OTHER STATISTICS OF INCOME PUBLICATIONS

FOR 1955 Corporations Preliminary Statistics of Income — 1955, Corporation Income Tax Returns for Tax Years Ended July 1955-June 1956

Income statements, balance sheets, tax, dividends paid; classified by major industry groups. Historical summary of total compiled receipts, profit or loss, taxes, dividends paid by net Income status, 1951-55. (To be published in the spring of 1958.)

Statistics of Income — 1955, Corporation Income Tax Returns for Tax Years Ended July 1955-June 1956

Income statements, balance sheets, dividends paid, tax, tax credit. Classi- fications by industry groups, size of net income, size of total assets, ac- coxinting periods, and cross classifications by size of net income and size of total assets. Special tables on beginning and ending inventories, re- turns with foreign tax credits, and Western Hemisphere trade corporations. Historical summary 194-6-55. (To be published in the summer of 1958.)

FOR 1954

Individuals Statistics of Income — 1954, Individual Income Tax Returns

Adjusted gross income, taxable income, income and self -employment tax lia- bility, sources of income, exemptions, tax credits, itemized nonbusiness deductions; classified by size of adjusted gross income. Taxable income by taxable income size for applicable tax rates . Selected soxirces of income by States and Territories. Historical summary 19-^5-54. (132 pp., 750)

Corporations Statist ics of Income — 1954, Corporation Income Tax Returns for Tax Years Ended July 1954-June 1955

Income statements, balance sheets, dividends paid, taxes, tax credit. Clas- sifications by industry groups, size of net income, size of total assets, accoxinting periods, accoxinting and inventory valuation methods. Special tables on beginning and ending inventories of manufacturing and trade cor- porations, cash dividends paid, corporations filing first returns, returns with foreign tax credits, Western Hemisphere trade corporations, personal holding companies. Historical summary 19A5-5<i. (226 pp., $1.25)

Fiduciaries Statistics of Income — 1954, Fiduciary Income Tax Returns

Total income, taxable income, income tax, soxirces of income, deductions, exemptions; classified by size of total income. Selected sources of income by States and Territories . Taxable income and income tax by size of taxable income. (56 pp., 4^0#)

Estates Statistics of Income — 1954, Estate Tax Returns

Gross estate, deductions, net estate, taxes, and tax credits. Classifica- tions by size of gross estate, size of net estate before specific exemption. Selected estate tax data by States and Territories. (26 pp., 25^)

FOR 1953 (Subjects not included for 1955 or 1954) Partnerships Statistics of Income — 1953, Partnership Returns

Partnership receipts, deductions, profit and loss, assets, liabilities. Classifications by industry groups, size of ordinary net income or deficit, size of total receipts. Frequency of retiims by year of organization, new or successor business. Self -employment income and family partnership data. (62 pp., A5#)

Gifts Statistics of Income for 1953, Part 1, Individual Income Tax Returns, Estate

Tax Returns, Gift Tax Returns

Total gifts, exclusions, deductions, net gifts, tax. Classifications by size of net gifts, size of total gifts plus gift tax, tax status, type of property. (138 pp., 75 #)

Farmers' Statistics of Income — 1953, Farmers' Cooperative Income Tax Returns

cooperatives Receipts, deductions, net income or deficit, tax, assets, liabilities, special deductions and adjustments. Classifications by size of business receipts, size of total assets, net income status. States and Territories, type of service performed, exemption status. (42 pp., 40^)

statistics o( Income publications are for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. IV

CONTENTS

INDIVIDUAL INCOME TAX RETURNS FOR 1955

Page

Comparison of data — Income years 1955 and 1954 3

Sources of adjusted gross income 3

Sole proprietorships 4

Marital status of the taxpayer and personal exemptions 4

Excludable sick pay '+

Dividends received 5_

Retirement income 5

Sources of data and methods of estimation 6

Returns from which the data were tabulated 6

Description of the sample and limitations of the data 8

Explanation of classifications and terms 10

Classifications of returns 10

Sources comprising adjusted gross income 12

Exemptions 13

Measures of individual income 1"+

Tax items 14

Basic tables, 1955:

1. Number of returns, adjusted gross income, taxable income,

and income tax, by adjusted gross income classes and classes cumulated 18

2. Sources of income and loss, by returns with standard or

itemized deductions 19

3. Sources of income and loss and total nonbusiness deductions,

by adjusted gross income classes 20

<+. Sources of income and loss, exemptions, and tax items — all returns, joint returns, and returns of single persons not head of household or surviving spouse, by adjusted gross income classes 21

5. Returns with itemized deductions — adjusted gross income,

total nonbusiness deductions, exemptions, and tax items,

by adjusted gross income classes 33

6. Patterns of income by adjusted gross income classes 34

7. Taxable income, tax credits, and income tax, by taxable

income classes for applicable tax rates 35

8. Adjusted gross income, taxable income, income tax, average

tax, and effective tax rate, by types of income tax and

by adjusted gross income classes 37

9. Adjusted gross income, exemptions, taxable income, and in-

come tax, by marital status of taxpayer, by returns with standard or itemized deductions, and by adjusted gross income classes 38

10. Exemptions by marital status of taxpayer and by adjusted

gross income classes 44-

11. Capital gains and losses, short- and long-term, and capital

loss carryover, by adjusted gross income classes.....'... 48

12. Selected sources of income, adjusted gross income, and in-

come tax, by States and Territories 50

13. Adjusted gross income and income tax, by States and

Territories and by adjusted gross income classes 51

14. Returns with self -employment tax — adjusted gross income and

self-employment tax, by adjusted gross income classes ... 55

15 . Returns with self -employment tax — adjusted gross income and

self -employment tax, by States and Territories 56

16 . Sole proprietorships by industrial groups 57

17. Sole proprietorships by size of total receipts and specified

industrial groups 58

18. Sole proprietorships by States and Territories 60

VI CONTENTS

Historical tables, 194-6-55: Page

19. Number of returns by major characteristics, adjusted gross

Income and deficit, and tax 62

20. Returns with income tax — number, adjusted gross income,

income tax, and average tax, by adjusted gross income

classes 63

21 . Sources of income by type 6^

22. Selected sources of income by adjusted gross Income classes. 65

23. Itemized deductions by type 67

24. Returns with adjusted gross income — niimber, adjusted gross

income, and income tax, by States and Territories 68

SYNOPSIS OF TAX LAWS

Income tax :

A. Requirement for filing retxirn and exemptions 73

B . Income tax rates 74

Self-employment tax :

C . Requirement for filing return and tax rate 75

FACSIMILES OF TAX RETURNS, 1955

Form 1040, Individual Income Tax Return 79

Form 1040A, Individual Income Tax Return HI

INDEX Alphabetical index 115

Individual

Income Tax

Returns

INDIVIDUAL INCOME TAX RETURNS FOR 1955

Data included in this report were compiled from a sample of all individual' income tax returns filed for the income year 1955 . The total number of re- turns filed for that year is estimated as 58,250,188.

The provisions of the internal revenue laws relat- ing to the individual income tax for 1955 were sub- stantially the same as those set forth in the Internal Revenue Code for 1954-. The few amendments which were enacted for 1955 had a relatively minor effect on the data included in this report .

COMPARISON OF DATA — INCOME YEARS 1955 AND 1954

Income statistics compiled from data reported on these returns are shown in detail in the tables presented in subsequent parts of this report. In table A below, the number of returns, income, def- icit, and tax reported for 1955 and 1954 are com- pared .

TablB A.— NUMBER OP RETURNS, INC»ME, DEFICIT, AND TAX: 1955 AND 1964

Items	1955	1954	Increase or decrease
Number or amount	Percent
All returns:	58,250,188 249.429,182 128,020,111 898,365 44,689,065 229,595,449 127,889,249 29,613,722 13,561,123 13,129,099 19,833,733 130,862 432,024 898,865	56,747,008 230,235,855 115,331,301 1,014,480 42,633,060 209,668,830 115,226,743 26,665,753 14,113,943 13,673,644 20,567,025 104,558 440,304 1,014,480	1,50J,180 19,193,327 12,688,810 -115,615 2,056,005 19,926,619 12,662,506 2,947,969 -552,325 -544,545 -733,292 26,304 -3,280 -115,615	+;.6 +8.3 +11.0 -11.4 +4.8 +9.5 +11.0 +11.1
Adjusted gross income thousand dollars.. Taxable income.... thousand dollars.. Adjusted gross deficit thousand dollars.. Taxable returns:
Adjusted gross income thousand dollars.. Taxable incame.... thousand dollars.. Income tax thousand dollars.. Nontaxable returns:
With adjusted gross income:
Adjusted gross income thousand dollars.. Taxable income. .thousand dollars.. With no adjusted gross income:	-3.6 +25..'
Adjusted gross deficit thousand dollars..	-11.4

Adjusted gross income totalled $249. <+ billion on 57.8 million tax returns filed for 1955. An adjusted gross deficit, reported on over 400 thousand returns reached nearly $900 million and resulted in a net amount of adjusted gross income for the year of $248.5 billion, or $19.3 billion more than for 1954.

Taxable income, the tax base under the 1954 Code, rose to $128 billion to exceed the 1954 reported amount by nearly $12.7 billion. Taxable income was not stated by taxpayers with less than $5,000 ad- justed gross income who used the tax table for cal- endar year 1955 (see facsimile on page 98) to de- termine their tax. It was mechanically computed by the Internal Revenue Service for inclusion in the tables of this report. Income tax figures displayed in the tax table relate to size of adjusted gross income rather than to size of taxable income.

The amount of income tax after credits reported on these returns climbed above $29.6 billion, to exceed the 1954 total by more than $2.9 billion. Taxable returns filed for 1955 numbered 4-4.7 mil- lion, an increase of over 2 million from the pre- vious year. Counter to the overall rise of more than 1.5 million returns filed for 1955, nontaxa- ble returns decreased in number by over 0.5 million.

SOURCES OF ADJUSTED GROSS INCOME

Income received in the form of salaries and wages was the most important source of adjusted gross in- come, accounting for $200.7 billion of the $248.5 billion total reported for 1955. Salaries and wages reported for the year exceeded the amount reported for 1954 by nearly $15 billion, and was reported as a source of income on 1.3 million more returns than in 1954. The amount of salaries and wages entering into the computation of adjusted gross income is exclusive of wages received under applicable wage continuation plans for sickness or injury. Table B shows the amount of salaries and wages excluded from gross income because of the excludable sick pay pro- vision of the Code. A further discussion of this feature of the law may be found on page 4, \inder Excludable Sick Pay.

Dividends received from corporate stock and in- cluded in adjusted gross income reported on Form 1040 for 1955, totalled $7.9 billion. This amount was after the exclusion of $2-49.4 million of divi- dends that qualified for the dividend exclusion under the Internal Revenue Code of 1954. A more detailed

Chart l-SOURCES OF ADJUSTED GRDSS INCOME. 1955

^ Wages Old salaries

:^ Combined nef profit and nmf loss from business of profession

Combin%d nef pnfit and nef (oss from partnership

^ Combined ner gain and nef toss from sole of cc^itol assets 4.8

Combined nef irtcoitt* and nef los$ from rentt ond royotlie 3.1

Billions of dolloi

INDIVIDUAL INCOME TAX RETURNS FOR 1955

summary of the dividend exclusions claimed for 1955 is contained in the section headed "Dividends Received" on page 5. In all, dividends included in adjusted gross income for 1955 surpassed those re- ported for 195/h by $800 million. Dividends after exclusion were reported on over 3.7 million returns for 1955.

Interest reported for 1955 approached 2.6 billion, up more than $213 million from the prior year. Over 6.3 million returns exhibited income derived from this source, more than 206 thousand beyond the num- ber on which such income was reported for 195-+.

Combined net profit and net loss from business or profession exceeded $18. A- billion, a rise of $1.5 billion over that reported for 195<i. Income from this source is distributed in table 16 by industrial groups, in table 18 by States and Territories, and in table 17, for specific industrial groups, by size of total receipts classes.

Combined net profit and net loss from partnerships reported for 1955 exceeded $9 billion, $0.5 billion above the amount reported for 1954- .

Of the remaining sources of adjusted gross income for 1955, the combined net gain and net loss from the sale of capital assets totalled $4.8 billion; combined net income and net loss from rents and royalties, $3.1 billion; and Income received from sources other than those already mentioned, $2 bil- lion.

SOLE PROPRIETORSHIPS

Statistics concerning the business or professional income of persons operating a solely owned business show that there were 8.2 million different businesses operated by individuals as sole proprietors for which total receipts amounting to $138.8 billion were re- ported. The majority of these businesses, 6.6 mil- lion, were operated at a profit which totalled $20.0 billion. This represents a profit of 16 percent on total receipts of $125.2 billion.

The 1.6 million businesses with net loss show total receipts of $13.6 billion and net loss of $2.4 billion.

A brief res\ime' of the sole proprietorship opera- tions shows :

Businesses Businesses Ite* Total with net tin th net

profi t loss

Number of businesses... 8,239,328 6,617,564 1,621,764

(Thousand dollars)

Total receipts 138,840,548 125,212,358 13,628,190

Net profit 19,998,669 19,998,669

Net loss 2,410,493 2.410,493

MARITAL STATUS OF THE TAXPAYER AND PERSONAL EXEMPTIONS

Of the 58.3 million individual income tax returns! filed for 1955, 35.6 million, or 61 percent, were j joint returns of husbands and wives. Over 2.1 mil- lion, or 3.6 percent, were filed by married persons who chose to file a separate return from that of the other spouse.

Single persons who did not claim status as head of household or surviving spouse filed 19.4 million, or 33 percent, of all returns. The remaining re- turns were filed by nearly 1 million taxpayers who claimed head of household status and 125 thousand other taxpayers who claimed status as a surviving spouse.

Nearly 161 million exemptions were claimed on all returns for 1955. Of this total almost 129 million exemptions were on joint returns, and over 26 mil- lion were claimed on returns of single persons who did not qualify as head of household or surviving spouse. These personal exemptions were exemptions for the taxpayer, and on joint returns, his spouse, exemptions for dependents, and the additional exemp- tions for age and blindness .

Table B below, shows the number of returns, ad- justed gross income and deficit, and number of ex- emptions, by marital status of the taxpayer. The classification of marital status was determined on the basis of the name of the taxpayer, the exemp- tion claimed for the taxpayer and/or wife, signa- tures on the return, and the check mark made by taxpayers who claimed status as head of household or siirviving spouse. Each of the classifications for marital status of the taxpayer is described un- der Marital Status Classification on page 10.

EXCLUDABLE SICK PAY

The 1954 Code excludes from gross income amounts received as wages, and amounts received under a wage continuation plan, for the period during which an employee was absent from work because of personal injury or sickness. Excludable sick pay could not exceed a weekly rate of $100, unless the plan was one to which the employee had contributed — then' amounts received, attributable to his contribution, were excluded without limit. In the event of sick- ness, payments for the loss of wages for the first seven calendar days of absence could not be excluded from gross income unless the employee was hospital- ized at least one day during the period of absence.

Table B.— NUMBER IIP RETURNS. NUMBER OF EXEMPTIONS, AND iDJUSTED GRdSS INCOME AND DEFICIT, BV MVRITAL ST\TUS OF TVXP^YER

Marital status

All returns	Number of	Returns wi gross	th adjusted income	Returns with no adjusted gross income
			Adjusted			Adjusted
Number	Percent 3f total	exemptions	Number of returns	income (Thousand dollars)		Number of returns	def l.jit (Thousand dollsrii
11	(2)	(3)	(4)	(5)	(b)	(7)
35,599,993	61.1	128,803,506	35,297,444	193,623,842		302,549	710,67!
2,120,575	3.6	3,446,187	2,111,130	6,185,030		9,445
954,38*	1.6	2,096,112	953,268	4,385,670	}	2,232
125,597	0.2	288,934	124,481	454,497
19,449,639	33.4	26,202,334	19,331,841	44,730,143		117,798
58,250,188	100.0	160,837,073	57,818,164	249,429,182		432,02,	8^8,86:

Joint returns of husbands and wives

Separate returns of husbands and wives ■

Returns of heads of household

Returns of surviving spouse

Returns of single persons not head of household or surviving spouse.

Total

INDIVIDUAL INCOME TAX RETURNS FOR 1955

Each taxpayer was required to report his gross

lary and wages, and one who claimed excludable

ck pay was further required to provide sufficient

iformation to substantiate his claim. Such exclu-

on could be claimed only on Form 1540.

Table C below, shows that there were over 1.2 mil-

on returns on which excludable sick pay amounting

$<+4/- million was deducted from gross salaries

.d wages. The exclusion approximated two-tenths

1 percent of gross salaries and wages. Over one-

If of excludable sick pay was reported on returns

t th adjusted gross income under $5,000.

|Ue C— TOTAL SVLARIF.S AND 'VVGES, EXri. AFTER EXCLl'DiBLF, SICK PAV,

I'DABLF, SICK PAV, \ND S\LMIIES \ND WAflES BV ADJISTED GROSS LNCOME CUSSES

m\ 1 1- 1				Salaries	and wages
	Total	Excludable	sick pay	(after excludable
		salaries and wages			sick	pay)

			Number of		Number of
		(Thoua^d		(Thousand		(Thousand
						dollars!
	(1)	(2)	(3)	(4)	(5)

1 500 under $1,000	1,102,555	4,521	1,373	1,335,777	1,101,182
: 1,000 under $1,500	2,825,700	9,390	1,852	2,298,765	2,823,848
1 1,500 under $2,000	3,780,8i5	20,893	6,920	2,216,585	3,773,925
■"" Ja.OOO under $2,500	5,870,700	38,292	12,768	2,674,991	5,857,932
12,500 under $3,000	8,133,685	63,054	22,221	3,038,793	8,161,464
f 3,000 under $3,500	10,701,753	74,102	26,946	3,381,200	10,674,807
3,500 under $-,000	13,263,528	93,041	34,470	3,622,720	13,229,058
.,000 under $-,500	15,2-0,856	104,928	35,773	3,683,972	15,205,083
; .,500 under $5,000	16,157,501	105,623	34,891	3,495,254	16,122,610
i,000 under $6,000	29,051,609	181,934	55,694	5,474,555	28,995,915
	1,000 under $7,000	22,753,102	151,694	47,874	3,655,24i	22,705,228
	',000 under $8,000	15,925,070	102,177	31,437	2,228,567	15,893,633
	1,000 under $9,000	10,287, 05i	62,916	20,317	1,289,688	10,266,737
	>,000 under $10,000	7,107,731	47,619	15,703	811,795	7,092,028
	.0,000 under $15,000	12,33i,291	63,791	29,075	. 1,221,012	12,305,216
	5,000 under $20,000	3,661,i82	12,653	8,206	288,846	3,653,276
	0,000 under $25,000	l,950,04i	5,868	3,852	132,888	1,946,192
	5,000 under $30,000	1,288,287	3,355	2,397	74,454	1,285,890
	0,000 under $50,000	2,631,392	4,198	3,602	119,610	2,627,790
	0,000 under $100,000	1,682,789	2,527	2,201	52,212	1,680,588
	00,000 under $150,000...	402,910	403	355	9,071	402,555
	50,000 under $200,000...	142,435	146	125	2,763	142,310
00,000 under $500,000...	167, 572	134	129	2,880	167,443
00,000 under $1,000,000.	31,409	17	19	428	31,390
,000,000 or more	7,773	9	7	189	7,766
	Total taxable returns... axable returns:	186,552,073	1,153,285	398,207	41,112,289	186,153,866

	adjusted gross income..	U3,263	1,081	1,630	94,618	131,633
=a)i	ier $600	1,082,790	9,061	8,521	3,261,454	1,074,269
:5«	30 under $1,000	873 564	6 608	4 329	1 177 006	869 235
,000 under $1,500	1,562,046	7,999	6,941	1,352,468	1,555,105
r:s.	,500 under $2,000	1,922,771	10,lCk.	8,419	1,179,967	1,914,352
	,000 under $2,500	1,7«,249	3,738	6,470	845,400	1,745,779
tffSI
	,500 under $3,000	2,007,439	o,626	3,377	795,563	2,003,562
■B.:i	.000 under $3,50(3	1,705,799	4,154	1,486	562,395	1,704,313
.	,500 under $4,000	1,473,542	5,572	2,315	414,482	1,471,227
:^^	.000 under $i,500	869,361	3,853	947	212,518	868,414
-i ••	.500 under $5,000	592,982	1,739	434	131,150	592,548
		627,983	1,431	181	116,391
Total nontaxable returns Grand total Tis under $5,000
14,603,789	66,966	45,550	10,143,412	14,558,239
201,155,862	1,220,251	443,757	51,255,701	2130,712,105
91,102,929	579,379	222,583	35,775,078	90,880,346
d:.'«	•ns $5,000 or more	110,052,933	640,872	221,174	15,480,623	109,831,759

' text for "Explanation of Classifications and Terms" and "Description of Sample .imitations of Data."

DIVIDENDS RECEIVED

'able D below, shows details on dividends reported -01 individual income tax returns, Form 104-0, includ-

i ; the amounts of dividends received, dividend ex- isions, and tax credit for dividends received, 'he Internal Revenue Code of 1954- provides for an lusion from gross income of the first $50of divi-

dlid income received by an individual from taxable •d lestic corporations. The exclusion also applied dividends received from fiduciaries and partner- ps . If the taxpayer received less than $50 of

alih income, the exclusion equalled the amount of

dividend income received. On a joint return the ex- clusion was applicable to each spouse receiving divi- dend income. Therefore, if both the husband and wife received dividends eligible for exclusion of $50 or more, the total dividend exclusion was $100.

These dividends received from taxable domestic corporations, reduced by the applicable exclusions, were also eligible for a tax credit for dividends received. The credit was equal to <+ percent of the amount of taxable dividends received, but limited to 4 percent of taxable income.

Dividends received from foreign and certain domes- tic corporations did not qualify for the exclusion nor for the tax credit . These were reported sepa- rately and combined with the dividends received from qualifying domestic corporations to obtain the amount of dividends reported in adjusted gross income.

The data pertaining to dividends were derived solely from Form 1040. On Form 1040A, the amount of dividends after the exclusion was reported as "Other income" and the amount of the exclusion was not re- ported .

Data in table D reveal that the total dividend receipts reported for the taxable year 1955 was $8.1 billion, of which $7.9 billion were eligible for the exclusion. Of this amount over $249 million were excluded from gross income. Receipt of dividends was reported on 4.5 million returns, but only 3.7 million returns showed dividends in adjusted gross income .

Of the $7.9 billion of dividends eligible for the exclusion, $7.6 billion were also eligible for the tax credit. Although 3.3 million returns showed dividends eligible for a tax credit, a credit of $260 million was claimed on only 2.6 million of these returns. In some cases, small dividend receipts may have been eliminated by the applicable exclusion. Returns without an income tax before credits natu- rally had no credit . On other returns where the taxpayer had taxable income and income tax,he failed to take advantage of the credit benefit even though he was entitled to do so .

RETIREMENT INCOME

The provisions of the Code relating to retirement income allowed an individual a credit against the income tax for retirement income, if certain condi- tions were met. To qualify for the credit, an indi- vidual must have received earned income in excess of $600 in each of 10 calendar years (not necessarily consecutive) before the beginning of the taxable year. Widows and widowers whose spouse had received such prior earnings were also qualified to claim this credit. If both the husband and wife qualified and had retirement income, each was entitled to the credit as individixals, even though a joint return was filed.

Different rules applied to people under 65, and people 65 years of age or over in computing the re- tirement income credit . If the person were under 65, retirement income included only pensions and an- nuities, included in gross income, which were re- ceived under a public retirement system. Retirement income of persons 65 or over included income from pensions and annuities, and interest, rent, and divi- dends to the extent included in gross income.

INDIVIDUAL INCOME TAX RETURNS FOR 1955

sioiranary of the dividend exclusions claimed for 1955 is contained in the section headed "Dividends Received" on page 5. In all, dividends included in adjusted gross income for 1955 surpassed those re- ported for 1954- by $800 million. Dividends after exclusion were reported on over 3.7 million returns for 1955.

Combined net profit and net loss from business or profession exceeded $18. "4 billion, a rise of $1.5 billion over that reported for 1954-. Income from this source is distributed in table 16 by industrial groups, in table 18 by States and Territories, and in table 17, for specific industrial groups, by size of total receipts classes.

Combined net profit and net loss from partnerships reported for 1955 exceeded $9 billion, $0.5 billion above the amount reported for 195<+.

Of the remaining sources of adjusted gross income for 1955, the combined net gain and net loss from the sale of capital assets totalled $■4.8 billion; combined net income and net loss from rents and royalties, $3.1 billion; and income received from sources other than those already mentioned, $2 bil- lion.

SOLE PROPRIETORSHIPS

The 1.6 million businesses with net loss show total receipts of $13.6 billion and net loss of $2.4- billion.

A brief resume' of the sole proprietorship opera- tions shows :

Businesses Businesses Item Total with net with net

profi t loss

Number Of businesses... 8,239,328 6,617,564 1,621,764

(Thousand dollars J

Total receipts 138,640,548 125,212,358 13,628,190

Net profit 19,998,669 19,998,669

Net loss 2,410,493 2,410,493

MARITAL STATUS OF THE TAXPAYER AND PERSONAL EXEMPTIONS

Of the 58.3 million individual income tax retpns filed for 1955, 35.6 million, or 61 percent, joint returns of husbands and wives. Over 2.1 ll- lion, or 3.6 percent, were filed by married perms who chose to file a separate return from that of ;he other spouse.

Single persons who did not claim status as fead of household or surviving spouse filed 19 .<4 mill m, or 33 percent, of all returns. The remaining 'e turns were filed by nearly 1 million taxpayers »ho claimed head of household status and 125 thoi; md other taxpayers who claimed status as a survi Lng spouse .

Nearly 161 million exemptions were claimed orbll returns for 1955. Of this total almost 129 mi] Lon exemptions were on joint returns, and over 26 LI lion were claimed on returns of single persons vho did not qualify as head of household or survj .ng spouse . These personal exemptions were exempi ms for the taxpayer, and on joint returns, his spc St; exemptions for dependents, and the additional ejh;:'- tions for age and blindness .

Table B below, shows the number of returns justed gross income and deficit, and number o; emptions, by marital status of the taxpayer, classification of marital status was determin'

the basis of the name of the taxpayer, the e; tion claimed for the taxpayer and/or wife, s: tures on the return, and the check mark ma( taxpayers who claimed status as head of hous^ or surviving spouse. Each of the classifica' for marital status of the taxpayer is describe( der Marital Status Classification on page 10.

EXCLUDABLE SICK PAY

The 195-4 Code excludes from gross income ami received as wages, and amounts received under a continuation plan, for the period during whii employee was absent from work because of per; injury or sickness . Excludable sick pay couli exceed a weekly rate of $100, unless the pla; one to which the employee had contributed— amounts received, attributable to his contribu were excluded without limit. In the event of . ness, payments for the loss of wages for the seven calendar days of absence could not be exc from gross income unless the employee was hosp: ized at least one day during the period of abs^

id- ex- rhe on np- na-

t>y

Did Dns un-

T«ble B.— NUMBER OF RETIIRNS. NUMBER OF FAEMPTION5, AND \DJUSTEO GROSS INCOME AND DEFICIT, BV NURITAL STATUS OF TA\P\YER

age an nal not was hen on, ci:-

TSZ

ded

ai-

Ce .

Marital status

All returns

Percent Df total

Number of exemptions

Reluj'ns with adjusted gross income

Number of returns

Adjusted gross inoorae

( Thousand dollara)

Returns wit adjusted gross

Number of

returns

(2)

(1)

(5)

(6)

Joint returns of husbands and wives

Separate returns of husbands and wives ,

Returns of heads of household

Returns of surviving spouse

Returns of single persons not head of household or surviving spouse.

Total

35,599,993

2,120,575

954, 38i

125,597 19,449,639

61.1 3.6 1.6 0.2

33.4

128,803,506

3,446,187

2,096,112

288,934

26,202,334

35,297,444

2,111,130

953,268

124,481

19,331,841

193,623,842

6,185,030

4,385,670

454,497

44,780,143

302,549 9,445 2,232

117,798

58,.:'50,188

100.0

160,837,073

57,818,164

249,429,182

432,024

INDIVIDUAL INCOME TAX RETURNS FOR 1955

Each taxpayer was required to report his gross salary and wages, and one who claimed excludable sick pay was further required to provide siifficient information to substantiate his claim. Such exclu- sion could be claimed only on Form ICKO.

Table C below, shows that there were over 1.2 mil- lion returns on which excludable sick pay amounting to ^W* million was deducted from gross salaries and wages. The exclusion approximated two-tenths of 1 percent of gross salaries and wages. Over one- half of excludable sick pay was reported on returns with adjusted gross income \inder $5,000.

T.blc. C.-TOTAL SALARIES AND IVIGES. EXCLUDABLE SICK PAV, AND SiLAKIES AND WV(7ES AFTER F.XCLI'DIBLE SICK PAV. BY ADJIISTED GROSS LNCOME CUSSES

				Salaries	and wages
		Excludable	sick pay	(after excludable
Adjusted gross income classes	salaries and wages			sick	pay)
Number of	Amount		AiTount
	( Thousand		( Thousand		(Thousand
			dollars)		dollars)
Taxable returns;	(1)	(2)	(3)	(4)	(5)
	4,521 9,390	1,373 1,852	1,335,777 2,298,765	1,101,182 2,823,848
♦1,000 under $1,500	2,825,700
$1,500 under $2,000	3,780,845	20,893	6,920	2,216,585	3,773,925
$2,000 under $2,500	5,870,700	38,292	12,768	2,674,991	5,857,932
$2,500 under $3,000	8,183,685	63,054	22,221	3,038,793	8,161,464
$3,000 under $3,500	10,701,753	74,102	26,946	3,381,200	10,674,807
$3,500 under $-,000	13,263,528	93,041	34,470	3,622,720	13,229,058
$4,000 under $i,500	15,2';0,856	104,928	35,773	3,683,972	15,205,083
$4,500 under $5,000	16,157,501	105,623	34,891	3,495,254	16,122,610
$5,000 under $6,000	29,051,609	181,934	55,694	5,474,555	28,995,915
$6,000 under $7,000	22,753,102	151,694	47,874	3,655,244	22,705,228
$7,000 under $8,000	15,925,070	102,177	31,437	2,228,567	15,893,633
$8,000 under $9,000	10,287,054	62,916	20,317	1,289,688	10,266,737
$9,000 under $10,000	7,107,731	47,619	15,703	811,795	7,092,028
$10,000 under $15,000	12,334,291	63,791	29,075	. 1,221,042	12,305,216
$15,000 under $20,000	3,661,482	12,653	8,206	288,846	3,653,276
$20,000 under $25,000	1,950,044	5,868	3,852	132,888	1,946,192
$25,000 under $30,000	1,288,287	3,355	2,397	74,454	1,285,890
$30,000 under $'^0,000	2,631,392	4,198	3,602	119,610	2,627,790
$50,000 under $100,000	1,682,789	2,527	2,201	52,212	1,680,588
$100,000 under $150,000...	402,910	403	355	9,071	402,555
$1§0,000 under $200,000...	142,435	146	125	2,763	142,310
$200,000 under $500,000. . .	167,572	134	129	2,880	167,443
$500,000 under $1,000,000.	31,409	17	19	428	31,390
$1,000,000 or more	7,773	9	7	189	7,766
Total taxable returns...	186,552,073	1,153,285	398,207	41,112,239	186,153,866
Nontaxable returns:
No adjusted gross Incoroe..	133,263	1,081	1,630	94,613	131,633
Under $600	1,082,790	9,061	8,521	3,261,454	1,074,269
$600 under $1,000	873,564	6,608	4,329	1,177,006	369,235
$1,000 under $1, 500	1,562,046	7,999	6,941	1,352,468	1,555,105