CH. 1
NORMAL TAXES AND SURTAXES
15
SEC. 36. CREDITS NOT ALLOWED TO INDIVIDUALS PAYING OPTIONAL TAX OR TAKING STANDARD DEDUCTION.
If an individual elects to pay the optional tax imposed by section 3, or if he elects under section 144 to take the standard deduction, the credits provided by sections 32, 33, and 35 shall not be allowed. SEC. 37. RETIREMENT INCOME. (a) GENERAL RULE. ^ I U the case of an individual who has received
earned income before the beginning of the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount received by such individual as retirement income (as defined in subsection (c) and as limited by subsection (d)), multiplied by the rate provided in section 1 for the first $2,000 of taxable income; but this credit shall not exceed such tax reduced by the credits allowable under section 32(2) (relating to tax withheld at source on tax-free covenant bonds), section 33 (relating to foreign tax credit), section 34 (relating to credit for dividends received by individuals), and section 35 (relating to partially tax exempt interest). (b) INDIVIDUAL W H O H A S RECEIVED EARNED INCOME.—For purposes of subsection (a), an individual shall be considered to have received earned income if he has received, in each of any 10 calendar years before the taxable year, earned income (as defined in subsection (g)) in excess of $600. A widow or widower whose spouse had received such earned income shall be considered to have received earned income. (c) RETIREMENT INCOME.—For purposes of subsection (a), the term "retirement income" means— (1) in the case of an individual who has attained the age of 65 before the close of the taxable year, income from— (A) pensions and annuities, (B) interest, (C) rents, and • (D) dividends, or (2) in the case of an individual who has not attained the age of 65 before the close of the taxable year, income from pensions and annuities under a public retirement system (as defined in subsection (f)), to the extent included in gross income without reference to this section, but only to the extent such income does not represent compensation for personal services rendered during the taxable year. (d) LIMITATION ON RETIREMENT INCOME.—For purposes of subsection (a), the amount of retirement income shall not exceed $1,200 less— (1) in the case of any individual, any amount received by the individual as a pension or annuity— (A) under title II of the Social Security Act, (B) under the Railroad Retirement Acts of 1935 or 1937, or (C) otherwise excluded from gross income, and (2) in the case of any individual who has not attained the age of 75 before the close of the taxable year, any amount of earned income (as defined in subsection (g)) in excess of $900 received by the individual in the taxable year. § 37(d)(2)
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