58 STAT.] 78TH CONG. , 2D SESS.-CH. 210-MAY 29, 1944 "(3) DEFINITION OF DEPENDENT.-As used in this chapter the term 'dependent' means any of the following persons over half of whose support, for the calendar year in which the taxable year of the taxpayer begins, was received from the taxpayer: "(A) a son or daughter of the taxpayer, or a descendant of either, "(B) a stepson or stepdaughter of the taxpayer, "(C) a brother, sister, stepbrother, or stepsister of the taxpayer, "(D) the father or mother of the taxpayer, or an ancestor of either, "(E) a stepfather or stepmother of the taxpayer, "(F) a son or daughter of a brother or sister of the tax- payer, (G) a brother or sister of the father or mother of the taxpayer, "(H) a son-in-law, daughter-in-law, father-in-law, mother- in-law, brother-in-law, or sister-in-law of the taxpayer. "As used in this paragraph, the terms 'brother' and 'sister' include a brother or sister by the half-blood. For the purposes of deter- mining whether any of the foregoing relationships exist, a legally adopted child of a person shall be considered a child of such person by blood. The term 'dependent' does not include any individual who is a citizen or subject of a foreign country unless such individual is a resident of the United States or of a country contiguous to the United States. A payment to a wife which is includible under section 22 (k) or section 171 in the gross income of such wife shall not be considered a payment by her husband for the support of any dependent." (c) REDUCTION OF CREITrs IN CASE OF JEoPARDY. -Section 47 (e) (relating to reduction of certain credits against net income in case of jeopardy) is amended by striking out "personal exemption and credit for dependents" and inserting in lieu thereof "normal tax exemption and surtax exemptions"; and by striking out "the full credits provided" and inserting in lieu thereof "the full normal tax exemption (in the case of the normal tax) and the full surtax exemptions (in the case of the surtax)". (d) CREDITS AGAINST NET INCOME IN CASE OF INTEREST ON TAX- FREE COVENANT BoNDs. - Section 143 (a) (2) (relating to credits against net income in the case of interest on tax-free covenant bonds) is amended by striking out "credits provided in section 25 (b)" and inserting in lieu thereof "normal tax exemption provided in section 25 (a) (3) and the surtax exemptions provided m section 25 (b) . (e) CREDITS OF ESTATE OR TRUST AGAINST NET INCOME.- - ection 163 (a) (1) (relating to credits of estates and trusts against net income) is amended to read as follows: "(1) For the purpose of the normal tax an estate shall be allowed the same normal tax exemption as is allowed to a single person under section 25 (a) (3). For the purpose of the sur- tax an estate shall be allowed the same surtax exemption as is allowed to an individual under section 25 (b) (1) (A). A trust shall be allowed a credit of $100 against net income for the purpose of the normal tax and a credit of $100 against net income for the purpose of the surtax. Such credits shall be in lieu of the normal tax exemption under section 25 (a) (3) and the surtax exemption under section 25 (b) (1) (A)." (f) CREDrrs OF NONRESIDENT ALIENS AGAINST NET INCOME. -Section 214 (relating to credits of nonresident aliens against net income) is amended to read as follows: 56 Stat. 816 , 817. 26 U. S. C., Supp. III, §§ 22 (k), 171 . 53 Stat. 26 . 26U. S .C. 47 (e). Ante, p. 31. 53 Stat. 6k. 26U.S.C.§143(a) (2). Ante, p. 238. 53 Stat. 67 . 26U.S.C.§ 163(a) (1). Ante, p. 238. Ante, p. 238. 53 Stat. 77. 26 U. S. C., Supp. III. i 214.
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