[Code of Federal Regulations]
 
[Title 26, Volume 1]
 
[Revised as of April 1, 2003]
 
From the U.S. Government Printing Office via GPO Access
 
[CITE: 26CFR1.1-1]
 
 
 
[Page 9-10]
 
 
 
 TITLE 26--INTERNAL REVENUE
 
 
 
 CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
 
 
PART 1--INCOME TAXES--Table of Contents
 
 
 
Sec. 1.1-1 Income tax on individuals.
 
 
 
 (a) General rule. (1) Section 1 of the Code imposes an income tax on 
 
the income of every individual who is a citizen or resident of the 
 
United States and, to the extent provided by section 871(b) or 877(b), 
 
on the income of a nonresident alien individual. For optional tax in the 
 
case of taxpayers with adjusted gross income of less than $10,000 (less 
 
than $5,000 for taxable years beginning before January 1, 1970) see 
 
section 3. The tax imposed is upon taxable income (determined by 
 
subtracting the allowable deductions from gross income). The tax is 
 
determined in accordance with the table contained in section 1. See 
 
subparagraph (2) of this paragraph for reference guides to the 
 
appropriate table for taxable years beginning on or after January 1, 
 
1964, and before January 1, 1965, taxable years beginning after December 
 
31, 1964, and before January 1, 1971, and taxable years beginning after 
 
December 31, 1970. In certain cases credits are allowed against the 
 
amount of the tax. See part IV (section 31 and following), subchapter A, 
 
chapter 1 of the Code. In general, the tax is payable upon the basis of 
 
returns rendered by persons liable therefor (subchapter A (sections 6001 
 
and following), chapter 61 of the Code) or at the source of the income 
 
by withholding. For the computation of tax in the case of a joint return 
 
of a husband and wife, or a return of a surviving spouse, for taxable 
 
years beginning before January 1, 1971, see section 2. The computation 
 
of tax in such a case for taxable years beginning after December 31, 
 
1970, is determined in accordance with the table contained in section 
 
1(a) as amended by the Tax Reform Act of 1969. For other rates of tax on 
 
individuals, see section 5(a). For the imposition of an additional tax 
 
for the calendar years 1968, 1969, and 1970, see section 51(a).
 
 (2)(i) For taxable years beginning on or after January 1, 1964, the 
 
tax imposed upon a single individual, a head of a household, a married 
 
individual filing a separate return, and estates and trusts is the tax 
 
imposed by section 1 determined in accordance with the appropriate table 
 
contained in the following subsection of section 1:
 
 
 
----------------------------------------------------------------------------------------------------------------
 
 Taxable years beginning
 
 after Dec. 31, 1970
 
 Taxable years beginning Taxable years beginning (references in this
 
  in 1964 after 1964 but before column are to the Code
 
 1971 as amended by the Tax
 
  Reform Act of 1969)
 
----------------------------------------------------------------------------------------------------------------
 
Single individual.................... Sec. 1(a)(1)........... Sec. 1(a)(2)........... Sec. 1(c).
 
Head of a household.................. Sec. 1(b)(1)........... Sec. 1(b)(2)........... Sec. 1(b).
 
Married individual filing a separate Sec. 1(a)(1)........... Sec. 1(a)(2)........... Sec. 1(d).
 
 return.
 
Estates and trusts................... Sec. 1(a)(1)........... Sec. 1(a)(2)........... Sec. 1(d).
 
----------------------------------------------------------------------------------------------------------------
 
 
 
 (ii) For taxable years beginning after December 31, 1970, the tax 
 
imposed by section 1(d), as amended by the Tax Reform Act of 1969, shall 
 
apply to the income effectively connected with the conduct of a trade or 
 
business in the United States by a married alien individual who is a 
 
nonresident of the United States for all or part of the taxable year or 
 
by a foreign estate or trust. For such years the tax imposed by section 
 
1(c), as amended by such Act, shall apply to the income effectively 
 
connected with the conduct of a trade or business in the United States 
 
by an unmarried alien individual (other than a surviving spouse) who is 
 
a nonresident of the United States for all or part of the taxable year. 
 
See paragraph (b)(2) of Sec. 1.871-8.
 
 (3) The income tax imposed by section 1 upon any amount of taxable 
 
income is computed by adding to the income tax for the bracket in which 
 
that amount falls in the appropriate table in section 1 the income tax 
 
upon the excess of that amount over the bottom of the bracket at the 
 
rate indicated in such table.
 
 (4) The provisions of section 1 of the Code, as amended by the Tax 
 
Reform Act of 1969, and of this paragraph may
 
 
 
[[Page 10]]
 
 
 
be illustrated by the following examples:
 
 
 
 Example 1. A, an unmarried individual, had taxable income for the 
 
calendar year 1964 of $15,750. Accordingly, the tax upon such taxable 
 
income would be $4,507.50, computed as follows from the table in section 
 
1(a)(1):
 
 
 
Tax on $14,000 (from table)................................. $3,790.00
 
Tax on $1,750 (at 41 percent as determined from the table).. 717.50
 
 -----------
 
 Total tax on $15,750.................................... 4,507.50
 
 
 
 
 
 Example 2. Assume the same facts as in example (1), except the 
 
figures are for the calendar year 1965. The tax upon such taxable income 
 
would be $4,232.50, computed as follows from the table in section 
 
1(a)(2):
 
 
 
Tax on $14,000 (from table)................................. $3,550.00
 
Tax on $1,750 (at 39 percent as determined from the table)..  682.50
 
 -----------
 
 Total tax on $15,750.................................... 4,232.50
 
 
 
 
 
 Example 3. Assume the same facts as in example (1), except the 
 
figures are for the calendar year 1971. The tax upon such taxable income 
 
would be $3,752.50, computed as follows from the table in section 1(c), 
 
as amended:
 
 
 
Tax on $14,000 (from table)................................. $3,210.00
 
Tax on $1,750 (at 31 percent as determined from the table).. 542.50
 
 -----------
 
 Total tax on $15,750.................................... 3,752.50
 
 
 
 
 
 (b) Citizens or residents of the United States liable to tax. In 
 
general, all citizens of the United States, wherever resident, and all 
 
resident alien individuals are liable to the income taxes imposed by the 
 
Code whether the income is received from sources within or without the 
 
United States. Pursuant to section 876, a nonresident alien individual 
 
who is a bona fide resident of Puerto Rico during the entire taxable 
 
year is, except as provided in section 933 with respect to Puerto Rican 
 
source income, subject to taxation in the same manner as a resident 
 
alien individual. As to tax on nonresident alien individuals, see 
 
sections 871 and 877.
 
 
 
 (c) Who is a citizen. Every person born or naturalized in the United 
 
States and subject to its jurisdiction is a citizen. For other rules 
 
governing the acquisition of citizenship, see chapters 1 and 2 of title 
 
III of the Immigration and Nationality Act (8 U.S.C. 1401-1459). For 
 
rules governing loss of citizenship, see sections 349 to 357, inclusive, 
 
of such Act (8 U.S.C. 1481-1489), Schneider v. Rusk, (1964) 377 U.S. 
 
163, and Rev. Rul. 70-506, C.B. 1970-2, 1. For rules pertaining to 
 
persons who are nationals but not citizens at birth, e.g., a person born 
 
in American Samoa, see section 308 of such Act (8 U.S.C. 1408). For 
 
special rules applicable to certain expatriates who have lost 
 
citizenship with a principal purpose of avoiding certain taxes, see 
 
section 877. A foreigner who has filed his declaration of intention of 
 
becoming a citizen but who has not yet been admitted to citizenship by a 
 
final order of a naturalization court is an alien.
 
 
 
 
 
[T.D. 6500, 25 FR 11402, Nov. 26, 1960, as amended by T.D. 7332, 39 FR 
 
44216, Dec. 23, 1974]