INCREASE IN LOW INCOME ALLOWANCE.

SEC. 201. INCREASE IN LOW INCOME ALLOWANCE. (a) In General.— Subsection (c) of section 141 (relating to low income allowance) is amended to read as follows: “(c) Low Income Allowance.— The low income allowance is— “(1) $1,900 in the case of— “(A) a joint return under section 6013, or “(B) a surviving spouse (as defined in section 2(a)), “(2) $1,600 in the case of an individual who is not married and who is not a surviving spouse (as so defined), or “(3) $950 in the case of a married individual filing a separate return.” 89 STAT. 29 (b) Change in Filing Requirements To Reflect Increase in Low Income Allowance.— So much of paragraph (1) of section 6012(a) (relating to persons required to make returns of income) as precedes subparagraph (C) thereof is amended to read as follows: “(1) (A) Every individual having for the taxable year a gross income of $750 or more, except that a return shall not be required of an individual (other than an individual referred to in section 142(b))— “(i) who is not married (determined by applying section 143), is not a surviving spouse (as defined in section 2(a)), and for the taxable year has a gross income of less than $2,350, “(ii) who is a surviving spouse (as so defined) and for the taxable year has a gross income of less than $2,650, or “(iii) who is entitled to make a joint return under section 6013 and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than $3,400 but only if such individual and his spouse, at the close of the taxable year, bad the same household as their home. Clause (iii) shall not apply if for the taxable year such spouse makes a separate return or any other taxpayer is entitled to an exemption for such spouse under section 151 (e). “(B) The amount specified in clause (i) or (ii) of subparagraph (A) shall be increased by $750 in the case of an individual entitled to an additional personal exemption under section 151(c)(1), and the amount specified in clause (iii) of subparagraph (A) shall be increased by $750 for each additional personal exemption to which the individual or his spouse is entitled under section 151(c);”. (c) Change in Optional Tax Tables.— Section 3 (relating to optional tax tables) is amended by striking out “$10,000” and by inserting in lieu thereof “$15,000”.