COMPUTATION OF INCOME AND VICTORY TAX. (See Tax Computation Instructions) 1. Income Tax net income (item 18, page 1) 2. Less: Personal exemption. (From Schedule I-(1)) oe Credit for dependents. (From Schedule I-(2)) 4, Balance (surtax net income) 5. Less: Certain interest on Government obligations (item 4 (a), page 1). 6 Earned income credit. (From Schedule J-(1) or J-(2)) 7. Balance subject to normal tax 8. Normal tax (6% of line 7) 9. Surtax on amount in line 4. (See Surtaz Table, page 3 of Instructions) 10. Total Income Tax (line 8 plus line 9). (if Schedule B is used and alternative tax computation made, enter line 16, Schedule B) 11. 12. 13. 14. 15. Less: Income Tax paid to a foreign country or U.S. possession. (Attach Form 1116)_ BALANCE, OF INCOME, TAX NET VICTORY TAX (line 6 of Victory Tax Schedule, below) Total of lines 12 and 13 Income Tax paid at source on tax-free covenant bond interest. (See Footnote 1) 16. Line 14 less line 15 17. Income Tax for 1942. (See Statement, Form 1125, from Collector) (First, see page 4 of Instructions). 18. Enter line 16 or 17 whichever is LARGER. (Members of the armed forces see page 4 of Instructions) 19. FORGIVENESS FEATURE (Don’t fill in (a), (5), and (c) below, if either line 16 or 17 is $50 or less): (a) Enter line 16 or 17, whichever is SMALLER $ (6) Enter $50 or three-fourths of (a), immediately above, whichever is LARGER. This is the FORGIVEN part of the tax (c) Enter the UNFORGIVEN part of the tax which is the BALANCE 3 . TOTAL Footnote 2) INCOME AND VICTORY TAX. $ (subtract (6) from (a)). (See (Total of lines 18 and 19 (c)) . Less: (a) Income and Victory Tax withheld by employer (6) Income Tax paid on 1942 income (c) Tax paid on 1943 income on account of Declaration of Estimated Tax (d) Total payments 22. UNPAID BALANCE OF INCOME AND VICTORY TAX. (If line 20 is larger than line 21 (d), enter the difference here and also as item 20, page |; if not, see item 23, page 1) FOOTNOTE FOOTNOTE $ ——— 1.—If you claim a credit in line 15, disregard lines 19 (az) and (6), complete Schedule L-1 on page 4 of Instructions, and enter result in line 19 (c). Attach completed schedule. 2.—If your surtax net income for 1942 or 1943 exceeded $20,000, requiring you to complete Schedule L-2, enter here the amount shown on line 10 or 27 of such schedule, $ and increase 19 (c) by such amount. Schedule ose Stone as Gee Tax Computation Instructions) . Victory Tax net income (item 19, page 1) . Less: Specific exemption ($624 if return reports income of only one person; otherwise, see Instructions, page 3). Income subject to Victory Tax (line | less line 2) . Victory Tax before credit (5% of line 3) . Victory Tax credit: (a) Single person, or married person not living with husband or wife: 25% (plus 2% for each dependent) of line 4, but not more than $500 (plus $100 for each dependent)... (b) Married person living with husband or wife if separate returns are filed: 40% (plus of line 4, but not more than $500 (plus $100 for each dependent) 2% for each dependent) (c) Married person living with husband or wife if only one return or a joint return is filed, or head of a family: 40% (plus 2% for each dependent) of line 4, but not more than $1,000 (plus $100 for each dependent). (See Schedule I—(2), for exclusion of one dependent by head of a family) $ . Net Victory Tax (line 4 less line 5). (Enter in line 13, above) ashes Schedule L.—To —— be used only by individuals whose to determine whethes Section surtax net income 6 (c) ins the Current 1. Surtax net income for 1942 (item 23, Form 1040 (1942)) 2. Surtax net income for 1943 (line 4, above) 3. Surtax net income for base year, $ 1930 for 1942 or 1943 exceeded pos Payment $ $ 3 plus $20,000: $ $20,000 Act of 1943 is app eee (Check year used: 1937 _...; 1938 _._.; 19%) If either line | or 2 is greater than line 3, separate Schedule L—2 should be secured from the collector and filed with and as a part of this return. Note.—If a joint return is filed for either 1942 or 1943 and separate returns for the other of such years, enter the aggregate incomes for the separate return year. The surtax net income to be entered in line 3 shall be determined in the same income entered in line 1 or 2, whichever is the lesser. : U. S. GOVERNMENT PRINTING OFFICE : 1943 16-3 4129-1 of the separate manner as the surtax surtax net net