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TITLE 26-INTERNAL REVENUE CODE pealed by Pub. L. 94-412, title V, § 501(g), Sept. 14, 1976, 90 Stat. 1258. The Railroad Retirement Act of 1935, as amended, referred to in subsec. (a)(7), is act Aug. 29, 1935, ch. 812, 49 Stat. 867 (as amended generally by acts June 24, 1937, ch. 382, part I, 50 Stat. 307, and Oct. 16, 1974, Pub. L. 93-445, title I, 88 Stat. 1305) and is now known as the Railroad Retirement Act of 1974, which is clas. sified generally to subehapter IV (§231 et seq.) of chapter 9 of Title 45, Railroads. Section 12 of the Rail- road Retirement Act of 1935 (45 U.S.C. 2281), is now covered by section 231m of Title 45. For complete clas- sification of this Act to the Code, see Tables volume. AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1901(a)(21), struck out pars. (4), (5), (6), (9), (10), (11), (12), (13), and (17) relating to: benefits under World War Adjust- ment Compensation Act; benefits under World War Veteran's Act 1924; dividends and interest derived from certain preferred stock by Reconstruction Fi- nance Corporation; income derived from Ogdensburg bridge; income derived from Owensburg bridge and ferries; income from Saint Clair River bridge and fer- ries; leave compensation payments under section 6 of Armed Forces Leave Act of 1946; mustering-out pay- ments under Mustering-Out Payment Act of 1944; and gain derived from sale or other disposition of Treasury Bills issued after June 17, 1930, under the Second Li- berty Bond Act, respectively, renumbered pars. (7), (8), (14), (15), (18), and (18) as pars. (5), (6), (7), (8), (9), and (4), respectively, struck out references to Statutes at Large, and updated cross references to the United States Code. Subsec. (b). Pub. L. 94-455, § 1901(a)(21), struck out "58 Stat. 689;" following "Health Service Act(". 1958-Subsec. (a)(18). Pub. L. 85-857 substituted "section 3101 of Title 38, United States Code" for "sec- tion 1001 of the Veterans' Benefits Act of 1957". 1957-Subsec. (a)(18). Pub. L. 85-56 substituted pro- visions relating to benefits under laws administered by the Veterans' Administration, for provisions which re- lated to dependency and indemnity compensation. 1956-Subsec. (a). Act Aug. 1, 1956, added par. (18), relating to dependency and indemnity compensation. EFFECTIvE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable with re- spect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as Effec- tive Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85-857 effective Jan. 1, 1959, see section 2 of Pub. L. 85-857, set out as an Effective Date note preceding Part I of Title 38, Veterans' Bene- fits. CRoss REFERENCES Patronage refunds paid by Federal intermediate credit banks as exempt from income tax, see section 2077 of Title 12, Banks and Banking. PART IV-STANDARD DEDUCTION FOR INDIVIDUALS Sec. 141. Standard deduction. 142. Individuals not eligible for standard deduction. 143. Determination of marital status. 144. Election of standard deduction. 145. Cross reference. PART REFERRED TO IN OTHER SECTIONS This part is referred to in sections 21, 63 of this title. § 141. Standard deduction (a) Standard deduction Except as otherwise provided in this section, the standard deduction referred to in this title is the larger of the percentage standard deduc- tion or the low income allowance. (b) Percentage standard deduction The percentage standard deduction is an amount equal to 16 percent of adjusted gross income, but not more than- (1) $2,800 in the case of- (A) a Joint return under section 6013, or (B) a surviving spouse (as defined in sec- tion 2(a)), (2) $2,400 in the case of an individual who is not married and who is not a surviving spouse (as so defined), or (3) $1,400 in the case of a married individual filing a separate return. (c) Low income allowance The low income allowance is- (1) $2,100 in the case of- (A) a joint return under section 6013, or (B) a surviving spouse (as defined in sec- tion 2(a)), (2) $1,700 in the case of an individual who is not married and who is not a surviving spouse (as so defined), or (3) $1,050 in the case of a married individual filing a separate return. (d) Married individuals filing separate returns Notwithstanding subsection (a)- (1) The low income allowance shall not apply in the case of a separate return by a married individual if the tax of the other spouse is determined with regard to the per- centage standard deduction. (2) A married individual filing a separate return may, if the low income allowance is less than the percentage standard deduction, and if the low income allowance of his spouse is greater than the percentage standard de- duction of such spouse, elect (under regula- tions prescribed by the Secretary) to have his tax determined with regard to the low income allowance in lieu of being determined with regard to the 10-percent standard deduction. (e) Limitations in case of certain dependent taxpay- ers In the case of a taxpayer with respect to whom a deduction under section 151(e) is al- lowable to another taxpayer for the taxable year- (1) the percentage standard deduction shall be computed only with reference to so much of his adjusted gross income as is attributable to his earned income (as defined in section 911(b)), and (2) the low income allowance shall not exceed his earned income for the taxable year. (Aug. 16, 1954, ch. 136, 68A Stat. 40; Feb. 26, 1964, Pub. L. 88-272, title I, § 112(a), 78 Stat. 23; Dec. 30, 1969, Pub. L. 91-172, title VIII, § 802(a), (c)(4), (e), 83 Stat. 676, 678; Dec. 10, 1971, Pub. L. 92-178, title II, §§ 202, 203(a)-(c), title III, § 301(a), 85 Stat. 511, 520; Mar. 29, 1975, Pub. L. 94-12, title II, §§ 201(a), 202(a), 89 Stat. 28, 29; Dec. 23, 1975, Pub. L. 94-164, § 2(a)(1), (b)(1). 89 Page 131 § 141