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Jational Archives Washington,Dc2o48 3—058—74—109 (A) 1969 Individual Tax Model Documen tat ion * Record Group 58 Records of the Internal Revenue Service 69 001 NationalArchives and Records Adm in ist ration CONTENTS Taxpayers' income exceeded $600 billion, I Section Low-income taxpayers made increased use of head of household and surviving spouse tax rates. 3 Married persons filed separate returns mainly when both spouses had income. 3 Patterns of income virtually unchanged over 2-year pericxf. 4 Nontaxable returnS, 5 Returns Filed anc Dividends on 4.5 million returns tax free. 5 W-2 Wage and Tax Statement provided. 6 Income of men, women, and married couples, 7 Sources of lncom rext tables 1A Returns, income, and taxes. 1968 and 1969. 2 19 Number of returns by marital status and adjusted gross income classes. 1.7 Returns of heads of households: Sources of income and loss. exemptio 1958 and 1969. 2 taxable income, and tax items, by adjusted gross income classes. 2t 1C Separate returns of husbands and wives: Spouse filing status by adjusted 1.8 All returns: Sources of income and loss, exemptions. taxable income, gross income classes. 4 and tax items, by adjusted gross income classes. 29 1D Selected patterns of income by income category. 4 1.9 Nontaxable returns: Sources of income and loss, exemptions, taxable 1E Nontaxable returns by adjusted gross income classes. 4 income, and tax items, by adjusted gross income classes, 33 iF Dividends by adjusted gross income classes. 5 1.10 Returns with dividends by adjusted gross income classes. 37 10 Form W-2 and related data by adjusted gross income classes, 6 1.11 Selected patterns of income: Returns and income by adjusted gross 1H Selected sources of income by marital Status or sex of taxpayer, 7 income classes, 38 ii Joint returns with wages and other compensation from Form W-2: Wages of 1.12 Retuths with capital gains or losses: Gains and losses by type, by husbands and wives by adjusted gross income classes. 7 adjusted gross income classes. 40 1.13 Selected major sources of income and loss by adjusted gross income Charts classes, 43 1A Cononents of income and relative change. 2 1.14 Returns with farm net profit or loss: Sources of income and loss. 18 Change in number of returns, income, and tax. 1968-1969. 2 exemptions, taxable income, and tax items, by adjusted gross incor 1C Change in number of returns by size of adjusted gross income, 1960- classes. 45 1969, 3 1.15 Returns with farm net prof it or loss: Number of returns by size of farm 10 Joint returns with husband's wages as a percent or total wages by and nonfarm income by adjusted gross income classes, 49 adjusted gross income class, 8 1.16 Returns with farm net profit or loss: Farm net profit or loss as a perca 1E Wages and other compensation from Form W-2 by sex of taxpayer. 8 of adjusted gross income, by adjusted gross income classes. 53 1.17 Returns with pension and annuity income: Adjusted gross income. incr Basic tables tax after credits, taxable and partially taxable pension and annuity 1.1 Returns, adjusted gross income, taxable income, and income tax after come, by adjusted gross income classes, 54 credits, by adjusted gross income classes and classes cumulated, 9 1.18 Returns with Form W-2: Adjusted gross income, salaries and wages, to- 1.2 All returns: Adjusted gross income, total deductions, exemptions deductions, exemptions, tax items, and Form W-2 items, by adjusted taxable income, and income tax after credits, by adjusted gross income gross income classes, 55 classes and by marital status of taxpayer, 10 1.19 Nuner of Forms W-2 filed by marital status and adjusted gross income 1.3 Alt returns: Sources of income and loss, by marital status of tax- classes. 61 payer, 12 1.20 Joint returns: Husband's wages as a percent of total Form W-2 wages. 1.4 All returns: Sources of income and loss, exemptions, taxable income, by adjusted gross income classes. 65 and tax items, by adjusted gross income classes, 13 1.21 Male filers of non-joint returns: Sources of income and loss. exemptic 1.5 Joint returns of husbands and wives and returns of surviving spouses: taxable income, and tax items, by adjusted gross income classes. 6' Sources of income and loss, exemptions, taxable income and tax items. 1.22 Female filers of non-joint returns: Source of income and loss. exemp- by adjusted gross income classes. 17 tions, taxable income, and tax items, by adjusted gross income 1.6 Separate returns of husbands and wives and returns of single persons: classes. 71 Sources of income and loss exemptions, taxable income. and tax items, 1.23 Exemptions and selected items by marital status and sex of taxpayer by adjusted gross income classes. 21 adjusted gross income classes, 75 TAXPAYERS' INCOME EXCEEDED $600 BILLION developments delineated in chart 1B: (1) an increa - of 3 percent in returns filed, (2) an increase of 9 pe Taxpayers' adjusted gross Income reported on their cent In adjusted gross income, and (3) the extension 1969 individual returns totaled $603.5 billion, increasing the surcharge on income tax before credits to coy by $49.1 billion or 8.9 percent over 1968. Table lA the whole of calendar year 1969. and chart 1A show that most of the major sources of A 49 percent increase in the surcharge was attri! Income except net gain from sales of capital assets and table not grily to the Increase in income tax before cred net Income from rents and royalties increased over to which'he surcharge was applied but also to the i: 1968 levels. Capital gains registered a sharp drop position of the surcharge at the 10 percent rate of 18.9 percent, contrasting markedly with the 31.5 per- the' full year. For 1968, the .10 percent surcharge w cent increase for 1968 over 1967. in effect for only the last 9 months of the year amountit Income tax liability of individuals, labelled "income in effect, to a 7.5 percent surcharge. For 1969, t tax after credits" in table 1A and chart lB. totaled surcharge totaled $7.7 billion. This was less than $86.6 billion for 1969. This was $10.0 bllllon.or 13 per- percent based on the income tax before credits sho cent more than the comparable figure for 1968 and was throughout this report, partly because only 52.3 miii: the second largest single-year increase since the enact- of the 64.2 million returns with tax before cre ment of the Internal Revenue Code of 1954. The increase showed the amount of the surcharge. The smal In tax liability was associated with three Important number and also the smaller amount resulted from' 69 003 Individual Returns/1969 Returns Filed and Sources of Income Chart 1A Chart 18 Components of income Change. in number of returns, and iëlative change income, and tax, 198-i969 9% 1968 In 1969 adjusted gross income was distributed INCOME FROM OTHER SOURCES 17.3% 1969 as follows — Percent of Business and farm profit 5.6% Increase Dividends 2.6% 13% Sales of capital 13% astets 2.4% ] • Partnership profit 2.3% • Interest 3.2% Other income less "Adjustments" 1.2% With relative changes over 1968 of — Ii I/i / 3.4% Number of Adjusted Income tax returns R 1.8% (Millions) gross income (Billion Si after credits (B'i/ion S1 5, 1968 73.7 554.4 '.5, 76.6 '9 ':5' 1969 758 603.5 '9 86.6 was actually allowed in computing tax for surcharge purposes, the retirement income credit, and in some cases this credit may have been large enough to offset the income tax completely, and (4) for a few returns, including some for income years prior to 1969 or for Table LA.—RETIJRNS INCOME, AND TAXES, 1968 AND 1.969 noncalendar years, the surcharge may not have applied, vnunts in rnllljcr,z of dcl].crsj or may have applied at a lower rate. Ir,crease Cr Table 18. —NUMBER OF RETURNS BY MARITAL STATUS AND ADJUSTED CROSS '.,, a. .- 1966 1969 decrease I—), Uo9 over INcoME CLASSES, 1968 AND 1969 1966 I Taxable and ncctaxable returns) - (1) 2) (3) Adjusted gross income class and marital Charge, ..rler of ret"r.s, to.v1. 73,728,703 status 1963 1969 lo8t5 7234,3s 2,105,630 63,721,394 2,432,686 12,440,332 12,112,994 —327,006 (1) (2) (3) •to,_cted grosS income .esn deficit) 554,423 603,S46 49,126 All, adjusted gross income classes 73,728,705 70,834,368 2,105,620 S..s'ces Of ir.come: Joint returns of husbands and wives.... Selaries and wages 'gross) 41,344,129 42,429,633 1,065,509 451,005 Separate returns of husbands and wives. 2,798,324 2,737,413 Stslness and profession cc'. profit lea, 498,860 47,360 Returns of heads of households —61,921 net lcss.'a 2,395,694 2,579,643 464,046 28,920 30,412 Returns of surviving spouses 230,457 294,360 63,903 Farm net. profit less net loss 1,492 451 Returns of single persons 26,960,106 27,493,147 533,063 ?artnershp and Small BusIness Ccrporation 3,578 net profit less set ices tinder $5,000, total.1 31,943,014 31,400,265 13,415 -538,249 Sales of capital assets net gain less 13,693 238 Joint riturna of husbands and wives net loss 8,105,122 7,561,573 54),549 17,990 14,083 Separate returns of husbands end wives 1,967,824 1,810,761 -152,563 Dovidends (in adjusted gross income) Returns of heads of households 1,055,235 1,309,321 344,386 Interest received 15,222 15,740 518 Returns of surviving spouses 119,122 16,782 Returns of single persons 194,031 75,409 Sent end royalty netIncome less net loss.. 19,826 2,844 20,696,211 20,434,079 —262,1.32 Estates end trusts net income less net loss 3,475 3,335 —140 Other sources (net)1 1,138 1,418 280 $5,000 under $10,000, total 23,334,037 22,657,528 2,808 —676,479 2,298 —510 Joint returns of husbands ant wives 16,297,851 15,068,020 —1,249,831. Taxable income 302,800 388,820 Separate returns or husban and wives 710,072 735,092 25,320 Income tax after credits 36,020 Returns of heads or households 1,078,064 1,169,978 Selfemployment taI 86,568 9,930 Returns of surviving spouses 91,914 1,724 1,898 65,476 69,679 —15,797 Returns of single persons 5,162,544 5,634,759 472,215 'Includea income from pensions and annuities, ordizsay gain from depreciable prop- $10,000 w,dër $15,000, total erty, other property income or loss, and other sources net less atatutorT adjustments 11,985,301 13,649,392 1,664,391 to adjusted gross income. See "Other courses Joint returns of husbands and wives tions and Terms." (net)" in 'Explanation Of Classifica- 10,910,510 12,233,585 1,323,070 Separate returns of husbands and wives 83,880 129,501 45,621 SOTE: Auot detail may not add to total because of rounding. Returns of head. of households Returns of surviving spouses 194,072 221,272 27,210 of singl, persons 16,71.3 21,252 4,539 780,126 1,063,782 263,656 following: (1) taxpayers with small amounts of tax uf $15,000 or more, total 6,465,886 5,122,203 1,656,317 to $148, $223, or $293, depending on marital status, Joint returns of husbands sod wives Separate returns of husband. Snd wives 6,030,646 7,586,460 1,555,814 36,048 57,069 20,501 were exempt from the surcharge, (2) the surcharge was Returns of heads of households Returns of surviving 5pOUBU 68,323 89,269 20,966 9,146 8,898. -248 applied at an effective rate of less than 10 percent when Returns of tax was less than twice these amounts, (3) one credit 'Includes returns with no adjusted gross income. NOTE: Detail y not add to total because of rounding. 69 004 Individual Returns/1969 • Returns Filed and Sources of Income Chart 1C Change in number of returns by size of adjusted gross Income, 1960-1969 Millions of returns 10r-0 4 Increase over 1960 384% II Increase 80— - • overl96O -.-I'- I -; I. j I :-- 70 ___________________________ 25 60 2C 15 10 — Returns $5000 under $10000 5 — 0 I i I 4Cr All returns • •• z•• . •1 :- Returns under S5,000 I I LOW-INCOME TAXPAYERS MADE INCREASED USE OF HEAD OF HOUSEHOLD AND Filing as head of household or surviving spouse af- SURVIVING SPOUSE TAX RATES forded special tax benefits to the unmarried (widowec or divorced) taxpayer who was maintaininga househok The total number of returns filed increased by 2.8 for his or her children. Neither marital status coulc percent from 1968 to 1969. The Increase was due entirely be claimed on the short punchcard Form 1040A, usec to returns with adjusted gross income of $10,000 or through tax year 1968, so that a low-income persor more; returns with income under $5,000 and those with eligible to file as head of household or surviving income of $5,000 under $10,000 decreased by 1.6 percent spouse may not have done so because he chose to use and 2.8 percent, respectively. Chart IC shows that the Form 1040A. For 1969, with only one tax form available, number of returns with income under $5,000 declined many of these taxpayers may have made use of this more beneficial tax computation. steadily during the 1960's, while returns with income of $10,000 or more were increasing; the number of re- turns with income of $5,000 or more increased from 1960 I to 1966 then decreased from 1966 to 1969. MARRIED PERSONS FILEDSEPARATE RETURNS Table 13 shows that, for 1969, returns filed by heads MAINLY WHEN BOTH SPOUSES HAD INCOME of households and surviving spouses did not follow the general trend. In contrast to the moderate, 2.8 percent, When a separate return was filed by a married person increase for all returns, head of household returns who wished to file independently of his spouse, each increased by 20.2 percent and surviving spouse returns spouse reported his own income, exemptions, deductions, by 27.7 percent. Moreover, the increase was con- and tax. In certain cases, a married taxpayer used this centrated among returns with income under $5,000, filing method even though his spouse earned no income, whereas the number of returns for every other marital and he was thus entitled to claim an exemption for both status group in that income class declined. himself and his spouse. By filing separately, the tax- payer became solely liable for any tax due on his re- 69 005 individual Returns/1969 • Returns FiJed and Sources of Income able l,C.—SEPARATE RETURNS OF HUSBANDS AND turn, and solely eligible to receive any refunds. How- BY SPOUSE-FILING STATUS AND BY ADJUSTED GROSS INCOME CLASSES ever, unless his taxable income was under $500, he jostedgro0r.C0neC1e5 turns Soe filir.g sose notfiling ended up being taxed at a higler rate than if he had (1) (2) (3) elected joint return filing status. 6:0CC tctal 2,737,403 0,348,307 369,066 For the first time, on the 1969 Form 1040, the tax- a5le ret_Cr.S, total 2,152,742 1,946,376 206,366 payer filing a separate return was supposed to check er$l,...0 42,896 41,231 (') a special box to indicate whether or not his spouse was 52.003 3,0OO 252,650 291,232 230,602 271,405 22,043 19,827 also filing. Table 1C shows that of the 2.7 million re- 033:0 ..-.0er $4,000 ur.Oe: 5,0OO 365,837 291,080 325,44.4 260,623 40,393 30,407 turns of married persons filing separately for 1969, $4,000 240,035 225,550 19,485 only 0.4 million indicated that the spouse was not also 140,777 19,357 :30 order ev: orOer 5.3,030 87,Ccx 160,134 136,303 120,596 15,707 filing. s,::0 .nOnr $10,003 333 $9,030 ..-jer 111,724 70,333 99,208 63,239 12,516 (•) 39, onCe: $15,000 129,021 117,566 11,455 r0e: $20,000 29,057 25,813 3,179 PATTERNS OF INCOME VIRTUALLY UNCHANGED 1,439 on3er $25,000 11,119 9,660 4,538 737 OVER 2-YEAR PERIOD $25, 333 •o.0e: $33,300 5,325 555 533:30 rer $50,000 7,684 7,129 2,141 336 under $100,030 2,117 order $2300,030 4o7 213 1.08 193 35 23 In classifying a return for patterns of income tables, 30,33.. er 5so3,C0 0000.033 orOer $1,003,000 47 44 37 3 1 each source of income reported was classified as be- 38 5:, Cr OCTC longing to one of four categories. The four categories r.taxalle returns, total 024,601 401,931 182,730 used in classifying the returns were salaries and ,, uoted g° OtCOle 17,243 13,220 (—) 12,581 wages, business income, income from sales of property, 122,295 109,714 $..33 'er $1,330 125,324 38,490 115,205 36,834 60,892 and all other income (mainly from investments). $1,300 0303 $2,003 coder $3,000 u-Ocr 176,097 73,123 38,434 34,689 As shown in table 1D, somewhat more than half of 18,408 19,589 $3,300 under $4,000 $4063 under $5,000 37,997 19,987 9,819 14 122 all returns for 1969 showed only one category of income, $5,330 Cr more 12,595 8,641 and, as expected, in the vast majority of cases it was Returr.5 under $5,000 1,815,761 735,092 1,022,595 657,212 293,166 77,830 salaries and wages. Roughly one-third of the returns Return.. $5,000 under $10,000 Returns $10,000 under $15,030 129,501 117,845 11,656 6,334 showed two categories of income and these usually in- Returns $15,000 or more 57,049 50,655 cluded salaries and wages and "all other income," (.) An asterich in a cell, denotes that the estimate is nOt sho,n separately beca.,se which encompasses interest and dividends. Table 1,11 Cf 5.056 sanplthg variab1ity. However, the data are included on the appropriate tCla1o' Table OD.—.SELECTED PATTERNS OF INCOME BY INCOME CATEGORY (Money aS000ts in thousands of dCllftr.1 Total, all Four Income category returns One Two 5.ree category categor5es categories categorIes . (1) (2) (3) (4) (5) 81 - . OF RET'JRNS 75,834,388 39,039,584 26,686,037 8,223,966 1,834,301 Totals, all income categories 1,834,301 67,855,186 35,445,448 23,644,650 6,930,787 Salaries ad wages (gross) 4,166,129 1,834,301 10,612,015 1,038,687 3,172,898 B0500eos net income or 1oss 1,834,301 9,355,2E3 9,259 1,854,387 5,457,336 Sales Cf property net gain or baa2 24,301,139 7,917,646 1,334.301 36,649,276 2,596,190 Other saurces (net)' 610,660,027 234,927,680 245,299,683 117,988,682 42,244,432 Totals, all income categories 208,786,714 76,658,734 21,936,719 498,864,696 191,512,528 Salur005 and Iges (gross) 14,274,190 20,433,312 8,377,148 47,682,042 4,547,392 uoineos 'et income or 10551 6,731,867 5,567,094 14,635,596 23,240 2,313,395 Sales of property net gain or l05s 19,925,384 14,114,769 6,393,521 49,276,194 8,844,,520 j Other source. (net)3 11r.c1'ldes business or profession, fare, partnership md SaaU Business Corporation net profit or net loss. of property other than capital assets' 2Includes gain or loss from sales of capital assets, &i5 from sales of depreciable property, and gain or loss from sales and annuities, other sources net income or loss, 3lncludes dividends in adjusted gross thc, interest received, rent, royalty, estate and trust, net income or net loss, pension and income or 5,oss not allocable. category, the total amount of 'Entries in this portion of the table do not overlap, as an example, for the 23,644,650 returns with salaries and wages and one other income salarIes and wages of these returns was $2Ce,786,72.4,. Table IC. —NONTAXABLE RETURNS BY ADJUSTED GROSS INCOME CLAS(ES (Money amounts in thousandS of dollars) __________ _________ Number Adjusted I -' Exemptions bl Surcharge rem credits Adjusted gross income classes returns deductions Number AmoISlfl (5) (6) (7) (3) (9) (3) (4) Total (1) 12,132,934 1l5;376,575 (2) 8,103,384 28,976,996 17,386.198 665,758 128,966 8, 6,1,15,772 26,563, 5.5,938,160 240,278 33,8l 3.66 34,039 Under 11,708,2 112,,6,126 224,740 34.861 2,097 36,960 364,981 2,288;967 976,818 2,251,529 1,350,917 $5,000 under $10, 1,,l47 13,220 1,200 61,320 66,759 11,904 23,993 283,232 219,740 $10,000 under $15,000 67O4 53 59,667 33,800 133,981 4,393 13,998 738,270 791,053 $13,000 or more 1Adjusted groms income lees deficit. 69 006 Individual Returns/1969 • Returns Filed and Sources income presents data for each of the fifteen combinations of ment income for certain types of investments, and one to four categories of income. It shows virtually taxes paid to foreign covernments. no change in the percentage distribution of returns While nearly all nontaxable returns showed moc over the fifteen patterns of income since 1967, the last levels of income, there were also 745 returns that sho' year for which such data were presented. adjusted gross income of $100,000 or more. Total justed gross income on these high income retu amounted to $338.0 million. The major reason for t NONTAXABLE RETURNS nontaxability was the $432.1 million of personal ded tions reported. Data published for tax year 1968, Characteristics of nontaxable returns are summa- last year for which we tabulated deductions by t rized in table IE. About one of every six returns was revealed that over half these deductions resulted f: nontaxable, that is, the returns showed no income tax contributions to charitable, religious, and educati after credits for 1969. About 97 percent of these returns organizations. Personal exemptions totaled $1.6 mu indicated adjusted gross income under $5,000. The for 1969. Only $295.9 million of these deductions dollar amount of exemptions on nontaxable returns exemptions were subtracted from adjusted gross inc with adjusted gross income under $5,000 exceeded the in the computation of taxable income. The amount adjusted gross income, indicating that many of these over was in excess of adjusted gross income and c lower income taxpayers had less than $600 of income for not be used (althoughsomeofthecharitable contribut each exemption to which they were entitled. in excess of income may have been carried over and Table 1E also shows that, for taxpayers with income in a later year). After deduction of these amoupts, of $15,000 or more who paid no income tax, total de- of these high-income returns had no taxable income ductions exceeded adjusted gross income. Some tax- 90 had taxable income of $42.1 million in aggreg payers reported deductions in excess of their income On the 90 nontaxable returns with taxable incc in order to qualify for the charitable contribution carry- income tax before credits of nearly $27.8 million over. The carryover provision allowed taxpayers to assessed as well as the additional surcharge w "use up" in any of the 5 succeeding years that portion totaled $2.8 million. These assessments were, hove of their contributions to certain charitable institutions riore than offset by $30.7 millionof statutory tax cre which could not be deducted in the current year, pro- of which the major type, the credit for tax paid vided they were within the percentage ceiling limitation foreign government, amounted to $29.2 million. for each year. More detailed information on nontaxable returns is shown in basic table 1.9. It shows that the 12.1 million DWIDENDS ON 4.5 MILLION RETURNS TAX FRE nontaxable returns consisted of 0.5 million returns with no adjusted gross income, 11.2 million returns with Each taxpayer may have been eligible to exclud' positive, adjusted gross income which was fully offset to $100 of his dividend income in computing adju by personal deductions and exemptions, and 0.5 million gross income. The logic for this preferential treatr returns with taxable income but with the tax offset by was that dividends represented the profits of U.S. co credits. Tax credits Included those granted on retire- rations that had already been taxed at the corpo Tabi. iF. —DiVIDENDS BY ADJUSTED GROSS INC CLASSES (one3r eounts in thoujindi of doUazsJ 4 tiC - foreign dividends receiv.d. total Divid od . i ° Dividends in gros inc Mjuated gross ince clenneS N,b.z Ncb.r of Ntb.D 0* Mc- A,o1nt return. returns return. (1) (2) (3) (4) (5) Total 72,160,275 16,926,1.60 iioo'n 1,186,856 7,638,789 15,' 85.046 112,243 80,317 7,966 13,308 Mo adjusted gross in 121,895 108,620 7,610 66,605 Under $600 55,3.33 166,787 12,775 126,507 $600 under $1,000 184,840 633,810 256,319 585,648 50,810 439,915 581,891 314,441 550,231 51,469 420,433 $2, under $3,000 588,273 376,139 543,53.0 53,533 420,016 $3, under $4,000 334,863 480,797 300,047 456,009 43,959 $4,000 under $5,000 43.8,422 523,098 49,335 372,995 s,000 wer $6, 549,788 499,876 314,667 471,377 42,663 308,938 $6,000 under $7,000 347,492 521.529 47,792 338,739 uz,aer 552,086 350,722 369,026 559,322 49,840 $8, under $9,000 597$7 362,250 410,398 592,688 54,646 $9, under $10,000 2,796,413 1,738,592 2,666,629 245,957 1,464.846 1, $10,000 under $15,000 1,678,971 1,375,696 1.623,176 174,666 954.542 1, $15,000 under $20, 811,967 1,047,680 794,219 96,870 526,387 $20,000 under $25,000 914,375 413,427 54,642 306,829 $25, under $30000 419,180 598,535 2,242,713 592,891 85,569 483,428 2, $30, ner $30,000 282,320 2,522,333 280,825 44,179 252,224 2, $50,000 under $100,000 1,844,603 58,570 9,625 55,996 1, $100,000 under $200,000 58,82,3 13,714 1, 14,071 1,142,298 14,020 2,348 $200,000 wtder $500,000 421,351 2,41.3 1.06 2,372 2,419 $500,000 under $l,,000 $1,000,000 or sore 1,175 576,430 1,171 196 1,160 — 2,676,552 1,440,381 2,491,122 228,122 1,863,647 1, R,etwna under $5,000 1,860,005 2,668,016 244,276 1,733,644 1, Returns $5, under $l.0, 2,821,867 1,464,846 1, 2,796,413 1,738,592 2,666,629 245,957 Returns $l.0, ,z,der $15,000 3,867,441 11,887,482 3,780,712 468,301 2,596,652 11, Returns $15,000 or .ors NOlE: 4ouni detail —•. not •dd to total. becauSe of rounding. 69 007 - Individuat Returns/1969 • Returns Filed and Sources of Income Table 1G. —SELECTED CHARACTERISTICS OF RETUR%S 145TH ECRM 14-2 ATTACHED BY ADJ1.JSTEO GloSS 11C055E CIASOES [Taxable and osotaushlO to-nc; o.o.:.cyae:usts in tI;000a.;S :" Ocilurs) I Salarie ad age I to.)' tt C a t a ._—na a — A.00S1ed gross income Adjusted moose tax Sto.a net txos clo.sSes Iirsbor of after butler Cf a_nd n.)ter tX ._ ._—.C. returns gross lumber of returns disGust credits retorts At.'"' 000pc-r.sat:or.2 ir.come 200rlf ,3000f retns (1) (2) (3) (4) (5) () (3) () (10) (11) (2) (:3, Ittal 66,701,493 535,202,513 66,6,259 493,740,255 74,736,365 45,053,719 75,169,311 5,7D3,5;5 492,243,227 45,435,901ag1,tld e2,t':,63_ 57,997,392 4,262,151 25,247,362 6,956,324 25,333,133 d,122,316 6,ddd,224 24,424,22 2,627,237 3',dor $',030 25,393,391 5S,O,295 25,045,299 2C,477,6 23,933,535 149,553,569 23,072,221 23,323,311 :3,234,333 'o,'_do,363 $5,::: onler 910,203... 20,303,505 155,145,349 20,794,315 149,909,153 17,129,042 23,721,223 $10,330 onOer $15,000.. 12,521,922 156,770,219 12,917,125 150,á7O,2t 20,41.0,367 12,522,509 22,775,34 .2,521,456 150,333,322 :2,357,217 22,922,30: :2,305,046 5,1'2,SC'. 7,552,436 134,230,022 7,303,247 24,d:s,9:.6 2,133,324 915,303 or sore 7,092,712 165,222,450 7,037,17 135,243,33s 32,995,347 7,2e3,024 24,75,24' °:rcl_dex excess social socurity taxes withheld. tax. 23 malL number of returnS (499) had wages of other somper.oaticn suteot to 1306 but 030 XuloCt to. tt'O . 306300004 Cf ur.cone level. Dividends from foreign corporations were not Employees in turn were required to file this form with eligible for the exclusion. In the case of a husband and their tax return and to enter the amounts of wages, wife filing a joint return, each spouse could exclude up other compensation, and income tax withheld on the re- to $100 of eligible dividends. turn. Columns 8 through 13 of table IC show these Table iF shows that $1.2 billion of the $16.9 billion amounts tabulated along with the associated return of dividends reported on tax returns were excluded from counts. adjusted gross income. Of the 12.2 million taxpayers The wages subject to withholding and, as explained reporting such income, 4.5 million excluded the entire below, most of the other compensation shown on Forms amount, indicating that their total dividend income was W-2 were to be entered by taxpayers as salaries and less than the allowable exclusion. wages on Form 1040. Income tax withheld was entered as such on the return. Columns 1 through 7 of table IG show amounts tabulated from Forms 1040 to which Forms W-2 were attached. The amounts of salaries W-2 WAGE AND TAX STATEMENT PROVIDED and . wages and income tax withheld, taken from Form 1040, were closely related to the corresponding amounts Tabulations of items shown on Form W-2, the wage and of wages and other compensation, and to income tax with- tax statement supplied by the employer, are included in held, taken from Form W-2. this report. Although approximately equal, the salaries and wages Table 1.19 shows that 130.3 million Forms W-2 were from the return and the attached Form W-2 statement attached to 66.7 million returns, an average of two per were not entirely comparable. Form 1040 salaries and return. Thirty-two million returns, or 48 percent, had wages included all salaries and wages whether or not one Form W-2 attached to the return. About 19.5 million subject to withholding except tax-exempt salaries earned returns, or 29 percent, had two Forms W-2 and the re- abroad. They also included directors' fees, bonuses, maining returns, 15.2 million--23 percent of the total-- and excess reimbursement for employee travel ex- had three or more W-2's per return. Joint returns ac- penses. Form W-2 wages did not include wages paid to counted-.for a much higher proportion of multiple Forms employees of foreign governments or international or- W -2 '(62 percent) than nonjoint returns (39 percent) re- ganizations, wages paid to agricultural laborers, and flecting the employment of both husband and wife and wages paid to household employees because none of multiple jobholding by one or both spouses. The latter these were subject to tax withholding. (Agricultural is more clearly indicated by joint returnswithmore than laborers and household employees were subject to two Forms W-2 attached. Of the total joint returns with withholding of social security taxes, however, and are Forms W-2 attached, 38 percent indicated one W-2, 34 thus included in the FICA tax data.) In addition, Form percent indicated two W-2' and 28 percent indicated W-2 sometimes included tax-exempt salaries and wages more than two W-2's. In contrast, 61 percent of non- earned abroad. / joint returns had one Form W-2; 23 percent, two; and Other compensation, which is combinedwithFormW-2 16 percent, more than two. wages in column 9 of table 1G. included commissions paid to certain self-employed individuals, travel allow- Employers issued Form W-2 to their employees to ances, and employer payments (to the extent that they indicate: were not tax exempt) toward their employees' life (1) the amount of wages paid subject to withholding insurance. On separate returns of husbands and wives for Income tax as well as other employee compensation; in community property States, W-2 income and tax (2) the amount of Federal income tax withheld; withheld were often twice the amounts entered on the (3) the amount of social security taxes (FICA) return, since each spouse reported only one-half the withheld on wages covered by social security. couple's combined wages on his or her return. 9 OO Individual Returns/1969 • Returns FIed and Sources of Income Table IH. —SELECTED SOIRCES OR INCOME BY MARITAL STATUS OP. 9(5 ' TAXPAYER rs ,. t:._ Cou.S 11' retltrr.C; ..r.ty •t5 in :.ll1ir.s o: 4cflsrs. IC.ir.t returns 211 rCtunc uf husban4s end Seletud sn..rces of joenne . , Flelw-n JO 7.lCr (1) Arsur.t )2) luster (3) (4) S'usl (5) Colt () ) luster kuC'.lt (3) 1:_nIne :9, A3usted gr005 inosnu (less th:ficit) 75,424 42,430 470,952 33,405 122,193 17,253 43,44 '047 44 Sslerles 0o2 .'uec (4rsnc) 67,455 4,043 35,107 3*9,790 27,245 123,104 15,937 43,232 33(11 45 Business or Set zrcfit 4,17 33,53.1 4,114 30,026 793 3,096 442 2,311 211 5 let loss 1,171 2,720 952 2,195 223 505 129 331 47 Fern: . let profIt 1, 3'/ 6,142 1,135 5,43* 382 714 243 441 3.29 let 14_ 1,155 2,563 1,112 2,247 143 279 90 176 13 Sales Cf ospetal lends: let gain s,'l u.374 0,"79 12,444 1,776 3,195 744 1,293 1,325 : Net lcss 2,111 1,433 1,591 1,3.3 51 379 293 2:3 2o1 93 - Oividen43 in 53Jus1n3 frell in.:r.e 7,015 1,4J 4,770 9,724 2,2$s 5,519 1,523 1,728 . Interest receilo2 32,33.2 4,olv 21,294 12,573 13,433 9,722 4,111 48 2,117 4,322 241 PensIons e.-.d o:.vlitles (toxatle pcr'.inn) 3,244 4,918 2,015 4,710 1,229 2,164 743 1 Estates 2r_ntn; 151 14.4 Bet insure 1,7 1,405 213 742 214 743 24 Netlsso Id, 42 24 43 16 2s 5 4 11 BITE: iC't1 no:. I_t Oto 10 'LIaL In addition, some taxpayers with income from pensions Table 11.—JOINT RETURNS WITH WAGES AND OTHER COMPENSATION FROM FORM W-2: WAGES OF HUSBANDS AND WIVES BY ADJtISTED CROSS 115007 and annuities or from partnerships attached statements CTSSES to their returns on these earnings, using forms re- (lusterS in oil.llons of rnI'_nr.S; n.snvy az:'.r.ts .0 L11.to I s.ars sembling the W-2. These earnings are thus reflected A43ssted gras sr.e.ce ..a4sos in the Form W-2 compensation statistics. In general, .eceal 11.3cr- I,112 the Form 1040 data on salaries and wages conform , - $5,o20 ._.r 530,030 .o'._er did.: *11,33 more closely to the concept used in other statistical (1) (2) (3) :) (5, series than do the Form W-2 data. Income tax withheld tends to be slightly higher on Ns.,ber of TCV,L returns 37.5 5.3 13.9 11.7 Form 1040 than on Form W-2, since Form 1040 with- Wages and Other 4csper.catio:.: f,asunt holding includes ''excess FICA withheld," the amounts Average u.1ars.. 413.0 11,031 23.2 3,443 124.2 1,c' 1.42.9 1.2,234 I. 11 in excess of $374.40 withheld from the taxpayer's W,DSI wages for Social Security purposes. On the other hand, Nsaber of returr.s 37.7 4.5 13.2 11.4 95 56 5 in the case of separate returns from community property Percent of total Wages and other cccper.satEsr.: 75 States, the amounts of withholding shown on some re- Amount 319.) 1.3.3 47.4 11.2.2 31 Average dollars.. 8,954 2,945 6,626 9,227 19, turns may have equaled only one-half the amount shown WIVES on the W-2, Bomber of returns 19.2 2.2 4.3 4.9 . While the tax return does not specifically call for an percent of total. Wages and othe cpenSation: 11 41 41 56 indication of sex of the taxpayer, a determination was Amount Average dollars.. 93.7 4,683 6.9 3,224 19.8 3,003 30.7 4,493 9 made for this report on the basis of evidence on the NOTE: DetaIl. 553 not add to total due to rundlng. return such as the taxpayer's title (Mr., Mr.,., Miss); marital status (a joint return indicates one male, one female taxpayer); the taxpayer's first name; and, in the case of self-employed taxpayers, sex designation sup- Average salaries and wages on "other" retL plied on Schedule SE. On the basis of this information, (i.e., nonjoint returns) filed by men equaled $3, returns were classified as returns filed by individual about $250 higher than the average salaries and wo men, individual women, or as joint returns filed by on "other" returns filed by women. Men also married couples. In the case of joint returns, attached higher averages for the following types of inco Forms W-2 were used to separate salaries and wages business or profession, farm, sales of capital ass of husband and wife. and pensions and annuities. On the other hand, returns of women indicated higher averages for divic and inter,pst Income, and for Income from estates INCOME OF MEN, WOMEN, AND MARRIED COUPLES trusts. - While the number of "other" returns filed by Table 1H indicates that the average adjusted gross was about the same as the number filed by women, ti income shown on returns filed by unmarried men or by were noticeable differences in the number of retl married men filing separately- -$3,966- -about equaled by source of income or loss. For example, twic the average adjusted gross income of $3,973 shown on many women as men reported dividends and pen returns filed by unmarried women or by married women and annuity income while three times as many wo filing separately. Average adjusted gross income re- as men reported net income from estates and trt ported on joint returns of husbands and wives ($11,100) Additional detail relating to returns filed by men was, however, more than two and one-half times that women filing separately is shown in tables 1.21 of "other" returns. 1,22. 69 009 Individual Returns/1969 • Returns Filed and Sources of Income It is not possible in the case of joint returns, to reported on joint returrs was S,954, as Compared attribute the detail of every source of income to either with an average $4,883 for their wives. Just over one- the husband or the wife. However, by making use of half of the wives filing jointly with their husbands the information supplied on attached Forms W-2, one were wage earners. can determine the salaries and Wages earned by each, Chart 1D indicates that among couples with incomes Table 11 indicates that the average salary of husbands under $5,000, only about 40 percent of the wives worked. On the other hand, 23 percent of the wives in this income .. group earned more than half of the couple's combined ChartiD wages. The earnings of husbands and wives tended to be closer on returns with incomes of $15,000 or more; Joint returns witl husband's wages* 58 percent of the wives in this group worked, and on as a percent of total wages roughly one-third of the returns, the wife earned be- tween 25 and 50 percent of the couple's combined v.'ages. by AG1 cEass Chart lE shows that women earned only about $94 billion of the $413 billion in wages shown on joint re- Percent distribution of returns turns. In contrast, the wages of men on non joint returns Husband's wages were only slightly higher than those of women, reflecting a more equal participation of male and female Wage 23 earners filing nonjoint returns. The average shown 11 on Forms W-2 of men ($3,836) and women (53,493) Under 7 8 filing nonjoint returns also tended to be relatively close 50% (see table 1.18). 29 31 21 Chart 1E 14 50% Wages and other compensation under ,, 75% from Form W-2 by sex of taxpayer Billions of dollars 22 Men 19 20 19 •11 Women 75% under 100% 319 59. 55 •• H 42 42 , : 100% I. , • - oftotal . , . :: Ii ii 69 010 Section 7 CONTENTS Sources of data, 353 Description of the sample and limitations of the data. 353 Description of the sample, 353 Sources of the Data, Sample selection. 353 Method of estimation, 354 Limitations of the data, 355 Description of the Sample SampUng variability, 355 Other limitations due to sampling, 355 Sample management and non-sampling controls, 355 and Limitations Text tab/es 7A Number of individual income tax returns in population, number in sample, prescribed and achieved sampling rates by sample class. 1969. 354 of the Data 78 Relative sampling variability at the one standard deviation level of esti- mated numb of returns. 1969, 355 7C Relative Sampling variability at the one standard deviation level for ft' 70 Relative sampling variability at the one standard deviation level sources of income and loss, exemptions, taxable income, and tax items, by number of returns and selected income and tax items, by 125 largest adjusted gross income classes, 357 standard metropolitan statistical areas and sumary adjusted gross income classes. 359 SOURCES OF DATA during the tax year. Gross income, for purposes of filing, included income earned from sources outside the United Individual income tax data in this report were esti- States, even though the income wasexempt from tax. How- mated from a sample of unaudited tax returns, Forms ever, in the case of individuals who were residents of 1040, filed by U.S. citizens and residents and revenue- Puerto Rico, gross income, for purposes of filing, did not processed during the calendar year 1970 in the service include income derived from sources within Puerto Rico, centers and district offices of the Internal Revenue Serv- except amounts received for services performed as an ice and at the Office of International Operations in the employee of the United States Government. National Office, Individuals who had tax withheld from wages, but whose The statistics in this report are intended to the total returns for income year 1969. Whilerepresent the over- income was less than that required for filing, usually filed to obtain a refund of tax withheld, although they were not whelming majority of returns revenue-processed in 1970 otherwise required to file. were for calendar year 1969, a few of them were for non- calendar years ended .during 1969 and 1970, and some others were delinquent returns for prior years. Prior DESCRIPTION OF THE SAMPLE AND year delinquent returns were used for the 1969 statistics LIMITATIONS OF THE DATA in place of 1969 returns processed after December 31, 1970. In general, the characteristics of returns due but Description of the Sample not yet filed could be represented best by the returns for previous income years that were processed in 1970. The data presented for individual income tax returns for All returns processed during 1970 were subjected to tax year 1969 are estimates based on a stratified sample sampling, with a few exclusions. The exclusions con- of all Form 1040 returns processed in the calendar year sisted of tentative returns and amended returns for in- 1970. The total sample consisted of 254,166returns, about come year 1969, and certain returns for prior years. three-tenths of one percent of the total numberprocessed Tentative returns were not subjected to sampling because for the year. the revised returns may have been sampled later on, while amended returns were excluded because the original re- Sample selection turns were already subjected to sampling. With the ex- All returns filed with the seven Internal Revenueservice ception of returns filed at the Office of International Op- erations, returns for income years prior to 1962(gener- centers, the 58 djstrjct offices, and with the Office of ally speaking, a very small number) were excluded to International Operations were initially grouped for reve- nue processing based on the presence or absence of busi- simplify sampling procedures. ness schedules. However, special criteria were needed Art individual income tax return was required of (1) for sampling. every citizen or resident alien of the U.S., and every For this purpose, service center and district office re- bona fide resident of Puerto Rico, under 65 years of age (including minors), who had $600 or more of "gross in- turns were stratified by computer in each service center come" for the year, (2)everycjtjzenorresjdent 65 years based on size of adjusted gross income or deficit, total of age or over who had $1,200 or more grosà income for business receipts, and the largest source of income or the year, and (3) everyperson, regardless of age or gross loss. Sampling of nonbusiness returns was based on size of adjusted gross income or deficit or the largest source income, who had self-employment income of $400 or more of income or loss; whereas sampling of business returns 353 69 011 354 Individual Returns/1969 Sources, Sample, and Limitations Tab1 7A.—'LMBER OF INDIVIDUAL INCOME TAX RETURNS IN POPUlATION, NUMBER IN SAMPLE, PRESCRIBED AND ACHIEVED SAMPLING RATES S epIc t..o . BY S°Y.PLE ClASS, 1969 :1 :. :e;Ir3 ..,. PepulstSCn le_eple (1) (3) Tctal 76,431,356 24,166 sr1esir.ess reeurr.s (.p:ed by size Cf adJusted gross locose Cr largest izeurse itee), te'.el 67,466,666 141,767 /,0 jutted gr.rss locate or largest thcooe lIce— 7rder $10, 42,507,5.26 $1,C0 $15,303 23,132 .o30o .ccc6 535,303 order 523,373.. 9.3,300 21,596 .O1, .::g 4,255,7$7 21313 . $23,330 o..:er $5300' .3,003 under 5030,0)3 2,330,Y78 16,330 737 .07 5130,003 tender 5.203,000 130 . $23O333 end over 1.4,353 17, 502 .333 2) 14,465 14,465 13.33 53s110t5 rete,rres (storied by cite Cf edj1.stei cr005 icc toe, lorgest ir,ctoe lIce, cr0 loolness receipts), total 6,923,335 112,231 Adjusted grzca boccus or lurgest locate item— and Suslreesc recelpts_ Soder $10,330 lode'. $20,030 4,444,419 13,333 .003 .003 $15,030 under 615,31) Coder $53,030 Under $10,730 0,300 under $53 O3 2 201 17° 13 '97 . 36 . $15,003 under $23,300 lode'. $103,033 330cr 53.5,030 $50,030 u..er 530,0)3 I 1 020 96 13, 279 . 3 .13 , $20,003 order $30,330 Lode'. $250,030 Under $20,000 $100,030 under 2250,°03 720,151. - 13,7'S . -9 .319 334,341 15,012 .51.5 $50,030 under 5335,500 Coder 553,030 Coder $750,033. 3,300 undc-'. 5755,73' ' 137 °'b '3 71.6 ' .303 . 5103,2-30 under $233,030 Coder $1,130,3' Under $100,030 23 '913 14'227 .)3 51,3)0,333 .45.2 $230,730 sod Over unenent 330cr 5230,00' $J.,003,O)3 15 '762 '5 7°2 - ' .7• - 1. .. Retenr.s sampled by size cc adjusted grzss 33cc-ne, tcta: 21,335 140 AdJustei gross locate— Under $50,303 $53,310 and 21,263 42 126 42 .035 1.300 .,, 1.oJ was based on (1) adjusted gross income or deficit, or sample stratum. However, none of the returns was re- largest source of income or loss, and (2) total business assigned to a sample stratum which called for a larger receipts. In order for returns to fall within a sample weight than that required by the sample stratum in which stratum, all sampling criteria for that stratum had to be it was originally included. satisfied. Returns filed with the Office of International Operations Method of estimation fell into two groups: (1) Returns for income year 1969 were computer-designated at the Mid-Atlantic Service The total number of returns per stratum was obtained Center based on the criteria previously stated, and (2) from counts of returns filed at district offices and service Returns for income years prior to 1969 were selected centers throughout each of the seven Internal Revenue manually in the National Office based entirely on size of Regions and at the Office of International Operations. adjusted gross income. The adequacy of response was reviewed, by sample In all seven Internal Revenue service centers, the actual stratum, by applying the prescribed rates to the number selection of returns was accomplished using specified of returns actually received from each location. When ending digits of an individual's social security number receipts differed considerably from the number expected, randomly chosen according to the sampling rate pre- a followup was conducted. scribed.,,for that stratum. In the Office of International Sampling weights were obtained by dividing the number Operations, returns for income year 1969 were selected of returns filed per sample stratum by the number of using the individual's social security number, whereas sample returns actually received for the stratum. the returns for income years prior to 1969 were selected Achieved sampling rates varied sufficiently among Inter- using account numbers assigned to the returns shortly nal Revenue Districts to necessitate using different after they were filed. sampling weights for each District for the production of All sampling criteria and strata are described in table tables with geographic distributions. Therefore, totals 7A along with the number of returns processed per in national tables/iffer somewhat from corresponding stratum, the number of returns in the sample, and the totals derived from State data. prescribed and achieved sampling rates. All sampling weights were converted to integer weight- Differences between the prescribed and achieved ing factors which were then applied to each sample re- sampling rates occurred for the following reasons: turn by a procedure exemplified as follows: if the achieved (1) Not all returns designated for the sample could sampling weight was 10.28 in a given sample stratum, 28 be obtained even after followup, percent of the sample returns in the stratum were given a (2) Social security number ending digits used for weighting factor of 11, and 72 percent, a weight of 10. sample selection were not distributed equally throughout. Integer weighting allows detailed weighted frequencies each Internal Revenue Region, to add consistently to their appropriate totals in all tables (3) If the characteristics of the return varied con- since no rounding is involved. This facilitates later re- siderably from the criteria of the assigned sampling view of the data and assists users in following the same stratum, then the return might be reassigned to another frequency from table to table. However, integer weights 69 012 Individual Returns/1969 • Sources, Sample, and L. 355 ti Table 78.—RELATIVE SAMPLING VARIABILITY AT THE ONE STANDARD DEVIATION LEVEL OP ESTIMATED NUMBER OF RETURNS 1969 may also be used foi returns not classified by size of gersaith 4nznc v adjusted gross income. Estizated reunion inder 510,0:0 l5,OOO $20,000 $30,003 $50,000 $100,000 The conservative nature of the relative sampling van- of retures under under under -under .r.dnr abtlity estimates shown in table 7B may be illustrated by ] () I lO,00O eioio 2O,C0O $30,000 $50,000 $100,000 5203,000 (P,,c,,) comparing an estimate from column 1 of this table with the calculated, more precise, relative sampling vari- So () (1) (2) ( :) (2) (1) 17.3 ability for a similar number of returns shown in table 100 200 (1) () ( :) (1) (2) (1) (2) (1) (1) 33.0 21.2 12.2 8.7 7C. If 5,000,000 were the number of returns with ad- 500 1,000 (1) (1) (1) (1) (1) (2) (2) (2) (2) (1) 13.4 9.5 5.5 3.9 justed gross income under $10,000, then the relative () (1) 31.5 26.7 26.7 6.7 2.7 sampling variability obtained from column I of table 7B 2,000 5,000 () 33.3 19.9 16.9 16.9 4.2 1.7 would be expected to be less than 1.8 percent. But the 10,000 ( :) 23.5 14.1 11.9 11.9 3.0 1.2 conservative nature of this relative sampling variability 15,000 33.3 1°.2 11.5 9.8 9.8 2.4 1.0 20,000 2S.9 16.6 10.0 5.4 8.4 2.1 0.9 estimate may be illustrated by comparing it with the 25,000 50,000 25.8 18.3 3.1.9 10.5 8.9 6.3 7.6 5.3 7.6 5.3 1.9 1.3 0.8 3.5 calculated, more precise, relative sampling variability 100,000 12.9 7.4 4.5 3.8 0.9 0.4 estimates in table 7C for a similar number of returns in 8.2 4.7 2.8 2.4 2.4 0.6 (2) 250,000 500,000 5.8 3.3 2.0 1.7 1.7 0.4 (2) a specific adjusted gross income class. Thus, table 7C 1,000,000 4.1 2.3 1.4 1.2 1.2 0.3- (2) shows that for the 5,139,934 returns in the ''$1,000 under 1.8 1.0 0.5 0.4 3.4 (2) (2) $2,000" adjusted gross income class, the relative sam- S,000,000 10,000,000 1.3 0.7 (2) (2) (2) (2) 1Sa.epla too onull to yield reliable estioste of sa.np1ir variability. (2) — pling variability is only 1.68 percent. 250t applicalle since the estImated nnber of returr.s is greater than population F requencies and amounts considered subject to excess - estimates. lye sampling variability are not shown in the tables al- though they are reflected in the appropriate totals. Where do not have the same effect on dollar amounts. This is sampling variability was judged to be excessive, data in because dollars per return were later rounded to thous- particular cells have been deleted or have been com- ands during statistical processing. Nevertheless, efforts bined for a group of cells. The data were combined in were made to establish ''control totals" of those dollar such a manner that the combined sampling variability amounts that appear in more than one national table and was not considered excessive. Where deletions were these totals were substituted in other tables for the made in tables, the applicable cells are noted with an convenience of the user. asterisk. Where combinations of data were made, the A comparison of the estimated number of returns shown combined totals are presented beside the bracketed cells in the national tables of this reportwith the number of re- to which they relate. turns reported filed, as shown in table 7A, will disclose slight differences. These differences occur for the follow- ing reasons: (1) an estimated 555,500 returns were ex- Other limitations due to sampling cluded fron the tables because they showed no income information and (2) returns were classified into the proper A dash, rather than afrequencyoramount,in any given size classes during tabulation regardless of the strata to table cell indicates either that there were no returns with which they were assigned for sampling purposes. the particular characteristic, or because of its rarity, instances of the characteristic were not present among the returns selected for the sample. However, for sta- Limitations of the Data tistics based on returns selected for the sample at a rate of 100 percent, a dash indicates a presumption of no re- Sampling variability turns with the particular characteristic. Unless based on all of the returns in the population each entry in the tables of this report is based on a sample and Sample management and cai be expected to differ more or less from the corre- non-sampling controls sponding value that would be obtained by aggregating data An extensive system of sample management and con- from the total number of returns. A statistical measure trol was used by the National Office Statistics Division that pertains to the difference that might be expected to to insure the selection of the prescribed sample and to result is called the "standard deviation oftheestimate," provide counts of the number of returns filed in each The "relative sampling variability" is the standard sample class. Sample controls for the most detailed deviation of the estimate expressed as a percent of the sampling groups were maintained for each Internal Reve- estimate. The standard deviation when added to and sub- nue district ffice. tracted from the estimate provides the computed upper In editing, transcribing, and tabulating the information and lower limits within which approximately two out of from the sampled returns, checks were imposed to im- three estimates derived from similarly selected samples prove the quality of the resulting estimates. Returns that would be expected to fall. Table 7C at the end of this sec - showed data in accompanying schedules hut not on the tion, shows the relative sampling variability of selected appropriate lines of the return forms and returns with frequency and amount estimates based on the standard obvious mathematical errors were ediled n ud projx' r I formula. "Upper limit" relative sampling var4ability adlusted. estimates based on a special formula nrc shown In Inith' hit' illilihhlS' I1 hit' tilniltilhi ii i'tIhhhiij 1t,'i t'itii'iI II liii 7B for frequency estimates in general. 'l'hcse .'1CefltM hiil'iuiiI I(eveitut' it V l&i' tiiIt't ', •iiiI'jtt Itt vi'i I are somewhat higher than ones which would have been fleatlon (niid cu ii'i't' I k'ii cuiisIiieiil whit j'iecthI't't1 1 yielded by the standard formula. Column 1 of table 713 l)lni. Under Ilk' ithin, whik'l, witH ilcxlI'l(' ;ectttdhi1 Itt tiw £9 O1i3 356 Individual Returns/1969 • Sources, Sample, at ..,1i,itations proficiency of the editors, screening and fractional sam- proper balance aflu r1acionships among the return it pling were used to determine the returns to be verified. and statistical classifications were maintained. In order to provide measures of accuracy of the sta- Finally, prior to publication, all statistics were tistical processing and secure greater consistency among viewed for accuracy and reasonableness, in light of the processing centers, a sub-sample of the returns and Visions of tax law, taxpayer reporting variations abstract sheets were independently reprocessed in the limitations, economic conditions, comparability Statistics Division. Data generated under this program other statistical series, and statistical techniques were utilized to clarify the editing instructions and to in data processing. inform the processing centers of the findings. However, the controls maintained over the sele Keypunching of all data was also key verified in the of the sample returns, the processing of the source service center. Prior to tabulation at the Internal Reve- and the review of the statistics did not completely el nue Service Data Center, numerous tests for internal nate the possibility of error. In addition, practica consistency were designated by the Statistics Division and erating considerations necessitated allowance of rea were applied to the data by computer. This assured that able tolerances in the statistical processing of the / 69 014 Section CONTENTS Standard metropolitan statistical areas, 179 Other geographic classifications. 182 Compensation reported on Forms W-2, 182 State and Metropoifta Text tables 5A Number of returns, number of taxpayers, number of persons represented on tax returns, and 1970 population, by states. 178 58 Counties or cities comprising the 125 largest standard metropolitan Area Dat statistical areas and standard Consolidated areas, 1969. 180 5.4 Number of returns, number of exemptions by type, and number of return 4Iaps 125 largest standard metropolitan statistical areas. 184 number of exemptions other than age and blindness, by state, !53 Internal Revenue Service Regions. 1969. 177 5.5 Number of returns, adjusted gross income, income tax after credits. average income, by number of exemptions other than age or blindnar Average compensation shown by Form W-2 by state. 1969, 183 adjusted gross income classes, and states. 255 Basic tables 5.6 Selected sources of income, deductions, taxable income, and incorr ta by 125 largest standard metropolitan statistical areas. 269 5.1 Selected sources of income, deductions, taxable income, and income tax. by states and regions, 185 5.7 Adjusted gross income, salaries and wages, exemptions. taxable rcor 5.2 Adjusted gross income, salaries and wages, exemptions, taxable income, and income tax by adjusted gross income classes and 125 largest standard metropolitan statistical areas. 273 and income tax, by adjusted gross income classes and states. 188 5.3 Returns, adjusted gross income, and tax by marital status and by states 5.8 Number of returns, number of exemptions by type, and number of return5 and regions, 250 number of exemptions other than age and blindness, by 125 l3rgest standard metropolitan statistical areas, 337 69 015 17 178 Individual Returns/1969 • State and Metropolitan Area Data This section of the report presents individual income tax data for each of the 50 States and for the 125 largest study cited Previously, may be overstated by as much as 10 percent. Part of the overstatement in Maryland is standard metropolitan statistical areas, Summary tabu- due also to the fact that service personnel stationed lations are shown for the seven Internal Revenue Service abroad erroneously sent their returns to the National Regions and two standard consolidated areas. The meth- Office or the Baltimore District Office. ods used in coding returns for these geographic classi- fications, and the limitations of these methods, are ex- Many service personnel stationed abroad also file their returns in New York, California, or Washington plained in the text below. State classifications in the Statistics of Income series State, where the Army Post Offices (APO's) and Fleet are based on the district code given each return in the Post Offices (FPO's) are located. However, each State Internal Revenue district office or regional service total contains at least a few returns of such personnel stationed abroad, center in which it was filed. Taxpayers were ihstructed to file their returns in the district or region in which Table 5A compares State data from 1969 tax returns they resided, and to the extent that they did so, the State (filed around April 15, 1970) to population data from the data reflect an accurate picture of taxpayers within each April 1, 1970 Census, Differences between the two series are related both to the limitations of the State classifi- State. Most taxpayers did file in the correct place. How- cations mentioned above, and to conceptual differences ever, there were some returns filed in an incorrect place between IRS and Census data, due to the reasons cited below, The data used in this comparison are: (1) Some taxpayers who had moved filed with the 1. Population used as a basis for Congressional district office or regional service center serving the apportionment as reported in the 1970 Census. area in which they used to live, either out of habit or This includes, for each State, not only the resident because IRS had sent them a preprinted envelope ad- population, but also Government employees (civilian and dressed to the service center of the region in which the abie SA.—NUMBER OF RETURNS, NUMBER OF TAXPAYERS, NUMBER OF PERSONS taxpayer formerly resided. REPRESENTED ON TAX RETURNS. AND 1970 PL'LATICN, BY STATES (2) Some taxpayers filed from their place of busi- ness rather than their place of residence, for example, a Connecticut commuter filing with the district office serving New York City, his place of business, rather ....., . tber t retun-.c 0ber of taxpa,ers '', _, retr.3 ' '7 ao a percer., cf 1.4 (1) (2) (3) )i.) (0) than the one serving Connecticut, his place of residence, (3) Some taxpayers filed from their tax lawyer's 0.ited S0ate, tcOall 70,44.4, ,4 1,040,869 194,741,234 24,760,770 ,,. Alatae,a or accountant's place of business, which again may have Ala:1a 1,004,293 93,903 1,741,043 140,276 2,,o3,491 242,420 3,475,831 3C.4,147 51.3 been in another State from the taxpayer's residence, Arzor.a Aroa.sas 614:75 9,75 1,4, j,757,20 7,.9 .4.3 Calitcr1a 611,097 .12:,0,1,.43 992, — 1, '42,313 (4) Some taxpayers may simply have misunderstood 7,841,121 i.2,11,6)0 2:127,724 2:,:-,8,o93 10:2 the instructions on where to file. Colorado CCr.nectic.,t.... 812,777 l,320,97 l,283,o.43 2,226,771 2,040,451 5,27.,42]. , :o:,?3 :.-'J The effect of a taxpayer filing in the wrong place de- Delaware District or Col1ia... 27,247 291,013 31.6,111 397,149 4?7,525 625,410 00,923 o2,971 .2 52.0 pended on whether he was filing with the wrong district 2,418,112 ,2.?8 6,274,715 6,500,702 :.s office, the wrong service center, or with the National Ceorgia H3waii l,5].7,CS 292,201 ' 2,432,3:1 4,2,035 4,42,304 552 :.2 Office of IRS in Washington, D.C- Idaho I11iCcS 247,373 411,035 7l,133 703,204 75.4,9:1 s.: 4,013,a93 0,995,274 OA. (1) If a taxpayer sent his return to a district office IndIana 1,499,073 3,111,1.31 1l,455,4 0,04,'25 .54,320 0,22d,136 91.6 in a State other than the one in which he resided, his Io.'a Kansas 062,733 1,674,941 2,754,956 28462O ?.3 831,773 1,332,565 2,104,789 2,34s,5.04 95.6 return would have been classified for the State to which Ker.tuc1, Louisiana 1,145,131 1,69,683 2,877,378 3,244,4. 55.4 he sent it. Based on the results of an earlier special 1,4,658 1,76.5,43o 3,146,4.47 3,o72,208 55.7 Mair.e 373.885 591,579 1,306,661 1,004,32; Ix.: study, the number of such returns tended to be counter- Myland Massachusetts 1,638,230 2,513,612 4,275,773 3,913,5 (.12.1 balanced by a similar number filed by taxpayers who Michigan Minnesota 2,333,244 3,255,170 3,493,192 5,1421 5,604,798 8585'42 5,726,676 8,937,196 97.9 96.1 resided in that State but sent their returns elsewhere. Mi5SiOippi 1,419,159 595,572 2,207,142 967,201 3,713,819 1,713,123 3,833,173 2,223,544 97.5 74.7 (2) If the taxpayer filed his return with the wrong Missouri Montana 1,710,229 2,717,422 4,457,427 4,718,:34 90.1 regional service center, it was arbitrarily classified for Nebraska Nevada 252,647 069,705 399,924 911,613 679,226 1,469,434 7:1,573 1,496,820 96.8 8.2 one of the States in that region. The States chosen for Rev Haspohire 199,669 3ll,95 021,1.49 492,396 113.3 291,430 416,821 81,073 746,294 91.3 classifying out-of-region returns are as follows: in Nec Jersey Rev Mexico 2,819,768 4,326,883 7,154,249 7,208,035 99.8 the Central Region, Ohio; in the Mid-Atlantic Region, New York 333,941 7,206,512 530.675 10,873,562 939,113 17,866,478 1,026,664 18,287,529 91.5 97.7 North Carolina Maryland; in the Midwest Region, Illinois; in the North- North Dakota 1,749,352 2,760,242 4,681,642 5,125,230 91.3 Atlantic Region, Connecticut; in the Southeast Region, io Okiahoas 219,437 4,072,287 350,399 6,365,127 098,376 10,010,566 624,181 10,730,200 95.9 93.0 Florida; in the Southwest Region, Texas; and in the Oregon 876,863 78,7O5 1,436,405 1,250,295 2,368,083 2,010,318 2,565,486 2,110,310 91.6 95.2 Western Region, California. As a result, data for these Pennsylvania Rhode Island 4,9,7l4 7,036,785 1.1,306,262 11,884,316 95.1 367,882 540,985 923,281 957,798 96.4 States may be somewhat overstated. Data for all other South Carolina South Dakota 844,622 1,291,544 2,200,459 2,617,320 54.1 States tend to be very slightly understated; however, Tennessee 239,439 1,338,285 378,866 2,161,773 667,688 3,557,258 673,247 3,961,360 99.2 69.8 since the effect is spread over all 43 remaining States, Texas Utah 3,949,350 355,184 6,356,385 567,846 10,663,164 1,044,864 11,298,787 1,067,813 "4.4 97.9 it is not of great significance in any one State. Vermont 165,669 249,618 '30,922 442,327 96.1 (3) If the return was sent to the National Office, it Virginia Washington 1,651,213 1,284,089 2,645,944 2,038,662 4,395,597 3,297,478 4,690,742 3,443,487 93.7 95.8 was processed in the Mid-Atlantic Service Center. If West Virginia Wisconsin 568,098 1,664,977 918,527 2,620,941 1,531,897 4,34o,059 1,763,331 84.9 97.7 such a return came from a State not in the Mid-Atlantic. 4,467,013 Region, it was coded as a Maryland return. Therefore, 1The U. S. total.. shnin for colonos 1 through 3 trc returns include data residenta at Puerto Rico with thccc. from source. outside of Puerto Rico., astiled as 19 the Maryland estimates, based on the earlier special 1' U. S. citizens residing abroad. well ,. 69 016 Individual Returns/1969 • State and Metropolitan Area Data I military) stationed abroad, as well as their families, earned by persons who were not residents of Puerto R whose permanent addresses were in that State. for the full taxable year. 2. Number of exemptions other than age and blind- ness as shown on tax returns for 1969. This includes one exemption for each taxpayer, for STANDARD METROPOLITAN STATISTICAL AREA. the taxpayer's spouse (if that spouse did not file a separate return), and for each qualified dependent. For Standard metropolitan statistical areas (SMSAs) each State, this should include those Government em- defined by the Office of Management and Budget in or ployees (civilian and military) stationed abroad who to make it possible for all Federal Statistical agenc maintained a permanent residence in that State. How- to utilize the same boundaries in publishing statist: ever, as mentioned above, some Government employees data useful for analyzing metropolitan problems. E also filed with APO and FF0 addresses in New York, standard metropolitan statistical area contains a city California, and Washington State, or with the Baltimore contiguous ''twin" cities) with at least 50,000 inhabita District Office. and includes the county of such central city as wel: The two concepts of population differ in several other adjacent counties found to be metropolitan in charac respects. Taxation data would exceed Census counts for and economically and socially integrated with the co two reasons. Exemptions could be claimed on 1969 tax of the central city. (In New England, the basic u returns for anyone living at any time during calendar comprising the SMSA are cities and towns rather year 1969, even though he may have died before the end counties.) of the year. Furthermore, in the tax return data, some In this report, data are shown for the 125 lar dependents who earned small amounts of income were SMSA's. These include most of the metropolitan a counted twice- -once as taxpayers on their own returns with a 1960 population of 200,000 or more. The coun and once as dependents on their parents' returns. On or cities and towns comprising each of these areas the other hand, the IRS statistics exclude those individ- shown in table 5B. It should be noted that, as coun uals whose income was so low that they did not meet the ad joining a metropolitan area meet the criteria of me tax return filing requirements and who did not file for politan character and socioeconomic integration, a refund of tax withheld. SMSA is redefined to include these counties. Theref' The Census count applies to the population at one mo- the definitions in this report, which conform to c ment in time--April 1, 1970. Incontrasttothe tax return established by the Office of Management and Budge data, it does not include anyone who died during the period of March 1967, differ in some cases from those use January 1 to December 31, 1969. On the other hand, it Statistics of Income reports for tax years before 1 - does include children born during the period January 1 to The criteria for including a return in a stan April 1, 1970, and not eligible for exemptions on 1969 in- metropolitan statistical area were the return add2 come tax return-. indicated by the taxpayer and the district code entc Table 5A shows that, for the Nation as a whole, exemp- by the district office or service center. Since tions other than age and blindness reported on tax returns district code was the primary classifier, any re for 1969 equalled 96.1 percent of the April 1, 1970 popu- with an incorrect district code was automatically cc lation. As might be expected, the percentage was some- as not belonging to any metropolitan area. Most ot what higher in most of the States chosen for c1assifying other limitations of the State classifications mentk returns filed "out-of-region." The percentage was gen- above apply to the metropolitan area classificion erally lower in States with low average incomes, where well. many residents may not have met the filing requirements. The SMSA data shown in this report are subje The relatively low percentage for Florida may be due in special limitations. Since metropolitan areas te part to the fact that many older people live there- -persons be smaller than States, metropolitan area data aged 65 and over enjoyed more liberal filing require- subject to higher sampling variability. Moreover, ments--and in part to the fact thatmanypeople who were pling weights for States are based on actual cour in Florida at the time of the Census had a permanent ad- returns filed In each State. No such counts were avai dress in another State, from which they filed their re- by SMSA, so no special metropolitan area we turns. could be devised. For a measure of the samr Not shown in table 5A, but included in all the basic variability in the metropolitan area tables see table tables in this section, are data on the 35,548 returns Special limitations of the SMSA tables also result I filed from Puerto Rico. The 131,046 exemptions other the involved statistical coding required in determi than age and blindness shown on these returns represent whether/or not a taxpayer's address lay within a me less than 5 percent of the population of Puerto Rico. politan area. Income earned by bona fide residents of Puerto Rico It should be noted that coding for Washington, D. from sources within that Commonwealth was, as a rule, which Is not a separate Internal Revenue district exempt from taxation under U.S. tax law, and most resi- is combined with Maryland in the Baltimore distr: dents of Puerto Rico therefore did not have to file U.S. involves a process similar to that used for cc income tax returns. Those returns that were filed re- SMSA's, with determination based on taxpayer adth flected amounts earned by Puerto Rico residents from The limitations described for the metropolitan sources outside the Commonwealth, or in Puerto Rico as data therefore also apply to the District of Columbia employees of the United States Government, and amounts shown in the State tabulations. 69 017 180 Individual Returns/1969 State and Metropolitan Area Data Table SR. —COINTiES OR CITIES COMPRISING THE 125 L9RCEST STANDARD METROPOLITAN STATISTICAL AR14 AND THE STANCAID CONSOL I0;T°D ARati. 1949° tn-ru totle and definItIon 1970 pnculati;, re.. 0 ...-; -'-i - _.; - 174:10?: YLTRnPCLITAJ1 STATISTICAL AREAS kNOT:::, !.l24J.CWLYTCC.—C:ttot24 CALLAS, T5XOC CHIC ::;rn:o Coo.ty (yort( D9,otg Coll:n C:oj-.t; F;rtngeCc.o.ty 125,81.8 47407 Colloa Coot; 553,371 sra;r.troc to. 35, 010 OrIon. .ttkt:rf-3;HS::t:7ACd-TRNY, :24.1 lIRE 58,245 285,61w Canton tao-n 17,100 4t,'135 Annoneloor 24unt, 122, 210 C.1.ascct too-n 6,914 l21,6'S 7,7.04 2;tct0000G; C.onty 412:9225 ,tTdlClIt lo=.elilko C000t5- 160,979 OtafirlI 26,938 4,519 11,775 9,821 CAVE:port-txg 1514 Scott 0:-art;, boa Henry0-arty, fllon:ou -RIOLINS, :324-11.1:23:3... Hock Iolac.d loony, 1111::' 1-:, r 315,744 27,190 Li:.T?,O-IADO.13413.1-EASTCI1, PENNSYLVANIA-trw Ic-nogs oonty, Pa 25t 225, 304 5,624 29,748 4,616 141111, 02113 Greens To-ct-; DIanE Crr.t3 242 ::;rtLrr.pt:n:oon'.y, Pu 214,768 42€, to-i 73,479 30,215 Prelle c :4.1; ANAI102J-JACCA .210-CARTEl GROVE, CALCPCRSIA 1,420,3R6 37,025 1,420,356 12,3i7 AcunsToo- AulpIc t..on- 19,149 Ara.ane C.on. 0241214 0164 98,043 12, 7S0 1L,—2 196,793 50,610 Jefforus: 24.r.:y Or Cain Co-ant, 415,397 Fiat.' C; (;o: 113,406 05.5 ldtI:.Es, I7,A 607, 592 PcI,; Cc-on 7,626 72,349 10,107 OETR24T, 122441-232: 2400:4, CEJt2I.A_SC.05jI_o41_Ila Mnc:nl Ct-_n: 18,845 l6 Ri:1.n :nd 14o.nty, CeorgIa 162,43; 0. 11 tco ba9lutd c-arty, Sooth Curnlur.o 91,023 9,941 iS, 223 295,116 7,796 St. bob Co_n.:;, ianeoana 11,193 LANL9IFIIL, .L:FCREIA. 12,674 iNoagLao Coono;, diu,snsir c;t;. 5519t210. 329,192 2ci•.an to-,. 16,973 5,190 13, ?5S7, LCAS C:.tt::. 141112475, 2,070, 671 Cu24::e.re 641,071 ERIE, PECNSSLCAN14 Arc.c1 Ct•=oy. Boltincre C.utt,• Si2,72r 32,625 Erie C:or.ty 297, 539 4;,t:4 Cotot:.. 43,129 EVAIC/ILLC, S:,i14:it-452TJ:r 621,377 20,332 Yornil 69,006 Vntoertorgt C.oc.ty, lr.2iana 115,378 i11231?tir, C:C::E:TICCT durrick Co-_roy, 14.AIar.a Howard 61,911. Purii1c12 24aoty (port) 232,295 H;ndersot County, lnntoo, 24,C21 12:33 94244, LYVISLANA. 156, 542 24onty. FLSI:T, V.3061G0. tort1oe Parish. Bator. 285,167 37,165 4,885 Oaneaee Co-arty rar.ge loony. RLAS4:NT-PCST ARThUR-ORANGE, T011A5. Foirfielo • Lnpeer Coo-I-; Jefferson 54,487 FIAT ANOL'2Li-h1.1yw:c, r..oaz 244,772 12,047 :; 71,170 Ctrutfcnd toe-' Rrooard County 62,200 RSi2522111, IV YIP&-P01071V52434. 49,775 PORT WAYNE, I:1La lr-.tboil tn.' 31,394 irooce loony, hew York. 221,815 low hoses 3 -onty (.crt) 50,858 Allen Count-; Tioga Co.otty, New York '.6,513 ldilf;rJ toe' FIAT WCRTh, 1L 50,858 Johnson Coo_not-; S_uoeiar.r.a t,344 Cc'onty, Pa BS9TC:.311118, ALABEIdA Jefferson Cour.ty ma 644,991 BUFFALO, 12.1 141. Erie 1,349,211 1,113,491 Turrar,t Count; PP.1510, CS1IF1P,': Freanc Count, Shelby Coorty 38,037 tlogoru Coonty 335,720 odsoer .:orty 56,246 GARY68AI&dCNfe-EAST CHICAGO, IiC-1414 CAETCII, 01450 Lake Coon' BINTIN, VJSSACHl2Enz 2,753,143 Stark County 372,210 lsc,2:3 Porter Co-ant, Esnea Coooty Beverly Lynn hlty city (part) 342,999 38,348 CHANAESTCS, SotIfli CAR01IUA Berkeley Ccunty 2a9 26,199 GRA2ID P.APSCS, MICHIGAN Kent County r,114 90, 294 Charleaton County 247,650 '1.1,:.;.. Peabody coty 48,080 Ottawa County CHANAF.STCB, WEST VIRGINIA Sale: cIty 40,556 Kanawha County 0RErO4S00RO-4ASIIT-T;_5JJ..PJGH POINT, NORTh Canve.rn ton 26,151 CHtNAC'C'fE, RCRYN GARCLIK6 299,515 CARILIMA...............,.....,.,,,,.,,.,,,.,. Hamilton tcw- 6,373 Forsyth Count, 214,348 Lyr.n field ten 10,826 Mecklenborg County Union County 354,656 Guilford County.........,...........,....,., 288,590 Mancheater town 5,151. 54,714 Randolph County.....,.,........,....,.,.,,,, '6,318 Marblehead town 21,295 CHATEAHG00A, TSN1ILSSEE-GEGRGIA Hamilton County, Ter.neaaee Yadkin County...........,........,...,,.,.,, 24,599 Rdldsletcwn town 254,236 CRIVaLE, 5117CR Ruhant toot 4,044 Walker County, Georgia 50,691 Greenville County 4,119 242, Iwo Saugun town 25, 110 CHICAGO, ILLINOIS 6,978,947 ________ Pickers County....................,,.,,,.,,, 58,916 Swespnnott town 13,578 Cook County 5,492,369 RARRLSBIRO, PEN?IIELRA$1IA Tcpsfield 5,225 Pu Page County 491,882 Cuaberland County berOcax ton Kane County 1.58,177 3,849 251,005 Dauphin County 223,836 kiiillaaex County (part) Lake Ccunty 382,638 Perry County 1,052,027 McHerry County 28,615 Cambringe city 111,555 HA&5GRD, CC84HECTICUT...............,......... Everett cIty 100,361 Will County 249,498 Hartford County (part) 607,619 Maid enci- 42,485 CINCINNATI, 0101 O-IHDIANA-EZHTUCKY Cleroont County, Qio _______ 1,384,851 Hartford city.................,.,,,.,,,,,, 158,017 Menfnrd c 56,127 64,397 Hamilton County, thio 95,725 Avon tows.......,.....,,,..,..,,,,.,,,.,,. 8,352 MeLrca city 33,180 Warren County, 01,io 924,028 BI.oocfield town.......,...,..,,,....,,,,,. 18,301. Newton city 84,925 Canton ten 6,868 Scoerville city 91,066 Dearborn County, Indiana 29,430 East Granby town 88,779 Boone County, Eentuc' 3,532 Waltham city 32,812 East Hartford tea-n 68,131 Wnburn city 61,582 Caobell County, Eentuc' 88,508. East Windaor town............,...,,,.,,,,, 8, 513 Arlington town 37,406 53,524 Kenton County, Kentucty 129,440 Entield towo............................,. 46,189 Ashland town CI.EVtRND, 2410 2,064,194 ________ Farnisgton town 14,390 Bedford town 8,882 Olastonbury ten 13,513 C,n'alooga County 1,721,300 20,611 Belocnt town Geauga County 62,977 Oranby ten 6,150 Burlington town 28,285 Lake County Manchester town...............,.,.....,,,, 47,994 21,980 197,200 Concord town Medina County 82,717 Newtr.gton ten 26,037 16,148 Roclor HELL town P'raoingham town 64,048 CGLIIEIA, SGtI24 CARGLIHA 332.880 11,103 Lexington town 31,886 Lexington County 89,012 4abucy town 17,4'S Lincoln town Richland County 233, 868 Scuth Windsor town 15,553 Ratick town 7,567 Suffield ten 8,634 North Reading town 31,057 COLIUBI2S, GElIA—AI.AB#MA West Hartford town............,,...,,.,,,, 57,583 Reading town 11,264 Chattahoochee County, Georgia 25,81,3 Wetherafield town 26,662 Sherborn town 22,539 3,309 Musccgee County, Georgia 167,377 Windsor town...................,.,.,,,,,,, 22,502 Stonehan town Ruanell County, Alabama 45,394 Windsor Locks town 15,080 Sudbony town 20,725 CGLISBIZ, 01410 Middlesex County (part) 7,410 Wakefield town 13,506 25,402 Delaware Cotsity Franklin County Crt,efl ten 7,400 Watertown town 833,249 Tol.lsnd County (part) 48,874 Wayland town 39,307 Pickaway County 40,051 Andover town 2,099 13,461 CORnS CHRISTI, ItIAS Weston town Wilmingtma town Winchester town 10,87° 17,102 Rueces County San Patricio Th, 47,288 Bolton town Coventry town Ellington town 3,691 8,140 7,707 22,269 Vernon town 27,237 Footnote at end of table. 69 018 Individual ReturnsIlg6g State and Area .a 1 a. Table SB. —CAVITIES OH CETIES COIIPKISI:oc THE: 105 LAECEST iTA:OCARO MgTHoroT.ITAS STATISTICAL ART\5 'ti - -YACCAHO C0000LIOATEJ AFLYS, l969—Con, tatlo en, detloit000 ire-a title nod odi: iti -: PCpuutoo:. p.CNEi.l'Lu, iU:iU. l76 y3 Honolulu TILtS. HC1STIN,Co-.oty, 03l lACKS, CCIL'ECTCtT PP /IIiCCE—PA,TIC,IT_-AJe,OC-, n- Harris County. (-39,106 Hooc:o Co-..nty (port) Hun-or, cit.- 352,033 14LL1'CH.4IE"S rot_ti;:— Brazoris County. Fort HerdCounty. 33, ::'-u 137,707 Arotcl County, PLo-ic Cnloni 1,741,313 Actiury tour 3,857 103,312 burton Ic—n Aurrlr.gton too, Liberty County. )dortgonery County 72,314 Cl4 49,479 lout Huoer tunis. Cooiltcrd to-.-, london to-n- 20,44.1 25,130 12,033 46,357 lristol to-.-— barren to'., Knot County, PAnic loluni (part) HUNTII000C-hlI-C.tlD, 'ALIT VLRGINEA-KENTUCKY- Il_rIS mentor: to-.:— duo-once oity 10,771 Cooeot,—o tout i. rth Icons too,; 22,194 lust Oreen.-oloe tour Csbeil County, Coot VIrgInia 116,918 Crooc tn—n Wayne County, lest Virginia 13, 024 dent dorolck t-nor.. 37, 081 Ant Haven tc.n l2,Aol Cewpurt County, Rhode bland (port) Bold Cunty, Vont-.:c,5 52,37k I,serer.:e County, Cloio 06,86.3 7,673 Ju,nvsto'.-n tn- i'd 19L2JJ:S, LICIS12CA 1,015,009 erousdente County, Flood, Island (punt) IiDitL'.PTYIS, IICLIJIS l,1CV,CVC Jofforo_o Psr:uh 337,068 Central Falls oity Boone C:-.. •: 30,i7O Cotcor: F-. 593,471 Cranston cIty Huniltor. County - 5C,533 St. bernard Purist. 01,185 inst Providence city LA, Huncoci County It. Tuosnoc, Purist 63,080 - Paut-oseet outy 35,056 Hendrio,:c County Joiuoutr. C ooty Murior. Co co- 53,974 61,131 in-.- Y-rk City Rks9 7,867,7(Q Providence olty docr.oocket caty R,rrllvilla too' 792, 299 bn-.nao C..unty 1,473,316 Cuutorlun.d tu-.'n Morgan :— :: 4.4,176 Shelby County 2,601,85.- C070nunton to-or 1'-: Itre Corn' 1,524, 0db lincoln town Queoo.o Count.- 1,973,703 Corth ProvIdence t:ut JACF.SCU, M2&T:IIEPPI Birds Co-irSy 9CH 214,903 Fucinond Cc-n'oty 2-90,443 lorth Cnitr,faols tn.:: Bor.kIn C:-o- 17 Conoou C:ooooty 1,422,905 SOitkfIeld town 4 3, 9 33 JACKSOIC.IllE, FICYITA ales l°oo,lnnd C:-ooty 0oi'foli Coor.' 229, 903 1,116,672 iauklngton County, F.inde Island (part) 30, 66 0.-nab County turregsn.uett - bid, gel 891,409 iorth Kirgetown coon- JERSEY CITY, lIt CIVAHY Hudson. Coo-tv 003 319,11v 016 BrIutol Co-unot, 'Asonsonunetts (part) JQ*STitc:, FAt fltVA:C 929,6db Attleboro CIty Cantria C o.ty Morru County lorth Attleboro ton- Ii, t9 383,414 iekoootk tow— Suserce: C_-unty 143,116 Eeekor,k to-.-,; KA.9SAS CITY, MCS2GL'tI-KJAISAS Cass County, tiiunruri 1536 l.Ed?OYT hitdC—H.bl'.FTCI, Vih050an 120,779 h-rfnli County, Maous:p.ooet' BellIr.ghan tv-ct. La, hc-.-;ort Cue: City 138, 177 Franklin to,.- Clay County, Miusour' Irk County PlsinvilLe town Jackson. County, Missouri 654,558 Platte booty, Missouri 33,011 t:ps-CLK—PCRTS,'da-'TH, VIROItLt Wrenthun to-c-i Jnbr.cor. County, Kansas Chacepeaie city Worcester County, Moousolo.oueots )part) 217, 662 86, 500 Wyandotte Co-only, Kansas ICIERVELLY, Ti:C:ISSEE. Andernun County Bbount Coon' . 37 116,845 60,300 tortolk city F:rtonootl city Virinie Beach cIty 337,911 113,963 172,106 Blacastute tow-i itillville town. RAiDING, PEIOSOLVALCA 63,74.4 Acres County Knox Co-on- CELiICS.th CITE, CC,iHOLA 276,293 Catodian FICI*.13811, VCBOISIA county 32, 245 LANCASTER • PIIiTSILVAIIIA Lancaster County 693 319,693 Cleveland Count.- Celuhoesa County 81,839 026, 805 Bichoar4 city Chesterfield County 249, Hanover County LANSINO, MICHICA.N 01111k, EEBRASK.t-IOWA Clinton County Ber,rico County 15-4- 48,492 Douglas County, oebrsska 339,405 ROCHESTER, NAIl YORK Eaton County 68,892 Sarpy County, Nebraska loghan Ccouoty 261,029 63,696 LIvingston County - 04, Puttawattanie County, Iowa 86,991 Mor.roe County a LITTLE RCCK-SCF.T}{ LITTLE ROCK, ABKASASAS OIG.AHDO, FLORIDA Orlear.s County Pulaski County 287,189 Crange County Saline County 36,107 Sesinole County Wayne County 79; 83, 692 RCCKFORD, ILLINCIS LCRAIN-ILYRIA, 0110 Lorain County Boone County 256,843 PATERSOI-CLIFTCN-PASSAIC, HEW JERSEY 1,358,794 L13 AHCELFS-LCNO BEACH, CALIFORNIA 7,032,075 Bergen County Winnebago 246, 898,012 Isa Angeles County LOUISVILLE, EYNTUCKY-IHDIANA Jefferson Csunty, Kentucty CLark County, Indiana 53 7,032,030 695,000 Passaic County ?EIIEACCI,A, FLOP.ODN Escanbia County 460,782 205,334 SACBDG2ITO, CALIFORNIA Placer County Sacrasento County 77, 631, 70,876 Santa Rosa County 37,741 Tab County 91, Floyd County, Indiana 55,622 PEORIA, ILLINOIS ST. LOUIS, ICSSOERI—II.LANIIS 2,363 St. lseaia city, Missouri MBDISCBI, WISCONSIN 290 272 Peoria County 195,318 Tan. County Tasewell County 118,649 Franklin County, Misaouri IDNIS, SEE-ARKANSAS Woodford County 28,012 Jefferson County, Misaouri LOS Shelby County, Tenneaaee St. Cbarlea County, Miesouri 92 722,014 PNOLADILPHIA, PENNSYLVASIIA-IiElJ JERSEY 4,817,914 St. Loud-a County, Miaaouri 9S1 Crittendan Csunty, Arkansas 48,106 Bucks County, Pennsylvania 415,056 Madisaa County, Illinois CAJC, PtORIIA 250 1,267,792 Chester County, Pennsylvania 278,311 St. Clair County, Illinsia 285 I*de Csunty 1,267,792 ICLM&BKEE, WISCCBISIN 1,403,688 Delaware County. Pennsylvania Montgrery County, Pennsylvania 600,035 SALT LAKE CITE, UTAH 623,799 Davia County an 99 Milwaukee County 1,054,063 Philadelphia County, Pennsylvania 1,9-48,609 Salt Lake County Ozaukae County 458- 54,421 Burlington County, New Jeraey 323,132 SAN AIITCAIIO, TECAS Washington County 63,839 Canden County, New Jersey 456,291 Bear County 830 Waukesha County 231,365 Gloucester County, New Jersey 172,681- Guadalupe County 33 JCSBIF.Afl.IS'.ST. PAIL, MINNESOTA 1,813,647 tAN BEJBIARDINO—RIVEESIDE..CAITARIO, CALIFORNIA... Anon County 134,5% PNODJIX, ARIZCNIA I*kota County Marioopa County 967,522 Riverside County 139,806 San Bernardino County 684, Nennepin County FI'I'ISBUBCN, PEIOLSILVANIA 2,401,245 Ram.ey County 968,060 476,255 Allegheny County 1,605,016 SAN DI$ZO, CALISLIFNIA San Diego County IJL 1,357: Washington County 82,948 Beaver County 208,41.8 SAN FRANCCSCO—CWJG.AHD, CALIFORNIA MOBILE, ALABAMA Washington County 210,876 Alameda County BAldwin County Weatnoreland County 376,935 1,073, Mobile County Contra Cata County 558 317,306 PI'LAHD, CRECCN—WASHINCTQ1 1,039,129 rin County 206, NASHVILLE, TUIINESSEE Claekaaas County, Oregon San Francisco County 06vidaon County 166,068 715, 447,877 Multnsaah County, Oregon 56,667 San lMteo County 556, Sciar County 56,106 Washington County, Oregon SAN JECE, CALIFORNIA Wilson County 36,999 Clark County, Washington Santa Clara County 1,066, Footnote at end of table. 69 019 82 Individual Returns/],969 • State and Metropolitan Area Data T5Lc 53—COUNTIES OR CITIES COXPRISINC THE 125 lARGEST STANDARD INTROPOLITAN STATISTICAL AREAS AND THE STkNDARD CONSOLIDATED AREAS, 1)69—Con. Ama title and Ce)' ioiticn 1170 1973 population Arca hIlt ur. dedloitins Area title and efInitIcn p'cpulaticn Lu.un CcLuty. cutty. ?0,NSYLVAIIIA T1C134N, "3281021' 234,107 PIerce ICRCEST33, l.ISACI13ETTS 6ASHINGTCN. itro.2-NIEP.Err, 1,156,633 County 222236-ST. PNTIRSBURG, itc.ir..t 411,027 Worcester County dorcoster clt, (part) 171, 52 ..Ntch .'iillcborocgh County ton., Euc'. Far!s9. O3 Auburn 11, 347 :i.F9T, LCNISLA2IA. 265,236 64,519 Pine]Las Count, 111100, 1O-MJC6IQAN 522, 329 L57 RerUn too—, B.cylston tow', 2,0?? Eroo6field trc', :.':1uy7, :11.ANA. Ma.r..ail County. 230,184 Lucas County, Ctio 2506 County, Chic ,370 East Broodfield 2,763 1, EdO 110119. 7Jccyh Cco.ty. 69,722 34,966 Iharue County, MictiCan. 118,479 Grafton tour 11,619 sit,. 245,cl-S 1211110, NEll JERSEY Holder, to,.', 12, 181. Mercer Ccur.ty 303,966 Leicestem tcno, 9, 140 67,467 TZ.1.N, L'.illbury ton'-, 22 AIIZCIA y—IccE—Hc1yc66, tt12SACHtyETC— lIsa Nurthborcu.gh tCu', 0,2,9 city. 45 city. Cuonty 351,667 lcrthbridge ton—, 13795 TLt.IA. Qa.32ut N.,yz.u Icutty, Massac5usetts (part). 420,464 ruek Cuunty North Rrooitf jell tuw', :ci;ee 66, 676 :ty 45,532 cufuri tow-, :ls.6field c1ty. :.c .404e 29,750 Pastor, ton-, c. 57,112 Tulsa Cc'unt 401, 663 163,905 Shrews bury ton-i l?,lP6 tuon. .e12 31,433 ICR)' 340.497 Spencer town L'T1CA-RC?91, NEll Sterljtg tow', Loryscadow tc-.,n. 21,717 13,029 8urkiaer Cc.octy (3teida Cutty h',440 273,037 Sutton town lipton town 5,464 I. C.—).l0—V 7. tcvn. WestbCrough town 12, 594 . 11,633 2,861,123 West Royloton ton', I.-.-,. .çrcoglieli tc-.,n. 17,580 7,715 11,660 6,320 harhlcgttr,, 2. C H rtgurory Cuu.oty, M.arylar rr,:cc to..rgcs County, Maryian. /.:nxa,.rca sit,, Vtrgcoia 756,5l 522,809 660,567 110,938 ICR)), PEVJ,I34 Adans County YcrA County 4,369 06,937 28,461 a:rfax city, Virginia 21,970 11,134 iula Church cut,, 22rgir.Ia :cO-.ty, tsta.hutntt (part) 68,732 )nlicgtar, .2 unty, Vurgria 10,772 YcNGST001-WAJ,3E, duo .70r;t:n 29,664 Fuxrfax Cu..nty, Vsrgt,a 174,284 Malioniog County 3OJ,w24 455,021 Tmunhull County tSl 13,012 L,.,s.n C.,ty, Virginia 37,150 tow'-. 5,473 PrInce 'Julia,. Ccunty, VIr4Ir,ia 111,102 tour. tO Hu2Ley ...rctcr .ar,et ScOty, Massachusettn (part). Cuoty, Connecticut (part) 3,75° 17,C33 CLOT PALM 643CR, P1131:3 3,633 PaL. Poach Count, 3,633 SICHITA, P1.21342 6,893 6,893 E.t1er County Scdgeici, Court, LV32IA oZ35 348,735 38,653 350,694 311130 CCCS.IOACED 331.2.5 NEll YCFJ(-N0R5AST331 012 JERSEY New York tSA, New lump Newark 13133, lew Jersey Jersey City 13133, New Jersey E.3",66 CALIF2RSIA. WOLY.uC-HAItF,1-RALLETLN, Paterscn—Cliftc.r,—pgosajc 31154, cc Jorscy.... .açulr. Cct-.ty Lucerne County 342,301 Midolesex 290,208 Count, '1ev Jesse, 183,533 tEll 11911 Ma20:n tautly 62,864 611111112311, C A 3-!' NY "11-NEll :12.212 New Castle County 'elsuare 493 Scnerset County, New Jersey 198,372 . oga C..rty Cuntv 472,165 100,897 Cecil County, lLurylaad Cole., County, Now .lorse, 385,856 52,291 60,346 CHICAGO, Chicago ILLINCI2—N0RTif.'EsTji 1N11'J.. 13636, IllinsIx Gary-l1eond—East ChIcago 21156, In'liuna 7,812,314 6,?.'8, 94'. ,rl tenian far inslu2lng a netropoltlan area Lo,ng the 25 largest was tIe papulatlor, is 1661 of LEe area as defined In 1969. OTHER GEOGRAPHIC CLASSIFICATIONS COMPENSATION REPORTED ON FORMS W-2 Most of the tables in this section also present data for Form W-2, the wage and tax statement supplied to nternal Revenue Service administrative regions. Each employees by their employers, was used for the first time in the 1969 Statistics of Income program to separate egion has a service center which processes the returns the wages earned by men and women. The map at the top iled in the districts which make up the region. The of page 183 shows the average W-2 wage per wage ;tates comprising each region are indicated In the map earner (whether male or female) by State. Generally, n page 177, which represents the field organization of average wages over $5,500 were found on the East he Service in 1969. Coast between Virginia and Massachusetts, in a band of In recognition of the special importance of even more States stretching along the Great Lakes, and in the Far nclusive metropolitan statistics for the large conur- West. The highest average wage--$7,l20--was found in 'ations around New York and Chicago, the Office of Alaska, the lowest in Arkansas ($4,198). .1anageme and Budget has established definitions for The lower map on page 183 compares the average wo • 'standard consolidated areas." The Chicago, 1111- wages of women to the average wages of men by State mis- -Northeastern Indiana standard consolidated area (in the case of joint returns of husbands and wives, of the Chicago and the Gary-Hammond-East both of whom worked, each spouse's wage was con- Thicago standard metropolitan statistical areas; the sidered separately). As a rule, women's wages tended to ew York- -Northeastern New Jersey standard consoli- be closest to men's wages in those States where the over- lated area is made up of four SMSA's in the New York all wage level was lowest, most notably in the South- rea, plus two contiguous counties in New Jersey (see eastern part of the cod'ntry. There were, however, some able 5B). notable exceptions to this rule. Washington, D.C., for Totals in the SMSA tables are for all areas falling instance, with an average wage of $6,087 had the highest .nto the 125 largest metropolitan areas, plus the two. rate of average women's to average men's wages- - :ounties in New Jersey which are partof the New York-- 65percent. Aside from the District of Columbia, there ortheastern New Jersey standard consolidated area. were two States with average wages of $5,500 or more nlational totals shown in the State and regional tables where the wage level for women was more than 50 Iiffer slightly from those presented elsewhere in this percent of that for men: Alaska and Hawaii. In the :eport because of differences in sample weights used. Rocky Mountain States, on the other hand, relatively I'hese are explained in the Description of the Sample low wage levels tended to be associated with relatively section 7). low ratios of women's to men's average wages. 69 020 Individual Returns/1969 • State and Metropolitan Area Data 1 S3 Average Compensation shown on Forms W-2 by State, 1969 Averag Under $4,500 $4,500 under $5,000 = $5,000 under $5,500 ES5,500 and over compensation as a percent of average male compensation 69 021 0 (D 0 0 Cl) — I A 1 • 0 0 0 -I t.MM 5L" Th.. m.Iropolilon o,.aI w.re ieIecI.d from ar.ai d.(in.d by ks Bur.ou ol lb. Oudgel as ci Jonuosy 1969 INPUT, OUTPUT, MASTER DEFINITION (Excluding Reports) Ii. PAGE 2. NAME I3. TYPE C 0 4. RECORD StZE I i o 6 1E PREPARED 1969 INDIVIDUAL TAX ID INPUT DECIMAL MODEL ID OUTPUT f MASTER 846 6. SYSTEM 'EBRUARy 1985 PREPARED BY STATISTICS OF INCOME NATIONAL ARCHIVES 8. DEFINITION LINE DATA ELEMENT - IGN TYPE —— REFERENCE LOCAT11%N SIZE DATA (DENT. NOTE meriç( LINE STANDARD NO. PAGE b. c. d. e f. g. h. L •_BLANK 1- 2 2 SAMPLE .__ 3— 4 ...2_ .. .BLANK 5—8 SELECT - NATIONAL 9-10 — DISTRICT 11—12 2 BLANK 13—20 8 OTHER THAN AGE OR BLIND EXEMPTIONS 21—22 2 DEPENDENTS :23_24 2 — TOTAL EXEMPTIONS 2 MARITAL STATUS 27 1 — TAXPAYER STATUS 1 29 1 RETURN WITH RETIRfENT INCOME CREDIT 30 FILING PERIOD 31 . FDED 32 1 33 TAXPAYER 34 —— - AGE EXEMPTION 35 — J. r. TAX STATUS 36 — — BLANK 37—60 — 24 — — GENERAL SERVICES ADMINISTRATION GSA Form 2575B (7-70) 69 023 INPUT, OUTPUT, MASTER DEFINITION (Excluding Reports) PAGE 2. NAME 2 OF 6 3. TYPE OF RECORD fA. RECORD SIZE 5. DATE PREPARED PACKED 0 INPUT 1969 INDIVIDUAL TAX MODEL DECIMAL 6. SVSTEJA [J OUTPUT [ MAST 846 FEBRUARY 1985 7. PREPARED BY STATISTICS OF INCOME NATIONAL ARCHIVES 8. DEFINITION LINE IGN TYPE —— REFERENCE ' NO. DATA ELEMENT FIELD cLAS (if OF LOCATION A/N 121L SIZE IDENT. NOTE DATA LINE vneric) STANDARD NO. PAGE b. g. — EXEMPTIONS - AGE '—61— 66 - TAAYER 67— — .._ —BLIND 72—76 5 . — DEPENDENT 77— 81 5 — OTHER THAN AGE OR BLIND 82— 86 5 - TOTAL 8 7— 91 5 . BLANK 92—111 2a.___ — SALARY AND WAGES 112—116 5 ADJUSTED GROSS — INCOME 117—121 5 — DEFICIT 122—126 5 DIVIDENDS — IN AGI 127—131 5 — EXCLUSION 132—136 5 — TOTAL BEFORE EXCLUSION 137-141 ..••••.• INTEREST RECEIVED 142—146 — — ADJUSTMENT 147-151 ••..• . TOTAL DEDUCTIONS 152—156 5 TAXABLE INCOME 157—161 5 INCOME TAX — BEFORE CREDITS 162—1.66 5 — AFTER CREDITS 167—171 5 TAX SURCHARGE - 172—176 . . TAX SAVINGS — INCOME AVERAGING 177—181 LONG-TERN CAPITAL GAINS IN . EXCESS OF STCL 182—186 5 GENERAL SERVICES ADMINISTRATION GSA Form 2575B (7.70) 69 024 INPUT, OUTPUT, MASTER DEFINITION (Excluding Z. NAME Reports) 1969 INDIVIDUAL TAX MODEL 6. SYSTEM STATISTICS OF INCOME NATIONAL ARCHIVES j 8. DEFINITION LINE I DATA ELEMENT LOCAi%N - 3IGN SIZE TYPE DATA — REFERENCE bENT. LINE NOTE r7erLc) NO. STANDARD PAGE b. c. g. L BALANCE FOR PARTIAL TAX 18 7-191 N 5 TOTAL INCOME TAX 192—196 N 5 INCOME TAX WITHHELD 197—201 N 5 EXCESS FICA WITHHELD 202—206 N 5 REFUNDABLE CREDITS 207—211 N 5 1969 ESTIMATED TAX PAYMENTS 212—216 5 BALANCE DUE 217—221 N 5 POSITIVE AGI ADJUSTMENT 222—226 N 5 NEGATIVE AGI ADJUSTMENT 227—231 N 5 TOTAL OVERPAyMENT 232—236 N 5 TAX PAID WITH RETURN 237—241 . N 5 OVERPAYMENT — CREDITED ON 1970 ESTIM. 242—246 N — REFUNDED SELF EMPLOYMENT TAX TAX BEFORE INCOME AVERAGING 247—251 252—256 257—261 N N N - 5 5 - ' . CAPITAL LOSS CARRYOVER — SHORT TERM 262—266 N 5 — LONG TERN 267—271 N 5 — AFTER CARRYOVER - NET SHORT-TERM GAIN 272-276 N • 5 . — — NET SHORT—TERM LOSS N • 5 - NET LONG-TERM GAIN 282-286 N • 5 — — NET LONG—TERM LOSS 28 7-291 • 5 . NET CAPITAL GAIN 292—296 N 5 GENERAL SERVICES ADMINISTRATION GSA Form 2575B (7-70) 69 025 INPUT, OUTPUT, MASTER DEFINITION (Excluding Reports) 3 TYPE OF OF 6 4. RECORD SIZE EPREPARED IND IV ID UAL TAX MODEL DECIMAL OUTPUT MAS TE 846 ?EBRUARY 1985 7. PREPARED BY STATISTICS OF INCOME NATIONAL ARCHIVES 8. DEFINITION . 3IGN REFERENCE LINE TYPE DATA ELEMENT LOC1j%N SIZE DATA bENT. NOTE mertc) LINE STANDARD PAGE b. c. . h. NET CAPITAL LOSS 297—301 NET LOSS BEFORE LIMITATION 302—306 N 5 HALF EXCESS LONG—TERM GAIN 307—311 N 5 ALTERNATIVE TAX 312—316 N 5 TOTAL ORDINARy GAIN 317—321 N 5 OTHER PROPERTY — NET GAIN 322—326 N 5 — NET LOSS 327—331 N 5 RECOVERY OF COST THIS YEAR 332—336 N 5 PENSION AND ANNUITY - AMOUNT THIS YEAS 33 7-341 N 5 . — TAXABLE PORTION 342—346 N '5 BUSINESS OR PROFESSION — NET PROFIT 347—351 N 5 - — NET LOSS 352—356 N 5 RENTS — NET INCOME 357—36 1 N 5 • — NET LOSS 362—366 5 ROYALTIES — NET INCOME 367—371 N 5 . — NET LOSS N 5 PARTNERSHIPS — NET PROFIT 377-381 N . 5 — NET LOSS 382—386 N 5 — ESTATE AND TRUST — NET INCOME 38 7—391 N. 5 - NET LOSS - 392—396 SMALL BUSINESS CORP. — NET PROFIT N 5 . — NET LOSS 402—406 GENERAL SERVICES ADMINISTRATION GSA Foim25l5B(7-70) 69 026 INPUT, OUTPUT, MASTER DEFINITION (Excluding Reports) 1 PAG5E 2. NAME 6 RECORD 5. DATE PREPARED iNPuT 6. 1969 IIVIDUAL TAX MODEL SYSTEM UIEER846 DECIMAL 7 PRrPARn v -- -. BRUARy 1985 STATISTICS OF INCOME NATIONAL ARCHIVES 8. DE FINITION . S GN REFERENCE LINE TYPE DATA ELEMENT LOCAT11ON SIZE DATA DENT. LINE NOTE merc) STANDARD PAGE o. b. c. e. FARM — NET PROFIT 407—411 N 5 — NET LOSS 412—416 N 5 MISCELLANEOUS — INCOME 417—421 N 5 — LOSS 422—426 N 5 RETIREMENT INCOME GEN. RULE BASE CREDITS — FOR' CREDIT 427—431 N 5 ALT. BASE — FOR CREDIT 432—436 N 5 . - TENTATIVE CREDIT 437-441 .... RECOMPUTE) PRIOR YEAR INVESTMENT CREDT 4k2-446 TAX CREDITS — OTHER — INVESTMENT INCOME 447—451 452—456 jN .•....• i. 5 — - FOREIGN TAX 457—46 1 — — N — 5 —— i; — RETIREMENT INCOME N 462—466 5 W—2 WITHHOLDING — MALE 467—471 N 5 ' — FEMALE 472—476 N 5 WAGES — MALE 477-481 N 5 — FEMALE 482—486 N 5 — FICA — MALE 48 7—491 N 5 — FEMALE ' 492—496 N 5 88- 150 BLANKJFILLER 497—8 11 315 SORT CONTROL FIELD — MAJOR 812—816 N . 5 — INTERMEDIATE 817—821 N 5 — MINOR 822—826 N 5 GENERAL SERVICES ADMINISTRATION GSA Form 25158 (7.70) 69027 INPUT, OUTPUT, MASTER DEFINITION (Excluding t. PAGE Reports) 2. NAME 3. TYPE OF 6 OF 6 4 RECORD SIZE 5. DATE PREPARED 1969 INDIVIDUAL TAX MODEL 0 INPUT DECIJ OUTPUT 846 6. SYSTEJ.4 MASTER FEBRUARY 1985 7. PREPARED BY j. STATISTICS OF INCOME NATIONAL ARCHIVES 8. DEFINITION - IGN REFERENCE TYPE LNE . DATA ELEMENT LOCAi%N SIZE DATA IDENT. LINE NOTE merLe) NO. STANDARD PAGE 0. b. c. g. BLANK 827-836 - WEIGHT R7—R41 ...5...... —— BLANK 842—846 5 - —__________ GENERAL SERVICES ADMINISTRATION GSA Form 2575B (7.70) 69 028 Na(rchjves Wczshingron, DC 20408 Reforatting Note 1969 Individual Tax Model File The Tape Record Layout arid the Field Locations listed in the Explanation of Codes and Fields refer to previous versions of the file and are not applicable to the present format. 69 031 NationaL4rcj,jves and Records Administration A GUIDE TO THE 1969 INDIVIDUAL INC ONE TAX MODEL TAPE I Individual Income Statistics St . Statistics Division January 1975 69032. J969 Individual Tax Mode1JeralD.jpj0 CONTENTS Core Record Layout: Pag 1—4 1969 Individual Income Tax Model Code Definitions 57 Explanation of elds —22 1969 Tax Return Forms 23—45 The Upper Limit Coefficient 46 of Variation for the Estimated Number of Returns NOTE: TO PREVENT T} DISCLOSURE OF INFORMATION ABOUT INDIVIDUAL TWARS, CERTAIN ITEMS ARE NOT INCLUDED IN THE FILES PROVIDED USERS WHO ARE NOT AUTHORIZED TO RECEIVE SUCH INFORMATION. THE DELETED ITEMS HAVE BEEN CROSSED OUT IN THE LAYOUT ON PACE 1 OF THIS BOOKLET. Brief Sample Description u The 1969 Individual Tax Model file is a random subsample of 93,070 returns selected from the Statistics of Income sample of over 254,000 Forms 1040 filed for 1969. The coefficients of variation computed for estimates from the Tax Model sample can be expected to be about 40 percent higher than similar estimates derived from the Statistics of Income sample. The table on page 46 gives some indication of the reliability of Tax Model estimates. A description of the Statistics of Income sample, as well as measures of sampling variability for selected estimates, are shown in the complete report, Statistics of Income—1969, Individual Income Tax Returns. 69 033 Stxx.9O.O3 360 CORE RECORD LAYOUT EXHIBIT C IFER(NC( UMSEJ 1969 INDIVIDUALTAX MODEL FILES 0414, 0514, 0714 , BLOCKED 5:1 OTt 0814 AND 0914 RECORD LENGTh 846 BYTES 9-12-72 (CT OP 4 3UTS L_L..LI__1_II NI2I3ER iii iI •.I_._........._._ fl ilijIll ill_ill iI iii III .tI,IIH .1 ii NLNBER I IIIII —F P TAXL'AYER EXEMPtIoN 2 2— BLIND EXE:PT10X ? Z?E)ENT z:c::prioN I I NLIBERI OTHER ThA AGE OR BLtD ?——-—---—1 P———-——-—? f Nt:SER TOTAL EXENPTIONs - I3E FIELD 7 P—-——------—p P NtN3 FIELD 8 I NLBER IFLELD I - NrR1 FIELD "—--—- J —P I P SALARY AND WAGES I I INOI [OSS E/' ADJUSTED P—-——------_p p ADJUStED CROSS DEFICIT — —1 — -P 1' —ji:—I——J :: :: ;—1 :: I;: :;I :: :: I :: I ::—-f::, ::I :: I I :—I-: :: I:: :]1 : I:: :J : : f-f-J.'J::.J ::. •I QIlII_]IC)1I1I1l1QH.I,Q1I, uII)IIi IIIiIH iII)III I!Iç)II .L___Ij_1_IlII IIt IIIII ADJUSThEr TAXABLE AGI StON DEDLtTIONS INCOME FOR PARTIAL SURCHARGE - ERauSION CREDL1S - IRAX LINXS '-III Ii Ii I Iti 1çiz, lj.ji : 1969 I ZOTAL INCOME INCOME EXCESS REFUNDABLE ESTL'IATED I I BALANCE I POSITLV J NEGATIVE TOTAL 1c TAX PAID I UVtK k'AYNT 1 SELF TAX FICA CREDITS TAX DUE AGI CREDITED ON .J I Act OVER 2LOYUE TAX WIThHELD REFUNDED _________ PAYMENTS I AflJUSIjJ.jADJ1!1EFiT (. PAYNEN1 RETURN 11970 ESTL'IATED J T lIIIlIjJ4ji $TTE COFIURATIQI FLLD DflHERS P-PACKED DECIMAL Z - ZOWCOOCCIMI. AU. O)DES AND FIELDS ARE IN PACKE) GECL'IAL FORMAT. 0-PACKED. WITHOUT LION C - CHARACTEW. CODE _k_III II_jI(._)IIIIIl1 1_1)JIIII IiJ:IiIIIlI.1i1.J K. KKXIOCCIIIAL. AIIT COOt • - SINAHY 91 POIIIM-54 5-41) u.s. cou OLpAArHZI.T INT(WAL L. :E S. tzz.9O.O3 360 CORE RECORD LAYOUT EU4I.B1T HEPIHENCE NUMCH F.coJw TITLE 0* BLOCKED 5:1 11969 INDIVIDUALTAX MODEL FILES 0414, 0514, 0714 0814 AND 0914 RECORD LENGTH 846 BYTES 9-12-72 SECT 2 o 4 iscErs 11,0,11 1110111 11,0111 1110111 IIlOIIIJJ_L0IIl1IlIOIIIjIlIQIll1IlIQll 11101111110111 HIOIlIITtI TAX BEFORE SHORT TERN LONG TERM MET SHORT-TERM ET SHORT-TERN NFlLONG-TERN NET j JNFI LONG-TERN I NET LOSS EXCESS INCOME CAPITAL LOSS cAPITAL LOSS GAIN AFTER LOSS AFTER GAIN AFFER LOSS AFTER CAPITAL CAPITAL j BEFORE LONG TERN ALTERNATIVE I ORDINAL' AVERAGING CARRYOVER CARR'C CARRYOVER CARRYOVER CARRYOVcR CARRYOVER GAIN LOSS LIMITATION j GAIN TAX I GAIN P P P P2 P P P P —p 01 IP pip p pp pp : 1:1: 1:1: :1:1:1:1: . :I:11: :IFI—Ij:: ::I: I::I :l:if.f:i1 ,(_? , I I I I I I I i L I , c:i:.__1 I I I I 1ciii I I I I i 1I11? I c:iii I c:xzii I I i I i c:1:I:I:? I I I I c:1i, I I I I OTHER PROPERtY ADN'JITY ItBUSINESSIOR I RCOVEX OF pE;sIoN A?) PEQI0M RE Ts ROVA TIES PARTNASNtPS NET NET C) MOUNF RECEIVED TAXABLE NET NET NFl NET NET NEt NET NET I GAIN LOSS ThIs 'i• ThIS YEAR PORTION PROFIT LOSS INCOME 1 LOSS INCOME LOSS PROFIT P P P P P P P p p p p p p p p p p p p p p L:: I:: I :: I:: I:: : :: :: I;: :: ;:j :; :: :: ::I :: I ::I ::I :: ::I ::J:; I::I :: ::l:I:: I:'J : ::I::f: I:: I : :.:',I::!:. IOIDIII,I.O.1IO, :,I:.'.!::I.',I::. lS UHII,I,a4I,a,i7fli,.cS{ I, H I II I I H H i II H i I I I I , Ii Ii i Ii II I 01 I I I I It II I 0 I ESTATE AND TRUST SMALL BUSINESS cORP I FARM MISCELLANEOUS RET1R1E-NcOME CREDITS RECO>2LTEO I I I U.Nk.NAL RULE PRIOR YEAR NEt NET '-T NET NET NET INcOME LOSS BASE FOR ALT BASE INCOME PROFIT LOSS PROFIT LOSS IIVESTMENT Li—- — p p : It:. ::3I::,I::,1::- •I::.I,!: .l...! •:ikI.oFI,:I..ll.,l.lI,,I..,IiH..,I.2 I::I:,I:;!-. I4 IIii [, Ii I i liii Ii I II I i It It It It It I It Ii 0, Ii Ii Ii Ii I t Ii It Ii J It Ii I Ii It TAX AEDITS I W—2 I W— I I I I ili fi LLi FICA FICA Wages Wages OTHER INVESThENT NCOME FOREIGN TAX - RETIREMENT INCOME I1thhb01d1! Withhold_I Male I Female Male i Female FIELD 88 FIELD 89 FIELD 90 LtI1iEEEIDs— -- HICIHCIICIWHO U. aOES AND FIELDS ARE IN PAC<ED DICIMAL FORMAT. 0\ \0 PIfLD DEINER P. PAC*LO O(ClM*I. Z • ZOIIC ogcII.1. • - PACkED. WITHOUT SIGP (-'4 C. CHUNACTEa. I-Dir COC • 01 IHflRV • • HCXIDECIIISL.4-CIT C CPa 441441 9? PCC4I M-5256 lIEU. 1-74 Di.'TI"' O THE TC(DUHV - ,HTE.4HDL CC.irI...C SH•1,E Ucx.9O.O3 360 CORE RECORD LAYOUT EXHIBIT C IIUISINCI NUMSES DATE I 1969 INDIVIDUAL TAX NDDEL FILES 0414, 0614, 0714 0814 AND 0914 BLOCREDS:1 [ , 9-12-72 SHEET 846 BYLES ... I 3 o. 4 SUCETI , 1 I I I I FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD 91 92 93 94 95 FIELD 96 97 98 99 100 101 102 103 :1: 1:1:1:1:1:1:1: i::::::j::j I:I: :!:j I::I l:I J::I:—1--f-!:: !::I::I:I::I!I ii , I I I I I I FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD 104 103 106 107 FIELD FIELD 108 109 110 111 112 113 114 115 116 .. •. .c II 17 50 Sc _f.o 1' I'' II II " IS SC ° ,. 7• 'C I I" 1'1'i I •l 4c14.1 .01 •s I .zJ • ss l1 •o 15*155 .oj st s..o 100 I "I" .jo. I bojb* 001 0 .71 1 I 1a J .l J7 Ji. I ,'l 7*1 7017. I •, , I I '' : ° FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD ii.? 118 119 120 121 FIELD FIELD FIELD 122 123 124 125 126 127 128 129 SI 04 IS 57 03 07 I II 50 LI *4 .1.11.. 111101.71.. I.. 1*10515.1.0 00sI 041fl1551 001001011,J0C 0& 0F*0 L1J*4*S*0 *7141100f *LjA. *SI*QIACI*PI5OI5Ils4I53j54j55l5oI77Ie5t55!54Ie5I5cI.0Ifi7I,iL I.0,:.I...I,,, l:,,,.I,:. '' ::' :05:0...::: III1iI, : ,: : '::'1': ': ::': ':°':': :: :' : ':° ''':', ':' ': ', '° FIELD FIELD FIELD . FIELD FIELD FIELD FIELD FIELD FIELD FIELD FIELD 130 131 132 133 134 135 FIELD 136 137 138 139 140 141 7,1 tIj CII caleel ccl I 011001 0.10*1 051 OclocI oct owl ;;j;jj.;j,;; j 0!I CII LA! 1.1001 CDI Ccl vol ru vol.. I v.1 .11 7•! pal ml SEPUSENCI AND AUMARKI ALL WOES AND FIELDS ARE IN PAQCED DECIMAL FORMAT. a '0 PIELD DIPINZ*Z P-PACKED DECIMAl. Z ZONED DECIMAL S. PACPICO•SITHOUT 11*71 C. CHAItACTtn S-SIT COOL * - NI*IDECIMAI.•4-SIT COO! S. 515450 93 POIIM M-5256 l7Lv.1-701 OIPANTNCNTQF THE TACASUSY INTINNAI. SEVEN.! IENVICE .., .,.aa. 41 Si4zx.90.03 360 CORE RECORD LAYOUT EXHIBIT C NCF000*4C0 NUMSEN TITLE - [IGONO 1969 BLOCKED 5:1 DATE 0614, 0714 INDIVIDL TAX IDEL FILES 0414, , AND 0914 RERD LETh 846 BYrES 9-12-72 IIIECT 4 OF 4 SMELTS • 145 146 147 •,j1y,I•i1 148 149 150 .11 III ii, •1* il III . iii III iI* III iii III FIELD 142 FIELD 143 II FIELD 144 FIELD FIELD FIELD FIELD FIELD FIELD III. ' lIIIlIIIttlIIII (XMrROT. FIEIMS rIiIiI,li i 145 146 147 148 SORT 149 150 MAJOR INTERMEDIATE MIN)& — • - 7 l.l. I -: - 1.1.1. I: i; 5 i.tiP I '01*1 Iii II,. I *7 1*01 *01 al 4111*1. .-. I. I ,.i,,i,.-i :l::I :1 I I0!III20 i I::Il::JI I il"i '•;j I •'IIiI*I,l,I,I.I *IlIIIlIl,l.Il.iilIIIIIli jj:f;;j EICIIT JIfIIlI*I.l.l.I.I.I.I,I.I St_laIIooIo.I..I.. •sJ..j.i !__I_!I all.... 4C 4040 •PIIG ,C SD SI I1 I• I IS 110 ° 171 I '2 nSF (0 02 4* (40 0 7* j 74 71 74 77 $ 75 '0 0 7*72 Ii sal,. • 77 I II •Oj •0 •... o.,,J.. "babe 'S •a *0 0. •S Is •7 *0 *5 *00 *0' 70 74707. 75 75 'C 70 7K 77- I" 1 *00*04 *4.10, *00 07 10110011 0 III Ill *I 0 Iii 1*4 Ill II • *I. "'4 120121*221 23 I I •lII•l•llIIlIII!iliIlIlIIIl I. l::.I,.I::1, I:I,'.'.l.l :J:j,::J,::I: I:.!.l I II-'-1-?Mm 1•I.11111111111111111,iIllIIIIf • I I * III Iii It Ii lii 1* I . . :-. LS!_ICj Is. C1l CI COICAIC. Cc1 cot —— 1001011 OZID.jo.j — DI 00 1111 Pal Del OCIODI Dcl o.J £0 ci es c. 07j o.f of oaf cc e. —to EnI.eoII..tI.,Ji.slI.7li..Js.,Izo,j.,.l,oa,,o,.,.i,c,j,.I,o,jj.,j,o,ii,oia,,i, 2I.liI.l.I.la*oI,,.I,oIea,I...j,.,i.. it re .'f to f,,j - .o Ft KIPININCE AND NEMANKI 22S02*227jfl5 22. 03Of4*1123212oo12o,l.o, 2)*2S723I230b240l2.*I242I240I4.I4I 241J2.0 ALL CODES £81) FIELDS ARE IN PACKED DECIJ4AL FORHAT. 0\ '0 PIELD OZFIHERZ CD P-PACKED DECIMAL Z ZONED DECIMAL U. PACKED. NITHOUT SIGN C- CMANACTEo• b-SIT COOL * MCAIDECIIIAI.• 4-bIT COOK S - BINAKY 94 . OIPAATM(NTor YHE TREASUNY INTIANAL NCV(NUL IENVICE P0MM M-5256 4Ev. 5.74 SPA 101.11$ t 3(I-:. 2I-I I-I. CD t-J oo Net Tax M—69—74 Number T Before Field I Profit SOCIAL Averaging EXCeSS NJMBcu Income Fare Credit Major Sort Field Amount Redub1e Sects Field Foreign Net 10 20 filler. Project 50 60 70 55156157I98k916 80 90 LOO or or 69038 'L1 WJan92, lox Ices Total °" I Number Field Lose Small IncomeCredits Deductions Net Amount Field Amount Field Limitation Busines, Net 9 Pretension Buemness Investment Corporation 19 Self-Employment blank 1s9 59 09 79 89 79 nr are Tax Number Field Adjustment Wid Overpayment Refunded Net Capital Income Net BeaU Boelnee. Profit Other Credit, Amount Field Amount Field 5. JUJJJ Buetnese Profeeeinn j1eIhSl46I47J48i49l5oI5lI52ISoISl,I 8 18 48 8 Corporation Net 68 78 38 decimal -01-0 t fields -01 and ?ax Tear Capital Tenet Lose Blocked InterestReceived Set.d TaxablePortion Ir.djt Cre'on Ov Asonaittee Fatal. Social F1. (PICA) Net and Net PriorInve.ext packed 7 Rec.pt.d Pension. 7 Security IA 57 '7 77 IC - "Amount" 8L6, in 11, and RSOORD Tax 11 Paid Return Tear Total Before Trust and are TAPS IP Dividend. Exelusion Mel. Exemption. Tax ioner, Cryr Fatat. Te.dit Basal (FlEx) - ThiS Annuitie. Received Amount With and Tentative 11 10 6 6 56 Peneimes 7,6 76 it. S.ctty Length 7,CDEL, 86 ye 2c TAX Co. 28 ThaivBlind fields 27 or . Net Tear for 26 Total Cent Lass Incm.e Wage.Fseal, Dividend. Exclusions of Record Exemption Other Carryr Credit "Number", Age Overpayment Recovery Baa, Alternate Field Amount Thi. Net and O101VIAUAL '1e125 S 45 55 Partnership, 1969 65 76 76 95 in Retirnt m -0 Lose codes Base Set Logical =g I Income Other Profit Credit "Code", N.t Dependent Exemption Adjueted I Negative Property Wage'Male Cr Adjusted tjv General I Adjuteent Field Dividends Bole 1 IT 118 14 Net for I Li Partherehip. 54 AL, 74 84 *Afl IHI I 116117 I G.m B1arik—.. Blind Oros, r.Ter. Lose I.e. Exemption Adjusted Deficit br-S 113114119 Suge Positive Adjuateo mel. Net f.4— Adjustees,t Aunt Field I Royalties Weight Pec,Uineou, H WithholdIng 13 I j73 43 53 IiiI 63 83 I :93 103 110111112 I I iinI Il'II8!3lSI '°i° 21314 16 9 819 Ii 2 Tampayer Exemption [2 Gross Incom. Adjusted - Balance 42 Lonr-Tern Carryover 52 Total Ordinary Gain 162 Royalties Incone Net 12 ?ftecellaneou, Incsee 82 br-B Withhnlding Male 92 Amount Field LOS )tnor Sort Field Hi Age Wage. Tax Loe, Th. Lees jet. [1 Exemption lOll Salaries Eetj.ated Bent, Pare SortField cje Carryover Alternative Net Net Retiret Thc Credit Amount Field ii. Int.re.d u1 51 71 1 161 LOl A. SYSTEMS TITLE 8. DESCRipr; OF RECORD CO1ENT 99 Individual Tax Model B FILE(S1 TITLE 1969 Individual Tax Model File C. P1JRPQ$ OF COLLECTING DATA Subsample of data collected for use in Statistics of Income publication D. SCoPc (Coneeju and cozie rage) File contains individual income tax return exemptions, tax and other data items for a records: income; deductions. Forms 1 OZjO and 1 OLOA returns. national:sample of 9O,OO E.ARRANGEMENT.SORT ING SEQUENCE (Logical record kcy) I'Tonbusiness returns with lowst to highest adjusted gross income, then business returns with lowest to highest adjusted gross incoi 9. SOURCE DOCUMENT (SI USED AS INPUT (Atzach samples) 10. 1969 IndivIdual Income Tax Returns, Forms 1 0140 and 10140A USE OF FILE OUTPUT.PUBLICATION TITLE (4tach copy) - Statistics of Income--169, Individual •1 ii. DATES OF FILE Income Tax Returns 12. ONETIME STUDY OR SURVEY (5) I. PERIODIC UPDATE (5j:frQg, A..FR thru January 1969 Annual 8. 10 — Deceinbe' 1969 Annual - - 1 69039 U CODE DEFINITIONS COBOL CODE. NAME DISTRICT RECODED AND ORIGINAL DISTRICT RECODED AND ORIGINAL AGEX AGE EXEMPTIONS 0 DISTRICTS (cont'd) DISTRICTS (cont'd) to ORIG RECODED • 1 ORIG RECODED E EXEMPTION 83 - 42 . 2 SPRINGFIELD, ILL 37 - 22 CHEYENNE, WYO 1W EXEMPTIONS 84 - 44 DETROIT, MICH 38 -03 DENVER, COLO ALBLERQLE, N.MEX 85 - 40 BLINDEX BLIND EXEMPTIONS MILWAL*CEE, WIS 39 - 18 41 - 21 PHOENIX, ARIZ 86 - 54 tO EXEMPTIONS 0 ST. PAUL, MINN 42 - 16 SALT LAKE CITY, UTAH 87 - 57 OtE EXEMPTION • 1 DES MOINES, IOWA.. 43 - 20 REMO, NEV 88 - 56 1W EXEMPTIONS 2 ST. LOUIS, MO 45 - 17 SHATTLE, WASHINGTON 91 - 59 FARGO, N.DAK 46 - 14 ANCHORAGE, ALASKA 92 - 49 DEPNF DEPENDENT EXEMPTIONS ABERDEEN,S.DAK 93 - 55 0-99 OMAHA, NEBR 47 - 19 PORTLAND, OREGON AS PUNCHED SAN FRANCISCO, CALIFORNIA. 94 - 58 WICHITA, KANS 48 - 48 51 - 13 LOS ANGELES, CALIFORNIA... 95 - 53 DLN DOCUIENT LOCATOR NLIIBER WIU4INGTON, DEL 52 -07 CP:10 98 - 60 AS PUNCHED BALTIMORE, MD CD DISTRICT RECODED AND ORIGINAL DISTRICTS AWUSTA, MAItE PORTUrH, N.H BLAILINGTON, VT BOSTON, MASS PROVIDENCE, R.I HARTFORD, COHN BROOKLYN,N.Y HA1IIATTAN, N.Y ALBAtif, N.Y . ORIG RECODED 01 02 - 31 03 . 28 06 24 25 05 - 32 06 - 29 11 - 26. 13 - 30 14 - 23 - - WASHINGTON, D.C RICHMOND, VA PARXERBLEG,WEST VA GREENSBORO, N.C COLIMBIA, S.C ATLANTIA, GA JACKSONVILLE, FLA LOUISVILLE, KY NASHVILLE, lYNN BIRMINGHAM, JACKSON,MISS ALA 53 - .08 54 - 12 55 - 06 56 - 36 57 - 35 58 - 33 59 - 38 61 - 62 - 63 - 64 - 05 39 34 37 FDED HONDLULU, HAWAII FORM OF DEDLXTION ITEMIRED 10 PERCENV STANDARD (REPORTED) HINIMLI4 STANDARD (REPORTED) ND ADJUSTED GROSS INCOME. 4 10 PERCENT STANDARD (COMPUTED) MINIHIM STANDARD 99 - 52 1 2 3 5 16 - 27 PIERTO, RICO 66 - 61 BIEFALO, N.Y (COMPUTED) 6 26 - 09 LITTLE ROCK, ARK 71 - 45 NEWARK, N.J 72 - 46 23 - 10 PEWORLEANS, LA PHILADELPHIA, PA 73 - 47 25 - 11 OKLAHOMA CITY, OKLA PITTSBRGH, PA - 41 OHIO 31 - 01 AUSTIN, TEXAS 74 CINCINNATI, 75 - 43 Q.EVELAND, OHIO 34 - 02 DALLAS, TEXAS. 81 - 51 INDIANAPOLIS, IND 35 - 04 HELENA, MONTANA 82 - 50 36 - 15 BOISE, IDAHO CHICAGO, ILL 1 d Eq CODE DEFINITIONS (cont'd) COBOL CODE NAME FLPD /' FILING PERIOD RTIN RETLILN WITH RETIREMENT INCOME BEFORE JANUARY SAMPLE SAMPLE CODES (cont'd) 1,1965 1 CREDIT (cont'd) JANUARY 1, 1965 - DISTRICTS OTHER THAN 66 AND 98 MARQI 31, 1968 2 TAXPAYERS ELIGIBLE FOR BUT APRIL 1968 AND AFIER RETURNS WITH NDN-BUSINESS 1, 3 M)T USING ThE ALTERNATIVE INCOME METHOD 3 11 MARS 0 MARTIAL STATUS SINGLE PERSON MARRIEI) PERSON JOINT RETIRN SLEVIVING SPOU . FILING PARA1E RETI.RN (SPOUSE FILING)... 3 . UPIARRIED HEAD OF HOUSEHOLD 2 4 5 1 SAMPLE TAXPAYERS USING THE ALTERNATIVE METHOD SAMPLE COIES DISTRICTS 66 NDN-BUSINESS P11)- AND UNDER $50,000 RETURNS WITH 98 INCOME 4 09 AGI OR LSII UNDER $10,000 $10,000 UNDER $15,000 $15,000 UNDER $20,000 $20,000 UNDER $50,000 $50,000 UNDER $100,000 $100,000 UNDER $200,000 $200,000 AND OVER 12 13 14 15 16 17 C) PARAIE RETLRN UNDER $10,000 11 (SPOL MOT FILING) 6 DISTRICTS OTHER THAN 66 OR 98 WITH $10,000 UNDER $50,000 13 BUSINESS INCOME OR LOSS $50,000 UNDER $100,000 15 ) OTHER THAN AGE OR BLIND EXEMPTIONS $1000O0 OR MORE 17 AGI OR LSII AND BR ( O1DB AS PUNCHED 0-99 PYD - $50,000 OR MORE 19 UNDER $10,000 (UNDER REGION REGION BY COlE DISTRICTS 66 AND 98 RETURNS WITH $20,000)... 21 CENTRAL REGION 1 BUSIPESS INCOME UNDER $10,000 ($20,000 UNDER MID-ATLANTIC REGION 2 P10 - UNDER $50,000 09 $50,000) 22 MID%ST REGION $10,000 UNDER $15,000 (UNDER $50,000)... 22 3 PYD - $50,000 OR MORE 19 UNDER $15,000 ($50,000 UNDER NDRTH-ATLANTIC REGION 4 UNDER $10,000 21 SOUTHEAST REGION 5 $10,000 UNDER $30,000 23 $100,000) 23 SOUEHIST REGION $15,000 UNDER $20,000 (UNDER $100,000).. 23 6 $30,000 UNDER $100,000 26 UNDER $20,000 LESIERN REGION 7 $100,000 OR MORE 28 ($100,000 UNDER INTERNATIONAL OPERATION 8 $250,000) 24 DISTRICTS 66 AND $20,000 UNDER $30,000 (UNDER $250,000).. 24 98 RETURNS WITH UNDER $30,000 RTIN RETLRN WITH RETIREMENT I(X)ME CREDIT TOTAL LOSS liMIER $200,000 ARE ($250,000 UNDER RETLRNS WITH RETIREMENT t) INCLLfl)ED IN SAMPLE CODES 09, $500,000) 25 INCOME CREDIT 11 API) 21 $30,000 UNDER $50,000 (UNDER $500,000).. 25 0 UNDER $50,000 RETLENS WITH P) COMPUTATION ($500,000 UNDER SCHEDLLE ATTACHED 1 DISTRICTS 66 AND 98 RETURNS WITH $750,000) 26 $50,000 UNDER $100,000 (UNDER $750,000)., 26 TAXPAYERS USING GEtERj RLLE 2 TOTAL LOSS $200,000 OR MORE ARE INCLUDED IN SAMPLE CODES 17, 19 AND 28 I CODE DEFINITIONS (cont'd) COBOL CODE MAME SAMPLE SAMPLE CODES (cont'd) TXST TAX STATUS TAXABLE MORMAL I DISTRICTS OIlIER ThAN 66 OR 98 WITH TAXABLE MORMAL WITH INCOME BUSItSS INCOME OR LOSS (cont'd) AVERAGINC 2 TAXABLE ALTERNATIVE 3 AGI OR LSII AND BR TAXABLE ALTERNATIVE WITH 0 INCOME AVERAGItG 4 UNDER $100,000 ($750,000 UNDER MO TAXABLE INCOME 5 $1,000,000) 27 MONTAZAB 6 $100,000 UNDER $200,000 (UNDER $1,000,000).27 MON-TAXABLE MORMAL WITH INCOME CD UNDER $200,000 ($1,000,000 OR AVERAGIMO 7 MORE) 28 MON-TAXABLE ALTERNATIVE 8 rj $200,000 AND OVER (ANY AMOUNT) 28 MON-TAXABLE ALTERNATIVE WITH INCOME AVERAGINC 9 REX TAXPAYER SEX JOINT RETIRNS SSN SOCIAL RECI.RITY NLtIBER BOTh 65 AND OVER OR 80111 UNDER 65 1 AS PUNCHED HUSBAND UNDER 65, WIFE 65 OR OVER 2 HUSBAND 65 OR OVER, WIFE UNDER 65 3 OTHER THAN JOINT RETLENS MALE RETLRN 4 FEMALE RETLRN IOTALEX TOTAL EXEMPTIONS AS PUNCHED 1-99 TXNT TAXABLE OR MON-TAXABLE TAXABLE (INCOME TAX AFTER CREDITS) 1 MON-TAXABLE (MO INCOME TAX AFTER CREDITS) 2 TXPYR TAX PAYER EXEMPTIONS OlE EXEMPTION 1 TW EXEMPTIONS 2 3 • /969 ZAO,V1.'4e CODE DEFINITIONS COBOL CODE AGEX AGE EXEMPTIONS DISTIIICF RECODED AND ORIGINAL DISTRICT RECODED AND ORIGINAL IX) EXEMPTIONS 0 DISTRICTS (cont'd) DISTRICTS (cont'd) ONE EXEMPTION I ORIC RECODED ; ORIC RECODED TW EXEMPTIONS 2 37 - 22 83 - 42 SPRINGFIELD, ILL CHEYENNE, WYO DETROIT, MICH 38 - 03 DENVER, COLO 84 - 44 BLINDEX BLIND EXEMPTIONS MILWAUKEE, HIS 39 - 18 ALBUQUERQUE, N.MEX 85 - 40 U) EXEMPTIONS 0 ST. PAUL, MINN 41 -. 21 PHOENIX, ARIZ 86 - 54 ONE EXEMPTION I DES MOINES, IOWA 42 - 16 SALT LAKE CITY, UFAIi 87 - 57 T1) EXEMPTIONS 2 ST. LOUIS, MO 43 - 20 REND, NEV 88 - 56 FARGO, N.DAt( 45 - 17 SEATTLE, WASHINGTON 91 - 59 DEPNT DEPENDENT EXEMPTIONS ABERDEEN, S.DAK 46 - 14 ANCHORAGE, ALASKA 92 - 49 AS PUNCHED 0-99 OMAHA, NEBR 47 - 19 PORTLAND, OREGON 93 - 55 WICHITA, KANS 48 - 48 SAN FRANCISCO, CALIFORNIA. 94 - 58 DLN OOCU4EN LOCATOR NIMBER WILMINGTON, DEL 51 - 13 LOS ANGELES, CALIFORNIA.. 95 - 53 AS PUNCHED BALTIMORE, MD 52 -07 CP:1O 98 - 60 WASHINGTON, D.C 53 - 08 HONDLULU, HAWAII 99 - 52. DISTRICE RECODED AND ORIGINAL DISTRICTS ORIG RECODED RICHMOND, VA 54 - 12 AWUSFA, MAINE 01 - 24 PARKERBURG, WEST VA 55 - 06 FDED FORM OF DEDUCTION FORTSMOUFH, N.H 02 31 GREENSBORO, N.C 56 - 36 ITEMIZED i BURLINGTON, VT 03 - 28 COLLMI3IA, S.C 57 . 35 10 PERCENT STANDARD • BOSTON, MASS 04 - 25 ATLANrT.A, GA 58 - 33 (REPORTED) 2 PROVIDENCE, R.I 05 - 32 JACKSONVILLE, FLA 59 - 33 MININL1 STANDARD HARTFORD, CONN 06 - 29 LOUISVILLE, KY 61 - 05 . (REPORTED) 3 11 26 NASHVilLE, TEHN 62 - 39 ND ADJUSTED GROSS INCOME. 4 BROOKLYN, N.Y 13 30 ALA BIR}IINCIIAM, 63 - 34 10 PERCENT STANDARD MANHATTAN, N.Y '.0 14 23 . 64 - 37 (COHPIJFED) S ALBANY, N.Y JACKSON, MISS 16 - 27 66 - 61 MINIHU1 STANDARD BUFFALO, N.Y PUERTO, RICO NEWARK, N.J * 26 - 09 • LITTLE ROCK, ARK 71 - 45 (COMPLJrED) 6 CD • _ PHILADELPHIA, PA 23 - 10 NEW ORLEANS, LA 72 - 46 PITTSBURGH, PA 25 - 11 OKLAHOMA CITY, OKLA 73 - 47 31 - 01 74 - 41 CINCINNATI, OHIO AUSTIN, TEXAS CLEVELAND, OHIO 34 - 02 DALLAS, TEXAS 75 - 43 INDIANAPOLIS, IND 35 - 04 HELENA, MONTANA 81 . 5 CHICAGO, ILL. 36 15 • BOISE, IDAHO 82 - 50 1 1 cODE DEFINITIONS (con'd) 008OL 00DE FLPD FILING PERIOD RTIN RETURN WITH RETIREMENT INCOME SAMPLE SAMPLE CODES (cont'd) BEFORE JANUARY 1, 1965 1 CREDIT (cont'd) JANUARY 1, 1965 - DISTRICTS OTHER THAN 66 AND 98 HARQI 31, 1968 2 TAXPAYERS ELIGIBLE FOR BUF RETURNS WITH NON-BUSINESS APRIL 1, 1968 AND AFIER 3 NOT USING THE ALTERNATIVE INCOME METHOD 3 ACt OR LSII UNDER $10,000 11 HARTT.AL STATUS • TAXPAYERS USING THE $10,000 UNDER $15,000 12 SINGLE PERSON, I • ALTERNATIVE METHOD 4 $15,000 UNDER $20,000 13 HARRIED PERSON FILING 14 $20,000 UNDER $50,000 JOIUP RETURN 2 SAI4PLE SAMPLE CODES 15 $50,000 UNDER $100,000 SEPARATE RETURN (SPOUSE FILING)... 3 DISTRICTS 66 AND 98 RETURNS WITH 16 $100,000 UNDER $200,000 UNIARRIED HEAD OF HOUSEHOLD 4 H)N-BUSINESS INCOME 17 $200,000 AND OVER SURVIVING SPOUSE 5 PYD - UNDER $50,000 09 SEPARATE RETURN UNDER $10,000 11 DISTRICTS OTHER THAN 66 OR 98 WITH (SPOUSE H)T FILING) 6 $10,000 UNDER $50,000 13 BUSINESS INCOME OR LOSS $50,000 UNDER $100,000 15 OTAOB OTHER THAN AGE OR. BLIND EXEMPTIONS $100,000 OR N0'lE 17 AND BR AOL OR LSII AS PUNCHED 0-99 PYD - $50,000 OR MORE 19 UNDER $10,000 (UNDER $20,000)... 21 REGION REGION BY CODE DISTRICTS 66 AND 98 RETURNS WITH UNDER UNDER $10,000 ($20,000 OUERAL REGION 1 BUSINESS INCOME 22 $50,000) MID-ATLAHLIC REGION 2 PYD . WIDER $50,000 09 (UNDER $50,000)... 22 $10,000 UNDER $15,000 MIDtEST REGION 3 PYD - $50,000 OR MORE 19 UNDER $15,000 ($50,000 UNDER l)1(TH-ATLANTIC REGION 4 UNDER $IO000 21 23 $100,000) SOUFIIEAST REGION 5 $10,000 UNDER $30,000 23 (UNDER $100,000).. 23 $15,000 tiNDER $20,000 SOUPHWEST REGION 6 $30,000 UNDER $100,000 26 UNDER $20,000 ($100,000 UNDER .ESTERN REGION 7 $100,000 OR MORE 28 $250,000) 24 INPERNATLONAL OPERATION .. 8 $20,000 UNDER $30,000 (UNDER $250,000).. 24 DISTRICTS 66 AND 93 RETURNS WITH UNDER $30,000 ($250,000 UNDER RTLN RETURN WITH RETIREMEH INCONE CREDIT TOTAL LOSS UNDER $200,000 ARE .25 $500,000) RETURNS WITH H) RETIREMENF INCLUDED IN SAMPLE CODES 09, $30,000 UNDER $50,000 (UNDER $500,000).. 25 INCOME CREDIT 0 IIAND2I UNDER $50,000 ($500,000 UNDER RETURNS WITH H) COMPLICATION $750,000) 26 SCHEDULE AUACHED I DISTRICTS 66 AND 98 RETURNS WITH (UNDER $750,000).. 26 $50,000 UNDER $100,000 TAXPAYERS USING GENERAL RULE 2 TOTAL LOSS $2U000O OR MORE ARE INCLUDED IN SAMPLE CODES 17, 19 AND 28 2 0\ '0 cD CODE DEFINITIONS (cont'd) SAMPLE SAMPLE CODES (cont'd) TXST TAX STATUS TAXABLE NORMAL I DISTRICIS OTHER THAN 66 OR 98 WITH TAXABLE NORMAL WITH INCOME BUSINESS INCOME Oft LOSS(cuut'd) AVERAGINO 2 TAXABLE ALTERNATIVE 3 *01 OR LSII AND BR TAXABLE ALTERNATIVE WITH INCOME AVERAGING 4 UNDER $100,000 ($750,000 UNDER NO TAXABLE INCOME1 . 5 $1,000,000) 27 NON-TAXABLE. NGtNAL;. 6 $100,000 UNDER $200,000 (UNDER $1,000,000).27 NON-TAXABLE NORMAL WITH INCOME (. UNDER $200,000 ($1,000,000OR AVERAGING 7 MORE) 28 NON-TAXABLE ALTERNATIVE 8 $200,000 AND OVER (ANY AMOUNF) 28 NON-TAXABLE ALTERNATIVE WITH INCOME AVERAGING 9 TAXPAYER SEX JOINF RETURNS SSN SOCIAL SECURITY Nt'1BER BOTH 65 AND OVER OR BOTh UNDER 65 1 AS PUNCHED HUSBAND UNDER 65, WIFE 65 OR OVER 2 HUSBAND 65 OR OVER, WIFE UNDER 65 3 OTHER THAN JOINI RETURNS MALE RETURN 4 FEMALE RETURN TOTALEX TOTAL EXEMFIIONS AS PUNCHED TXNY TAXABLE OR NON-TAXABLE TAXABLE (INCOME TAX AFTER CREDIrS) 1 NON-TAXABLE (NO INCOME TAX AFTER CREDITS) 2 TXPYR TIE PAYER EXEMPTIONS ONE EXEMPTION j TL EXEMPTIONS .2 3 (ri Explanation of Fields in the 1969 Ifld1jdu. Tax Model STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCOME TAX RETURNS 232 Codee-—Cont. (6) 35-4l cemptions BOès Chedked Form 1040; •' one 1. Taxpayer Ljnea.7a and :7b - two 2 • . Field 36 Age. Neither 0 Iiine8. la and. lb • gne 1 :(65. over) two 2.. Field 3 37 Blind Neither Lines 7a and lb on e 1 (Blind) two 2 Columns Description Code Source Field 4. Dependents Total of lines 8 and 9. 00-99 Form 1040, lin8 and 9 Field 6 40-41 Total of all exemptions claimed. 01-99 Form 1040, line exemptions 10 If the taxpayer shows only a total, check the filing status and taxpayer signatures. For joint returns enter "2" in column 35 for taxpayer exemp- tions and for all other returns enter "1" for taxpayer exemp- tions. Make no other entries for exemptions except the total in columns 40-41. 42 Job Frequency Code for the number of W-2 0-9 Form W-2 (Male) Forms attached to return or taxpayer's statement indi- cating gross salaries and withholding. If more than 9 W-2 Fortm are attached, enter code 9. 43 Job Frequency Code for the number of W-2 0-9 Form W-2 (Female) Forms attached to return or taxpayer's statement indicat- ing gross salaries and with- holding. If more than 9 W-2 Forms are attached, enter code 9. 44-45 Schedule C Code for the actual number of 00—99 Schedule C schedules edited. 46-47 Schedule F Code for the .ictul nurber of 00-99 Schedule F Bcliedul t'i ecu Note: The sun, of Cci Lu • /,4_67 thuii Id oqtI:i]. total "busincse" (Carch 12 or 17 cola. 42-43) MT 1(13)26.13.44 (6.1.70) IR Manual •6.9 046 i..Explanation of Fields in the 1969 Individual Tax Model contd. 9 STATISTICAL PROCESSING HANDBCOI( FOR INDIVIDUAL INCO? TAX RETURNS ) 233 Heading of Edit Sheet • The heading of the edit sheet will be cornpleced for returns with sample codee 17 and 28 and for Washington, D.C. returns at the Mid—Atlantic Service Center as folç,ws: Taxpaye(e) full name Last name, followed by first name and middle initial and address a. shown on return: Number, street, city, state, and Zip eode. 234 Money Fields (Amounts) (1) The following instructions relate to money amounts entered for non— • business data for Cards 01 through 11. on Forii 2752, Edit Sheet. (a) To ascertain if an amount shown on a schedule is not shown on a return line, examine the return and attached schedules (official and taxpayers' own) before. making entries on the edit sheet. (b) ter money amounts in unrounded dollars. (c) Use taxpayers' entries at all times except when corrections have been made by the Examination Branch or Error Correction Branch and these corrections are consistent with the other affected amounts on the return or when exceptions are specifically indicated in the instructions for certain items. (d) If no entry is shown on the return or attached schedules, leave the field blank unless the taxpayer merely failed to fill in a line. In this case compute the proper amounts, if possible, and make' the entry; payer made an entry of $200 on line 6, (Schedule T) and also entered The tax- ample: ,the same amount on line 10. He had no credits, (retirement, investment,or foreign), but he failed to enter the $200 on line 15. The entry for Income tax after credits (Card 10, Field 6) which is normally entered on line 15 would be $200 even though there is not an entry on the line. Card 01 Form 1040' Field Reference Explanation or Special Instructions 4 Selection Based on the amount shown on the computer amount sample selection sheet under the column • "SEE. AMT", enter the actual amount shown. For 010 returns (district codes 66 and 98) enter zeros in this field; Field • 5. Wages, salaries, S Includes: Fecs, commissions, bonuses, mer- tips, etc. chandise, meals and living quarters in lieu of wagea. These items should be taken out of miscellaneous income on Schedule E, • • Part III col.(d). Also include in this field amounts of W-2 income shown on • •, Schedules C or F. If I—2 income is the only income on CXj)CnSCS i'ii i tnr i.n "A a cheduc C or F, edit the iiployce l3urincss E':pcne nnd (:in Cu''. If Lb arc is bijaincz;s iiii inc :ie well. is W—2 income on • the ScheduU •C or F, edit the expenses as business expenses in MT 103)26.13.44 (6.1.70) IR Manual •9,Q47 Explanation o±' Fields in the 1969 Individual Tax Model contd. 10 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCO TAX RETURNS 34 Money Fields. (Amounts)--Cont. (1) Card 01 Form 1040 _______ Field Reference _________ cplknation or Special Instruction 5. Wages, salaries, Other items which should be included. are: tips, etc. (Cont.) Line 11 director's fees, jury income, penaion trust income, profit sharing income, and•• reserve training .. 6. Total dividends Line 12a, • Field 16 • before exclusion or schedule B, • (domestic and • Part 'I, line 6 • foreign) 7. Dividends in Line 12c Do not enter a negative amount. If the Field 14 AGI taxpayer arrives at a negative amount and carries it into Adjusted Gross income adjust Dividend exclusion and/or Total dividends • and distributions to arrive at "zero" for dividends in AGI. Make an offsetting 'entry in Other sources loss. Card 02 Field .eld 1 Interest received Line 13 2. Other income Line 14 (+) Check: There should be schedules attached to correspond to the boxes checked. If schedules are not attached, acce2t the taxpayer's entry. (1) If an amount here represents net business income not covered by a business schedule, assign the appropriate industry code beside line 14, construct the appropriate business information in Cards 12-23; and include the net amount in business or professional profit/loss or farm profit/loss. (2) If an amount on line 14 is identified as capital gains dividends or is not identified and equals of schedule B, Part I line 3 and a Schedule D is not • attached to the return, enter the amoutt as Net capital gain (Card 06, Field 1) and double the amount and enter the computed amount for Net long-erm gain after carryover (Card 05, Field 4).. MT (13)26.3.44 (6..7O) IR Manuel 69 048 Zxplanation of Fields in the 1969 Individual Tax 4odel contd. ii - • •' STATIICAL PROCESSING HANDBOOK R IIVIDUAL INC0 T RNS C 234. Money Fielde (Amounts) —-Cont. :(-.2) Card 02 Form 1040 Field ______ Reference _________ Eq1anation of $pecial Instruction .2. Other (3) Do not move patronage divid.ends unless in'come (cont.) Line 14 (+) there is an indication that they pertain to a business or farm. Agricultural • program payments should always be moved to a Schedule F. S : 3. Other loss Line 14 (..) Same as Field 2. Enter negative amount. Check: Cannot have entries in both Fields 2 and 3. Leld 18 4.,Adjustments • Line15b (1) This field includes sick pay, moving expenses, employee "business" expense, and payments to retirement plans from separate taxpayer forms or schedules. If employee "business" expenses are in- cluded under itemized deductions, leave where reported by taxpayer. (2) When line 15b amount equals exemptions and/or itemized deductions, edit this amount •in "Other loss" Card 02, Field 3. •5. Adjusted Line l5c Use Examination Branch and Error Correc- Field 12 gross income - (1) tion Branch changes, if shown, as explained in 234:(l)(c); otherwise do'not change 'S IS 5-, taxpayer's entry. (2) "Breakeven" returns (zero, dash, or blank): Leave the card field blank. (3). Income which is excluded under provisions of Code See. 911 (income of a U.S. citizen residing in a foreign country) and income • excluded by treaty provisions should not be included in total income or any of the income- source fields. If all income is S excluded for these reasons, reject the • return with a reject code 1. (4) If totalincome changes because business income was removed from salaries and wage business expenses crns itemized deductions, • or adjustments from itemized deductions, etc., do not change taxable, income and - do not recompute medical deduction. Field 13 6. Deficit Line 15c(—) Fiel.d 5 instruction applies: Cannot have entries in both Fields S ond 6. Ctde ch.:k: The code for coluon 20 tthou 1i be S (Non-taxnbl.o). - MT (13)26.3.44 (6•1•70) IR Manual 69 049 • Explanation of .elds in the 1969 Individual Tax Model contd. 12 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCO1 TAX RETURNS 234 Moñèy.!ielde (Mounts)--Cont. (3) Card 02 •• Form 1040 Field : Reference. Exçplanation or Special Instruction • .7. Tax from This field is for tax table returns only. tax.t'able. Line 16 Check: Box A,B, or C on line 18 should be . checked. Note: For non-compute returns, the editor enter adjusted gross income, total number of exemptions1 and withholding amount. Computation of tax, surcharge: , and balance due or overpayment will be done by the computer. This instruction applies to 010 returns using tax table. CardO3 • Field 1..Tax surcharge Line 17 Card 02, Field 7 instruction applies. (This field may be blank even though Card 02, Field 7 has an entry). Field 27 2. Total income (Enter from line 18.) Verfication check: tax Line 18 sum of lines 16 and 17 or amount from • schedule , line 18. NOTE: For non-compute returns, the editor should enter adjusted gross income, total number of exemptions, and withholding amount Computation of Tax, surcharge, and balance due or overpayment will be • done by the computer. This instruction also applies to 010 returns. 3. Thcome tax Income tax withheld (W-2). Enter the line Field 28 withheld Line 19. • . 19 amount in this field even if salaries and wages are not reported. If the tax.. payer'senery was not accepted during revenue processing because.there was not an entry on line 11, do not accept the revenue processing change unless there is a definite indication that the amount was not income tax withheld. • 4. Excess PICA FICA payments by the taxpayer(s) in ex- Field 29 withheld' Line 20 cess of legal requiEemencs. Example; More than $374 social security • (FICA) tax withheld by one or more employers for one. filer during the year. If a joint c:urn, both fi1cr coul.d possibly Ii:ivc exccs. FCA. If this item is rcjortwt in MT 3)26.3.44 (6.1.70) R Monuol 69 0.5.0 Explanation of Fields in the 1969 Individual Tax Model contd. 13 STATISTICAL PROCESSING HANDBOOI( FOR INDIVIDUAL INCOl TAX RETURNS 234 Money Fields (Amounts)--Cont. (4) 'C) Card 03 Field Form 1040 Reference cp1anation or Special Instruction 4. access PICA itemized deductions, leave it there unless withheld (Cont.) Line 20 complete error resolution adjustments have been made. If the taxpayer' a entry is com— pletely disallowed during revenue process- ing, use the corrected figures. In all, other cases use taxpayer's reported figure (even if it equals W—1 amount), Field 30 5. Refundable. Enter line 21 amount, .• credits Line 21 Verification check: Foria 4136 and br Form 2439 6. 1969 Estimated Includes 1968 overpayment credit and 1969 Field 31 tax payments and advance payments. SOt does not differen— credits Line 22 • tiate between advance payments and esti- mated tax payments. Field 32 7. Balance due Line 24 The excess of line 18 over line 23. Card 04 Field Field 36 1.. Tax paid Remittance returns only: with return Line 24 (1) Full naid — line 24 is blue circled. Enter this amount. (2) Part paid- line 24 is not blue circled. Enter blue pencil amount shown at top right of return. This amount should be less than the amount shown on line 24. (3) Over paid - Enter the amount that has been l1ue circled on line 24 or the blue pencil amount at top right of return even if it is larger than balance due. There should be an entry in this field only if there is an entry for balance due. 2. Ovetpayment Entry shown only if taxpayer elects. If Field 37 credIted on 1970 disallowed during revenue processing, ue estimated tax Line 26a corrected figures. No entry: Leave blank Field 38 3. Overpayment refunded Line 26b Check: Line 23 minus line 18 4. Total itemized Schedule A, Enter the amount shown on schedule A, line deductions Line 17 17. This amount should equal the sum of lines, 9,10,14,15, and 16, if it doesn't, do not make any change, accept taxpayer's total. Not': This Ltein will not be avail;thlc if schedu ion A or T are lint ntt:nchol. MT 1(3)26j3.44 (6-70) IR Manual 69 051 xplanation of Fields in the 1969 individual Tax ode]. contd. 14. STATISTICAL PROCESSING RANDBOO1C FOR INDIVIDUAL INCO? TAX RETURNS V - : 234 Money Fields (Amounts)-—Cont, (5) Card 04 Form 1040 Field V Reference V cclanatjon or Special Instruction 5. Business or Check for attached business schedules V 1.eld' '5 professional Vflt Schedule C, (C or taxpayer's own). Enter net positive V • V profit: • •V V ()V amount from all schedules coded 07l0 V • 9101 azd 9102, when appropriate, per. instructions in Sec. 241.5. If a Schedule C is attached and there is not an entry on line 27 but the income is in— V V V cluded on Form 1040, line 14 enter the V V appropriate amount in this field.If the V income is not included on Form 1040, line V 14, edit the business schedule but do not enter an amount in this field. Field 6. Business or professional net Schedule , Same as Field 5. Enter negative amount. loss Line 27 (—) Check: Cannot have entries in both Fields 5 and 6. 7. Short-term Schedule B, NOTE: If a Schedule D has income which RLeld 41. capital loss V Part I, has not been included in total in- carryover Line? come or loss, make no entries in Card 04, Field 7 through Card 06, Field 5. If the Schedule D has a net loss and was not included in total income or loss, nake all applicable entries in Card 04, Field 7 through Card 05, Field 6, and V leave Card 06, Field 2 blank. Card 05 Field 1. Net short— Schedule B, The positive sum of lines 1—3 (+). 43 term gain Part I, V V V Fie].d after carryover Line 4 • V 2. Net short— • The negative sum of linesl—3 (-). FLeld 44 term loss after Part I, Check: Cannot have entries in both Fields carryover Line 4 1 and 2. 3. Long-term Note: Include capitalgains and losses from Field i capital loss carryover V Part I, Line 7 Schedules C and F. When income or loss from sale of cattle is moved from Schedule F to Schedule D, do do not limit the loss to $1,000. MT (13)26l3.44 (6•-7Q) IR Manual 69 052 Explanation of ie].ds in the 1969 Irdividual ax {ode1 contd. 15 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCOME Tx RETURNs. • 234 Money Fields (Amounta)—-Cont. (6) Card 05 Form 1040 _Fie1d : • Reference. Explanation or Specaj Instructions Field 45 4. Net long- •• term gain Sched1le 0, The positive sum of lines 5-8 (+). net If a amount of capital gain can be identi- after car- Part I, fied as a long-term or if.there is no over Line 9 indication that the amount represents long— • term or short-term gain, double the amount and enter it in this field. - 5. Net long- The negative sum of lines 5-8 (-). lie].d 46 term loss after Part I, check: Cannot have entries in both Fields carryover Line 9 4 and 5. If a loss on personal property is shown but was not included in total income, do not include in the entry for this field. 6. Net loss Enter only the negative sum of lines 4 Field 49 before limita- Part I, and 9 (—). tion Line 10 Field 50 7. Excess Part I, If line 10 shows a gain, enter 507. of long-term gain Line 11 line 9 or 507. of line 10, whichever is aller. Card 06 Field S 47 1. Net gain Part I, Line 12 Net positive amount (+). If there is an entry on line 12 but the amount was not included in total income, do not pick up the amount. Field 48 2.Net loss Part I, Net negative amount (-. L'ine 13. Check: Cannot have entries in both Fields 1 and 2. If an entry on line 13 was not included in total income, do not pick up the amount. Field 52 3. Total ordi- Part II, Card 06, Field 1 instruction applies. If nary gain Line .2 entry in Part II, line 2 is negative, net that amount with Part III, line 3 and make the resulting entry in Card 06, Field 4 or Field 5. Field 4. Other property Net positive (+) amount. Card 06, Field net gain Part III, l\ instruction applies. Line 3 MT I(13)2o.3.44 (6..70) IR Manual 69 053 Explanation of Pie ids in the 1969 dividual ax fodel contd. 16 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCO? TAX RETURNS 234 Money Fields (Mtounts)--Cont. (7). • Card 06 Form 1040 Field Reference cplanat ion or Special Instruction Schedule D, Field54' 5..Other prop- Part III, Net negative (—) ount..: erty. net lose Line 3 .• Check: Cannot have entries In both Fields 4 and 5. If an entry on line 3 was not included in total income do not pick up the amount. Field 51 6. Alternative . PartIV, A taxpayer could have an entry ott Schedule tax Line6 D, Part IV, line 6 and not use the alter- native tax if it is greater than the amount for tax computation on Schedule T, line 5. Pick up the amount reported by taxpayer if used by the taxpayer. NOTE: If an amount for alternative tax is shown on Schedule D there should be a check in the Schedule D box on Form 1040 line 18. Schedule E, Note: (1) If amount of income or loss on a Schedule E is not included in total income on Form 1040 line 14, do not make entries for the Schedule E infor- mation. (2) If an amount of Sch. E I income is shown with no breakdown bet- ween rents and royalties, partnership. and small business corporation, or estates or trusts, include .the amount in Other income (Card 02, Field 2) or Other loss (Card O2, Field 3). Pension and Annuity Income 7. Amount received Schedule E, Part I Enter only Field 56 this year Line 3 that portion of pensions and annuities receivej in tax year 1969. Card 07 Field Field 1. Taxable portion Line 5 All amounts which the taxpayer shows as being taxed in the current year are tax- able. 2. Rents, net Schedule E, Positive (+) portion of line 2 attribut- Field 60 income Part II able to rent. Should equal column 2 minus Line 2 (+) that portion of co1imns 4 and 5 attribute— blo to rent. Include delay rentals shown on Schedule E or taxpayer' s own schedule MT 1O3)26.3.44 (6•1.70) IR Manual 69 054 xplanation of Fields in the 1969 Irdividua]. Tax Model contd. 17 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCOl TAX RETURNS 234 Money Fields (Amounte)--Cont.(8) Card 07 Form 1040 Field Reference Explanation or Special Instruction Schedule E, Field 61 : loss Rents,.net Part ix, Line 2 (—) Negative (-) portion of line 2 attribut- able to rent. Should equal negative re- sult of computation for Card 07, Field 2. Check: Cannot have entries in both Fields Zand3. • " 6" s oyaltiee, net income • Line 2 (+) Eater the Net Positive amount from col. (3). Include royalties from copyrights, patents, oil, gas, and mineral properties. Should equal column 3 minus that portion of columns 4 and 5 attributable to royal- ties. Field 63 5. Royalties, net loss Line 2 (—) Same as Field 4. Enter negative amount. Check: Cannot have entries in both Fields' 4 and 5. Field 64 6. Partnership Part III (1) Include positive amounts in column net profit column d (+) (d) which can be associated with Partner- shipsin column (b). (2) Ifthe entry in column (a) or tax- payer"s own schedule indicates that the C partnership income is in th form of capital gains from the partnership, leave the amount in this field instead of at- tempting to move it to the capital gains schedule. (3) If income from the partnership is entirely from dividends or interest and the taxpayer makes a clear indication of this on the return, move the amount to Interest or Dividends. (4) Allocate partnership fees and salaries to wages, and salaries (Card 01, Field 5), 7. Partnership Field 65 net loss column d (-) Same as Field 6 Enter negative amount. Check: Cannot have entries in both Fields 6 and 7. Card 08 Field Estates or Field 66 Schedule E, trusts net income Part III, Include amounts in column (a) which can be associated with estatand trusts. Corn— column ci (+) binn incom and 'oss amounts it shown so— par:tcly and ntcr poitivc amount. Card 0/ ,FLold ( .inatructiotuj(2) and (3) ;Ijp].y. MT (l3)26j3..44 (6.1.70) IR Manual 69 055 • Explanation of Fields in the 1969 Individual ax Model contd. STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCOME TAX RETURNS 234 Money Fields (Amounts)--Cont. (9) Card 08 • Form 1040 Field Reference cplanation or Special Instruction Schedule E, 2. Estates or Same as Field 1. Enternegativeamount. Field 67 • trusts net loss Pat III, coLumn a (-) Check: Cannot have entries in both Fields land 2. 3. Small business Include positive amounts in column (d) Field 68 corporatioi net column d (+) which can be associated with small busi- profit ness corporations. 4. Small business Same as Field 3. Enter negative amount. Field 69 corporations net column d Check: Cannot have entries in both Fields loss 3 and 4. Field 72 5. Miscellaneous (1) Include positive amounts which can- income column d (+) not be associated with partnership, estate or trust, or small business corporation income. (2) Amounts for rents, royalties, or partnerships should be allocated to the appropriate fields. Leave in "delay rentals" if shown here. Include all "depletion restored" siren if shown on schedule E or taxpayer's schedule. (3) If an amount on linesi Part III is identified as capital gains or is not identified and equals of line 14 Form lO4P and Schedule D isnot attached to the return, enter the amount as net capi- tal gain (Card 06, Field 1) and double the amount and enter the computed amount for net long-term gain after carryover (Card 05, Field 4). (4) Do not move patronage dividends un- less there is an indication that they pertain to a business or farm. Agricul- tural Program Payments should always be moved to a Schedule F. 6. Miscellaneous Schedule E, Same as field 5. Enter negative amount. Field 73 loss Part III Check: Cannot have entries in both Fields column d (.—.) 5 and 6. 7. Net farm Schedule F, Check for attached business schedule (F Field 70 profit Part I or taxpayer's own.)' Enter net positive Line 52 (+) amount from all schedules coded 0110- or Part V, 0198. Card 04, Field 5 instruction deal- line 69 (i) ing with Schedule C applieg to Schedule F for this field. MT 1(13)26.3.44 (6•I70) IR Manual 69 056 19 Explanation of rnelds in the 1969 ndividua]. ax odel contd. STATISTICAL PROCESSING HANDBOOK FOR INDIVIDUAL INCO TAX RETURNS () . 231 Money Fields (Ainounta)--Cont. (o) Card 09 Form ioto Field Reference ExDlanation or Special Instruction Field 71 •:.l.. Net loss farm Line 52 (—) or Line 69 C—) Same as Card 08, Field 7. Enter negative amount. Check: Cannot have entries in both Card 08, Field 7 and Card 0.9, Field 1. • 2. Schedule C Schedule 0, Enter amount from line 10, regular tax or tax Part IV Line 10 line 14; ,alternative tax, This amount or Part V Line should be shown on Form 1040, line 18 and 14 a check in Schedule C box. 3. General rule Schedule R, Check: Sum of line 6, columns A +B Field 74 base for retire- Line 7 (a) for joint returns, for other than joint ment credit returns should equal amount on line 6 of column B (or column A if used). 4. Alternative If line 7 (b) is blank, use entry on line Field 75 base for cedit Line 7 (b) 7 of Part B if shown. Field 76 5. Tentative credit If there are no entries on lines 8-11 and Line 8 thereis an entry on line 12, enter that amount in this field. Schedule T Note: (1) For Card 09,' Field 6-Card 11, Field 1, make entries only ifSchedule T or taxpayer's own compueaion schedule is attached. If Schedule T is not complete, do not make any computation; pick up only what, taxpayer has entered or entries made during revenue processing. (2) If, however, a prior year form was used and a Sche- dule T has not been inserted, edit from the prior year form all possible entries for Card 09, Field 6 through Card 11, Field 1. (3) When a correction has been made on Form 1040 during revenue processing and the correction was not carried through on the Schedule T, edit only credits' shown on Schedule T. If no credits, leave entire of edit sheet blank. Sch. T portion 6. Total deduc- tions Line 2 7. Taxable in- come Line 5 Card 10 Field Field I. Income tax 21 bcforc This field is blank if Card 09, Field 7 is credits Line 6 1,1 auk Note: This field does not apply to Lax table returns. MT 1(3)26.;3.44 (6..7O) IR Manual 69 057 Explanation of elds in the 1969 rndividual !ax f.Iodel contde 20 STATISTICAL PROCESSING HANDBOOK FOR INDIVIDJAL INCOME TAX BETURNS 234 Money Fields (Ainounts)--Cont..'(U) Card 10. . Form 1040 Field . Reference -cplanation or Special Instruction Schedule T, 2. Tax eur— Card 10, Field 1. instruction applies.. charge . Line 9 This field may be blank even though Card 10. Field I has an entry. 3. Retirement . . . Verification cheek: Schedule R or tax-• Field 81 income credit Line 11 . . payer's own schedule. 4. Investment. Verification check: Form 3468 or taxpay- Field 79 credit Line 12 er's own schedule. 80 5. Foreign tax Verification check: Form 1116 or tax- Field credit Line 13 payer's own schedule. 6. Income tax Field 22 after credits Line 15 7. Self employment Verification check: Schedule SE or tax- Field 39 tax Line 16 payer's own schedule. Card 11 Field 1. Recomputed Verification check: Form 4255 or tax- Field 77 prior-year in- Line 17 payer's own schedule. • vestment tax credit 2. Federal income Note: If taxpayer has more than one Field 82 tax withheld-Male W-2 Form W-2 attached to his return,.be sure to summarize all amounts before making any entries on edit sheet. 3. Federal income tax Field. 83 withheld-Female 4. 1969 Wages subject. to withholding plus Field 84 other 1969 compensa- tion-Mal e 5. 1969 Wages subject to withholding plus Field 8.5 other 1969 compensa- tion-Femal e 6. F.I.C.A. tax Field 86 withheld—Male 7. F.I.C.A tax Field 87 withheld-Female MT (I3)26.3-44 (6.1-70) IR Monuol 69 058 1969 Individual Tax Model/Generai Description Explanation of Fields in Tape File Undefined in the.1969 Editing Instructions Field 5 EXEMPTIONS OTHER THAN AGE OR BLINDNESS - a computed amount equal to field 6 — (field 1 + field 3). 15 DIVIDENDS EXCLUSION — an amount equal to line 12b, page 1 of Form 1040. 19 TOTAL DEDUCTIONS — line 2, Schedule T of Form 1040. (NOTE: In the case of taxpayers using the tax tables, a computed amount was entered in Field 19). 20 TAXABLE INCOME — line 5, Schedule T of Form 1040. (See not to Field 19). 23 TAX SURCHARGE — an amount equal to line 17 of Form 1040 or line 9, Schedule T of Form 1040. 24 TAX SAVINGS FROM INCOME AVERAGING — for those returns using income averaging (tax status codes 2, 4, 7 and 9), the difference between tax computed by the regJiar method and tax computed using the income averaging method. 25 LONG—TERM CAPITAL GAIN IN .EXCESS OF SHORT—TERM CAPITAL LOSS- a computed amount equal. to field 45 — field 44. 26 BALANCE FOR PARTIAL TAX — line 3 from the computation of AlternativeTax section, Part IV, Schedule D of Form 1040. 33 POSITIVE ADJUSTED GROSS INCOME ADJUSTMENT — information field for Statistics Division use only. 34 NEGATIVE ADJUSTED GROSS INCOME ADJUSTMENT - information field for Statistics Division use Only. 35 TOTAL OVERPAYMENT — line 25 of Form 1040. 40 TAX BEFORE INCOME AVERAGING — for returns with tax computed using income averaging (tax status codes 2, 4, 7, and 9), the amount of tax which would have resulted if income averaging was not used. 55 RECOVERY OF COST THIS YEAR — line 4, Part I, Schedule E of Form 1040. 78 OTHER TAX-CREDITS — line 14, Schedule T of Form 1040 minus Fields 79—81. 69 059 1969 IndividUal Tax MOdel/neraJ. Desc.ptj9n Explanation of Fields in Tape File Undefined in the 1969 Editing Instrc,jo Field FLD — — b1nk 150 151— SORT FIELDS —. blank, for Statistics Division use only. 153 156 WEIGHT — contains the national sample weight to the return appropriate S 69 060 THE UPPER LIMIT COEFFICIENT OF VARIATION FOR THE ESTIMATED NUMBER OF RETURNS, 1969 TAX MODEL Estimated R jjI Number of Returns Under under WITJ-I ADJUSTE] GROSS $10,000 1$15,00o $20,000 INCOMLIci $50,000 $100,000 __________ $200,000 $10,000 under under under under and $15,000 $20,000 $50,000 $100,000 $200,000 over (1) (2) (3) (4) 5) _(6) _k7) (8) 30 (1) (1) (1) (1) 100 (1) (1) (i) (1) (1) (1) 300 (1) (1) (1) 20.12 0 (1) (1) 500 (1) (1) 11.62 (1) (1) (1) 1,000 (1) 31.32 9.00 (1) (1) (1) 22.15 6.36 3,000 (1) (1) -1 cn (1) (1) 12.79 5,000 (1) (1) 3.67 (1) 29.46 9.91 10,000 (1) (1) 28.33 2.85 r 20.83 7.00 15,000 (1) (1) 2.01 23.13 17.01 5.72 20,000 (1) 33.46 1.64 20.03 14.73 4.95 1.42 25,000 (1) 29.92 17.92 13.17 4.37 50,000 (1) 21.16 12.69 1.27 cn 9.31 3.13 100,000 25.81 14.96 8.96 .89 6.59 2.21 300,000 14.90 8.64 5.17 (2) 3.80 1.28 500,000 11.54 6.69 4.01 (2) 2.95 (2) 2) 1,000,000 8.16 4.73 2.83 :2.08 (2) 3,000,000 4.71 2.73 (2) 1.64 1.20 10,000,000 2.58 (2) (2) 1.50 I. (2) (2) ____ I (2) I (2) Note: The Coefficients of Variation and are expressed as a percentwere derived by an "Upper Limit's formula for the frequency estimates. estimates generally have Coefficients of Variation somewhat Amount those of their associated greater than frequencies. For Frequencies not classified by Adjusted Gross Income, Column (2) of the table should be used. (1) Sample too small to yield reliable estimate of variability. sampling (2) Not applicable since number of returns in Column (1) exceeds range of possible frequency estimates. 69 061 Section t Explanation a Classifications and Term CLASSIFICATIONS shown on each return. The Office of InternationalOperL tions had charge of returns with addresses outside t Adjusted gross income classes 50 States and the District of Columbia. These includc The amount of adjusted gross income reported by the returns from the Virgin Islands, Panama Canal Zone, ar taxpayer on his return was generally the basis for classi- returns with foreign addresses, all of which are shown fying data by size of income. Returns with deficit and the State statistics under "Other areas." Oualifying r those on which income and loss were equal were classi- turns filed by bona fide residents of Puerto Rico, als fied as having 'No adjusted gross income"and appear as processed by the Office of International Operations, ar a separate class. shown separately in the State data. Each of the seven Internal Revenue Regions was corn posed of a group of districts, as shown by the map in sec Marital status tion 5, and each had a service center in which returr. The five marital classifications were: filed with the service center or through the district o (1) Joint returns of husbands'and wives, fices were processed. (2) Separate returns of husbands and wives, National totals in the State and regional tables diffe (3) Returns of heads of household, slightly from those presented elsewhere because of dif (4) Returns of surviving spouse, and ferences in computing the national and district samplir (5) Returns of single persons not head of household weights used to derive the statistics. Other limitation or surviving spouse. can be found in section 5--State and Metropolitan Are Marital status was usually determined as of the last day Data. of the tax 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 re- Returns with standard deduction or with marry, he was considered to be single for the entire year. itemized deductions Each of the above classifications is described under a This classification of returns was basically determine separate heading. by the presence or absence of nonbusiness itemize deductions. Method of tax computation Returns with itemized deductions were those return which had positive adjusted gross income against whic Line 18, page 1 and Schedules D and G of Forms 1040 the taxpayer claimed itemized nonbusiness deductions i were used as a basis for classifying Income tax returns computing his taxable income. A relatively few return according to the method Of tax computation used: which showed no deductions were classified as itemize The three methods of tax computation were: deduction returns. This was because when married per (1) Normal tax and surtax, sons filed separate returns and all of their Itemized de (2) Alternative computation of tax, and ductions were claimed on one of the returns, the othe (3) Income averaging (actually a method of computing spouse was required to file the same type of return eve. income subject to tax). though no deductions were claimed. Each is described under separate heading in the Expla- Standard deduction returns included the following nation of Terms below. (1) Returns with adjusted gross income under $5,0O on which te income tax was determined from the "ta. Regions and States table," an& (2) All other returns on which the taxpayer electe State classifications were based on the district code • tO use the 10 percent or minimum standard deduction given each return in the Internal Revenue Service district or regional service center in which It was filed. Dis- Standard metropolitan statistical areas tricts, or groups of districts, were identical with State boundaries, except that the District of Columbia was a A taxpayer's post office address and the Internal Reve part of the Baltimore, Maryland, Internal Revenue Dis- nue district code assigned to his return were the base trict. However, District of Columbia returns were coded for a return's inclusion In one of the 125 standard metro separately based on the street address and ZIP code politan statistical areas listed in text table 5B of sectio 34 69 062 342 Individual Returns/1969 • Classifications and Terms 5. These 125 areas conformed to the 1969 definitions de- (2) Employee business and moving expenses, veloped by the Office of Management and Budget and had (3) Expense deductions attributable to rents and the largest populations within the 50 States based on the royalties, 1960 Census. (4) Expenses of outside salesmen attributable to earning a salary, commission, or other compensation, Tax rate classes (5) Depreciation and depletion allowed life tenants and income beneficiaries of property held in trust, Tax rates were used to classify data for some of the (6) Exclusion of allowable sick pay if the sick pay tables included in section 3 of this report. A tax rate was included in gross salary, class was the percentage at which all or a portion of an (7) Deductible losses from sales of capital assets individual's income was taxed. •'Returns with the tax rate and other property, as the marginal rate" referred to the highest rate used (8) Deductible half of the excess of net long-term by a taxpayer in computing his tax. capital gain over net short-term capital loss, See also the example and text in section 3--Tax Com- (9) Business net operating loss carryover, and putation and Tax Rates. (10) Contributions to a retirement fund by the self— employed. Tax rate schedules A deficit adjusted gross income occurred when the al- lowable deductions or losses exceeded gross income. The three tax rate schedules designed for individual in- come taxpayers were for: Alternative computation of tax (1) Joint returns and returns of surviving spouse, (2) Separate returns of husbands and wives and re- Under the alternative computation, half the excess of turns of single persons not head of household or'surviving net long-term capital gain over net short-term capital spouse, and loss was included in taxable income, and tax before cred- (3) Returns of heads of household. its was 50 percentof the excess plus an amount calculated Reproductions of these schedules can be found in sec- by applying the normal tax and surtax rates to the balance tion 9--Forms and Instructions. of taxable income. The effect was to tax long-term capi- tal gains at a maximum rate of 25 percent and all other Taxable and nontaxable returns income at the regular rates. This method of income tax computation was available Taxability or nontaxability was determined by the pres- to taxpayers with a long-term capital gain in adjusted ence or absence of income tax after credits. Many returns gross income whose taxable income, including long-term showed a liability for self-employment tax or tax from re- capital gains, exceeded $52,000 on joint returns and re- computing prior year investment credit; however, these turns of surviving spouse, $38,000 on returns of head of taxes were disregarded for purpose of this classification. household, or $26,000 on single, returns or on returns of married persons filing separately. These were the points Taxpayers age 65 or over at which the combined normal tax and surtax marginal rates on the different rate schedules exceeded 50 percent. The presence of the additional exemption allowed tax- payers age 65 or over was used as the basis of this clas- Alternative method for computation of sification. In the case or joint returns of husbands and retirement income credit wives, some had only one additional exemption for age 65 or over while others had two additional exemptions See • 'Retirement income credit." -for age, indicating that both husband and wife were 65 or more. Whether one or two exemptions were claimed, the Balance due after remittance return was considered a return of a taxpayer age 65 or ovef This amount was the difference between "Tax due at time of filing" and any remittance tendered by the tax- payer with his return. TERMS Explanations of terms are designed to aid the user in Balance for partial tax interpreting the statistical content of this report and should not be construed as interpretations of the Internal See "Alternative computation of tax." Revenue Code, or related regulations, procedures, or I policies. Code sections cited were those in effect for Business or profession net profit or net loss 1969. This source was reported by individuals who were pro- prietors of a business or members ofa profession. When Adjusted gross income there were two or more proprietorships operated by the This amount was the result of reducing gross income taxpayer, the single amount of profit or loss included in from all sources subject to tax by deductions such as the - adjusted gross income represented the combined profit following: and loss from all business activities. The proprietor was (1) Ordinary and necessary expenses of operating a required to exclude dividends and other investment income trade or business, from business profits and to Include them instead with the 69 063 fncjiyidual Returns/1969 Classifications and Tcms various types of investment income for which separate provision was made on the individual income tax return. or nontaxable distributions of stock or stock lightE Business costs and expenses were deductible from turns of capaI, or liquidation distributions .A1s gross receipts or gross sales in arriving at net profit or cluded were so-called dividends on deposits or loss. Compensation of the prOprietor was taxable income drawable accounts in mutual saving banks, cooper and therefore not allowed asabusinessdeduction in com- banks, savings and loan associations, and credit puting net profit. The carryover of a prior year net op- erating loss was not considered a business expense but Estates and trusts net income or loss was offset instead against ''other income" on the pro- prietor's income tax return. This was the beneficiaries' share of fiduciary inc Information on business receipts and expenditures can (with the exception of the items described below '; be found in Statistics of I)zco)ne_Busjness Income Tax were reported separately) from any estate or trust. Returns. come from estates and trusts included amounts requ to be distributed and amounts credited to a beneficia account from current year fiduciary income, whethe Capital gains and losses not actually received by him. Italso included his sha. See "Sales of capital assets." any accumulation distribution made by the fiduciary complex trust which distributed income accumulate Capital loss carryover prior tax years. The beneficiary's share of these di butions was reduced by his share of depletion and de See ''Sales of capital assets." ciation before reporting the net amount as part of adju gross income. Credit on 1970 tax The taxpayers also excluded from estate or trust come his share of dividends, interest, and gains or lo This credit was the partof the overpaymentOn 1969 tax from sales of capital assets and other property. Such which the taxpayer specifically requested be credited to come (which comprised the largest portion ofincome f his estimated tax for 1970. an estate or trust) was reported on the tax return on separate lines provided for this purpose. A loss fror, state or trust was allocated to the beneficiary only L Dividend exclusion termination of an estate or trust which had a net ope A taxpayer could exclude up to $100 of eligible dividends ing loss carryover or a capital loss carryover, or for from adjusted gross income. On joint returns, the maxi- last tax year had deductions (other than for exempt. mum exclusion was $200 if both husband andwife received and charitable contributions) in excess of gross inco eligible dividends, each excluding up to $100 against his Additional Information on estate and trust income respective dividend income. For a further explanationof be found in Statistics of Income- -1965, Fiduciary, C eligible dividends see "Domestic and foreign dividends and Estate Tax Returns. received." Excess social security taxes withheld Dividends in adjusted gross income See "Income tax withheld." Total domestic and foreign dividends less the aividend exclusion equalled dividends in adjusted gross income. Exemptions For further explanationse' 'Domestic and foreign divi- dends received" and "Dividend exclusion." In the computation of taxable income, a $600 deduct was allowed for each exemption claimed. An exempt was allowed for each taxpayer shown onareturn (on Domestic and foreign dividends received returns husband and wife were each regarded as a j' t Domestic and foreign dividends received included-- payer). If either husband or wife filed a separate retu (1) Dividends eligible for exclusion consisting of the other spouse's exemption could be claimed on t dividends from domestic corporations received directly, return only if the spouse did not file a return, had or indirectly as a beneficiary of income from estates or gross income, and was not the dependent of anoti- trusts, or as Included in a partner's share of partnership taxpayer. profits. Additional exemptions were allowed for a taxpayer (2) Dividends not eligible for exclusion consisting of spouse who was either age 65 or over or who was bli dividends from-- before th close of the taxable year. Exemptions we (a) foreign corporations, China Trade Act cor- also allowed for qualified dependents ho had less ft porations, exempt farmers' cooperatives, real estate in- $600 gross income and who received more than half tht vestment trusts, and support from the taxpayer. (b) corporations doing business in possessions of The total number of exemptions shown in this rep. the United States, if 80 percent or more of-their gross Includes some duplication. This occurred in the case of income was derived from U.S. possessions and 60 percent (1) dependents who had less than $600 gross incorr or more from the active conduct of a business In U.S. but filed a return to obtain a refund of tax withheld Possessions. wages, and Domestic and foreign dividends did not include capital (2) dependents under 19 years of age or students w gain distributions from regulated investment companies •."ere required to file a return because their gross incom we $600 or more. 69064 344 Individual Returns/1969 • Classifications and Terms In each of these instances individuals were counted for at least One qualifying twice, as taxpayers filing their own returns and as de- relative This classification was pendents on another taxpayer's return. available only to unmarried persons, married persons legally separated, or persons married to nonresident aliens, Farm net profit or net loss A special tax rate Schedule'vas provided for head of household which gave This source was reported by individuals who were pro- approximately half the benefit of the joint return schedule. prietors of a farm. When there were two or more pro- prietorship farms operated by the taxpayer, the single amount of profit or loss included in adjusted gross income represented the combined profit and loss from farm busi- Income averaging ness activities. The income averaging F arm business costs and expenses were deductible from computation permitted a part of an unusually large amount of taxable income for any one gross farm business receipts in arriving at farm net profit year to be taxed atlower rates, thus resulting in a reduc- or loss. Gain from sales of livestock held for breeding tion of the over-all amount of tax due, An eligible indi- purposes and of land withunharvestedcrops was reported vidual could choose this computation if his averageable on the separate schedule for sales of property (Schedule income for the year was more than $3,000. D) and was not reflected in farm net profit or loss. "Averageable income" was the amount by which "ad- Additional information on farm receipts and expendi- justed taxable income" exceeded 133-1/3 percent of tures can be found in Statistics of Income--Business "average base period income" (the average of taxable Income Tax Returns. income with certain other adjustments, for the 4 pre- ceding tax years). Briefly, the income averaging com- putation operated to tax all averageable income at the Foreign tax credit same rate which applied to the first one-fifth of such income. A credit against income tax was permitted for foreign - taxes paid only if nonbusiness deductions were itemized "Adjusted taxable income," from which the average- able income was derived, covered all types of taxable and the foreign tax was excluded from those deductions. The credit related to the income and profits taxes paid to income except net long-term capital gains, income from foreign countries or possessions of the United States and gifts or inheritances, or wagering income. See Schedule included the taxpayer's share of such taxes paid through G, Income Averaging, reproduced in the section on partnerships and fiduciaries, In general, the tax credit "Forms and Instructions," for an explanation of the com- was limited to the same proportion of the income tax putation involved. before credits as the taxable income fromforeign sources bore to the entire taxable Income, but could not exceed the Income subject to tax Imount of foreign tax paid. Amounts in excess of the limi- :ation could be carried over for use in computing the For returns with normal tax and surtax, the income credit for other years. subject to tax was "taxable income." For returns with alternative tax computation, the income subject to tax was either: Form W-2, Wage and Tax Statement (1) Taxable income, when that amount exceeded one- half the excess net long-term capital gain over net short- Employers were required to furnish a Form W-2, Wage term capital loss, or md Tax Statement, to each employee fromtwhom income :ax was withheld or would have been withheld if the em- (2) One-half excess net long-term capital gain over 1oyee had claimed no more than one exemption during net short-term capital loss when that amount equaled or :alendar year .1969. Forms W-2 showed the amounts of exceeded taxable income. edera1 income tax withheld, wages paid subject to with- -iolding other compensation (amounts includible in gross Income tax after credits ncome but not subject to Income tax withholding such as raveling or other expense ailowances ofemployees), and Income tax after credits was determined by subtracting ICA (social security) tax withheld. statutory credits from the total of Income tax before cred- See section 1, Returns Filed and Sources of Income, for its and the tax surcharge. It did not Include self-employ- n explanation of the difference between statistics for ment tax or tax from recomputing prior year investment tems reported on Form W-2 and comparable items re- credit, nor did it ta)e into account refundable credits, orted on the return itself. Income tax before credits enera1 rule method for computation of Generally, this was the tax liability computed on taxable 'etirement income credit income based on: See "Retirement income credit." (1) The regular combined normal tax and surtax in- cluding tax from the optional "tax tables," (2) AlternatIve tax, or leads of households, returns of (3) Tax computed using the income averaging pro- These returns were filed bypersons who furnished over visions. alf the cost of maintaining a household for the entire year Income tax before credits did not include the 10percent surcharge on tax. 69 065 Individual Returns/1969 • Classifications and Terms For many returns, income tax before credits had to be The Tax Reform Act of 1969 provided that the inve derived for the statistics because for 1969 Schedule T, ment credit would no longer be available for prope on which income tax before credits was computed, did not always have to be filed with the return. acquired after April 18, 1969 or for property on w1 construction, reconstruction, or erection began after date. However, certain exceptions were provided property constructed or acquiredunderabindingcontr Income tax withheld entered into before April 19, 1969. The new law also P vided a limitation of 20 percent on unused credits wi Tax withheld represented amounts deducted by em- could be claimed as a carryover to any year after Ic ployers from salaries, wages, tips, and other forms of However, the Act extended the carryover period frot remuneration. An employer could use either the "per- to 10 years in certain cases. centage" or "wage bracket" method in determining the amount to be withheld. Both methods were based on Itemized deductions graduated withholding rates ranging from 14 percent to 33 percent. Itemized deductions from adjusted gross income cc For 1969, statistics on income tax withheld also include be claimed for contributions, interest paid, taxes, me excess social security taxes withheld. If more than cal expenses, and other deductions for which no spec. $374.40 of social security (FICA) tax was withheld in line or schedule was provided on the return, Such ot. 1969 from an employee because he worked for more than deductions included unreimbursed casualty and tI one employer, the excess could be taken as a credit losses, alimony payments, child care expense, edu toward payment of the employee's income tax. In the case tional expense, and certain expenses connected with of a joint return, the credit was computed separately for taxpayer's employment, each taxpayer. Itemized deductions were tabulated on returns positive adjusted gross income even though they wer€ Increase in tax due to surcharge excess of taxable income. On breakeveri or deficit justed gross income returns, the taxpayer had alre See "Surcharge." reached a nontaxable state without the necessity of item ing; consequently, itemized deductions were not tabula on these returns even though the taxpayer may have Increase in tax credits due to surcharge tered itemized deductions on his return form. See "Surcharge." Joint returns of husbands and wives Interest received These were either returns on which married taxpay Interest received was the taxable portion of interest reported their combined income or returns of marr: received from bonds, debentures, notes, mortgages, per- taxpayers where only one spouse had income but sonal loans, bank deposits, and savings accounts. Ex- emptions of both were claimed. Generally, the filing a cluded, for example, was the interest on State and local joint return resulted in a tax saving because of rinco Government obligations which was tax-exempt and there- splitting" which was automatically provided for in fore did not have,to be reported on the tax return. joint return tax rate schedule. Marginal tax rates Investment credit The marginal tax rate was the highest rate used b taxpayer in computing tax. Since it applied to Income In general, the investment credit applied against Income excess of a specified amount, the marginal rate var tax was 7 percent of a taxpayer's qualified investment in from taxpayer to taxpayer. For example, ifa joint rett certain new and used depreciable assets, chiefly machin- showed income subject to tax of $11,000, the tax r ery and equipment, with a useful life of 4 years or more. schedule (reproduced in the income tax return facsim Qualified investment was defined as cost or basis reduced at the end of this report) indicates tax as $1,380 plus by: percent of the excess of $8,000. The marginal rate (1) one-third If the useful life was at least 6 years this case was 22 percent, and the income taxed at but less than 8 years, or marginal/rate was $3,000 ($11,000 minus $8,000). E (2) two-thirds if the useful life was at least 4 years also the example In the text in section 3--Tax Comç but less than 6 years. -. tation and Tax Rates. Total qualified investment was limited to $50,000 for used property and was reduced by 4/7 if the investment was in public utility property. Income tax against which the credit was applied was first reduced by the foreign Minimum standard deduction tax and retirement income credits. If the am'ount of tax remaining was more than $25,000, the credit could not See "Standard deduction." exceed $25,000 plus 50 percent of the tax liability over that amount. Amounts in excess of this limitation could be carried over (or carried back) for a prescribed num- Miscellaneous income or loss ber of years to be claimed as a credit. "Other sources of Income (or loss)." 6 9 o 6 6See ndividuaI Returns/1969 Classifications and Terms 346 Normal tax and surtax Other sources (net) The income tax imposed upon taxable income subject Included here were such items as alimony received, to normal tax and surtax rates was divided into a: prizes, awards, sweepstakes winnings, gambling profits, (1) Normal tax of 3 percent of taxable income, and recovery of bad debts and taxes deducted ma prior year, (2) Surtax levied on a scale graduated in relation to insurance received as reimbursement for medical ex- size of taxable income. penses taken in a previous year, and any other income To facilitate computation, the normal tax and surtax subject to tax for which no entry was provided on the rates were combined in the tax tables furnished to the return form, public. Taxpayers were required to apply any deduction for business net operating losses against "other income." In general, these amounts represented prior year losses of proprietors, partners, and shareholders of Small One-half excess long-term gain Business Corporations electing to be taxed through own- ers that exceeded the adjusted gross income of the loss See "Alternative computation of tax." year. For 1969, statistics on other sources of income or loss also include amounts shown separately in prior years as statutory adjustments. These were special deductions Ordinary gain from sales of depreciable property from gross income used in arriving at adjusted gross Included here was that portion of gain not eligible for income. Included here were the following: treatment as a long-term capital gain (under section (1) Sick pay exclusion, 1231) from sales of depreciable property specified in (2) Self-employed retirement deduction, sections 1245 and 1250 of the Internal Revenue Code and (3) Employee business expense deduction, and thereby not qualified to be taxed at the special capital (4) Employee moving expense deduction. For 1969, ''statutory adjustments" in arriving at ad- gains rate. justed gross income could not always be separately iden- The depreciable property to which section 1245 applied tified. Many low-income taxpayers using Form 1040 for was (1) personal property other than livestock, whether the first time following discontinuance of Form 1040A, tangible (such as machinery and equipment), or intangible the short punchcard form, apparently reported a variety (such as patents or copyrights), and (2) other tangible of unrelated items as statutory adjustments including, in property including certain realty other than buildings and some instances, their total personal deductions. their structural components, if it was an integral part of certain specified business activities, or which constituted research or storage facilities used in connection with such activities. The business activities qualifying were manu- facturing, production, or extraction, or the providing of Other tax credits transportation, communication, electrical energy, gas, water, or sewage disposal services. "Other tax credits" included (1) the credit for with- The depreciable property to which section 1250 applied holding on tax-free covenant bond interest allowed only was real property not already covered by section 1245. if nonbusiness deductions were itemized, and (2) the In general, this property nsisted of buildings or their "throwback tax credit," whether claimed on a standard structural components in the case of tangible property, or itemized deduction return. Also included were un- or represented leaseholds of land, in the case of intangible identified amounts of retirement Income, investment, or property. foreign tax crthts. The amount of gain on dispositions of property under The credit for tax-free covenant bonds was for the tax sect4ons 1245 and 1250, treated as ordinary gain generally paid on the bond interest by the issuing corporation for depended upori the amount of depreciation claimed on the the owners. Bonds with a tax-free covenant were issued asset although other factors were also considered in the prior to 1934 and provided that the corporation pay part case of section 1250 dispositions. of the income tax on the interest usually at the rate of 2 Under section 1245, the amount of gain treated as ordi- percent. nary income was based, generally, on depreciation al- The throwback tax credit was the recipient's pro rata lowed or allowable after 1961. share of taxes paid by a complex trust in preceding tax Under section 12.50, the amount of gain treated as ordi- years which woj.ild not have been payable by the trust had nary gain was based, in general, on the depreciation al- the trust in fa distributed Income currently to the bene- lowed or allowable after 1963. But this "depreciation ficiaries instead of accumulating it before distribution. recapture" was further qualified so that if the property Thus, Income ta' paid on accumulation distributions was held for more than 1 year before it was disposed of, deemed distributed In prior years was not refunded to ordinary gain was reduced to the difference between the the trust but was allowed as a credit against the income depreciation computed under some accelerated method, tax liability of the recipients. and the depreciation computed assuming the straight-line Credits In excess of the total tax were treated as an method. If the property was held more than 20 months, overpayment and as such were refundable. the "recapture" was further reduced to a proportion of For many returns, "other" tax credits had to be de- this difference until, when the property was held for 10 rived for the statistics because for 1969 Schedule T, on years, the "recapture" as ordinary gain was not ap- which "other" tax credits were shown, did not always plicable at all. have to be filed with the return. 69 067 Individual Returns/1969 • Classifications and Ternis 347 Other taxpayments Pensions and annuities, taxable portion Included here for purposes of table 3D in section 3 was See "Pensions and annuities." the sum of the following taxpayments: (1) Income tax withheld (including excess social security taxes withheld), and Recovery of cost (2) Refundable credits. See "Pensions and annuities." Each of the above is described under separate heading. Refund Overpayment A refund of tax included all overpayments not applied An overpayment of tax occurred when the sum of the tax by the taxpayer as a credit to the next year's estimated withheld, payments on declaration of estimated tax, and tax. See "Overpayment." refundable taxpayment credits, exceeded the combined income tax after credits, self-employment tax, and tax Refundable credits from recomputing prior year investment credit. Over- payments could be refunded or, at the taxpayer's election, "Refundable credits" represented certain nonhighway taken as a credit on the subsequent year's estimated tax, Federal gasoline taxes or tax withheld by regulated in- or taken partly as a refund and partly as a credit against vestment companies. Such credits were combined with estimated tax. other prepayments on the tax return, and any amounts in excess of the income tax liability were refundable. Partnership net profit or net loss The credit for nonhighway Federal gasoline taxes could be claimed by any individual for Federal taxes paid on: Partnership net profit or loss was reported by persons (1) gasoline used-- who were members of a partnership, syndicate, joint (a) on a farm for farming purposes, venture, or association. The taxpayer's profit or loss (b) other than as fuel in a highway vehicle, shown was his share only of the ordinary income or loss (c) in furnishing scheduled common carrier public of the enterprise together with payments made to him as passenger land transportation along regular routes. a salary or for the use of capital. If the individual was a (2) lubricating oil used other than in a highway motor member of more than one partnership, the single amount vehicle. of partnership profit or loss reported in adjusted gross Tax withheld by regulated investment companies was income, whether actually received or not, was the com- the shareholder's share of taxes withheld on the net bination of all his shares. long-term capital gain realized by a regulated invest- The ordinary income of the partnership did not include ment company but not actually distributed. The share- dividends qualifying for the exclusion, net short- and holder was entitled to a credit for the 25 percent tax paid long-term capital gain or loss, and interest on tax- by the company as an offset against the income tax he free covenant bonds. The partner's share of each of these paid for the year. items was reported by him in its respective source of income on the return form. Rent net income or loss Additional ipformation for partnerships can be found in Statistics of Income- -Business Income Tax Returns. Rent net income or loss constituted a part of adjusted gross income and was determined by deducting from gross Payments on 1969 declaration of rents amounts for depreciation, repairs, maintenance, estimated income tax interest, taxes, commissions, advertising, fuel, Insur- ance, janitor service, and other allowable expenses re- These payments, summarized on the Individual income lated to the rented property. tax return, were paid with the 1969 Declaration of Esti- maed Income Tax, Form 1O4OES. The amount reported Retirement income credit included any credit which was applied against the esti- - mated tax by reason of an overpayment of the 1968 tax A credit for "retirement income" was allowed an indi- liability. vidual if he received • 'earned income" of more than $600 in each of any 10 calendar years prior to the tax year for Pensions and annuities which the credit was computed. Retirement,frncome for taxpayers under 65 years of age Pensions and annuities represented the taxable portion was defined as pension and annuity income received under of the amounts received during the year. The full amount public retirement systems. Retirement income for tax- of a pension or annuity received by a retired employee payers age 65 or over was defined as all pension and who contributed nothing toward the cost was taxable. If annuity income plus dividends in adjusted gross income, the recipient contributed to the cost, methods were pro- interest, and gross rents. vided for computing the nontaxable amount to be excluded. Two methods were provided for computation of the The method used depended upon the type of pension or credit: annuity but, in general, was designed to estimate the por- (1) Under the general rule, the tentative credit was tion of receipts that represented recovery of recipient's 15 percent applied to the lesserofretirementincome re- cost. ceived during the year or $1,524 for each qualified re- 69 068 343 Individual Returns/1969 • Classifications and Terms tiree (on joint returns, if each spouse met the past Sales of capital assets earnings and current retirement income requirements, the total retirement income limitation for both was In general, capital assets for tax purposes meant $3,048) reduced by earned income and by social security, property regarded or treated as an investment, such as railroad retirement, or other tax-free pensions and an- stocks, bonds, and nonbusiness real estate including a nuities excluded from gross income, and personal residence. Thus, property held for sale during (2) An alternative method was available if a husband the ordinary course of business operations and real and and wife filed a joint return, were both age 65 or over, depreciable property held in connection with a business and at least one met the earned income requirement. were among the property types not covered by the tax This method provided a $2,286 limitation on the base of definition of capital assets. the tentative credit. As under the general rule, the base If capital assets were held for more than 6 months, was reduced by earned income and tax-free pension and only half of the gain on their sale was taxable and in annuity payments excluded from gross income. many instances at a rate lower than otherwise (see Earned income was defined, in general, as salaries, ''Alternative computation of tax"). If sales resulted in wages, and other compensation for personal services a loss, regardless of how long the asset was held, the rendered with certain adjustments based on the tax- loss could be completely offset against capital gains and payer's age as follows: to a limited extent against ordinary income. However, (1) Taxpayers under 62 years of age were required capital losses from sales of property held for personal to reduce the maximum amount of retirement income for use were not deductible. credit computation by earned income in excess of $900, Certain assets used in a business and thus not covered (2) Taxpayers age 62 but under 72 were required to by the definition of capital assets could nevertheless be reduce the maximum amount of retirement income by 50 treated as capital assets under special conditions, Live- cents for every dollar earned in excess of $1,200 but stock held for breeding purposes; unharves ted crops sold less than $1,700; earned income in excess of $1,700 re- with the land they grew on, certain natural resources in- duced the maximum dollar for dollar, cluding timber, and, to a diminishing extent, real and (3) Taxpayers 72 years of age or older had no re- depreciable business property, were among the asset duction for earned income. types specifically accorded this treatment. The actual credit, however computed, could not exceed If held more than 6 months the gain upon sale of these the income tax reduced by credits for foreign taxes and assets received the special capital gains treatment. How- for tax withheld on tax-free covenant bond interest. For ever, unlike capital assets, sales of these assets were purposes of the income tax surcharge, taxpayers eligible also given preferential treatment when they resulted ma for the retirement income credit could reduce income tax loss. In contrast to a capital loss, such losses were de- before credits by the credit and then compute their sur- ductible in full during the current year. charge on the remaining tax. For a description of the tax treatment of gains from sales of real and depreciable business assets, see "Ordi- Royalty net income or loss nary gain from sales of depreciable property." Net short-term gain or loss, --Gains and losses from Net royalties consisted of gross royalties less deduc- sales or exchanges of capital assets held 6 months or tions for depletiot, depreciation, office rent, legal fees less were considered to be short-term. To obtain the net clerical help, interest, taxes, and similar items. Gross short-term gain or loss, gains and losses from current royalties included revenues from oil, gas, and other year transactions were combined with- - mineral rights; revenue from patents, copyrights on lit- (1) any capital loss carryover from 1959-1963, erary works, trademarks, formulae, and so on. (2) any short-term capital loss carryover from 1964-68, and (3) any net short-term gain or loss received from Salaries and wages (gross) partnerships or fiduciaries. Net long-term gainor loss.--Gains and losses from Gross salaries and wages as reportedonthetax return sales or exchanges of capital assets (or property treated were amounts of compensation for personal services prior as capital assets) held more than 6 months were con- to statutory adjustments which reduced salaries and wages sidered to be long-term and therefore eligible for special by the sick pay exclusion and certain expenses connected beneficial tax treatment (see "Net gain" below and "Al- with employment. Also Included were commissions, ternative computation of tax"). To obtain the net long- bonuses, tips, fees, excess reimbursement over employee term gain or 10,5, gains and losses from current year business expenses, and the value of nonmonetary pay- transactions were combined with- - ments for services, e.g., merchandise, accomodations, (1) any net long-term gain or loss received from or property. Identifiable amounts for any of these cate- partnerships or fiduciaries, gories which may have been reported by taxpayers in (2) any capital gain distributions of regulated in- "other sources of income" were treated as salaries and vestment companies, mutual funds and real estate in- wages for the statistics. Excluded were portions ofsal- vestment trusts, aries and wages earned abroad which were tax-exempt (3) net long-term gains included in the profits of under special provisions of the law. Small Business Corporations electing to be taxed through Also shown in this report are data for "Wages and shareholders (reduced by the special tax computed at the other compensation" as shown on Form W-2. This con- company level), and cept differs slightly from "Salaries and wages" (gross) (4) any long-term capital loss carryover from 1964- as reported on Form 1040, as is explained in section 1. 68. 69 069 Individual Returns/1969 • Classifications and Terms 34 Short-term capital loss carryover, --This carryover Ordinary gain on depreciable property is shown was the unused portion of any net capital loss sustained as a separate item, from 1959-1963 and any net short-term loss sustained since 1963 which exceeded the loss year's net capital Self-employment tax gain or the $1,000 maximum net capital loss deduction. Long-term capital loss carryover.- -This carryover This tax- -levied under the Social Security system-- was the unused portion of net long-term loss sustained was reported by each individual who had self-employment since 1963 which exceeded the loss year's net short-term earnings of at least $400 derived from a proprietorship capital gain or the $1,000 maximum deduction for net or from his share of partnership profits. Citizens em- capital loss. If both a net short-term loss and net long- ployed by foreign governments or international organiza- term loss were incurred, the net short-term loss was tions were subject to self-employment tax on salaries for offset first, 1960 and subsequent years. Certain types of income and Net gain. - -In computing the gain in adjusted gross in- deductions such as investment income, capital gain or come, the net short-term gain or loss was combined with loss, net operating loss deduction, and casualty losses the net long-term gain or loss and the resultant gain if were not allowed in computing self-employment earnings. long-term was reduced 50 percent. The amount of net The maximum amount subject to self-employment tax gain in adjusted gross income conformed toone of several for 1969 was $7,800 reduced by any wages on which social conditions, namely, (a) on returns with a net long-term security tax had beenwithheldbyanemployer. The maxi- gain, the amount included in adjusted gross income was mum self-employment tax payable was S538.20 based or 50 percent of the excess net long-term gain over net the 6.9 percent rate in effect for that year. Nonrefundabl short-term loss, (b) on returns with only a net long- income tax credits could not be applied against this tax. term gain, 50 percent of the gain, (c) on returns with both net short- and long-term gain, the entire amount of Separate returns of husbands and wives net short-term gain combined with 50 percent of the net long-term gain, (d) on returns with only a net short-term Generally, these were returns of married persons, each gain, the entire net gain, and (e) on other returns, the of whom filed a return independent of his spouse and re- entire excess of net short-term gain over net long-term ported only his own income, exemptions, and tax. Also loss, included were returns of married persons whereonlyone Net loss. --In computing net loss in adjusted gross in- spouse had income but elected to use this classification come the net short-term gain or loss was merged with the and returns with community income divided between hus- net long-term gain or loss, and the excess loss was al- band and wife. lowed to the extent of the smallest of(1) the capital loss, If either husband or wife filed a separate return, the (2) taxable income (adjusted gross income if the "tax other spouse's exemption could be claimedon that return, table" was used) computed without regard to capital gains only if the spouse did not file a return, had no gross in- and losses and the deduction for personal exemptions, or come, and was not the dependent of another taxpayer. (3) $1,000. For additional information on capital gains and losses, Single persons, returns of by asset type, see Statistics of Income--1962, Supple- mental Report, Sales of Capital Assets Reported on There were returns of unmarried persons who did not Individu'al Income Tax Returns, qualify as head of household or surviving spouse. Sales of property other than capital assets, Small Business Corporation profit or loss net gain or loss Net income of loss of a qualified Small Business Cor- In general, property other than capital assets related poration (defined in section 1371 of the Code), whether tó property of a business nature in contrast to personal or not distributed, was taxed directly through each investments which were capital assets. Included were shareholder. - sales of property such as inventories and stock in trade; To qualify as a Small Business Corporation, a company literary, musical, or artistic compositionscreatedbythe had to be a domestic corporation with no more than ten taxpayer; and losses on sales of depreciable and real shareholders, each of which was an individual (or as property used in a trade or business. Each taxpayer in- estate) and no one of which was a nonresident alien. cluded his share of such gain or loss received through The corporation could have only one class of stock and partnerships and fiduciaries. In contrast to capital gain could not bia member of an affiliated group eligible to or loss, gain or loss from these transactions were in- file a consolidated return. Also, it could not receive cluded in their entirety In computing adjusted gross in- more than 20 percent of its gross receipts from Per- come. Losses on sales or exchanges of small business sonal Holding Company income (rent, royalties, interest, investment company stock were ordinary losses rather annuities, and gains from sales or exchanges of stock than capital losses. Also, losses on small business stock and securities), and could not receive more than 80 per- were ordinary losses to the original holders; hgwever, cent of Its gross receipts from sources outside the this ordinary loss was limited to $25,000 on separate United States. returns and $50,000 on joint returns. Gains on sales of The Income of the Small Business Corporation shown small business stock and small business investment in this report Is the amount taxable to shareholders as company stock were not included in this category, but ordinary income. Net long-term capital gain, reduced were shown as capital gains. by the special tax Imposed at the corporate level, re-- 69 070 350 Individual Returns/1969 • Classifications and Terms tamed its character in the hands of the shareholders and before credits could often determine how much of his al- is included inthestatisticsfornetgamnor loss from sales lowable credits (e.g. retirem?nt income and investment of capital assets. Shareholders were allowed to deduct their share of the corporate losses from other forms of credits) could actually be used. Since the surcharge like individual income. Undistributed income earned in previ- the rest of the income tax could be reduced by credits, the ous years was taxable to shareholders in the year it was larger total of tax before credits plus the surcharge per- earned, and could be distributed during the current year mitted larger portions of allowable credits to be used. without any further tax. This increase in tax credits was applied against the More detailed information on Small Business surchargc. tions can be found in Statistics of Income--BusCorpora- mess In- For many returns, the tax surcharge had to be com- come Tax Returns and Statistics of Income- - puted for the statistics because Schedule T, on which the Corpora- tax surcharge was shown, did not always have to be filed tion Income Tax Returns. with the return. The surcharge statistics for 1968 are not directly com- Standard deduction parable with the surcharge statistics for 1969. In 1969, the surcharge was not shown as a separate item on many A taxpayer was allowed a standard deduction in lieu of returns (i.e. those of taxpayers who were not required to itemizing his deductible personal expenses. The taxpayer file a Schedule T); therefore, it was derived for each re- elected the larger of the regular 10 percent standard de- turn on which it was due, even though some taxpayers duction or the minimum standard deduction. The "regu- may have failed to include the amount in their tax com- lar" deduction was 10 percent of adjusted gross income, putations. For 1968, on the other hand, the surcharge and the minimum standard deduction was $200 ($100 for was not derived if not shown by the taxpayer. married taxpayers filing separately) plus $100 for each exemption. In neither case could the deduction exceed $1,000, ($500 for married taxpayers filing separately). Surviving spouses, returns of If married and filing separately, both taxpayers had to These returns were filed by widows or widowers whose elect the same type of standard deduction. spouse had died during either of the two preceding tax For the following returns, the standard deduction had years, who had not remarried, and who had maintained to be derived for the statistics: a home which was the principal abode of a child or step- (1) Returns of taxpayers who selected the optional child for whom the taxpayer was entitled to an exemption. ''tax tables" to compute their tax. These taxpayers did Surviving spouse taxpayers could use the joint return not report an amount for standard deduction since the de- tax rates for the two taxable years following the year of duction was already built into the tables, and death of the spouse; however, the deceased spouse could (2) Returns with which Schedule T, on which the not be claimed as an exemption, except for the year of standard deduction was shown, was not filed. death. Thereafter, the special rates for survivingspouse halfway between the joint and single return tax rates Statutory adjustments applied. See 'Other sources of income (or loss)." Tax credits Surcharge Included here were the following credits applied against income tax: In addition to the regular tax liability, a tax surcharge (1) Retirement income credit, was imposed for the period January 1, 1969 through (2) Investment credit, December 31, 1969. Figured on an annual basis, the sur- (3) Foreign tax credit, and charge was 10 percent of income tax reduced by any re- (4) "Other" tax credits. tirement income credit. Surcharge tables were provided Each of the above is described under separate heading. for taxpayers whose regular tax was less than $735. Same taxpayers who reported income tax beforecredits did not show a surcharge for the following reasons: Tax due at time of filing (1) Taxpayers with small amounts of tax, up to Tax due was reported on returns where the tax withheld $148, $223, or $293, depending on marital status, were and the payment on declarations of estimated tax (to- exempt from surcharge; gether with other prepayment credits reported with them) (2) The surcharge was applied at an effective rate of were insufficient to cover the total of income tax after less than 10 percent when tax was less than twice these credits (which irl(luded the surcharge), self-employment amounts; (3) One credit was actually allowed in computing tax tax, and tax from recomputing prior year investment credit. for surcharge purposes, the retirement income credit, The balance of tax due was payable upon filing with all and in some cases thiscreditmayhavebeen large enough to offset the income tax completely; Forms 1040 showing adjusted gross income of $5,000 or Not all of the surcharge resulted in an increase in In- - more. Taxpayers with income under $5,000 which con- sisted only of wages subject to withholding and not more come tax. This is borne out by table 3.8 which shows the than $200 of dividends, interest, and other wages, and "increase in tax due to surcharge" to be less than the who did not claim any statutory adjustments could elect surcharge itself. An increase in the amount of tax cred- to have the Internal Revenue Service compute their tax its claimed was the cause. The size of an individual's tax and be billed for any balance due. Other taxpayers with in- 69 071 Individual Returns/1969 • Classifications and Terms 351 come under $5,000 were required to remit any balance (2) Refundable credits, and due with their Form 1040. (3) Payments on 1969 declarations of estimated tax. Taxpaymen5 in excess of total tax were refundable. Tax from recomputing prior year investment credit Each of the above is described under separate heading. The investment credit provisions of the law included a Tax savings due to income averaging ''recapture rule" which required taxpayers to pay back all or a portion of any investment credit taken on prop- In this report the amount of tax savings is the difference erty disposed of before the end of the useful life claimed between the tax resulting from the income averaging corn- in computing the credit. The law specified that if property putation, usually shown on Schedule G, and the amount of qualifying for credit was disposed of before the end of its tax that would result if the income averaging provisions estimated useful life, the tax for the year of disposal was were not used. increased by the difference between the credit originally allowed and the credit that would have been allowed if the Tax withheld computation had been on a shorter useful life. Unless a credit was refundable, it could not be applied See "Income tax withheld." against this tax. Ten Percent Standard Deduction Taxable income See "Standard deduction." Taxable Income was the amount to which tax rates were usually applied in arriving at income tax before credits. Tentative credit It was determined by subtracting from adjusted gross in- come itemized deductions or the standard deduction and See "Retirement income credit." the number of personal exemptions claimed multiplied by $600. Total deductions For many returns, taxable income had to be derived for the statistics because Schedule T, on which taxable This classification included personal deductions, bot income was shown, didnotaiways have to be filed with the standard and itemized. return. Total tax liability Taxpayments Total tax liability was the sum of: These payments were, in effect, made before the return (1) Income tax after credits (including surcharge), was filed and were applied against tax liability to deter- plus mine the amount payable. They included the following: (2) Self-employment tax, plus (1) Income tax withheld (including excess social (3) Tax from recomputing prior year investment security taxes withheld), credit. I / 69 072 thaJ CO Tax Let Combined Department of the Treasury / Internal Revenue Scic Z1i /1 1 with Form For the year January 1—December 31. 1969. or other taxablo year beginning — 1969, ending Flrt fern. and Initial (If joInt return, Us first namu and mlddis inItj&Is of both) - a 1? Tout *ocIul100utrLtlnh,mbu i .- I 0 I , . I • Presint horn. address You, occupation 'a City, town or pod offic., Stat. end ZIP cods - - jips' social security numb.r I Enter below name and address used on your return for 1968 (if same as above write °Sarne"). if none filed, I reason. it changing from separate to joint or joint to separate returns, enter 1968 names and addresses. T Spous.'a.occpatJo Name and address of empicyer at time of filing Your 1 0 Single 0 Unmarried Head of Household Filing 2 0 Married filing Joint return (avon if only one had income) Status— 3 5 0 Surviving w!dow(er) with dependent child Married filing separate return and spouse Is also tiling a return. 6 0 (Check if this item checked give spouse's social security number In space provided Married filing separate return and spouse only one) above and enter first name here > is not filing a return Check boxes for exemptions which apply Regular 65 or over 6l;nd 7a Yourseif .U (3 .2 C.', 7b Spouse (applies only if line 2 or line 6 Is checked) 8 First names of your dependent children who lived with you 0 I number ri I of boxes j checkecj. 0 S. E c.a Enter < (a) tiAi'.E—Ente fIgure 1 In the last Cc) l.tonth, Ilyd UJ 9 column to right for each name listod i In your horn.. S.. Cd) $600 I () Support you I (I) Support furnished I DEPEI4DENTS (if more space is necdcd, use other sld,) Rolationahip or more I furnished. If 100% I b de305dcnt and i Instructions, 0—2. income? J write 'ALL" others I —l I > I I 0 — 10 Total exemptions from lines 7, 8, and 9 above I I . I -. — $ — — a U U C) 11 Wages, salaries, tips, etc. (Attach Form W—2 to back, If unavailable, explain on back) . j... Cu Cu E 0 12a Dividends [Total before] $ exclusion ' oni [See 12b Less Exclusion BalanceD. 12c -7 0) C-, U, .E 0. - 13 Interest (Enter total here and If over $100, also list In Schedule B. Part II) , . . . .2k.. . 0 > 14 Other Income Total tram attached schedules (check schedules used—C 0. 0 0. E 0. F 0). . - Adjusted iSa Total [Add lInes 11,1 14 $ r Sc. 1 Gross . 12e, 13 , lSb Lcs Adjustments t iO4o—i $ , income . 15c 0 IV line 15c is $5,000 or more, go to Schedule 1, to figure tax and surcharge. (Omit linos 16 and 17.) o Go to Sch. T to figure tax and surcharge if you itemize deductions: or claim retirement income credit, foroin tax credit, or inve-t. I- g ment credit: or it you owe self 'employment tax or tax from recomputing prior year invcstment credit. (Omit lines 16 aid 17.) 0 II neither of above two items applies, go to Tax Tables Instead of Sch. 1. Complete lines 16. 17, & 18. 0) '- 16 Tax from Tax Table (see tables on 1—2 and 1—3). . . 16 I So, 1040.—i for rulgo under whi:h the IRS will figure pour tax and ourc'rargo. 4 17 Tax surcharge on line 16 (see 1—1 for tax surcharge tables) . bit I >,, 18 Enter total of lines 16 and 17 OR amount from Schedule 1, line 18, if applicable (check I Cu 0 . : if from Tax Table A p, B 0. C 0; Tax Rate Sch. 0. Sch. D 0, or Sch. G 18 I /Make check or C.. 0 U t 19 Total Federal income tax withheld (attach Forms W—2 to back) 20 Excess F.I.C.A. tax withheld (two or more employers—sea R...2) 21, 0 Nonhlghway Federal gasolIne tax. Form 4136; 0 Rag. mv., Form 2439 21 . .0 / money order pay. able to Internal 5- 0 Revenue Service. -- .Cu U 22 1969 Estimated tax payments (include 1968 overpayment allowed as a credit) I .Cu 0 23 Total (add lines 19, 20, 21, and 22) I . C, Cu I C) CJ 24 If line 18 is larger than line 23, enter BALANCE DUE. Pay in full with return 25 If line 23 is larger than line 18, enter OVERPAYMENT 26 LIne 25 to be: (a) Credited on 1970—----——_____ estimated tax D. $ ; (b) Refunded ' $ r Under penalties of p.rjury, I declare that I have .sa,nln.d this return, including accompanying schedules and statements, end to the best of my knowledge and beii.f It Is tru., correct, and complete. your signature Date I Signature of preparer other then taxpayer, based on Date 5- ill Information of wbI ha has any knowledge. Spouse's signsbsts (if filing jeinijy, BOTH ud alga ease If Mdrus ons*bad l7 24 We've combined Forms 1040 and 1040A: There are nearly 75 million people who file income tax returns. They have different kinds of income, different kinds of deductions, credits, and exclusions. No one form can Possibly suit all of them. That's why we have developed a new return system that takes the place of both the old Form 1040 and the old Form 1040A. It is a building-block system. You start with a basic one-page form (still called Form 1040). Nearly half of the taxpayers will need no other forms. The other half will add special schedules or forms only as they need them. How to Prepare Your Return o Income adjustments— 0 Fill out the new Form 1040—whether or not you need to Line 15b.—Your income can be reduced by the following adjustments: attach any scheducs. Usually you can file a complete return on the one-page form, If: • Sick pay (attach Form 2440) —All your income was from wages, dividends (not more • Moving Expenses (attach Form 3903) than $100), and interest (not more than $100), • Employee business expenses (attach Form AND you have no adjustments for: 2106) —Sick pay • Payments to self-employment retirement —Moving expenses plans (attach Form 2950SE). —Employee business expenses —Payments as a self-employed person to a retirement • Rules for IRS computation of tax— plan, AND If line 15a is under $5,000 and consisted only of wages —You do not itemize deductions. subject to withholding and not more than $200 of divi' dends, interest, and nonwithhejd wages, and you are not 0 Add the following schedule(s) as required— claiming any adjustments on line 15b, you can have IRS figure your tax by omitting lines 16, 17. 18, 20. 21, 22, 23, 1. Schedule A if you: 24, 25, and 26 (but complete line 19). if you are filing a —Itemize deductions. joint return, show husband's income and wife's income separately in the space to the right of line 15c. ldentiy 2. Schedule B if you: husband's income by marking (H) and wife's income by marking (W). —Have gross dividends and other distributions on stock Note: If the IRS figures your tax and surcharge, the law in exccss of $100. does not permit the IRS to allow you the benefits of: —Have interest income in excess of $100. (1) the retirement income credit, (2) head of household or surviving spouse status, and (3) minimum standard 3. Schedule C if you: deduction, if you are married and filing a separate return. —Have income (or loss) from a business (other than a if you are entitled to any of tiese benefits, it is to your farm) to include in line 14. advantage to figure your own tax and surcharge. 4. Schedule D if you: Addresses of Internal Revenue Offices if you are locatcd In; Send your return to: —Have gains (or lass) from sales or exchanges of prop. erty to include in line 14. ", Atabams, Florida. Georgia, Mis- Internai Revenue Service Center sissippi. North Carolina. South 4800 Butord Highway 5. Schedule E if you have Income from: Carolina. Tennessee Chambice, Georgia 300C6 (To include in line 14.) Delaware, District of columbia, Internal Revenue Service Center Maryland, New Jersey, Pennsyl- 11601 Roosevelt Boulevard —Pensions or annuities vania, Virginia Philadelphia, Pennsylvania —Rents or royalties, 19155 Indiana. Kentucky. Michigan, intrnal Revenue Service center —Partnerships, estates or trusts, small business cor- Ohio, West Virginia Cincinnati, Ohio 45298 porations, or miscellaneous sources. Arkansas, Colorado, Kansas. Lou- Internal Rever servidc Center isiana, New Mexico. Oklahoma, 3651 S. intcrregionai Highway 6. Schedule F If you: Texas, Wyoming Austin, Toas 78740 Alaska. Arizona. California, Ha- internal Revenue Scrvicc Cente —Have farm income (or loss) to Include in lIne 14. wail, Idaho, Montana, Nevada, 1160 West 1200 South St. Oregon. U!ah, Washington Ogden. utah 84405 7. Schedule G if you: Illinois. Iowa, Minnesota. Mis- Internal Revenue Service Center souri. Nebraska, North Dakota, 2306 E. Bannister Road —Claim the benefits of income averaging. South Dakota, Wisconsin Kansas City, Missouri 64170 Connecticut. Maine. Massachu- Internal Revenue Service Center R 8. Schedule if you: setts. New Hampshire, New York, 310 Lowell Street Rhode Island, Vermont Andover, Massachusetts 01812 —Claim a retirement Income credit Panama Canal Zone, American Director of International Samoa, Guam Operations 9. Schedule SE if you: Internal Revenue Servico Washington. D.C. 20225 —Report net earnings from self'employment. Puerto Rico (or if excludIng in- Director of intiiionai come under section 933) Operations 10. Schedule T if you: virgin Islands: U.S. lntornal Revenue Service Non-permanent residents Pence d Leon Ave. and Bolivia St. mwww —Are subject to self-employment tax, Hate Roy. Puerto Rico 00917 Virgin Islands: Department of Finance, —Are subject to tax from recomputing prior year lnvest• Permanent resIdents Tax Division ment credit, Charlotte Amaile —Claim a retirement income credit St. Thomas. Virgin Islands 00801 —Claim invcstrnent credit U.S. citizens with foreign addresses (except A.P.O. and F.P.O.) and those excluding income under sec. 911 or 931: file with Director of international —Claim foreign tax credit. Oporations, Internal Revinue Service, Washington, D.C. 20225. if you claim more than two dependents on line 9, show the required information below. You may also use this space to explain a missing Form W—2. 1040—1 **u.s. eonarntvi p!amste om,Iss—o-3s4-3II CLI. II.I$11555) 69 074 25 SCHEDULE A (Form 1040) Depnrtment of the Treuury Internal Revenue Service See instructions on A—i and A—2. U) ¼L) c,.2) ' If you use this schedule, attach it to Form 1040. Name as shown on Form 1040 S Social Security Number Medical and dental expenses (not compensated by insurance Contributions._._.cash_incjuding checks, money orders, etc. or otherwise) for medicine and drugs, doctors, dentists, nurses, (ltemize)_ hospital care, insurance premiums for medical care, etc. . 1 One half of Insurance premiums for medi- — cal care (but not more than $150) . . — 2 Medicine and drugs 3 Enter 1% of line 15c, Form 1040 . . . — 4 Subtract line 3 from line 2. Enter differ. ence (if less than zero, enter zero) . . — 5 Itemize other medical and dental ex- penses (include balance of insurance premiums for medical care not deducted on line 1) — 11 Total cash contributions . . . . — 12 Other than cash (see instructions on — A—i for required statement). Enter — total for such items here . . .. . — 13 Carryover from prior years (see in- structions on A—2) !_ 14 Total contributions (add lines 11, . , 12, and 13—see instructions on A—2 Interest expense—Home mortgage . . Installment purchases — . — Other (Itemize) 15 Total interest expense . . . . 6 Total (add lines 4 and 5) — Miscellaneous deductions for' child care, 7 Enter 3% of line 15c, Form 1040 . . . alimony, union dues, casualty losses, etc. 8 Subtract line 7 from line 6. Enter differ- (see instructions on A—2) ence (if less than zero, enter zero) . . 9 Total deductible medical and dental ex- penses (add lines 1 and 8) . . . . . Taxes.—Real estate — ' State and local gasoline — — General sales (see sales tax tables) . . . . State and local income — -• 16 Total miscellaneous deductions . Personal property . 17 TOTAL ITEMIZED DEDUCTIONS (add lines 9, 10, 14, 15, and 16—enter 10 Total taxes here and on Schedule 1, line 2) . 69 075 nstc.t5; ord A or excise taxes, even though not part of a general sales tax (or tax similar to a general sales tax), if imposed at the general rate of Itemized vs. Standard Deduction.—Deduc. that tax. Average general sales tax tables are medical insurance; and meals, and lodging provided, tions may be itemized for medical and dental if part of cost of care in a hospital or similar expenses, certain taxes, charitable and other institution. If the amount you paid for your automobile contributions, interest expense, casualty You Cannot Deduct Payments For.—_Funeral tags is based on the value of the automobile, losses, child care, and other items described expenses and cemetery plot; illegal operations you can deduct the part based on the value of here. If you take the standard deduction, or drugs; travel ordered or suggested by your the automobile as personal property tax. you will get an amount equal to 10 percent doctor for rest or change; premiums on life If you had any other deductible tax which of the income you report on line 15c of Form insurance; Cosmetics. does not fall in one of the five categories 1040, but not less than $200 plus $100 for Medical Care lnsurance.—You can deduct an shown, describe the tax and enter below each exemption claimed on line 10 of Form amount equal to one-half of the insurance "Personal property." 1040 (subtract $100 if married and filing premiums paid (but not more than $150) with. separately). The maximum standard deduc- Deduct business Federal taxes, or any taxes out regard to the limitation on line 7. The paid in connection with a business or profes. tion is $1,000 ($500 if married and filing other one-half, plus any excess over the $150 separately). sion in Schedules C, E, or F. limit, is deductible subject to the 3 •percent limitation shown on line 7. The $4 monthly You Can Deduct.—Real estate taxes; State Medical and Dental Expenses payments for supplementary medical insur- and local gasoline taxes; general sales taxes; ance under "Medicare" are deductible, but the State and local income taxes; .and personal You can deduct, within the limits of lines hospital insurance benefits tax that is included property taxes. 1, 3 and 7, the amounts you paid during the as part of the social security tax and withheld You Cannot Deduct.—Any Federal excise year (not compensated by hospital, health or from wages or paid on self-employment in. accident insurance, or otherwise) for medical come is not deductible. taxes on your personal expenditures, such as or dental expenses for yourself, your wife, or taxes on transportation, telephone, gasoline, The 1 percent and 3 percent limitations etc.; Federal social security taxes; hunting anydependent who received over half of his (see lines 3 and 7) apply in all cases, regard. support from you whether or not the depend. licenses, dog licenses; auto inspection fees, ent had $600 or more income. less of your age, or the age of your wife or tags, drivers licenses; water taxes; taxes you other dependents. paid for another person; alcoholic beverage, If you pay someone for both nursing and cigarette, and tobacco taxes; or selective sales domestic duties, you can deduct only the Taxes or excise taxes (such as those en admissions, nursing cost. room occupancy, etc.) even if they are Sep. You Can Deduct Payments To or For.—Physi- You can deduct general State or local retail arately stated or imposed on the purchaser. cians, dentists, nurses, and other professional sales taxes if they are imposed directly upon unless imposed at the same rate as the gen. practitioners; drugs or medicines; hospitals; the consumer, or if they are imposed on the eral sales tax. transportation necessary to get medical care; retailer (or wholesaler in case of gasoline In general, you cannot deduct taxes as- eyeglasses, artificial teeth, medical or surgi- taxes) and the amount of the tax is separately sessed for pavements or other improvements. cal appliances, braces, etc.; X.ray examina- stated by the retailer. In Certain cases, you including front-foot benefits, which tend to tions or treatment; premiums on hospital or may also deduct State or local selectjve sales increase the value of your property. State Gasoline Tax Table You may figure the deduction for State tax on gasoline used in your If you can establish that you paid a larger amount, you are entitled car by using the following table that is based on information available to deduct that amount. as of August 15, 1969. If all or part of your mileage was driven in a Find the rate of gasoline tax for your State in the list below, If four•cylinder (or less) car, the deduction for that mileage should be the rate of gasoline tax changed in 1969, fInd the deduction for mileage one-half of the table amount. driven at each rate, and add the two amounts. Alabama 70 Dist. of Col. 70 Kentucky 70 Montana 6.50 Alaska 81 Florida 70 North Dakota 60 Tennessee 70 Arizona 7 Louisiana 70 after June 30, 71 after June 30, 70 Texas 50 Georgia 6.51 after January 5, 80 Nebraska 7.50 Ohio 71 Utah 60 Arkansas 7.50 Hawaii 50 Maine 71 Nevada 60 California 70 Idaho 7 Oklahoma 6.581 after June 30, 71 81 from June 1 after June 30, 80 New Hampshire 70 Oregon 70 - Vermont 81 Illinois 61 Maryland 70 New Jersey 70 Pennsylvania 71 to Sept. 1. after July 31, 7.50 Massachusetts 6.51 New Mexico 70 Virginia 70 Colorado 61 Indiana 60 Rhode Island 80 Washington 91 after May 31, 71 Michigan 7 New York South Carolina 70 West Virginia 70 after March 31, 80 Minnesota 7 North Carolina 71 South Dakota 60 Wisconsin 70 Connecticut 71 Iowa 71 Mississippi 70 after June 30, 91 after June 30,81 Kansas 50 after June 30, 70 Wyoming 60 Delaware 71 Missouri 51 after June 30, 71 after June 30, 71 RATE PER GALLON RATE PER GALLON Nonbusiness Nonbusiness Mileage Driven 6.51 & Mileage Driven 6.51 & 50 6.581 70 7-50 8j 90 50 61 6.581 7.51 I 81 90 Under 3,000 $7 $9 $9 $10 $11 $11 $13 10,000 to 10,999.... 3,000 to 3,499 12 14 15 16 17 19 21 $38 $45 $49 $53 $56 $60 $68 3,500 to 3,999 13 16 17 11,000 to 11,999.... 41 49 53 57 62 66 74 4,000 to 4,499 15 19 20 21 24 12.000 to 12,999..,. 45 54 58 63 67 71 80 18 20 21 23 24 27 13,000 to 13,999..,. 48 58 63 67 72 77 87 4,500 to 4,999 17 20 22 24 25 27 31 14,000 to 14,999,,.. 52 62 67 73 78 83 93 5,000 to 5,499 19 23 24 26 28 30 34 15.000 to 15,999.,.. 55 66 5,500 to 5,999 21 25 27 29 72 77 83 89 100 6,000 to 6,499 31 33 37 16,000 to 16,999.... 59 77 83 88 94 106 22 27 29 31 33 36 40 17,000 to 17,999.... 63 71o 75 81 88 94 100 113 6,500 to 6,999 24 29 31 34 36 39 43 18.000 to 18,999.... 66 79 86 92 99 106 119 7,000 to 7,499 26 31 34 36 39 41 47 19,000 to 19,999,.,. 70 84 91 98 104 111 125 7,500 to 7,999 28 33 36 39 42 44 50 20.000 miles• 71 86 93 100 107 114 129 8,000 to 8,499 29 35 38 41 44 47 53 8,500 to 8,999 31 38 41 44 47 50 56 9,000 to 9,499 33 40 43 46 50 53 59 • For over 2O,Ô0O mites, use taole arflounts corresponding to total 9,500 to 9,999 35 42 45 49 52 56 63 mileage driven. For example for 25,000 miles, add the deduction for 5,000 to the deduction for 2d,000 miles. Contributions to be used for charitable, religious, etc., services). If in property, give description of You Can Deduct Gifts to,—(a) Religious, chari- purposes. the property, date of gift, and method of (c) Certain veterans' organizations. valuation except for securities. In addition, table, educational, scientific or literary organi- (d) Governmental agencies that will use for each gift valued at more than $200, state zations, and organizations for the preventIon of thegifts exclusively for public purposes, in- any conditions attached to the gift; manner cruelty to children or animals, unless the or- cluding civil defense. of acquisition and cost or other basis if owned ganization is operated for personal profit, or a Civil defense volunteers may deduct un- by you less than 5 years; and attach a signed substantial part of its activities consists of reimbursed expenses paid for gasoline and copy of appraisal, if any. Pijblication 561, propaganda or attempting to influence other expenses of participation in official civil Valuation of Donated Property, furnishes in- legislation. defense activities. A contribution may be made in cash formation and guidelines relative to appraisals (b) Fraternal organizations if the gifts are (checks, money orders, etc.) or property (not (Continued on A—2) A—i 69 076 SCHEDULE B (Form 1040) vkd d rG2 . See instructions on B—i Daportmnt of the Treesucy Internal Revenue Service if you uso this schedule, attach it to Form 1040 (3 Name as shown on Form 1040 Social SccurLty Nunibor f PART I—Dividend Income PART H—Interest Income 1 Gross dividends and other distributions on stock (list payers 1 EarnIngs from savings and loan associations and credit and amounts—write (H), (W), (J), for stock held by hus- unions (IiSt payers and amounts) band, wife, or Jointly) 2 Other Interest on bank deposits, bonds, tax refunds, etc. (us t payers and amounts) FAIIri 2 Total of line 1 3 Capital gain distrI- . — butions (see instruc- tions on B—i). . . 4 Nontaxablo dlstnbu• — tions (sea instruc- tlonsonB—.1). . . 5 Total (add lines 3 and 4) . . . . . — 6 DMdonds before exclusion (subtract line 5 from lIne 2). Enter here and on 3 Total Interest Income. Enter here and Form 1040, line 12a . — on Form 1040, line 13 a—aoooa—i 69 077 2 histructon o' chth ('orrn aO40)— (d) Real estate investment trusts. (e) China Trade Act corporations. Part I (f) Corporations deriving 80 percent even though such amounts are desig- or more of their income from U.S. pos- nated as nontaxable distributions Dividend Income by the sessions and 50 percent or more of paying corporations. The amounts in- their income from the active conduct of Line 1—Gross Dividends and Other Dis- cluded on this line must also be in. a business therein. tributions on Stock.—If you own stock, cluded in line 1, Part I, Schedule B, and you must report any payments (divi- reported on the appropriate lines of Part Ii dends) you receive out of the company's separate Schedule D. Interest Income earnings and profits. Usually dividends Line 4—Nontaxable Distrjbutions._..... are paid in cash, but if paid in merchan- You must report any interest yot re- Enter on this line the total of nontaxable ceived or which was credited to your dise or other property they are taxable at their fair market value. distributions (return of capital) not in- account (whether entered in your pass- cluded in line 3. Amounts reported here book or not) and which you can with- If you received gross dividends and cannot exceed the cost (Or other basis) draw. If you received interest in excess other distributions as a stockholder of your stock in paying corporations of $100, list payers and amounts in (including capital gain dividends and since amounts received in excess of Part II, Schedule B. Interest on bonds, nontaxable distributions) in excess of cost (or other basis) are taxable as debentures, notes, savings accounts, $100, list in line 1, Part I, Schedule B gains and must be reported on separate or loans is taxable, except on State and the gross amounts received. if $100 or Schedule 0 as indicated in line 3, above. municipal bonds and securities, Interest less, Schedule B is not required. In- Any amount entered on line 4 must also received on tax refunds is taxable and dude gross amounts received either be included in line 1, Part I, Schedule B. must be included in your return. directly or through a nominee or other Dividends Exclusion If you own United States Savings intermediary, as a member of a partner. bonds, the gradual increase in value ship or as a beneficiary of an estate You may exclude on Form 1040, line of each bond is interest, but you need or trust, If you received dividends 12b, up to $100 of dividend3 received not report this interest until you cash through a nominee or other inter- from qualifying domestic corporations. the bond or,until the year of final ma- mediary, list his name. If a joint return is filed and both hus- turity, whichever is earlier. You may at Dividends from mutual insurance band and wife have dividend income, any time elect to report each year the companies which are a reduction of pre. each may exclude up to $100 of divi- annual increase in value. However, if miums are not to be included. So-called dends received from qualifying corpora. you do so, you must report in the first "dividends" paid by savings and loan tions. However, neither of them may use year the entire increase to date on all associations, mutual savings banks, Co- any portion of the $100 exclusion not such bonds, and must continue ta re- operative banks, and credit unions on used by the other. For example, if the port the annual increase each year. deposits or withdrawable accounts are husband had $300 in dividends, and Interest on certain industrial develop. earnings (interest) and should be re- the wife had $20, only $120 may be ment bonds issued after April30, 1968, ported as interest. excluded. is taxable unless the bonds are part of Special rules apply to stock divi- Taxable dividends from the following an issue of $1,000,000 or less and dends, liquidations, stock rights, con- corporations do not qualify for the divi- substantially all the proceeds are used versions and redemptions. They are dis. dends received exclusion: (1) to acquire, construct, reconstruct cussed in Publication 550, Tax Infor- or improve land or depreciable property (a) Foreign corporations, including mation on Investment Income and - your share from a controlled foreign or (2) to redeem all or part of a Expenses. corporation. prior bond issue that was issued to acquire, construct, reconstruct or im- Line 3—Capital Gain Distributions.... (b) So-called exempt organizations prove' land or depreciable property, Enter on this line all capital gain divi- (charitable, fraternal, etc.) and exempt For bonds issued after October 24, dends. Also include any amounts re- farmers' cooperative organizations. 1968, a $5,000,000 tax-exempt limi- ceived as return of capital which exceed (c) Regulated investment companies tation may be applied in certain situa- the cost (or other basis) of your stock, except to the extent designated by the tions. The bond issuer will be able to company to be taken into account as a tell you if the increased limitation 8—1 dividend for these purposes. applies. U.I. 13.33 I 32.3 1O—60003—I 69 078 SCHEDULE C (Form 1040) Prot (or Loss) rom sss or ProfessEon (Sole Proprietorship) Department of the Treasury lntornal Revenu. Service Partnerships, joint ventures, etc., must file on Form 1065 I ¶JJJ J ? >. See separate instructions . If you use this schedule, attach it to Form 1040 number A Principal business activity (See separate Instructions) product (For .zampl.: retaIl—hardware; whoIes.als_—tobac; £erWces_.legal; manufscturlng—furnituru; sic.) B Business name Employer Identification Number D Business address E Indicate method of accounting: (1) cash; (2) 0 accrual; (3) 0 other. (ZIP code) F Was there any substantial change in the manner of determining quantities, costs, or valuations between the opening and closing inventories? O YES 0 NO. If "Yes," attach explanation. G Were you required to file Forms 1095 and 1099 or 1087 for the calendar year 1969? (See "Item G" in separate Instructions for Schedule C.) o YES 0 NO. It "Yes," where were they filed 1 Gross receipts or gross sales $ Less: Returns and allowances $ $ 2 Inventory at beginning of year (if different from last year's closing inventory attach explanation) 3 Merchandise purchased $ less cost of any items withdrawn from business for personal use $ 4 Cost of labor (do not include salary paid to yourself) 5 Material and supplies 6 Other costs (explain in Schedule C—i) _________________ 7 Total of lines 2 through 6 3 Inventory at end of this year _________________ 9 Cost of goods sold and/or operations (subtract line 8 from line 7) 10 Gross profit (subtract line 9 from line 1) U OTHER BUSINESS DEDUCTIONS ii Depreciation (explain In Schedule C—2) 12 Taxes on business and business property (explain In Schedule C—i) — 13 Rent on business property 14 Repairs (explain in Schedule C—i) 15 Salaries and wages not Included on line 4 (exclude any paid to yourself) ...... .. .. 16 Insurance .. .. 17 Legal and professional fees 18 Commissions 19 Amortization (attach statement) 20 Retirement plans, etc. (other than your share—see separate Instructions) . . 21 Interest on business indebtedness 22 Bad debts arising from sales or services 23 Losses of business property (attach statement) 24 Depletion 25 Other business expenses (explain In Schedule C—i) _____________________ 26 Total of lines 11 through 25 27 Net profit (or loss) (subtract line 26 from line 10). Enter here and include in total on line 14, Form 1040. ALSO enter on Schedule SE, Part I, line 1 SCHEDULE C—i. EXPLANATION OF LINES 6, 12, 14, AND 25 Line No. Explanation Amount ' Line No. Explanation Amount L .—.—. j..- .. S ......... ... .. %..___.. 69 079 - Schedule C (Forn, 1040) 1969 Page 2 . Line No. Explanation Amount Lix. No. ES6,2 14 AND 25 . Explanation Amount $ $ SCHEDULE C—2. EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED ON LINE 1i.—_Taxpayers using Revenue Procedures 62—21 and 65—13: Make no entry in column 2, enter the cost or other basis of assets held at end of year in column 3, and enter the accumulated depreciation at end of year in column 4. Note: You may (1) group depreciable assets in accordance with the categories specified below or (2) continue to list your assets in the same manner as in prior years. If you need more space, use Form 4562. 1. Group and guideline class 2. Date 5. Method of or description of property acquired 3. Cost or other basis iii er1ion1 6. Life or rate 7. Depreciation for in prior years depreciation this year 1 Total additional first-year depreciation (do not Include in items below)_ Buildings Furniture and fixtures Transportation equipment .... ... . Machinery and other equipment . ..—. Other (specify) ...—..—.......—.. .. — .. ..._........ ..._ S •••_••—_••. - 3 Less: Amount of depreciation claimed elsewhere in Schedule C 4 Balance—Enter here and on page 1. line 11 St.I1MARY OF DEPRECIATiON Straight lie. DeclIning balance J_J.!4_ Other (specify) Total 1 2 Other. —- -- .. -. .- -.--*--------- .- -- EXPENSE ACCOUNT INFORMATION Enter information with regard to yourself and your five highest Expens. account Salaries and wages paid employees. In determining th five highest paid em- ployees, expense account allowances must be added to their Owner salaries and wages. However, the information need not be sub- 1 mitted for any employee for whom the combined amount is 2 less than $10,000. or for yourself if your expense account allowance plus line 27, page 1, Is less than $10,000. See sepa- .3 rate Instructions for Schedule C, for definition of "expense 4 — ,--.... account." . 5 ____________________________ - Did you claim a deduction for expenses àonriected with: .. (1) Entertainment facility (boat, resort, ranch, etc.)? . DYES 0 NO (3) EmPloyees' families at conventiolsor meetings? . . DYES 0 NO (2) Living accommodations (except employees on business)? 0 YES 0 NO :(4) Employee or family vacations not reported on Form. W—2? DYES 0 NO .4I--1.-8OesFl GPO .69 080 SCHEDULE 0 (Form 1040) Deprte:nt of the Tre.uuiy Internal Revenue Service > @1 >. See iratructions on B—I and D—2. If you usa this schedule, attach it to Form 1C4O. ' Qy Uk) 3 Name as shown on Form 1040 Social Scur1a Numbcr ' Part I—CAPITAL ASSETS —Shcrt-tcti_capital_gaIns and lOSSeS 35Sfts held not more than S months C. Hc.v a. Kind of prop. 1*. Cast or othar b DasIOI quirwi. itate, or other (Specify) ,> tJI, zyrnbol (Scm (ma., day, yr.) '' sold I. Grass iica Dapraslution allowable) since basis, cost of sUbsoqiMntul,proye. Puratsued, attach I. Cain or loss (I plus g iou ii) acqul*1Uon sxplaastlon) end .!2! oxpense of oil. 1•___ —— '-.—. —- —-———-—- .----—-————-— — .- —..———.----— 2 Enter your share of not short-term gain (or loss) from partnerships and ducIarles 3 Enter unused short-torm capital loss carryover from preceding taxable years (attach statement) 4Not short-term gain (or loss) from Inos 1, 2. and3 Lon-term capital gcina en lossea—ossets held more than 6 months (12 months or mcro for ccrtaln livstcck ) 5 Enter gaIn from Part II, lIne 3 . Total long-term gross saics price. Ga Entcr your share of net lon:-term gain (or loss) from partnerships and iduciarles Gb Enter your share of not ion-tcrm gain from small busino3s corporation; (Subchapter 3) 7 Enter unused long-term capital less carryover from preceding taxable years (attach statement) U Capital gain dividends 9 Net long-term gain (or loss) from lines 5, Ga, Sb, 7. and 8 I I - —— . 10 Combine the amounts shown on lines 4 and 9, and enter the net gain (or loss) hero 11 ll LINE 10 SHOWS A GAiN—Enter 50% of line 9 or 50% of line 10, whIchever is smallcr. (Enter zero if there is a loss or no entry on line 9.) (S:e reverse sid3 for computation of alternative tax.) 12 Subtract 1mb 11 from line 10. Enter hero and in Part IV, line 1, on reverse side 13 IF LINE 10 SHOWS A LOSS—Enter here end In Part IV, line 1, the smallest of: (a) line 10; (b) lIne 3, Sch. 1., (line iSe, Form 1040, if tax table used) computed without capital gains or losses; or Cc) $1,003 Part II-CiUN F01i DlS?OSIT0 0 DEPECABLE £L0P.!RTY UI'DER SECTI0S 1245 AND 1250— 1 assots hctd more than 6 mor.thz (scs hztructions on 0—i for dcThitoris) smors CCuSio hoaU!ne apseor, soso the fIrst hssin for section 1245 and the ascend hoadin: for section 1253. a. Kind of property and hot arquircd (11 ocesasry, attach statoinonf . . Cast CI Ot'.7 hni\ C?i of b. Date acquired a. his acid of daonrlptiv. detsUz not ,.hown bcloa,.—.v.otta 1245 or 1250 to Indicate type of sszoty (me., day, yr.) (me., day, yr.) d. Gosos silos price ;uqtonl lpw;:' r.s (If oct purcinscl, uti: o:;'. OStion) sod exp; of 5313 1 .----- —--- -.————-------. — -- ——— — 1. Deprwktlon rJ!owad (or alIowb!o) abcs eq*ilIUan L Ordlnsry rio 1.1. Prl to Js'ruary 1, 13Z 1-2. Allot Doecm bar 31, 1951 g. Adjusted basis h. Total gain (255W of f2 Ct b) OR OR Ce Icassum of f-i cod 1-2) j. OL'tsr rio (d loss ) —————O2_, (hi lass I) Prior to January 1,1954 tUtor Docamber 31, 10S3 (tee 2 Total ordinaiy gain. Enter horn and In Part IV, line 2, on reverse side 3 Total other gain. Enter hors and In Part I, line 5; however, if the gains do not exceed the losses when this amount Is combined with other gains and losses from sectIon 1231 property enter the total of column J In Part I II, line 1 ::___::: .70—16—eoaca—L 69 081 3 Schedule 0 (Form 1040) 1969 Part Ifl— ERTY OtHER THAN CfipjT/ ASSE]5 ..-- .-. ..- a. Kind of property end how acquired 5. Cost or other baslo, (II necessary attach Ctstcrnn( of descrjpuy. b. D.it acquired c. Oats sold a. Deproci,tjo,, coot of sutuent datnulo not ntuown below) (rn,.. day, yr.) d. Gross salon pric, auoi.ed (or Iniprovemonts (it not (ma., day, yr.) aUGwabto) sines g. Gin or loss purchased, et(ch (d pus lco I) acqwxitlon explanation) and eXPSfl3I of sd. 1 Enter gain from Part , line 3 2 Enter your share of Partnership and fiduciary gain (or loss) from property Part IV—TOTAI. GAiNS OR LOSSES FROM SALE H 3 Net gain (or loss) from lines and 2. Enter hero and Ira Part IV, line 3 other than capital assets EH OR EXCHANGE OF PROPERTY 1 Net gain (or loss) from Part , lIne 12 or 13 2 Total ordinary gain from Part O 2 3 Net gain (or less) from Pert Ill, lIno 3 4 Total net gain (or less), combine Sines COMPUTATION OF ALTElI'ATfl,E TAX-.—.it will usually be to your advantage to use the alternative tax if exceeds (iso net short-term capital loss, or if (hero 15 a net lcng.torrn Capital gain Only, and the net long.term ca?ital gain you are filing income oxceadlng $25,003, or (b) a Joint return, or as a su.-viving husband Or wife, with taxable income (a) a separate reborn with toazsb, of househo:d with taxable income exceeding $53,030. exceeding $52,000, or (c) as a haad 1 Enter the amount from Schedule 5, line 5 2 Enter amount from Part I, lIne 11, on reverse side 3 Subtract line 2 from line 1 I 4 Enter tax on amount on line 3 (use applicshta tax i.sta schedule on i—I) _________________ 5 Enter 50% of line 2 6 Alterroctiva tax (add ursa 4 and 3). if .mo!er than the tax figured on tho amount ______________ tive (ox on Schedule 1. line 5. Also chci Schcdulo 0 ioo GAIr3 Tefl Ci2 on form to tho •' (:'ciigcg aio1040, L I vcn an Sciicdut0 T, line 5, enter tts aitorna. i;ne 13 ..., • LC5S'I3 FF:1 3L3 I PiOFzcT\'.—neport datoils in ao;propriata part or parts. column (c) of Part I aad column (a) of Parts II and 111 use the following symbols to indicate how the propcrty was acejuired: "A" for ICE3 C total of these losses, such gains Cock.) shall no be trca'd and Ios:cs and losses from the sale or exchange of capital s 501r.s event of a net gain, all these tran actions s-s1d asset's, Thus, ir. ioe be entered in Part I purchase on the open market; "B" for c;;srcise of stock opdoa or of Schedule 1). In the be entered in Part UI of Schedule net loss, all these transactjo should event of a through emplcyce stock purchase plan; "C' for ioheritau'ice or gift; D, or in other applicable schcdulcs "D" for exchange involving carryover of prior asset basis; on Form 1040. other. and "E" for Section 1231 .dcals with gains and losses arising from— "Capital assets" defiric.j—me term "capital assets" (a) sale, exchange, or involuntary conversion, of land (incJudin means in certain cases unharvested property held by the taxpayer (whether or not connected with his crops sold with the land) trade or business) but does NOT include—, isnode. preciable property if they are used in the trade or businc5s and (a) stock in trade or other property of a kind properly indudib!e held for more than 6 months, in (b) sale, exchange, or involuntary conversion of livestccl held La; his inventory if on hand at th close of the tax Ic year; (b) property held by the taxpayer prinxi1y for sale to customers draft, breeding, or dairy pus'poses (but not induding poultry) and hid for 1 ycaj' or more, in the ordinary course of his trade or bucir.css; (c) property used in the trade or business of a character which is (c) the cutting of timber or the disposal of timber, coal, iron ore, to which section 631 applies, and or domestic subject to the allowance for depreciation provided in section (d) real property used in the trade cr business of the taxpayer; 167; (d) the involuntary conversion o capital assets held morc than 6 (e) certain government obligations issued on or after March 1, 1941, months. at a discount, payable without interest and maturing at a fixed See sections 1231 and 631 for specific conditions applicable, date not exceeding i year from date of issue; from dIsposftin of depreciab property ur.dcr (f) certain copyrights, literary, musical, or artistic composition,, 1245 an 12g3—assnt held more than 6 morths etc.; or (Part Ll).'—(Rcport any gain from such (g) accounts and notes receivable acquired in the ordinary course f or 6 months or less in Part proparty held III.) Except as provided below sac. of trade or business for services rendered or irons the sale of (ion 1245 property means depreciable (a) property referred to in (a) or (b) above. personal property (od.cr than livestock) including intangible personal property; (b) tsn:i. Special rules apply to dealers in securities for determining bie real propr:rty (except capital for buildiogs arid their six uctural componcns) gain or ordinary loss on the sale or exchange of securities. Certain if used as an sniegral part of manufacturing, real property subdivided for sale may be treated as capitol assets, producti, or extrrcticn, or of furnishing transportation, communication,, electrical ca::y, Sections 1236 and 1237. gas, water, or sewage disposal services, or used as a research or If the total distributions to whith an employee is entitled under storage facility ira connection with these activities; and (c) elevators an employees' pension, bonus, or profit-sharing trust plan, which iS and escalators, exempt from tax under section 501 (a), are paid to the employee in Except as provided below section 1250 property means depreciable one taxable year, on account of the employees separation fr,m serv. real property (other than section 1245 property). ice, the ag5regate amount of such distribution, to the extent it exceeds See sact!ons 12-l5(b) and 1250(6) for cxccptio and Iimia. the amounts contributed by the employee, shall be treated as a long. tions invoIvin (a) disposition b7 gift; (b) transfers at death; term capital gain. (See section 402(a).) (c) certain tax.ee transactions; (d) like kind cxchange5, iavolunta' Gain on sale of depreciable property between husband and wife conversions; (e) sales or exchanges to effectuate FCC or between a shareholder and a "controlled cozloration" shall be and exchanges to comply with S.E.C. orders; (1) pronerty dis. polities treated as ordinary gain, tributed by a partnership to a partner; and (&) disposition ol principal Gains and losses from transactions described in section 1231 shall residence (section 1250 only). be treated as gains and losses from the sale or exchange of capital Column I of Part lI.—Ia computing depreciation allowed or allow. assets held for more than 6 months if the total of these gains cceeds able for elevators or escalators, enter in column f-i depredation pror the total of these losses, If the total of these gains does not exceed the to July 1, 1963, and in column f-2 depreciation after June D-1 30, 19G3. (Instructions continued on 0-2,) 69,082 SCHEDULE E (Form 1040) upemeitJ aid 5C ncorne See instructions on E—1. Department of the Treasury Internal Revenue Service . If you use this schedule, attach it to Form 1040. Name as shown on Form 1040 I SocIal Security Number Fill out and attach a separate Part I for each pension or annuity. Enter combined total of taxable portions line 5. PART L—Perision and Annuity Income. • If pension or annuity is fully taxable for 1969, complete only lines 1 and 5. • If not fully taxable, complete all lines including line 2 ifapplicable. 1 Name of payer 2 If employee contribution is recoverable within a 3-year period and you have not recovered your cost tax-free in prior years, show: Your contribution $ • Recovered in prior years $ 3 Amount received this year 4 Amount excludable - ________________ 5 Taxable portion (subtract line 4 from line 3) PART IL—Rent and Royalty Income ) 1. Kind end location of property 2 Toalaount 3. en::nt (Repai,ec...-..- tach computation) explain e ow) iTotals ___________________ ___________________ 2 Net income (or loss) from rents and royalties (column 2 plus column 3 less columns 4 and 5 PART 111.—Income or Losses from Partnerships, Estates or Trusts, Small Business Corpo. rations, and Miscellaneous Income (b) Check applicable box (a) Name and address (fur Miscellaneous Income, shaw Partner. Estate Small Osa. Misc. source and nature of Income in this column) or Trust (C) Employer (ci) come ship Corp. Income identification number or less 1 Income (or loss) Tofal of column (d) TOTAL OF PARTS I, II AND Ill (Enter here and include in total on line 14, Form 1040) . - - Explanation of Column 5, Part II Item Amount Item Amount Item — Schedule for Depreciation Claimed in Part II Above Taxpayers using Revenue Procedures 62—21 and 65—13: Make no entry in column 2, enter the cost or other basis of assets held at end of year in column 3, and enter the accumulated depreciation at end of year in column 4. Ifyou need more space, use Form 4562. 1. Group and guldsllne class 2. Date 3. Cost or 4. Dopreciation 5. Method of or dexcriptioui of propody allowod or allowable computing I 6 Lif. or 7. Depreciation I — acquired other basis rate fa, thus ycar in prior years ulopreciation 1 Total additional first-year depreciation (do not include in items below) 2Totals SUMMARY OF DEPRECIATION Straight line Declining balance yg I Other (specIfy) Total 1 Under Rev. Proca. 62—21 and 65—13 2Other . . I 1e* 010— 275—705 e5D—-iO-—80587—i '4 coth (CEu .C4) Part 1.—Pensions and Annuities such as taxes, interest, repairs, insurance, Publication 541, Tax information on partner- ship Income and Losses. agent's commissions, maintenance, and simi Small Business Corporations._lf you are a Amounts received from annuities, pensions, shareholder in a small business corporation endowments, or life insurance contracts lar items. However, you cannot deduct capital investments or improvements, but must add which elects to have its current taxable income whether paid for a fixed number of years or them to the basis of the property for the pur. taxed to its Stockholders, you should report for life, may have a portion of the payment your share of both the distributed and undis' excluded from income. The following types pose of depreciation. For example, a landlord can deduct the cost of minor repairs, but not tributed current taxable income as ordinary in. come under this rule: (a) pensions where the come in Part Ill, Schedule E, except that por- employee has either Contributed to its cost the cost of major improvements such as a new roof or remodeling. You cannot deduct tion which is reportable in separate Schedule or has been taxed on his employer's contribu- 0 as a long-term capital gain. Neither type of the value of your own labor, tions, and (b) amounts paid for a reason other income is eligible for the divid..'nds exclusion. than the death of the insured under an annuity, If You Rent Part of Your House.—lf you rent Shareholders claiming a deduction for a net endowment, or life insurance contract. out only part of your property, you can deduct operating loss must attach to their return a General Rule for Annuities.—Generally, only that portion of your expenses which re computation of the adjusted basis of their stock lates to the rented part. If you cannot deter. in the corporation and the adjusted basis amounts received from annuities and pen- sions are included in income in an amount mine these expenses exactly, you may figure of any indebtedness of the corporation to the them on a proportionate basis, For example, shareholders. See sections 1374 and 1376 which is figured upon your life expectancy. if you rent out half of your home and live in the and the regulations thereunder for limitation This computation and your life expectancy mul- other half, you can i.educt only half of the on deduction and required adjustments. tiple can be found in the regulations covering depreciation and other expenses, annuities and pensions. Once you have ob. Estates and Trusts.-.--lf you are a beneficiary tamed the multiple it remains unchanged. Do not report in column 2, Part II, Schedule of an estate or trust, report your taxable por- It is not necessary to recompute your ex- E, room and other space rentals for Which you tion of its income, whether you receive it or cludable portion each year. In meking this rendered service to the occupant. Report the not. You should enter your share of income of computation you can get help from the In- rentals received in separate Schedule C. If you the following classes on the appropriate lines ternal Revenue Service as well as from some are engaged in the business of selling real and schedules of your return: employers and insurance companies. estate, you should also report rentals received in separate Schedule C. Dividends from qualifying domestic cor- Special Rule for Certain Typos of lZmployces' porations. Annuities.—A special rule applies for amounts Royaltics.—Report in column 3 royalties from Gains from the sale or exchan&e of capital received as employees' annuities if part of the oil, gas or mineral properties, and royalties assets and certain other property. cost is contributed by the employer and if the from copyrights and patents, However, if you You should include all other taxabe income amount contributed by the employee will be hold an operating oil, gas, or mineral interest, from estates and trusts in this Part. Any dcprc- returned within three years from the date of report gross income and expenses in separate ciation which is allocable to you on estate or the first payment received under the contract, Schedule C. Under certain circumstances, trust property may be subtracted from estote If both of these conditions are met, then all the amounts received on the disposal of coal and or trust income so that only the net income re- payments received under the contract during iron ore may be treated as the sale of a capital ceived will be included in your return. You may the first three years are to be excluded from asset. (See Publication 544, Sales and Ex. get information regarding these items from the income until the employee recovers his cost changes of Assets.) fiduciary. (the amount contributed by him, plus the con- If State or local taxes were withheld from tributions made by the employer on which the Miscellaneous lncorne.—Report here ccrtain oil or gas payments you received, report in types of incore for which you ca,not find a employee v,as previously taxed), Thereaftcr, all column 3 the gross amount of royalty, and amounts received are fully taxable, This method specific place on your return or rc!aic chc'i- include the taxes withheld by the producer in ules. The source of income reported hr of computing taxable income also applies to column 5, other expenses. the employee's beneficiary if the employee died must be identified in column (a). R,ort here before receiving any annuity or pension amounts received as alimony, separate main- payments. Part III.—Partnerships, 'Etc. tenance, prizes and awards; also, rccovcrics of bad debts and other items which rediicci your Example: An employee received $200 a Partnerships.—lf you are a member of a part- tax in a prior year. A refund of State income month from an annuity. While he worked, he nership, joint venture, or the like, include in tax should also be entered here. The generol contributed $4,925 toward the cost of the Part Ill, Schedule E, your share of the ordinary rule is that a refund of State income tax ia in- annuity, His employer also made contribu- income (whether you actually received it or come to the taxpayer if a deduction resulting tions toward the cost of the annuity for which not), or the net loss for the taxable year which in a Federal tax benefit was taken for a prior the employce was not taxed. The retired cm ends within or with the year covered by your year. Taxpayers using the cash basis report ployee would be paid $7,200 during the first return. However, losses are only allowed to the the refund in the year received; taxpayers us- three years, which amount exceeds his contri- extent of the adjusted basis of your partner- bution of $4,925. He would exclude from in- ing the accrual basis report when the claim ship interest at the end of the partnership is allowed, If no claim is filed, report when the come all the payments received from the year in which the losses occurred. taxing authority notifies you of the overpay- annuity until he has received $4,925. All pay- ment ments received thereafter are fully taxable, Items of income, deductions, etc., to be carried to your individual return are shown Death Benefit Exclusion.—lf you receive pen. in Schedule 1< of the partnership return. You Net Operating Loss.—lf, in 1969, your ousi. sion or annuity payments as a beneficiary of should enter on the appropriate lines and. ness or profession lost money, or you had a a deceased employee, and the employee had schedules of your return your share of income casualty loss, or a loss from the sale or other received no retirement pension or annuity from the following sources: disposition of depreciable property or real payments, you may be entitled to a death Dividends from qualifying domestic cor- property used in your trade or business, you benefit exclusion of up to $5,000. (For de- porations. can apply the losses against your 1969 income. tails see Publication 524, Retirement Income If the losses exceed your income, the excess and Retirement Income Credit.) Salaries and interest paid by the partnership. is a "net operating loss." Generally it may be Gains from the sale or exchange of capital used to offset your income for the three years assets and certain other property. prior to and the five years following this year. Part 11.—Rent and Royalty income The loss must be carried back to the third Also, include your share of the specially Rents.—lf you are not engaged in selling real allocated income and deduction items. prior year and any remaining balance hrour-,ht estate, but receive rent from property you own torward to each suceeoing yea:. 1 u 'Carry- or control, report the total in column 2, Part The individual partner must include his back" entitles you to a refund, use Form II, Schedule E. If you received property other distributive share of partnership income (or 1045 to claim a quick refund. loss) from the operation of a trade or busi. than money as rent, report its fair market ness which constitutes net earnings from If you had a loss in a prior year which value. may be carried over to 1969. you should enter self-employment on separate Schedule SE. In the case of buildings you can deduct Members of farm partnerships should comrn it as a "minus" figure under "Miscellaneous depreciation. You can also deduct all ordinary pIet Part II of Schedule SE first to figure income." Attach computation. and necessary expenditures on the property, self-employment tax. For further details see lb—SQ7.i E—1 **ft U.S.GOVERNMENT PRIN1ThG ocn , I9—O-354-O9O 69 Qg4 SCHEDULE F (Form 1040) WCC Dertrnent of the Treasury (Compute social security sef.employment tax on Schedule SE) Internal Revenue Servic. . See separate instructions. .. If you use this schedule, attach it to Form 1040. Name as shown on Form 1040 Social security number ..........- Business name and address If you filed Form 943, entcr em' ployar identification number here Location of farm(s) and number of acres in each farm Farm Income—Cash Receipts and Disbursements Method Do not include sale of livestock held for draft, breeding, or dairy purposes: Farm Deductions L.. report such sales on Schedule 0. Do not include peroonal or living expenocs rat Sales of Purchased Livestock and Other Items Purchased for Resale attributable to production of farm income, such aS taxes, insurance, repairs, etc., on your dwelling. a. Description b. Aerount received c. Coat or other basis d. Profit (or loss) Items Amount 1 Livestock' $ $ 5 29 Labor hired . $ 30 Repairs, maintenance. 31 Intorest 2 Other items' ... 32 Rent of farm, pasture. 33 Feed purchased 3Totals Is $ 34 Seed, plants Sales of Market Livestock and Produce Raised and Held Primarily purchased . for Sale and Other Farm Income 35 Fertilizers, lime Kind Quantity Amount 36 Machine hire 4 Cattle $ 37 Supplies purchased 5 Beef calves 3 Breeding fees 6 Sheep 39 Veterinary, medicine 7 Swine 40 GaSoline, fuel, oil 3 Poultry 41 Storage, warhousirig. 9 Dairy products 42 Taxes lOEggs 43 Insurance . 11 Wool —..—............. 44 Utilities 12 Cotton 45 Freight, trucking 13 Tobacco .... 46 Conservation 14 Vegetables —.'., expenses . 15 Grain - 47 Retirement plans, etc. (other than your 16 Fruits arid nuts share — See separate 17 Other (specify):..... .. .. instructions) 48 Other (specify)' OTHER FARM INCOME 18 Machine work 19 Patronage dividends . 20 Per.unit retains 21 Agricultural program payments: (1) Cash 'I' — '. (2) Materials and services 2.2 Commodity Credit loans under election (or forfeited) 23 Federal gasoline tax credit 24 State gasoline tax refund 25 Other (spacify)' — ..__.......,.. _....... 49 Add lines 29 2$ Add lines 4 through 25 $ through 48 . . . $ 50 Depreciation (from line 27 Amount from line 3, column d, above . 54, Part Ill) . .. 51 Total deductions. Add 23 Gross profit (add lines 26 and 27) pis lincs49and5O. . $ 52 Net farm profit (or loss) subtract line 51 from line 28). Enter here and include In. total on line 14, Fcrm 1040. ALSO enter ors Schedule SE, Part II, line la ... >1 $ * Uss this amount for optional method of computing net earnings from self'cmployment, (Sc. linc 3, Part II. Scheduls SE.) 5a—.oaale4o .45—50—50554—I 354—057 OPO 69085 $chedule F (Form 1040)1969 — ._ PART IiI.—DEpRciATiON (Do not iocli p'prtyynu and your ftrnilyuccupy as a dwelling, its IuroisJ,i sod other items ucd for personalpurposco). Taxpayers using Revenue Procedures 62—21 and 65—13: Make no entry in column 2, enter the cost or other bi of asc held at end of year in column 3, and enter the accumulated deprectatton at end of year depreciable assets in accordance hvith the categories specified below or (2) COfltiu to listin column 4. in the same mannergr3up your assets t'!otc: You may (1) as tn prior years. If you need more space, use Form 4562. 5. cthod of 1orO:uee;sc o2qed o3Chcrhsjs all 6. Utoor 1. Deprociaflon fQr 53 Total additional first•year depreciation (cl not Include in items below) - . .- Buildings — — — Furniture and fixtures — Transportation equipment — Machinery and other equipment — Other (specify).__ — 54. Totals I Enter here and in Part II, line 50 . . . SUMMARY OF DEPRECIATN Straight line Declining bolanc. Mditionnl firt•year Other (specify) Total a Under Rev Procs 62—21 and 65—13 . —- b.Other PART IV.—FARM INCOME—.CCRUAL METHOD (Do not include sales of livestock held fur draft, brcediiig, or dairy purposas; report such sales on Schedule and onit "On hand at beginning of year" column) Description (Kind of livestock, crops, On hand at begineing of year Purchssed during ycor ed._ uring year Consumed or lust during Sold during yrr On hand at end of year erotherproducta) year - . Quantity Inventory value Quantity J Amount paid Quantity Quantity Quantity j Amount received Quantity J lnvrsIry vlO —-—-- .—--------. ¶------ — $- —- ------,.---. —------— --------— ,.— 55 Totals, ei,ter hero and in • P rt V bet ' 9 —-—---. . - (Euler on line 65) (Enlor en tine 6G) (Enter on line 57) (t,itr O iSt PART V.—SUM1ARY OF INCOME AND CEDUcTLONS—ACCRIJAL MZTHOD 56 Inventory of livestock, crops, and products at end of year 37 Sales of livestock, crops, and products durIng year. 53 Agricultural program payments: (1) Cash (2) Materials and services . 59 Commodity Credit loans under election (or forfeited) 60 Federal gasoline tax credit 61 State gasoline tax refund 62 Other farm income (spc).._.._........... 63 Add lines 57 through 62 64 Total (add lines 56 and 63) 65 Inventory of livestock, crops, and produc at beginning of year 66 Cost of livestock and products purchased during year 67 Gross profits (subtract (ho sum of lines 65 and 66 from line 64)' 63 Total deductions from line 51, Part It. pare 1 . . . - 69 Net farm profit (or loss) (subtract line 68 from line 67). Enter here and include in total on line 14, Form 1040. ALSO enter on Schedule SE, Part II, line is a Use this amount for optional method of computIng not earnings from selt..niptoymogot. (See lIne 3, Part II, Schedule SE.) 5z—0z37040 ,4$—a—8oaos— aol-os; e.o 69 086 37 SCHEDULE G kicome Ivergg (Form 1040) Department of the Treanury Internal Revenue Service Name as shown on Form 1040 •.__ i'. See instructions on pages 3 and 4. o. If you use ths schedule, attach it to Form 1040. —- —- .__ ._••_ 1JJ Social security number PART 1.—TAXABLE INCOME AND ADJUSTMENTS ...-.--.---..... .- .--...... -.. -- ...! .' (a' Computation year (b) lot P!ecedin baou (c) 2d prcceding baa. pericd year (d) 3d preceding baa. (e) 4th prece4lng bas period yea, period year period year 1969 1968 1967 1966 1965 1 Taxable income (see Instruction 1) 2 Income earned outside of the United States or within U S possessions and excluded under sections 911 and 931 3 Capital gain net income from Schedule 0, line 11 or Capital gain dividends reported ore Form 1040, page 2, Part II, line 7 (1967— 1968) 4 Net income from gifts. etc., received this year or any base period year. (If $3,000 or less in 1969 do not enter in any year.) 5 Net income from wagering and other items described in instruction 5 -: -:-.. :. 6 Line 1 plus line 2, less lines 3, 4, and 5 7 Adjusted taxable income or base period in - come. Enter amount from line 6, or "Zero" if line 6 is less than zero PART 11.—COMPUTATION OF AVERAGABLE INCOME 1 Adjusted taxable income (line 7, column (a), Part I) 2 331/3% of the sum of line 7, columns (b), (c), (d), and (e), Part I. . . . . , 3 (a) 25% of the sum of line 3, columns (b), (c), (d), and (e), Part I. NOTE If an amount less than zero appears in line 6, Part I, see instruction 3(a) under Part U (b) Amount from line 3, column (a), Part I _________________ (c) If line 3(a) is more than line 3(b), enter difference—If not, make no entry 4 Averagable income (line 1 less lines 2 arid 3(c) ) _________________ COMPLETE THE REMAINING PARTS OF THIS FORM ONLY IF LINE 4 IS MORE THAN $3,000. IF $3,000 OR LESS, YOU DO NOT QUALIFY FOR INCOME AVERAGING. DO NOT FILL IN REST OF FORM. L'r i PART 111.—SEGMENTS OF INCOME UNDER AVERAGING lAmountfromline2,PartII ZAmountfromline3(a),PartII 3 20°% of line 4, Part II 4 Sum of lines 4 and 5, column (a), Part I, less any income subject to a penalty under section 72(m)(5) which was Included Inline5,Partl 6 Total (sum of lines 1 through 5 ) 5 If line 3(b) is more than line 3(a). Part II, enter difference—if not, make no entry PART IV.—COMPUTATION OF TAX __________ 1 Taxontheamountonlino6,PartIII 2 Sum of lines 1, 2, and 3, Part Ill I 3 Taxonamountonline2 .. 4 Sum of lines land 2, Part Ill . . . •••.. 5 Taxonamountonline4. . . •• •• 6 Difference(llne3lessline5) . 7 Multiplytheamountonline6by4 ••• a Total(addlinesland7) ... 9 Tax on income subject to the penalty under section 72(m)(5) which was included in line 5. Part I 10 Tax (add lines 8 and 9). Enter here and on Schedule Y line 6 if you are not using the alternative tax computation In Part V. Also check Schedule G box on Form 1040, line 18 69 087 1 Amountfromhnelo,partlv 2 Amountfromline5,partly 3 (a) Amount from line 2, Part ii (c) Sum of lines 3(a) and 3(b) '4 Taxonamountonhine3(c) 5 Difference(line2IesslIne4) 6 Amountfromlinel,partlV 8 Taxonamountonljne7 9 Diffeence (line 6 less line 8) lOSumotlines5and9 1250%oflinelj Part I, etc. . .......... (b) Amount from line 3(c), Part ii 7 Sum of lines 1, 2, 3, and 4, Part Ill 11 Amount from line 3, column (a), Part I 13 If line 10 is more than line 12. enter difference—otherwise alternative 14 Alternative tax (line 1 less line 13). Enter here and on Schedule Use this space for additional information such as determining base • • . .. ____________ _____________________ __________________ _________________ tax does not apply ___________ ___________ _______ __________ ____________ __________ T, line 6. Also check Schedule C box on Form 1040. line 18. period income in accordance with General Instruction C or itemizing ° of lini 69 088 Page 3 General Instructions This schedule must be attached to your Form 1040 to choose the benefits of income averaging. Only individuals who a.re citizens or residents of the United States throuout 1969 are eligible for averaging. Corporations, estates and trusts do not qualify. The income averaging method of computing tax may be to your advantage if your income has increased substantially this year. Under this method your 1969 income which exceeds by one-third the income of your four prior years (1965—1968) is taxed, in effect, by avera4ing that excess over the five-year period (1965—1969). Basically, the taxable income for cacti year is the figure utilized. However, since capital gains, wagering income, certain income from gifts, etc., are not subject to averaging, adjustments to the taxable income, as it appears on Form 1040 for each year, are necessary. MAY FILE..—_Generally, you may choose the of A. WHOaveraging for 1969, by filing Schedule G with provisions income your Form joint return for 1969, and neither person was married from 1965 1040 if you meet the requirements of (i) citizenship or residence, and through 196$, their base period incomes for each of those years is the (2) support. On a joint return both husband and wife must meet sum of the husband's separate base period income and that of his wife for each such year. the requirements. In some cases the computation of your separate base period income (1) Citizenship or residence requiremerit.-..you must have for a base period year may require as many as three computations. been a citizen or resident of the United States throughout 1969. The facts in each case determine how many Computations are neces- A nonresident alien at any time during the five taxable year period sary. For instance, if you were married for 1969 and made a joint ending with 1969 is not eligible. return with your wife (husband), but had a different wife (husband) for 1969 than for a base period year, two computations are necessary. (2) Support requirement._..y00 must have furnished at least 50 percent of your own support for each of the years 1965 through In such case, your separate base period income for the.year in question is the larger of the following amounts: 1968. In a year in which you were married it is only necessary that you together with your wife provided at least 50 percent of the sup. (1) The amount of your adjusted separate income and deduc- port of both of you. For definition of support see Form 1040 tions for the base period year. Instructions on B—2. (2) One-half the total amount of base period income resulting Exceptions. The support requirement is waived if— from adding s-our adjusted separate income and deductions to the (1) You were age 25 or more before the end of 1969 and you adjusted separate income and deductions of your wife (husband) for that base period year. were not a full-time student during at least any four of your tax- able years beginning after you have attained the age of 21. Thus, However, if you and y6ur wife file separate returns for 1969, a generally, if you are age 25 or over and have been out of school third computation is necessary: Your separate base pcriod in- for 4 years since age 21, you are eligible for averaging. You are come will be the largest of the amounts determined under (1) and (2) above and: a student for a taxable year if during 5 calendar months of that year you were a full-time student at an educational institution or (3) One-half the total amount of the base period income re- were pursuing a full.time course of institutional on-farm train- sulting from adding your adjusted separate income and deductions ing under the supervision of an accredited agent of an educational to the adjusted separate income and deductions of your wife (hun. institution or of a State or political subdivision of a State. band) for 1969 for that bac period year. (2) More than 50 percent of your adjusted taxable income for The amount of your separate income and deductions for a bsae 1969 (line 7, column (a), Part I) is attributable to work per. period year is the excess of your gross income for that year over your formed by you in substantial part during two or more of the four allowable- deduct ions. \'our separate deductions for any base period taxable years preceding 1969, or year for which you made a separate return are the deductions ailo'.v. (3) You file a joint return for 1969 end not more than 25 per. able on that return. If you made a joist return for a base period year, cent of the aggregate adjusted gross income (Form 1040, line your separate deductions are (1) in the case of deductions aUO\VahC 15c) is attributable to you. in computing your adjusted gross income, the sum of such deiucticr attributable to your gross income, and (2) in the case of deductions . PROVISIONS NAPPLICABLE._If you file Schedule G you allowable in computing taxable income (exemptions and itemized may not— deductions), the amount resulting from multiplying the amount of (i) Exclude from income any part of your earned income from such deductions allowable on the joint return by a fraction whoe sources without the United States (see section 911 and Form 2555) or any income from sources within possessions of the United States numerator is your adjusted gross income and whose denominator is (see sections 931—934 and Form 4563). the aggregate adjusted gross income on the joint return. However, if (2) Use the tax tables on T—2 and T—3, of the Form 1040 in. 85 percent or more of the aggregate adjusted gross income of a hu. band and wife is attributable to either one, all of the deductions structions. You may, however, use the standard deduction. (3) Avail yourself of the limitation on tax under section allowable in computing taxable income are allowable to the eric to whom such income is attributable, See specific instruction 1, under 72(n) (2) for income resulting from certain distributions from an Part I, on adjusted gross income. employees' trust. In computing your separate base period income when community C. BASE PERIOD INCOME R(JLES.—Your base period income property laws are applicable, you must take into account all of the for each of your base period years (1965—1968) must be determined earned income you earned, without regard to the community property in a manner consistent with your return for 1969. If you make a laws, or your share of the community earned income under the com- separate return for 1969, you must determine your separate base period munity property laws, whichever is greater. income for each of your base period years. If a husband and wife If you must determine your separate base period income for any make a joint return for 1969, they must determine the sum of their of the base period years, show the computation and give names tinder separate base period incomes for each base period year. Thus, if you which the returns were filed in the space provided on page 2. If and your wife make a joint return for 1969 and were married and additional space is needed show your computation on an attachment. made joint returns with each other for any base period year, your base An example illustrating such computation follows: period income for each such year is to be figured on the basis of your H and W arc calendar year taxpayers who were married and other. aggregate taxable income for that year. If you make a return for 1969 wise eligible to choose the benefits of income averaging for the tax. as a surviving widow(er) (under section 2(b)), your base period in. able year 1969 for which theyn,ade a joint return. W, however, was come for each of the base period years (1965—1968) is the sum of married to and madc a joint return with A for the taxable year 1965. your base period income and that of your deceased husband (wife) for H was unmarried for 1965. H and W compute their base period each such year. If a husband and wife married in 1969 and make a income for 1965 in the following manner: A & W (Joint Return) A Salary .......•••••..••••• Dividends . . . . . .....•,..... •• $16,000 $11,500 W $4,500 H $3,000 •• 2,000 500 1,500 1,003 Adjusted Gross Income Total of itemized deductions and personal exemptions . . . •• $18,000 $12,000 $6,000 $4,oo •• 3,600 — 2,400 1,200 (1) 1,600 Taxable Income (Separate Income and Deductions) ..•. .a $14,400 $9,600 $4,800 $2,400 (1) 6000 (W's separate adjusted gross income) (Total of itemized deductions and personal 18000 (A and W's adjusted gross income from >c 1200 exemptions on A & W's joint return) oint return) Method No. 1 — W's separate income and deductions. - • ...•...•.....•••••••.a..• •• ..•• Method No. 2 — 'W and A's taxable income from joint return, $14,400 X 50 percent • $7,200 'W's separate base period income is $7,200, the larger of the two methods. H and W's base period income (since there are no adjustments) for 1965 is $9,600 (H's separate base period income of $2,400 (unmarried in 1965) plus W's separate base period income of $7,200). 69 089 Page 4 SPECIFIC INSTRUCTIONS Tha following instructions are numbered to correspond with the line numbers In each part of the fomi. Part I (b) Income from oil and gas properties. The amount received I Except as noted below, enter on this line the amount (never less from the sale of any oil or gas property to which section 632 applies. thaa zero) from— (c) Claims against, the United States. The amount received (a) ScheduleT (1969)—line5 from the United States to which section 1347 applies. (b) Form 1040 (1965—68)—line lid, page 1 (d) Excess Community Income. If you are married, a resident Tax Computation of a community property state, and file a separate return for 1969, (c) Form lO4oA (1965-.68)--—line 5, page 4 Schcdule Form you must include in this line the excess of the community 1040A Instructions income reportable by you over the amount of such income attrib. utable to your services. No adjustment need be made where the For any year for which you use the tax tables to compute your tax, community earned income attributable to your services exceeds 50 you may arrive at the amount to be entered in line 1, by subtracting percent of the aggregate communjy earned income. The follow- from your adjusted gross income (see below) the standard deduction ing example illustrates this.— and $600 multiplied by the number of exemptions. Adjusted gross income is— Attributable to Service of (a) Form 1040 (1969)—line 15c Community Earned Income . .. . H W Total $40,000 $20,000 $60,000 (b) Form 1040 (1965—68)—linep,pagei (1) H filing a separate return has no adjustment since th (c) Form lo4OA (1965—68)—item 7, page 1 amount of earned income attributable to his services ($40,000) exceeds so percent of the aggregate community earned income NOTE: If you were not married to and did not file a joint return ($30,000). with the same wife (husband) for every year after 1964, or were not single for all those years, it will be necessary to determine the (2) W filing a separate return must include in the total for amount to be entered in columns (b), (c), (d), and (e) in accord. this line $10,000, the excess of the community earned income ance with General Instruction C reportable by her ($30,000) over the amount of 2 Enter on this line for each base period year the net amount of earned income attributable to her services ($20,000). community income previously excluded from income because it was earned income (a) Certain amounts received by owner.cmployees. The amount derived from sources without the United States or from income within of income resulting from a premature or excessive distributioa its possessions (sections 911 and 931—934). For 1969 you may not from a qualilied employees' pension plan or trust to an employee exclude such amounts from gross income and they will therefore ba who is (or was) also an owner of the business. The amount of reflected in taxable income. such income is the amount subject to a penalty under scctioQ 3 If any amount entered in line 1, columns (b), (c), (d), and (e) 72(m) (5). is an amount determined under Base Period Income Rules (General Instruction C) then the capital gain net income for the same year must be determined using the same method that was used for that year in Part II line 1. 4 You must enter for all years certain amounts of income attribut- 3(a). Generally, the entry on this line is one.fourth of the sum of able to interests in property which were received, during 1969, or any the c.tpitaj gain net income in line 3, columns (b), (c), (d), and (e), base period year (1965 through 1968), as a gift, bequest, devise, or Part I. However, capital gain net income for any base period yea: inheritance, but only if the amount of such net income for 1969 ex- may not exceed the base period income (line 7, columns (b), (c), ceeds $3,000. (If the property was received prior to 1965 no entry is (d), and (e), Part I) for such year computed without reduction by required.) If you have an interest in more than one piece of prop. the capital gain net income ior such year. Line 6, Part I, indicates erty, the income to he taken into account is the sum of the incomes whether the adjustment for any year iS necessary. If any of the (losses) for the year from each piece of property. If the adjustment amounts on line 6 in columns (b), (c), (d), and (a) are less than is required for 1969 (because it exceeds $3,000), thea an entry fot zero, then for that year add lines 3 and 6. If the resulting sum is this item must be made for alt the base period years for income (dis. less than zero your capital gain net income for such year is zero. The regard any net loss(es)) in those years attributable to gifts, etc., re- following examples will illustrate this.— ceived during the base period even though such income for any of these years does not exceed $3,000. Unless you establish the actual Example (1)— Column (b), Part I amount of net income attributable to an interest in property for all the Line 3 years 1965 through 1969, the amount of net income is deemed to be 6 Line 6 $100 percent of the fair market value of such interest on the date of its (670) m, receipt for all such years. Capital gain net income for this year for purposes of The above rules do not, however, apply to income attributable to computing entry for line 3(a), Part U gifts, bequests, devises, or inheritances between husband and wife if they file a joint return for 1969 (including a joint return filed by a Example (2)— survivor with his deceased wife (husband) for 1969), or if one of Line 3 them files a return as a Surviving widow(cr) for 1969. The rules do Line 6 apply where the property transferred was received by the transferor husband (wife) from a third party in any of the years 1965 through Capital gain net income for this year for purposes of 1969, as a gift, bequest, devise, or inheritance. computing entry for line 3(a), Part IX 5 Include income attributable to the following sources in the total to be entered on this line (show itemization in space provided on page 2): Parts IV and V (a) Wagering income. The amount which is attributable to the excess of gains over losses from wagering transactions, To figure your tax use the tax rate schedules on T—1 of the instruc- tion booklet for Form 1040. ***'u.t FU, -O-3s4-ca5 52—0237640 6.9 090 4 SCtIEDULE R (Form 1040) Deprtmert of the Treusuiy lnternl Revenue Sorvicø Name as shown on Form 1040 . >. Sea instructions on R—1. if you use this schedule, attach it to Form 1040. - A. General Rule..— If separate return, use column l3 only. If joint return, use coIum, A for wife and column B for husband. Did you receive earned income in excess of $600 In each of any 10 calendar years before 1969? (Widows or widowers see instructions on R—1) If answer above is "Yes" in either column, furnish all information below in that column. 1 Retirement income for taxable year: (a) For taxpayers under 65 years of age: Enter only income received from pensions and annuities under public Fed.. State Govts., etc.) included on Form 1040. line 15c retirement systems (e.g. (b) For taxpayers 65 years of age or oldcr Enter total of pensions and annuities, interest and dividends included on s-orm 1040, line 15c, and gross rents from Part II, column 2 of Schedule E 2 Maximumamountofretiremefltjflcomeforcred.tcomtt. 3 Deduct: (a) Amounts received as pensions or anntrities under the Social Security Act, the Rail' road Retirement Acts (but not supplemental annuities), and certain other exclusions from gross income (b) Earned income received (Does not apply to persons 72 years of age or over): (1) Taxpayers under 62 years of age, enter amount in excess of $900 (2) Taxpayers 62 or over but under 72, enter amount determined as follows: if $1,200 or less, enter zero if over $1,200 but not over $1,700. enter '/2 of amount over $1,200; or if, over $1,700, enter excess over $1,450 4 Total of lines 3(a) and 3(b) 5 t3alance (subtract line 4 from line 2) 6 Line 5 or line 1, whichever is smaller . . 7 (a) Total (add amounts on line 6, columns A and B) . .1 If line 7(a) is less than $2,286 and this is a joint return and both husband and wIfe are ao 65 or over, Altornotiva Computation in 13 below which may result in a larger credit. (b) Amount from line 7 of part B below, if applicable 8 Tentative credit. Enter 15% of line 7(a) or 15% of line 7(b), whichever is greater. 9 Amount of tax shown on Schedule 1, line 6 10 Credit claimed for foreign taxes or taxfree covenant bonds 11 Subtract line 10 from line 9 (if less than zero, enter zero) 12 Enter here and on Schedule 1, line 7, the amount on line 11 or line .8, whichever is smallep 13 Enter here the Tax Surcharge From Schedule T, line 9 14Addlines12and1 15 If line 10 is greater than line 9, enter excess here 16 Sub'tract line 15 from line 14 (if less than zero, enter zero) 17 Credit. Enter here and on Schedule T, line 11, the amount shown on line 16 or line 8, whichever is smaller. . . Alternative Computation (after completing lines 1 -r•,. met,.. .i (a. You are married and filing a Ioint return; through 7(a) above) 1bi., o - available if: b. Both husband and wje are 65 or ever, AND C. Either one, or both reccived earned income In excess of $600 In each of any 10 calendar years before 1969. Furnish the information called for below for both husband and wife even if only one answered "Yes" In Column AorBaboye. 1 Retircment income of both husband and wife from pensions and on Form 1040, line 15c, and gross rents from Part II, column 2annuities, interest, and dividends included of ScIedule E 2 Maximum amount of retirement income for credit computation 3 Deduct: ---------------------.--.----- 00 [A—WIFE __-HUSBANo (a) Amounts received as pensions or annuities under the Social Security Act, the Railroad Retirement Acts (but not supplemental annui- ties), and certain other exclusions from gross income . (b) Earned income received (Does not apply to persons 72 or over): if $1,200 or less, enter zero . . . - if over $1,200 but not over$1,700enter% of • • amount over $1,200; or if over $1,700, enter excess over $1,450 4 Total of lines 3(a) and 3(b) 5 Total (add amounts on line 4, columns A and B) 6 Balance (subtract line 5 from line 2) 7 Enter here and on line 7(b) of part A above, the amount on line 6 or line 1, whichever is smaller "a. VLNUTFRi1ITING OFFIi t$e—Q-35-Øç3 3Z—053764Q 0,0 69 091 e—eo6aa—1 structos for iedc of the retirement income used br (orrn aO4o)—9 the credit computation may not ex- ceed $1,524 reduced by (a) Any amount received and excluded Retirement Income Credit (widower) and have not remarried, from income as a pension or annuity you may use the earned income of under the Social Security Act and You may qualify for this credit, your deceased husband (wife), or Railroad Retirement Acts (but not which is generally 15 percent of re- you may combine his (her) earned tirement income, if you received supplemental annuities) and other income with yours to determine if tax-exempt pensions or annuities. earned income in excess of $600 in you qualify for the credit. each of any 10 calendar years—not Line 3(a), General Rule and Alter- necessarily consecutive__before the Retirement income for the pur- native Computation, must reflect pose of the credit means— the gross amount of social security beginning of your taxable year. benefits before deduction of any The maximum amount allowed (a) In the case of a person who amounts withheld to pay medicare any one individual as a credit is not 65 before the end of his tax- insurance premiums. This reduction against his income tax is $228.60 able year, only income received from does not include (1) that part of a (15% X $1,524). The maximum pensions and annuities under a pub- pension or annuity which is excluded allowable credit on a joint return lic retirement system (one estab- from income because it represents, where both husband and wife show lished by the Federal government, a in effect, a return of capital or tax- $1,524 on part A, line 6, columns State, county, city, etc.) which is in. free proceeds of a like nature, or (2) A and B, is $457.20. cluded in income in his return. amounts excluded from ir.conie re- ceived as compensation for injury The term "earned income" Disability annuities received by or sickness or under accident or means wages, salaries, professional Federal employees prior to normal health plans. (b) Certain adjust- fees, etc., received as compensation retirement age that exceed the sick ments for earned income. for personal services actually ren- dered. It does not include any pay exclusion do not qualify as retirement income. Alternative Computation. — The amount received as an annuity or maximum amount of retirement in- pension. If you were engaged in a (b) In the case of a person who come to be used in figuring the trade or business in which both per- is 65 or over before the end of sonal services and capital were credit for retirement income is his taxable year, income from pen- $2,286 fot taxpayers who fil2 joint material income-producing factors, sions, annuities, interest, rents and a reasonable allowance as compen- dividends that are included in returns (both 65 years of ae or sation for the personal services you gross income in his return. (Gross over) but who would otherwise be rendered, not in excess of 30 per- income from rents for this purpose limited to $1,524 because either the cent of your share of the net profits means gross receipts from rents husband or wife did not have earned of such business, shall be consid- without reduction for depreciation income in excess of $600 in each ered as earned income. or any other expenses. Royalties are of any 10 prior calendar years. Both husband and wife may take not considered rents for this purpose.) If you meet these requirements, the retirement income credit if both also complete the Alternative torn- qualify and both have retirement in- Except as provided in the "Alter- putation to determine which com- come. If you are a surviving widow native computation," the amount putation results ,in the larger credit. R—1 '*** U.SGOVRNMENTPRINTlNGOFflcE.zg_Q.3 52-0Z3764o 1G—$O9I 69 092 SCHEDULE SE (Form 1040) Computatci of Soca Scury Sef-Emp!oyment Tax Dc.artrncnt of the Ireury '• See instructions. Internal ncvonue Seric If you ue this schccuIe, attach it to Form 1040. \__, If you had wages, includrng tips, of $7,800 or more which were sLbec to social sccuril.y taxes, do not (iii irf this - If you had more than one business, combine profits (or losses) from all of your businesses and farms on this Schedue SE page. Each self-employed person must f;le a soparate Schedule SE on which he should include the total from all businesses and farms. Irnportant.—The self-employment income reported below will be credited to jour cocial security record and used in figuring social security benefits. Name of self-employed person <as shown on social security card) Social Security Number Check applicable block 1 0 ... ________________________________________________________________________ - . - Business activities subject to seif-employment tax (grocery store, restaurant, farm, etc.) '. .- .--.- Male 2 0 Female Computation of Net Earnings from BUSiNESS Self-Employment (other than farming) 1 Net profit (or loss) shown In Schedule C (Form 1040). line 27 (Enter combined amount if more than one business) 2 Add to net profit (or subtract from net loss) losses of business property shown in Schedule C, line 23 3 Total (or difference) 4 Net iecome (or loss) from excluded servIces or sources included on line 3 5 Specify excluded services or sources ..._. ..... Net earnings (or loss) from business self-employment (subtract line 4 from line 3). Enter here and on line 1(a), Part III, below •iJrj Computation of Net Earnings from FARM Slf-EmpIoyment . A farmer may elect to compute net farm earnings using the OPTIONAL METHOD (line 3, below) INSTEAD OF REGULAR METHOD (line 2, below) if his gross prof.ts arc: (1) $2,400 or less, or (2) more than $2,400 and net profits are less than $1,600. If your gross profits from farming are not more than $2,400 and you elect to use the optional method, you need not complete lines 1 and 2. Cmiputation under Regular Method 1 Net farm profit (or loss) from: (a) Schedule F, line 52 (cash method), or line 69 (accrual mcthod) (b) Farm partnerships . 2 Net earnings from self-employment from farming. Add lines 1(a) and (b) Computation under Optional Method 3 If gross profits from farming are:* (a) Not more than $2,400, enter two-thirds of the gross profits -______________ (b) More than $2,400 and the net farm profit is less than $1,603, enter $1,600 °Note.—.-Gross profits from farming are ilie total of the gross profits from Schedulo F, line 28 (cash method), or line 67 (accrual method), plus the distributive share of gross profit from farm partnerships as explained in !nstructions for Schedule SE. - 4 Enter here and on line 1(b), Part III, below, the amount on line 2 (or line 3, if you use optional method) . j] Computation of Social Security Self-Employment Tax 1 Not earnings (or loss) from self-employment— (a) From business (other than farming—from line 5, Part I, above) . (b) From farming (from line 4, Part II, above) ...... (c) From partnerships, joint ventures, etc. (other than farming) (d) From service as a minister, member of a religious order, or a Christian Science practitioner, If you filed Form 4361, check here 1J and enter zero on this line (e) From service with a foreign government or international organization —.--- (U Other (director's fees, etc.). Specify ...... ._....__...• .. ..... 2 Total net earnings (or loss) from self-employment reported on line 1 (If line 2 is under $400, you are not Subject to self-employment tax. Da not fill in rest of page.) 3 The largest amount of combined wages and self-employment earnings subject to social security tax is $7,800 00 4 (a) Total °F.I.C.A." wages as indicated on Form W—2 . (b) Unreported tips, if any, subject to F.I.C.A. tax from Form 4137, line 9 (c) Total of lines 4(a) and 4(b) 5 Balance (subtract line 4(c) from line 3) 6 Self•emjoymont income—line 2 or 5, whichever i smaller 7 If Iire 6 is $7,800, enter $538.20; If less, multiply the amount on line 6 by .069 8 Railroad employee's and railroad employee representative's adjustment for hospital insurance beitefits tax from I Form 4469 9 Self-employment tax (subtract line 8 from line 7). Enter here and on Schedule 7, line 16 I 52—0537C40 c48—i6—O59l—1 3.tl-007 eo 69. 093 L for c.'r' Schedule SE replaces (Note: Schedules C—3 and F—I. Schedule SE provicic the Social Sccurty Employees and piJirlic officials.._.lncome Joint Returns Administration with the information on (fess, salaries, etc.) from the performance of ernioymcnt ncome necessary for cor1ptg service as: (a) a public official (except as For a joint return, show the name of the bcr.efits under the Social security prc-m. notad above); (b) an employee Ot employee one With self-cmpoyment income on Schedule Seli.omployn,ent tax must be paid roarj. representative under the railroad retirement SE. If both husband and wife have e,di-enl- loss of ago .ind oven though the indivith,al is syatern; or (c) an employee (except as indi- ployment income, each must file a scpsrate receiving social security bcnefits cated above). Schedule SE. However, include the toiM of To assure proper credit to your account. en• r'-jte.—lncome of an employee ia or over profits (or loss) from all businesses on rorm tot your name and social security number on (rein the sale of newspapers or magazines to 1040, line 14, and enter the combined self- Schedule SE exactly as they are shown on an uiti.nate consumer is subject to self. employment tax on Schedule 1, line 16. your social security card. employment tax if the income Consists of Community Income Ministers, members of religious orders, and retained profits from such sales. For the purpose of computing net earnings Christian Science practiti000rs_Duly or- Certain payments to retired pariners.—ln- from self-employment, if any of the income dained, commissioned, or licensed ministers come received by a retired partner under a from a trade or business including larnrirrg is of churches, members of religious orders written plan of the partnership which provides community income, all the income from such (who have not taken a vow of poverty), and for lifelong periodic retirement payments if trade or business is considered the income of Christian Science practitioners are now sub- the retired partner no longer has any interest the husband. However, if the wife exercises ject to sclf.emplcymc-nt tax, but may under in the partnership (except for the right to the substantially all the management and control certain conditions request to exempt their retirement payments) and did not perform of operation, all of such income is considered income from service as a minister, mrnber services for the partnership during the year. the income of the wife. (See 'Partnerships" or practitioner by filing Form 4361. Forms, Real estate rcntals.—Rentals from real below.) schedules and publications may be obtained estate, except rentals received in the course If separate rcturris are filed, Schedules C from the District Director. If you previously of a trade or business as a real estato dalcr. and SE or Schedules F and SE must be filed an effective waiver certificate Form 2031 This includes cash and crop shares received attached to the return of the one with self. to pay self'ernployment tax, you may not now from a tenant or sharefarmer. Report these emptoymont income. Community income ri- file for an exernpton. See Publication 434, amounts in separate Schedule E, Part II. I-low. chided on such schedules must, houever, be Social Security for Clergymen. ever, rental income from a farm is not allocated for income tax purpoac s on the Ministers and members of religious orders excluded if the rental arrangement provides basis of the community property laws. must include in their earnings from self-em. (or material participation by the landlord and p!ujnient (but not for income tax) the rental he does participate materially in the produc- partnerships Value of a parsonage or allowance for the tion or in the management of the production In computing his combined net eerrins rental value of the parsonage and the value of of one or more farm products on his end. from seif-ompicyment, a partner shuid n. meals and lodging furnished them for the Such income represents farm earninga and elude his entire share of such esrnirr, from a convenience of their employers. should be reported on Schedules F and SE. partnership including any guarrilcnci py. Members of Certain RCliius Faith—lf Payments for the use or occupancy of ments. I-to part cf that share may be aiiocatcd you have conscientious objections to socit rooms or other space where services are also to the partner's wife (or husband) oven though security insurance by virtue of your adherence rcndcred to the occupont, such as rooms in the income may, under State law, be corn- to the cstab!ished teachings of a reco3nized hotels, boarding houses, apartment hous niunity incore. However, in th cnue o: a rcligious sect of which you are a member, you furnishing hotel services, tourist camps or husband arid wife (si-rn partnership, cthcr may file Form 4029 to obtain exemption from homes, or space in parking lots, warehouses, portoerships, the diutributive shr' of etch selfemployment ta. If you have filed Form or storage garages do not constitute rentais must be entered as partnru iricerna in 4029, do not file Schedule SE; however, write, from real estate and are included in determin- separate Schedi;e E. Part Ill for incorire tu< "E:cmpt.Form 4029" on the back of Form ing net earnings from self-employment. purposes, and on Sicfule SE, Part ii. inC i (u) 1040. Dividends and interest—Dividends on for self-employment tax purposc. (epert shares of stock, and interest on bonds, doben- r.onfarm partnership income on Pz.rt Ill, lino U.S citizens employed by foreign govern- 1(c) for social securiy purposes) ments or intomational organizations.—A U.S. totes, notes, certificates, or other evidences citizen employed in thQ United States, Puerto of indebtedness, issued with interest coupons I-f oto.—lf a member of a continuing prt. Rico, (uani, American Samoa, or the Virgin or in registered form by a corporation, or by narship dies, a portion of the dcceasei .art- Islands by a foreign government, an instru. a government or political subdivision thereof, ncr's distributivo share of the parlncrshps mentality wholly owned by a foreign govern. unless received in the course of a trade or ordinary income (or loss) for the taxebl E Sr mont, or an international organization which business as a dealer in stocks or Securities. of the partnership in which I-a died muss h is crgcnized under the International Organiza- Proparty gains and losses.—Gain or loss: included in the partner's net earnings -ari tions Immunities Act, is subject to the social (a) from the sale or exchange of a capital self-employment. Security salt-employment tax. Report income asset; (b) to which sOctions 631 and 1231 are Optional Wctid for com,u1:t :et from such ernploymcr.t on line 1(e), Part Ill, applicable; or (a) from the sale, exchange, in- of this Schsdulo. voluntary conversion, or other disposition of EariThigs Fror,i Farm SeU-Empimymcnt Fee basis State or local government em- property if such property is neither (1) stock If a farmer's gross profits for the year fror, ployees.—Fccs received for functions and in trade or other property of a kind which farming arc not more than 2,4OO ho ;nry re- would properly be includible in inventory if err port two-thirds of his gross profits I c'm f'rm- services performed by employees (including ir.g instead of I-is actual net csrnings from public oiiicers who in such capacity are em hand at the close of the taxable year, nor (2) ployees) are subject to self-employment tax property held primarily for sale to customers farming. If his gross profits from farm self- if such functions and services are performed in the ordinary course of the trade or busi- employment are more than $2.40 and h$ in positions which are: (1) compensated solely ness. Report on separate Schedule 0. actual net earnings from farming are lcs on a fee basis; and (2) not covered under a Net operating ICSSCS.—NO deduction for thar $1,G00, he may report $1,600. Fcr the optional method, a partner should COrrpr;to FecinialSiata social security coverage agree. net operating losses of other years shell be his share cit gross profits from a fare, part- ment. If you fIled Form 4415, write, "Cxcmpt- ollcwenmn determining the net earnings from nership in accordance with tIme p3itnrrsl;ip Form 4415" on the back of Form 1040. self-employment. Such deduction shouid be agrcoment. In the caee of guarentod psy. entered as a "minus" figure on Schedule mcnts, his share of the partnership's gross Exclusions Part Ill, under "Miscellaneous income" profits is his guaranteed payments plea liii Income (or loss) from the following sources More Thnn One Trade or usiness share of the gross profits after srrch gross and deductions attributable thereto are not profits arc raduccd by all guaranteed pay- If arm individual is engaged in farming and ments of the partnership. taken into account in figuring net earnings in one or more other trades or businesses, his from sef.cmployment. Use Part I, line 4 to net earnings from self-employment are the Share-Farming Arrangements exclude any such amounts reported on spa. combined not earnings from salfcmployment Arm individuI who undertakes to produce a rate Schedule C that should not be taken into of all his trades or businec, Thus, the lcss crop or livtock on land belongi;; to snotler account in figuring your self-employment in- sustir.cd in one trade or business will operate for a proportionate share of the crop or lv. come. Any item of income or expense wliicl to reduce the income derived from another stock produced, or the pro:ccds thoruaf. was included in line 2, Part II and which does trade or business. In such cesos, use both considered to be arm independent ccntrac;.r not enter into the computation of net earnings Schedule F and Schedule C to determine net and a self-employed person rather than an from farm self-employment should be elimi. profit from the farm and nonfarm activities, employee. I-{is net earnings should be reported nated from line 2, Part II and an explanation respectively. Make the combined computation on Schedule F for income tax and on Sched.. attached, of self-employment tax on Schedule SE. ule SE for self.employrnent tax purposes. Page 4 *th* U.S GOVERNMDIT PRINtING 'Fl: l56—O-354 -007 52—0*37040 £9 Va94 SCHEDULE I (Form 1040) Departmcnt of the Treasury Ta °' If no entry is made on line 14, line 16, or line 17, keep this for your records fnternal Revenue SIgYICS If entry is made on line 14, line 16, or line 17, attach to form 1040 1 Your adjusted gross income (from line 15c, Form 1040) Note—If your adjusted gross income is less than $5,000 and you choose to take the standard deduction instead of itemizing your deductions, omit lines 2, 3, 4, and 5. Find your tax in the appropriate table (A or B on T—2 or C on T—3). Enter tax on line 6 below. 2 Enter on the line at the right the amount of your deduction figured under One of the following methods: a If you itemize deductions, enter the total from Schedule A, line 17 OR b Figure your standard deduction as follows: (1) Enter 10 percent of line 1 but do not enter more than $1,000 ($500 if married and filing separately) . . I$ Enter the larger of b(1) (2) Enter the sum of: $200 ($100 if or b(2) on the line at the married and filing separately) plus right. If your spouse files $100 for each exemption claimed in a separate return, deter. line 10 of Form 1040, but do not mine your deduction in enter more than $1,000 ($500 if the same manner that married and filing separately) she (he) has. J ij. 3 Subtract the amount on line 2 from the amount on line 1 and enter the balance here 4 Enter number of exemptions claimed on line 10, Form 1040 Multiply this number by $600, and enter th amount here 5 Subtract the amount on line 4 from the amount on line 3 and enter the balance here. This is your taxable income. Figure tax on this amount by using the appropriate Tax Rate Schedule (I, It, or Ill) on T—1.. Enter tax on line 6 below 6 Tax 7 If you claim the retirement income credit, enter amount from Schedule R, line 12, here 8 Subtract line 7 from line 6 urcliage. If line 8 is less than $735, find surcharge from tax surcharge tables on 1—1. If line 8 is re, multiply amount on line 8 by .10 and enter result here 10 Total (Add lines 6 and 9) 11 Retirement income credit from Schedule R, line 17 (attach Schedule R). 12 Investment credit (attach Form 3468) 13 Foreign tax credit (attach Form 1116) 14 Total credits (add lines 11, 12, and 13) 15 Income tax (subtract line 14 from line 10) 16 Self-employment tax (attach Schedule SE) 17 Tax from recomputing prior-year investment credit (attach Form 4255) 18 Total tax (add lines 15, 16, and 17). Enter here and on line 18, Form 1040 (make no entry on line 16 or 17. Form 1040). Attach Sch. Ito Form 1040 only if you ninde an entry on line 14, 16, or 17 above. Income Averaging.—If your income has (b) a joint return, or as a surviving hus- To claim tax-free increased substantially this year, it may band or wife, with taxable income ex- covenant bonds credit, be to your advantage to figure your tax ceeding $52,000, or (c) as a head• of enter the amount of credit above line 14, and write "covenant bonds" to left before surcharge under the "averaging household with taxable income exceeding of the entry. method." Obtain Schedule G from an $38,000. internal Revenue Service office for full details. Line lG—Self.Employment Line 9—Tax Surcharge.—The rate for amount shown on line 9, PartTax.—Enter Ill, Schedule Alternative Tax.—lt will usually be to the calendar year 1969 is 10 percent. SE. your advantage to use the alternative tax tax surcharge is an addition to the regular income tax. See the Tax Sur- Line 17—Tax From Recomputing Prior if your net long-term capital gain exceeds charge Tables on T—1. your net short-term capital loss, or if you Year Investment Credt,—Enter the have a net long-term capital gain only, and the credit taken in a Credit for Foreign Taxes and Tax-Free amount by which exceeds the credit as prior year or years you are filing (a) a separate return with Covenant Bonds.—You may claim these recomputed due to early disposition of taxable income exceeding $26,000, or credits only if you itemize deductions, property. Attach Form 4255. us. ocn,iie—o-se—ceo me —275— O5 10—80500—i 69 095
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