[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.31-1]

[Page 100-101]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.31-1  Credit for tax withheld on wages.

    (a) The tax deducted and withheld at the source upon wages under 
chapter 24 of the Internal Revenue Code of 1954 (or in the case of 
amounts withheld in 1954,

[[Page 101]]

under subchapter D, chapter 9 of the Internal Revenue Code of 1939) is 
allowable as a credit against the tax imposed by Subtitle A of the 
Internal Revenue Code of 1954, upon the recipient of the income. If the 
tax has actually been withheld at the source, credit or refund shall be 
made to the recipient of the income even though such tax has not been 
paid over to the Government by the employer. For the purpose of the 
credit, the recipient of the income is the person subject to tax imposed 
under Subtitle A upon the wages from which the tax was withheld. For 
instance, if a husband and wife domiciled in a State recognized as a 
community property State for Federal tax purposes make separate returns, 
each reporting for income tax purposes one- half of the wages received 
by the husband, each spouse is entitled to one-half of the credit 
allowable for the tax withheld at source with respect to such wages.
    (b) The tax withheld during any calendar year shall be allowed as a 
credit against the tax imposed by Subtitle A for the taxable year of the 
recipient of the income which begins in that calendar year. If such 
recipient has more than one taxable year beginning in that calendar 
year, the credit shall be allowed against the tax for the last taxable 
year so beginning.