. 0 'Istics of In o(,r 953 PA RT I Individual Income Tax Returns Estate Tax.Returns Gift Tax Returns U. S. TREASURY DEPARTMENT Internal Revenue Service 9 0 Statistics of Incomc f(or 19 S 3 Prepared under the direction of the COMMISSIONER OF INTERNAL REVENUE by the STATISTIcs DIVISION R 4- 1,1// PA RT I Individual Vic" "j/41/1011,11,11111iow,wr Income Tax Returns Estate Tax Returns a Gift Tax Returns U. S. TREASURY DEPARTMENT Internal Revenue Service Publication No. 79 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1957 For sale by the Superintendent of Documents, U.S. Government Printijig Office, Washington 25, D.C. - Price 75 cents (paper cover) LETTER OF TRANSMITTAL TREAsuRy DEPARTA",NT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, 'Wa8hington, D. C., December 5,1956. SIR: Transmitted herewith is the complete report, Stati8tiC8 Of Income for 1953, Part 1, compiled in accordance with the provisions of section 6108 of the Internal Revenue Code of 1954, which requires the preparation and publica- tion annually of statistics reasonably available with respect to the operation of income tax laws. Data relative to types of income, deductions, exemptions, income tax, self-employment tax, tax credits, income tax withheld, payment on declaration, tax refunds, and other pertinent matters are tabulated by various classifications of income and taxpayers in the case of individual income tax returns. Information for estate tax returns presents the composition of gross estate, deductions, exemption, net estate, and estate tax by size classifica- tions, taxing revenue acts, marital status, age, and sex of decedents. Statistics for gift tax returns show types of gifts transferred, split gifts of married persons, allowable deductions, and tax liability of donors by size of gifts. The report also includes some historical data and a synopsis of recent tax rates, credits, and other provisions of the tax laws. Respectfully, RussFLL C. HARRINGTON, Commis8ioner of Internal Revenue. HONORABLE G. M. HuMPHRFY, Secretary of the Trea8ury. Uri CONTENTS Page Introduction --------------------------------------------------------------- 1 INDIVIDUAL INCOME TAX RETURNS Major characteristics -------------------------------------------------------- 5 Income tax provisions for 1953 individual income ------------------------------- 7 Returns from which data are tabulated ---------------------------------------- 7 Composition of adjusted gross income ----------------------------------------- 8 Taxpayment status --------------------------------------------------------- 8 Deduction for medical expenses ----------------------------------------------- 9 Marital status of taxpayers -------------------------------------------------- 9 Tabulated data ------------------------------------------------------------- 10 Description of sample and limitations of data ----------------------------------- 11 Explanation of classifications and terms ---------------------------------------- 13 Classification of individual returns ---------------------------------------- 13 Sources comprising adjusted gross income ---------------------------------- 15 Itemized nonbusiness deductions ------------------------------------------ 16 Measures of individual income -------------------------------------------- 17 Exemptions ------------------------------------------------------------ 18 Tax items -------------------------------------------------------------- 18 Sole proprietorships --------------------------------------------------------- 19 Basic tables, 1953: 1. Number of returns, adjusted gross income, and total tax-simple and cumulated distributions -------------------------------------------- 23 2. Sources of income and loss, itemized deductions, and net income, by returns with standard or itemized deductions -------------------------------- 24 3. Sources of income and loss and itemized deductions, by adjusted gross income classes ----------------------------------------------------------- 25 4. Sources of income and loss, deductions, exemption, and tax items-frequencies and amounts, by adjusted gross income classes ------------------------- 26 5. Adjusted gross income, tax liability, average tax and effective tax rate, by types of tax ------------------------------------------------------ 31 6. Tax refund, tax credit, and tax due, by types of taxpayment. ---------------- 32 7. Adjusted gross income, exemption, and total tax, by marital status of tax- payer ------------------------------------------------------------ 34 8. Exemptions by marital status of taxpayer ------------------------------ 36 9. Capital gains and losses, short- and long-term, by adjusted gross income classes ----------------------------------------------------------- 40 10. Selected sources of income and tax liability by States and Territories --------- 42 11. Adjusted gross income and income tax liability, by States and Territories and by adjusted gross income classes ------------------------------------ 43 12. Sole proprietorships by industrial groups ------------------------------- 46 13. Sole proprietorships by size of total receipts and specified industrial groups --- 47 14. Sole proprietorships with net profit by size of net profit and specified indus- trial groups ------------------------------------------------------- 49 Historical tables, 1944-53: 15. Number of returns by major characteristics, adjusted gross income and deficit, and tax ---------------------------------------------------- 53 16. Returns with income tax-Number, adjusted gross income, income tax, average tax, and effective tax rate, by adjusted gross income classes ----- 54 17. Sources of income by type -------------------------------------------- 55 18. Selected sources of income by adjusted gross income classes -------------- 56 19. Itemized deductions by type ------------------------------------------ 58 20. Returns with adjusted gross income-Number, adjusted gross income, and income tax, by States and Territories -------------------------------- 59 ESTATE TAX RETURNS Major characteristics-------------------------------------------------------- 63 Estate tax law-------------------------------------------------------------- 63 v VI CONTENTS Pan Returns from which data are tabulated ---------------------------------------- 64 Tabulated data -------------------------------------------------------------- 64 Nonresident alien estates ---------------------------------------------------- 65 Explanation of classifications and terms ---------------------------------------- 66 Classification of estate tax returns ----------------------------------------- 66 Gross estate and types of property ---------------------------------------- 67 Deductions -------------------------------------------------------------- 67 Net estate, estate tax, and tax credits ------------------------------------- 68 Estate tax tables: 1. Gross estate by types of property, deduAions, net estate, and tax, by ap- plicable revenue acts------------------------------------------------ 72 2. Gross estate by types of property, deductions, net estate, and tax for taxable returns filed under recent acts, by net estate classes -------------------- 73 3. Gross estate by types of property, deductions, net estate, and tax for taxable returns filed under recent acts, by gross ,-state classes -------------------- 74 4. Gross estate by types of property, deductions, and net estate before exemption for nontaxable returns filed under receint acts, by gross estate classes ----- 75 5. Number of returns, by net estate classes and by marital status and age of decedent ---------------------------------------------------------- 76 6. Number of returns and net estate, by net estate classes and age of decedent- - 79 7. Number of returns and gross estate, by grcss estate classes and by age and sex of decedent -------------------------------------------------------- 80 8. Estate tax data by States and Territories ------------------------------- 83 9. Number of returns, gross estate by types of property, selected deductions, net estate, and tax, 1945-54--------------------------------------------- 84 GIFT TAX RETURNS Major characteristics --------------------------------------------------------- 87 Gift tax law------------------------------------------------------------------ 88 Returns from which data are tabulated ---------------------------------------- 88 Tabulated data ------------------------------------------------------------- 88 Explanation of classifications and terms ----------------------------------------- 89 Classification of gift tax returns ------------------------------------------- 89 Total gifts and exclusions ------------------------------------------------ 89 Deductions -------------------------------------------------------------- 90 Net gifts and tax ------------------------------------------------------- 90 Gift tax tables: 1. Types of gifts, exclusions, deductions, net gifts, and tax, by net gift classes 92 2. Total gifts, exclusions, deductions, net gif to, and tax, by total gift plus gift tax classes ----------------------------------------- ---------------- 93 3. Identical donors by taxable status -------------------------------------- 95 4. Identical donors taxable for 1953 and prior years, by net gift classes and by net gift for prior years classes---------------------------------------- 95 5. Number of returns, total gifts by types, net gifts, and tax, 1944-53 --------- 96 SYNOPSIS OF FEDERAL TAX LAWS Individual income tax: A. Requirement for filing return and exemptions