- 15 - * * * * * * * Over $32,450 but not over $78,400 . . . . . . . . $4,867.50, plus 28% of the excess over $32,450. Married individuals who file separate returns or no return suffer tax liability at the higher rate of 31 percent on much the same amount of taxable income under section 1(d). Section 61(a) defines “gross income” as “all income from whatever source derived”, the formulation that Chief Justice Warren said, on behalf of the Supreme Court, in Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955), and General Am. Investors Co. v. Commissioner, 348 U.S. 434 (1955), was all encompassing, and which specifically includes, in paragraph (1), “Compensation for services”. Section 62 defines the intermediate term “adjusted gross income” minus certain defined deductions. Section 63(b) defines “taxable income” for individuals who do not itemize their deductions, as petitioners failed to do on their return document (and rejected the opportunity that we afforded them to rectify their omission), as meaning “adjusted gross income, minus-- (1) the standard deduction, and (2) the deduction for personal exemptions provided in section 151.” The standard deduction for 1992 is defined by section 63(c) as $5,000 in the case of a joint return, and the personal exemption amount for 1992 is $4,600 for two individuals.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011