11 A vs agms gteNn RSSP c X~§ t2 ' NAIR EL ~ t
REAR &~Ri
2 N nR~
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
!2L
R G 11 USA NI a
- - - -
MR &!? I @ 5
- - - - - -q -- - ~Rn mi~ m~ ml
. Ilk -
- - - - - - - - - - --- - - - -
ing -.- .A
crt
ml w: Rux gme c:L
gm nn - -7 - - 1: 1: 14. c4 ciaei-ei Na~ n
al
a 11:211 !111 1001 111 a 199 ;i 941! 2 in IRRI a 111 Rm EZ221
a I
44
:! :F:! jae - - -4 cz - - - -C - - - - - - - -f - -f -r . .
- - - - - - - - - - -
isaFF 1111 Isla §IFF Ills
-M! 4 Z k q HH 182 1 § Isla Igo.
; c A 2 .0 §§F~
554-f 5212
- - --
. a ,4 5
U 2
- - - - - - - - - - -1 - - - - - - - - .
- -:f:f -- - - - - -
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
R RE 4 .
M312 NEER unA Im Ing n~l Mn Ma AM VH2 ME I H
1 ME Z A 9 NAP.9 Mv. r.- 14 -M& UH MI 6919 V.99 g- MH lip Z ppas
qv;vz& ME sail IM 9 a 1319 M~ MR RM 1E § Z IIH 91.-H § I.: 19 § 9
6113 gill Mp- RM rM Z 9 i 1 3§16 IM Egli II --.I I
1 EM I Z 9 i III 1 91§1 9911 HIS IM - - OR RR
- - - -
RgqRk
- -- -
§R§§ RR4§ !P -.AV
§VNA
- nnn - 3 ~S
~nn- nsev pRk
'19H gall 611k MR RRg§ R~rR woss Rask ~Rqx SRgA AAVq ARRR un uin
1191 c! S 1 11,11 112 aI S!1 9111 1 a gall lldll IIS 1
114 pp 4444
Sail- aIV! 1119 1111 11Hi 1111 1 a Vai gall Ilia SN
"1 -1 -- ---- f
--- ---- ---- ----
1
247
4 ab
12

248 Individual Returns/1977 a Forms and Instructions
(4
4)
31 -
323ME= CH-A! MAN A. Ial ROM -_~RR2 ;s
3:4 ®REM Hana T-REFIR
Una
x
ass --n-HE HR;!H5 _ nuzz
-3 F
n _TH2A AR E
MEM= EvME!
3 2 E V 92 . 2 =2 a E, n
-------
_=n;3
.
'12
a i M OF2
a-v - zscis;! 2- a zza nsnpq
is
-.2-agennan HEs=R
a.. HE=__ MES S323:22nuzzam M CX AV
p= 9
=Lk~ ism nnsR~ smvmF gn!EnA
_g a
==M_ M= sgnnE T;sm~x ==V~E as 7-
SgVE
a 5 2 4--2 Z!2 -Z Mm": :-R z---
ng! UX E := Atsain E R R!=
Fmg =R!~H wez?~ --AVEM
4 ass
S;= _=FEBF=z - ~!= _ n q
9==X
SM13so
Ps
ags= =V42.
aign V=au =-iesz OsSFA
r
a
.
--------au
i; zz x; t; ~ S__ -EnE
- .
M a pm P!2sMv:!ZVew n2wev z mu
_1
= G Wi 31
-
_P;;R Z-9-imm- HsM;;_- 4R~=
=sE EPEE!MA=E _V_ EM-_
99 A kg- ~ ;Z p
RSM In
ans -----------
.22E E-=;= E sm
1
. -
A 333XX a22 - M-2-------
------- = Z:il ---- MSTEM
-
2 T _Z52
22--se - tn~TE
_2332=49 ---------- - - -suzis
a
j a -::Zn
as-" OSEM;u ~;gvss _-ussg
-----------
=91 5E V ~ GE 9 E
ai
1'1- 'EH
MB
U)
CIL
E
HE
-- ------------ '555,55 55,H' M
ig, "N'Nij;
'UR
121 . 5
11 44I'M
-im
Xss ragas son=!!
Zma tmH?E _;ZM_
jg= F-R;3g- _-_ 2 je-
- v== ------- Z==z _11
js_- =ZZ.- --H!qE
ago
iin=HR5F:
'z
8292M 22M
ang
e - - __
--s
Z--5E§ R§_-En =~V. U
asZ MERE
ERnis
EUU
1ZHE
s2=-R MM-2 UEM;_z
RZ;_ __"Es- a V IINS _=;s= MAvER gzEEE
az-- u--n-am -_22=1 _-.-F§u
------ 7
e a
:0, EE
E" Z '- - ;
B. g.
1`~all
ig-eal
1 a -1- 12 -2
Pi
1~ - F;22 s=z!! --aggin
..... . a:;-- 22--ts-2
.-I
T -.~a
saa
,
--- ----------
MZ2 v?n,~x Agmzu -REHR
i
A 3
as-- RERHn HER 2! !
a7v -------f,-'Z
429= UZZ-8-8
N
z
8
1"
M., ecin. 9
sJ.1-
., -;;2 - as -_ 1
§,=na 11 ~z - ass 'a
_=4
S'Z Patle.s.n
_.z=N3izMG nssz§ - ~=!Mie ---n=z=
;Vs_-s
suagiz or EM.-=r
r a-
-av
is
V
4--Z §t!'nE RK_HR
iiil! is 511P Hi iii~i i ii] i~!M: Hi Hiii i i i i i J i 12--.98 XEg
le
I
E
E;-
!h Ah-fix.11111
u
A A
an Tax Rate
Schedules
SCHEDULE X-Single Taxpayers Not
Qualifying for Rates In Schedule Y or Z
Use this schedule if you checked Box
1 on Fcr~ 1040--
If the amount Enter on Schedon
Schedu [a TC, ule TC, Part 1,
Part 1, line 3, Is: line 4:
Not over $2.200 ........... 0.
all
SZ200 $2.700
$2.700 33, $3,200
200 $3,700
$3.700 S4,200
$4.200 $6,200
$6,200 $8 200
$11,200 310,200 '
:10.200 $12,200
SI 12.200 :114,200
4.200 6.200
$16.200 $1 $18,200
0,200 U0,00
$20.200 S2Z200
522= S24,200
:24.200 928,200
28,20D $34.200
L4%
$70+15%
$145+16%
$225+17%
$310+19%
$690+21%
$1.110+24%
$1,590+25%.
$2,09G+27%
VA30+29%
S3,210+31%
S3,830+34%
$4,510+36%
$5430+38%
$5,990+40%
$7,590+45%
=1
a-
S2.200
SZ70D
53200
WIND
so
$6.290
sa= -
$101200
$12.2DO
$14,200
S16.200
'18.20D
$201200
$2Z.20D
$24,20D
$22,200
$34.200 $M2W S10.290+50% $34.20D
$40,200 $46,200 $13.29G+55% U11,200
946.200 $52,200 316.590+60% S46,200
$52.200 $62.200 5=1904-62% 02.200
$62.200 $72.20D $26,390+64% $62.20D
$72 20D $8Z200 S3Z7904-66% $72.200
$82:200 . S92.200 SVIA90+60% saZ200
$92 200 $102,200 $46,190+69% $22AW
$102.20D ............. S534190+70% SIOZ200
E.
=M: na5! _ a =25 ----- E
N.
N7q 2-171 8. .8 ~'fi:n 99
8
m
MR. N~
d. 9 1
_8
.25
IL
If you cannot use one of the Tax Tables, figure your tax on the amount on Schedule TC, Part 1, line 3, by using the
appropriate Tax Rate Schedule on this page. Enter tax on Schedule TC, Part 1, line 4.
Note: Your zero bracket amount has been built into these Tax Rate Schedules.
SCHEDULE Y-Married Taxpayers and Qualifying Widows and Widowers
If you am a married person living apart from your spouse. "a page 7 of the
instmctions to see if you can be considered to be "unmarried" for purposes of using
Schedule X or Z.
Married Filing Joint Returns and
Qualifying Widows and Widowers
Use this schedule if you checked Box
2 or Box 5 on Form 1040-
11 the amount Enter on Schedon
~zhedu!e TC. ule TC, Part 1,
P.,~ 1, 1;,e 3, is: Un. 4:
Not over
cut.0
0- .-
............
$3,2CO -~4,200 I'%
$4.2DO S~1230 $140+15%
$5,200 $6,2CZ). S=+16%
$6,200 $7,200 '4:~+17r~
$7,200 $11.200 $623+19%
$11,200 $15.200 $1.3110+22%
$15,200 $19.200 $2,260+25%
$19.200 $23,200 $36260+28%
$23.200 $27,200 S4,380+32%
$27.200 $31-100 $5.660+36%
$31.2DO $35-00 $7,100+39%
$35.200 $39,200 $11,660+412%
$39,200 W,200 $10.340+45-;6
$43.200 $47.200 412.140+48%
$47=0 $55,200 $24,060+50%
$55.200 $67.200 $18,0641+53%
$67.200 $79,200 $24,420+55%
$79.iOO $91,200 $31.020+58%
$91.200 $103,200 $37.980+60%
$41200
$4AW
$5AW
$6.200
=W
$11.m
$25wM
$19-00
$23,200
$27-100
$31-100
$33-00
$39AW
S43,200
S47-100
$55-00
$67.00
$79.200
S91.200
!103.200 $123,200 $45,180+62% $1031200
$12.3,200 $143.200 $57,68s+641% $123,200
$143.200 $163.200 $70-180+66% 4143,200
$163.2DO $283,200 $81580+68% $163,200
$183,200. $203,200 sq;rtsa4-sa% siss.2oo
$203.200 ............. $11.10.900+71D% S203.200
Married Filing Separate Returns
Use this schedule if you checked Box
3 on Form 1040-
It the amount Enter on Schedon
Schedule TC, ule TC, Part 1,
Part 1, line 3, Is: line 4:
Not ovei $1,600............ 0
ov.-
$1.6m
$2,100
$2.600
$3,100
$3,600
$5.600
$7.60D
$9,600
$11,600
$13.600
$15.600
$17.600
$19.600
$21,600
$23400
$27,600
$33.600
$39,600
$45.600.
$51,6aO
$61,600
$71.600
S81,60D
$91,600
$101.600
SCHEDULE Z-Unmarried or legally
separated taxpayers Who Qualify as
Heads of Household
.
. Use this schedule if you checked Box
4 on Form 1040-
If the amount Enter on Schedon
Schedule TC, ule TC, Part 1,
Part 1, line 3. Is; line 4:
Not over S2,200..~......... . 0
ove-
Out at
$2.100 1 14% $2.6oo Z$3,200 14% $2,200
$2,600 $70+16% SZ100 $3,200 $4.20D $1401+26% a.
$3.100
$3,600
$245+16%
$225+17%
$2,60D
$36100
$4.200
$61200
$8,200,
$6.200
W200
$10.
ssoo+~O%
S"0+19%
.040+22%
$4.2w
$8.2W
$5.60D $31G+19% $3.600 $10.200 S 12.200 200 11 U,180+23% $IQ,=
$7,600
$9,900
$11,600
$690+22%
$1,130+25%
$1.630+211%
$5.600
$7,600
$91600
$12,200
,14~201)
$16.200
$18200
$14,200
s C200
S 8.200
$20.200
$1.940+25%
PA40+27%
$12,20D
$13.600 SZ190+32% $11.600 $20-100 $22,200
$15.60D W00+36% $13.600
$22.200
$24.200
$24,200
$26,200
$17,600 $3,550+39%- - $15,600 S26.200 $28,2w
$19,600 $C330+42% $17.600 $28.200 S30~200
S21,6DO $5,170+45% $19,600
S30.200
$34,200
$38. $34,200
200
$23.600 $6,070+48% $21,608 $38.200 $40.200
S27,6W
S33,600
$7.030+50%
$9.030+53%
S23,600
$27,600
200
$40' $42,200
$46,20D
$42 200
$46:200
$52.200
$39,600 $12.210+55%
$52.200 $5412=
$45.600 $15.510+5C% S39.600
$54.200
$66,200 ,
$66,200
$72.200 $72.
$51,600 $18,990+60% $45.00 .$72 200
$61.600 S22,590+62% $51.600 $78.200 .2,200 '00
$71,4500 $28.790+64% $81,600
$82.200
590,20)
$90.200
$102.200
$81.600 $35,19G+66% $71,600 $102.200 $122.200
$91.600
$101,600
$41,790+68%
$48.590+69%
$81160D
S91AGO
'3122.200
$142,200
$162.2w
$242.200
$162,200
$184200
............. $55.490+70% $102.600 $192.200
S141,200
S2.280+20%
$3.540+31%
616.200.
518,200
$K4.160+32%
$4,800+35%
S5,SOD+36% $24.2001
$6,220+311% $20.201)
$6.980+41% $21111200
$7,1100+42%
$9,480+45%
$30,200
311.280+48% $38-200
SIZA40+51%
$13,260+ 2%
315,340+:5%
S401200
$42,201)
$46,2001
$18,440+56% $52.200
$191760+511%
$216720+59%
$54.200
$65,2110,
$30,250+61% $72,2010
s"'920+62% $78;200
$36AOD+63%
S41A40+64%
$821200 ,
$90.200
$49,120+66% S102.01AD.
$62.320+67%
S756720+0%
$119,320+69%.
1122.2110
S1412,200
$162"0,
SIA120+70% ISAPM
s-
.f th. ,
.-at

1977 Optional State: Sales Tax Tables
Year Itaxinal deduction 1. irawal
be .0-W thes to- as W. -I- as, now 11
Income Fix,fly.ox(pric.)
Mississippi gra
Missouri .
F.114"(Penonlra Familytim(pimens)
N-.d. .
Family sit. (poves)
of "I -01 1. = cr I
it. I. tc~ " bar "u-16: Too ofdWe
kext16111, as 14.
the. 811,991 In has Man
00. - Iser d foll-
1 2 See 5 5
:::::
1-ar."..
1 2 3 4 5 5 1 2 3 4 5 * ? '
-
1 2 3 4 5
......
09 $109
: % IN 24 115 135
. 100123 1" 159 159
$37 59 $53
$50 156 $63 Sn $61 $ 3 $6
$'1
521 $9 $as $659
%7
46
55 611- 76 93
63 69 6761 95 N 94
N
48
etv 1;-nod the SIV.000-19.999,= 110 Is the
.1r, 5=Vtor
sup L-Sebbect Little than a, lecon" of four
" bection
2
as 78~ 792
96
55- If
"
If
d
Winner. or arch $1,000 Is -
1-sso"6m
2-
I'm9 tax -at ree local 1. Son
0-
1'
Sup 3-for each 11,000 Is a It
:00S_$5, 999 113 2 15413 163 111 182
19381 201 2N
136' 173 220 225
. ,
517111 03 Z1131 0 2~6 in He 21
. 9. 999
1
0 000410
999 167 2170 244 2 2 73 295
176 23 58'
an
3jM f4,199....
0 79 17 N IN IN ill 01 11 c 1" 105 ... 111 it, 62 as 81 So ill 21 104 109
67 V 97 IN 112 121 69 89 1
73 95 IN 115 123 133 75 97 111 1i09 120 139 75 98 1907 a 108 in 121
71 111 121,1 13142 11431 1" 11 81 ill It
11 IN 11 111 21 105 116 " I" I's
29 137 1.9 162 47.112 125 12' 112 137 47
S4
6:9n
o. found to
1 If r.."I Woome-$1
las 0 lermad .1 024!
b-.
.1 US
04 7
1 : 0
1189.4 7 00311.999...
289
304
11151 , 2
NI'S 12'D 1" 'o
. - 1. 293 335 358
89
211a 11 an 1113 32 1 11
]234 IN6'
. 241 an
fill
0' I'M'
NO 05
"I 08
.21
W
1 16 132 140 IN 136 145 1159 171 9; 9 jig 133 41 1IN
156 1
123 110 14 162 166 1 92 97 119 1
26 15 74
94 129 147 155 162 171 ISO 187 197 77 102 10, 1133 39 - 151 160 1161
171 IN 1.
1339)
149 153 174 183
IN 135 151 68 26 205 07 56 159 In 192 a,
11" I 1 :11 ::1. "1 ~83 211 'If 115 111 Its 1. 211 1 12 1- ~63 ~15 - If.
14 78 97 216 111 1571 1174 at 18as2 2204 IZ 225 234 U7 1571 1770 7 17, We 219
ll ill 5, 1.721 113 2112211 213
1 22
234 1125
.. 6'3 1. 111 no 113 111 1as 181 184 111 22,
164 199 1" 2o~l .$ 221 241 '111 195 201 229 252 1 30 168 191 191 222 215
1 HE 169 195 51 33 16783 all 201 2W 261 1 I
2
n 173 191 197 229 43
New Jersey New Md- a New York 4 North Carolina a North Dakota Ohl. I Oki.t- .
Income I FsaiweaumusZ
am. -
Fasily tue (besonaIrer Fabily she (prions)
owl,
1 2 3 4 5 5 192 3 4 5 0 5
Flally sit. m, (P-0.1
1 2 344 5 _L
F-Ily sin4-1-
iselly ts Cp-. )
a
1&2 3A4 5
5 1&2 sat 5 5-
1 2 3&4 5 5
Under as. al 13,011 spa~ i
.....
f: I*I:M
000- 12.M I
14~sara 9ife-_
.Sill
17' 17"'n
inI'MI'l
99,9=
1
56 65
74
go
as
106
In
30
IN
ISMI
1163
$3
477
1? 7,
11
102
110
19
26
in
141
1'
1 '5
52
11"Is
358 177 are $22 11 $92 $92
11 I14 1" 1231 12118 111 la
93 09 13
94 123 1129 143 116 153
101 35 7 1 " 1 57 163 1 171
12121 1 Ill 58 151 111 112811
131 169 1, 71, 83 194 04
139 179 1% 206 "" 273 220 235
1 47 189 20 217 237 20
55 1" 22 227 250 $37 $44 $S3 N $56 T55 $2 $53 US $72 $72
49 57 71 71
60 69 79 84 M 65 '1 " 1" 15 107 9,
70 So 81 92 101 90 log 97 log 97 74 82 10 7' 921 103 " 120 123
90 9, 102 1 111 120 120 99 112 120 1 133 146 In
12 121 131 131 08 122 141 31 159 152 166
108 In 130 141 142 103 131 1:11 :71 rg
117 132 132 151 IN 109 140 1 82 92
26 142 143 161 IN 15 149 171 193 204
1
264 135 151 157 171 176 121 159 180 204 22186
IN Will 231 237 263 278 Ilt had 165 190 187 127 167 In 215 2
In 217 242 253 247 2 276 2 291 152 1 163 1 113 189 IN 133 175 21097 ns
183 Z63 2" 301 3
187 '28 2 209
190 235 273 274 65 313 317
1- 111 1 115 07 -0 2"
1 N 224513 283 283 324 3N 176 204 2% 223
M 259 213 H3 335 3'M2 It 212 220124 231 224580
230 245
$24
31
38
45
51
57
63
69
75
, 87 at
92
139 44 191 las 2135
35 joa 11 .7
T.
fat
1149
199 111 2St 272 112
154 207 229 263 212 117 122
159 214 237 272 29Z
Ste 330
37 39
24 47
52 55
59 63
66 71
73 78
79 05
85 92
I971 "
fill log 113
IN, in 'n 111
III 3.
126 1 37
136 31 14 11493
$ 30
39
47
55
63
71
797 25
11031
113
11
In 39
46
153 60
W SE ;R $34
45 925 31 $29 37 $435 3 $38 $N8
36 52 54 56
as a 51 47 58
52 61 Gt 65
41 5D 58 64 N 66
60 70 74 76
56 64 70 72 74
62 73 13 86
45 49 61
53 as 76 " B92 0
92 75 $4 as 101 92 196
57 71 92 86
89 96 1010 2 110 0 11 W0
54 60 64 71 a, 37 23 99 103 as
92
103 111 126 132
68 86 97 1I'll' H* 7
110 124 In 1. 1 71 91 102 17 123
11, 11 1" 11 11 as 1*7 1" Ill
11, 30 131 N 1102 1, 11 lo1t
71 It* 11127
12' .1
60 ID4 34
136 152 169 17 7 83 of 1 2 1225I
1-
147
142 in 175 18 1 1 as 11. in I- I-
49 65 84 93
U 49 56
Panomythisid. Rhode Island South Camillus South Dakota I-... a
Income I
F."I .L,.
ant.,
-5Z
..'
9. (p,mins)
Fl.'olly
..do, 5 5
F3.0y she (Pinulujinn
1 2 Set 5 5
1
Amilythelptrion)
2 3 1 5 5
Farallylits(pnots)
1 2 3&4 5
Fitrifly.1a
Texas
I
0.1.11
IL2 394 5 5
under 33.000 .............
$3
$24
'42
%1
"
W
50
61
$51
66
11
$51
So
11
$52 $61
63 76
71 11
$73
so
111
$0 $So
" 99
111 114
N? $66 111 San $31 1$0853 $541 $62 78 $756 104 su 105 $"
" 8
N as' 11' 1,11
L
so 56 S
g
I'll 125 '71 -------------
99. ..........
IS
a
58, 71
95
1
1.
"
1.3
I
-11
1154 "
I
132 is
IN
in
141 111
It, ": .
93 I'll U3 1-
14
'31 . 1. 111 I'S 1.
.3
62
71
11 7. IS
79
1,, 1. 1. 1 999,
999.:
"M
66
74
82
75
13
1
96
117 1'.
115
12
1376
115
1 He
12
92
RN 1"
1
44
" IN
161 167
"' I in
1 1 1
-0 4 97 119 140 156 161
102 130 145 157 65 8 ill 131 153 171 178
1 1 179 94 11 IN 61 111 IN
67
75
Is
80
19
11
83
98
1.17 1" 09
11. Il 02 11
to " 128 147
1
121 1 172
96
,1 157 169
125 161 - It '23 I207
210 225 in 130 165 1"' 10 77 20D 213 209 224 90 27
.1
113 20
,
1125
Its 127
'
23 07
13'
so
1
125 166 56 189 200
212
210 224 132 17D lot 112 19Z 113
220 240
137 175 20D 226 239
104 121 14DI 13161
9"
IN
"
1 157 1672 134 175 198 224 237 139 179 203 V3 213 2U 14 1 1211 139 113
3009 0.999
3: gas-
4.0004 4.999......... .2
121
126
I'S'S 1
68
17% 1 193 140 1,834 20
4 217a 235 2
46
250 2
62
116
53
197, F8 223 213 22 215 269
Z33
I4
95 2 2~1 267
11181 134 149
1
53
87 M
757 281 158 205 231 263 290 9 .000-S
1
2
125, 141 157 111
: 519-----------
I 6'M----------
7 M
Ia 9:999 ---------j'3nD
4
1.
135
1
19
173 196
U 2115
198 214
2. 223
205
2 7
an 233
52 202 In 257
31 111
163 211' 2" 277
1 111
211 25 237
274
1"
298 is 1'7'1
VQ 177
3
220135 22343
221 253
In 262
242 280 69 294
251 307
26D 2al 32c
269 Na 331
IN 215 241
170 2 VS M
116 2'33 '2'60 ' 111 all
I.a -1 111 IN
32
69
IIN45 148 1,121 165 1113 1I
171
so
11
sn M 160 63
73
234 260 297 321 1 192 236 271
1,,
279 315
I,. Its It
98 all
1
11 11 1161 74 17 1. 1
91999.... 217 232 3
5
S4 201
Utah 7 Vermont Virginia hern) 0_ W..hlngt.. - West VINI.I. Wisconsin Wyoming a
Income I F.cody I.(P-) a.., F..Ily dz. Cpawx.) a., Flonly Us (IS F..Jly .1. (mou.) tinily .~ ax-) F-11, I,
a.' I'
Orm"en'
1 2 3 4 5 6 1 2 3&4 5 5 1 2 394 6 5 1 2 3 4 5 6 1 2 3&4 5 5 1&2 sat 5 5 1 2 3 4 5 6
Undr, $3.000-------- 159 $77 $30 $95 $95 $95 $14 17 $21 T $27
$43 $50 $63 N" $70 M $79 Nt $9188 f"D ". TU $42 $52 357 $57 NO Sir $01 $18 1 lia SIZ
111
143 1 13 15 - 15 18 Is 34 52 13
$3$51 W SS2 $q Ss,2
71 as 88 14 97 ill 11 11 11 11 11
',
0 72 6'
00 .99 Ill 1 132 1 1.0
4.99 17 34 22 17 U It 11
137
12'2
122 as 76
61. 75 91 101 104 0 114 121
45 52 64 95 at 73 71 71
56 63 15 71
73 77 47 199 192
.:jjWj:II ------ 197 as
I, 1 3 r, I I at 1
125 134 IN 171,3 1. 21 1 1 47 11 11 1 113 1121,1 111 IS 11 131 1,54 111 1 1 13 .1 S5
999 03 33 19 63 79 37 44 N 33
If
1 D 43 P 69
i97
66 62 96 1P 0
71
11 15 111
'01
14
67
'U1 U'a 107 17
111 " IN 18.
700047.9- ------ In Ill al 113 , j~191 2117 1211 is s 1,1 .5 11 11 11 11 0 1N, 13 2,1 1111 1,407 ill 156 170 IM IN 207 72 so 105
11 17 in7 11,,
7 12115 1. 11 13,11
:OD11,4 299--::::
ooo-s9'999--
23 03
137 175 111 202 219 23Z 31 50 11
65
11 71
so 53
I 11 ;14 ~11 . ~14 7, ~12
M 181 69 185 19 216 225 79 98 114 12.
14 ~06 1. IM
32
41
126 N16 I 23 " 121 '7 4
for . 1
13
89 15 125 133 144 152
10 000-SIO 999 146 IN 204 214 23420 41 54
---
M 74 76
02 32 &'
' a "'
5 153 0
~n 113 1!13 nl 21311 111 1
5 248
121~99
11.4 1 2111 al 2111 as 12
2
'36 111 - 279 " 47 " 11
1
a72
7' 83
N
1 1 163 IN 1
114 1 172 196 2%
158 204 226 235 26t 278
167 215 239 247 279 294
ill 121 13 138 30 147 1 3
53 5
995 128 111 j'6'1 I ]
115 136 11
23 45 5 65
Ill 114
5
122 IN 1: 154 163
951 129 42 8 163 173
0 IS 1 50 155 117Z 193
176 13:00 is 1,1:1 1 111 1 211 l2le " 141 271 2%f So as
IN
73 226 IN an 309 53 70
71 11 91
90 93 96
119 156 IN 2% 219
~24 ~64 72 ~Sa 216 225 230
176 225 252 259 293 310
~94 2355 2, 2265 26 307 Us
104 135 52 74 87
IN IQ 159 182 192
" 63 1175
87
1 . 7 172 1 85 1 98
1 1 1
1
It6 I Q I 58 162 191 193 202
1
6 19 65 69 90
311 3 11 3
2.' '273 2M6 14 36
1
"' "' " 2'1
1 7
58 771 SS 102 1" be
141 115 1 11 1
Z090 2 255 2877 9 279 -1 -1 1194 In In 190 201
129 3- 179 2" 04 234 Z2'w'
289 334 3 356 54 173 193 210
2 213 21 208 215 301 Ill 7
IN 191 195 209
161 19" 205 2201 12 IS4 17Z 175 In 211
1761 160 179 181 207 220
371 123 160 let 2% 219 168 19. 21 2 31 66 ,:O*,S,17 11, 111311 3 3
20 262 194 38
6 a 111
96 10 6
11 11
4
. 93 '4 3
715 229
36 72 i's 223 IN
21,
19.000419.9h) 215 211 301 304 350 376 W U too 114. 120
52 270 216 274 312 31Z 360 395 127 IN IN 214 all
1.9 200 226 261 2W 1223 213 323 L3.... L71 L. .... III.. I In.'.. I
a
'1 2. 2 22 2,
1 at 14 233 Is 1 40 77 200 93 Zoo 1 231 Z46
fr,nt on Form IND, line 29 and 1-lavba, -d.liIt .....h ..
W milmad
- L.I. in d: T-Psyen not paying local axis$ tax
mti,,m,,t b...fit, -,,m- di~.,mn . h,
-mben-
-illn,, ....P n-ad Portion lon . n%t
y..nt compensation of " P~Ibli. '.Pilot "'Ins,
Local Sales taxes am nor Included. Add an amount ""Y"." based on the Vi.
between fine local and State sales tax mile
. should Use 75 p ment of the amount allo-d.
Local sets* taxes am not i,,I,ded.'Add the
IL .. I y, pn,ent sal.. is... ... I.d.d.d. amount Add 5 Dome Pa`s~t of the table
mount 11 he M. porcent county sales to, I,, trans,portallon'Es paid it
.glat Soft Lake and W,b,,). Othemiza add a Probortions . amount
considering the number of
numth, the taxes - b... in affect.
F
Included. If the aids of I ent ..I-
Uoc. I- to.... Included.
Local sales taxes am not Included. 11~%Id Wx III T.,*r.ldd . 11= alw1ra u
King
tax for 'Id .m. oux.g IGm " 1,bor . pronort Coun- W
floaa)uadd am m =1I to2.). the WbTa am-101 Y-a add i
table pmo. amount for am each nbimt If I
W. at
rti...is ount 1XNew, F York C,ty add 103 pence t of the table
amount - Include Panum.1 se,ulces, thund She, F.1m.mry 29. 1976.
(se.
Page 45
I,.
To Call IRS Tall Free for Answers to Your Federal Tax
Questions, Use Only the Number Listed Below for Your Area
Cautim "Toll-frea" is a telephone call for which you pay only fault charges
City and nurn no It:g-.d.1&ty8Jnce r fill. ch.1019 Ived. Therefore, please use a local
tong-distance call for you. Otherwise, use
the general toll-free number pirmided.
To help us proside courtakfus miximets and accurate Inforniatiff . n, IRS occimlonally monitors
of
telephone calls. No record Is maintained the twayel's name, address or =let security
nuintler.
if you find it necessary to write rather than call us, pit= address your ifffier to you
IRSTax District Director for a prompt reply.
prepare Advice to Taxpayers.-We am happy to answer questions !a help you
your return. But you should know-that you are responsible for the
accumZ;fru, Xu- ma;dn.
1,or b, the P.;t th.ef correct tax. If we dowe make
an am a forIhT pa a O.fnt the correct tax, and are
generally required by law to charge interest.
Takeplione Assistance
/H. VP
b- t= Access for= Tto
TV--Dh~/
teletypewriter Equipment.
Hours of
8:30 Lee. to :V.,! EST
ImJu;. residents. SOO-382-
4059
Elsewhere 1.
800-428-Znfin'...
ALABAAIA
O.stur, 355-1855
Mimbivill.. 539-2751
Mobil% 433-5532
Montgomery. 264-8441
Muscle Shoals Am, 767-
0301
Tuscaloosa, 758-4434
Elsewhere In Athos- 800-
292-6=ALASKA
Anclumage. 276-1040
Elsewhere In.itAlaska ask
litrti
.Uh-VI&D
ARIZONA
Phoenix. 882-~1,2 257 8, 33
Tucson.
Elsewhere in Arlaorm, 4100-
ARKANSAS
Little Rock. 376-4401
Elsewhere 1. Alfonso% 800-
482-9350
CALIFORNIA
he
hI.P n
it.
S
R_hu. hon. G- or
IS U
-g-h7 of
P""i'l,
Tax Assistance. -.11E.' the of -'W7 1. Your, "l-P - Federal in d-r
COLORADO
Colorado SPrinave. 634-6684
Den- 825-7.
El..h;. 1. Colorado. 800-
332-2060
CONNEcricur
Bridgeport, 576-1433
Hartford. 249-8251
Sm.f.rd, 348-6235
1-800-842-1120
in
DELAWARE
Wilmington, 571-640D
Ens.1m. S,51 I Data..., 900
212-a
DISTRICT OF COLUMBIA
Call 485-3100
GEORGIA
Atlanta, 522-0050
Auguste, 724-4946
~ohunbua, 327-7491
Macon, 746-4993
S...min, 355-1045
Elsewhere In Georgia, I-
800-222-1040
HAWAII
Hawall. 935-4895
Oahu. 546-8660,
Kauai. 245-2731
L ..1. cSlI,,g;Vbr '. se and
8036
Maul, 244-7654
Molok.l. call op*MW
ask for EftrPr%.
IDAHO
Sol- 336-1040
Elsewhere In Idalic, Spip-
632~5990
ILLINOIS
Chicaliv, 433-1040
Elsewhere 1. a- code $12
(except Ch
and MsidZftf of 1. li-mi,
MR ; W-97M Tale Olne,
Springfield, 789-~4220
Ehowho In all other ftxcs~
1.
Von 252!"21
Illinois, 800-
INDIANA
Evan"Ille. 424-601
Fort Way..,
Gary, 938-0560 423-2MI
H..-d. ""560
Indi-polf.. 269-5477
Nuncio, 288-4594
South B-L 232-3981
Term Elsewhere Hauta 232-4421
14 Indiana. 800-
-9740
IOWA
Cedar Rapid., 366-8771
Des Moinm 284-4850
fal-hem, In 19nes. SxQ-
362-260D ,
Karlas City, KANSAS 722-2910
Topalm. 357-6311
Wichita, 263-2161 in Kaa., 8DD-
Els-1mr,
362-2190
KENTUCKY
Lexington. 255-2333
=.M., 584-1361
Zhat, he. KntucIW
local di-1h; IC,
_,=;.12'-6
In.. Kentucky,
"=2-6570 Fort FLORIDA
Lauderdale, 491-3311
J...S-nvillo, 354-1760
Miami, 358-5072
LOUISIANA
Orlando, 422-2550
ft-acol.. 434-5219
St. Peters 2=74, 823-7459
S.W. Rouge, 387-22DS
New OrWim. 58t-2440
sh-ixxxt Elsewhere 4 4-001
Tamps,
West Palm
7250
Beach. 6S5-
In
800-362-6900
Louisiana,
Elsewhere In Florida. 1-800-
342-8300 A..., 622-7M
Portland. 775-7401
Page 46
elsewhere 1. Main.. 1-800-
52-8750
MARYLAND
Baltimore, 962-2590
Prince Goorges, County,
488-3100
nnx-y county, 488-
31
Elseehere BM-492-0460 In Maryland.
MASSACHUSETTS
B-kt. 13 581 Jofo770
Fitchburai. 345-1031
1--. 682-4344
Lowell. 957-4470
New Bedford. 996-3111
Springfield. 785-1201
Wbrosizer. 757-Z712
am 1-801~31AW-
MICHIGAN
Am Arbor, 76!291350
Say City. 772- 153
D.ft"' 237-OM
FZInL 767-8830
J..k.6n, 750-4677
Kalamorob, 385-4410
Grand Rapid% 774-8301)
L ..Ing, r's=1"
5
Muskegon. Mount 726-4971
P. c 8
suai-~'
Elsewhere In a- code 313,
.13 SDO-462-CM
M- 58 MINNESOTA
Minneapolis. 291-1422
St. Paul. 291-1422
Elsewhere
In
Milmoseft,
BOD-652-9062
MISSISSIPPI
0, Biloxi. 868-2222
Wort 868-2122
J..I-., 94B-4500
Elsewhere, in 10"InIPPI,
I-BOD-222-8070
MISSOURI
Columbia, 44 Chr0
4:~q
M_8,00 E
141
'on*-*'
"PlIn. K-nsin S, City, 474-0350
St. Louis J.'*h i413V.0 ..
Sprinen-ld,
El-hem n887-5000 Missouri, 800-
392-4200
MONTANA
Helena. 443-2320
Elsewhere
" Martin.,
"o"432-2276
NEBRASKA
Uncoln. 475-3611
Omaha. 422-1500
Elsmhem In Nebraska,
800-642-0960
NEVADA
L.s Vegas, 385-6291
Reno.784-5521
fainwhons in Nevada, 800--
492-6552
NEW HAMPSHIRE
Manchester, 668-2100
ftflarnouth, 436-8810
eninelm" n New Hemp.
.1dre, 1=-7'200
MEWJERSZY
Canid.n. 966-7333
Hockareack.487-8991
00
City. 622-06W
Newark. 62;=4)6 00
==3,a7ll3
El-hers In So" Jersey,
BOD-Z42-67
Albuquarque. NM MMUCO 243-WI
Elsewhere In New MOXIM
800-527-3880
MEN YORK
Attrany DWO
Upstate New Yow
Albany. 449-312"
ftushluesivalk
Elsewhere In 4U-7800
U
East..
Salomon District
Brook", 596-3770
Nassau, 294-3600
Quakens, 596-3770
Suffolk 724-5000
Buffalo District (washom
Upstate New York)
farnighandon. 772- ISO
Buffalo,
masons 855-3..
285-0351
Rochester, Fil"
ftracues, Uti, 425-8'11 263-6770
797-2550
Elsewhere In Western
UP-3672--~Xek`
s-114
liod.Mn District
B-, 732-0100
standstill, 732-0100
Rockland County. 3SZam
Staten Island, 732-0100
W%.
New OIL virmon.
noch.11%
P1.1-y-k. W"
". 212-7=0100
NORTH CAROLINA
Chlrl=..3.7
am. 2 ..0 7
11,1,14h~ also Ca_
Versa, NORTH DAKOTA
293-WSD
E3-hdre In North Dakota.
800-342-4710
OHIO
Akron. 253-114
Cimt., 455-6781 1
Cincinnati. 621-6281
Chrml,nd cohnnau 52
; 2l 1 LD' 520
Dayton, 2294557
T.I.do. 255-3730
Youngstown. 746-1812
El=m62_9050 1, Northern 9hio,
Ms=m In Southern Ohlo,
82-1700
OKLAHOMA
ON:homa T, CItY, 272-9531
.. 683-5121
Elsewhere In Oklahoma.
800-962-3456
Allentown. PENNSYLVANIA 437-6966
Bethlehem. 437-6966
Ede, Phn.L 413-5671
783-8700
lphl., 574-99W
PlIftburah, 281-0112
Elso.h..
in a- I-it.
215 717, 800-
El=::Oln
end
a- .1 codes
412 and 814. all 800-
242-0250
RHODE ISLAM
Buick Island. cgd=r= rp
ask for
Ou,A1.11). Glocast.1,
H.r
N aty,
at
=06 84 P_Ad.-,
Ttveftn
274-1040
i title Compt^
624-66,47 ,
Wocin-lial, 722-0245
. SOUTH CAROLINA
Charleston. 722-1601
Colu ble. 799-1040.
Grearvill. To 242-5434
E3sWMm In SouthIC.1a,
If-, I-SOD-922-as 0
SOUTH DAKOTA
Aberdeen. 225-9112
Rabid MY. 348-MM
Sioun, Fells. 334-66M
Elseelum In South Oakots,
800-692-1870
TENNESSEE
Chursdannobso, 892-3010
J.h-. City. 929-0161
KnOurvillk 637-0190
Memphis. 522-1250
Ift.hroill. 259-4601
1. Tvann".4
SOO-34241420
TEXAS
Amarillo,
A-81 B_um..L 472-1974 $76-21"
Corou, Christi. 835"W76 885-0431
Dallse. 742-2440
Ef Palo. 532-6116
Ft. Worth, 335-1370
Houston,
Lubbock. Sam 965-040 147-4366 700
Antonio. 229-1
We-. 752-6535
Wichita falh, 723-6702
El.:wha ,2Z,ln Texas, 800-
UTAH
Salt Lake City. 524-4060
Elsewhere 1. Utah I-80D-
662-5370
vamomr
BuffIngtom 658-1870
In V -at
1-800-"2-3110 VIRGINIA
Bangs , Crossroads (North-
V4.1.). 557-9230
-
chass"I'"If
Norfolk, 46 -1,171,01770
Portsmouth. 461-3770
Richmond. 649-2351
Virginia 6...h. 461-3770
Elsewhere 1. Iffildrile, 80(s.
552-9500
WASHINGTON
Evenitt, 259-0861
Seattle. 442-1040
Spoken% 456-8350
T.-S. 383-2021
Von.-.,. 695-9252
Yakima. 248-6891
Enewhom In Warshingtool,
800-732-1040
OREGON
WEST VIRGINIA
E-M,1775.33715 '-'2'
=nd.221-3960
Salem. 582-8720
Charleston, Hun 345-2210
P,;:ngton. 23-0213
moure, 485-1601
Elso.h.. 980In
0mg.M BDO-
452-19
WM'=!' alft= 'aVlrenl.
800-642-1931
WISCONSIN
Milwaukee, 271-3780
Elsewhere In Wiscinalh..
800-452-0100
WYOMING
Chavenne, 635-4124
Elsewhere In Wineril
800-525-61160

250 Individual Returns/1977 * Forms and Instructions
I= US*., .1 .1=3 ZVI-, "~ V SSM12
.......... ......... r. f .......
.... . .... ....
E
.22
. . , 9ES
' :' E-8 ' '
I
M ad
I -Mat-V "':; AA M! 9N2 9"A"
V!
E 'E E' ISM I
E_
E~.E
S
4
E-S
E:H-Ulf
a E
.
.... ........
........ .
9 122
E
t
I
a
A
if
I I
I
i I
I
I I
11

Vtj
DPftW of Me T-7-4-hosel leanes, Santos 1@77
U.S. Individual Income Tax Retum
Find once and lAlWl (if Joint nnum, gin firta- and initials of b1th) Last name your so~ security I numb"
Pneed baa~ Wd= (itueber and wo,14 Imtellat apeflaust oambw, a narel mute)
city, ban, or Pen offha. Stra and ZIP case
Presidential
Election
Yes
Do you want $1 to go to this fund?.
CarnX sign Fun
~
DUrSPOUSO W8nt$1 to gotothis fund? 1-1 Yes
Check Only
One Box
= reck,
_Yci res"
box. Check
other boxes
they apply. if
I -
For Pdeaq Act Nothes, saf Spouse's
page 9 of Instructions.
ww ft M
I El Single - 20 Married filing Joint retum (even If only one had Income)
Married filing separately. If spouse Is also filing, give spouse's social security number In the space above
3
M and enter full name here .......... . ............... ....... ........ .............. . ...................
4 El Unmarried Head of Household. Enter qualifying name *
158 El Yourself 6S or over Blind I b~: as 1~~afie f
b F] Spouse 65 or over Blind
c First names of your dependent children who lived With you b,.--__--_-_--- Ents, numbee .1
d Other dependents:
o) ftese
M Riddloodip
1. yow saaa.
(4) old = cia old
hans
$750 or -? poster's sappart? Enter number
of a&dependents
- =,ad he
Ila,
JoE
6 Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . bases KbM _111P
ME
yours 10.
Spauss's jo
No
7 Wages, salaries, tips, and other employee compensation. (Aftech Fail W-2. It unavailable,
see pap It of Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Interest Income (ses pap 4 of Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .
ga Dividends. ....................... .9b LOSS OxcluslOn ---------------- ---- --- Balance 10- .
(Sm pages 4 and 11 of InsbucU*W
10 Adjusted! gross Income (add lines 7. 0, and 9c). if under $8,0D0, am page 2 of Instructions on
"Earned income Credit" If eligible, enter child's name 10
Credit for contributions to candidates ----------
for public office. I I
Enter o"'haif of amount paid but do nut enter mare than $25 ($50 . . . . .
if Joint return) . . . . . . . . . . . .
. . . . . . . . 1 Ila
IF YOU WANT IRS TO FIGURE YOUR TIU~ PLEASE STOP HERE AND SIGN BELOW.
b Total Federal Income tax withheld of line 7
$16,500, see page 12 of Ins"ctions) . . . . . . is . . Ifirlier . . . than . . I Ilb
c Earned income credit (from page 2 of Instructions) . . . . . . 1 22C 1
12 Total (add lines Ile, % and C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 Tax on the amount online 10. (See Instructlansfor line 13 on page IZ thenfind your tax InTax
Tables an pages 14-25.) . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .
No
No%.Checl.lng~.Yesr . yo
Incr
w red:'at ce
your nefund.
. Sea pas 6 of Instructiono,
14 :fIlne 121slargerthan line 13, enter amount to be REFUNDED TO YOU . . . . . . . . lo- 14
o 25
u -
f line 13 Is larger than line 12, enter BALANCE DUE. Attach checker money order for full amount
payable to "Internal Revenue Service." Write social security number on check or money order Ia. is
'c ul Under penalties of pedury, I declare that I have examined this return, Including accompanying schedulas and statements, and to the best
of my knowledge and belief, It Is true, correct. and complete. Declaration of preparer (other than texpayarl Is based on all information of which
Q,
preparer has my knowledge.
-6
BOTH must
D05
7
8
9c
EE
22
M
E
N
ftid prepames signature, and Identilyine; number (see nstnum on
- I IF Pa ",sea address (or employees nama, addras, and la.-FiNiNg
"u,,narne T

H77 instructions for
Preparing Form 1040A
Watch fdr
Tax Law
Changes
From the Commissioner
DsPffhuM Interne!
@9 &A Revenue
Vammm service
At the time Form 1040A and these instructions were printed, Congress
was considering legislation that would allow credits for energy saving
expenses for your personal. residence. If this legislation is passed and
you had such expenses, you must file Form 1040-m-not Form 104OA-to
claim the credits.
These instructions contain the information
needed to complete Form 1040A. About onehalf
of all taxpayers will be'able to use Form
.1040A this year.
. We tried to design a Form 1040A that you. can
easily complete yourself. Please try it. This
year's form co ntains fewer lines than last year's
form, and we' tried to make the instructions'
easier to understand.
Please notethe Presidential Election Campaign
~unclcheck-off near the top of the form. Without.
increasing your tax or reducing your refund, you
can have $1 ($1 each for husband and wife on a
joint return) go to a fund to pay . expenses for the
1980 Presidential Election.
Generally, you can file Form 1040A if: your income
is,$40,000 or less if you are married.filing
a joint return, and $20,000 otherwise; all your
income, is from wages, salaries, tips and not
more than $400of interest or $400 of dividends; -
and-you do not itemize deductions...
Because we figure your tax anyway, there i's no
need for you to do it. You may stop after line Ila,
sign and date the return, and attach Forms W-2.
If you file on time and owe us, we will bill you and
give you 30 days to pay. If you have a refund
coming, we will sendit as quickly as if'you fig-.
ured the tak yourself. We will also figure your
Earned Income Credit for-ou If you are~ eligible
for it.
If you want to figure your own tax, notice that
these instructions contain new tax tables. The
-tables do not tax the first:
0 $3,200 of income, if you are married filing a
joint return,
0 $2,200 ofincome, if you are single or unmarried
head of household, or
ollo~ $1,600 of income, if you are married'filing
separately.
These amounts are called "zero bracket
amounts" and replace the standard deduction.
(if your itemized deductions exceed these
amounts, you should probably Us e Form 1040.)
You do not have to figure your ' "z6ro bracket
amount," deduction foi` exemptions, or general
tax credit because the new tax tables do this for
you. Also, the:new tax tables cover income as
high as $40,000 if you are married filing a joint
return, and $20,000 otherwise.
If your incom/e is less.than $8,000, you ma I y get,
a refund even if you paid no tax. See page 2 of
the Instructions.
If you need help, please call us at the number
listed for your area on pages 26 and 27, or visit
an IRS office.
Thank you,for your cooperation.
Commissioner of Internal Revenue
Earned Income Credit .
You may be entitled to a special payment or Earned Income Credit Worksheet
credit of up to.$400 that may come as a refund
r,heck or be applied against taxes you owe if you
can answer "Yes" to questions A, B, and C.
. Do Not File this Wbrksheet-Keep it for Your Records
-1 -Enter 10% of the amount on Form
.1040A, line 7, but do not Yes No
A Did you have earned incorne?,
Earned income includes wages, salaries,
enter
more than $400. Be sure to attach W Copy 6 of Form(s)'W-2 to your
tips or other employee compensation but
Note: If Form 1040A, line 10, is
does not include social security benefits,
$4,000 or less, you do not
welfare benefits, etc.
have to complete the rest of
this worksheet-just. enter
8 Is Form
WOW?
1040A,
. . .
line
. .
10,
.
less. .
than
. .
the amount from line I above,
on Form 1040A, line 11c.
Also write the first name of
your child who qualifies. you
for the credit in the space on
line 10. (See Note below.) .
71/1
IN/m/m/m/1,
C Did you pay more than half the cost of
keeping up a home in the U.S. in which
you lived anq which for the entire year
(except for temporary absences for va-
,,cation, school, etc.) was also the home of
(1) your child who was under 19 years,of
age or a full-time student, OR (2) your
dependent child who is disabled? (See
page 7.) . . . . . . . . . .
Form
10
1040A, mount from line
3 Less .
4,000.00
4 Subtract line . . 3 from . ..
line 2
5 Enter 10% of line 4 . . . . .
6 Earned income credit (subtract line
If you answer "Yes" to ALL the qUestions
above, AND if YOU DO NOT check box 3, Married
Filin- Se aratel' ou ualffi, for the credit
If you qualify, use the Earn Income Creclit
ad
Worksheet to figure your credit. I
5 from.line 1). Enter here and on
Form 1040A, line 11c. Also write
the first name of your child who
qualifies you for the credit in the
space on line 10. (See Note below)
. . ~ . . . ... . . . . 4
Note: If you want IRS to figure your tax, including the
Earned Income Credit, see @, 12), and @, on pages I I Note: lt*you have more than one child who qualifies
and 12 of the instructions and do not complete the you for the credit, you need only enter the first name of
Earned Income Credit Workshe6t. one of the children.
Special Instructions for Those Who are Not O"uired to
File a Return But Can Claim the Earned Income Credit
If you answer "Yes" tocluettioris A, B, and C above,
,AND do not check box 3, Married Filing Sepa~ately,
you should file Form 1040A to get a refund of your
earned income credit. All you need to do is~ . .
(1) Fill in Form 1040A through line 10. Enter on
line 10 the first name of your child who qualifies
you for the credit. Do,not check the Presi.
dential. Election Campaign Fund box(es).
(2) Use the Earned Income . Credit Worksheet
above to figure your credit. If Form 1040A,
line 10, is $4,000 or less, enter the amount of
E]
thet credit from line 1 of the Worksheet on
Form 1040A, line - 11 c. Otherwise entei the
amount of the credit from line 6 of the Work- -
sKeet on Form 1040A, line Hc.~.
(3) Fill in lines 12and 14.
(4) Sign and date the return..
(5) Be sure to attach Copy 8 of Form(s) W-2.
NoW It you'ovant IRS to figure your earned income
credit for you, skip (2) and (3) above, but please pro.
vide all the other Information requested.

Where to File
Please use the addressed envelope that came with
your return, or use the address for your State. Mail
your return to the Internal Revenue Service Center for
the place where you live.
Alabama-Atlanta, GA 31101
Alaska--Ogden, UT 84,201
Arizona--Ogden, UT 84201
Arkansas-Austin, TX 73301
California~Fresno, CA 193888
Colorado-Ogden, LIT 84201
Connecticut-Andover, MA 05501
Delaware-Philadelphia, PA 19255
District of Columbia-Philadelphia, PA 19255
General Information
The IRS lIIivill figure your tax for.
you If yoti,wish- Please see page
12 for details.
Who Must File
Whether or not you must file a return depends pri*
marily on the amount of your income and your filing
-
status.
The following rules apply to all U.S. citizens and resident
aliens, indluding those under 21 year$ of age. (However,
these rules may not apply if you were a nonresident
alien at any time during 1977. See page 5.)
And your
File a return If you are: - income
4 is at least
0 Single (legally separated, divorced, o r married
living apart from your spouse forthe'entire year with dependent child) and:
-You are under 65 . . . . . . . . $2,950
-You are 65 or older . . . . . . . 3,700
0 A person who can be claimed as a dependent
on your parent's return, and have taxable divi.
dends, interest, or other unearned income of
$750 or more .
750
0 Married filing jointly, . . living . * with. your spouse * - *
at the end of 1977 (or at date of death of
spouse), and:
-Both ofyou are under 65 .
4,700
-One of you is 65 or older . . . . 5450
-Both of you are 65 or older . . . . . 6:200
0 Married filing separately or married but not
living with your spouse at the end of 1977 . . 750
0 A -person entitled to exclude income from
sources within U.S. possessions . . . . . 750
0 A qualifying widow(er) with dependent child
and:
-You are under 65 . . . . . . .. 3 950
-You are 65 or older . . . . . . . 4.700 '
(A qualifying widow(er) who is required to file MUST use
Form 1040.)
Even if you are not required to file . a return, you should
file to get a refund if: I -
(1) income tax was withheld, or (2) you are eligible
for the earned income credit.
When'to File
You should file as soon as you can after'January 1,
Florida-Atlanta, GA 31101
Georgia--Atlinta, GA 31101
Hawaii-Fresno, CA 93888
Illaho--Ogden, LIT 84201
Illinois-Kansas City, MO 64999
Indiana-Memphis, TN 37501
Iowa-Kansas City, MO 64999
Kansas-Austin, TX 73301
Kentucky-Memphis, TN 37501
Louisian"ustin, TX 73301
Maine-Andover, MA 05501
Maryland~Philadelphia, PA 19255
Massachusetts--Andover, MA 05501
Michigan--Cincinnati, OH 45999
Minnesota--Ogden, LIT 84201
Mississippim-Atlanta, GA 31101
Missouri--Kansas City, MO 64999
Montana--Ogden, LIT 84201
Nebraska--Ogden, UT 84201
Nevada-Ogden, UT 84201'
New Hampshire-Andover, MA 05501
New Jersey-Holtsvi Ile, NY 00501
New Mexico-Austin, TX 73301
New York
New York City and Cotinties of Nassau, Rockland,
.Suffolk and Westchester-Holtsville, NY 00501
All Other Counties-Andover, MA 05501
North Carolina--Memphis, TN 37501
North Dakota-Ogden, UT 84201
Ohio-Cincinnati, OH 45999
Oklahoma-Austin, TX 73301
Oregon-Ogden,. UT 84201
Pennsylvania~Philadelphia, PA 19255
Rhode Island-Andover, MA 05501
South Carolina-Atlanta, GA 31101
South Dakota--Ogden, LIT 84201
Tennessee-Memphis, TN 37501
Texas-Austin, TX 73301
Utah--Ogden, LIT 84201
Vermont-Andover, MA 05501
Virginia-Memphis, TN 37501
Washington--~Ogden, LIT 84201
West Virginia-Memphis, TN 37501
Wisconsin-Kansas City, MO 64999
Wyoming--Ogden, LIT 84201
If you am located In Use this address
but no t later-than April 17, 1978. Late filing may subject
you ' to penalties and interest.
Panama Canal'Zone,
American Samoa
Philadelphia, PA 19255
Guam Commissioner of Revenue
Wnd, ...
Ta-1610
GU
Puerto Rim Philadelphia. PA 19255
Virgin NW'p'earmarent residents
Virgin Islands: Department of Finance,
Permanent residents Tax Division,
Charlotte Amalie -
St. Thomas, VI 00801
Foreign country and have Service Center for your
an A.P.O. or F.P.O. permanent home State
address
Foreign country:
U.S. citi~en
Philadelphia, PA 19255
Page 3
YOU MAY USE FORM 1040A IF:
You had only wages, salaries, tips, or other employee
compensation and not more than $400 in interest or
$400 in dividends
Note: You may file Form 1040A even it your in-
terest or dividend income was more than $400 it you are
filing only to get an earned income credit refund.
0 Your total income is $20,000 or.less ($40,000 or less
if married fling jointly)'
Form'1040A may not. be the right form for you . . .
IMPORTANT Before you file, please read these instructions.
YOU MUST USE FORM 1040 IF:
4 You itemize deductions
0 You claim any of the items (adjustments to income
,or credits, etc.) listed below under You Must Also Use
Form 1040 Instead of Form, 1040A
Itemized Deductions
(What You Can Claim)
Examples of itemized deductions are:
1. Interest on loans and mortgages;
2. Local, State, and real estatetaxes;
3. Payments for medical insurance and medical and
dental care in excess of limitations;
4. Gifts to churches, charities, Boy Scouts, Cancer
Society, Red Cross, United Way, and similar organiza.
tions;
YOU MUST ALSO USE FORM 1040 INSTEAD OF
FORM 1040A IF:
0 You received more than $400 in interest or $400 in
dividends (Disregard if you are not required to file but
are filing ONLY to get a refund of your earned income
credit)
0 You had income other th~n wages, salaries, tips,
other employee compensation, interest or dividends
You had pension orannuity income
Your income on Form 1040A, line 10 is more than
$20,000 ($40,000 if married filing a joint return)
You claim more than:
3 exemptions and are single or married filing sep`
arately,
8 exemptions and are unmarried head of house.
hold, or
9 exemptions and you are married filing a joint
return
You are a qualifying widow(er) with a dependent
child. This filing status applies if your spouse died in
1975 or 1976 AND on December 31, 1977, you met
ALL these tests:
had not remarried
had living with you a child or stepchild you could
claim as your dependent
paid over half the cost of keeping up the home for
this child for the entire year
Pop 4
S. Employee business expenses such as union dues,
safety helmets, tools;
6. Net personal casualty or theft loss in excess of
$10D.
Will Your Tax be Lower if you Itemize Deductions?
Here is a Test to Help.
If you are-
Married filing jointly, you should itemize if your doductions
are more than $3,200
0 Married filing separately,.you should itemlie if your
deductions are more than $1,600
0 Single or Unmarried Head of Household, you should
itemize if your deductions are more than $2,200
could have filed a joint return with your spouse for
the year your spouse died
0 You can be claimed as a dependent on your parent's
return and had unearned income of $750 or more and
earned income of less than:
$2,200 if you are single, or
$1,600 if you are married filing a separate return
0 Your spouse files a separate return and itemizes do.,
ductions. Note: You may file Form 1040A if you
have a dependent child and 6an meet the tests on page 6
under Were You Married and Living Apart from Your
Spouse?
0 You received $20 or more in tips in any one month.
which you did not fully report to your employer
0 Your Form W-2 shows uncollected employee FICA tax
(social Security tax) on tips
You claim adjustments to income for
Business expenses as an outside salesperson orfor
travel for your job
The disability income exclusion (sick pay)
Moving expenses because you changed jobs orwere
transferred
Payments to an Individual Retirement Account or
for an Individual Retirement Annuity or Bond
A penalty on a premature withdrawal from a time
savings account
Alimony paid
You claim
a credit for the elderly
a credit for child and dependent care expenses
an investment credit'

a foreign tax credit
a work incentive (WIN) credit . I
a new jobs credit
a credit from a regulated investment company
a credit for Federal tax ofi special fuels-nonhighway
gasoline and lubricating oil .
a credit for energy saving expenses (if pending
legislation is passed)
You choose the benefits of income averaging
You filed Form 1040-ES, Declaration of Estimated
Tax for Individuals, for 1977
0 You wish to apply any partof a refund of your 1977
taxes to estimated tax for 1978
0 You received capital gain dividends, a lump-sum
distribution from a qualified plan, . or nontaxable.clistributions
(return of capital)
I
0 You area railroad employee representative and claim
credit for excess ' hospital insurance benefits taxes paid
0 You must file Form 2210, Underpayment of Estimated
Income Tax by Individuals, because you were nkquired
to make payments of estimated tax and line 15 is
$100 or more and over 20 percent of line i3. Please see
instructions for Penalty for Not Paying Enough Tax our-
Ing the Year on page 9
0 You file Form'2555, Exemption of Income Earned
Abroad
* You' file 'Foem' 4563, Exclusion of Incom . a
from
'Sources in United States Pi5ssessiont
is, You.are required to complete Part III, of Schedule B
(Forrr~ 1040) because: (1) you had during 1977 an interest
in or sigriature or other authority over a bank,
securities, or other financial account in a foreign country
(except in a U.S. military banking facility operated by a
U.S. financial institution), or, (2) you were either a
grantor of, or transferor to, a foreign trust during any
taxable year, which foreign trust was in being during
107
0 You were.an 6nmarried dual-status alien (if you were
both a resident alien (or U.S. citizen) and nonresident
alien during 1977) or a dual-status alien married to a
citizen or resident of the U.S. at the end of 1977 and do
not, elect. to file a joint return. (See Form 1040
Instructions)
You were a nonresident alien (use Form 104ONR)
You were married to a nonresident alien at the end of
1977 and you both do not elect to be taxed on your
world-wide income (unless you can meet the tests as
listed under Were You Married and Living Apart from
Your Spouse?, as explained on page 6)
Your Filing Status-Which Box to Check
Your'tax rate depends on your filing status. Please
read the following instructions carefully to find the filing
status that fits your situation for 1977. Then check the
box on your return foryour status.
If you have any questions bout alimony, business expenses, disability
income exclusion (sick pay), moving expenses, civilits, or the like, please
get Form 1040 and its instructions, and any of out taxpayer information
publications you need, at internal Revenue Service officeL
Box I.-Single (see Instructions for Box 4)'.
This filing status applies if on,December 31,11977,
you . were one of,the following:
(a) not married.,
(b) separated from your spouse by either divorce or,
separate maintenance decree.
) !
(c) a widow or widower (see the instructions for Box
2, paragraph (b), it your spouse died in A977 and you.
had not remarried). If your spouse died in 1975 or 1976,
and you have a dependent child, see the instructions on
page 4, You Must Also Use Form 1040 Instead of Form
1040A, to see if you can file Form 1040 as a, qualifying
widow(er) with dependent child. ,
(d) married and you do not intend to file a j;int return,
and you meet the tests under Were You Married and
Living Apart from Your Spouse?, explained in the instructions
for Box 3.'
Box 2.-Married Filing Jointly (even if only
one had income) '
FIling a joint return often means tax savings for a
couple because joint return rates are lower than other
rates.
A joint return must show all income of both you and
your spouse, but can be filed even though only one had
income. You may file a joint return even if your spouse
lived in a different household.
This filing status applies if on December 31, 1977,
you were either of thenfollowing:
(a) married, even if you' were not married for the
whole year, or
(b) a widow or widower, your spouse died in 1977,
a;d you had not remarried. For your return, you
may be
considered married for all of the.year, and you may file
a joint return. (If you want to file a separate return, see
the instructions for Box 3.) If your spouse died in 1975
or 1976 and you have a dependent child see the instructions
on page 4, You Must Also.Use Fo;~ 1040 Instead
of Form 1040A, to see if you can file Form 10 1 40 as a
qualifying widow(er) with depenoent child.
Special Election for Aliens.-You may file a joint return
with your spouse if, at the time of the election, you~
were a nonresident alien individual married to a citizen
or resident of the United States, and you and your spouse
agree to be taxed on your combined world-wide income.
If one spouse was a nonresident alien at the begin.
ning of the taxable year and a resident of the United
States on the last day of the taxable year and'the other
spouse was a citizen or resident of the United States at
the close of the taxable year, you may elect to file a joint
return if you both agree to be taxed on your combined
world-wide income.
For more details, please get Publication 519, United
States Tax Guide for Aliens.
Note: It you are in doubt about whether to file a joint
return or separate returns (discussed on page 6), figure
your tax both ways before deciding.
Page S
~.. If you.want us to figure your tax for you, we will do
it the way that gives you the smaller tax.
Box 3-Married Filing Separately
Some married taxpayers file separate returns because
each wants to be r6sponsible -for only his orherown tax
or to receive his or her own refund. Others file separate
returns because their total tax may be less than the tax
on a joint return.
Before you file a separate return, see ifyod can reduce
your tax ti~ meeting the tests described under Were You
Married and Living Apart from Youi Spouse7. If you
meet these tests, you should use the Single filing status
or, if you qualify, Unmarried Head of Household.
if you cannot meet the requirements under Were. You
Married and Living Apart from Your Spouse?, and you
are ff both filing separate returns or your spouse Is not
ling, check Box 3. You each report only your own In.
come, exemptions, and deductions, and jou are respon.
sible only for the tax due on your own return.
. You and your spouse must figure your tax the same
way. If you itemize your deductions, your spouse must
itemize. (in that case you must file Form 1040.instead of
Form 1040A.)
. .
.
Community Property States-If you and your spouse
live in a community property State you must follow
State law to determine what Is comWiunity Income and
what is separate Income. Generally; expenses are community
expenses or separate expenses according to the
type of Income from which the expenses arose. if you
and your Spouse live In a community property State and
both itemize deductions, expenses paid from joint funds
can be divided equally. For more details, get Publication
555, Community Property and the Federal Income Tax.
Were You Married and Living Apart from Your
Spouse?--&me married people can file as Single ores
Unmarried Head of Household and ignore the rules for
married'peoplefiling separate returns. This means that
You may be eligible to claim the earned Income credit.
It also means that If your spouse itemizes deductions,
you do not have to. Both you and your spouse can file
thiswayjfyou both meet the tests.
You can file as a single person, and check Box I for
Single, if you meet all of the following tests:
(a) You file a separate return.
(b) You paid more than half the cost to keep up your
home for 1977.
(c) Your spouse did not live in your home at any time
during 1977.
(d) For over six months of 1977, your home was the
main home of your child or stepchild whom you can
claim as a dependent
If you meet tests (a) through (d) above, you may b . e
eligible to check Box 4, Unmarried Head of Household.
Please see the instructions for Box 4. ,
.Pw 6
Box 4.-Unmarried Head of House'hold
There' are special rates for those who can meet the
tests for unmarried head of household. These rates am
more benefichal than the rates for Single'and Married
Filing Separately.
You may choose this filing status ONLY IF an Decem'
ber 31, *2977, you were brimarried (including certain
married persons living apart) or legally separated, and
can meet test (a) or (b) below.
(a).. You paid more than half the cost of keeping up a
home which is the main home of your father or mother
whom you can claim as a dependent. (Your parent did
not have to live with you.)
(b) You paid more than half the cost of keeping up
the home in which you lived and which (except for tem.
porary absences foriiaration, school, etc.) wasalso lived
in all year by one of the following*
(1) your unmarried child, grandchild, foster chlld~
or step~child. (Child did not have to be your
dependent.)
(2) any other person listed in 5(a) under Children
and Other, Dependents (lines Sc and 5d) on
page 7, that you can claim as a dependent. But
that person cannot be your dependent under
a multiple- support agreement (this Is where
two or more taxpayers supported the depend.
ent and no one gave more than half the sup.
part). Note: If you are claiming the filing status
of Unmarried Head of Household, please enter
the person's name w ' he qualifies you for this
status in thespace provided'after Bog 4 an
Form 1040A. It more than one person qualifies
you for this status, you need to enteroniv one
person's name.
Your. Exemptions
For Yourself (line 5ay
You can always take one exemption for yourself,liven
if you were th~ dependent of someone else. Take two
exemptions If you were blind or 65 or older. Take three
exemptions if you were both blind and 65 or older. Be
sure to check all the boxes on fir- So for the exA-ntIo-s
you can take for yourself.
You can take the extra exemptions for ago.65 or. over
and blindness only for yourself and your spouse. You
cannot take them for dependents.
Age and blindness are determined as of December
31. However, if your q5th birthday was on January 1,
1978, you can-take the ext- exemption for age for
1977.
Proof of Blindness.-If you or-your spouse Is 6m.
pletely blind, attach a statement to this effect. In cases'
of partial blindness,'you must submit with your return
each year a statement from an eye physician,or rbglstered
optometrist that you or your spouse: (a) cannot
see over 20/200 with glasses or (b) the field of view
does not exceed 20 degrees. If, however, this eye. con.
dition will never improve beyond the standards in (a)
or (b), you may instead submit a certified opinion to
this effect from an examining eye physician. You need
to attach this certification only once to your return. In
fpllowlng years.you need only attach a statement milerring
to It.

For Your Spouse Olne 51b)
You can take an exemption for your spouse if you are
filing a joint return. If you are fillng.a separate return,
you can take your spouse's exemptions only if your
spouse is not filing a return, had no income, and was not
the dependent of someone else.
Your spouse's exemptions are like your own---one, if
your spouse was neither blind 'nor 65 or older-two, if
blind or 65 or older-three, if both blind and 65 or
older. Please check all the boxes for exemptions you can
take for your spouse on line 5b.
If at the end of 1977 you were legally divorced or
separated, you cannot take an exemption for your
former spouse. If you were separated by a divorce that
is not final (interlocutory decree), you may take an
exemption for your spouse if you file a joint return.
Death of Spouse
If your spouse died during 1977, and you did not
remarry before 'the end of your taxable year, check
the boxes for the exemptiont you could have taken for
your spouseon the date of death. Please see the instructions
for Death of Taxpayer on page 8.
Children and Other Dependents
(lines 5c and 5d)
Please enter online 5c the first names of your dependent
children who lived with you. Fill in the total number
in the box to the right pf the arrow.
Please enter on line 5d the full names and other information
for'your other dependents. Fill in the total
number of other dependents in the box to the right of the
arrow.
You ca n take an exemption Jor a dependent who
was born or died during 1977 if he or she met the tests
for a dependent while alive. This means that a baby born
alive but who lived only a few minutes can be claimed, as
a dependent.
Each person you claim as a dependent has to meet all
the following tests:
.(I) Income-Received less than $750 income.
(This test does not have to be met for your child who was
under 19 or a full-time student at least 5 months of the
year. Please see the instructions for Student Dependent.)
(2j Support-Received over half of his or her support
from you or is treated as receiving over half of his
or her support from you under the rules on page 8 for
Children of Divorced,or Separated Parents, or Dependent
Supported by Two or More Taxpayers. If you file a joint
return, the support can be from either spouse;
Support includes food, a place to live, clothes, medical
and dental care, and cost of education. In figuring
support, use the actual cost of these things. However,
the cost of a place to live is figured at fair rental value.-
After December 31, 1977, capital items such as an
automobile or furniture must be included in determining
total s ' upport, but only if these things are actually given
to, or purchased by, the dependent for the dependent's
use or benefit. Before January 1. 1978, capital items
may be included in determining total support if it is to
your benefit to do so. Suppo.rt does not include the CO
of a capital item. such as furniture purchased for the
household or for use by persons other than the dependent.
For more information and special rules for
1977, get Publication 501, Your Exemptions and Ex.
emptions for Dependents. '
However, support does not include things like income
and social security taxes, premiums for life insurance, or
funeral expenses for a deceased dependent.
In figuring support, -you must include money the
dependent used for his or her own support, even if this
mondy was not taxable. (For example, include social
security benefits, gifts, savings, welfare benefits, etc.)
If your child was a student, do not include amounts he
or she received as scholarships.
(3) Married Dependents-Did not file a joint return
with his or her spouse.
(4) Citizenship or Residence.-Was one of the following:
a citizen or resident of the U.S., a resident of
Canada or Mexico, or an alien child adopted by and living
with a U.S. citizen in a foreign country.
(5) Relationship.
(a) Was related to you (or your spouse if you are
filing jointly) in one of the following ways:
Child Stepsister
Stepchild Stepmother
Mother Stepfather
Father
Mother-in-law
Grandparent
Father-in-law
Brother Brother-in-law
Sister Sister-in-law
Grandchild Daughter-in-law
Stepbrother
Son-in-law
if related by blood
Uncle Nephew
Aunt Niece
(b) Was any other person who lived in your home as
a member of your household for the whole year.
The term child includes:
your son, daughter, stepson, stepdaughter;
a child who lived in your home as a member of your
family if placed with you by an authorized placement
agency for legal adop~ion; and
a foster child who lived in your home as a member of
your family for the whole year.
Student Dependent
Even if your child had income of $750'or more, you
can claim him or her as a dependent if he or she was a
full-time student and met tests (2), (3), and (4) under
Children and Other Dependents on this page.
To qualify as a student, your child had to meet one of
the following tests:
.
. (1) was enrolled as a full-time student at an educetional
organization during any 5 months of 1977, or
(2)* took a full-time, on-farm training course during
any 5 -month* of 1977. (The course had to be given by
an educational organization '
or a State, county, or local
government agency.)
Educational organization means a school that has a
regular teaching staff, course of study, and a regulady
Page7
enrolled body of pupils or students In attendance. It
includes elementary schools, junior and senior high
schools, colleges, universities, technical and mechanical
schools. It also includes a night school in which the stu.
dent is enrolled for the number of hours or classes that
is considered full-time attendance at a similar day
school. It does not Include on-the-job training courses,
correspondence schools, etc.
For more information, you should get Publication 501,
Your Exemptions and Exemptionsfor Dependents.
Children of Divorced or Separated Parents
In most cases, the parent who has custody of the
child for the greater part of the year can take the ex.
emption. But there are exceptions. The parent who
does NOT have custody (or who has the child for the
shorter time), may take the exemption if*
(1) that parent gave at least $600 toward the child's
support during 1977, and the decree of divorce
or separate maintenance (or a written agreement between
the parents), states he or she can take the ex.
emption, or
(2) that parent gave $1,200 or mote for each child's
support during 1977, and the parent having custody
cannot prove that -he or she give more than the other
.parent gave.
Nate: For purposes of determining the amount of
child support, a parent who has remarried and has
custody may count the support 'furnished by the new
spouse.
Dependent Supported by Two or More Taxpayers
A special rule applies when two or more taxpayers
together paid for more than -half of another person's
support, but no one of them alone paidasover half and
any one of them could clalm the person a dependent
except for the support test: If this is the case, one of
the taxpayers can claim an exemption for that person
If he or she:
(1) paid for at least 10% of the support, and
(2) attaches to his or her return a signed Form 2120,
Multiple Support Declaration, from each other person
who paid at least 10% of the support. This form states
that the person signing will n at claim*the person,sup.
ported on his or her own return. '
Death of Taxpayer
If a person died in 1977, or in 1978 before filing a
return for 1977, the surviving spouse or personal representative
ofthe estate mustfile a return forthe person
who died.
For these instructions, the personal representative Is
the executor, executrix, administrator or administratrix
of the estate of the person who died and who ls~.quallfiecl
and acting within the United States. However, if none of
these is appointed, the personal representative is the
person in actual or constructive possession of any prop.
erty of the person who died.
Page- 8,
The personal representative can file a joint return for
the person who died, if the surviving spouse agrees and
did not remarry during the taxable year. If a personal
representative has not been appointed, the surviving
spouse can file a joint return, if he or she did not
remarry during the taxable year. The 19771ncomeofthe
person who died and the income of the surviving spouse
for the entire year must be included in a joint return.
If you are filing a joint return, please write in the signa.
ture area "Filing as a surviving spouse." Show the date
of death In the name and address space.
~ For more information, please get Publication 559,
Federal Tax Guide for Survivors, Executors, and Admin.
istrators.
Rounding Off to Whole Dollars
You may round off cents to the nearest whole dollar
on your return, provided you do so for all entries on yow
return. You can drop amounts under 50 cents--mincrease
amounts from 50 to 99 cents to the next dollar.
Example: $1.39 becomes $1 and $2.69 becomes $3.
Recordkeeping .
You must keep your records as long as their contents
may be needed In the administration of any
!nternal Revenue law. Records that support an Item of
income, deduction, or credit appearing on your return
should be kept until the statute of limitations expires
for that return. Usually this is 3 years from the date the
return was due or filed, or 2 years from the date the
tax was paid, whichever occurs later. Some records
must be kept indefinitely. Records of transactions relat-
Ing to the basis of property (including your personal
residence) should be kept as long as they are ni3eded In
determining the basis of the original. or replacement
property. Copies of your filed tax returns should also be
kept as part of your records. Please get Publication -552,
Rerordkeeping Requirements and a Guide to Tax Publicationt,
ifyou need furtherdetalls.
Penalties and* Interest ,
You can ivold penalties and interest by correctly fil-
Ing your return and paying tax when due. The law provides
a penalty of from 5 percent to 25 percent of the
tax for late filing unless you can show reasonable cause
for the delay. If you file a return late, attach a full ex.
planation with your return. Penalties are also provided
for late payment of tax unless you can show reasonable
cause for the delay.
Taxes Not Paid When Due.-The penalty for failure
to pay taxes when due is 1/2 of I percent of the unpaid
amount for each month or part of a month It remains
unpaid--up to 25 percent of the unpaid amouffL The
penalty applies to any unpaid tax shown on a return. It
also applies to any portion of additional tax shown on a
bill If it is not paid within 10 days from the date of the
bill. This penalty is*in addition to the applicable Interest
charge on late payments.
in

Do You Want More or Less
Income Tax Withheld in 1978?
If your payment diie IRS on line 15, or the refund IRS
owes you on line 14, is large, you should see your payroll
office about changing the amount of tax to be with;
held from your wages. If you return to work aftera period
of unemployment, you may have the amount of income
tax withheld lessened if your employer agrees to use the
part year method of, withholding. There a4 also other
methods of withholding which, in some instances, cou Id
reduce your withholding. For more details, see your
employer.
Declaration of Estimated Tax
Generally, you do not have to file a declaration if you
expect that your 1978 Form 1040A will show (1) a tax
refund, OR (2) a tax balance due to be paid to IRS of less
than $100.
Citizens of the United States or residents of the
United States, Puerto Rico, Virgin Islands, Guam and
American Samoa must make a declaration of estimated
tax if their total estimated tax is $100 or more and they:
The Privacy Act of 1974 says that each Federal agency
that asks you for information must tell you the following:
1) Its legal right to ask for the information and
whether the law says you must give it.
2) What purpose the agency has in asking for it, and
the use to which Itwill be Out.
3) What could happen if you do not give it.
For~ the Internal Revenue Service, the law covers the
following*
1) Tax returns and any papers you file With them.
2) Any questions we need.to ask you so wecana)
complete, correct, or process your returns,
b) figure your tax, and
c) collect tax, interest, or penalties.
Our legal right to ask for information is Internal Revenue
Code sections 6001 and 6011 and their regulations.
They say that you must file a return or statemeAt
with us for any taxyou are liable for. Code section 6109
and its regulations state that you must show a social
sectirity number on what you file. This is so we know
who you are, and can process your return and papers.
You must fill in all parts of the tax form that apply to
you. But you Tdo
not have to check the boxes for the Presi-
dential Election'Campaign Fund. You can skip that if you
wish.
Privacy Act Notice
(1) Can reasonably expect to receive more than $500
from sources other than wages subject to withholding;
or,
(2) Can reasonably expect gross income't6 exceed-m-
(a) $20,000 for a single individual or a head of a
household;
(b) $20,000 for a married individual entitled to file
a joint declaration* with spouse, but only if the spouse
has not received wages for the taxable year;
(c) $20,000 for ' a married individual living apart from
spouse as described under Single on page 5;
(d) $10,000 for a married Individual entitled to file
a joint declaration with spouse, but only if both spouses
received wages forthetaxable year; or
(a) $5,000 for a married individual not entitled to file
a joint declaration with spouse.
Please see Form 1040-ES for details.
Penalty for Not Paying Enough Tax During the
Year-If line 15 is $100 or more and over 20 percent
of line 13, you must file Form 1040 and attach Form
2210. You may owe a penalty unless you meet one or
more of the exceptions explained on Form 2210.
We ask for tax return information to carry out the
Internal Revenue laws of the United States. We need it
to figure and colledthe right amount oftax. -
We also use the information for other reasons. We are
required by law to give it to the Department of Justice
If they need It for a lawsuit. We may give it to other
Federal agencies as provided by law. We may also give it
to Statesr-the District of Columbia, and U.S. commonwealths.or
possessions to carry out their -tax laws. And
we give it.to foreign governments because of tax treaties
they have with the U.S. -
If you do not file a return or give us the information we
ask for, you may be charged a penalty. And you may not
be allowed the exemptions, exclusions, credits, deductions,
or adjustments shown on your tax return. This
could make your tax higher. You could lose Social Security
credits or your refund could be lost or delayed. I
You may have to pay interest on the tax you owe. ..
Please keep this notice with your records. It may help
you
.
if we ask you forother information. - ,
If you have questions about the rules for filing and
giving information, please Call or visit any Internal Revenue
Service office.
This is.the only notice we must give you to eiplain
the Privacy Act. However, we may give you other notices
if we have to examine your return or collect any tax,
interest, or penalties.
I
law 9
"Orme"t------ sm"
U.S.
; .ditiridifill Income Tax Return"
1@77 1
.t rind "It Im ilitiall (it I*hd I.M.I. of beau Y;1"dad saaaflls, number
to, 04-! 1,$q2-
P-Ot loooo do- Crooner ..d e:erti,ofl..-~t M.
mt,x, or nual mt.)
at
51 rim
For Macy Ad Notice, we Tsixaxnooa~
psg'a a' ho'""sk"O' I '57S: as tg,717- r"y7Z
City, t- .1 Mt M.. SUI. ed ZIP We
140M , 15`7`0 WIV , Al tip o1~2v
am Po. CLEV
presidential
Election 0 00 you want $1 to go to this fund?.........Qn
C i
2)
Y_d71
No I
- Note: Checking "Yes" will Pot
ampa gn
Fund Ifjoint ntIltojot
increase your tax c, reduce
-
return, does your spoue-- a this fund? .
No your refund.
.
1
le
1
2' RMarried filin j i t t if l
11 Sing g o n re urn (even on y one 70 heeck kOBo
Only
Onee c Bo 3
had Income)
Married filing separately. If spouse is also fillnggive spouse's soclal~uscurity number IP the space above
0 and ter full name here 0 ........ .................................................... ............................... ........ . ......
n. : " rried Head of Household. Enter qua-lifyi-ng-name lo See page 6 of Instuticti-
Always check SO Yourself 65 or over B~ Incl n
Enter numbour Of
b.. checlood
07
the "Yourself"
box. Check
of er boxes if
thay apply.
Is Spouse ' 65 or over
c First names of your dependent children Who lived with, you
of Other dependents: rbbaoou~,. I fto~ _ Id =a1
( 1) Norre on Be and b It.
B 'i
d
..................
Enter number of
- children Pines 1~
(5) Did Sor, 11loonfid.
-hon 01
unner. r'to - Efflimemb. X
SAN?
dependent. 0.
Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . . 110
In
7
8
Wages, salari es, ti ps. and other amp ipyee compensation.
( Attach Forms
W- 2. see page I 1 .1 Instructions) . . . . . . . . . . . . . . . . .
Interest income (see page 4 of Instructions) . . . 7
unavailable, (0200 0~
10 0C
(6)
1200 oereereeloo-oree.
9
/00 (X
9a Dividends . . ........... I 9b LessZ exclusion ............. ...........I 11ance lo- 9c
(See pages 4 ancill ot Instructions)
X 10 Adjusted gross income (add lines 7, 8, and 9c), 11 under $8,000 0 to )-oree/ 3?0106
"Earned Income Credit. " If elig ible, enter child's name Do. ._JwErg
r6
.........
Ile Credit for contributions to Candidates for publi ffice.
Enter owhalf of amount paid but do not enter Prom, than C$25 0 ($50
............
7 Dic
it IF,,, Y 0U 1u`A ` N* T ' UlS* TO * FIGU ' ' RE ' ' YO ' ' UR* TA`
Xr * PLEAS ' ' E STOP ' HER ~NIGN BELOW.
Total Federal Income tax withheld (if I'll . . 7. 11 . .
$16.000, sov, page 12 of Instructions) . . .
4q oo
I c Earned income credit (from me 2 of Instructions) . . . . . . L
V167-
'E 12. Total (add lines lla, b, and C) . . . . . . . . . . . . . . . . . . ..... . . . . . . . . . . .
0
,e
9
I0
23
14
25
Tax on the amount on line 10. (See Instinuctions for flne 13 on pop 12. then find your tax In Tax
Tabl. On pages 14-25.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 12 IS larger than line 13, enter amount to be REFUNDED TO YOU . . . . . 4
IflineI3 Is largarthan fine IZ enter BALANCE DUE. Attach check or money OrderfI fu lount
amiyable to *'internal Revenue Service." Write social security number on Chock M money order F ' is
13 9SOO
1-4 120 00
15
" or U Of
' Under penalties of Wjury, I declare that I have examin thl. .to.. including accorn abor g:ntrying scroodulast and Statement 11, no to the ben
my knovolodg.
annd be t , it is truecorrect, and Comp lete . ad Decla nnion of prepamer (other taxpayer) I. b... d I nfomordion Of hilh
pr.p.r.r ; has *or any kno-wl y*L
age. ,
§ - 9g-mFumi7@Tile-n-tTry7ng-be, &~ ~ _ ,
-
to. cort. .
116 U)
0
*or re Date
.................... ....................... ............. ....................
.
on 16 .................................
P-0-10
-ploy- turmo. .--, no li~mllymg

Here's How to Fill in Form 1040A.,. .
(Circled numbers on the sample form on page 10 are
keyed to circled numbers in explanations.)
(1) Name, Address, and Social Security
Number
Please use the mailing label on the cover of the tax
forms package sent you and correct your name and
address if necessary. we You should also show your apart.
ment number if you have one. If you did not receive
forms with a label, you should print or type your name
and address in the appropriate block ori.your return. If
a husband and wife file a joint return and use different
last names, please separate the last names with an
"and" for example:
-
"Brown and Smith"
If your social security number is wrong * ' on the label
or if you did not receive a label, show your correct number
on your return. If you are married,. please give
numbers for both you and your spouse whether you file
jointly or separately.
If you do not have a social security number, you
should get an application Form SS-5 from a Social Se.
curity Administration office,,post office, or the IRS and
file it with the local office of the Social Security Admin.
istration. Do this early enough to make sure you receive
a number before April 17. If you do not receive a num.
ber by April 17, file your return without it and write
'Appliecl for" in the block for social security. number.
Don't forget to show occupations in the spaces in
the upper right comer just below social security blocks.
Q Presidential Election Campaign Fund
You may have $1 go to this fund ty checking the Yes
box. On a joint return, the election is available for both
spouses. Both of you may elect to have $1 go to this
fund. Both may elect not to have $1 go to this fund. One
may elect to have $1 go to this fund and the other may
choose not to.
Checking Yes will not increase your tax or reduce your
refund.
Do not claim this amount as-a credit for contributions
to candidates for public office on line Ila.
Note: If you check a Yes box, you may not change
that election after you file a return. However, it you
check a No box, and after you file your return y6u wish
to designate $1, you may change your election to Yes
by filing an amended return on or before December 31,
1979-. You should use Form 1040X, Amended U.S.
Individual Income Tax Return.
,(I) Filing Status-Boxes I through 4
Check only one box (I through 4). Your tax rate de.
pends on the box you check. So before you decide, see
the instructions for Filing Status on page 5.
@.Your Exemptions and Dependents--_
Lines 5a through 6 _
See the instructions for Your Exemptions and Chil.
dren and Other Dependents on pages 6 and 7, to find out
whom you can claim.
(1) Wages, Salaries, Tips, and Other
Employee Compensation-Line 7
Give the total of all the wages shown on your Forms
W-2. If all your tips are not shown on your Forms W-2,
add these amounts in, too For a joint returni.combine
the total for you and your ipouse.
. If you lose a Form W-2, ask your employer for a new
one. If your employer does not give yow a Form W-2 by
January 31, or if the one you have is not correct, you
should contact your employer as soon as possible. Only
your employer can Issue your Form W-2 or correct it. If
you are unable to secure Form W-2 from your employer
by February 15, contact an Internal Revenue Service
office.
G) Interest Income--Line 8
Show all the interest you received or that was credited
to your account by banks, savings and loan associations,
credit unions, and others. Be sure to include ifiterest on
tax refunds.
(D Dividends-Line 9
Please thow the amount of all your dividends on line
9a. Fill in your exclusi6n on 9b, then subtract it and
show the difference bn 9c.
You can exclude, on line 9b, up to $100 of dividends
received from qualifying domestic corporations.
If you are married filing a joint return, you and your
spouse may be able to exclude up to $200 of dividend
income. Thus, if both you and your spouse had dividend
income from jointly or separately owned ~tock, you may
each exclude up to $100 of dividend income. However,
neither of you can use any"Part of the $100 exclusion
not used by the other in the case of stock owned
separately.
For example, in our filled-in form on page 10, John
Brown had $200 in dividends and Mary Brown had $20.
Only $120 may be excluded. If all of the stock on which
the $220 of dividends received was held jointly, then
John and Mary could have excluded $200 ($100 each).
Taxable dividends from the following corporations
do not qualify for the dividends exclusion:
(a) Foreign corporations, including your share from
a controlled foreign corporation.
(b) So-called exempt organizations (charitable, fraternal,
etc.) and exempt farmers' cooperative organizetions.
(c) Rejulated inves~menf companies, unless the companies
have told you how much of the dividends qualify
for the exclusion.
(d) Real estate investment trusts.
(a) Electing small business corporations to the extent
the amounts are distributions out of current earnings
and profits. However, for this purpose, current
earnings and profits are limited to taxable income for
the year.
Note: Earnings from savings and loan or building and
loan associations are often called dividends, but they
are really interest and should be shown on line 8.
0) Ad justed Gross Income--Line 10
Add the amounts on lines 7, 8, and 9c. If line 10 is
under $8,000 and you are eligible for the Earned Income
ftg. 11
Credit, write the first name of your child who qualifies
you for the credit on line 10. If line 10 is $20,000 or less
($40,000 or less it married filing a joint return), please
go to line I la.
If line 10 is more than $20,000 (more than $40,000
if married filing a joint return) you CANNOT use Form
1040A. You MUST file Form 1040.
CreditforContributionsto Candidates
for Public Office, etc.-Line, 11a
Add up the money you gave*to help pay campaign
expenses of candidates for public office, political committees
AND to newsletter funds of. candidates and
elected public officials. Ifyou are filing a separate return,
enter HALF the amount you gave, but NOT MORE
THAN $25. If you are married,'filing a joint return, enter
HALF the amount you gave, but NOT MORE THAN $50.
Note: If you do not want IRS to figure your tax, the
amount of this credit cannot be larger than the amount
of the tax shown on line 13.
Do net claim this credit for the' amount, if any,' you
checked off to go fo the Presidential Election Campaign
Fund.
@ If You Want IRS to Figure Your
Tax (including the Earned Income
Credit if You Qualify)
Skip lines llb thro ugh 15 and sign and date
your return. (Attach Form(s) W-2 to Form 1040A).
If you are filing a joint return and both you
and your spouse have income, you should show the
income of each separately at the bottom left
margin, so IRS can figure your tax the way that
gives you the smaller tax.
You should file on or before April 17, 1978. We
will then figure your tax and send you a refund
check if you have overpaid or bill you if you did no,
pay enough.
If you qualify for the Earned Income Credit, be
sure to write the first name of your child who
qualifies you for the credit on line 10.
If you do not want IRS to figure your tax, complete
the rest of your return as follows:
Income Tax Withheld Including
Excess FICA and RRTA Tax-
Line 11b
Find the amountof Federal incometax withheld shown
on your Form W-2 and enterthe amount on Form 1040A,
line 1 lb. If you have more than one Form W-2, you will
need to add the amounts of-income tax withheld to.
gether. If you are filing a joint return, add together the
amounts withheld for you and your spouse. You should
also add anyexcess FICAor RRTAtaxasexplained below.
If you had more than one employer in 1977 and together
they paid you more than $16,500 in wages, too
much social security (FICA) tax, railroad retirement
(RRTA) tax, or combined FICA and RRTA tax may have
been taken out of your wages. If too much was withheld,
Page 12
13
you may be able to take credit"for it against your income
tax. Please follow the steps below to figure your credit.
If you are filing a joint return, you have to figure this sep.
arately for you arid your spouse. If you are a railroad em.
ployee and claim the credit, please attach a statement
from your employer showing the amount of employee
RRTA compensation and amount of RRTA tax withheld.
Step L Add all FICA and FIRTA tax w0held by employers
from your wages for 1977.* Enter the total here
Step 2. Subtract . . . . . . . . . . . .
965.25
Step I Add this amount to the Federal income tax with-*
, held and enter on Form 1040A, line llb . . . I $
*Note: Do not include more than $965.25 for any one
employer. If any one employer withheld more than
$965.25, you should ask the employer to refund the
excess to you. You cannot take credit for it on your
return. If you included any excess FICA or RRTA tax on
line I lb, write "excess FICA" and show amount to the
left of the line I Ito entry space.
@ Earned Income Credit-Line 11c
If line 10 is less than $8,000, see Earned Income
Credit Worksheet (and Special Instructions for those
who are not required to file a return but can c , laim the
earned income credit) on page 2. You may be entitled
to a 10 percent refundable credit based on your earned
income (line 7).
For example, in our filled-in form, the Brown's earned
income credit was figured as follows:
Earned Income Credit Worksheet
1. Enter 10% of the amount on Form 1040A, line 7.
but do not enter mom than $400. Be sure to attach
Copy B of Form(s) W-2 to your return . .
Note: If Form 1040A, line 10, is $4,000 or less,
you do not have to complete the rest of
this worksheet-just enter the amount
from line 1 above, on Form 1040A, line
J1c. Also, write the first name of your
child, who qualifies you for the credit, in
the space on fine 10. (See Note below.)
2 Enter amount from Form 1040A. 186,380.00
li 10 -
ne . . . . . . . .
1 4,000.00
3 Less
4 Subtractline'3fro.lin.2' I-F2,.- 380.00
5 Enter 10% of line 4 . . . . . . . . .
238.00
6 Earned income credit (subtract
1). Enter here and on Form 1040A, ""aline5 Ifrom It. Also, line
wnts the first name of your child, who qualifies
you for the creditI in the space on line 10. (See M
-Note below) . . . ;-:~ . . . . . . 131,62.00
@ Income Tax-Line 13
To find your tax, you will need to use the appropriate
tax table. If you checked Form 1040A:
Box 1, use Tax Table A (Single) on pages 14-15,
Box 2, use-Tax Table B (Married Filing Jointly) on
pages 16-20,
Box 3, use Tax Table C (Married Filing Separately)
on pages 21-22, or
Box 4, use Tax Table D (Head of Household) an
pages 23-25.
After you have found the correct tax table, read down
the left income column until you find your income as
shown on line 10 of your return. Then read across to the
column headed by the total number of exemptions
claimed on line 6 of your return. The amount shown at

0
258 Individual Returns/1977 e Forms and Instructions
wR
S5 le
LLI
NC
GO
pk
cS E.1
E E
E *E '21
".- :
g 4. a
EL.
§99,:: 9999 9-.*1§ p T Mr W:5 DUR HU IN,!? RM
Rag gggg
E3 .~j -
-
- - - -
-
- - - -
c SIO 7; F F I;t -Z g aI ggil §1,.!l jjjj -Ilk V~Xg
R
E
I CIS
C;
f C*
E
cow
sit URI
2:2 IFF
.
- - - -
gggg I _~F §GP2
-nn cl
t: le Asag! 2 1A -;E 9 R A E N A E,
6de dd d cr a r dd csc:;d
- - - - - - - - - - - - -
ad
9:; 512
- - - -
d d Im IdIffe Ig11 d 1111
4 Id
a.
a a
t" ;Q's 81
- - - EMER
Ia. Udd ddd ci~ j c; cr c;r
Eeem gi v
5 Ing 51824 !,1 St4 21~4 Z~Z4, a4aI §FRI a a St 8
.6 d f 2
2 M:
d ~
d d.6
IJIF II I
Id ee
cr -
Rs IS 151
2.62 jG
. . . . . . . . ... . .... ..oo loll :!&m 29398 SIPZRI
- o lol l looo r~ W7 2 9 2 vs
SIRTS GO~lz SMI! FARAV SQIRP Mzg~
- - - -- - - - - - - - - -
If :21 if 11191 1,10.1 a I!! ml alsk St§§§ 1101 still §§FR Rqua 5t§§§ uFf
Raja lag! fla s
1211 !!IF Ran gan wo §182
2 42P c.1 RRFF
. ..;d un
f.F.Ff un far.; ,
CL-
E CE L
0
C
:E2 - -
Z,
E
0.
~i "- *~ 2 = *,& :~ P.
8 - .0 E 0
Z
0-
12
c~
. 0 9 . ~'~ a!
..Sx 0
-=T9 -
a -0. V -jC6 N
0
E -
E.
E
0
-6
IL
if
E
w
.
E
0 T. 00c.
LD
-0 E. to ~~p
&Co~.!.-o
1,
o
a -2
T ,
=6
-0
o
w U
a
0
-.EL
1
0
0
E =0
E 21
a E 2! 'S E 0'
U;
to .
51
-w
0 ;C
~2
=8 ?L ~ E w CL E
a
12
a.-
E -~B
E
M .0:3 C a., ~L , n.
.91
2 E fi Z~-12 0
Mo -np
3: 0 0 5 % CL
'0
~5 t 0
~w 2
0
K
20
0. =0 , 0 E
12
2 E - -8 m~ .
-5
-
E .0 a Cm IE
m 0 Ow 'a -i p -9 W~ OZIC 2
9: E. 15 1. a ..S
Ow ~ a ~2 ~ra a M .0 CL
S,~ g ~ w %, 0 -~C C
too
a C 0
V.a
. N
NR ~i ':5 ~ = r' -L~ , = 2 'Q79 -2 '- E C6
L
-16
S,, E. V E
a E E 0 Z, U0.1.
E-8 -2-T-r SO o
-1' M 2. -- a E-.2
o M C11
a's = 0 CL:E - - - - K - - cc
t
E
=0 a W,
E -E-
. S . 0 8, E
E
E
E
C 0
'.2
!L-- wo 2 C, C
E'R ~.R tj L: '-p 0 -1 to E
a x
z 0 Z: 4 E
0 M:2 16 S
'D 0 ~- C 3: C
1 E a
Cn 0
a V -;.r
.
E a m . . < ' _0 . Q 2 - 2~ . -E~
P
M1 -S E 6 ~:t C
M 1 5 0
x x
=0
x
= ~
1~ -P
E -E j '. -6 0 W~~ EV o
0 M W a 0
O'S C '5 E =0 0 1
, N,
0 0
Cn,-=
L.
7;j
I
LO
7&
Wr
5
~j
0
S
1
I W-
rz ,
0.
E
iR
EQ.E
0
0 0:6
,5 0
0'.
- 2
0
JE
o
Cli M 0
.
'E. E
0 w~ ,
0-
0
, (L
0
C
0
OE
2
~w
, M, 0,
= 'a 15 P, -2
C
E'
~=
U
.
-MM 21
0
E
V
0 0
~o '! P,- I ,
-6
~i= Cn ~2 E
C,
w
0
0
1..
, = ~o
, 0
0- tko :2
0. E.:;
'0 o 01 . ~
E E T -S 4,
0 ~-2-5
o o L.
M=
E.T
2 .0 5
0-
E E lz -.i CE
E E
E
0
w
=2 - H Z E
C
Yi
3
0
. 9
O.S
0:2 8 0
. V . -R -E a
. a -
f a 0.
0 . . a @ S .
0
00 C M
C 0
.5: x
cc
US
0
CD 3:
I's
ji
v4V

Ca
"d jo
P'.
E.
'E -- 11
CO 2_2
W
E.
t
ra
C6
_E 2 2 4 t
0. E.g ~'S
da Sf
,%
da
C
r- E
Eg
E
~ z
E
flE
E
eB
f ks
E
E
cc
Ln
Is cc
,also
ES
Individual Returns/1977 a Forms and Instructions
....... o o..o oo.o oooo.- oo.
ooo. oo.o ooo. o..o ooo o", ------------
AIGm. SAG@ 88::14 Wlvn ar_-s gS8~, R~gv R§5~ §APR APIZ8 RSV!M
- --- ---- ---- --
9RH -UH
',!SIR R§R~' Rff~ 58SO ggg§ E,2,4p 29.".p HI-9 HU
C-4 H!;.; UH 990~ M.5 99H HM W7 p VU FFH. HU H19912. C."n H gg ung
a)
C')
Cm
SIM UH HU PH RU611H SUR HU PFRURISM 3M HU HU RM Hal
----------------------
, til Im gus ngs Rumn upo §111 gm EMIR qsn IEEE un RIPF ASIR &3&§
--------------------------------
o o o a o o o o o o o o o o o o o o o a o o o o o o o o o o o o o o o o ~ o o o o o o o o o o o o o o a ~ Q ~ a v o o
.
o-o-so-o.....ooss ........ o-ozo.
o o o o o o o c o o o o o o o o o c o o ~ o o o o o o o o o a o o o o o o o o mo o o o o o o o o o o m o o
sptl sm MESS sill
a 2
pFI sIss MIMI 2821 MIS& ags 2 st
An §341
----
N- ----
- - ---
- ~i ~6 ~d ~i P~6~6~6 6~6AM4 ~s ~6 A
RE 11
:
z : : :~ : :
1 a a
2
1 1001
1
.511§
11 ti ll - - - - - - - - - ~ - , - - - . - ~ - - - - - - - - - a-
-S.6 - V .6 - . - .6.6a -- - : - - .6 -
4
MIR
Mg I i! HU
282 HIM st a a 51 45112 §§?F 1211 1 sI R uFF Ills kggs 1 2 A M ksl§ §§R~ 1111
.6.6.6.6 a 52 :22 S.6.6.6 U.: aak.; aara,
aaa a a a ~;,q aaa~q ~j cl aa ~q a a,4 a
H99 RUR c~ c' c1 c 8;;~A "g~gz~l
4 ! L l c1L
N r! - - - R U !MH 'Am gz & 3
---- --
'i a aq a,4 "-,q ci a a~4cia 'N aai a,4,4
EA cl nfi~
c4 cf,4 c4aqa. un
cFcic4c4
R R
cr a a
ci
ze St 5
a-
- P" . ~,~ 2
Ht . E-
9. 9_1q
H .,R Q, 9
.... ~t .... L .. USE
.... i - -
....
... - - ME - - H9
- - -
IFFN sag& 51 gal un §611
-- ---- ---- ---- ---- ---- ---- --- ---- ---- Sas ---- ---- ---- ----
lin
Wn i.; . W 44 44.; 4 . 44 -rfw; arr
9 "e R R_clclt 9 Q, RV`2~ - -.~iclk - - ~ -. R- . R- . E2 -. 99q:! -. -. -... - - - - S't - RM - - - - 14H ~q - -i - -. R-
. RE! -. - - -1 Iq - H&S - --- - - - 9§-,§ - -- IR - -. A. - - - - - - - -
~ zl
Ca 1
cow
- -
- - - - - -
-
- - - - -
g
.1q
!e
- -
.19 IR
-
It
-
Uls'. git-"l,
-9
12 C; K
M2 St R12 2 R -, RH§
..
. Hg§
. . . . S . § . C~ . RF~~ 6; 9,4 SM SHB: L ~ii c';
uFF
4
- qXR8 S a RI
- -.1 ~ :!,:.:4 MR 411 mg g 1:51t 1 st IR I mj Jul lm
4.zr- - _r cz liaa
; -j R ~! ~fRe M; --- ;
sm
2"P.; HH.
.4 ~; ~;.4' "21 It P
- - - - - - - - - - - - - - - - - - - - - - - - - - - - _ - - - - - - - - - - - - - -
§313
URF ASIR s I R §§PR lul §m §:51, 11 1 MIR §§FF IM 1! .§§ F~ gs I R SuR §§ P3. REIR
aclaa - - - - a- - a- a-
Z; - -~ a- a-
2 = aaaa - - - - - - -
.4
- - - 17 - - - -
;P
- - - - - - - - -
..f
- - -
'I
-
259

V
-3
U.
tos
1*4
tj-pp------------------------------------------------ pipg j:tpi PPPjP PPPJ- PPPj pptp
lxri ts-rgcn:j g:v-n
gluls v HUMS 889 99HRIUSH USHIS gig ISH
--- ----------------- ----- ---------- -------
-PPtj:P
ttp. ivP9:!lt:t:c IVM: 1. MCI, t;
U s E ssig Hi s 8SH
ssag is HOSIS
-0-
HU 219-Iff 9M RTMIS TIZIMIE "1 29 F HU HRW . H"
---------------- R
m u kM;~ un PEE F§R,2 On gm ma Rns Run, THH'.
----------
99H MH MI.- 20H 9-1-9-2 999T. HU 914U 9992 ESH 2HE -,.ge-, s Wv.~ P,
A ~S~ M~
RUMS99 THU J999 9_1_U2 M2 HER S" § i E I- Z"l 9 9 S §H t Z gm_- un ~nU H-H M__"
;1~19MHS HVI S-RH EM UNAS 9AP--, !_:An Nvu n2s.2 8~~Ra-t nn"Hl V-Nna
I-- A 'A" E 2 a 9 ~ 9 S.2 i N 9 6ii 6.:: 8, a! 2 Es 8 _::...........
----------------------------------------------------jcPPPPicp.p
P
99HISMS' MIMMUsisHle, 119 Hill als9l Hiss g1sisH Issr. s H9999
-------------------------------------------- -------------- m-----------
Isillsfigaggg salMsUgHlisiggs sig 19HUHM891r,
R~.tg ~~p -------- 1S.E.Rag
29 V .::SRV ..,W:: .!!T. W= V-1
E 9 9 "R "V WE
k3 T _8
R Eon- m_ T
_ee
;_4I E ~_3 t_? -8 a -N -8 -2 -~-3
g A- &t t t 8- si 'n
-----------------------------------
sitti: SP, H", HEM "Mn un 6":~5;g irt
w~s nl_
ITEMI!i" ll,~
sRse sa~-, -.w2E
IMM.? ME'. 5 i H _2 ERR MIN WHI. 29M 9.1-1-Hr 2H.T. M-1. U-11WI,
s 22E~- a, E.- @ T
'13110311!flutf t1tMV2
CM.
Utthm titntu tltmu
MM-1. pytto , mol PPIEP.0111mial
P-P----- C.PPP--P 6'=
BR E 11,119 FiliilIM- S 9 _9 80-8 M191tv Has RN O H-11I'll' S s 11111"PR'llH- S I 1 Na's us Uts I a wilSM11 -
M_"_3 91V~ rig Ei~&g M M9 HE- -HU _HF-i" Q)
gaRER-39 THE 2939 PRE HER ON MU PIE E939 ME 2-g519 TM -,=S9 M99 V2 9i N S 9
IHT a 1 5i3 1 E i i g 9 9 a E s I E 2 1 E 9 E 9F: a wl, 1 0 !_tI H
g 5e n p te N w i 8
------------
i: i
K rw,
a* a
-4
-1
i
Ul
.999H -4
VTH Vii 29M 9-211 .-UH Unnliz EHHT., 9949-9iii HIS-9 SHE MEN -I-gig
MT. I
IN. HE 'l-Alffis ISMEMME
9USIMUMIS is Igor, HoUgst His MUMMIES Is"Na'-stus ME gigs
------------
992tHl 9"""'52IM 9 Reg ~~199.v SOM ;H EM 11-S a, SM T" Eta N-
8s 3= 1 t,
S.S.P. PS.S.S. Wojw ...........-
-5-5.-HP51P 5.5-Ps.Pppt tpss- ~Pp~ ps-ps-
YHM egg E: ~~-HUM§ Uff 1916- .2-Mg 11H aUP-M-, P P.,
T
I
'INH HUM.! HAH99M HP 1991 U~HHHMH MM -4
rii 2 _" 11I
I , .
MaN.Um= I
%_Q'i aggl ON 2912 91-H M2 _86-&f six MH HC.2 NET N"
Rgt2 8j:4j
- - .2 .
._.
suoil6nilsul pup swjo=l o LL6Ljsujnj98 JUnp!AlpUl
,§
TN
&
0,
rr
m
ca
a
0
cm
40
m
ta
09Z

V12 PIPPpIl pill jl~jj ws'!4 ts wvm w4 ws ws a ~~Ijj tjIpj ~Xpx PD111njign
His s s i s 't't'iNgtt' s Is s s *1 "t" Is 19 ai Ell HUM 8 9 88H
YY 01 cl 21 rs w W. bi DI w rj MPH UPPYPM INI NEI 1!3tj ti ts!m ti !3Nw3 W4 Xv! all
IMM-N-Att' S -g-H! s I N99911 2 is is SEE 8 98 r. st', s t'gi-1-9 til ls Im IM HISt gig
pppp P~-Pp SAPP$- PPS-j- 5A.-s- JAPPP ---------------
HU
HII
..................
-----------
9
.............
Its ;-G'R SWE .TM2,§ O'g lNg ZVOMI t a-! § E g j§ 9, S -6 R
3-PS-P PPPS- 5-5-5-P
a0a an FEE; usp ~Hn n a mg mv- uni f~gi gk§ ug~ gm 1§99 T-lUg ME M~ 89:19
ps-s-5. S-Ppp PPS-5- PPPS- s, ........
8- ;.3
-w........ ppsp pppp pppd s-ps-s- 3-ps-s- ps-s-s- w-------
I -g pi 9 9 9 1 § R E 9 1 E 9 o" . 2if 2 E 2 8 1 ~ 9 W 9 22 9 i w- 9 -w . U! ~g i 9i~ 9 9 § E 9 119
isr-en M311 ~~jsfs PA13i E,11:1 ~~ nI !nnnf !!!vI!I nm! Esfqj jilml vitp V~Izs so its uuuu ust1w
H119911s SaHM HE Mis gill s
risr-j: Pis;sp is;:1213 isr-H n ur-e md j3E !f!2!! !2!!!t!! !2!M!f It Isis 9 21 flit
MI np it P. tiNis x;R;s;I
HE 19 88 a 9 s
P's-pp, S-P'PP' 5-s-gs. ps-gs- S.S.S.S. s-P'P'P' P'P'
E 9 Rs N 9.9 9 V. Y :.2 r. -T R 1 32 -~' ^-. -'- .5 a -is- I sup-w - E 9 4 g-us. 9-9X PS5. 4. s-s-s- 9 i,i 8- s-s-s-s- S-S-pp E sp-ps. I -ps-s-
- , ~ .- - --- P, - 5.S. p S. S.
S 9 2
t -- -,&, R 3-P s- S.--~ ~ ~-F p p s- p p s-
~Viz; ~S- -§EV- , T ME IHM 5Hii 8-M
§98.
26 RITTP- T91-i's ~M PH ...
IMI wai 1- . 1-
PPM P P!-PPI 5-PIS-3- S-PIPP ~ mgp
--
-1 HI "M M r.;J88w MH
8 § F H 1-1 §9 E S 9 5. 9 1-1 9 E los 4 6 -.1 9 9 W, 9 H4 9 2 R 9 ~ .-N IN" 13 .
-H-8HRU 19.129:~F^M HIM HU UH z"M ~H~g HHE RIHn qp~ up mug
H
'n ;'j s ~ w" ~2 2"! 6% ms g~6 g a P, o. o's T 2!~
Si
9 -.1 9 9 w t"g 2 8. 9i.;: A 19 2 R § ? E 2- 81; 9 9 9 Ui 9 E E 2 R R f E 29 9 'n 9t ii HNM
X
§ R u 8- -9 -2 E t
FVob,
,
xxxx NNNic XN!-, 9 ~t~nl --;g!z --#E- ;;-gi Xjig It v J02jeja -jej!'rid jsu#;- isaur
Mi 9199 igig ME gs§§ USA usla" iit tt gill His,t -1 im His i'all 'r-Mrt I sgs
ME s ii g INI ME -4 8 8 --' s 5 1"1 15 M E I gai ME tus ME IM' 89H gigs i" 1st's PP5pp p5ps-c- ppolm PIPIPP, P.Ppp, P-Pp:-
:Q:4:4:4 :4:~:~ ~ -- -- ~ ~:~:4 :4:4:4~4 :~:~:4:4
- - - - - - - - - - -
N 12 1~ 4 9 RUE M9 EFU UH 9H, j so- T ;~8 Iff, Z! V~ ^9;1Ht t ~ ;"j LIR HH g ~ 6i i
g
o E § E E E "I ME 9 -.- 9 -9 2 e" E f E a E.9 9 18 9 Isit HU HP 9 2~~ 9
p.s.- -..m. p.
-I- M-- 611., Ic nl~;i 9442 Un §T!"2 ""I musi im gug 11H -:: I ZIA O~t 9 -g m-~ Z_j ZI:
st-I-s!
-9,§EE
PPP'P s-ps-s- s-s-s-p 3-s-s-P
PPPP ppps- mopp
H
-.;-4 § m- 8 itzg §1~13 §US §T
M IMM 9ZI.V9 .:2i-~, M. tn§E - po. -5~
---t
-
a:.
-
IZ I: -
11 5: o V299 12M E -1 § -1 -1 9 -1 8EU PEI- M§ V 9 -IR ;1~ U, 1
ME IN so A -1. 1-. ~ 9 EM T.f-Im E 9 IR Mt~ UM h" v i i 6 ii i § -I 1 9 Ma § R, Ei -1. 2o R Iv R 9 RM Uji
2
9
2
.
§-t t
-pps.
Z
se 8 w2 RL!i;: grz§
§..T - - - -.§. - - - -!k.E - - - - - -
28H
- - - -
Tp. ~82 I- -s~ Ev-0-i-p-E T t t z
H vs. 8z m- M. SM I R ME 2"IM.2 WE tHH" K~~ SMH R 9 g F &
.U.-tt Is 8 IV*t iv 1 -9- -§ u;sfj 1-9 § S. E;I~sls MR ;~svu i g 11,t ummid is, H-1I xrxjs ign rsur IItt mg 91's ~~Vv 88,31 tl,st wvv4 git"t !4!3 'Mot !3 ~"!vd Mst n!3 ~- n '-sit'l NXII19 Hil 9XV19 Mg
wdws wie-~ wd!v4 wml --!s- !3up- -NIN
P819 98-io M E 8n mcit 1119 999i HE S M E t 9iI' S -t i,H s E M`'i s s Hatl iii-5 1 iiii i- s-li,
Hil
p 5. P.. P.. P.. ...w -p
p PPPP $-PPP ~-WPP P~-PP $-Ppp ppps- s-pp's. PIPP-P 9-5-PP, Ps-s-p Ps-s-s- 5-PPP PPIP-91
E 9 9 9 IM EM 9 v -1. V~ -e 22 9 MTH i 6 ~i: Z- 92H PH W-291 H19 Hag HgTi Off "T 1-- .1- -1
.... .... .... . .... .... .. 5.5. pp'ss.
aj 4eAl? .1W28 TEA L!8.19 81 V 4 1. mg Tis - ---- - -- ---- - - - - g g
Egal
- g -- ~ m~E R4--ai !~ !2 r ~ .1 E ~ ~7 R- 24~g
. .... . .... -.. .... .....
.
-
~b"V. . gu'.
.. ..
M-8 A ~-i 8- -8 `N-r. 82 smva 29 :i ai uls aint g. . g t, 8:- im MR ME ME
s-PIPP PIC-s-p- 5-PPIP. pppp PPIPP P-Ps-s- ~-Plpp. PP'FP p- . .... . . .
HES HU -1. 9 22 s -,~ET t n~El~ v R tb,-W~
. . . ~ g ~~! Z~ -. -9 1-8 r-, -8 § -8 91 W 8 iG Ls zj
PP.
pp PPP5.
" t!fs~-
E ~ S HTP- E U99 HH9 E U I -@ g nP, ME ma i RH §
S.Ppp. PIPIPPI PPMPI :4:~~.:- -- -, ,- -- --
.
-
:~:~ N
9 -8:-3 z ~ 5 § -1. R R E I-- Ell I R 999-1- ~-I! ~ 9 FEM Im uns vv"RR 1.,i i 99-- ME F'p -4
§E.T .8- -g ET.b, -g
st
-n
-- --- - ---w"mg
99-Tsg HE? HIM IM HER !-! R! 9 R Me
"ET 1- -1ia M9 -nm nm mig 881 guz-1 --r -1 --.- E
-P-P gmgp P5-ps- g~p~ ~~Pp ~p
Mg ME 9R.91 5:9H H.,-z SUM M9
M suoilomisul pue swjoj a LL6LIsuinjaH jenp!AIPUI
6'
cn
ca
-4
7-
co
c 4n
co
H
L
M
-C2
owl

mi pa-m ismaimiiiii iffil -H91111"Hil ME -NaHMum pme:p9pipffili 11, 9 If
&HUH11 r as I§ r, NIMIN His *H P,H §31 M1 M:t: at, Iffil,
H.1-9 9M 511999 9--M K H t-lgig i~gi g~g~ :Uss T~!sv S~stt t!488 tgu8g ;3--
. . . . . . . . . . . . . . . . . . . . .. . . . . ... . .
P
pp.j
all C 81H PHU is"Hi cliff ps-is six I a Bill
uml -Iiii im iii8 i ciii U-SH Hill irsics iiii Hii Uff Upli ips-H iitsi I
IEEE 913.119.1-91 UTH 9059 Mal; 9w9s 99H 12H HIRE FUSE Ms H-,-~AVH
Mg MR 9211-Mel Im im RTS-A nnic EAU-2 A44-6- un O~H 99H,HM ff aff
i------ -
l ngugs&H,
mai --~m nAw g--m sm.2 min- ~-wgg ln?2- o~i Ste, W498 isTair
------------
Mi HU LI'LaM p-SM Mi ipfiii PHU N89 slog Bill IRS a SgS rjr
!!p rpp ptpp pppc jjjj j.!tc P:.4:.:-
1 PE Us is,i i P-9ii i, -ai'I i p!iIs i '-a 1 11: i ~ gar, gal Nail §618 S88 ME
---------------------------------------
IT g. 82 s
--§ -15-9 -R ri i -T 2 . 2 19 - i T T r. - 2 1. v T 13 WI-9
Ia
fi:-4 iiii gaag .V g g~:l 2-fl s I E s RE sl
§1
TWO
BE
!.Egg egg
- - - - - - -- - - - - - -- - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -
C C Cr tt: C " V "' Ci U p Ci tt 9j igir
:-:-:- :-
88198 a 11 is INS gals a SmIll sm! HE 11118911
- - - - - - - - - --- - - ----------- ------------------
pps-ppp. lpil: z-ppc,- - g . a E;jg . Jag
0
3.5 9gp
u-3~ja N511 g
, Ff,~Z-m V
H 31.
mo
'pall
,.s
ir 5 5
Fula, 9
V
COD
m
11. .03 CD
Iffilli s 9 a M91 -1 is --1 8 8. -1 1 1 § 9 s a 9 i 9
Cr
CD
N pP!.!. P!.
A Z N V E
. . . . . p?. ee :-:~e
n T g ;j :1
- - -
- - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - --
- - - --- - - -
9 9 1 a-;`gV-V I W6S 9 -T 't- ' ^a r- AV * ~ b 9 , ~ W Y 8
- - - - - - - - - - - - - - - - - - - - - - --
- - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - -
LLP Pj
gals
gici
8
4v
Bill
-PP 'PC
T
891 a a a a as SMS 991HIsfilt, 8 iis HP 91 3 8IlilstirMSM-9MI
T.
§8
mg-mg-mu mgtm.9 MI 9UH UHM iiia §9 w I u! usm-g-.M
!z
4zz;g Z;szz z;z-- ------------------------------
IM9 -Ma 4-0 is v 895 CA
VItt"i 8"H sip-si HCH HSI! PHU p-sps-H ps-iii HU is"SH-Ha ii 9H 'IMMA 10H ta-It
Int CMa --------------------------------------------------
-! P i ~ig i:-:- g :- ~::- ~: :-:-i Z i:.:- g
HS H ips
-ipg vPc
lass
PPPP.
M iss
Ccicit
8 so a a 99 1 HUH 13 Ws
-
..........-
- -9 -Z -1 --.1 -Set -a- -8- - - * V~ ---------- 9 f 9 E s 1 ------9 1
.........
-r --a -.-- 11 --8 S -sti-- - 2 E 9 9
j--j-Pp ~P-2,-Pp ssgs-s- ps-pp 5-ps-p ps-5-p ps-3-5. S-5-j-P 5-ppp s-5-5-s- pppp 5-ps-s- ppj-P To
ils§ 8.@H UH HER 1944 HIS M-"-s SHE Mv HIM -"999 Mr.
suoijonjisul pue swjoj 9 LL6t/sujnj9H lenp!AIPUI z9z
IF
R

Individual Returns/1977 * Forms and Instructions
CO ISH V MR ME AM MG GIM MN Mi 6999 V99i 9§99,91VI: ~M ~M
r- V. 9 E a., 9 9M HIP Z ~ E F Rpu F§ V.9 aM PH § .= 9911 Hal
§999 9 PH @ p ~K 9~ F Al 31; E r M IM HUE IM WO UAR pa§:: rJR42 sros
E l - i-
CO
'0
A- A- -n . -.- on P-
as SA V. SN t~; g Akfis
gpv -n A -. to to g is S 8 g IQ 2 2 RRAV NARR REAR GGIU S, H N a~RE
MR Mn H 2S i~ RH CiHE N RREA M5 i U 9291 - - RM EM H59 95 ki M;p
-_ _. _. -_ _. -_ -_ _. -_ -_ -_ _. _. -_
t
_.
k
_. -_ -_ _. -_ -_
wE 4243 JEFF Ings
-rz- - - - - - - - - - - - - - - - -
A Ra E a g R g6p~ ~Fzo . . . Ck . . C:L S §
~i ci,4 ~4
:= a 2 52,4
-
Z a
- - - - - - - - - 2-
:1 - - - - - -
14 1 14 1 14 , 1:11, 1111 11 gill II
- - - - - - - - - - -
- - - - - - - - - - E UU
1IFF 1111 HS! SIR
9 9 '4 Emig MR ggs§ Inv OW p r
f t2 a a R 9 gags gan MO VM2 00 99 H i S a I I R: 9 1 §999
0
69H 99§9 V&~ FEER FM ZHI Emig 9M ME 9161 HU
- - -
99H
- - - -
999V
- - - -
U~9~1
a C4 k: F F Z 9 ~ ME ME He P. 9 9919 - II Ran Rqu
V ~~ ng v
M~
to a P SIR
RM ~ q U11 RM
1 9 H99 6 9 9 R - MR
CL
RRg§
~:t ,
-- -
ZEE&
§ § 4~ 4
- ~nn
----
2: k S~ -4 112,
----
12H !HE I'll! 2
AI to to
----
-
gloss SxgS kkgq ARRR P
21 2121. 518 F
JIFF 1115, 13H
.12 d
0- :! o o o oooo oo.o ooo ..o . . .. . . .. . . . .
11IR 8.
Cr 1212 2 a .41,82 - ~i 1-i "_i AIM MR
---- ---- ---- ----
----
----
E L
I - 1, ooo oo. booo oo.o o.o o.. - . ~: N 2 - - -- - - 1. - 2- Pl - a-
- 9 E n n Riga
E
'a
M
a ooo
~Vol 1391 8- 13 - VA - - R- 4- T
-
S
-
is
--
-, 2
--
G: ~Fg!fl
--
~XRA ERR§ gv~~ FAR~-
RM IM3
74
2 t. - 2 &§ET a 2PGE E~~: N gARM ;:§11 ~!2~O 3~&e P2--§ V x g's it RIDZ
CIA R 9 Me P . R MA'AUZ i P.1~ HNN H91 161i § Hai I II R z 0 u
CO
I
to
nu n!n n.n -5 ~ a R I a I z ~610 gun ipu ~ F F R E, 9 563.1 Hal
5z" R 9 EM IFH 1114 RM R42 U I IM MU PH MR ani-IF
§11F RSIR uIR §EFF §1151 ut 8 st Rell MtH ME Ulm UFF 552m Jug IZIF
.ooo o... oo. ooo . . . ... .. .. oo.. ooo. ..o. ...p ooo o.. .
...o .. . o o.o. o..o ..?o oo. o.. oo.o oooo o- oooo ..o. o o'.
oo..
..o.o . . . . . o. oo.. ..oo . . . o ..6 . . . . . . . oo . . . . . . . . o . . . .
Ln
oooo oo- oooo oooo oooo oooo ocoo oo- oooo oooo oooo oooo ovoo oooo
~, o... ..g. ..o? . . . . .. o . . . .. .. . o
N
o
o'
...o oooc! o... oo...o.oo oo. o...........
olo, =Vm F(PI.2 2;:P% 28::14
'CM
..oo ooo ..oo Poo oo-- - - - - - -w - ~1 - - F FU2. Una RU9
A A T 2 86 ~'a 2.218 ~: INS TD;812 Z21.1 t2f4nE E 'r
§VNfl ~jg§ REA-1 §fej
StIRS 5tj§§
HE 3OF6 In JF~5 slaig!j §.P~j 1511,
=M;~ =F.. IM :111111H iS S I I 1 11 11111
51
rr 2 :1.4
155t S HIS Hal HS :, , r 19 !1 11!!
. 15H Hd 11A HfIrS, 1111
263

1977 Tax Table D-BEAD OF HOUSEHOLD (BOX 4) (contj...d)
If line 10. AM the total number of exemption' claimed
If line 20, And the total
Form 1040A
Form 1040A
number of exemptions claimed
on line 6 Is— on line 6 Is.-
Over I But not 1 1 2 1 3 1 4 1 5 1 .6 1 7 But -TT-2--F--14 3 S 1 6 1 7 18
r,
over .
Your tax Is--
I ovner -
Your tax Is--
'14,400 1
4 5W 2129 1 1.941 1 754 582 4 4 1,210 1.010 810 117,200 17,250 2,877 2.672 685 2469 2,267 2.079 1.1i6l 1.643 1,436
4,450
14,500
114'450
14,550
2 1 41 954
2: 54
11:766
, 1:593 11:426
1 1 11 02
1 1
821 17.250 11,300 2,801 2, 2,483 2,280 2,091 1,874 1,655 1,447
1. 966 1,779 1. 605 1.437
:
232 1:03 2 832 17.300 17,350 2,906 2.699 2.496 2,294 2,104 1.886 1,666 1 459
14.~50 K600 2.166 1.979 1,791 1,616 1,449 1,243 1,043 843 IT,350 17ACO 2,919 2.712 2,510 2,307 2.116 1,899 1,678 1:470
14 SM 14:650
14650 1
4:700
2,179 1 1,991
2. 2004
1.804
816
1,628 1.460
472
1,254
1.265
1.054
1,065
$54
865
11,400
17ASO
17.450
17,500
2,933 2.726 2,523
2,947 2.739 2,537
2,321
2,334
2,129
2,141
1.911
1.924
1.689 1,482
1,701 1,493
14,700, 14,750 2, 91 2:016 11:829
,'9 : 65 1 " :483 1,276 1,076 876 17,500 17,550 2,961 2,753 2,550 2,348 2.154 1.936 1,714 1,5M
14,750. .14,500 2.216 - 2.029 1,841 1,662 1.493 1,287 1,087 887 17,550 17,60151 2,975 2,766 2,564 2,361 2,166 1,949 1.726 1.516
14 1 Sao 14, 1 50 2.229 2.041 1,845A 1.674 1,5N 1,299 1,098 998 17,600 17,650 2,989 D03 27 2: 5 2375 217 961 1,739 1,528
4:850 4,900 a 2.241 2.054 1,866 1.685 1,514 1,310 1~109 9D9 17.660 17,700 3, 2.780
93 2 5 77 91 2, 388 2. 1 9 91
1 :9 74 1,751 1,539
900 14.950 2.254 2,066 1,879 1,697 1,525 1,322 1,120 920 17,700 17,750 3,017 2,807 2.6D4 2,402 2,204
14'
1,986 1,764- 1,551
14,;50 15,000 2,267 2,079 1.891 1,708 1.536 1.333 1,131 931 17.750 17,800 1.031 2,821 2,618 2,415 2,216 1.999 1,776 1,562
115,000 1
S.050
15, 1 050
5,100
2290 2.091
2:294 2.104
1,9D4
1,916
1,720 1.547
1,731 1.559
1,345 1,142
1,356 1,163
942
953
17,800
17.850
17,850
17.200
3.045 2,M 2.631
3.059 2.849 2,645
2,429 2.229 2.011
2.442 2,241 2,024
1,789 1.574
1.801 1,585
15,100 15.1 115,150 2.307 2,116 1,929 1,743 1,570 1,368 1,164 964 17,900 1 17.950 3,073 2.863 2.658 2.456 2,254 2.036 1.814 1.597
60 15,200 2.321 2,129 1.941 1,754 1,582 t379 1,175 975 17,950 18,000 3,087 2,877 2,672 2.469 2,267 2,049 1,826 1.6D8
1S.200 I
F6250
15.250 1
5,300
.2334 2,1il
2:348 2,154
1,954
1,966
1,766 1.593
1,779 1,605
1,391
1,402
1,1S6
1,197
M
997
10.000
18,050
18,050
18,100.
3,101
3,115
2,891 205 2,483 2,280 2,061
2,905 2,699 2.496 2,294 2,074
1,839
1,851
1,620
1,631
is,308
IVSO
15,350
15,400
2. 2,166
2:375 361 2.179
1,979
1.991
1,791
1.804
1,616 .1,414
1,628 1,425
1,208 1,008
1,219 1,019
10,100
18.150
18,150
16,200
3,129 2,919 2,712
3,143 2.933 2,726
2.510 2X7 2,086
2.523 2,321 2,099
.864 1,643
1,876 1,654
15, 1 ISA50 1 2.368 2.191 2.004 1,816 1.639 1.4~7 1.230 1.030 10.200 IU50 V57 2,947 2,739 2537 2,334 2,111 1.889 1,666
15,500 5.450 400 1 5,501) Z402 , 2204 2.016 1,829 1,651 1,448 1,241 1,041 18,260 18,300 3,171 2.961 2.753 2.550 2,348 2.124 1,901 1,679
15,550 15,600 5,550 22.
41 5 2:216 2,029 1,841 1,662 1.460 1,252 1.052 18,300 18,350 3.185 2,975 2,766 2,564 2,361 2,136 1,914 1,691
429 2.229 2,041 1,854 1,674 1.471 1.264 1.063 18.350 18,400 3,199 2,989 2,780 2,577 2,375 2,149 1,926 1,704
115,601) 15,650 2,"2 2.241 2.054 1,866 1.685 1.483 1.275 1,074 18.400 18,450 3,213 3,003 2.793 2.591 2.388 2.1 dl 1.$39 1,716
1 S.650 15,700 2.456 15,700
15,750
15,750
15,8010
2,254 2.D66 1.879 1,697 1.494
2,469 2,267 2,079 1,891 1,708 1,506
2.483 2,260 2,091 1,904 1,720 1,517
1.287
1,298
1.310
1,085
1,096
1,107
18,450
18,500
18.550
1111,500
18,650
18.600
3,227
3.241
3.255
3,017 2.807
3,031 2.821
3.045 2.835
204 2.402 2,174
2,616 2.415 2.186
2,631 2,429 2,199
1,951 72?
1,964 1 : 741
1 ~976 1,754
16,8111) 15,650 2,496 2.294 2,104 1,916 1,731 1,629 1,321 1,118 18.600 18.650 3,269 3.059 2.649 2.645 2,442 2.211 1,989 1,766
15,850 15.900 2.510 2,307 2,116 1,929 1,743 1.540 1,= 1,129 18.650 18,700 3,283 3.073 2,863 2,658 2.456 2,224 2,001 1.779
115.90101 15,950 2,523 2,321 2.129 1,941 1.754 ~1,552 1,344 1,140 18,700 18,750 3.297 3,087 2,877 2,672 2.469 2.237 2.014 1.791
1"50 16.11DO 2,537 2,334 2,141 1.961 1,766 1,563 1,356 1,151 18,750 118~00[1 3,311 3,101 Z891 2.685 2,4113 2.250 2,026 1,804
16,000 14050 2.550 2.348 2,164 1,966 1.779 1,575 1.367 1,162 10.801D 18,850 3.325 3.115 2,905 2.699 2.496 2,264 2.039 1.816
18.050 16.100 2,564 2.361 2,166 1,979 1.791 1,586 1,379 1,173 18,850. 18,900 3,339 3,129 2.919 2,712 2.510 2,277 2.051 1,829
16,100 16.150 2.577 2,375 2,179 1,991 1,80,1 1,598 1,390 1,184 18,900 18,950 3,363 3.143 2,933 2,726 2,523 2.291 2,064 1,841
16.150 16= 2,591 2.388 2.191 2.004 1,016 1,609 1,402 1,195 18,9SO 19,000 3,368 3:157 2,947 2.739 2,537 2,304 2,076 1,8U
16,2DO 16,250 2,604 2.402 2.2D4 2,016 11.829 1,621 1,413 1,200 119,01110 19,050 3.383 3,171 2.961 2,753 2,550 2,318 2.089 1,866
A8.250 116.301) Z618 2,415 2,216 2,029 1,841 1.632 1,425 1~217 19,060 19.100 3,399 3,185 2.976 2,766 2,564 2,331 2,101 1,879
16.300 16.39 2.631 2A29 2.229 2,041 1.854 1.644 1.436 1.229 12,100 19.160 3.414 3.199 2.989 2.760 2,577 2,345 2,114 1,891
14350 ISA00 2.645 2,442 2,241 2,054 1,866 1.655 1."B 1.240 10.150- IS.2110 3,430 3.213 3.003 2,793 2.591 2.358 2,126 1,904
ISAW ISA50 2.658 2.466 2.264 2.066 1.879 1,667 1.459 1,252 12.200 19,250 3,445 3,227 3.017 2.807 2.604 2,372 2,139 1.916
-ISASO 16.500 2,672 2,469 2.297 2.079 1,891 1.678 1.471 1,263 19.250 19,300 3.461 3,241 3.031 2.N1 2,618 2,385 2.151 1.929
18,5001 16,550 2,6115 2,483 2.280 2.091 1.904 1,690 1,482 1,275 19.300 19,350 3,476 3.255 3,045 2,835 2.631 2,399 2.164 1,941
16,550 16,600 2.699, 2.496 2.294 2,104 1,916 1,701 1,494 1,286 19.350 19,400 3.492 3.269 3,059 2:849. 2,645 2.41 Z 2,176 1,964
16,WD 16,650 2,iI2 2,510 2,307 2,116 1,929 1,713 1.505 1.298 19,400 19AW 3,507 3.283 3,073 2,863 2.658 2.426 2.189 1,966
16.650 18.700 Z726 2,523 Z321 2.129 1.041 1.724 1.617 1,309 '19,450 119,611111 3,523 3.297 3,087 2.8T7 2,672 2,439 2.202 1,979
16,70111 16,750 2,739 2,537 2,311 2,141 1,964 i,?W 1,528 1.321 19,5410 *10,50 3,&3S 3.311 3.101 2.891 2,685 2,453 2.215 1,991
16,750 118,81010 2,753 2,W 2,348 2.154 1,M 1.7,49 1,540 1,332 19,550 19,60111, 3.554 3,325 3,115 2,905 2.699 2,466 2.229 2.004
16.800 16,851) Z766 2,5" Z36i 2.166 1.979 1,761 1.551 1.344 19.60111 10.850 3.5651 3,339 3.129 2,919 2,712 2.480 2,242 2,016
16.850 111 2 ;~I, 21 2. Z179 1,991 1 I , I , I ,
1 9,700 3,5115 3.353 3.143 1619M
IS... a: 2 : 2,
$91 2. 2,191 2.004
:
1786 1,574 1,397 19.700 12.750 3,600 3,368
2,933
3,157 2,947
2.726
2,739
2,493 2,256 2,029
2,607 2.269 2,041
.10,950 1
2604 2. 2,204 2.018 799 1,586 1.378 19,750 Is= 3,610 3.383 3.171 2,961 2.753 2.520 2,283 2.054
Ilixill 11:= 0. : ~. O , 2~61. 2. 2.216 2,029 1,81t 1.597 1.390 19,800 Iles() ade.
s:.7 631 1n ' : 3: 1, 1 2.S75' 2,766 2.511' 2.296 2,066
ITAN Il.101 , So 2 2 2= 2,041 1.624 1,W9 1.401 19,850
99 2,982 2,780 2,547 2,310 2,079
17.100 11 2..4 Z
2.241 2,054 I.SW 1,6M 1.413 10,900 119.11SO 3.69 3.430 3.213 3.OD3 2.793 2.561 2.323 2,091
17.150 11 2.254 2,066 1,649 1,632 1.424 . 19.950 20.000 3.678 3.445 3,227 13,017 2.807 2.574 2.337' 2.104,
C4nbmjod rod cohmm
pap
To Call IRS Toll Free For Answers to Your Federal Tax
Ouestions, Use Only the Number Listed Below for'Your Area
Caution: "Tbll-free" is a telephone call for which you pay only local charges and no long-distance charge is Involved. Theirefore,
please use a local city number only if it is not a long-distance call for you. Otherwise,'use the general toll-free numberprovided.
To help us provide courteous responses and accurate Information, IRS occasionally monitors telephone calls. No record is maintained of the tax.
payees name, address or sociall security number.
If you find it necessary to write rather than call u; please address your letter to your IRS District Director for-a prompt reply.
. Tax Advice to Taxpayers.-We are happy to answer questions to help you prepare your return. But you should know that
you are,responsible for the accuracy of your return and fcir~ the payment,of the correct tax. If we do make an error, you are still
respons ble for the payment of the correct tax, and we are generally required by law to charge Interest.
Telephone Assistance Services for
Deaf/Hearing Impaired Taxpayers
Who have Access to TV-phone/
teletypewriter Equipment.
Hours of Operation
8:30 A.M. to 6:45 P. M. EST
Indiana residents, 800-382-4059
Elsewhere in contiguous U.S., 800-
~28-4732 . I .
ALABAMA
Birmingham, 252-1155
Decatur, 355-1855
Huntsville, 539-2751
Mobile, 433-5532
Montgomery, 264-8441'
Muscle Shoals Area, 767-0301
Tuscaloosa, 758-4434 .
Elsewhere in Alabama, 800-292-6300
.ALASKA
Anchorage, 276-1040
Elsewhere in Alaska, call operator and
ask for Zenith 3700
ARIZONA
Phoenix, 257-1233
Tucson, 882-4181
Elsewhere In Arizona, 80u-352-6911
ARKANSAS
Little Rock, 376-4401
.Elsewhere In Arkansas, 800-482-9350
CAUFORNIA '
Please call the telephone numbe . rshown
in the white pages of your local tale.
phone directory under U.S Govern' -
ment, Internal Reveribe Se~lce, Fad.
eral Tax Assistance
.
COLORADO
Colorado Springs, 634,6684
Denver, 825-7041
Elsewhere in Colorado, 800-332-2060
CONNECTICUT
Bridgeport, 576-14S3
Hartford, 249-8251
~Stamfeird, 348-6Z35
Elsewhere In Connecticut, 1-800-842-
1120 -
DELAWARE
Wilmington, 571-6400
Elsewhere in Delaware, 800-:i92-.9575
. DISTRICT OF COLUMBIA
Call 488-3100.
26
. FLORIDA -
Fort Lauderdale, 491-3311
Jacksonville, 354-1760
Miami, 358-5072
Orlando, 422-2550
Pensacola, St. 434-5215
Petersburg, 823-7459
Tamps, 223-9741
West Palm Beach, 655,7250
Elsewhere in Florida, 1-800-342-8300
.
GEORGIA
Atlanta, 522-0050
Augusta, 724-994C
Columbus, 327-7491
Macon, 746-4993
Savannah, 355-1045
Elsewhere In Georgia, 1-800-222-1040
HAWAII
Hawaii, 935-4895
Oahu, 5464660
Kauai, 245-2731
Lanai call operator ifind ask for Enter-.
priie 8036
Maui, 244-7654
Molokai, call operator and ask for Enterprise
8034 -
. .
IDAHO
Boise, 336-1040 *
Elikewhere in Idaho, 800-632-5990
ILLINOIS
Chicago, 435-1040 ~
Elsewhere' in area code 312 (except city
of Chicago) and residerifs In Joliet Region
Telephone Directory, 800-972-
5400 -
Springfield, 789-4220
Elsewhere in all other locations In Illinois,
800-252-2921
.
INDIANA
Evansville, ' 424-Ml
Fort Wayne, 423-2331
Gary, 938-0560
Hammond, 938-0560
Indianapolis, 269-5477
Muncie, 288-4504 -
South Send, 232-3981
Terre Haute, 232-9421
Elsewhere in Indiana, 800-382-9740
IOWA' -
Cedar Rapids, 366-8771.
Des Moines, 284-4850
Elswithere In. Iowa, 400-362-2600
KANSAS
Kansas City, 722-2910
Topeka, 357-5311
Wichita, 263-2161
Elsewhere In Kansas, 800-362-2190
KENTUCKY
Lexington, 255-2333
Louisville, 584--1361
Northern Kentucky (Cincinnati local dialing
area), 621-6281 -
Elsewhere in Kentucky. 800-292-6570
LOUISIANA
Baton Rouge, 387-2206
New Orleans, 581-2440
Shreveport, 424-6301
Elsewhere In Louisiana, 800-362-6900
MAINE
Augusta, 622-7101
Portiand,.7-75-7401*
Elsewhere In Maine, 1-800-452-8750
MARYLAND
Baltimore, 962-2590
Prince GeorgesCounty, 488-3100
Montgomery County, 488-3100
Elsewhere in Maryland, 800-492-0460
MASSACHUSETTS
Boston, 523-1040
Brockton, 580-1770
Fitchburg, 345-1031
Lawrence, 682-4344
Lowell, 957-4470
New Bedford, 9964111
Springfield, 785-1201
Worcester, 757-2712
Elsewhere' In Massachusetts, 1-800-
392-6288 MICHIGAN
Ann Arbor, 769-9850
Bay City, 771-2153
Detroit, 237-0800
Flint, 767-MO -
Jackson, 750-4~77
Kalamazoo; 385-4410
Grand Rapids, 77418300
Lansing, 394-1550
Mount Clernemi,469-42oO
Muskegon, 726-4971
Pontiac, 858-2530
Saginaw, 771-2153-
Elsewhere In area code 313, call 800-
462-0830
Elsaawhere In area codes 517, 616, and
906, call 800-482-0670
MINNESOTA,
Minneapolis, 291-1422
SL Paul, 291-1422
Elsovidneris In Minneso.te..800-652-MR.

MISSISSIPPI
Biloxi, 868--2122
Gulfport, 868-2122
Jackson, 948-4500
Elsewhere in Mississippi, 1-800-222-
8070
MISSOURI
Columbia, 443-2491
Jefferson City, 635-9141
Joplin, 781-8500
Kansas City, 474-0350
St. Joseph, 364-3111
St. Louis, 342-1040
Springfield, 887-5000
Elsewhere in Missouri, 800-392-4200
MOPTiANA
Helena, 443-2320
*Elsewhere In Montana, 1-800-332-
2275
. NEBRASKA
Uncoln, 475-3611
Omaha, 422-1500
Elsewhere in Nebraska,' 800-"2-9960
. NEVADA-
Lai Vegas, 385-6291
Reno,784-5521
Elsewhere In Nevada, 800-492-6552
NEW HAMPSHIRE
Manchester. 668-2100
Portsmouth, 436-8810
Elsewhere in New Hampshire, 1-800-
582-7200
NEW JERSEY
Camden, 966-7333
Hackensack, 487--8981
Jersey City, 622-0600
Newark, 622-0600
Paterson, 279-9400
Trenton, 394-7113
Elsewhere in New Jersey, 800-242-
6750'
NEW MEXICO
Albuquerque, 243-8641
Elsewhere in New Mexico, SOD-527-
3880
NEW YORK
Albony District (Eastern Upstate New
York)
Albany, 449-3120
Poughkeepsie, 452-7800
Elsewhere in Eastern Upstate New
York, 1-800-342-3700
Brooklyn District
Brooklyn, 596-3770
Nassau, 294-3600
Queens, 596-3770
Suffolk, 724-5000
Buffalo District (Western Upstate New
York)
Binghamton, 772-1540
Buffalo, 855-3955
Niagara Falls, 285-9361
Rochester, 263-6770
Syracuse, 425-8111
Utica, 797-2550
Elsewhere in Western Upstate New
York, 1-80Q-462-1560
NEW YORK--Continued
Manhattan -District
Bronx, 732-0100
Manhattan, 732-0100
Rockland Courrt~y, 352--8900
Staten Island, 732-0100
Westchester County:
North (Peekskill Area), 739-9191
South.(Mt. Vernon, New Rochelle,
White Plains--Yonkers Area),
212-732-0100
NORTH CAROL114A
Charlotte, 372-7760
Greensboro, 274-3711
Raleigh. 828-6278
Elsowhere In North Carolina, 800-822-
8800
NORTH DAKOTA
Fargo, 293-0650 '
Elsewhere in North Dakota, 800-342-
4710-
OHIO
Akron, 253-1141
Canton, 455-6781
Ci C;ncinnati,
621,6281
eveland, 522-3000
Columbus, 228-0520
Dayton, 228-0557
Toledo, 255-3730
Youngstown, 746-1811
Elsewhere in Northern Ohio, 800-362-
9050
Elsewhere in Southern Ohio, 800-582-
1700
OKLAHOMA
Oklahoma City, 272-9531
Tulsa, 583-5121
Elsewhere in Oklahoma. 800-962-3456
OREGON
Eugene, 485-82115
Medford, 779-3375
Portland, 221-3960
Salem, 581-8720
Elsewhere in Oregon, 800-452-1980'
PENNSYLVANIA
Allentown, 437-6966
Bethlehem, 437-6966
Erie 453-5671
Harrisburg, 783-8700
Philadelphia, 574-9900
Pittsburgh, 281-0112
Elsewhere In area codes 215 and 717,
ca 11800-462-4000
Elsewhere in area codes 412 and 814,
call 800-242-0250
RHODE ISLAND
Block Island, call operator and' ask for
Enterprise 1040
Burrillville---Glocester, 568-3100
Hope Vallay_South SOUTH DAKOTA
Aberdeen, 225-9112
Rapid City, 348-9400
Sioux Falls, 334-66bO
Elsewhere in South Dakota, 800-592-
1870
TENNESSEE
Chattanooga, 892-3010
Johnson City, 929-0181
'Knoxville, 637-0190
Memphis, 522-1250
Nashville, 259-4601
Elsewhere in Tennessee, 800-342--8420
TEXAS
Amarillo, 376-2184
Austin, 472-1974
Beaumont, 835-5076
Corpus Christi, 888-9431
Dallas, 742-2440
El Paso. 532-6116
Ft. Worth. 335-1370
Houston, 965-0440
Lubbock, 747-4366
San Antonio, 229-1700
Waco,752-6535
Wichita Falls, 723-6702
Elsewhere in Texas, 800-492-4830
UTAH
Salt Lake City, 524-4060
Elsewhere in Utah, 1-800-662-5370
VERMONT
Burlington, 658-1870
Elsewhere in Vermont, 1-800-642-
3110
VIRGINIA
Baileys Crossroads (Northern Virginia),
557-9230
Chesapeake, 461-3770
Norfolk, 461-3770
Portsmouth, 461-3770
Richmond, 649-2361
Virginia Beach, 461-3770
Elsewhere in Virginia, 8OD-552-9500
County, 539-2361
Newport, 847-2463
Providence, 274-1040
Tiverton-Little Compton, 624-6647
Woonsocket, 722-9245
SOUTH CAROLINA
Charleston, 722-1601
Columbia, 799-1040
Greenville, 242-5434
Elsewhere in South Carolina, 1-800-
922-8810
WASHINGTON
Everett, 259-0861
Seattle, 442-1040
Spokane, 456-8350
Tacoma, 383-2021
Vancouver, 695-9252
Yakima, 248-6891
Elsewhere in Washington, 800-732-
1040
WEST VIRGINIA
Charleston, 345-2210
Huntington, 523-0213
Parkersburg, 485-1601
Wheeling, 845-8290
Elsewhere in West Virginia, 800-642-
1931
WISCONSIN
Milwaukee, Elsewhere 271-3780
in Wisconsin, 800-452-9100
WYOMING
Cheyenne, 635-4124
Elsewhere in Wyoming, 800-525-6060
page 27
A
Addresses of Internal Reveliue Service
Centers . . . . . . ... 3
Alien, Dual-Status . . . . . ~1, 5
Alimony Paid . .. . . . ... . . 4
B
Balance Due-How to ' Pay .. . . . . 13
Blindness ... . . . . . . . .. 6
C
Cdfnmunity Property . . . . . . . 6
Completing.Your Return . . . . . . 13
D
Death of Spouse . . . . . . . . 7
Death of Taxpayer . . ... . . . . . 8
Declaration of Estimated Tax . . . . 9
Dependent~-
Birth or Death of Dependent . 7
Children . . . . . ... . . . 7
.Other . ... . . . . . . . 7
Supported by Two or More Taxpayers . 8
Who Have Unearned Income . . . . 4
Dividends and Exclusion . . . . . . 11
Dual-Status Aliens . . .. . . . . . 5
E
Earned Income Credit . . . . . 2 and 12
Special Instructions . . . . . . 2
Excess FICA and RRTA Tax Withheld . . 12
Exemptions . . . . . . . . 6, 7, and 8
F
Figuring Your Tax . . . . . . . . 12
Filing Requirements-
When to File . . . . ... . . . 3
Where to File . . . . . . . . 3
Who Must File . . . . . . . 3
Filing Status-Which Box to Check . . 5 * and 6
Foreign Bank Account . . . . . . 5
Foreign Trust . ... . . . . . 5
Form W-2 . . . . . . . . 4 and * 12
G
Guide to Filling Out Form 1040A . . . 11-13
I
Income Tax Withheld (Federao 3 and 12
Interest Income . . . . . . . . 11
M
Married Persons-
Filing Jointly
Filing Separately . . . . . . .
5
6
Ift 9%
Page A0
Index to Instructions
N
Name and Address . . . . . . .
Nonresident Alien . . : . . 3 and 5
P
Penalty-
Estimated fax
9
Failure to Pay . . . . ... . . 8
Late Filing . . . . . . . . . 8
Political Campaigns-
Tax Credit . . . . . . . . . 12
$1 Check-off . . . . . . . . . 11
Preparer's Identifying Number . . . . 13
Privacy Act Notice . . . . . . . . 9
Q
Qualifying Widows and Widowers . . . 4
R
Recordkeeping . . . .. . . . . 8
Refund of Tax . . . . . . . . . 13
Rounding Off to Whole Dollars . . . . 8
S
Salaries . ... . . . . . . 4 and I I
Single Person . . . . . . . . . 5
Social Security Number . . . . . . 11
Student Dependency and Exemption . . 7
T
Tax Computation by IRS . . . . . . 12
Tax Advice to Taxpayer * s . . . . . . 26
Tax Tables . . . . . . . . .. 14-25
Telephone-
Assistance Services for Deaf/Hearing
Impaired Taxpayers . . . . . . 26
Numbers for Federal Tax Information 26-27
Tips . . . . . . . . . . 4 and 11
U
Unmarried Head of Household . . . . 6
Using Form 1040 Instead of-Form 1040A. 4
W
Wages . . . . . . . . . 4 and 11
When to File . . . . . . . . . 3
Where to File .. . . .
3
Who MUST Use Form 1040 . . 4 * and 5
Who May Use Form 1040A 4
Who Must File . . . . . . . . . 3
Z
Zero Bracket Amount . . . . . . . 13

Schedules A&B-itemized Deductions AND
(1- 200) Interest and Dividend Income
oaran""'"=1 Is, Attach to Form 10110. Ill- See Instructions for ulleden A am B (Farm 104M.
Name(s) in shown on Form 1040
:,Medical_ and Dental. Expenses (not compensated by Insurance
or otherwise) (See page i4 of Instructions.)
I Onehalf (but not mom than $150) of Insurance
premiums for medical cam. (Be
sum to include In line 10 below) . . .
2 Medicine and drugs ... . . . . .
3 Enter 1% of line 31, Form 1040 . . .
4 Subtract linA 3 from line 2. Enter difference
(if Jim than zero, enter zero) . .
5 Enter balance of Insurance premiums for
medical care not entered on line I . .
Enter other medical and dental expenses:
1!a
Doctors. dentists. numes, etc.
b Hospitals .
c Other (iternize--minclude . . . * hearing , * aids,
denture-, eyeglasses, transportation,
etc.) 0 .................................
.................... I ..........
--------------------- ..............
.......... -------------- ------------------
------------------- : -------------- ---------------
......................... .................. ..... ---
..................... ............... I --------- ------------
7 Total (add lines 4 through 6c)
8 Enter 3% of line 31, Form 1040
9 Subtract line 8 from line 7 (if less than
zero, enter zero) .
10 Total (add lines I ahd~ 9)*. C~.; hans ens~
on line 33
. I.
RM(i.; -1.g.l~ * * of ' in.;ructlons.)
11 State and local Income . . . . . .
12 Real estate . ... . . . . . . .
13 State and local gasoline (am gas tax behiss)
14 General sales (see sales tax tables) . .
15 Personal property . . . . . . . .
16 Other (iternixe) ...............
............. ................
------------ ----------------------
- 17 Total (add lines 11 through 16) Enter
d! on line L4
: . Is.
In Expense (See. page . . 16. of Instructions.
18 Home mortgage . . . . . . . .
19 Other (itemize) Is........ .......................
...................... ------
------------------------- ................ ---------------
..... - --------------------------- --
............................ ........... .............-
------------------------------------------------------
.......... . I ----------------------- I
20 Total (add lines 18 and 19). Enter here
and on line 35 . . . . . . . . * I
Schedule A Itemized Deductions (Schedule B is on back)
I , i
'007T.
(See page 16 of Instructions ter examples.)
21 a Cash contributions for which you have
receipts, cancelled checks or other
written evidence . . . . . . .
b Other cash contributions. List donees
and amounts. js~ ....................................
............ ------- "I I....I
...- ----------------- I ---------------
.............. .................. -- ----------
....................... -
.......... .................. ------------- I ........ --------
-------------- -----------------------------------
22 Other than cash (see page 16 of instruc.
tions for required statement) . . . .
23 Carryover from prior years . . . . .
24 Total contributions (add lines 21a through
23). Enter hem and on line 36 . . Is.
(See page 16 01Instructions.) 25 Loss before insurance reimbursement . ,
26 Insurance reimbursement . . . . .
27 Subtract line 26 from line 25. Enter dif.
ference (if less than zero, enter zero) .
28 Enter $100 or amount on line 27. which.
ever Is smaller . . . . . . . .
29 Casualty or theft loss (subtract line 28
from line 27). Enter hem and an line 37 . 10.
(See Page 16 of Instructions.
30 Union dues . . . . . . . . . .
..........................
31 - - ------------------ Other (Itemize, ------------
------------------------------- -
Total (add lines 30 and 31 ter
and an line 38 . . . .
* ----- - -------------- --- --------------- ---- -------------- ------- ----
* ----------------------- *---------------------
IIEMEMZ~~~
(See page 17 of Instructions.)
33 Total medical and dental-line 10 . .
34 Total taxes-line 17 . . . . . . .
35 Total interest-line 20 . . . . . .
36 Total contributions-fine 24 . . . .
37 Casualty or theft loss(es)-line 29 . .
38 Total miscellaneous-4ine 32 . . . .
39 Total deductions (add lines 33 through 38). Is.
40 If you checked Form 1040, box:
2 or 5 , enter $3,200
1 or 4, enter $2,200
3, enter $1.600 . . . . . . . .
41 Excess itemized deductions (subtract line
40 from line 39). Enter here and on ~~G
1040, fine 33. (if line 40 is more than line
39 on see page"Who I I ofMUST the I Itemize Deductions"
nstructions.) . . lls~
0
Schad,las A&S (Frm 1040) 2977 Schedule B-4nterest and Dividend Income page 2
N...(s) as shown on Form 1040 (Do not enter name and social security number it shown an other side) y.. siscial security number
ll~[Jiiii Interest Income K70VIIIIIII Dividend Income .
I If you received more than $400 in interest, Complete Part 1 3 If 11,riscalved
more then $400
Interest includes earnings from savings in gross dividends (including
and loan association.: c.g. gain distributions) and other distributions on stock
mu ual savings banks, cooperative banks, and credit unions complete Part
t
it (see Note below and
as well as interest on bank deposits, bonds, tax page 17 of instructions):
refunds, etc.
Interest also (List payers; and am unts-write (H). (W). (J), for stock
includes original issue discount on bonds and held
by husband, wife, or'lointly.)
other evidences of indebtedness (see page 17 of Instructions).
(List payers and amounts.)
4 Total of line 3 . . . . . . . . .
5 Capital gain distributions
(see page 18 of
Instructions. Enter
hemi and on Schedule
D, I ne 7). See Note
below . . . . .
6 Nontaxable distributions
(see page 18 of
instructions) . . .
7 Total (add lines 5 and 6) . . . . . .
8 Dividends before exclusion (subtract line
2 Tote interest 1 income. Enter . hera
and
ins 4). i Enter here and on Form
on Form I 040, line 9 . . . . . l040MI" he,
ire l0a . . . .
Note: it you received capital gain distribution- and do not need Schedule D to report any other gains or
the alternative tax, do not file that schedule. Instead, enter 50 percent of capital gain distributions lossesonorForm to comp.a J040,
line 15.
ff~ Foreign Accounts and Foreign Trusts
If you are required to list interest in Part I or dividends in Part It, OR if you had a foreign account, or were a grantor of,
or a IS of In."ucti.r..)
transferor to a fiore~ilrr trust, you must answer both questions in Part Ill. (See go
I Did you, at any time during the taxable year, have any interest in or signature or other authority over a bank,
securities, or other financial account in a foreign country (except in a U.S. military banking facility operated by a
U.S. financial institution)? . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Yes NO
If "Yes," see page 3 of instructions.
2 Were you the grantor of, or transferor to, a foreign trust during any taxable year, which foreign trust was in
being during the current taxable year, whether or not you have any beneficial interest in such trust? . . . E] Yes No.
it "Yes, " you may be required to file Forms 3520, 3520-A, or 926.
I
Ch
CL
COO
:1
co 4
-n
!R
3
(n
W
CL
2
a
0
M
(t)

SCHEDULE D Capital Gains and Losses (Examples at property to be m=(ontl.h. tAr ls
(Form 1040) gel It and losses on stocks, bonds, and similar Investments, and
D..d..t ,., I a.I- =ule.ns'personal assets such as a home or jewelry.)
11- S.M. I- Attach to Fomn 1040. ls~ Sao Instructions for Schedule D (Famn 2040). 'U 0@77
Name(s) as shown on Form 1040 sochil sacunty number
Short-term Capital Gains and Losses-ASsets Held Not More Than 9 Months
A. K Od d oreorny and dirstr[POM
IN iuiu~ d -'Z" 0,,.)
b. 0..
qu[,W
M:.. d.l. In.)
td
(Me.. daY, P.)
d. G- t. d
CW . h. W.1s,
in wl.tw I
ni.l. n Til
2
3
4S
Enter your share at net short-temn gain or (toss) from partnerships and fiduciaries . . . . .
Enter net gain of (loss), combine lines 1 and 2 . . . . . . .
"at
=,.e.r attributable . to years beginning after 1969 . . (see Instruction 1)
Shonten" short-term capital .Inloss or .1in lines 3 and 4..................
Long-term Capital Gains and Losses-Assets Held More Than 9 Months
2It
6
7 Capital gain distributions . . . . . . . . . . . . . . . . .
7
8 Enter gain, if applicable, from Form 4797. line 4(a)(1) (see Instruction A) . . . . . . . 8
9 Enter your share of net long-tam gain or (loss) from partnerships and fiduciaries . . . . . 9
10 11 Enter your share of net long-term gain from small business corporations (Subchapter S) . . . 10
Not gain or (loss), combine lines 6 through 10 . . . . . . . . . . . . . . . . 11
12 Long.tem capital loss carryover attributable to years beginning after 1969 (see Instruction 1)
13 1[~ Net long-term gain or (loss), combine lines I I and 1 2 . . . . .. . . . .
Summary of Parts I and 11 (it Have Capital Loss Carryovers From Years
Beginning Before 1970, Do Not YouComplete This Part. See Form 4798 Instead.)
.
.
2
13
14
15
Combine lines 5 and 13, and enter the net gain or (loss) hem . . . . . . . . . . . 14
If line 14 shows a gaina
aEnter 50% of line 13 or 50% of line 14, whichever is smaller (see Part IV for computation of
Itemative tax). Enter zero if there is a loss at no entry on line 13 . . . . . . . . . .
Note: ~
Ise
I f th amount you enter on line 15a is other than zero, you may be liable for minimum tax.
Se Form 4625 and instructions.
b Subtract 1 16
ine 15a from line 14. Enter here and on Form 1040, line 14 . . . . . . . . . 5b
aIt line 14 shows a loss-
Enter one of the following amounts:
(i) f If, lin: 5 1 zem or a net gain, enter 50% of line 14;
ii) in 131s zero or a net gain, enter line 14; or,
Vii) If line 5 and line 13 are net losses, enter amount on line 5 added to 50% of amount on
line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Is Enter here and enter as a (loss) on Form 1040, line 14, the smallest of:
0) The amount on line 16a;
(11) $2,000 ($1.000 if married and filing a separate return); or,
fill) Taxable income. as adjusted (see Instruction J) . . . .
. . .. 6b
Note: if the amount on line 16a is larger than the loss shown on line . 16b, complete . Part V to determ ine Post-1969 Capital
Loss Carryovers from 1977 to 1978.
If
r.
S,hi,dW, 0 (F- 1040) 1977 P.s. 2
Computation of Alternative Tax (See Instruction S to See if the Alternative Tax Will Benefit You)
17 Enter amount from Schedule TC (Form 1040), Part 1, line 3 . . . . . . . . . . . . . 17
IG Pitter amount fmm line 15a (or Form 4798, Part 1, line 8(a)) . . . . . . . . . . . . 18
19 SUDtract line 18 from line 17 (if line 18 exceeds line 17, do not complete the rest of this part. The
Alternative Tax will not benefit you) . . . . . . . . . . . . . . . . . . . . 29
Note: If line IS does not exceed $25,000 ($IZ500 it married filing separately), skip lines 20
througn 23 and enter zero on tine 24.
20 Enter $25,000 ($12.500 it married filing separately) . . . . . . . . . . . . . . . 20
21 Add 11... 19 and 20 . . . . . . . . . . . . . . . . . . . . I . . . . . 21
22 Tax on amount on line 17 (use Tax Rate Schedule in instructions) .
23 Tax on amou; t on line 21 (use Tax Rate Schedule in instructions) . 23 ~
24 Subtract line 23 from line 22 . . . . . . . . . . . . . . . . . . . . . . 24
25 Tax on amount an line 19 (use Tax Rate Schedule in instructions) . .. . . . . . . . . . 25
26 Enter 50 % of line 18 but not more than $12,500 ($6.250 if married filing separately) . .
27 Alternative Tay-add lines 24, 25. and 26. If smaller than the tax figured on the amount . . on.
Schedule TC iForm 1040), Part 1, line 3. enter this alternative tax on Schedule TC (Form 1040),
Part 1, line 4. Also check the Schedule D box on Schedule TC (Form 1040), Part 1. line 4 . . . . 27
Computation of Post-1969 Capital Loss Carryoveis from 1977 to 1978
NOZZ (Complete this part it the amount online 16a, is larger than the loss shown online 16b.)
22
Section A.-Short-term Capital Loss Carryover
28 Enter loss shown on line 5; if none, enter zero and ignore lines 29 through 33-then go to line 34 . 28
29 Enter gain shown on line 13. If that line is blank or shows a loss, enter zero . . . . . . . . 29
30 Reduce any loss an line 28 to the extent of any gain on line 29 . . . . . . . . . . . . 30
31 Enter amount shown on line 16b . . . . . . . . . . . . . . . . . . . . . 31
32 Enter smaller of line 30 or 31 . . . . . . . . . . . . . . . . . . . . . . 32
33 Excess of amount on line 30 over amount on line 32 . . . . . . . . . . . . . . 33
Note: The amount on line 33 is the portion of your short-term
years beginning after 1969.
capital loss carryover from 1977 to 1978 that is attributable to
Section S.-Long-term Capital Loss Carryover
34 Line 31 less line 32 (Note: It you skipped lines 29 through 33, enter amount from line 16b) . . . 34
35 Enter loss from line 13; if none, enter zero and Ignore lines 36 through 39 . . . . . . . . 35
36 Enter gain shown on line 5. It that line Is blank or shows a loss, enter a zero . . . . . . . . 36
37 Reduce any loss on line 35 to the extent of any gain on line 36 . . . . . . . . . . . . _37
38 Multiply amount on line 34 by 2 . . . . . . . . . . . . . . . . . . . . . 38
39 Excess of amount on line 37 over amount on line 38 . . . . . . . . . . . . . . . 39
Note: The amount on line 39 is the portion of your long-term capital loss carryover from 2977 to
1978 that is attributable to
years beginning after 1969.
26

SCHEDULE E
(Form 1040)
lisgammid .1 the Imsu.
un.-IR-.. S.M.
(Fla. pemutfc~ Supplemental Income Schedule
and annuities, rents and miraftles, plarnstsbips, gaudiest and trals, W4
1. Att.1b to to,. 1040. is. Sao Instruction for Schedule E(I= 10110).
Name(s) as shown on Form 1040
Your -?W "T"', Member
Pension and Annuity Income. if fully taxable, do not complete this part. Eder amount on Form 1040, line 17.
For one pension or annuity not fully taxable, complete this part. If you have more than one pension or annuity that is
not fully taxable. attach a separate sheet listing each one with the appropriate data and enter combined total of taxable
portions on line 5 .
I Name payer.... .~ ......................_ ........................ .............................
2 Did your of employer contribute part of the cost? . of . . . . . . . . . . . .
.............. . ........................... ...........
. . . . . . . Yes 0 No
It "Yes" Is your contribution recoverable within 3 years the annuity starling date? . . . . . . . . . . . . . y 0 No
If "Year," show: Your contribution $ ......................... Contribution recovered in prior
3 Amount received this year . . . . . . . . . . . . . . . I"Ho" . * . * . : ~ + - -------------
4Is
;.It KcIudable
(s. this year
4
an btract-line 4 from line 3) . . . . . . . . . . . . . . . . . . . . 1 5
JK~ Rent and Royalty Income. it you need more space, use Form 4931.
Have you claimed expenses connected with your vacation home rented to others? E] Yes 0 NO
as
(.41(lod A 17 TI.X .
It) TftI anew.1 (c) Total .-d
nhrdsr~ .1 sets of heelve,
.................. ..................I............ . ............. __..... ....................... ..... ................. ......................
...................................... -1 -- . .................... .. ........... ........... .. ..................... .......... .......... .
................ ................... ............ . I ........... ......... ...... -1.......... ... ....................... ....... .............
..................... I .............................
........ .......... ....................... ....................... .......................
6 Totals . . . . . . . . . . .
7 Net Income or (loss) from rents and royalties (column (b) Plus WhITIM (C) less MIUMM (d) . and . (0)) . 7
8 Net rental income or (loss) (from Form 41131) . . . . . . . .
, I - ----- ------_-----
9 Net farm rental profit or
('oss) (f--
1 1 --- -- ------------
Form . . . .
4
10 Total rent and royalty income (add Ii 5) . . . . . . .
9
.. " ,
To 9) . . . .. . . . . . . . 1 10
Income or Losses from Partnerships, Estates or Trusts, Small Business Corporations.
Entes Lines, in eal,7A Thin, 1U, S. P"nalship.
Is I.-
E for
us Extel". ...b. (0) You, he. of
- 1,
net.
(a) forest
I.) Ides b. " ,
.",=i is-
seonly r dit" toLl . ner ost, 'Pel
( o) Is- or P oss)
d
....................... ...........
.........- ....................... ....................... .......... ...
................ ..................
.......
....... .................._
--------
... ... ................... ........................ ...............
................
............. ....... ................ ...... ...................... ..................... . .......................
I I Tota is . . . . . . . . . . . . . . . . . . . . . .
12 income or (loss). Total of column (a) less total of column (f) . . .. . . . . . . . . . . . 12
23 TOTAL (add Hnes S. 10. an 12). Enter here and on Form 1040, line 18
EKplanati,in of Column (e), Part 11 Iran
. . .
A-11
. . . . . . 10-
11,
23
A-14
Item
A-at
.................... ......
;
....... ................ ............ ...........
..................... _ w .......... ......... ....... ....... ......................
..
............ ........................................ .... .............
.............. . ....... ------------.................. ............... .
..................................... I .. .................
-- ........................ .. .. .............. ........................................ .................
............. .................
----------------_ ..... .. ................. ........................................ . .............
.......... --- -----------------
......................--........... ................. -- ................................... .................
Schedule for Depreciallk
(A) nesailptim of priority
---------
(b)
q.1mid
. I I.,
m. 1-lZ b
I more space use Form 4562.
I (') IT:02. 1or .
in ul. re has
2 Total additional first-year depreciation (do not Include In Items below) . ............
...................... ........................... ------- ---------- ---------- ................ ... ......... .. .. ............
................... .............................. . --------------- ------------------- --------------------- ----------------_ ----------- ----
...................... ........................ ......... .. .................. ..................... ................. ... ............ ..... .. ............
2 Totals . . . . . . . . . . . . ... . . . . . . . ..
us --mot-Cit;
SCHEDULE- SE
i
Form 1040) Co m p uta
t io n of c Sec rity Self-Employment Tax oleins"m of the Tt..... lo E.~b ,elt . - p$OM pom n !vxt fl1. a! SChedurs
SE, P. Attach to For. 1040. In0
.77
H.-U. S..". 0. Sea lmouction. to, Schedule SE (F0mm 2040).
If you had wages. including tips, of $16,500 or more that where subject to social security or railroad retirement taxes. do not fill In
this schedule (unless you are eligible for the Earned Income Credit). See Instructions.
If you had more than one business, combine profits and losses from all your businesses and famrs on this Schedule SE.
Important.-The self-employment income reported below will be credited to your social security record and used In figuring social security benefits.
NAME OF SELF-EMPLOYED MRSON (AS SHOWN ON SOCIAL SECURITY COD) ty mumbirr of
I-- sw-em plored l person las,
you have only farm Income complete Parts I and Ill. 0 If you have only nonfarm Income complete Parts It and 111.
: 4P
if; , you have both farm and nonfarm income complete Parts 1, 11. and Ill.
J0Ml][]llll[ Computation of Net Earnings from FARM Self-Employment
You f may elect to compute your net farm earnings using the OPTIONAL METHOD, line 3, Instead ofIt usln! $ .0. the= , MI
etho -d,
17ne
2 1i ur gross profits are: (1) $2,400 or less, or (2) more than $2,400 and net profits are less the
ines I and
2 'must yo be completed even if you elect to use the FARM OPTIONAL METHOD.
REGULAR METHOD a Schedule F, line 54 . (cash . method), . or . line 72 (accrual method) 10
I Net profit or (loss) from: b Farm Partnerships . . .
. . . . . . . .
2 Net earnings from . .
farm self- ~ mployment (add lines is and b) . . . . . . . . . . .
FA M OPTIONAL METHOD
3RI! grms profits
a Not more than $2,400, enter two-thirds of th:
from farming ' are: b More then $2,400 and the net farm profit Is less the u= Pribet s,
garil- f,.,n f.r.i.s ... the tot.; a.... Profile from Schedule F, line 28 (cash.Tt
moth ), P us the di,tl)b,tl,, .1sh
h ... for *,=p,-E,I- S
from far. Prhn ..hip. (Son 'Vi, aFr I,..
J4(b)" &a 1-018in,d in in.t-li.n. line , Iiiii
4 Enter here and on line t2a, a amount onasline - 2. or 61. 3)NU gg?W farm optional method
Ita
2
3
4
1 Winpultattion at Net tarnings; from
Employment
-
a Schedule C. line 21 . (Enter combined amount If more then one business . ) 58
b Partnerships , joint ventures, etc . (other than farming) . . . . . . . Six
REGULAR METHOD c Service as a 5 Net profit or
(loss) from:
minister. member of a religious order, or a Christian Science
practitioner. (Include rental value of parsonage or rental allowance fur,
nished.) It you filed . . Form . 4361, . . . check . . here . 0- . E] . . and. enter . zero on this
line . . . .
. . . . .
5c
I
Service with a foreign government or International organization . . . . Bid
: Other ' u" toreTiot,h! 201n
) Specify I. .......................................... . ......... 50
6 Total (add lines 5a through e) . . . . . . . . . . . . . . . . . . . . . . .. 6
7 Enter adjustments if any (attach statement) . . . . . . . . . . . . . . . . .
8 Adjusted . net earnings or (loss) from nonfarm self-employment (line 6, as adjusted by line 7) 8
If li 8 is $1,600 or more OR if you do not elect to1 use the Nonfarm Optional Method, omit [in.. * ~
through 11 and enter amount from line 8 on line 2b, Part Ill.
Note: You may us, the nonfarm optionsirmerthod (iins f, 9 th mgli.sel d .. I I . p. 1yas11. 11n, . gnes , a 1, less
the, t-third"O your me, on alm f,o,t,. and
neagrin fro- "" .I'- or"W-ir if -r77nnZ rab
$400 or mom for at 1.- 2 the 3 1. [owingY.- 1974, 1975, and 197& The
... .. ly be used for "'
ME N
V0
NONFARM OPTIONAL METHOD at ..are '.am.
9 a Maximum amount reportable, under both optional methods combined (farm and nonfarm) Set $1,600 00
la Enter amount from line 3. (if You did not elect to use the farm optional method, enter zero) 9b
Balance (subtract line 9b from line 9a) . . . . . . . . . . . . . . . . . . . sic
20 Enter two-thirds of gross nonfarm profits I or $1,600, whichever Is smaller . . . . . . . . . -10
11 Enter here and on line 12b, the amount on line 9c or line 10, whichever Is smaller . . . . . .
'Gross it's alpare horits of from nonfarm bust-, am th,tc,talofthmossenwits fmmShd,I.C, 06t 11-3, 1.. th.drarlb..
foramri, gone profits fmhn nonfarm partrambIg (So edu a K-1 IF r L), U.. 14(d, bt) ae..d...!~..Inedl in 0.
structions d.f. SE. - in It
.
Area, Irol.d. IT ... print. fro.-i... reported firi.s. adjusted
by Ill, 7.
II~Cornputation Of Social Security Self-Employ-m-e-n-t-Tax- - ,
12 Not earnings or (loss): a Flo. farming (from line 4) . . . . . . . . . . . . ... 22a
Is From nonfarm (fro. line 8, or line 11 if you elect to use the Nonfarm Optional Method) . . . 121a
13 Total not earnings or (loss) from self-employmept reported an line 12. (If line 23 Is less than $400,
you are not subject to self-turploymenttti Do not fill In rest of schedule.) . . . ... . . .
14 The largest amount of combined wages and self-employment earnings subject to social security or
ilroad retirement taxes for 1977 Is . . . . . . . . . . . . . . . . . . . 14 $16,500 00
15 ra a Total "FICA" wages Umm Forms W-2) and "RRTV compensation . . . 1 15111
b Unreported tips subject to FICA tax from Form 4137, line 9 or to RRTA . . .15b
c Total of lines 15a and la . . . . . ... . . . . . . . . . . . . . . . . 15C
16 Balance (subtract line 15c from line 14) . . . . . . . . . . . . . . . . . . . 16
17 Self-employment Inconne---fine 13 or 16, whichever Is smaller . . . . . . . . . . . . 17
IS Self-employment tax. (if line 17 is $16,500, enter $1,303.50; if less, multiply the amount on line
17 by .079.) Enter here and on Form 1040, line 48 . . . . . . . . .
. . . . . .
our---Ther-or

SCHEDULE TC
(Form 104D)
Dnarla-tt d the T,-r
I,ta,i,al R_. &.1k.
Name(s) as shown on Form 1040
Instructions
Who Must File-This schedule is for
use by taxpayers who cannot use the Tax
Tables and for certain taxpayers who
must itemize deductions. If you must
itemize and the zero bracket amount on
Schedule A (Form 1040), line 40, is
more than your itemized deductions on
Schedule A, line 39, you must complete
Part 11 before figuring your tax.
Part I-You must use Part I to figure
your tax instead of using the Tax Tables
if your income on Form 1040, line 34, Is
more than $20,000 (more than $40,000
If you are married filing a joint return or
are a qualifying widow(er)) or if you claim
mom exemptions than covered in the Tax
Tables for your filing status.
You will also need to complete Part I If
you figure your tax by using Schedule G
(Form 1040). Income Averaging.
Tax Computation Schedule
P, Attach to Form 1040.
Part II.-If you are required to Itemize
deductions and the zero bracket amount
on Schedule A, line 40, Is more than your
itemized deductions on Schedule A. line
39, you must first complete Part 11 to figure
your Tax Table Income. The now zero
bracket amount must be adjusted by certain
taxpayers who must itemize deductiOn3'
This computation is necessary be.
cause the zero bracket amount is built
Into the Tax Tables and Tax Rate Schedules.
You MUST Itemize deductions It.
(a) You are married filing a sepa rate
return and your spouse itemizes deductions
(unless your spouse is described In
paragraph (b) and enters earned Income
on Part 11, line 3),
(b) You can be claimed as a dependent
on your parent's return and have $750
Tax Computation for Taxpayers Who Cannot Use the Tax Tables
Caution: Read the Instructions before completing this Part.
I Enter your Tax Table Income from Form 1040. line 34 . . . . . . . . . . . . . .
1
2 Multiply $750 by the total number of exemptions claimed on Form 1040, line 7 . . . . . . .
3 Taxable Income. Subtract line 2 from line I . . . . . . . . . . . . . . . . . .
(Figure your tax on the amount on Ilms 3 by using Tax Rate Schedule X. Y, or Z. or
see page 12 of Instnactions for Form 1040 for "Other Ways to Figure Your TING")
4 Income Tax. Check if from.
0
Tax Rate Schedule X, Y, or Z. 0 Schedule D. 0 Schedule G,
or 0 Form 4726 .
General Tax Credit
. . . . . . . . . . . . . . . . . . . . . . . . .
5 Enter $35 multiplied by the total number of exemptions claimed on
Form 1040, line 7 . . . . . . . . . . . . . . . . 5
Nate: If you are married filing a separate return, omit lines 6 through
9 and enter the amount from line 5 an line 10.
6 Enter amount from line 3. above . . . . . . . . . . .
($3,200 if you am married filing a joint return (or a qualifying rildoe(er))
7 Enter
$2,20D if you are single (or an unmarried head of hous I
8 Subtract line 7 from line 6 . . . . . . . . . . . . .
9 Enter 2 percent of line 8 (but do not enter more than $180) . . .
20 General tax credit. Enter the larger of line 5 or line 9 . . . . . . . . . . . . . . . 10
11 Tax. Subtract line 10 from line 4. Enter the difference (but not less than
1040. line 35 . . . . . . . . . . . . . . . . . . . z,,-! . -.-. on . For;L
. g,
6
7
a
9
077
rity, number
Pixur sar ses", -
or more of unearned Income and less
than $2,200 of earned income if you are
single (less than $1,600 of earned in.
come If you are married filing a separate
return),
Note: if your earned Income is more
than your Itemized deductions on Schedule
A, line 39, enter your earned income
in Part It, line 3, unless you are married
filing a separate return and your spouse
itemizes deductions. (See page II of the
Instructions for Form 1040 for a definition
of earned Income.)
(c) You elect to exclude income from
sources in United States Possessions
(see Form 4563 for details), OR
(it) You am a dual-3tatUS alien (see Instructions
for Dual-Status Tax Year on
page 4 of Instructions for Form 1040).
~ Computation of Tax Table Income for Certain Taxpayers Who Must Itemize Deductions
Caution: Read the instructions before completing this Part.
I Enter your adjusted gross income from Form 1040, line 31 . . . . . . . . .
2 Enter amount from Schedule A, line 40 . . . . .
1 2
3 Enter amount from Schedule A. line 39. (If you can be med * * ~. '.
dependent on your parent's return. am the Note In thec'~' Instructions
for Part 11 and check the box below line 33 of Form ID40.) 3
4 Subtract line 3 from line 2 . . . . . . . . .
5 Tax Table Income. ADD lines I ~44. ird~er 6ra' and on F*om* 1'040'. lire *34. (Do not make anan"
on Form 1040, line 33. Disregard the instruction on Form 1040, line 34. an 9 N bell
line 34.) . . . . . . . . . . . . . . . . . . . . . 5
1
2
3
4
P4
gn
40

2440 Disability Income Exclusion (Sick Pay)
(Applies Only to
.1 IM T,.... n,
Disabled Retirees Under Age IiSi) 1@77
W.-I R_... s-i.. III- Attach to Form 1040. lio See Instructions on back.
Name(s) as sh.~~ M Form 1040 Sailial,security, Nur9ber
See Instruction E for Requirements of Proof of Permanent and Total Disability
Date retired (it after December 31,
1976. also enter
in space next to
(ii)
Name of Employer and Payer, if other than employer
be.
on physiciaWs statement.)
Yourself ........... __............. -.........._ ....... ----_-_------- I-------------- I ..........
Spouse ------------ ------- -------------- --------- ------- ---------------------------------
I Total disability payments received this taxable year . . . . . . . . . .
2 (i) Multiply $100 times the number of weeks for which disability payments equal
or exceed $100. Enter total . . . . . . . . . . . . . . .
(ii) For each week (if any) for which the actual amount of disability payments re.
ceived is less than $100, enter total amount received for such weeks . . . .
(iii) In the case of payments received for a short period of less than a week, enter
the lesser of the actual disability payments received for such short period or
the maximum exclusion allowable for such short period (we Instruction B) .
(iv) Total (add lines (i), (ii), and (iii)) . . . . . . . . . . . . . . .
3 Total (add amounts on line 2 (iv)) .
4 Adjusted gross income before disability income exclusion (sick pay) (Form 1040, line .
29). If this amount is $15,000 or less, enter amount from line 3 on line 7 . . .
5 Maximum adjusted gross income before phaseout (see Instruction Q . . . . . . $15,000.00
6 Subtract line 5 from line 4 . ... . . . . . . . . . . . . . . . . . . . . . . .
Joint return filer s use colum. A
for wife and colu mn 8 for husband.
All other filers use column ordly.
A
-a
7 Disability income exclusion (sick pay) (subtract line 6 from line 3). Enter here and on Form 1040, line 30 .
Read Instructions on back before detaching. Form 2440 (D977)
----------------------- ........................ .............................................................. . ........... --------------------- ..........
Physician's Certification of Permanent and Total Disability
Name of disabled taxpayer
1~ Attach to Form 2440
fy that the above named taxpayer was (check only one box-see Instruction A):
I(1) Celli 0 Permanently and totally disabled on January 1, 1976, or January 1, 1977.
(it) E] Permanently and totally disabled on the date taxpayer retired. Date retired 0.
Name of physician
Physician's address
Physician's signature
Date
Sacil~,,.-In? Z_1_ba- ,
Instructions for Physician's Certification
A. Date Permanently or Totally Disalbled.-
B. Definition of Permanent and Total Disability-Perma.
rent and total disability means that a taxpayer is unable to
engage in any substantial gainful activity by reason of any
Check the (i) box if taxpayer retired before January 1. 1977.
Check the (ii) box if taxpayer retired after December 31
1976. The date entered by the taxpayer shou Id be the date on
which the taxpayer ceased active employment because of this
d isabi
lity.
medically determined physical or mental impairment which can
be expected to result in death or which has lasted or can be
lniftiected to last for a continuous period of a year or mom. The
substantial tivity, gainful activity referred to i s not lim ited to
the ac-
or comparable activity. in which the taxpayer engaged
pnorto retirement on disability.
Instructions
A. Who May Exclude Disability In.
come.-For taxable years beginning after
December 31, 1976. you will be eligible
to claim the "disability income exclusion"
on disability payments you receive instead
of wages only if all the fol lowing require.
ments are satisfied:
(1) You have not reached age 65 be.
fore the close of the taxable year,
(2) You retired on disability, and, when
you ~retired, were permanently and
totally disabled,
(3) At the beginning of the taxable year
you have not reached mandatory
retirement age (generally the age at
which you would have been required
to reti re under your employer's retirement
program had you not become
disabled), and
(4) You have not made an irrevocable
election not to claim the disability
income exclusion (see Instruction
F).
If you retired before Jan 1, 1977,
and either retired on disability uary or were en.
titled to retire on disability, and on Jan.
uary 1, 1976, or January 1, 1977, were permanently
and totally disabled, you will be
considered to have met the requirement of
A(2).
tty B. Limitations.-The amount of disabil-
not payments that you may exclude can.
exceed the lesser of a weekly rate of
$100 or you r actual vveekly payment.
To determine your actual weekly pay.
ment, you must convert disability income
paid on a non weekly basis into weekly
rates of Payment. Determine your disabil.
ity income weekly rate as follows:
If you are paid on the basis of a:
(1) Weekly pay period, this is theweek.
ly rate.
(2) Biweekly pay period, the weekly
rate is one~half of the biweekly rate.
(3) Semimonthly pay period, the weakly
rate is the semimonthly rate
multiplied by 24 a nd divided by 52.
(4) Monthly pay period the weekly rate
is the monthly rate . mu Itiplied by 12
(5) and divided by 52.
Other pay period, the weekly rate is
the annual rate divided by 52.
The exclusion of disability payments
received for a period of less than a week is
lint'led to your daily exclusion multipled by
the number of days in the week for which
you receive disability payments. Your daily
exclusion is the lesser of $100 divided by
the number of days in your normal work.
your daily rate of disability pay.
week For example, ol~ if your normal workweek is
Monday through Fridy'. your daily exclu.
sion, is the lesser of 20 ($100 , 5) or
your dailX rate of disability pay. Assuming
that $20 a the lesser of the two, and your
reliremcn'~ from work became effective as
of the close of business on s Tuesday your
exclusion for the first week will bi~ $60
($20 x 3).
Payments for such short periods may
be received when one of the following
events occurs ;)fter the first day of the tax-
Payer's normal workweek: (a) the disability
retirement commences; (b) the taxpayer
reaches mandatory retirement age in a taxable
year prior to the taxable year in which
such taxpayer attains age 65; or (c) the
taxpayer dies.
If you reach mandatory retirement Claim
during the taxable year, do not 8g: th
exclusion for any days after you reach
mandatory retirement age.
On d a return h where one taxpayer
. is en.
t.
tie to t a disability income exclusion.
the axi in um exclusion is $5,200. On a
joint return where both spouses are en.
titled to the disability income exclusion,
the maximum exclusion is $10.400.
C. Maximum Adjusted Gross Income
Before Phaseout.-If gur adjusted gross
income determined be ore the disability income
ads exclusion 5,000, You (Fonm 1040. C no 29) ex.
cee $1 must reduli the disability
income exclusion by the 0excess $1
your adjusted gross income over 5,000. of
On a return where only one taxpayer I. a entitled
~o the max , murri disability income
excl usion, the exclusion would be phased
out entirely if the amount on Form 1040.
line 29, is $20,200 or more. On a joint
return where both spouses are entitled to
the maximum disability income exclusion.
the exclusion would be phased out entirely
if the amount on Form 1040. line 29, is
$25,400 or more.
D. Filing Requirements for Married
Couples.-If you are married at the close
of the taxable year, you are allowed the
di sa bility income exclusion only if you and
your spouse file a joint return, unless you
and your spouse have not lived together
at any time during the taxable year.
E. Permanent and Total Disability.-You
are permanently and totally disabled only
if you are unable to engage in any substantial
gainful activity by reason of any
medically determined physical or mental
impairment which can be expected to re-
:.ult in death or which has lasted or can be
pected to last for a continuous period of
a year or more.
If you retired an disability before Jan.
uary 1, 1977, you must submit a certificate
from a qualified physician attesting to your
permanent and total disabil ity on Jan.
uary 1, 1976, or January 1, 1977.
If you retired on di'a` bility during 1977,
you must submit a certificate from a quail:
fled physician attesting to your permajent
anddtota!4isability at the time you retired
on isabi ity.
A physician's certification with the required
information is provided for you on
Form 2440. Detach the physician's certi.
fication from the form before having it
filled in by your physician. After the certi.
fication has been filled in try your physi.
cian, attach it to Form 2440 for submission
with your tax return.
F. Election Not to Exclude Disability Income.-Before
the time you Start to report
your disability payments under an ap.
plicable pension or annuity rule, you may
not apply any of your pension or annuity
cost against your disability payments.
However, if (1) you retired on disability be.
foreJanuaryl 1977 and on December 31.
1975, or Dece~nber ~I. 1976, were entitled
to exclude any amount with respect to such
. U.S GOVERIIENT -TING OFFICE: --235-341 E 1. 52471-
retirement disability payments from gross
income 85 sick pay. or (2) you are eligible
for the disability income exclusion: you
may make an irrevocable election not to
claim the disabili!y income exclusion. If
you make a valid irrevocable election, you
Should report your disability payments
under an apolicable pension or annuity
rule, which allows you to apply your cost
against your disability payments. The elec.
tion is applicable for the year of election
(but may not be made for a year prior to
1976) and all subsequent years.
To make the election, attach a state.
ment to your tax return that (1) state'
elect not to claim the disability income yo
exclusion and will report your disability payments
under an applicable pension or an.
nuity rule, and (2) sets forth your qualifi.
cations for making the election. If you
retired in 1977, you must also attach a cer.
tificate from a qualified physician attesting
your total and permanent disability at
to the time of your retirement. This election
is not available to disability retireC5 who
retired after December 31, 1976, and
whose disability payments are not eligible
for the disability income exclusion.
The irrevocable election not to exclude
gou! disability payments will allow you to
egin recovering your annuity cost imme.
cliarely* This may be beneficial in the fol.
lowing situations:
(1) The exclusion phaseout substaft.
lially decreases or eliminates your
disability income exclusion:
(2) You believe that you vvill not live
long enough to benefit from recovering
your annuity cost at age
65 or at your annuity starting date;
(3) The election will cause the amoulits.
you receive to be considered retire.
ment income (provided you have
reached minimum retirement age)
on hich you may be entitled to a
credit for the elderly.
G. How to Report Your Disability Retire.
ment Income on Form 1040.-Report your
total disability payments received during
your taxable year as incorrine frorn wages
on Form 1040, line 8. Determine !he
a mount
your disability income exclusion
on Formof2440 and enter on Form 1040.
~ine 30. Thii procedure should be to[.
owed until you reach manditory retire.
ment age, the beginning of the taxable
year in which you attain the age of 65,
or the taxable year for which you make the
irrevocable election discussed in instruc.
tion F, whichever is earlier. During this
period. you cannot offset any of your an.
nuity cost against your disability payments.
When you reach the earlier of mandatory
retirement age or the beginning of the tax.
able year in which you attain the age of 65,
you will begin to report the total amount of
your disability payments under an ap.
plicable pension or annuity rule. For fur.
ther in formation see Instructions for
Schedule E (Form 1040). Part 1. Pension
and Annuity Income and Schedules R&RP
(Form 1040), Credit for the Elderly. '
H. Additional Information.-You will
find Publication 522, Tax Information on
Disability Payments, helpful
the exclusion.
in explaining
P0 40

,_2441 D__ , al o. Tho-
1-1 Row,... S_~
Credit* for Child and Dependent Care Expenses
'M
ji~ Attach to Form 1040.
N...(s) as shown .. For. 1040 Your -let -,,try mmi
I Name and relationship of each qualifying individual for whom expenses were paid and period (months and days) each lived in your
household as a qualifying individual during this taxable year (see instructions for line 1). 111 P*,i*d 11-d in ""I h*u**h*ld
I.) N- (b) 0*1,11-hp month, ... ys
---------- ................................................... ....................... ...................-- ............ ...................
................... ....................................
............. .............. ................... . ...... ...........
2 List the individual($) or organization(s) to whom employment-related expenses were incurred during this taxable year.
u, (a) mN.-
and :dd,.s. on S-1.1 ...
pc. -hoo.l.) needed. -.1 i..'"'cu-,
h in, 2)
(c) R,oti...hip
W) ft,i,xi In.ur,ed 1. 1977
F n,
si-th-Day Month~oay To
W Amount
--------------------- ---------- ---------- - - ------------------- . ...... ------------------ --------------- -- ------------ ----- I --------------- -------
--------------- ................ ----- -------- I .........
................................... .....................
------------------------ -
------- ---------- -- --------------- -------- -----------
................ ......................
........................ I ........... -- .......... ......................... ................. ................. .............-___
------------ -------- --- I............... --------- ---------------- 1-1 -.1------------- ----------------- ..................... .
-......... ------------------------ ---- --------- -- ------------ ------------- ---- -----------_---- - -------------- -------------------- -------
.......... I I------------ ----------------- --------- I............... ----- - ---------
----------- ---- -------------- ------- -------
......................... ..........
----------------- ------------_--- ---------------------- -------
I ------------------------------- ------------------------------------- I
Computation of Credit
3 Total of column (a) . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Enter the lesser of amount an line 3 or $2,000 ($4.000 if two or more qualifying individuals) (see
instructions for line 4) . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Earned income limitation (an entry MUST be made on this line):
(a) IfI unmarried at end of 1977, enter amount of earned income . . .
(b) Married at end of 1977, enter the lesser of your earned income or y;ur
sp~use's nineiJ
income. lions Note: 5 If. you . or . your . . spouse . . was . . a student or incapable
.
. .
. of self-care, . see instruc.
5
to, line
6 Enter the lesser of line 4 or line 5 . . . . . .
.
.
.
. .
.
.
.
.
.
. .
.
.
.
.
I
. . .
I
. . . 6
7 Total amounts listed on line 6 paid during 1977 . . . . . . . . . . . . . . . . . 7
8 Child and dependent Care expenses incurred in 1976 not paid until 1977 (Attach schedule showing
9 computation of limitations-see instructions for line 8) . . . . . . . . . . . . . . 8
Total of lines 7 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Credit for child and dependent Care expenses. Multiply the amount on line 9 by 20% Enter result 20
here and on Form 1040, line 40 . . . . . . . . .
.
. . . . . .
11 If payments listed on line 2 were made to an individual, complete the following: )? . . . . Yes No
(a) Paymenth of $50 or Mon in a Calendar quarter was made to an individual, were the services performed in Your home? .
(b) "Yes," ave appropriate wage in returns on wages for senices in your home been filed (see instructions for line 11
(c) I answer to (b) is "Yes," enter your employer identitication numoer . . . . . . I~ I
Instructions crude the cost of clothing, education, protection. Payments for food, clothing, or
treatment, vacations, life insur- education are not such expenses. How.
who May Claim the Credit.-If you
maintain a household that includes as a
member one or more qualifying
medical ance, and transportation.
Employment-related Expenses.-"Em.
war, if the care provided includes ex-
penses that cannot be separated. ther Iull
individuals,
you maytaxbe. at wed mull firrit a gainst your
income Thetocredit a I C !led to 20 per-
ployment-related expenses" am those paid
for he following. but only if paid to enable
t to be gainfu ly employed:
he
amoun Paid will be considered fa
qualifyfing
individual's care. Thus, the
amount paid to a nursery school will full be
cent of employment-related expenses (up
to certain limitations) paid during th tax.
:ble year in order to enable you to awork U
you
(1) Expenses for Household Services-
Expenses will be considered for
considered for the Care of a child even
though the school also furnishes lunch.
household
ither a full or part time for an employer or
as self-employed individual.
services in your home if they are for the
ordinary and usual
Educational expenses for a child in the
first or higher-grade level are not expenses
services You
will be treated as maintaining a
household for any period only If you furnish
over half the maintaining the
household for
cost
period. of If you am
married spouse must duringp such that period, you and your
over half the main.
tenance cost for novide that period.
necessary for
the14 operation of the home, and bear some
re ationship to the qualifying aIndividual.
Thuds,
payment for services of domestic
me or cook will ordinarily be considered
expenses f for household f ee ruicas If peri
Ormed at least partially or the benefit Is
the qualifying individual.
fortho e child'scar
D not include services outside your
household as employment-related ex-
peruses for your spouse or a dependent age
15 or older. However, services outside your
household are employment-railated
pensers for a dependent who tms no exi
reached his or her 15th birthday.
The expenses of maintaining a household
barest, include rent, Property utit taxes~ mortgage In-
~y charges, upkeep and
repaint, Property
I
ussurance, end food con.
(2) Expenses for the Care of a Qualify.
ing Individual-Expenses will be considered
for the care of one or
Individuals If theiri main purpose
mom qualifying
was to
Sp-lal Rules.-
(1) Married Couples Must File Joint R&
turns.-If you are married at the end of
sumed on the premises. They do not In- assume that Indiv dual's well-being and (Conti ..of - back)
the taxable year, the credit for, employ;
ment-related expenses is allowals a only i
you and your spouse file a joint return for
the taxable year.
(2) Marital Status.-If you are Ily
separated from your spouse underlega a decree
of divorce or of separate maintenance,
you are not considered as married.
(3) Certain Married Individuals Living
Apart and Filing Separate Returns.-It
during the last 6 months of the taxable
year your spouse was not a me,
your household and you (I) maint.trid 0. I
household that was
'or mr than onehalf
of the taxable year the prlincpal place
of abode of a qualifying individual, and (it)
furnished over half of the
mining such household d ri ng cost theofta= -
year. then you are not considered manried
for purposes of the credit.
(4) Special Dependency Test in Case of
Divorced Parents-A child (son, stepson.
daughter , stepdaughter) whose parents
are divorced. legally "paroled under a de.
cheir of divorce or separate maintenance,
or separated under a written separation
agreement, shall be treated .VI;Vc, , uat~dy ulfiin, of
Individual for the parent It
the child for the longer period during the
taxable year. provided that all of the to]low,ing
three Conditions are
(a) The child must be met~hal g. of
u nder
15 or physically or mentally incapable of
self-ciine.
(b) The child must receive over half of
his or her support during the taxable year
from the parents.
(c) The child must be in the custody of
one or both of the parents for more than
one-half of the taxable year.
(5) Payments to a Related Individual.-
In Computing your credit, you may not
include payments made to a relative of
Kisurs 0,,Of your spouse or to a (depseinclenat cu on,
Ouse 0 d member. For this e,
relative of youn; or of your spouse in.
clud ants?%te ' S,;Oonr claughteer or . and their descend.
pdaughter; brother,
sister, stepbrother, stepsister; father or
mother and their ancestors; stepfather,
step!nother; nephew, niece, atmt!
son-in-law, daughter-in-law. Iun"e inthei in.firw
mother-in-law. brother-in-law, sister-in-law.
Elaception: Payments made to a relative listed
above may a:so be included In Computing your
Credit it that relative is not your dependent and
the relative's services am ctinsiderid employment
for social securIty purposes.
For =I&[ security purposes, the following saw.
loss ii.) amServices considered ferfarnmed
*m'k`y4`n. r son or daughter
age 21 but not
(b) Domesticofservice ove!, by your your mother spouse oi~ father
if
daughter a (I) Youwhohe" is Under in your agelux" 18 or- who, "T has or
physical or mental condition
personal are of an adult for m1uhl, at least"fltIr
Continuous Weeks in the quarter, and (it)
you am a wid- (widower) or are divorced,
11 because you 1:,"a Itigpoule 1. clin thout. an home I wh ,
oulaition,
Is Incapable of calling for your WR or
daughter for at least four Continuous weeks
in the quarter.
(c) Services of all other relatives who are not
self-employed.
Employment-related Expense vs. Medl.
.1 Expense Deduction.-If an expense
qualifies as both employment-related and
medical , you may treat it either way, as
long asI you do not use it twice. If you treat
thetexpanse If as employment-rallated, any
foludinum or it that Ogn(
not use because of
tpa
her 12, ou
yearly limi.
tation an be treated a's$4p'a" ' rt ot your medical
expenses.
if you treat the expense as tion Cannot be used as part of your amployment-related
expenses.
Use of Credit In Date nlng Your
Withholding AllowlincesfTmhel
the part of it that is not deductible medical, because
of the 3 percent medical deduction limits-
Credit
for
child and dependent are expenses me, be
used in dele Y C,=., ing= wi.11tholding P, allow.
ance5.
per number fit the of
withholding allowances, you can
amount of taxwithheld hurnyourwagesto
your tax liability. For further information,
obtain a Form W-4, Employee's Withholding
Allowance Certificate from your em.
ployer or an Internal Revenue Service
office.
Figuring the Credit
column Line I-Enter In the appropriate
the name(s), and relationship of
each qualifying individual for hom expenses
were paid and period (months and
days) each lived In your household as a
qualifying individual during your taxable
Year. Determine on a daily basis whether
an Individual is a qualifying individual. A
qualifying individual Is:
(a) A dependent under age 15 whom
you can claim as an exemption or a child
ee= lh pecial dependency test of
mIf 6rents s (see Special Rule (4)).
(b) A person who is physically or mentally
incapable of self-care who you either
(1) are entitled to claim as an werrip.
tion; or
(2) would be entitled to claim as an exempt!
on except that the person had
gross income of $750 or more.
(c) Your spouse, If physic-ally or men.
tally incapable of self-cam.
Line 2.-Enter in: column (a) the name
and address of the individual(s) or organization(s)
to whom employment-related ex.
penses were Incurred, column (b) the employee's
(c) the number, column
mlatiorish -let security the individual to you
(if none, write none), ip ofColumn (d) the period
for which the expense was incurred in
1977, and column (e) the amount of ex.
pense incurred (include your share of so.
cial E security it. taxes on employee's wages).
mer iin
colu n (b) only the social secu.
rity m number of in individual who is your
employee. No entry should be made for
a self-employed Individual, partnership, or
corporation.
"incurred" means owed for payment,
whether or not paid. However, to be atlowed
in computing the credit, expenses
must be paid during the taxablewithin yea, th th:
credit is claimed and must be
limitations. if
the empfisyment-related household
expenses Is ne I qua individual,
d not allo,! I tedy ~ if "g rt of the expenses to
care the some month. no amounts paid
that month am considered employment.
related expenses for purposes of the credit
beca se neither of you was employed on a
full-byme or part-time basis.
"Earned Income" means wages, sale.
ries, professional fees, etc.. received for
personal services rendered and net earn.
ing5 from self-employment.
it does
ate a
nonqualifying 0
individuals.
if you Une 4-Enter lesser of line 3 or $2,000
listed the name of one qualifying individual
or $4.000 if you listed the names
of two or more qualifying individuals.
These amounts are the dollar limits for
employment-related expenses incurred during
any taxable year that may be taken into
account in computing the credit.
Une 5.-Entqr the amount of your
earned income if you am unmarried. If
you are married, enter the earnings of the
spouse having the lesser amount of earned
income. If your spouse Is a full-time student
at an of s:d,f=o,
ria, Us. orgam,:,tion the gm or in-
capable
ter of your
spouse's monthly earned income or $166
(SM if two or mom qualifying individuals)
to detepnine his or her total yearly Income'
Use this amount to decide which
has the lesser amount of earned spouse Income
to be entered on line 5. The $166 ($333)
rule applies to only one spoum for any one
month. Therefore, if both you and your
spouse ans students or incapable of self.
not
include compensation for your services
that was a distribution of earnings and
profits other than a reasonable allowance
for your work for a corporation, nor does it
Include pension , annuities, or amounts
that are raceiveds6nder accident and health
plans that are excludable from gross
inc!me.
Student" is one who "a enrolled
as a full-time student at an ad ucational
organization during any of 5 months during
the taxable year.
"Educational organization" means a
school that has a regular teaching staff,
course of study, and body of students In
attendance. It includes elementary schools,
junior and senior high schools, colleges,
universities, technical and machan
sch ols. It also Includes a night schoesi-in
which the student is enrolled for the num.
ber of houns or classes that is considered
afull-time h ),. I attendance at a similar Its
c 0o t does not Include on-the-jog
tmining ' courses, correspondence schools,
etc.
Lin" ctZnd 6 7. --Complete them [inn
as instru on the form.
Line S.-Child and dependent care
pernmis incurred in 1976 may be eligible for
the credit in 1977. If you paid for expenses
in 1977 that you incurred in 1976. a credit
may be computed on the expenses in 1977
It you did not exceed the limitations In
1976. The credit is in addition to the child
and dependent Care credit
on expenses incurred and paid you In may 1977. claim
Example: In 1976, you incurred child am a.
pense, of $2 for your 14-year old da ghter.
Of the $2.161011. child are expenses, vil,800
were paid in 1976 and $300 were paid in 1977.
Your spouts's earned income of $5.000 was less
I'll your earned Income. You would be allowed
I. compute a credit on $200 In 1977, computed
n folio :
I Child a. emperse; incurred In 1976. $2.100
2 Qualifying Individual limitation . , S2,OW
3 Income limitation . . . . . . . . $5,000
4 Lester of line 1, Z or 3 $2,OW
5 Less expentes on which credit . . . was. com. . .
puted in 1976 . . . .
. . . . . 190
6 Expenses allowable for credit In 1977. - I ---
Line II-On line 1 1 (a), check yes or no
box if you paid Cash wages for a household
employee who performed services h of a
ousehold nature in your home. In general,
if you paid cash wages of $50 or more In a
Calendar quarter for household services to
a person such as a cook. housekeeper, govemess,
maid, cleaning person, babysifter.
etc., You arefrequired to file an employment
tax return. I you are not sure whether you
should file an employment tax return, ask
the Internal Revenue Service or obtain
Form 942. Employer's Quarterly Tax Re.
turn for Household Employees.
On line 11(b), check yes or no box clepending
on whether or not you have filed
Form 942. Employer's Quarterly Tax Re.
!urn Household Employees, for serv.
for arfor ed (C)
fi.n me In
loan.
your employer
ces is Im
enter you' home.
um 'it you
bar, bon numb filedo Fis. not have a
ti It and a. able. "
,,Empi .2 and
enter "none" in ~he space for oyar
Identification no.
For mom Information. obtain Publice.
tiorn 503, Child Care and Disabled De,
pendent Care.
* --- jor-, 23-1811

2555 Exemption of Income Earned Abroad Flease see "Caution"
(R-. Dec. 1977)
bloodline learned f ill. T-ran,
R-.. S.M.
le, Attach to Form 1040.
I For taxable year ending jj~
on page 3 before
completing this form.
1 nis t-orm is to be Used Only by United States Citizens-and Certain Resident Aliens (See Instruction 1.)
Name of taxpayer or
Foreign address (including Country)
"oil, -UP*tl*n
Name of employer Ill.
E-Ploy:e. I U.S. 11.
addles
oreign It.
Give the latest F year for which you filed a U.S. Income tax return jj~ Service Center where filed Jitain
For an explanation of the previsions under which earned Income of CitiZens abroad Is exempt, see Instructions may ot~
Publication 54, Tax Guido for U.S. Citizens Abroad, and all forms from any Internal Revenue office, U.S. Embassy, or Consulate.
Check status under which you claim e,emp- [3 Bona fide residence. Complete Paris 1, 111, and IV.
tion of aimed income from services abroad E] Physical presence. Complete Parts 11, 111, and IV.
Complete all items In the parts pertaining to your status. It an Item does not cpply, , wriL, "DOES NOT
APPLY." Failure to submit required Information may result In disallowance of the c aimed exemption.
1~TG be Completed for Bona Fide Residence Only
2 Fon,16 country In which you claim bona fide residence ............. ......... Residence began ........... .............. .ruled .............
2 Kind of living quarters In foreign country 0 Purchased house D Rented house or apartment [] Rented room F] Quarters furnished by employer
3 Did your family live with you abroad during any part of the taxable year? . . . . . . . . . . . . . . . . . . Yes [3 No
It "Yes," for hat period? ........ .... ------------------------------------------ ------------------ -------- --------------------------------
4 (a) Hayo you made a statement to the atr6orithes of the foreign country you claim bona fide residence in that you am not a rest.
dent of that country? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y. 0 No
(b) Ara you required to pay Income tax to the country you claim bona fide residence in? . . . . . . . . . . . .
if you made a statement to the authorities of the foreign country that you are not a resident, and the country holds you am
r not subject to Its Income tax, you do not qualify for this U.S. exemption. (Sao Instruction 8(c).)
Complete the following for days present In the U.S. Or its possessions during the taxable year.
Yes E] No
axis -1,id
I. U.S. id..Inai D-b`
U.S.
hn, 1. U.S. 't
a b..!rx~',
Aax~u.t "r oulls I. U.S. an
D
a ,
'
-1 d bit.
in (Atbuth stluoulot - --- -----------------
n . ---------
U.S ,_ 7
d.suou"
- in, oxcounn'...) ~
here U.S.
11-1-1 U,I* ce
it," ., in U.S. I ' b2. * 1.- (Aftun, dhionwal
-u- shield.,
---------------- ---------------
-------------
---- ------ --- ----------------
----
-- ------------ -------------- -- -----------
-- ---------- -------------
-- ----------
----------------- - ---- ---------- ----- ----------- ---------------------
------------------- ---------
I........
Do not Include thl, income 11 Pan Ill. Report on Farm 1040.
6 (a) Sums any contmebral t hms or other conditions relating to the length of your employment abroad. ........................................................... ...... .
. .. ...........I-, ............ :.................................. ................................................. . ........... ............. .... ...... ............................. ... . ............ ......... ...
........................... ... ............................................................... ... ............................................. .. .... ............................ . ..........................
(b) State the type of visa you entered the foreign country under, .............................. .......... ...................................................................... ............
(c) Did your visa contain any limitations as to the length of your stay or employment In a foreign country?
It "Yes," attach explanation.
. . . . . . . 0 Yes 0 No
(d) List the places whom you have resided and the dates of hesidence since you left the U.S. to establish residence abroad. ............................
I...... ......... A.... ........... ................................................ 1.11 ................................. ............... ................................................ ......................... ..
(a) Did you maintain a home in the U.S. while residing abroad? . . . . . . . . . . . . . . . . . . . . [] Yea No
It "Yes," show address of your home, whether it was rented, and the names and relationships of the occupants . ................................
To be Comp:eted f3, PhysiZal '-Prescrice - 00y
7 The 18-manth period the -:npV.n f~r physical presence.x. In , foreign ce ntry Is based on is train ................... thmugh
8 Enter all travel our ad during,the 18-munth pan. Ile hiption is basIL an, -pt trawl between ftna!gn countrie- that did not Involve
he I on or or
war International waters fur 24 hours or more. If the last entry Is an arrival In a foreign country, Irsen number of fu!I days to end
of 1&manth period. if there was no tr-I to rcpon durinj the period. write in schedule that you were physically present'in a foreign country or
countries during the entire 18-morith period.
N,- md.di., cl -1,
pit. -d fill Ihd:, rd U.. r.11 in, li-lir N A-rut I. U.c. an
-clu` d.,, m t!.S. (Anl-r or ..in
enna,
--------------------------------------- ---------------------------- -------- -------------------------------------- ------ ---- --------- --- ---------------------------
---------- ----- ----------- ---- --------------------- ------------ -- -------------------------------------- ----------- - ------------ ----------------------
--------------------- -------------- ------------------ -------- --- ---------------- ----------------- ----------- -------------- -------------
------------------------------------- -----------------
---- --------------
-------------------------
------------- ------------
--------------
9 Enter prior years you clal- d exeinpilon for Inc- uar-d al-wd under secti- 911 P.
00-235-147-1
Form 2555 (Raw 12-77) as
JE~ To be Completed for Both Bona Fide Residence and Physical Presence
20 Enter below your total aimed Inclime train Sources outside the U.S. including nancash remuneration. (See Instructions 7 and Bid). 10(b), and Will).)
Is pail of the Income (such as; bonuses) attributable to semices perforried in Mt years or to be pinioned for years other than this year? 0 Yes 0 Me
It "Yes," see Instructions 10(a) and 11.
Do not report exempt Income on your Form 1040, but enter all taxable income in the appropriate sections of the form
received all or part of your income in foreign currency, translate its exchange value into terms of U.S. dollars at the rates proved.
Ing at the time you actually or constructively received the income.
Earned Income (for personal sentices, renclered In foreign countries) ILx"`-"
r .... ...d
Amount
0. U.S, delta.)
11 (a) Total woures. salaries. bonuses, commissions. etc., received during this year . . . . . . . ........................ .......................
(b) Amount attributable to prior yeara or future years. (See Instructions 10(a) and 11.) . . . . ........................ .................... ...
(c) Balance attributable to this year. (Subtract line 11(b) from line 11(a).) . . . . . . . . ..................... .. ......................
12 Pensions and annuities (Sea Instruction 10(d).)
13 Allowable she. of Income for personal services mndered. (See Instructions 7 and Win).)
............
(a) In a business (including faming) or protession. (Attach Schedule C or F (Form 1040).) . . . ................ ............
I ~ a partnership (Give name, address, and nature of Income.).. ......................................... ........................ .......................
...................................................................................................................... .. ..................... .....................
- ------------------------------------------------ .............................................................-1 .. ........................ . ...................
------------------------------------- ----------------- ----------- ........................................ .. ..................... I................
14 Noncash remuneration. (Market value of property or facilities furnished by employer, Attach statement
showing how determined.)
(a) Hamar
(b)
I(.)
Car
Other property facilities (Specify.). ........ . ...............................:.....................
. . . . . . . . ........................
------------------ -----*......
......................
------------------------------------------ ............................................................................ ........................ .......................
------------------------------------------ ................................................. : .......................... ....................... .......................
15 Other Income (Specify.) ...... .................:----------------------- ------------------------ ----------------------
--------------- .................................................................................... . ................ ........................ .......................
16 Allowances, -- ----------------------------------------------------------------------------------------------------------- . micabumarrundbi. ------- ------------------- * ---- ---------------
(a) Cost of thing . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ ......................
(b) Ovarian differential
(c) Family
. . . . . . . . . . . . . . . . . . . . . . . . .__ ................... ......................
(it) Education .. . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ .......................
~oil Hom Ithave
(I) Quarters . . . . . . . . . . . ........................ ......................
(a) For any other purpose (Specify.) ........... ................................................. ------- .................... ... ........................
............ -------------------- -------- .................................................................... * ............... ........ ........................
27 Total earned income from sources outside the U.S. . . . . . . . . . . . . . . . . . . . . . .
IS Exempt earned Income (it you were an employee of , U.S. charitable organlration sa. Instrucuor, 10(g).) . . . . . .
19 Taxable earned income from Sources outside the U.S. (Subtract the amount on line 18 from line 17. If lies than zero enter
zem. Enter here and mport an Form 1040.) . . . . . . . . . . . . . . .
ipleted by Ail Taxpayer3 Claiming Exemption of Income Earned Abroad (See Instruction 12.)'
20 Taxable income (from Schedule TO (form 1040) Part 1, line 3) . . . . . . . . . . . . . . . . . . .
21 Enter exempt earned Income from fine 18 . . . . . . . . . . . . . . .
22 Enter expenses aflocable to the excluded earned income on line 21. (See Instruction I.W.) * . . .
23 Net excluded earned income (Subtract the amount an line 22 from line 21) . . . . . . . . . . . . . . .
24 Not taxable income (add li- 20 and 23)~ . . . . . . . . . . . . . . . . . . . . . . . .
Tax on the amount on line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 26 Enter net excluded earned income from line 23 . . . . . . . . .
$3,200 if you are married filing a joint return (or qualifying widow(er)) .
27 Enter $2 $ 2 0 it you am nla I, an imm-ild head of household) i . .
1:600 0 it you am married fiiing a separate return . . . . .
.
.
.
.
. .
. .
. .
.
: I . .
.
.
28 Total. (Add tin es 26 and 27)- . . . . . . . . . . . . . . . . . . . . . . .
29 Tax on the amount a, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30 To.. (Subtr-t 11.1. 29 from line 25. Enter hcm and on Schedule TC, Pon 1. flio 4 and -it. in Farm 2555.) . . . . .
20
I It you and your p.... file . Joint mt.. and you both complete this form, complete only one Form 2555. Part IV. Use -tined amounts on line.
throu,n 30.
mum* Ro- froun,, on 11, -nt - line 24 by ,Ing T- Rate Schedule X. V. - 7, OR If
tax Form 4726. -
Figure to. - the amount an line 23 by ling Tax Rate Schedule X, Y. or Z.
ppl;llblo: 11--fl- to. from Schirdul, 0 (Fam I0,i0) or -1
c7D-.235-147-1

Pon. 2555 (P-. 12-M A& Detach at perforation and file only pages I and 2. A&
P.N. 3
Caution
At the time this form was
printed Congress was considering
legislation that would affect the
Foreign Earned Income Exclusion.
If this legislation is passed, the Internal
Revenue Service will revise
Form 2555. We will do our best to
tell you about it in radio, television
and newspaper announcements.
Instructions
1. General.-To determine whether you
must file Form 1040. see Who Must File on
page 4 of that forin's instructions. In determining
whether you must file a return. be
sum to include your Income earned abroad
even though it may qualify for tax exemption.
as explained below.
U.S. citizens In foreign countries are
subject to the same U.S. income tax Lawe
as those living In the U.S. However, there
Is an e'v-!'.n,as to their earned incamis
as defin .
a in indentation 7, received for
personal services rendered abroad. A
limited amount of Income may be
exempt from tax if"-ad a citizen meats either
the "bona fid. residence" test or the
"physical presence" (See Instructions
8 and 9.) Detailed information test. about these
provisions may be found in Publication 54,
Tax Guide for U.S. Citizens Abroad.
Resident aliens of the U.S. train certain
foreign countries with whom tax treaties
am In effect quality for the benefits of sec.
tion 911(a)(2) of the Code (physical
presence) to the same extent as U.S. citi.
zens under —nondiscrimination" clauses of
such treaties. To determine whether the
country of which you am a citizen contains
such treatya "nondiscrimination" clause in its
with the U.S.. obtain publication 54.
2. How, to filo.-If you qualify for ".
mption on any part of your earned Income
train exempt sources outside the U.S., show your
income and information supporting
It on this form, also compute your tax In
Part IV of this form. Then aftach this to=
to your completed Form 1040.
If you earned your only income abroad
and all of it qualifies for exemption, you
need only complete this form and attach it
to a Form 1040 showing your name.
address, social security number, and signs.
ture.
on your Farm 1040 compensation
as= the U which made and to all subsequent taxable
yea.. Such election may not be revoked
except with the consent of the Com.
missioner.
3. Where to file.-File Form 2555 with
Form 1040 with the Internal Revenue Sam.
ice Center, Philadelphia, PA 19255.
4. When to file,April 15 is generally
the due date for filing calendar year income
tax returns. However, if you am residing
or traveling outside the U.S. on April
15, you are automatically allowed an ex.
tension of 2 months to June 15. The 2month
automatic extension also applies to
fiscal year taxpayers.
If you take advantage of the automatic
extension. you me required to attach a
statement to your return showing that you
were residing or traveling outside the U.S.
an the due date of your return, Interest is
chprged at the applicable rate on any unpaid
tax from the due date of the return
until the date of payment
5. Special extensions of time fair filing.it
you expect to quality for the exemption
explained in Instruction 8 or 9 on a date
mom than 2 months after the regular due
d
I ur
S. for personal services performed
before foreign residence began.
'uso report on Form 1040 all other items
of gross income. Including earned income
that does not qualify for exemption (such
as a pro rate part of your earned income
If part of the Personal services was ren.
dered during temporary business trips to
the U.S.).
Note: If you file this form, you cannot
c;aim the earned Income credit.
An individual entitled to the benefits of
section 911 for a taxable year may el!d
not to have the provisions of this section
apply. To maite the election. attach a
statement your timely filed Form IG40
Including you elect exm-ions to thereof indicating that
not to have section 911 apply.
An election not to have section 911 ap.
ply shall apply to the taxable year for
return. 2 my apply a. Form
11ofe'roan extensiyouto a dste after that
on which you expect to The tax avoidance purpose does not
to be the only purpose for receivinghave the
money outside of the country in which
earned, nor does It have to be the
reason for receiving the money Pit
that country. It is sufficient thatoutsbe one
of the purposes. The fact that th:
in which the income Is earned does country not tax
amounts received outside of the country
will be viewed as a strong indication of a
tax avoidance purpose.
If you engaged in a non-corporate trade
or business in which both personal services
and capital were material income-producing
factors, a reasonable allowarice as connpensation
for your personal services will be
considered earned Income. This urned income
amount. however, cannot be more
than 30 percent of your sham of the not
qualify for the ex.
emption. Send the application for extension
to the office where the return will be filed,
before the due date of the return (for cal.
endar year taxpayers, this would be June
15). Interest is charged in the same man.
ner as explained in Instruction 4.
6. Joint retums--Allen spouss.-You
may file a joint return if both you and your
spouse are U.S. citizens and you both use
the same taxable year. If you file a joint w
turn complete separate Forms 2555 it each
of you has exempt earned income.
Married persons eligible to file a joint
return under these rules may do so even
If one of them has exempt earned income
and the other does not.
profits from the trade or business.
S. Bona fide residence (sec. 911(a)(1)
Internal Revenue Code)-
(&) Goneral-4f you am a bona fide
resident of a foreign country or countries
for an uninterrupted period which Includes
an entire testable year, you can, subject to
the rules in Instruction 10, exclude up to
$15,000 of your earned Income from per.
senal services randered abroad for each
taxable year. Sea Instniction 10(g) for
special rules for employees of qualified
U.S. charitable organization&
(b) Determination of residence-No
specific rule can be stated for determining
whether you am a bona fide resident of a
foreign country, because the determination
involves your intention as to the length and
nature of your stay. Your intention to
establish a bona fide residence In a foreign
country may be evidenced by words and
acts. If these conflict. mom emphasis will
be placed on acts than words. Generally,
if you go to a foreign country for a definite
purpose of a temporary nature and return
to the U.S. after that purpose has been
accomplished. you are not a bona fide real.
dent of the foreign country. However, if
Generally. you may not file a joint return
if either you or your spouse was a nonresi.
dent alien at any time during the taxable
year (for exceptions am "Special Election
for Aliens" on page 6 of For. 1040 Instructlomi).
Howinrer you may claim an
exemption for a nonresident alien spouse
who had no gross income from U.S
sources and was not the dependent oi
another taxpayer.
Fo! taxable years beginning sit" 1976,
certain community property laws do not
apply for income tax purposes in the case
of a citizen or resident of the U.S. who is
married to a nonresident alien individual,
and who has community income for the
taxable year, if they do not elect to file a
joint return. Detailed information may be
found in Publication 54, Tax Guide for U.S.
Citize.. Abroad.
7. Earned Incarn-Earned Income from
sources outside the U.S. rosons wages,
salaries, professional fees, and other compensation
for personal services actually
rendered. It don not include compensation
for personal sc~lces to a corporation
that consists of a distribution of earnings
or profits rather than a reasonable allow~
once as compensation for the personal
services. It does not include dividends.
capital gains, interest, etc.
Income earned abroad which is received
outside of the country in which earned Is
ineligible for the exclusion if one of the pur.
poses of receiving such income outside of
the country is to avoid tax in that country.
accomplishing the purpose requires an
"tended and indefinite stay, and you thers'
fore make your home in the foreign country,
you may be a bona ficto resident of the
foreign country for Federal Income tax
purposes.
(c) Statement of nonresidence.-If you
made a statement to the authorities of a
foreign country in which you have earned
income that you are not a resident of that
country, and you he" been held not sub.
ject to its income tax, you will not be con.
sidered a bona fide resident of that foreign
country. If y" made such a statement and
a determination is being made as to bath.
er you quality as a bona fide foreign resi.
dent. provided no adverse determination
has been made by the authorities of the
foreign country on your nonresidence status,
You will be considered not subject to
the income tax of that foreign country.
(d) Treatment of noncash mmunem.
tion.-If you qualify as a bona fide hall.
dent and received noncesh reaturuiration
in the form of a right to use property or
facilities (such as a home or car), it will be
taxable in the same manner as any other
compensation, subject to the $15,000 or
$20.000 exclusion.
(a) Definitions.-
(I) Entire taxable yea-ff you use
the calendar year as your taxable year, your
entire taxable year is the period beginning
January 1 and ending December 31.
(Coniinu,,d m iiiiiis 4)
F.mr, 2555 (R- 12-77)
(it) Uninterrupted period.-The term
tinintennipted 0 U period in (a), above, refers
citizen's bona fide residence and
not to -Si his or her physical presence In the
foreign country.
9. Physical presence (~ 911(a)(2)
Internal Revenue Coda)~
(a) General.-If you am physically pres.
ent in a foreign country or countries for a
total of at least 510 days my period
of 18 consecutive months, during you can, subject
to the rules in Instruction 10, "elude up to
$15,000 of your earned for each
taxable year. You can do Income th%is Provided the
earned Income is for perse services per.
formed outside the U.S. and is attributable
to the 18-month period. Sao Instruction
10(g) for special ruin far employ of
qualified U.S. charitable of organizations.
(b) Determination 18-month period
and application of 510-day oule.-In figur-
Ing the minimum of 510 full days' pres.
ones In any foreign counto7or countries,
add all separate periods a presence dur.
Ing the 18-month period. The 510 full days
need not be consecutive. but may be In.
terrapted by periods during which you am
traveling over International waters or ane
otherwise not Present in a foreign country.
(For additional Information and examples.
see Publication 54.)
(c) Definition of a full day.-Full day
mew. a period of 24 consecutive hours
beginning at midnight
20. Special rulas that apply to boms fids
residence and physical presiance,
(a) Rule of attribution.-In general. a
taxpayer receives samed !ncom, In the
mine taxable year he or she perfomns
sonal services. This tax.b;. year is usedper to
determine the exemption under the bona
fide residence and physical presence tests,
A taxpayer may receive..
in one taxable year for personal services Income
performed in another. Under the rule of
allribution, this earned Income is consid.
ered as received in the taxable year In
which the personal services am performed.
Howerivir. to be exempt, samed Income
must be received before the close of the
taxable year following the year in which the
services are performed. For example, if a
cash basis taxpayer received $3,000 In
977 for services performed in 1976 he or
he would mentalities is not exempt from tax under
the bona fide residence or physical prescries
tests. This Includes pay received train
our Armed Forces' post exchanges, officers'
and enlisted men's clubs and messes, mothin
picture services. and similarly
organized activities under the other ' jurisdiction
of the Armed Fames, even though they may
be supported by nonappropriated funds.
(c) Accrual of exemption.-A U.S. citizen
becomes entitled to the "emption on
a daily basis ~ghgoo' thus taxable year.
The number of Pro d. be ad in figuring
the exemption is the number of days In the
taxable year for which the exemption Is
claimed
include this $3,000 as 1976
.1 1 the amount
of exemption. If exempt the would
be excluded from his or h r 'o Income In
reported 1977. Any amount not axe must be
on Form 1040.
amount This rule applies only in determining the
of the exemption and does not
affect the reporting time of any amounts
not exempt In no case can amounts be
attributed to any year In which the sairr.
less performed am Insubstantial. (For additional
Information. see Publication Service54 office or
contact any Internal Revenue
or representative.)
(b) Treatment of amounts paid by U.S.
Government, etc.-Eamed Income paid to
U.S. citizens by the U.S. or any of Its Instru.
.
(d) Treatment of pensions or annulties.-In
general earned Income received
as pensions or annuities Is not exempt if
attributable to employer contributions
made after December 31, 1962, for services
rendered outside the U.S. after that date.
(Fqr miss on the allocation of am I a
contributions un=drsection prefunded f7 - on or
annuity plans,
1.7 the
Income Tax Regulations. For miss on a
treatment of pensions or annuities ah,
under unfunded plans, see lon
1.911-1(c) and 1.911-2(d)(5)
Regulations.)
(a) Treatment of deductions. I th:
any expenses, losses, or items otherwise
deductible (except deductions allowed for
personal exemptions) that are properly allo.
cable to or chargeable against earned In.
come exempt train tax under the bom fide
residence or physical presence tests. In
figuring your taxable Income. If expermses
Incurred for services performed abroad me
:ttribumble to both exempt and nonexempt
amed attach a statement show,
Ing the income. amounts attributable both for In.
come Items on lines 11, 13, to24, and 15.
Prorate such expenses. based on the ratio
that your exempt earned Income beam to
your total earned income for servions parformed
abroad. Do not claim expenses
allocable to exempt income.
(f) Definitim of foreign country.-The
Eumpte: You aerked In London for a U~S.
charitable organization and also tar an American
busirm employer. You racelved $10,000 for your
charitable serricts and $15,000 fram your services
for the American bashest company. Your IIII)AW
compensation train the charitable employer is
sheltered by the $MAW excinkin. and this
$10 000 excluslim militant the $15,000 excluskin
for ' noncharittable foreign settled Income la
$5,000
2. Definition.-For purposes of this
exclusion, the term 11 ,1= Iffled cIta ritatila
services" means so performed by
on employee for an employer created or
organized In the United States, or under
the law of the United States, arry State.
or the District of Columbia, which masts
the requirements of section 501(c)(3) of
the Internal Revenue Code.
11. Amounts attributable to servion
=~40;1 _ on orr before Decamnlaw 31.
lived
December 37u 19=620 for samnlenunt afte'd
an or before that d;te. you my=
term foreign country means territory under
the sovereignty of a government other than
that of the U.S. and Includes the air space
over the territory. It does net Include U.S.
possessions.
(g) Employees of U.S. charitable.organi.
utions.-If you perform qualified chartta,
ble services during any taxable year, the
amount of earned Income attributable to
such services excluded train your gross;
Income for the taxable year shall not exceed
$20,000.
1. Special rule-if you perform
qualified charitable senrlices and other
services during any taxable year, the
:mount of the earned Income attributhis
to such other services excluded
from your gross Income for the taxable
qr shall not exceed $15,000 reduced
the amount of the earned income
attributable to qualified charitable seeni,
Ices excluded from gross Income for the
taxable year.
to
exclude it from your gross Income on the
ground Me that a0I ht to race,.-
I rch 12, 1 . Such a riot (whether
orfeltable or nonfirialtable) is con2ldered
to exist on March 12, 196Z If It Is In a contract.
atimernent, plan. or provision of fair.
sign low In force on March 12, 1962. (For
more Information, ses section 1.911-1(c)
of the Income Tax Regulations or ca
any Internal Revenue Service office to' W
representative.)
12. Computation of heic~
(a) If for arry taxable year an Individual
has earned Income which Is excluded from
gross Income under section 911(a). the
tax Imposed by section 1 of section 1201
shall be the neon ot
(I) the tax Imposed by section I or
section 1201 (whichever Is applicable) an
the amount of not taxable Income, mar
(it) the tax Imposed by section I or
section 1201 (whichever Is applicable) on
the sum of the amount of not excluded
earned income, and the zero bracket
amount.
(b) Deflattions.-For purposes of sm.
tion 911:
(I) the term "not taxable Income'
means an amount equal to the sum of the
amount of taxable Income for the taxable
year Plus the amount of net excluded
earned Income of such Individual for such
taxable year and
(it) the term "nat excluded earned
Income" means the mean of the
of earned Income excluded under amount section
911 (a) for the taxable year over the
of the deductions disallowed with amamt respect
to such excluded earned Income for such
taxable year under section 911 (a).
All taxpayers claiming exemption of In.
come earned abroad am to complete Part
IV to figure the tax that 13 to be entered
on Schedule TC, Part 1, line 4, However, It
you and your= file a JoInt.rturn and
you both co, this arm triplets
only me Form 2555, Part FV. Use com,
bined amounts on lines 20 through 30.
Fes- 4
C70-435-147-4
4
0

-_4625 1
Computation of Minimum Tax
I.,...I Ame... S.M.
0- Attach to Form 1040
%77
onams", 0
Nam e(s).as Shown an Form 1040 Yaw soa~lal sacx~rfti number
.1 Tax Preference Items.
I File this form if the total of tax preference items (line 2) is more than $10,000 ($5 0 if married
ng separately) even though you me no minimum tax, OR if you have any minimum '00 tax ity
deferr from a prior taxable year until this year. If this is ataxshort period return, see I ristructions fia bi,
for line ed8*,Caution:
See "Limitations on amounts treated as
in instructions.
preference items in certain cases"
(a) Adjusted itemized deductions . . . . . . . . . . . . . . . . . ... . . ........................ ..... .
(b) Accelerated depreciation on real property:
(1) Low-income rental housing under section 167(k) . . . . . . . . . . . . . .. -----------------_--------
(2) Other property
-------
..... .......
(c) Acceleratedmal depreciation on personal property subject to a lease . . . . . . . . . . ..................... _------- -------
(d) Amortization of certified pollution control facilities . . . . . . . . . . . . . . ............................... .......
(a) Amortization of railroad rolling stock . . ... . . . . . . . . . . . . . . ..- ------------------------ --- --------
(f) Amortization of on-the-job training facilities . . . . . . . . . . . . . . . . _ .............
(g) Amortization of child care'facilities . . . . . . . . . . . . . . . . . . . ..................... . . .. . .
(h) Reserves for losses on bad debts of financial institutions . . . . . . . . . . . . ...
(i) Stock options . . . . . . . ... . . . ... . . . . .. . . . . . .
(j) Depletion . . . . . . . . . . . . . . . . . . . : - - - - - - - .......------------------------ ---------------------------- - -------
(it) Capital gains . . . . . . . . . . . . . . . . . . . .
1) Intangible drilling costs . . . ... . . . . . . .
- ---------11 -------------------- -------
-2 Total tax prearence items (add lines 1(a) through 1(l)) - - - - - - - - - - - - - - -------------------------------- -------
3 Amount from ~orm 1040, line 47 . . . . . . . . . .. 7 - ------------------------------- ------
4 Tax from recomputing prior-year investment I credit . . . . . ................ __ ---------- -------
5 ~ax from recomputing prior-year Work Incentive (WIN) credit . . ............. ................. .......
Tax 99 premature radialrption of. Individual Retirement Bond(s) ........
7 Adcl~ines3t~rough,6_ ' a
8 Enter the larger of: (a) one~-half of the amount on line 7, or (b) $10,000 ($5.000 if married filing
separately) . . . ' . . . . . ... . . . . . . . . .
.
. . . . . . . .
9 Subtract line 8 from line 2 (if zero or less, enter zero) . . . . . . . . . . . . . . .
----------- -------
10 Multiply amount on line 9 by 15% and enter result --------------- -------
11 Enter amounit of any.1~77 net operating loss carryover . . . to. 1978 . .
I
tach stater~ent showing computation) .
(at- . I...............................
12 Multiply amount on line 11 by 15% and . enter . result . . . . . %
L_ .
13 Deferred minimum ta-riter amount from line 10 or line 12, whichever is smaller . . . . . .
14 Minimum Tax. Subtract line 13 from line 10 . . . . . . . . . . . . . . . . . . .............................. ........
15 Enter minimum tax deferred from prior year(s) until this year (attach statement showing coputation)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
167 Total minimum tax. Add lines 14 and 15 . . . . . . . . . . . ... . .
1 Is Excess tax credits. See instructions for line 17 before completing this section. If Form 1040, line 47 ------------------------------ ------greater
than zero this section will not apply; omit lines 17(a) through 18 and enter the amount
from line 16 on line 19.
(a) (b) Credit for the elderly . . . . . . . . . . . . . .
Credit for political contributions . . . . . . . ........................ ----- -------
(c) Credit for child care expenses . . . .
------------------------------- -------
18 Add lines, 17 (a)
.
.
through 17(c) . . . . . . . . . . . . . . . . . . .
19 Subtract line 18 from line 16. Enter here and on Form 1040, line 49
;0,- in~Wd, ,y is, i,n,xr-d'und,, esic. 402(0 (,rd1na,y in-me pertion wlump~.,um ditributi,ns) r any partial fee under see. 667 (ac-mul,11i-ibuti.,
by -t,r). or any mna ty tax under e,. 72(m)(5).
Form 4625 u977)
,
Instructions
(Section references are to the friterrid 7evue
Code unless otherwise speci a .
If: Who Must File.-You must file this form
(1) you have tax preference items in
excess of $10,000 ($5,000 if married filing
separately) even if you owe no mini mum
tax, or (2) if you have any minimum tax
liabill hisdeferred from a prior taxable year
year. If this is a short period return
nt as the note in instructions for line 8.
Line I-Tax Preference Items-
(a) Adjusted itemized
(Applicable only if you itemizeeld'ellon%ins -
on Schedule A (Form 1040)).
The amount to be entered should be
determined as follows:
step I-Subtract from your total itemized
deductions (fine 39, Schedule A, Form
(1) Meclical~ and dental expenses (line
10. Schedule A, Form 1040) -
(2) Casualty and theft losses (line 29,
Schedule A, Form 1040).
(3) Any deduction allowable under Sec.
tion 691(c).
Step 2~Multiply your adjusted gross income
(line 31, Form 1040) by 60%.
Step 3-Subtract the amount determined
in Step 2 from the lesser of Your adjusted
gross income or the amount determined
in Step 1.
(b) Accelerated
propertydepreciation
on real
(1) 1- 1ncome
section 167
rental housing under
A
(2) Other real property
Enter on the appropriate line(s) the ex.
Cass a! depreciation allowable over the depreciation
that would have been allowable
if the straight line method had been used.
You must compute this excess on a prop.
erty by property basis.
Note: If you amortized certain rehobili.
ta,ion expenditures for section 1250 prop.
erty over , 5,yeir, period, en!er on ~ihe
1(b)(1) the amount by which this amortize.
tion exceeds straight-line depreciation over
the improvement's normal useful life.
(c) Accelerated depreciation on personal
property subject to a leasts-Enter the ex.
cess of depreciation allowable over the de.
preciation if that would have been allowable
the straight-line method he d been used,
determined without regard to the Class
Life Asset Depreciation Range (CLADR)
variance in useful life. Th is excess must be
computed on a property by property basis.
(d) Amortization of certified pollution
control facilities,
(e) Amortization of railroad rolling
stock,
M Amortization of on-the-job training
facilities, and
(g) Amortization of child care facil.
iti-s'-For items (d), (a), (f) and (g) with
respect to each certified pollution control
facility, unit. of railroad rolling stock, on.
the-job training facility, and child care facility,
enter the amount by which the amor.
tization allowable exceeds the depreciation
deduction otherwise allowable.
(h) Resemes for losses on bad debts of
financial institutions.-Enter your share of
the excess of.the addition to reserve for
bad debts over the reasonable addition to
the r serve for bad debts that would have
been e. allowable if the bad debt reserve had
been maintained forall taxable years an !he
basis of actual experience. See section
57(a)(7).
(I) Stock options.-If you received
Stock pursuant to the exercise of a quail-
422(b)) fied stock option (as defined in section
or a restricted stock option (as
defined in section 424(b)), enter the
amount by ich the fair market value of
the shares at witthe time of exercise exceeds
the option price.
(1) Depletion.-Enter any excess of do.
duction for depletion allowable under section
611 over the adjusted basis of the
p!operty at the end of the year (determined
without regard to depletion deduction for
the taxable year). You must compute this
excess on a property by property basis.
(it) Capital gain-Enter the amount
from:
(1) Schedule D (Form 1040), line 15a;
(2) Form 1040, line 15 if you report
only capital gain distributions; or
(3) Form 4798, Part 1, line Be if you
report a pm.19 70 capital IOSS carryover.
(pbinlaingible drilling costs.-Excess intangi
a drilling costs are a tax preference
item only to the extent that they exceed
your net I ncome from oil and gas propertics
,
Excess intangible drilling costs are the
amount by which the allowable intangible
drilling and development costs (other than
costs incurred in drilling a nonproductive
well) exceed the amount that would have
been allowable if such Coats had been capitalized
and then (unless you make an election
under section 57(d)(2)) amortized
over a 120 month period beginning with
the month production first began.
The net income from oil and gas properties
is the gross income from oil and gas
properties less the deductions al locable to
such properties except for excess Intangible
drilling costs.
Limitations on Amounts Treated as Tax
Preference Items in Certain Cases.-See'
proposed Income Tax Regulations section
1,57-4 for limitations on amounts treated
a tax preference items in certain cases
re the item of tax preference resulted
whit in no tax benefit. If limitations apply, attach
a schedule shming computation.
Partners; Beneficiaries of Estates and
Trusts, etc.-You, as a partner, must take
into account separately your distributive
Share of items of income and deductions
which enter into the computation of tax
preference items. If vou are a partner and
have elected the optional adjustment
basis (see section 743), adjust the ppica. to
ble tax preference items to reflect the
shareholder of an electing small busi.
ness corporation, see sec. 58(d);
participant In a common trust fund,
see sec. 58(e);
shareholder or holder of beneficial
interest in a regulated investm:mt
company or a real estate Investm I
trust, see sec. 58(t).
If you have tax preferences attributable
to foreign sources, see sec. 58(g).
Line B-Adjustment In Exclusion for
Computing Minimum Tax for Tax Prefer.
ences for Short Period Retums._If this re-
turn is us is for ra
short period. a special formula
exclus sed to determining the adjustment in
ion for computing the minimum tax
for tax preferences. See section 443(d).
However, if you are married filing Sep.
arately, substitute $5,000 for $10.000.
Note: If line 2 is.more than either the
adjusted exclusion or $JO,00O ($5,000
married filing separately), file this formit
even though you owe no minimum t3x.
Line 11-1977 Not Operating Loss Car.
rycater to 1978.-Under certain conditions,
part or all of the amount shown on line
1 0 may be deferred to a subsequent year.
see section 56(b).
Line 15-Minimum Tax Deferred from
Prior Year(s).-If a net operating loss carryover
from a prior year(s) reduces taxable
income for 1977. and the net operating
loss giving rise to the carryover resulted in
the deferral of minimum tax in that prior
year(a), all or part of the deferred minimum
tax may be includible on line 15 as tax
bility for 1977. The-deferred minimum
,is tax should be computed at the rate in ef-
fect fortheyearofthe loss (15% for 1976;
10% for 1975 and prior years).
The deferred minimum tax is to be in.
cluded on line 15 to the extent the portion
of the net operating loss canyover attribut.
able to the deferred minimum tax reduces
taxable income,for 1977. For purposest of
computing the amount attributable.
portion of the net operating loss carried
over that is not attributable to the deferred
mimmuni tax has priority and is applied
in reducing the 1977 taxable income before
the portion of the carryover that is attribut.
able to the deferred minimum tax. See
section 56(b).
Line 17-Excess Tax Credils.-If Form
1040, line 47 is zero, you may be able to
claim any unused portion of the tredit
against your minimum tax. The credits or:
a Polled in the order listed on Form 4625,
first to the tax on Schedule TC, Form 1040,
Part 1, line 4 and then to the minimum tax
on Form 4625, line 16. For example, it the
a mount on Form 1040 line 47 is zero after
applying the credit for the Ilderly and a
portion t,ons toof the credit for political contribu.
which you are entitled, the balance
the
of
credit for political contribu.
election.
lons and credit for child care expenses to
which the you am entitled can be applied to
extent of the minimum ta x on Form
4625. line 16. Enter on lines 17(a) through
17(c), only that portion of the credit(s)
If you are a: that is used to reduce the minimum tax.
beneficiary of an estate or trust, see Do not reduce the minimum tax below
sec. 58(c); zero.
he

.4726
DWd-d e~T-y
W-W R_ S-1-
Maximum Tax on Personal Service Income
11- Attach to Form 1040 (or Form 1041).
1
an
Name(s) as shown on Form 1040 (or Form 1041)
Identifying number
Do not complete this form If-(a) Taxable Income or personal service taxable Income Is:
$40,200 or less, and on Form 1040, you chocked box I or box 4,
$55.200 or less, and on Form 1040, you Checked box 2 or box 5,
$26,ODO or less ard this is an Estate or Trust return (Form 1041);
(b) You elected income averaging; or
(c) On Form 1040, you checked box 3.
A--Personal Service Income
B-4)eductions Against Personal Service Income
-------------------------------------------------------------
.....................................................................
---------------------------- -............... I .......
------------------------------------------- --_-----------
----------------------------- I...........I ........... ---- ---------------- ------------------------------------------------
-------------------------------------------------------------. ............. ----------- ----------------------------------------------
-------------------- ................. .....- ---------------------------------- - ......... ....................
-.....--- ------------------------------------------------ ---------- ------------------------------------- _......... ..........
Total personal service income . . . . .
I Total deductions against personal service income.
I Personal service net inwme--Subtract total . amount in column B from total amount In column A. . 1
2 Enter your adjusted gross income . . . . ... . . . . . . . . . . . . . . . 2
3 Divide the amount on line I by the amount on line 2. Enter percentage result here, but not more than
100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Enter your taxable income . . . . . . . . . . . . . : . . . . . . . . . . 4
5 Multiply the amount on line 4 by the percentage on line 3 . . . . . . . . . . . . . . 5
6 Enter the total of your 1977 tax preference items . . . . . . . . . . . . . . . . . 6
7 Personal service taxable income. Subtract line 6 from line 5 (see instructions) 1
. . . . . . . 7
-7
8 If: on Form 1040, you checked box I or box 4, enter $40,200 . . . .
on Form 1040, you checked box 2 or box 5, enter $55,XO . . . . . . . . . . . .
Estate or Trust, enter $26,000 . . . . . . . . . . . . .
9 Subtract line 8 from line 7 (if zem or less, do not complete rest of form) . . . . . . . . . 9
20 Enter 50% of line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Tax on amount on line 4 (use Tax Rate Schedule from Form ID40 (or Form.
1041) instructions) . . . . . . . . . . . . . . . . 11
12 Tax on amount on line 7 (Me Tax Rate Schedule from Form 1040 (or Form.
1041) instructions) . . . . . . . . . . . . . . . . 12
13 Subtract line 12 from line 11 . . . . . . . . . . . . . . . . . . . . . . . 3
24 If the amount on line 8 is: $40,200, enter $13,290 ($12,240 if unmarried head of household) . .
$55,200, enter $18,060 . ... . . . . . . . . . . . . 14
$26,000, enter $9,030 . . . . . . . . . . . . . . . . 1
15 Add lines 10, 13. and 14. This is your maximum tax. (See instructions) . . . . . . . . 25
Computation of Alternative Tax
26 Amount from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 26
27 Amount from Schedule D (Form 1040), line 15(a)* (or Form 1041, page 1, line 22) . . . . . . 17
18 Subtract line 17 from line 16 . . . .
. . . . . . . . . . . . is
If line 17 does not exCeed $25,ODO, check here . . 10. and . . omit . lines 19 through 22.
19 Enter amount from line IS plus $25,ODO . . . . . . . . . . . . . . . . . . . 19
20 Enter amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Tax on amofint on line 19 (use Tax Rate Schedule from Form 1040 (or 1041) Instructions) . . . . 21
22 Subtract line 21 from line 20 . . . . . . . . . . . . . . . . . . . . . . . 22
23 Tax on amount on line 18 (use Tax Rate Schedule from Form 1040 (or 1041) Instructions) . . . . 23
24 Subtract line 23 from line 11 . . . . . . . . . . . . . . . . . . . . . . . 24
25 Subtract line 24 from line 15
25
26 If the,block online 18 is checked, enter 50% f line 17; otherwise, enter $12,500 . . . . . . . 26
27 Alternative tax, add lines 22 (if applicable), 25 and 26. (See instructions) . . . . . . . . . . 27
* If you reported capital gain distributions but did not use Schedule D (Form 1040), enter on line 17 the amount shon on Form
1040, line 15.
235-466-1 Farm 4726 (1977)
1
Instmcrions
(Section references are to the Internal Revenue Code unless otherwise Specified)
Column A-Personall Service Income-Enter
In the Ces provided all
payment received from a partnership.
An Item of gross Income In respect of a -
(3) Deductions allowable to amployare
for their contributions to quali-
your personal service Income as shown decedent shall be treated as. personal fied pension, annuity, or bond pur-
on Form 1040 or Form 1041. Personal service Income In the hands of the bene. chase plans,
service Income generally means wages, ficiary If such gross Income would have (4) Allowable deductions for moving
salaries, professional fees, bonuses, constituted personal service Income of expenses,
commissions on sales or on insurance the decedent had he or she lived and re- (5) Deductions allowable to an Indi.
premiums, tips, and other amounts re- ceived such amount. vidual Who 13 a 3hareholder-emceived
as compensation for personal If you are a nonresident alien, per. ployee of an electing small busi.
services actually rendered. It Includes sonal service income includes only In. ness corporation for the excess of
prizes and awards (other than gambling come from sources within the United amounts Included In gross Income
winnings), taxable pensions or annu- States that Is effectively connected with due to overpayment on his or her
ities (if there is a connection With earn- the conduct of a trade or business In the behalf by a corporation to a quali-
Ing income from past personal services), United States. It does not Include income fied pension plan over amounts
and group-term life insurance purchased subject to 30 percent tax under Section not received as benefits, and
for employees that are includible in gross 871(a)(1)(A). (6)* A net operating loss deduction to
Income. It also Includes property received Personal service income does not In. the extent that the not operating
for performance of services and trans- clude dividends (including undistributed losses carried to the taxable year
ferred to another individual.
taxable Income from an electing Small are properfy allocable to or
If you perform personal services for
a corporation, personal service income
generally means only that portion of income
received from the corporation that
represents a reasonable allowance for
salaries and other compensation for per.
sonal services actually rendered. It also
Includes gains (other than capital gains)
and net earnings derived from the sale
or other disposition of the transfer ofany
Interest In, or the licensing of the use of,
property (other than goodwill) If your
personal efforts created the property.
The entire amount you receive for per-
Business Corporation), other distribu.
tions of corporate earnings and profits,
gambling gains, or gains treated as capital
gains.
Personal service Income does not include
premature or excess distributions
from a qualified employees pension plan
under Section 72(m)(5), nor does it Include
lump-sum distributions from pen.
sion etc. plans taxed under Sections 402
(a)(2), 402(e) and 403(a)(2).
Personal service
chargeable.against personal serv.
Ice Income.
forming professional services, such as
those of a doctor, dentist, lawyer, archi.
tect, or accountant, will be treated as personal
service income if you are Individ.
ually and personally responsible for the
services performed, even though you em.
ploy assistants to perform all or part of
the services.
If you are engaged In a noncorporate
trade or business in which both personal
services and capital are material Income
producing factors, a reasonable allow.
ance as compensation for the personal
services actually rendered shall be con.
sidered personal service income from
such trade or business. However, the total
amount may not exceed 30 percent of
your share of the net profits of such trade
or business Including any guaranteed
income also does not
Include certain distributions from Indi.
vidual Retirement Accounts described in
Sections 408(e)(2), (3), (4), (5) and
Line 6-The tax preference Items to
take Into consideration for purposes of
this form are the same as those required
for computation of minimum tax whether
or not you are actually liable for such tax.
Line 7-4-orsonal Service Taxable Income.-Personal
service taxable income
means the excess of the portion of taxable
income attributable to personal saw.
ice not income over the total tax preference
Items.
Lines 15 and 27-Enter your maxi-
408(f) nor redemption of Retirement
Bonds Includible in Income under Sec.
tion 409(b) or (c).
Column 0--Deductions Against Per.
sonal Service Income-Enter In the
spaces provided any deductions from
gross income that are required to be
taken into account In determining ad.
justed gross Income and are properly
allocable to or chargeable against per.
sonal service income such as:
(1) Deductions attributable to a trade
or business from which personal
$a ice Income Is or may be
derived,
(2) Expenses paid or incurred In con.
nectiori with the performance of
services as an employee,
mum tax on Schedule TC, Form 1040,
Part 1, line 4 (or Form 1041, line 26).
However, if yod had not long-term capital
gain in excess of net short-term capital
plate lines 16 to 27 and enter
:On:ta's`dO`7he result from line 27 on the
appropriate line.
Short Period Rotuma-If you are re.
quired to make a return of less than
twelve months, your tax Is determined
by placing your taxable Income, personal
service net Income, adjusted gross Income,
and items of tax preference on an
annual basis. However, If a short period
return is required due to a termination
of taxable yearfor purposes Cie jeopardy
assessment, maximum tax computation
shall not apply unless the taxable year 13
reopened.
235-166-2

Carryover of Pre-1970 Capital Losses
For, 4798 (Computations of Capital Loss Carryovers and Summary of Capital
o-aiu-inn uu.na. at s__ n Gains and Losses if Pre-1970 Capital Losses are Carried to 1977.) 1@77
0- Attach to Form 1040.
N-14) 11 an,.. In Form INO S-1 .."i
Instructions
C. Part 1. Line 22 or 37-If there is a loss and , gain on Ihe line :
capit., rnimr del in III: intl-h-, for
1.
Par,
line
or
22
17, enter the A. Who Should File.-Use
, ,d Iiui o red. e ~y 'he
this form only if you ha,e a preS 1 970 ,
o
los
loss carryo,er to 1977 as indicated in the Note on you, 19,7
in unt of the gain. If the gain exceeds the loss enter
~Fo,m 1040). 7 page 2. If you do haw, 040) a. p, l'naI51970 capital loss caryo-, fill , x.
rolir there is a loss and no gain, just enter the loss.
n your 19 '7 Schedule D (Form 1 I through 13 to report capital . riod Taxpayers Filing Separate Rarturni you are.married
sins and losses for the current Year and any p,,I*I111 - W loss carry. &-it Ming , sepauate return the limitation for Part 1. line 281, i,,$1,000,
ove- a then Pi
_
in
'98. Part 1. Use 'an I to I
I
~ceel 4 ' i'urecombinapl
t a 1 increased by arnount, attributable to pre.1970
slhon~term and long term
.
loss f or carryow, f rn I l o I'178 for pre-1970 losses o r i
e-1970 and posVI969 losses.
capital loss components, but the combined total may not e,ce,d . $2,000.
0 B. Part 1. Lin. It there is a loss in Part 1, hne 2, complete Part 1. Section B. if there is a
19 a ce 34-If there P is a gain and a N., on the lines
m nfloned in the instructions for art 1, tine 19 or 34, 10 5
gain loss in Part 1. line 5. complete Pan 1, lines 14 through 22 (assuming lines
'educed If 'he'. by the amount of the loss. It the loss exceeds the pin enter zero. 10 through 26 Wre not otherwise required to be completed), ignoring the
is a gain and no loss, enter the gain. not, unit,, line 14.
~ _Sapilal
Gains and losses
Section A.-Summary of Capital Gains and Losses
F I Amount from your 197 7 Schedule,D (form 1040), Part 1, fine
r 2 Pre-1970 short-term capital loss carryover to 19 77 (see Note
J~ is
ch
on your 1916 Schedule D (Form 1040), page 2) . . .
3 Net short-ternfIgain or (loss), ~ombine lines I,and 2 . .
4 Amount from your 1977 Schedule D (Form 1040), Part 11, line . 13
.
.
.
. .
2
.
4
. . . . . . . . . 3
5 Pre-1970 long-term capItai loss carryover Ito 1977 (see - -N.;.
an your 1976 Schedule 0 (Form 1040), page 2) . .
13
. . 5
6- Net long-term gain or (loss), combine lines 4 and 5 . . . . . . . .. . . . . . . Curnbine lines 3 and 6 and enter the iret gain or (loss) here .
If line 7 shows a gain-
. . . . . . . . . . . . .
6
7
a line 6 or 50% of line 7. whichever is smaller.,(See
I
Enter 50-~:of .
Schedule 0 (Form 1040) Part
IV, for computatior;of alternative tax~.) inter zero if there is a loss or no entry on line 6 . . . 811
b Subtract line Ba from line 7. Enter here and on Form 1040, line 14 . . . . . . . . . falls
9 If line 7 shows a low~lf losses are shown on SOTH*Iines 5 and IS, OMIT line 9 and go to line 10:
Otherwise, enter one of the following a . mounts:
ab iff , line3iszerooranetgain,enter.50%otline7;
ine 6 is zero or a net gain; enter amount from line 7: or
c If line 3 and line 6 are net losses. enter amount on line 3 added to 50% of amount on line 6. 9
Note: If there is an entry on line 9 1 , skip lines 10 1hrouigh 26 and go to line 27.
10 Enter loss from lini 3; if line 3 is zero or a gain. enter zero . . . 10
11 Enter loss from line 6 .
. . . .
12 EAter gain, if any, from line S, it line,3 is zero or a loss, enter zero
. .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
21
22
13 Reduce loss on line 11 to the ..t.*.t of the gain, it any, on line 12 . . . . . . 13
14 Cohni amounts on 19~7 Schedule D (Form 1040),. lines 3 and
11 and if gain, enter gain; if zero or a loss, enter zero
Note: It the entry on line J4 is zero, ship lines 15 through 21 and
enter on line22 thisiciss shown on lines.
24
15 Enter gain, if any. from 1977 Schedule D (Form 1940), fina 11 15
16 Enter smaller of amount on line 14 or line 15 26
17 Enter excess of gain on line 14 over amount on line 16 . . . . 17
18 Enter loss from line 2; if line 2 is blank, enter zero . . . . . 18
19 Reduce gain, if any, on fine 17 to the extent offtow, if any, on fine
18 (see instruction 8) . . ... . . . . . . . . . . . 19
20 Enter loss from line 5 . . . . . . . . . . . . . . 20
22 Add the gain(s) on line(s) 16 and 19 . . . . . . . . . . 21
22 Reduce the loss on line 20 to the extent of any gain on line 21 (see Instruction C) . . . . . 22
23 Enter smaller of amount on line 22 or line 13 (if line 22 is-zero, enter zero) . . . . . . . 23
24 Subtract amount on line 23 from the loss on line 13 . . . . . . . . . . . . . . . 24
25 EnterIi5 0%
of the amount on line 24 . . . . . . . . . . . . . . . . . . . . 256
26 Add ties 10, 23, and 25 . . . . . . a . . . . . . . . ... . . . . .
27 Enter the amount on line 9 or line 26, whichever is pplicable . . 1 27
28 Enter here and enter as a (loss) on Form 1040, line 14, the smallest of"
Amount on line 27;
$2,000 (Married taxpayers filing separate returns see Instruction D): or
c Taxable lnco~ne, as adjusted (see lnstmction J in instructions for Schedule D (Form 1040)) . 28 1(
Form 4798 (1977) page 2
Section B.-Complate if You are Married Filing a Separate Return and Losses are Shown on Lines 2 AND 7 of Part I
29 Combine a amounts on 1977 Schedule D (Form 1040). lines 3 and 11 and if gain, enter gain; if zero
or loss, enter a zero . . . . . . . . . . 29
Note: It the entry on line 29 is zero, OMIT lines 30 through 36, and enter on line 37 the loss shown
on line 2.
30 Enter gain, if any, from 1977 Schedule D (Form 1040), line 3 . . . . . . . . . . . . 30
'31 Enter smaller of amount on line 29 , or line 30 . . . . .. . . . . . . . . . . . . 31
32 Enter excess of gain on line 29 oyet
amount on line 31 . . . . ... . . . . . . . . 32
33 Enter loss from line 5: if line 5 is blank, enter a zero . . . . . . . . . . . . . . . 33
34 Reduce the gain, if any, on line 32 to the extent of the loss, if any, on line 33 (see Instruction B 134
35 Enter loss from line 2 . . . . . . . . . . . . . . . 3,
36 Add the gain(s) on line(s) 31 and 34 . . . . . . . . . . . . . . . .
37 Reduce the loss on line 35 to the extent of the gain, if any, on line 36 (see Instmetio
JZ3M Pre-1970 and Post-1969 Capital Loss Carryovers from 1977 to 1978 (Complete this part if the amount
on Part 1, line 27, is larger than the loss deducted on your 1977 Form 10,40, ine 14.)
2 Enter loss shown in Part 1. line 3: if none, enter zero and skip lines 2 through 20-then go to
line 21 . . . . . . . . . . . ... . . . . . . . . . . . . . . . . I
2 Enter gain shown in Part 1, line 6. If that line is blank or shows a loss enter a zero . . . . . . 2
3 Reduce loss on line I to the extent of any gain on line 2 . . . . . . . . . . . . . . 3
Note: If Part 1, line 2 is blank. skip lines 4 through 11, enter a z ero on fine 12-then go to
line 13.
4 Combine lines 3 and 11 on your 1977 Schedule D (Form 1040).
Enter the gain; if zero or a loss. enter zero . . . . . . . . 4
Note: It line 4 is nro skip lines 5'through 11. enter on line 12
the loss from Part 1, line 2-then go to line 13.
5 Ente; any gain from y*our 1977 S . c . hedule D (Form 11340). line 3 . 5
6 Enter smaller of line 4 or 5 . . . . . . . . . . . . . 6
7 Enter excess of gain on line 4 over line 6 . . . . . . . . . 7
8 Enter loss from Part 1, line 5: otherwise. enter zero . . . . . a -
9 Reduce any gain on line ~ to the extent of any loss on line 8 . . . 9
16 Enter loss from Part 1, line 2: otherviise; enter zero . . . . . . 10
21 Add the gains on lines 6 and 9 . . .. . . . . . . . . . i~~
21
12 Reduce the loss on line 10 to the extent of any gain on line I I . . . . . . . . . . . -12
.
13 Pre-1970 short-term capital low (Enter smaller of line 3 or 12)
24 Short-term capital loss attributable to years beginning after 1969 (excess of line 3 over line 13) .
13
14 -7
15 Enter any loss from line 13. above ... . . . . . . . 156
.16 Enter loss deducted on your 1977 Form ID40, line 14
17 Pre-1970 short-term loss carryover to 1978 (excess of line 15 over line 16-if line 15 does not
18 exc : ed r line 16, enter zero) . . . . . . . . . . . . . . . . . . . . . . .
Ent any loss from line 14, above . . . . . . .
29 Enter excess of line 16 over line 15-if line 16 does not exceed . . ;I.. - I 'a I I-
.
15,. enter zero . . . . . . . . . . . . . . . . . 19 1
20 Post-1969 short-term low carryover to 1978 (excess of line IS over line 19-if line 18 does not
exceed line 19, enter zero) . . . . . . . . . . . . . . . . . . . . . 20
21 If you were required to complete Part 1, lines 10 through 26, an
any loss from Part 1, line 23; otherwise, enter zeno 21
22 Enter excess of line 19 over line 18-if line 19 doi I, ;in
18, enter zero . . . . . . . . . . . as. no.
22
(Note: It you,skipped lines 2 through 20 above, enter amount from y our 1977 Form 1040, line 14.)
23 Pre-1970 long-term loss carryover to 1978 (excess of line 21 over line 22-4f line 21 does not
exceed line 22, enter zero) . . . . . . . . . . . . . . . . . . . . . . . 23
24 If you were required to complete Part 1, lines 10 through. f, 2 :. , enter Par,
any loss from Part 1. line 24. Otherwise, enter any loss
1, line 6 . . . . . . . . : . . . . . .
24
25 Enter excess of line 22 over line 21 .........._ ................. X 2 * (if ' line*
22 does not exceed line 21, enter zero.) . . . . . . . . . 25
26 Post' 1969 long-term loss carryover to 1978 (excess of line 24 over line 2!
exceed line 25. enter zero) . . . . ... . . . . . . . . . . 26
!3 as
CIL
Z
CIL
a,
E

4952
Investment Interest Expense Deduction
.1:
. Triistuy
hux-11 P- sini.
1
jl~ See instruc ions on back.
10. Attach tto
return.
1
Name(s) as shown on return I Identifying number
Identify taxpayer
B77
. . . * E] Individual r] Estate El Trust
Interest ' on * * Investment . . Indebtedness * Incurred Prior to December 17, 1969
Note: Use part I only it you incurred investment interest attributable to the period prior to December 17, 1969, as well
as on or after that date.
I Enter investment interest expense from all sources incurred prior to December 17. 1969 and paid in. 1977
2 Total net Investment income from all sources . . . . . . . . . .
. .
Line. I . . . . .
3 Net investment income allocable to the period prior to December 17, 1969-
Line I + Line 9 + Line 20 + Line 33
.
Line 2 .
4 Subtract line 3 from line 2-Enter here and on line 12(a) . . . . . . . ... . . . . . . . .
lt~ Interest on Investment Indebtedness Incurred After September 10, 1975
5 Enter investment interest expense other than amounts reportable an lines 6 and 7 . . . . . . . .
Your pro-rata share of investment interest expense from partnerships . . . . . . . . . .. . . .
6I
Your pro-rata share of investment interest expense from sutichapter S corporations . . . . . . . .
8 Carryover-Enter inam
unt from 1976 Form 4952, line 11 . . . . . . . . . . . . . . . .
9 Total investment terest of expense (add lines 5 through 8) . . . . . . . . . . . . . . . .
10 (a) Individuals enter $10,000 ($5,000 if married filing separately) . . . . . .
(b) Additional limitation (see Instructions for line 10).. . . . . . . . . .
11 Estates enter $10,OOQ trusts enter zero . . . . . . . . . . . . .
12 (a) Total net Investment Income or line 4 (.a. . . instructions) . .1
(b)
Line 9
- X line Line 9 + Una 20 + Line N3
12(a) . . . . . . . . . . . .
13 Excess exp nses train "net lease property" (see General Instructions 2l and 3(d))
14 Limitation on deduction (add lines 10(a), (b), 11, 12(b) and 13) . . . . . . . . . . . . . .
15 Allowable investment interest deduction-Enter the lesser of line 9 or line 14 (see General Instruction 5) .
16 Disallowed Investment Interest to be carried mair to 1978. (if line 9 exceeds line 14, enter difference) .
1[~ _ Interest on Investment Indebtedness Incurred Prior to September 11. 1975, but after December 16, 1969
17 Enter Invntment Interest expense other than amounts reportable on lines 18 and 19 . . . . . . .
I Your pro~rzfta share of Irrvestment Interest expense from partnerships . . . . . . . . . . . . .
1:
Your pm-mta sham of Investment interest expense from sulachapter S corporations . . . . . . . .
20 Total Investment Interest expense (add lines 17 through 19) . . . . . . . . . . . . . . .
21 Individuals enter $25,000 ($12,500 if married filing separately) . . . . . . .
22 Estates enter $25,000; trusts enter zena . . . . . . . . . . . . . . .
23 Net investment Income Oine 12(a) less line 12(b)) . . . . . . . . . . .
24 Excess expenses from "net lease property" (see General Instructions 2(b) and 3(d)) .
25 Excess net long term capital gain over net short term capital loss (see instructions) .
26 Tentative limitation (add lines 21 through 25) . . . . . . . . . . . . . . . . . . . .
27 Enter capital gain from line 25. (Limit such gain to extent line 20 exceeds lines 21 through 24) .
28 Note: For adjustment of such gain on Schedule 0, see Schedule D instructions for return filed.
. . . .
Enter excess, If tiny, of interest on line 20 over amount on fine 26 . . . . . . . . . . . . . .
29 Additional deduction (50% of line 28) . . . . . . . . . . . . . . . . . . . . . .
30 Limitation an deduction (add lines 26 and 29) . . . . . . .
31 Allowable Investment interest deduction-Enter the lesser of line 20 . or line . . 30 . (see . General . . . Instruction . . . . 5) .
32 Disallowed investment interest to be carried over to 1978. (if line 20 exceeds line 30. enter difference) .
over From Prior Years-Incurred Prior to Septemb er 11, 1975
33 Carryover-Enter amounts from 1976 Form 4952, lines 27 and 36 . . . . . . . . . . . . .
34 Enter amount reportable on line 23 plus $25.000* . . . . . . . . . . .
35 Enter the larger of amount an line 20 or $25,0000 . . . . . . . . . . .
36 Excess, If any, of amount on line 34 war line 35 . . . . . . . . . . . .
37 Enter 50% of line 36 . . . . .
. . . .
38 Interest deduction limitation (enter the lesser . . of . lines . . 33 . or . 37) . (a" . General . . . Instruction . . . . 5) . . . . . .
39 Interest carryover train prior years disallowed In 1977 (excess, if any, of line 33 over line 38) . . . . .
40 Enter the 50% capital gain deduction claimed on your 1977 Schedule D . . . . . . . . . . .
41 Interest carryover to 1978 (subtract line 40 from line 39) . . . . . . . . ... . . . . . . ..
-1l it-rdd filing iureanimr. .... if . -t.
Fom, 4952 (1977)
General Instructions
1. Who Must File.-Individuals. estates
and tr sts are limited in the taxable year
on the-jeduction of interest expense on indebtedness
incurred to purchase ., carry
investment propedyand net lease property.
a. If you paid or accrued. depending
-Pon the method of accounting
during u the year 1977 interest an You indebX ' ':
ness incurred after September 10, 1975,
exceeding $10,000 married
filing separately; zero ($5'000 it a trust), if fit I in Part
IL
b. If you paid or accrued interest during
the year on an obligation or obligations
in existence prior to September 11, 1975,
bu t after December 16, 1969, attributable
to a specific item of property for a specified
term exceeding $25.000 ($12.500 if met. fit
ri'd fi:ing separately; zero if a trust), ill in
rt 1 1.
Pac.
In addition, if you paid or accrued
in 1977 interest on investment indebtedness
created before December 17, 1969,
attributable to a specific item of property
for a specified term, fill in Part 1. This also
includes indebtedness in existence after
December 16, 1969, if a binding contract
was in effect on that date.
it. If, during 1976, you had interest
from Parts 11 or III disallowed due to the
respective limitations, fill in Part IV of the
Form 4952 for 1977.
2. Description of Property Involved.a.
Property held for investment Includes
all investments held for the production of
taxable income or gain. Such property does
not include property used in a trade or
business.
Is. Property subject to net lease Is rental
property that is treated for purpose of computing
the limitation as property held for
investment. The character of the inc, me
and expenses of such property does not
change for computing the gain or loss with
respect is to rental property. Rental property
net tease property if either or both of
these conditions exist:
(1) The lessor is either guaranteed a
specific return of income or is guaranteed
in whole or in part against loss of income.
(2) The sum of the deductions of the
lessor in the taxable year with respect to
such property, which are allowable solely
by reason of section 162 (other rents
and reimbursed amounts), is ther' less than
15% of the income produced by such
property. With respect to the 15% test,
the lessor may elect to: (a) treat all leased
portions of a parcel of real property as
subject to a single lease, and (b) exam
real property that has been in use for more pt
than 5 years.
3. Items to Use in Computing the Liml.
tell...-
,a. Investment interest expense is the
in an,st paid or accrued on indebtedness
incurred or continued, to purchase or carry
property held for investment or rental
property s ubject to a net lease. Taxpayer's
method of accounting will determine the
amount of interest to include in the
abletax- year.
b. Exemption provided on lines 10(a)
and (b). 11, 21 and 22.
c. Net investment income is the
amount by which investment income exceeds
investment expenses. (1) Investment
income includes the following that
a re includible in gross Investment property, and amounts recap.
tured as ordinary income from the sale or
exchange to of i rvestment property subject
sections 1245, 1250 and 1254 provisions.
(2) Investment expenses alethose
deductions directly connected
income: Interest.
dividend a, rents from net lease property,
royalties, net short term capital gains from
wit h the production
of investment incornetySsuectiodnes
ductions are those allowatil e
162, 164(a)(1) or (2), 166, 167, 171, 212,
or 611 Depreciation is limited to the
amount' computed under the straight line
method. ~d Depletion is limited to an amount
base
on cost. Investment income and ex
parses do not include any amounts connected
with a trade or business.
Excess expenses from not lease prop.
erty Iowa d. is the amount by which expenses atany
ble under sections limitations 162, 163 of(without
red ction for the
163(d)) u 164(a)(1) or (2), and 212section attrib.
utatil. to property subject to a ri~t lease
exceeds the income produced by suc~
property.
4. Source of Amounts to Includea.
Taxpayer's own investment interest
expense and offset items.
b. Partnership. -TaXP3yer's pro-rata
share of partnership's investment interest
expense and other items used in the computation.
c. Subchapter S corporation. -Tax.
payer's pro rate share of the corporation's
mvcstrne~t interest expense and other
items o f
income and expenses that would
be taken into account if thisSuch limitation amounts a
plied to such corporation. P*
will be apportioned among the sharcholders.
d. Estates and trusts.-When there is
stributable net income, taxpayers will incrude
thcir share of: (1) the net investment
income, and (2) excess of net lonRterm
capital gain over the net short-term capi.
tal loss from the sale or exchange of in.
vestment property.
S. Allowable Investment lnterest.;,-.T~e
nonbusiness portion of the allowa a in.
vestment interest should be deducted as
an itemized deduction on Schedule A
1040). The allowable portion allocated (Formto
rental property should be shown on Schedule
E (For. 1040). Part 11.
The pro-ratis share of allowable investment
I nterest from . partnership Should
be deducted on Schedule E ( P. Form 040).
yourt III, unless the partnership notifies 1
that it retates to n.nbusiness property
which should be deducted on Schedule A
(Form 1040).
The pro'rata share of disallowed investment
interest from a sutichapter S corporation
should be added to the distributive
share of income as reported on Schedule E
(Form 1040), Part Ill. No adjustment
should be made for the allowatilparttion
. ~ h
since it has already been deductic y a
corporation.
The allowable portion of investment
Interest attributable to estates and trusts
am deducted on line 10, Form 1041 .
curred after that date and subject to the
same limitations.
The allowable portions for each of the
above are figured by the following formula:
ftni.,, .1 intma . 7.1.1 I.-J.
T-1 1.1.11d i...n-1 W,-t
All interest on investment indebtedness
incurred before 12/17/69 is allowable
without limitation.
Specific Instructions
Identifying Number.-Individuals enter
social security number. Estates and trusts
enter employer's identification number.
Preparing Form 4952.-First complete
lines 1, 5 through 9, 17 through 20, and
33. Then complete form in numerical sequence
starting with line 2.
Line S.-Entcr your total investment Inforest
expense, other than from partner.
ships and eutichapter S corporations, paid
or accrued in 1977, depending upon your
method of accounting, attributable to obfi.
gations incurred after September 10, 1975
See General Instruction 3(a) for definition.
Lino IO.-Individuals enter $10.000
000 if married filing separately). Hovr-
($5' ever, if you incurred investment interest in
connection a with the acquisition of stock in
corpora tion or partnership interest and
you, your spouse and children own 50%
or more of the stock or the capital interest
in that enterprise, enter on line 10(b) i:n
ad florist $15,000 ($7,500 it marr it
filing di separately) or the amount of this
interest whichever Is less.
Lines 2, 1? and 23-Enter your pro-rata
share of net investment income, as defined
in Gene ral instruction 3(c). from partnerh
6. Carryover of Disallowed Interest.-
Amounts disallowed in the prior year be~
cause of the limitations are carried to thif
current year and deducted within limitations.
It retains its same character. For example,
interest on investment indebtedness
incurred after September 10, 1975
when carried over will be treated as if in.
,
ubchapter S corporations, estates
n'dpst;ussts and all other investment income
required to be reported on your Form 1040
or 1041 for 1977.
If you paid or seemed during the year,
Investment interest attributable to the
period prior to December 17, 1969, and
had net investment income in 1977, then
fiPmplete c linips 2, 3, and 4 and enter the
figure rona ino 4 on line 12(a). If you did
not pay or accrue during the year, invest.
ment interest attributable to the period
prior to December 17, 1969, enter the total
net investment income on line 12(a).
Allocations of net investment income
must be made for the periods prior to
12/17169, prior to 9/11/75 but after
12/ 1 6/69, and after 9/10/7s. Formulas
have been provided on finss 3 and 12(b)
for this purpose.
Lines 15 and 31-This is the allowable
Investment interest expense. Allocate this
amount according to General Instruction
5
Lines * 6 and 32-This is the disallowed
investment 1 interest. If you incurred any investment
interest from a sutichapter S cori
poration, allocate this according to Genera
Instruction 5 substituting this amount for
the allowable investment interest.
Line 17-Enter your total investment
Interest expense, other than train partnerships
and sutichapter S corporations, paid
or accrued in 1977, depending upon your
method of accounting, attributable to obfi- ,
gations incurred prior to amber ~ 1
1975, but after December X.P11969, S or incurred
after September 10, 1975, but subject
to a written contract or commitment
made prior to then. Indebtedness must be
attributalif ,~, I, [do a specific item of property
for a speci ie term.
Una 25-For Purposes of this computation
only gains and losses attributable
to the disposition of property hold for In.
vestment should be taken into account.
Line 38-Enter the smaller of lines 33
or 37. This is the investment interest from
prior years that Is allowable this vast. Alto.
cate this amount according to the Ormul a
provided in General Instruction 5 using per.
centages obtained in prior years to which
the carryovers are attributed.
*-____- 10--al 18410~11 a

Section 9
A
Accelerated depreciation (See Tax
Preferences)
Additional tax for tax preferences:
Classified by:
Size of alternative income
concepts, 38-39
Type of tax computation, 71
Comparison, 1976 and 1977, 1
Computation of various tax
concepts, 73
Definition, 193
Reported on:
All returns, 123
Returns of taxpayers age 65
or over, 143
Returns with credit for the
elderly, 149
Returns with income subject
to tax, 84
Returns with net gain from
sales of capital assets, 86-
87
Returns with tax preferences,
121-122
Adjusted gross income (See Adjusted
Gross Income Less Deficit)
Adjusted gross income less deficit:
As classifier, 206
Average, 7-9
Classified by:
Form of deduction, 48
Classified by States, 156
Marital status, 16
Size of alternative income
concepts, 34-35
Size of total income tax,
111-113
States, 153
Classified by size of
adjusted gross income,
165-192
Typp of exemptions, 63-67
Classified by States, 162-
164
Type of tax computation, 71
Coefficient of variation, 215
Comparison, 1976 and 1977, 1
Computation of taxable income,
72
Computation of various tax
concepts, 73
Definition, 193
Percent, 7-9
Reported on:
All returns, 17
Classified by marital
status, 10-15
Form 1040A returns, 43
Classified by marital
,status, 42
Filed by taxpayers age 65
or over, 138
Index
Joint returns, 26
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 139
Classified by marital
status, 137
Returns with contributions
deduction, 54
Returns with credit for the
elderly, 145
Returns with disability income
payments, 7
Returns with earned income
credit, 118
Returns with general tax
credit, 74
Returns with income subject
to tax, 81
Classified by tax rates,
88-92
Returns with interest paid, 59
Returns with investment interest
expense, 60-61
Returns with itemized deductions,
51
Classified by marital
status, 52
Returns with maximum tax, 85
Returns with medical and
dental expense deduction, q5
Returns with new jobs or WIN
credit, 75
Returns with tax preferences,
120
Returns with taxes paid, 53
Returns with total miscellaneous
deductions, 58
Size and accumulated size, 7-9
Total income tax as a percent
of, 114-115
Adjusted gross income less investment
interest:
Classified by size of alternative
income concepts, 34-39
Definition, 193
Reported on nontaxable returns, 6
Adjusted gross income plus excluded
tax preferences:
Classified by size of alternative
income concepts, 34-39
Definition, 193
Reported on nontaxable returns,6
Adjustments (See Statutory Adjustments)
Age 65 or over:
As classifier, 193
Definition, 135
Exemptions for:
Classified by:
Marital status, 68
Size of adjusted gross
income, 63
States, 162
Comparison, 1976 and 1977, 49
Returns of taxpayers age 65 or
over, 139-143
Classified
137
by marital status,
Reported on:
Form 1040A returns, 138
Returns with credit for the
elderly, 138
Classified by size of
adjusted gross income,145
Returns with
.
tions, 144
Alimony paid:
itemized deduc-
Coefficient of variation, 223
Definition, 193
Reported on all returns, 25
Reported on joint returns, -33
Alimony received:
Coefficient of variation, 215
Definition, 193
Reported on:
All returns, 17
Classified by marital
status, 16
Joint returns, 26
Returns with itemized deductions,
52
All other taxes:
Computation
cepts,,.73
of various tax con-
Definition, 194
Reported on all returns, 123-124
Alternative tax:
Definition, 194
Reported on returns with income
subject to tax, 81-84
Reported on returns with net
gain from sales of capital.
assets, 86-87
Tax savings, 83
Type of tax computation, 71
Amortization (See Tax Preferences)
Averages (See specific item)
Bad debt reserves (See Tax
Preferences)
Balance due after remittance:
Definition, 194
Reported on:
All returns, 126
Form 1040A returns, 46
Classified by marital
status, 42
Returns with tax d4e at time
of filing, 132-134
B
I
279
0

I
280
Blindness exemptions:
Comparison, 1976 and 1977, 49
Definition, 197
Reported on all returns, 63.
"Classified by marital status,
68
Classified by States, 162
Business and profession npt profit
or loss:
Coefficient of variation, ?20
Comparison, 1
Definition, 194
Reportpd on:
All returns, 22
Classified by marital
status, 16
Classified by States, 153
Joint returns, 30
Returns with itemized deductions,
52
Returns with new.jobs or WIN
credit, 75
Returns with tax preferences, 120
C
Capital gain distributions (See
atZo Dividends in Adjusted
Income):
Gross
Coefficient
218
of variation, 216,
-
Definition, 194-
Reported on all returns, 18,20
Reported on joint returns, 27-28
Capital gains' and losses (See Sales
of Capital Assets)
Cash contributions:
Definition, 194
Reported on returns with contri-.
butions deduction, 54
Casualty or theft-loss (net):
-
Definition, 194
Reported-on:
Returns of taxpayers age 65
or over,-144
Returns with itemized deduc-
'tions, 51
I Classified by States, 158
Returns with total miscella-
: .-
A A -*4 gZA
- - ~ ~ -- P
Child care..credit:,
Definition, 195
Reported on returns with child
,care exp~enses, 119 .
Reported on returns with income
,tax before credits, 116 ,
. Classified by States, 159
Coefficient of variation
specific item):
(See at4o
Definition, 211
For-.:nuinber,of returns, 213
'' ~Classified by.States,, 224.
For sources of income and
,adjustmentsi-215-223
Contributions deduction:
-
Classified by size of alternative
income concepts, 36-37 -
Definition,
Reported,-,.on:
195
Returns of taxpayers age 65.
or over, 144
Returns with itemized deductions,
51
Classified by States,-157
Returns with tax preferences, 120
Type of contributions deducted, 54
Individual Returns/1977 e Index
Contributions to'candidates credit:,
Definition, 195
Reported on:
Form 1040A returns, 44.
Classified by marital
status, 42
Returns with income tax
before credits, 117
Classified by States', 160
Contributions to candidates deduction
(See Miscellaneous Itemized
Deductions)
Credit for.t~Lx on certain gasoline
fuel, and oil:
Definition', 195
Reported on all returns, 125
.Credit for the elderly:
Definition,
Reported on:
195
All returns, 148
Classified by age of taxpayer,
138
Returns of taxpayersage 65
or over, 142
Returns with income tax
before credits, 116.
Credit on
Classified, byz States, .159
1978 estimated-tax:
Definition,
Reported on~
195
All. returns' 126
Returns withP tax overpayment,
128-131
Classified by size of.tax
overpayment, 127-dredits-.(See
Tax Credits)
D
Deductions (See Total
,
It emized.De-.
-ductions and.Zer.o Bracket AmounO.
Dependents' exemptiofis:
Comparison,
Definition,
1976 and
197
1977, 49
Reported on returns',witb -general -
tax credit, 74
Type.of dependent exemptions, 63-64
Classified by marital status,,
68
Classified by States, 163
Depletion (See Tax Preferences)
Description of the sample:
Method of estimation, 211.
Sample criteria and
211
selection,
-Sources of-the data, 211.
Disability income exclusion:'
Coefficient of variation,. 222
Definition,
Reported ont
195
All returnsi, '2.4
Joint returns, 32
Returns with disabilityincome,
payments', .7
Returns with ea-rned.income
cre.dit, 118 '. , ;~
Dividends and. other distributions
received:
Coefficient
217
of variation, 216-.
Definition, i96
Reported on all returns, 18-19
Reported on.joifit;~eturns,
Dividend exclusion:
27-28
Coefficient of variation, 217
Definition, 196"
Reported on:
All returns,. 19
Form 1040A returns, 43
Joint returns, 28
Dividends in adjusted gross income:
Coefficient of variation, 217
Comparison, 1976 and 1977, .1
Definition, 196
Reported o6:
A1.1 returnsi 19
Classified by marital
status, 16
Classified by States, 154
Form 1040A returns, 43
Classified by'marital
status, 42
Filed by taxpayers age 65
or over, 138
.Joint returns, 28
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 140
Returns with credit for the
elderly, 146
Returns with itemized deductions,
52
Returns with tax preferences,
120
Domestic and foreign dividends
received (See Dividends in
Adjusted Gross Income)
E
Earned income credit:
Computation of, 118
.Definition, 196
-Reported on: '
All returns, 124-125
Classified by size of
adjusted gross income, 73
Form 1040A returns, 45
Classified by marital
status, 42
Returns of taxpayers age 65
or.over, 142-143
*Returns with income tax
before.credits, 116 -
Classified by States,
161
1
159-
Returns with
128-131
tax overpayment,
Employee business expenses:
Coefficient of variation,,222 -
Definition-, 196
Reported on all returns, 24
Reported on joint returns, 33
Estate or trust income or loss:
Classified by States, 155
Coefficient of variation,-221
Comparison,!1976 and 1977, 1
Definition,
Reported on:
196
returns, 23-AU
Classified by marital
status, 16
Joint.returns, 31
Returns-of taxpayers age 65
. or over, 140
Returnwwith credit for the
elderly, 147
Returns with itemized deductions,
52

Estimated tax payments:
Definition, 197
Reported on:
All returns, 125
Classified by States, 161
Returns with tax due at time
of filing, 132-134
Classified by size of tax
due, 127
Returns with tax overpayment,
128-131
Classified by size of
over-payment, 127
Excess itemized deductions:
Classified by:
Marital status, 16
Classified by size of
adjusted gross income, 10-15
States, 156
Computation of taxable income, 72
Definition, 197
Reported on:
Nontaxable returms, 40
Returns of taxpayers age 65
or over, 141
Classified by marital
status, 137
Returns with credit for the
elderly, 148
Returns with income subject
to tax, 81
Returns with itemized deductions,
51
Classified by marital
status, 52
Reported by taxpayers age
65 or over, 144
Excess social security tax withheld:
Definition, 197
Reported on all returns, 125
Exemptions (See atbO specific tYPe).-
Classified by:
Size of alternative income
concepts, 36-37
States, 158
Classified by size of
adjusted gross income,
165-192
Computation of taxable income,72
Definition, 197
Reported on:
All returns, 10-15
Form 1040A returns, 44
Classified by marital
status, 42
Filed by taxpayers age 65
or over, 138
Returns of taxpayers age 65
or over, 139
Classified by marital
status, 137
Returns with credit for the
elderly, 145
Returns with general tax
credit, 74
Returns with income subject
to tax, 81
Types of exemptions, 63-67
Classified by marital status,
68
Classified by States, 162-164
Comparison, 1976 and 1977, 49
Exemption credit (See General Tax
Credit)
Individual Returns/1977 * Index
Expanded Income:
Definition, 197
Reported on all returns, 34-35
Reported on nontaxable returns,
6
F
Farm net profit or loss:
Classified by States, 153
Coefficient of variation, 220
Comparison, 1976 ind 1977, 1
Definition, 197
Reported on:
All returns, 22
Classified by marital
status, 16
Joint returns, 30
Nontaxable returns, 40
Returns with itemized deductions,
52
Returns with new jobs or WIN
credit, 75
Returns with tax preferences,
120
Filing requirements, V
Foreign tax credit:
Classified by size of alternative
income concepts, 38-39
Definition, 197
Reported on returms with'income
tax before credits, 117
Classified by States, 160
Forfeited interest penalty:
Coefficient of variation, 22.1
Definition, 198
Reported on all. returns, 25
Reported on joint returns, 33
Form 1040A returns:
Classified by marital status, 42
Classified by size of adjusted
gross.income, 43-46
Filed by taxpayers age 65 or
over, 138
Form of deduction, 198
Forms and instructions, 225-277
Fully taxable pensions and
annuities (See Pensions and
Annuities)
I G
Gains and losses from sales of
capital assets (See Sales of
Capital. Assets)
Gasoline taxes (See State and Local
Gasoline Taxes)
General sales tax:
Classified by States, 157
Definition, 198
Reported on returns with taxes
paid deduction, 53
General tax credit:
Computation of, 74'
Computation of various tax
concepts, 73
Definition, 198
Reported on: ,
Form 1040A retu rns, 44
Classified by * marital
status, 42
Filed by taxpayers age 65
or over, 138
Returns of taxpayers age 65
or over, 142
Returns with credit for the
elderly, 148-149
Returns with income tax
before credits, 116
Classified by States, 159
Geographic coding, 152
Heads of households, returns of
(see aUo Marital Status):
Classified by tax rates, 91
Comparison, 1976 and 1977, 2
Definition, 198
Exemptions, 68
Reported on:
Form 1040A returns, 42
Returns of taxpayers age 65
or over, 137
Returns with earned income
credit, 118
Returns with itemized deductions,
52
Selected items, 13
Sources of income, 16
Tax generated by rate, 103-107
High-income returns:
Classified by size of alternative
income concepts, 34-39
Definition, 4
Home mortgage interest:
Classified by States, 158
Definition, 198
Reported on returns with
interest paid deduction, 59
H
I
Income averaging:
Definition, 198
Reported on returns with income
subject to tax, 81-84
Selected income tax items, 71
Tax savings, 83
Income earned abroad:
Coefficient of variation, 223
Definition, 198
Reported on all returns, 25
Reported on joint returns, 33
Income subject to tax:
Classified by tax rates, 88-92
Classified by marital status,
93-110
Classified by type of tax computation,
71
Definition, 199
Reported on:
All returns, 81-84
Returns with net gain from
sales of capital assets, 86-
87
Returns with tax preferences,
121
Income tax after credits:
Classified by:
Marital status, 16
Classified by size of
adjusted gross income,
10-15
States, 160
Tax rates, 88-92
Type of exemption, 63-67
Type of tax computation, 71
Comparison, 1976 and 1977, 1

Computation of various tax
concepts, 73
Cumulated, 7-9
Definition, 199
Percent and accumulated percent,
7-9
Reported on:
All returns, 123
Form 1040A returns, 45
Classified by marital
status, 42
Filed by taxpayers age 65
or over, 138
Returns of taxpayers age 65
or over, 143
Classified by marital
status, 137
Returns with credit for the
elderly, 149
Returns with earned income
credit, 118
Returns with income tax
before credits, 117
Returns with itemized deductions,
52
Returns with tax preferences,
121
Income tax before credits:
Classified by:
Size of alternative income
concepts, 38-39
States, 158
Type of tax computation, 71
Comparison, 1976 and 1977, 1
Computation of various tax
.concepts, 73
Definition, 199
'Reported on:
All returns, 1 16
Classified by States, 159
Form 1040A returns, 44
Classified by marital
status,/42
Fil6d-by taxpayers age 65
or over, 138
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 142
Returns with credit for the
elderly, 148
Returns with earned income
6 redit, 118
Returns with general tax
credit, 74
Returns with income subject
to tax, 83.
.Returns with net gain from
sales of capital assets, 86-
87'
Returns with tax preferences,
121
Income tax withheld:
Classified by marital-status, 16
Classified by States, 161
Definition, 199
Reported on:
All returns, 124
Form 1040A returns, 46
Returns with itemized deductions,
52
'Returns with tax due at time
of filing, 132-133
Classified by size of tax
due, 127
Indiv.idua1_Retu.rns/1977 e Index
Returns with tax overpayment,
128-130
Classi fied by size of
overpayment, 127
Individual retirement
adjustment:
account (IRA)
Coefficient of variation,- 222
Definition,
Reported on:
199
All returns,-24
Joint returns, 33
Returns with payments to an
IRA, 6
Intangible drilling costs
Preferences)
(See Tax
Interest paid deduction:..
Classified by size of alternative
income concepts,.34-35
Classified by States, 157-158
Definition,
Reported on:
199-
All returns, 59..
Return's of taxpayers age 65
or over, 144
Returns with itemized deductions,
51
Returns with tax preferences,
120
Interest received:
Classified by marital status, 16
Classified by States, 154
Coefficient of variation, 215
Comparison, 1976 and 1977, 1
Definition,'200-
'
Reported on:
All returns, 17
Form 1040A returns,43
Classified by ' rdarital
status, 42 '
Filed by taxpayers age 65
or over, 138
Joint returns, 26
Nontaxable"returns, 40
Returns of taxpayers age 65
or over, 140
Returns with credit.for the
elderly, 146
Returns with itemized deductions,
52
Returns with tax preferences,
120
Investment credit:
Classified by States, 159
Definition, 200
Reported on returns with income
tax before ciedi.t6, 117
Investment.interest:
Classified by size of alternative.income
concepts, 34-35
Definition, 200
Investment interest from Form 4952:
Computation.of, 60-62
Definition 200
Reported on returns with
interest paid deauction, 59
Itemized deduction tax prefer'ence
(See Tax Preferences)
Itemized' deductions'( See Total
Itemized Deductions).
Joint returns, of h6s bands and wives.
(See aZ6o M~rital , Status):
Classified by States, 165-192
Classified by tax rates, 89
Com1parison, 1976 and 1977, 2'
Definition, 200L
Exemptions,*68
Classified by States, 164
Reported on:
Form 1040A returns, 42
Returns of taxpayers age 65
or over, 137
Returns with credit for the
elderly, 138
Returns with earned income
credit, 118
Returns with itemized deductions,
52
Returns with presidenti al
election campaign fund
checkoff, 41
Returns with total income tax
as percent of adjusted gross
income, 114-115
Selected items, 11
Sources of income, 16
Classified by size of. -
adjusted gross income, 26-33
Tax generated by rate, 97-99
Limitati ons of the data (See
Description - of the Sample and
Coefficient of Variation)
Long-term capital gains and
losses
Assets)
(See Sales of Capital
Low-income allowance (See Zero
Bracket Amount)
L
M
I
Marginal tax rate (See Tax Rates)
Marital
type):
status (-See dUO specific
Comparison, 1976 and 1977, 2~
Definition, 200
Exemptions,.68-
Income subject to tax, 88-92
Reported on:
Form 1040A returns, 42
Returns of taxpayers age 65
or over, 137
Returns with itemized deductions,
52
Returns with presidential
election campaign fund
checkoff, 41
Selected items, 10-15 -
Sources of income, 16
Tax generated by rate, 97-110
Maximum and alternative tax computation
(See Maximum Tax on Per-,
sonal Service Income)
Maximum tax
income:
on personal service
Computation of, 85
Definition, 201
Reported on returns with income
subject to tax,
Tax savings 83
81-84
.
Type of tax computation, ' 71

Medical and dental expense deduction:
Classified by size of alternative
income concepts; 36-37
Classified by States, 156
Definition, 201
Reported on:
All returns, 55-57
Returns of taxpayers age 65
6r over, 144
Returns with itemized deductions,
51
Minimum tax (See Additional Tax for
Tax Preferences)
Miscellaneous itemized deductions:
Classified by size of alternative
income concepts, 36-37
Classified by States, 158
Definition, 201
Reported on:
All returns, 58
Returns of taxpayers age 65
or over, 144
Returns with itemized deductions,
51
Returns with tax preferences,
120
Moving expense deduction:
Coefficient of variation, 223
Definition, 201
Reported on all returns, 25
Reported on joint returns, 33
Net capital gain (see Sales of
Capital Assets)
Net capital gain after carryover
(See Sales of Capital Assets)
Net capital loss (See Sales of
Capital Assets)
Net capital loss after carryover
(See Sales of Capital. Assets)
Net operating loss credit (See
Additional.
Preferences)
Tax for Tax
Net operating loss eligible for
carryover * (See Additional Tax
N
for Tax Preferences)
New jobs credi.t:
Classified by States, 160
Definition, 202
Reported on all returns, 75
Reported on returns with income
tax before credits, 117
No benefit deduction (See Additional
Tax for Tax Preferences)
Nonjoint returns (See Marital
Status)
Nonsampling errors (See Description
of the Sample)
Nontaxable returns:
Classified by size of alternative
income concepts, 6
Comparison, 1969-1977, 5
Definition, 208
Sources of income and deductions,
40
Number of returns (See at6O
specific type):
Classified by:
Size of alternative income
concepts, 34-35
States, 153
Classified by size of
adjusted gross income,
165-192
Individual Returns/1977 *_ Index
.Tax rates, 88-92
Classified by marital
status, 93-110
Type of tax computation, 81
Coefficient of variation, 213
Comparison, 1976 and 1977, 1
Classified by marital
status, 2
Credits, 116
Exemptions, 63-67
Filed by taxpayers age 65 or
over, 139
Form 1040A returns, 43
Classified by marital status,
42
Form of deduction, 48
Itemized deductions, 51
Sample size, 212
Sources of income, 17
Tax liability and taxpayments,
123
Total, cumulated, 7-9
: 0
One-half excess long-term capital
gain (See Sales of Capital Assets)
One-half insurance premiums:
Definition, N2
Reported on returns with
medical and dental expense
deduction, 55
Other deductions (See Miscellaneous
Itemized Deductions)
Other dependents
Exemptions)
(See Dependents'
Other income or loss:
Coefficient of variation, 222
C7assified by marital status, 16
Definition 202
Reported on: '
All returns, 24
Joint returns, 32
Returns with itemized deductions,
52
Other tax credits:
Definition, 202
Reported on returns with income
tax before credits, 117
Other taxes (deducted):
Reported on returns with taxes
paid deduction, 53
Other taxpayments:
Definition, 202
Reported on all returns, 125
Other than cash contributions:
Definition, 202
Reported on returns with
contributions deduction, 54
Overpayment (See athO Refund):
Classified by:
Marital status, 16
Size of overpayment, 127
States, 161
Type of taxpayment, 128-131
Definition, 202
Reported on:
All returns, 126
Form 1040A returns, 46
ClassUied by marital
status, 42
Returns with itemized
deductions, 52
P
Partnership income or loss:
Classified by marital status, 16
Classified by States, 153
Coefficient of variation, 220
Comparison, 1976 and 1977, 1
Definition, 202
Reported on:
All returns, 22
Joint returns, 31
Nontaxable returns, 40
Returns with itemized deductions,
52
Returns with new jobs or WIN
credit, 75
Payment on 1977 declaration of
estimated
Payments)
tax (See Estimated Tax
Payment with request
of filing time:
for extension
Definition, 203
Reported on all returns, 125
Penalty taxes on individual retirement
accounts:
Definition, 203
Reported on all returns, 124
Pensions and annuities:
Classified by marital status, 16
Classified by States, 155
Coefficient of variation,
216
215-
Definition,
Reported on:
203
All returns, 17-18
Joint returns, 26-27
Returns of taxpayers age 65
or over, 140
Returns with credit for the
elderly, 146
Returns with itemized deductions,
52
Percentage standard deduction (See
Zero Bracket Amount)
Personal exemption credit (See
General. Tax Credit) '
Personal property taxes:
Classified by States, 157
Definition, 209
Reported on returns with taxes
paid deduction, 53
Political contributions (See, Contributions
to Candidates Credit
and Miscellaneous Itemized
Deductions)
Presidential election campaign
fund checkoff:
Definition, 204
Reported on all returns, 41
Real estate taxes:
Classified by States, 157
Definition, 209
Reported on returns with
taxes paid deduction, 53
Refund (See aZ60 Overpayment):
Classified by:
Marital status, 16
Size of overpayment, 127
States, 161
Type of taxpayment, 128-131
Definition, 204
R
283

284
Reported on:
All returns, 126
Form 1040A returns, 46
Classified by marital
status, 42
Regular tax computation:
Definition, 204
Reported on:
All returns, 71
Returns with income subject
to tax,~82-84 '
Returns with net gain from
sales of capital assets, 86
Rent net income or 'toss:
Classified by.marital status, 16
Classified by States, 154
Coefficient of variation, 217
Comparison, 1976 and 1977, 1
Definition, 204
Reported on:
All returns, 19
Joint returns, 28
Returns of taxpayers age 65
or over, 140
Returns with credit for the.
elderly, 146 -
Returns with itemized deductions,
52.
Returns with tax preferences,
120
Retirement income credit (See
I Credit for the Elderly)
Royalty net income or loss: -
Classified by marital status, 16
Classified by States, 154
Coefficient of variation, 217
Comparison, 1976 and 1977, 1
Definition, 204
Reported on:
All returns, 1q
Joint returns, 28
Returns of taxpayers age 65
or over, 140
Returns -with credit- for the
elderly, 146
Returns with itemized deductions,
52
Returns with tax preferences,
12d
Salaries and wages:
Classified by:
Marital status, 16
Number of exemptions, 64-67
States, 153 ~
Classified by size of
adjusted gross income,
165-192
Coefficient of variation, 215
Comparison, 1976 and 1977, 1
Definition, 204
Reported on:
All returns, 17
Form 1040A returns,,43
Classified by marital
status, 42.
Filed by taxpayers age 65
or over, 138
Joint returns, 26
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 139
Returns with,credit for the
elderly, 145
Individual Returns/.1977 o. Index
Returns with earned income
credit, 118
Returns with' itemized
deductions, 52
Returns with payments to an
IRA, 6
Returns with tax preferences,
120
Sales of capital assets net gain
or loss:
Classified by marital*status, 16
Classified by States, 153
Coefficient of Variation, 218-
219 -
Comparison, 1976 and 1977, 1
Computation of net
86-87
capital gain,
Definition, 204
Reported on:
All returms,*20-21
Joint returns, 28-30
Returns of taxpayers age 65
or over, 139
Returns with credit for the
elderly, 145
Returns with itemized deductions,
52
Returns with tax preferences,
120
Sales of property OtheA than
capital assets net gain or loss:
Classified by marital status, 16
Classified by States, 154
Coefficient of variation, 219
Definition, 205
Reported on:
All returns, 21
Joint returns,.30
Nontaiable.returns, 40
Returns of taxpayers age 65
or over, 139
Returns with credit for the
elderly, 145 ': ,
Returns -with itemized deductions,
52
Sales taxes (See General Sales
Taxes)
Sampling criteria (See Description
of the Sample)
Sampling variability.(See Coefficient
of Variation)
Self-employed retirement deduction:
Coefficient of variation, 222
Definition, 205
Reported on all ~eturns, 24
Reported on joint returns, 33
Self-employment
Income Credit)
income (See Earned
'
Self-employment tax:
CompRrison, 1976 and 1977*, 1
Definition, 206
Reported on al-I returns, 124
Separate returns of husbands and
wives (See afZO Marital Status):
Classifiedby , tax~,rates, 90
Comparison 1976 and 1977, 2
Definition, " 206'
Exemptions, 68.
Rep orted o n:
Form 1040A'return6, 42.
Returns of taxpayers age 65
or over, 131
Returns with itemized deductions,
52
Selected items,'12
Sources of income, 16
Tax generated,by.rate, 100-102
-All
Sick pay exclusion (see Disability
Income Exclusion)
Single persons, returns 6f:
Classified by tax rates, 92,
Comparison, 1976 and 1977, 2
Definition, 206
Exemptions,
Reported on-
68
Form 1040A returns, 42
Returns of taxpayers ag'q'65
or over, 137
'Returns with itemized deductions,
52
Selected items, 15
Sources of incomei 16
Tax generated by rate, lo8_'110
Small Business Corporation profit
or loss:
Classified by marital status, .16
Classified by States, 155
Coefficient of yar iation,'221
Comparison, 1976 and ' 1971, 1
Definition, 206
Reported on:
returns, 23
Joint returns, 32
Nontaxable returns, 40
Returns with itemized
deductions, 52
Social security
income:
taxes on tip
Definition, 206
Reported on all returns, 124
Sources of income (See specific
type)
Sources of the data (See Description
of the Sample) -
Standard deduction
Bracket Amount)
(See Zero
State and local gasoline taxes:
Classified by States, 157
Definition, 209
Reported on retu rns with
taxes paid deduction, ' 53
State and local income taxes:
Classified by States, 157
Definition, 209
Reported on returns with taxes
. 1 41
paid deduction, 53
State data:
As classifier, 206
Classified by size of adjusted
gross income, 165-192 .
.
Coefficient of variation, 224
Exemptions, 162-164
Itemized deductions, 156-158
Sources of Income, 153-155
Tax credits and
159-161
taxpayments,
State income tax refunds:
Classified by marital status, 16
Classified by States; 155
Coefficient of variation, 215
Definition, 206
Reported on:
All returns, 17
Joint returns, 26
Returns with itemized deductions,
52
Statutory adjustments
specific type):
(See 0240
Classified by marital status, 16
Coefficient of variation,
223
222-
Comparison, 1976 and 1 977, 1
Definition, 207

Reported on:
All returns, 24-25
Joint returns, 32-33
Nontaxable returns, 40
Returns of taxpavers age 65
or over, 141
Returns with credit for the
elderly, 147
Returns with itemized deductions,
52
Stock options (See Tax Preferences)
Surviving spouse, returns of (See
atzo Marital Status):
Classified by tax rates, 89
Comparison, 1976 and 1977, 2
Definition, 207
Exemptions, 68
Reported on returns of taxpayers
age 65 or over, 137
Reported on returns with
itemized deductions, 52
Selected items, 14
Sources of income, 16
Tax generated by rate, ~7-99
Tax computation (see specific type)
Tax credits (See atzo specific
type):
Child care credit, 119
Classified by size of alternative
income concepts, 38-39
Classified by States, 159-160
Comparison, 1976 and 1977, 1
Computation of various tax
concepts, 73
Definition, 207
General tax credit, 74
Earned income credit, 118
New jobs or WIN credit, 75
Reported on:
Form 1040A returns, 44-45
Classified by marital
status, 42
Filed by taxpayers age 65
or over, 138
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 142
Returns with credit for the
elderly, 148-149
Returns with income subject
to tax, 84
Type, 116-117
Tax due at time of filing:
Classified by:
Marital status, 16
Size of tax due, 127
States, 161
Definition, 207
Reported on:
All returns, 132-134
Form 1040A returns, 46
Classified by marital
status, 42
Returns with itemized deductions,
52
Returns with tax liability,
126
Tax from recomputing prior-year
investment credit:
Definition, 207
Reported on all returns, 123
T
Individual Returns/1977 0 Index
Tax generated:
Classified by tax rates, 88-92
Classified by type of tax
computation, 71
Computation of various tax
concepts, 73
Definition, 207
Reported on returns with
income subject to tax, 83
Tax law changes, VI
Tax liability (See Total Income
Tax or Total Tax Liability)
Tax on partially tax-exempt
income:
Definition, 207
Reported on returns with
income subject to tax, 81-84
Tax savings, 83
Type of tax computation, 71
Tax overpayment (See Overpayment)
Tax paid with return:
Classified by size of adjusted
gross income, 126
Definition, 207
Reported on:
Form 1040A returns, 46
Classified by marital
status, 42
Returns with tax due at time
of filing, 112-134
Tax preferences:'
Definition, 207
Reported on:
All returns, 120-122
Returns of taxpayers age 65
or over, 137
Returns with net gain from
sales of capital assets, 87
Tax preferences excluded from
adjusted gross income:
Classified by size of alternative
income concepts, 34-35
Definition, 208
Tax rates:
Classified by marital status,
88-92
Definition, 208
Marginal tax rates, 88-92
Reported on returns with income
subject to tax, 93-96
Classified by marital status,
97-110
Tax rate schedules, 248
Tax savings (See specific type of
tax computation)
Tax table income:
Computation of taxable income,
72
Definition, 208
Tax tables, 242-247
Taxable income:
Classified by:
Marital status, 16
Classified by size of
adjusted gross income,
10-15
Size of alternative income
concepts, 38-39
States, 158
Tax rates, 93-110
Comparison, 1976 and 1977, 1
Computation of, 72
Cumulated, amount, percent, 7-9
Definition, 209
Reported on:
Form 1040A returns, 44
Classified by marital
status, 42
Filed by taxpayers age 65
or over, 138
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 141
Classified by marital
status, 117
Returns with credit for the
elderly, 148
Returns with general tax
credit, 74
Returns with income subject
to tax, 81
Returns with itemized deductions,
52
Taxable returns:
Classified by size of alternative
income concepts, 34-39
Comparison, 1976 and 1977, 1
Cumulated, number, percent, 7-9
Definition, 208
Taxes from special computations:
Computation of various tax
concepts, 73
Definition, 209
Type of tax computation, 71
Taxes paid deduction:
Classified by size of alternative
income concepts, 36-37
Classified by States, 157
Definition, 209
Reported on:
All returns, 53
Returns of taxpayers age 65
or over, 144
Returns with itemized deductions,
51
Returns with tax preferences,
120
Taxpayer exemptions:
Comparison, 1976 and 1977, 49
Definition~, 50
Reported on:
All returns, 63
Classified by marital
status, 68
Classified by States, 162
Form 1040A returns, 44
Returns with general tax
credit, 74
Taxpayments (See at4o specific
type)
Classified by:
Marital status, 16
Size of tax due at time of
filing, 127
Size of tax overpayment, 127
States, 161
Definition, 209
Reported on:
All returns, 124-125
Form 1040A returns, 46
Classified by marital
status, 42
Returns with itemized deductions,
52
Returns with tax due at time
of filing, 132-134
Returns with tax overpayment,
128-131
Total deductions (See Total Itemized
Deductions and Zero Bracket
Amount)
285

286
Total income tax:
As percent of adjusted gross
income, 114-115
Average, 7-9
Classified by:
Marital status, 16
Classified by size of
adjusted gross income,
10-15
Number of exemptions, 63-67
Size of alternative income
concepts, 38-39
Size of total income tax,
111-113
States, 155
Classified by size of
adjusted gross income,
165-192
Comparison, 1976 and 1977, 1
Computation of various tax
concepts, 73
Cumulated, amount, percent, 7-9
Definition, 209
Reported on:
AJA returns, 123
Returns of taxpayers age 65
or over, 143
Classified by marital
status, 137
Returns with credit for the
elderly, 149
Returns with income subject
to tax, 84
Returns with itemized deductions,
52
Returns with new jobs or WIN
credit, 75
Total itemized deductions (See atzo
specific type):
Classified by:
Marital status, 16
Classified by size of
adjusted gross income,
-10-15
Size of alternative income
concepts, '14-37
States, 156-158
Type of itemized deduction,
53-59
Reported on returns of
taxpayers age 65 or over,
144
Comparison, 1976 and 1977, 48
Computation of taxable income,
72,
Definition, 209
Individual Returns/1977 9 Index
Reported on:
All returns,51
Classified by marital
status, 52
Nontaxable returns, 40
Returns of taxpayers age 65
or over, 141
Classified by marital
status, 137
Returns with credit for the
elderly, 147-148
Returns with income subject
to tax, 81
Returns with tax preferences,
120
Total tax liability:
Classified by:
Marital status, 16
Size of tax due at time of
filing, 127
Size of tax overpayment, 127
States, 155
Reported on returns
income tax before
with
credits, 160
Comparison, 1976 and 1977, 1
Computation of various tax
concepts, 73
Definition, 209
Reported on:
All returns, 123
Form 1040A returns, 45
Filed by taxpayers age 65
or over, 138
Returns of taxpayers age 65
or over, 143,
Returns with credit for the
elderly, 149
Returns with itemized deductions,
52
Returns with tax due at time
of filing, 132
Returns with tax overpayment,
1
128
U
Union dues:
Classified by States, 158
Definition, 209
Reported on returns with miscellaneous
itemized deductions, 58
Unused credits (See Additional Tax
for Tax Preferences)
Unused zero bracket amount:
Classified by States, 156
Computation of taxable-income,72
Definition, 209
Reported on returns with income
subject to tax, 81
W
Work incentive (WIN) credit:
Classified by States, 160
Definition, 209
Reported on all returns, 75
Reported on returns with
income tax before credits, 117
Z .
Zero bracket amount:
Classified by size of alternative
income concepts, 36-37
Classified by States, 156
Comparison, 1976 and 1977, 48
Computation of taxable income,72
Definitioni 210
Reported on:
Form 1040A returns, 43
Classified by marital
status, 42
Filed by taxpayers age 65
or over, 138
Returns of taxpayers age 65
or over, 141
Classified by marital
status, 137
Returns with credit for the
elderly, 147
Returns with income subject
to tax, 82
Returns with maximum tax, 85
*U.S. GOVERNMENT PRINTING OFFICE :1980- 311-3581882