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119th Congress

Title 26 — Internal Revenue Code

Part I · Chapter 1 — Normal Taxes and Surtaxes

§ 62. Adjusted gross income defined

Statutory text

(a)

General rule

For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions:

(1)

Trade and business deductions

The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.

(2)

Certain trade and business deductions of employees

(A)

Reimbursed expenses of employees

The deductions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.

(B)

Certain expenses of performing artists

The deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.

(C)

Certain expenses of officials

The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.

(D)

Certain expenses of elementary and secondary school teachers

The deductions allowed by section 162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator—

(i)

by reason of the participation of the educator in professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction, and

(ii)

in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.

(E)

Certain expenses of members of reserve components of the Armed Forces of the United States

The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.

(3)

Losses from sale or exchange of property

The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of property.

(4)

Deductions attributable to rents and royalties

The deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for production of income), and by section 611 (relating to depletion) which are attributable to property held for the production of rents or royalties.

(5)

Certain deductions of life tenants and income beneficiaries of property

In the case of a life tenant of property, or an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by section 611.

(6)

Pension, profit-sharing, and annuity plans of self-employed individuals

In the case of an individual who is an employee within the meaning of section 401(c)(1), the deduction allowed by section 404.

(7)

Retirement savings

The deduction allowed by section 219 (relating to deduction of certain retirement savings).

[(8) Repealed. Pub. L. 104–188, title I, § 1401(b)(4), , 110 Stat. 1788]

(9)

Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits

The deductions allowed by section 165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business, to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.

[(10) Repealed. Pub. L. 115–97, title I, § 11051(b)(2)(A), , 131 Stat. 2089]

(11)

Reforestation expenses

The deduction allowed by section 194.

(12)

Certain required repayments of supplemental unemployment compensation benefits

The deduction allowed by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).

(13)

Jury duty pay remitted to employer

Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term “jury pay” means any payment received by the individual for the discharge of jury duty.

[(14) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(34)(C), , 128 Stat. 4042]

(15)

Moving expenses

The deduction allowed by section 217.

(16)

Archer MSAs

The deduction allowed by section 220.

(17)

Interest on education loans

The deduction allowed by section 221.

[(18) Repealed. Pub. L. 116–260, div. EE, title I, § 104(b)(2)(A), , 134 Stat. 3041]

(19)

Health savings accounts

The deduction allowed by section 223.

(20)

Costs involving discrimination suits, etc.

Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code, or a claim made under section 1862(b)(3)(A) of the Social Security Act (42 U.S.C. 1395y(b)(3)(A)). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.

(21)

Attorneys’ fees relating to awards to whistleblowers

(A)

In general

Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under—

(i)

section 7623(b), or

(ii)

in the case of taxable years beginning after , any action brought under—

(I)

section 21F of the Securities Exchange Act of 1934 (15 U.S.C. 78u–6),

(II)

a State false claims act, including a State false claims act with qui tam provisions, or

(III)

section 23 of the Commodity Exchange Act (7 U.S.C. 26).

(B)

May not exceed award

Subparagraph (A) shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.

Nothing in this section shall permit the same item to be deducted more than once. Any deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.

(b)

Qualified performing artist

(1)

In general

For purposes of subsection (a)(2)(B), the term “qualified performing artist” means, with respect to any taxable year, any individual if—

(A)

such individual performed services in the performing arts as an employee during the taxable year for at least 2 employers,

(B)

the aggregate amount allowable as a deduction under section 162 in connection with the performance of such services exceeds 10 percent of such individual’s gross income attributable to the performance of such services, and

(C)

the adjusted gross income of such individual for the taxable year (determined without regard to subsection (a)(2)(B)) does not exceed $16,000.

(2)

Nominal employer not taken into account

An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200.

(3)

Special rules for married couples

(A)

In general

Except in the case of a husband and wife who lived apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the taxpayer and his spouse file a joint return for the taxable year.

(B)

Application of paragraph (1)

In the case of a joint return—

(i)

paragraph (1) (other than subparagraph (C) thereof) shall be applied separately with respect to each spouse, but

(ii)

paragraph (1)(C) shall be applied with respect to their combined adjusted gross income.

(C)

Determination of marital status

For purposes of this subsection, marital status shall be determined under section 7703(a).

(D)

Joint return

For purposes of this subsection, the term “joint return” means the joint return of a husband and wife made under section 6013.

(c)

Certain arrangements not treated as reimbursement arrangements

For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if—

(1)

such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or

(2)

such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement.

The substantiation requirements of the preceding sentence shall not apply to any expense to the extent that substantiation is not required under section 274(d) for such expense by reason of the regulations prescribed under the 2nd sentence thereof.

(d)

Definition; special rules

(1)

Eligible educator

(A)

In general

For purposes of subsection (a)(2)(D), the term “eligible educator” means, with respect to any taxable year, an individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.

(B)

School

The term “school” means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.

(2)

Coordination with exclusions

A deduction shall be allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529(c)(1), or 530(d)(2) for the taxable year.

(3)

Inflation adjustment

In the case of any taxable year beginning after 2015, the $250 amount in subsection (a)(2)(D) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2014” for “calendar year 2016” in subparagraph (A)(ii) thereof.

Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50.

(e)

Unlawful discrimination defined

For purposes of subsection (a)(20), the term “unlawful discrimination” means an act that is unlawful under any of the following:

(1)

Section 302 of the Civil Rights Act of 1991 (42 U.S.C. 2000e–16b).

(2)

Section 201, 202, 203, 204, 205, 206, 207, or 208 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).1

(3)

The National Labor Relations Act (29 U.S.C. 151 et seq.).

(4)

The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).

(5)

Section 4 or 15 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623 or 633a).

(6)

Section 501 or 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791 or 794).

(7)

Section 510 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1140).

(8)

Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.).

(9)

The Employee Polygraph Protection Act of 1988 (29 U.S.C. 2001 et seq.).

(10)

The Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102 et seq.).

(11)

Section 105 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2615).

(12)

Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services).

(13)

Section 1977, 1979, or 1980 of the Revised Statutes (42 U.S.C. 1981, 1983, or 1985).

(14)

Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2, 2000e–3, or 2000e–16).

(15)

Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617).

(16)

Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203).

(17)

Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law.

(18)

Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law—

(i)

providing for the enforcement of civil rights, or

(ii)

regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.

Footnotes

  1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Aug. 16, 1954, ch. 736, 68A Stat. 17 · 68A Stat. 17

    Enacted · 26 U.S.C. § 62

    Aug. 16, 1954, ch. 736, 68A Stat. 17

    Source evidence

    Code source credit
    Aug. 16, 1954, ch. 736, 68A Stat. 17

  2. Self-Employed Individuals Tax Retirement Act of 1962

    Pub. L. 87–792 § 7(b) · 76 Stat. 809

    Added · 26 U.S.C. § 62(7)

    Pub. L. 87–792 added par. (7)

    Source evidence

    Code amendment note
    Par. (7). Pub. L. 87–792 added par. (7).

    Enacted provision · exact public law section
    (b) Adjusted Gross Income.— Section 62 of the Internal Revenue Code of 1954 (relating to the definition of adjusted gross income) is amended by inserting after paragraph (6) the following new paragraph: “(7) Pension, profit-sharing, annuity, and bond purchase plans of self-employed individuals.— In the case of an individual who is an employee within the meaning of section 401 26 USC 404. Ante, p. 826. (c)(1), the deductions allowed by section 404 and section 405(c) to the extent attributable to contributions made on behalf of such individual.”

  3. Revenue Act of 1964

    Pub. L. 88–272 title II § 213(b) · 78 Stat. 19

    Added · 26 U.S.C. § 62(8)

    Pub. L. 88–272 added par. (8)

    Source evidence

    Code amendment note
    Par. (8). Pub. L. 88–272 added par. (8).

    Enacted provision · exact public law section
    (b) Adjusted Gross Income.— Section 62 (defining adjusted gross income) is amended by inserting after paragraph (7) the following new paragraph: “(8) Moving expense deduction.— The deduction allowed by Ante, p. 51. Ante, p. 36. section 217.”

  4. Tax Reform Act of 1969

    Pub. L. 91–172 title V § 531(b) · 83 Stat. 487

    Added · 26 U.S.C. § 62(9)

    Pub. L. 91–172 added par. (9)

    Source evidence

    Code amendment note
    Par. (9). Pub. L. 91–172 added par. (9).

    Enacted provision · exact public law section
    (b) Conforming Amendment.— Section 62 (relating to adjusted 68A Stat. 17; 78 Stat. 52. gross income defined) is amended by inserting after paragraph (8) the following new paragraph: “(9) Pension, etc., plans of electing small business corporations.— The deduction allowed by section 1379(b)(3).” Supra.

  5. Employee Retirement Income Security Act of 1974

    Pub. L. 93–406 § 2002(a)(2) · 88 Stat. 829

    Added · 26 U.S.C. § 62(10)

    Pub. L. 93–406, § 2002(a)(2), added par. (10)

    Source evidence

    Code amendment note
    Par. (10). Pub. L. 93–406, § 2002(a)(2), added par. (10).

    Enacted provision · exact public law section
    (2) Deduction allowed in arriving at adjusted gross income.— Section 62 (defining adjusted gross income) is amended by inserting after paragraph (9) the following new paragraph: “(10) Retirement savings.— The deduction allowed by section 219 (relating to deduction of certain retirement savings).”. Ante, p. 958.

  6. Pub. L. 93–483 § 6(a) · 88 Stat. 1457

    Added · 26 U.S.C. § 62(11)

    Pub. L. 93–483 added par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits. Another par. (11) relating to certain portions of lump-sum distributions from pension plans taxed under section 402(e) of this title, was added by Pub. L. 93–406, § 2005(c)(9)

    Source evidence

    Code amendment note
    Par. (11). Pub. L. 93–483 added par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits. Another par. (11) relating to certain portions of lump-sum distributions from pension plans taxed under section 402(e) of this title, was added by Pub. L. 93–406, § 2005(c)(9).

    Enacted provision · exact public law section
    (a) Section 62 of the Internal Revenue Code of 1954 is amended by inserting after paragraph (10) the following new paragraph: “(11) Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits.— The deductions allowed by section 165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.”

  7. Pub. L. 94–455 § 1501(b)(1) · 90 Stat. 1520

    Inserted · 26 U.S.C. § 62(10)

    Pub. L. 94–455, § 1501(b)(1), inserted reference to the deduction allowed by section 220 (relating to retirement savings for certain married individuals)

    Source evidence

    Code amendment note
    Par. (10). Pub. L. 94–455, § 1501(b)(1), inserted reference to the deduction allowed by section 220 (relating to retirement savings for certain married individuals).

    Enacted provision · exact public law section
    (1) Paragraph (10) of section 62 (relating to retirement savings) 26 USC 62. is amended by inserting before the period the following: “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)”.

  8. Pub. L. 94–455 § 1901(a)(8) · 90 Stat. 1520

    1. Redesignated · 26 U.S.C. § 62(11); 26 U.S.C. § 62(12)

      Pub. L. 94–455, § 1901(a)(8), (9), redesignated par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits, as par. (12)

    2. Substituted · 26 U.S.C. § 62(11); 26 U.S.C. § 62(12)

      Pub. L. 94–455, § 1901(a)(8), (9), substituted “trade or business, to the extent” for “trade or business to the extent”

    Source evidence

    Code amendment note
    Pars. (11), (12). Pub. L. 94–455, § 1901(a)(8), (9), redesignated par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits, as par. (12), and substituted “trade or business, to the extent” for “trade or business to the extent”.

    Enacted provision · exact public law section
    (8) Amendments op section 62.— Section 62 (relating to definition 26 USC 62. of adjusted gross income) is amended by redesignating paragraph (11), as added by the Act of October 26, 1974 (Public Law 93–483), as paragraph (12).

  9. Pub. L. 94–455 § 502(a) · 90 Stat. 1520

    Added · 26 U.S.C. § 62(13)

    Pub. L. 94–455, § 502(a), added par. (13)

    Source evidence

    Code amendment note
    Par. (13). Pub. L. 94–455, § 502(a), added par. (13).

    Enacted provision · exact public law section
    (a) In General.— Section 62 (defining adjusted gross income) is 26 USC 62. amended by inserting after paragraph (12) the following new paragraph: “(13) Alimony.— The deduction allowed by section 215.”

  10. Tax Treatment Extension Act of 1977

    Pub. L. 95–615 § 203(b) · 92 Stat. 3097

    Added · 26 U.S.C. § 62(14)

    Pub. L. 95–615 added par. (14)

    Source evidence

    Code amendment note
    Par. (14). Pub. L. 95–615 added par. (14).

    Enacted provision · exact public law section
    (b) Deduction Allowed in Determining Adjusted Gross Income.— Section 62 (relating to definition of adjusted gross income) is amended by inserting after paragraph (13) the following new paragraph: “(14) Deduction for certain expenses of living abroad.— Ante, p. 3100. The deduction allowed by section 913.”

  11. Pub. L. 96–451 title III § 301(b) · 94 Stat. 1983

    Added · 26 U.S.C. § 62(15)

    Pub. L. 96–451 added par. (15)

    Source evidence

    Code amendment note
    Par. (15). Pub. L. 96–451 added par. (15).

    Enacted provision · exact public law section
    (b) Adjusted Gross Income.— Section 62 of such Code (relating to definition of adjusted gross income) is amended by inserting after paragraph (14) the following: “(15) Reforestation expenses.— The deduction allowed by Ante, p 1989. section 194.”.

  12. Pub. L. 96–608 § 3(a) · 94 Stat. 3550

    Added · 26 U.S.C. § 62(16)

    Pub. L. 96–608 added par. (16)

    Source evidence

    Code amendment note
    Par. (16). Pub. L. 96–608 added par. (16).

    Enacted provision · exact public law section
    (a) General Rule.— Section 62 of the Internal Revenue Code of 1954 (defining adjusted gross income) is amended by inserting after paragraph 26 USC 62. (15) the following new paragraph: “(16) Certain required repayments of supplemental unemployment compensation benefits.— The deduction allowed by section 165 for the repayment to a trust described in paragraph 26 USC 165. 26 USC 501. (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).”

  13. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 311(h)(1) · 95 Stat. 175

    Struck · 26 U.S.C. § 62(10)

    Pub. L. 97–34, § 311(h)(1), struck out “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)” after “retirement savings”

    Source evidence

    Code amendment note
    Par. (10). Pub. L. 97–34, § 311(h)(1), struck out “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)” after “retirement savings”.

    Enacted provision · exact public law section
    (1) Paragraph (10) of section 62 (defining adjusted gross income) is amended by striking out “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)”.

  14. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 112(b)(2) · 95 Stat. 175

    Redesignated · 26 U.S.C. § 62(14)

    Pub. L. 97–34, § 112(b)(2), redesignated par. (15) as (14). Former par. (14), relating to deduction for certain expenses of living abroad, was struck out

    Source evidence

    Code amendment note
    Par. (14). Pub. L. 97–34, § 112(b)(2), redesignated par. (15) as (14). Former par. (14), relating to deduction for certain expenses of living abroad, was struck out.

    Enacted provision · exact public law section
    (2) Section 62 (relating to definition of adjusted gross income) is 26 USC 62. amended by striking out paragraph (14) and redesignating paragraphs (15) and (16) as paragraphs (14) and (15), respectively.

  15. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 112(b)(2) · 95 Stat. 175

    Redesignated · 26 U.S.C. § 62(15)

    Pub. L. 97–34, § 112(b)(2), redesignated par. (16) as (15). Former par. (15) redesignated (14)

    Source evidence

    Code amendment note
    Par. (15). Pub. L. 97–34, § 112(b)(2), redesignated par. (16) as (15). Former par. (15) redesignated (14).

    Enacted provision · exact public law section
    (2) Section 62 (relating to definition of adjusted gross income) is 26 USC 62. amended by striking out paragraph (14) and redesignating paragraphs (15) and (16) as paragraphs (14) and (15), respectively.

  16. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 title I · 95 Stat. 175

    Redesignated · 26 U.S.C. § 62(16)

    Pub. L. 97–34, §§ 103(b), 112(b)(2), added par. (16). Former par. (16) redesignated (15)

    Source evidence

    Code amendment note
    Par. (16). Pub. L. 97–34, §§ 103(b), 112(b)(2), added par. (16). Former par. (16) redesignated (15).

    Enacted provision · exact public law
    TITLE I— INDIVIDUAL INCOME TAX PROVISIONS Subtitle A— Tax Reductions SEC. 101. RATE CUTS; RATE REDUCTION CREDIT. (a) Rate Reduction.— Section 1 (relating to tax imposed) is amended to read as follows: “SECTION 1. TAX IMPOSED. “(a) Married Individuals Filing Joint Returns and Surviving Spouses.— There is hereby imposed on the taxable income of every married individual (as defined in section 143) who makes a single return jointly with his spouse under section 6013, and every surviving spouse (as defined in section 2(a)), a tax determined in accordance with the following tables: “(1) For taxable years beginning in 1982.— “If taxable income is: The tax is: Not over $3,400 No tax. Over $3,400 but not over $5,500 12% of the excess over $3,400. Over $5,500 but not over $7,600 $252, plus 14% of the excess over $5,500. Over $7,600 but not over $11,900 $546, plus 16% of the excess over $7,600. Over $11,900 but not over $16,000 $1,234, plus 19% of the excess over $11,900. Over $16,000 but not over $20,200 $2,013, plus 22% of the excess over $16,000. Over $20,200 but not over $24,600 $2,937, plus 25% of the excess over $20,200. Over $24,600 but not over $29,900 $4,037, plus 29% of the excess over $24,600. Over $29,900 but not over $35,200 $5,574, plus 33% of the excess over $29,900. Over $35,200 but not over $45,800 $7,323, plus 39% of the excess over $35,200. Over $45,800 but not over $60,000 $11,457, plus 44% of the excess over $45,800. Over $60,000 but not over $85,600 $17,705, plus 49% of the excess over $60,000. Over $85,600 $30,249, plus 50% of the excess over $85,600. “(2) For taxable years beginning in 1983.— “If taxable income is: The tax is: Not over $3,400 No tax. Over $3,400 but not over $5,500 11% of the excess over $3,400. Over $5,500 but not over $7,600 $231, plus 13% of the excess over $5,500. Over $7,600 but not over $11,900 $504, plus 15% of the excess over $7,600. Over $11,900 but not over $16,000 $1,149, plus 17% of the excess over $11,900. Over $16,000 but not over $20,200 $1,846, plus 19% of the excess over $16,000. Over $20,200 but not over $24,600 $2,644, plus 23% of the excess over $20,200. Over $24,600 but not over $29,900 $3,656, plus 26% of the excess over $24,600. “If taxable income is: The tax is: Over $29,900 but not over $35,200 $5,034, plus 30% of the excess over $29,900. Over $35,200 but not over $45,800 $6,624, plus 35% of the excess over $35,200. Over $45,800 but not over $60,000 $10,334, plus 40% of the excess over $45,800. Over $60,000 but not over $85,600 $16,014, plus 44% of the excess over $60,000. Over $85,600 but not over $109,400 $27,278, plus 48% of the excess over $85,600. Over $109,400 $38,702, plus 50% of the excess over $109,400. “(3) For taxable years beginning after 1983.— “If taxable income is: The tax is: Not over $3,400 No tax. Over $3,400 but not over $5,500 11% of the excess over $3,400. Over $5,500 but not over $7,600 $231, plus 12% of the excess over $5,500. Over $7,600 but not over $11,900 $483, plus 14% of the excess over $7,600. Over $11,900 but not over $16,000 $1,085, plus 16% of the excess over $11,900. Over $16,000 but not over $20,200 $1,741, plus 18% of the excess over $16,000. Over $20,200 but not over $24,600 $2,497, plus 22% of the excess over $20,200. Over $24,600 but not over $29,900 $3,465, plus 25% of the excess over $24,600. Over $29,900 but not over $35,200 $4,790, plus 28% of the excess over $29,900. Over $35,200 but not over $45,800 $6,274, plus 33% of the excess over $35,200. Over $45,800 but not over $60,000 $9,772, plus 38% of the excess over $45,800. Over $60,000 but not over $85,600 $15,168, plus 42% of the excess over $60,000. Over $85,600 but not over $109,400 $25,920, plus 45% of the excess over $85,600. Over $109,400 but not over $162,400 $36,630, plus 49% of the excess over $109,400. Over $162,400 $62,600, plus 50% of the excess over $162,400. “(b) Heads of Households.— There is hereby imposed on the taxable income of every individual who is the head of a household (as defined in section 2(b)) a tax determined in accordance with the 26 USC 2. following tables: “(1) For taxable years beginning in 1982.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $4,400 12% of the excess over $2,300. Over $4,400 but not over $6,500 $252, plus 14% of the excess over $4,400. Over $6,500 but not over $8,700 $546, plus 16% of the excess over $6,500. Over $8,700 but not over $11,800 $898, plus 20% of the excess over $8,700. Over $11,800 but not over $15,000 $1,518, plus 22% of the excess over $11,800. Over $15,000 but not over $18,200 $2,222, plus 23% of the excess over $15,000. Over $18,200 but not over $23,500 $2,958, plus 28% of the excess over $18,200. Over $23,500 but not over $28,800 $4,442, plus 32% of the excess over $23,500. Over $28,800 but not over $34,100 $6,138, plus 38% of the excess over $28,800. Over $34,100 but not over $44,700 $8,152, plus 41% of the excess over $34,100. “If taxable income is: The tax is: Over $44,700 but not over $60,600 $12,498, plus 49% of the excess over $44,700. Over $60,600 $20,289, plus 50% of the excess over $60,600. “(2) For taxable years beginning in 1983.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $4,400 11% of the excess over $2,300. Over $4,400 but not over $6,500 $231, plus 13% of the excess over $4,400. Over $6,500 but not over $8,700 $504, plus 15% of the excess over $6,500. Over $8,700 but not over $11,800 $834, plus 18% of the excess over $8,700. Over $11,800 but not over $15,000 $1,392, plus 19% of the excess over $11,800. Over $15,000 but not over $18,200 $2,000, plus 21% of the excess over $15,000. Over $18,200 but not over $23,500 $2,672, plus 25% of the excess over $18,200. Over $23,500 but not over $28,800 $3,997, plus 29% of the excess over $23,500. Over $28,800 but not over $34,100 $5,534, plus 34% of the excess over $28,800. Over $34,100 but not over $44,700 $7,336, plus 37% of the excess over $34,100. Over $44,700 but not over $60,600 $11,258, plus 44% of the excess over $44,700. Over $60,600 but not over $81,800 $18,254, plus 48% of the excess over $60,600. Over $81,800 $28,430, plus 50% of the excess over $81,800. “(3) For taxable years beginning after 1983.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $4,400 11% of the excess over $2,300. Over $4,400 but not over $6,500 $231, plus 12% of the excess over $4,400. Over $6,500 but not over $8,700 $483, plus 14% of the excess over $6,500. Over $8,700 but not over $11,800 $791, plus 17% of the excess over $8,700. Over $11,800 but not over $15,000 $1,318, plus 18% of the excess over $11,800. Over $15,000 but not over $18,200 $1,894, plus 20% of the excess over $15,000. Over $18,200 but not over $23,500 $2,534, plus 24% of the excess over $18,200. Over $23,500 but not over $28,800 $3,806, plus 28% of the excess over $23,500. Over $28,800 but not over $34,100 $5,290, plus 32% of the excess over $28,800. Over $34,100 but not over $44,700 $6,986, plus 35% of the excess over $34,100. Over $44,700 but not over $60,600 $10,696, plus 42% of the excess over $44,700. Over $60,600 but not over $81,800 $17,374, plus 45% of the excess over $60,600. Over $81,800 but not over $108,300 $26,914, plus 48% of the excess over $81,800. Over $108,300 $39,634, plus 50% of the excess over $108,300. “(c) Unmarried Individuals (Other Than Surviving Spouses and Heads or Households).— There is hereby imposed on the taxable income of every individual (other than a surviving spouse as 26 USC 2. defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 143) a tax determined in accordance with the following tables: “(1) For taxable years beginning in 1982.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $3,400 12% of the excess over $2,300. Over $3,400 but not over $4,400 $132, plus 14% of the excess over $3,400. Over $4,400 but not over $6,500 $272, plus 16% of the excess over $4,400. Over $6,500 but not over $8,500 $608, plus 17% of the excess over $6,500. Over $8,500 but not over $10,800 $948, plus 19% of the excess over $8,500. Over $10,800 but not over $12,900 $1,385, plus 22% of the excess over $10,800. Over $12,900 but not over $15,000 $1,847, plus 23% of the excess over $12,900. Over $15,000 but not over $18,200 $2,330, plus 27% of the excess over $15,000. Over $18,200 but not over $23,500 $3,194, plus 31% of the excess over $18,200. Over $23,500 but not over $28,800 $4,837, plus 35% of the excess over $23,500. Over $28,800 but not over $34,100 $6,692, plus 40% of the excess over $28,800. Over $34,100 but not over $41,500 $8,812, plus 44% of the excess over $34,100. Over $41,500 $12,068, plus 50% of the excess over $41,500. “(2) For taxable years beginning in 1983.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $3,400 11% of the excess over $2,300. Over $3,400 but not over $4,400 $121, plus 13% of the excess over $3,400. Over $4,400 but not over $8,500 $251, plus 15% of the excess over $4,400. Over $8,500 but not over $10,800 $866, plus 17% of the excess over $8,500. Over $10,800 but not over $12,900 $1,257, plus 19% of the excess over $10,800. Over $12,900 but not over $15,000 $1,656, plus 21% of the excess over $12,900. Over $15,000 but not over $18,200 $2,097, plus 24% of the excess over $15,000. Over $18,200 but not over $23,500 $2,865, plus 28% of the excess over $18,200. Over $23,500 but not over $28,800 $4,349, plus 32% of the excess over $23,500. Over $28,800 but not over $34,100 $6,045, plus 36% of the excess over $28,800. Over $34,100 but not over $41,500 $7,953, plus 40% of the excess over $34,100. Over $41,500 but not over $55,300 $10,913, plus 45% of the excess over $41,500. Over $55,300 $17,123, plus 50% of the excess over $55,300. “(3) For taxable years beginning after 1983.— “If taxable income is: The tax is: Not over $2,300 No tax. Over $2,300 but not over $3,400 11% of the excess over $2,300. Over $3,400 but not over $4,400 $121, plus 12% of the excess over $3,400. Over $4,400 but not over $6,500 $241, plus 14% of the excess over $4,400. Over $6,500 but not over $8,500 $535, plus 15% of the excess over $6,500. Over $8,500 but not over $10,800 $835, plus 16% of the excess over $8,500. Over $10,800 but not over $12,900 $1,203, plus 18% of the excess over $10,800. “If taxable income is: The tax is: Over $12,900 but not over $15,000 $1,581, plus 20% of the excess over $12,900. Over $15,000 but not over $18,200 $2,001, plus 23% of the excess over $15,000. Over $18,200 but not over $23,500 $2,737, plus 26% of the excess over $18,200. Over $23,500 but not over $28,800 $4,115, plus 30% of the excess over $23,500. Over $28,800 but not over $34,100 $5,705, plus 34% of the excess over $28,800. Over $34,100 but not over $41,500 $7,507, plus 38% of the excess over $34,100. Over $41,500 but not over $55,300 $10,319, plus 42% of the excess over $41,500. Over $55,300 but not over $81,800 $16,115, plus 48% of the excess over $55,300. Over $81,800 $28,835, plus 50% of the excess over $81,800. “(d) Married Individuals Filing Separate Returns.— There is hereby imposed on the taxable income of every married individual (as 26 USC 143. defined in section 143) who does not make a single return jointly with his spouse under section 6013 a tax determined in accordance with the following tables: “(1) For taxable years beginning in 1982.— “If taxable income is: The tax is: Not over $1,700 No tax. Over $1,700 but not over $2,750 12% of the excess over $1,700. Over $2,750 but not over $3,800 $126, plus 14% of the excess over $2,750. Over $3,800 but not over $5,950 $273, plus 16% of the excess over $3,800. Over $5,950 but not over $8,000 $617, plus 19% of the excess over $5,950. Over $8,000 but not over $10,100 $1,006, plus 22% of the excess over $8,000. Over $10,100 but not over $12,300 $1,468, plus 25% of the excess over $10,100. Over $12,300 but not over $14,950 $2,018, plus 29% of the excess over $12,300. Over $14,950 but not over $17,600 $2,787, plus 33% of the excess over $14,950. Over $17,600 but not over $22,900 $3,661, plus 39% of the excess over $17,600. Over $22,900 but not over $30,000 $5,728, plus 44% of the excess over $22,900. Over $30,000 but not over $42,800 $8,852, plus 49% of the excess over $30,000. Over $42,800 $15,124, plus 50% of the excess over $42,800. “(2) For taxable years beginning in 1983.— “If taxable income is: The tax is: Not over $1,700 No tax. Over $1,700 but not over $2,750 11% of the excess over $1,700. Over $2,750 but not over $3,800 $115, plus 13% of the excess over $2,750. Over $3,800 but not over $5,950 $252, plus 15% of the excess over $3,800. Over $5,950 but not over $8,000 $574, plus 17% of the excess over $5,950. Over $8,000 but not over $10,100 $923, plus 19% of the excess over $8,000. Over $10,100 but not over $12,300 $1,322, plus 23% of the excess over $10,100. Over $12,300 but not over $14,950 $1,828, plus 26% of the excess over $12,300. Over $14,950 but not over $17,600 $2,517, plus 30% of the excess over $14,950. “If taxable income is: The tax is: Over $17,600 but not over $22,900 $3,312, plus 85% of the excess over $17,600. Over $22,900 but not over $30,000 $5,167, plus 40% of the excess over $22,900. Over $30,000 but not over $42,800 $8,007, plus 44% of the excess over $30,000. Over $42,800 but not over $54,700 $13,639, plus 48% of the excess over $42,800. Over $54,700 $19,351, plus 50% of the excess over $54,700. “(3) For taxable years beginning after 1983.— “If taxable income is: The tax is: Not over $1,700 No tax. Over $1,700 but not over $2,750 11% of the excess over $1,700. Over $2,750 but not over $3,800 $115, plus 12% of the excess over $2,750. Over $3,800 but not over $5,950 $241, plus 14% of the excess over $3,800. Over $5,950 but not over $8,000 $542, plus 16% of the excess over $5,950. Over $8,000 but not over $10,100 $870, plus 18% of the excess over $8,000. Over $10,100 but not over $12,300 $1,248, plus 22% of the excess over $10,100. Over $12,300 but not over $14,950 $1,732, plus 25% of the excess over $12,300. Over $14,950 but not over $17,600 $2,395, plus 28% of the excess over $14,950. Over $17,600 but not over $22,900 $3,137, plus 33% of the excess over $17,600. Over $22,900 but not over $30,000 $4,886, plus 38% of the excess over $22,900. Over $30,000 but not over $42,800 $7,584, plus 42% of the excess over $30,000. Over $42,800 but not over $54,700 $12,960, plus 45% of the excess over $42,800. Over $54,700 but not over $81,200 $18,315, plus 49% of the excess over $54,700. Over $81,200 $31,300, plus 50% of the excess over $81,200. “(e) Estates and Trusts.— There is hereby imposed on the taxable income of every estate and trust taxable under this subsection a tax determined in accordance with the following tables: “(1) For taxable years beginning in 1982.— “If taxable income is: The tax is: Not over $1,050 12% of taxable income. Over $1,050 but not over $2,100 $126, plus 14% of the excess over $1,050. Over $2,100 but not over $4,250 $273, plus 16% of the excess over $2,100. Over $4,250 but not over $6,300 $617, plus 19% of the excess over $4,250. Over $6,300 but not over $8,400 $1,006, plus 22% of the excess over $6,300. Over $8,400 but not over $10,600 $1,468, plus 25% of the excess over $8,400. Over $10,600 but not over $13,250 $2,018, plus 29% of the excess over $10,600. Over $13,250 but not over $15,900 $2,787, plus 33% of the excess over $13,250. Over $15,900 but not over $21,200 $3,661, plus 39% of the excess over $15,900. Over $21,200 but not over $28,300 $5,728, plus 44% of the excess over $21,200. Over $28,300 but not over $41,100 $8,852, plus 49% of the excess over $28,300. Over $41,100 $15,124, plus 50% of the excess over $41,100. “(2) For taxable years beginning in 1983.— “If taxable income is: The tax is: Not over $1,050 11% of taxable income. Over $1,050 but not over $2,100 $115, plus 13% of the excess over $1,050. Over $2,100 but not over $4,250 $252, plus 15% of the excess over $2,100. Over $4,250 but not over $6,300 $574, plus 17% of the excess over $4,250. Over $6,300 but not over $8,400 $923, plus 19% of the excess over $6,300. Over $8,400 but not over $10,600 $1,322, plus 23% of the excess over $8,400. Over $10,600 but not over $13,250 $1,828, plus 26% of the excess over $10,600. Over $13,250 but not over $15,900 $2,517, plus 30% of the excess over $13,250. Over $15,900 but not over $21,200 $3,312, plus 35% of the excess over $15,900. Over $21,200 but not over $28,300 $5,167, plus 40% of the excess over $21,200. Over $28,300 but not over $41,100 $8,007, plus 44% of the excess over $28,300. Over $41,100 but not over $53,000 $13,639, plus 48% of the excess over $41,100. Over $53,000 $19,351, plus 50% of the excess over $53,000. “(3) For taxable years beginning after 1983.— “If taxable income is: The tax is: Not over $1,050 11% of taxable income. Over $1,050 but not over $2,100 $115, plus 12% of the excess over $1,050. Over $2,100 but not over $4,250 $241, plus 14% of the excess over $2,100. Over $4,250 but not over $6,300 $542, plus 16% of the excess over $4,250. Over $6,300 but not over $8,400 $870, plus 18% of the excess over $6,300. Over $8,400 but not over $10,600 $1,248, plus 22% of the excess over $8,400. Over $10,600 but not over $13,250 $1,732, plus 25% of the excess over $10,600. Over $13,250 but not over $15,900 $2,395, plus 28% of the excess over $13,250. Over $15,900 but not over $21,200 $3,137, plus 33% of the excess over $15,900. Over $21,200 but not over $28,300 $4,886, plus 38% of the excess over $21,200. Over $28,300 but not over $41,100 $7,584, plus 42% of the excess over $28,300. Over $41,100 but not over $53,000 $12,960, plus 45% of the excess over $41,100. Over $53,000 but not over $79,500 $18,315, plus 49% of the excess over $53,000. Over $79,500 $31,300, plus 50% of the excess over $79,500.” (b) Credit To Reflect Equivalent 1981 Rate Reduction.— (1) In general.— Section 6428 (relating to refund of 1974 individual income taxes) is amended to read as follows: “SEC. 6428. 1981 RATE REDUCTION TAX CREDIT. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by section 1, or against a tax imposed in lieu of the tax imposed by section 1, for any taxable year beginning in 1981, an amount equal to the product of— “(1) 1.25 percent, multiplied by “(2) the amount of tax imposed by section 1 (or in lieu thereof) for such taxable year. “(b) Special Rules for Application of This Section.— “(1) Application with other credits.— In determining any credit allowed under subpart A of part IV of subchapter A of chapter 1 (other than under sections 31, 39, and 43), the tax imposed by chapter 1 shall (before any other reductions) be reduced by the credit allowed under subsection (a). “(2) Credit treated as subpart a credit.— For purposes of this title, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart A of part IV of subchapter A of chapter 1. “(c) Tables To Reflect Credit.— “(1) Section 3 tables.— The tables prescribed by the Secretary under section 3 shall reflect the credit allowed under subsection (a). “(2) Other tables.— In order to reflect the amount of the credit under subsection (a) for different levels of tax or taxable income, the Secretary may— “(A) modify the tables under section 1, or “(B) prescribe such other tables as he determines necessary.” (2) Conforming amendments.— (A) The table of sections for subchapter B of chapter 65 is amended by striking out the item relating to section 6428 and inserting in lieu thereof the following new item: “Sec. 6428. 1981 rate reduction tax credit.” (B) Paragraph (1) of section 3(a) (relating to imposition of 26 USC 3. tax table tax) is amended by inserting “and which shall be in such form as he determines appropriate” after “Secretary”. (C) Subsection (a) of section 3 (relating to tax tables for individuals) is amended by adding at the end thereof the following new paragraph: “(5) Section may be applied on the basis of taxable income.— The Secretary may provide that this section shall be applied for any taxable year on the basis of taxable income in lieu of tax table income.” (c) Repeal of Maximum Tax on Personal Service Income.— (1) In general.— Part VI of subchapter Q of chapter 1 (relating Repeal. 26 USC 1348. to maximum rate on personal service income) is repealed. (2) Conforming amendments.— (A) Paragraph (1) of section 3(b) (relating to tax tables for individuals) is amended to read as follows: “(1) an individual to whom section 1301 (relating to income averaging) applies for the taxable year,”. (B) Subsection (b) of section 1304 (relating to special rules 26 USC 1304. for income averaging) is amended— (i) by inserting “and” at the end of paragraph (1), (ii) by striking out “, and” at the end of paragraph (2) and inserting in lieu thereof a period, and (iii) by striking out paragraph (3). (C) The table of parts for subchapter Q of chapter 1 is amended by striking out the item relating to part VI. (d) Conforming Amendments.— (1) Alternative minimum tax.— Paragraph (1) of section 55(a) 26 USC 55. (relating to alternative minimum tax) is amended— (A) by striking out all that follows “$60,000” in subparagraph (B) and inserting in lieu thereof “, exceeds”, and (B) by striking out subparagraph (C). (2) Personal holding company tax.— Section 541 (relating to personal holding company tax) is amended by striking out “70 percent” and inserting in lieu thereof “50 percent”. (3) Amendment to section 21.— Section 21 (relating to effect of changes in rates during taxable year) is amended by striking out subsections (d), (e), and (f) and inserting in lieu thereof the following: “(d) Section Not To Apply to Section 1 Rate Changes Made by Economic Recovery Tax Act of 1981.— This section shall not apply to any change in rates under section 1 attributable to the amendments made by section 101 of the Economic Recovery Tax Act of Ante, p. 176. 1981 or subsection (f) of section 1 (relating to adjustments in tax tables so that inflation will not result in tax increases).” (e) Withholding Tables.— (1) Determination of withholding.— Section 3402(a) (relating to requirement of withholding income tax at source) is amended to read as follows: “(a) Requirement of Withholding.— “(1) In general.— Except as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with tables or computational procedures prescribed by the Secretary. Any tables or procedures prescribed under this paragraph shall— “(A) apply with respect to the amount of wages paid during such periods as the Secretary may prescribe, and “(B) be in such form, and provide for such amounts to be deducted and withheld, as the Secretary determines to be most appropriate to carry out the purposes of this chapter and to reflect the provisions of chapter 1 applicable to such periods. “(2) Amount of wages.— For purposes of applying tables or procedures prescribed under paragraph (1), the term ‘the amount of wages’ means the amount by which the wages exceed the number of withholding exemptions claimed multiplied by the amount of one such exemption. The amount of each withholding exemption shall be equal to the amount of one personal exemption provided in section 151(b), prorated to the payroll period. The maximum number of withholding exemptions permitted shall be calculated in accordance with regulations prescribed by the Secretary under this section, taking into account any reduction in withholding to which an employee is entitled under this section. “(3) Changes made by section 101 of the economic recovery tax act of 1981.— Notwithstanding the provisions of this subsection, the Secretary shall modify the tables and procedures under paragraph (1) to reflect— “(A) the amendments made by section 101(b) of the Economic Recovery Tax Act of 1981, and such modification shall take effect on October 1, 1981, as if such amendments made a 5-percent reduction effective on such date, and “(B) the amendments made by section 101(a) of such Act, and such modifications shall take effect— “(i) on July 1, 1982, as if the reductions in the rate of tax under section 1 (as amended by such section) were attributable to a 10-percent reduction effective on such date, and “(ii) on July 1, 1983, as if such reductions were attributable to a 10-percent reduction effective on such date.” (2) Wages paid for period less than 1 week.— Section 3402(b) 26 USC 3402. (relating to the percentage method of withholding) is amended— (A) by striking out paragraph (1), and redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively; and (B) by striking out paragraph (3), as redesignated by subparagraph (A), and inserting in lieu thereof the following: “(3) In any case in which the period, or the time described in paragraph (2), in respect of any wages is less than one week, the Secretary, under regulations prescribed by him, may authorize an employer to compute the tax to be deducted and withheld as if the aggregate of the wages paid to the employee during the calendar week were paid for a weekly payroll period.” (3) Zero bracket amount.— Paragraph (1)(G) of section 3402(f) (relating to withholding exemptions) is amended by inserting “(or more than one exemption if so prescribed by the Secretary)” after “one exemption”. (4) Changes in withholding.— Section 3402(i) (relating to additional withholding) is amended to read as follows: “(i) Changes in withholding.— “(1) In general.— The Secretary may by regulations provide for increases or decreases in the amount of withholding otherwise required under this section in cases where the employee requests such changes. “(2) Treatment as tax.— Any increased withholding under paragraph (1) shall for all purposes be considered tax required to be deducted and withheld under this chapter.” (5) Withholding allowances.— Subsection (m) of section 3402 (relating to withholding allowances based on itemized deductions) is amended to read as follows: “(m) Withholding Allowances.— Under regulations prescribed by the Secretary, an employee shall be entitled to additional withholding allowances or additional reductions in withholding under this subsection. In determining the number of additional withholding allowances or the amount of additional reductions in withholding under this subsection, the employee may take into account (to the extent and in the manner provided by such regulations)— “(1) estimated itemized deductions allowable under chapter 1 (other than the deductions referred to in section 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) (other than paragraph (13) thereof), “(2) estimated tax credits allowable under chapter 1, and “(3) such additional deductions and other items as may be specified by the Secretary in regulations.” (f) Effective Dates.— (1) In General.— The amendments made by subsections (a), (c), 26 USC 1 note. and (d) shall apply to taxable years beginning after December 31, 1981. (2) Withholding Amendments.— The amendments made by 26 USC 3402 note. subsection (e) shall apply to remuneration paid after September 30, 1981; except that the amendment made by subsection (e)(5) shall apply to remuneration paid after December 31, 1981. SEC. 102. 20-PERCENT MAXIMUM RATE ON NET CAPITAL GAIN FOR PORTION OF 1981. (a) In General.— If for any taxable year ending after June 9, 1981, and beginning before January 1, 1982, a taxpayer other than a corporation has qualified net capital gain, then the tax imposed 26 USC 1. under section 1 of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of— (1) the tax imposed under such section determined without regard to this subsection, or (2) the sum of— (A) the tax imposed under such section on the excess of— (i) the taxable income of the taxpayer, over (ii) 40 percent of the qualified net capital gain of the taxpayer, and (B) 20 percent of the qualified net capital gain. (b) Application With Alternative Minimum Tax.— (1) In general.— If subsection (a) applies to any taxpayer for any taxable year, then the amount determined under section 55(a)(1) of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of— (A) the amount determined under such section 55(a)(1) determined without regard to this subsection, or (B) the sum of— (i) the amount which would be determined under such section 55(a)(1) if the alternative minimum taxable income was the excess of— (I) the alternative minimum taxable income (within the meaning of section 55(b)(1) of such Code) of the taxpayer, over (II) the qualified net capital gain of the taxpayer, and (ii) 20 percent of the qualified net capital gain. (2) No credits allowable.— For purposes of section 55(c) of such Code, no credit allowable under subpart A of part IV of subchapter A of chapter 1 of such Code (other than section 33(a) of such Code) shall be allowable against the amount described in paragraph (1)(B)(ii). (c) Qualified Net Capital Gain.— (1) In general.— For purposes of this section, the term “qualified net capital gain” means the lesser of— (A) the net capital gain for the taxable year, or (B) the net capital gain for the taxable year taking into account only gain or loss from sales or exchanges occurring after June 9, 1981. (2) Net capital gain.— For purposes of this subsection, the term “net capital gain” has the meaning given such term by section 1222(11) of the Internal Revenue Code of 1954. (d) Special Rule for Pass-Thru Entities.— (1) In general.— In applying subsections (a), (b), and (c) with respect to any pass-thru entity, the determination of when a sale or exchange has occurred shall be made at the entity level. (2) Pass-thru entity defined.— For purposes of paragraph (1), the term “pass-thru entity” means— (A) a regulated investment company, (B) a real estate investment trust, (C) an electing small business corporation, (D) a partnership, (E) an estate or trust, and (F) a common trust fund. SEC. 103. DEDUCTION FOR TWO-EARNER MARRIED COUPLES. (a) In General.— Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 221 as section 222 and by inserting after section 220 the Post, p. 201. following new section: “SEC. 221. DEDUCTION FOR TWO-EARNER MARRIED COUPLES. “(a) Deduction Allowed.— “(1) In general.— In the case of a joint return under section 6013 for the taxable year, there shall be allowed as a deduction an amount equal to 10 percent of the lesser of— “(A) $30,000, or “(B) the qualified earned income of the spouse with the lower qualified earned income for such taxable year. “(2) Special rule for 1982.— In the case of a taxable year beginning during 1982, paragraph (1) shall be applied by substituting ‘5 percent’ for ‘10 percent’. “(b) Qualified Earned Income Defined.— (1) In general.— For purposes of this section, the term ‘qualified earned income’ means an amount equal to the excess of— “(A) the earned income of the spouse for the taxable year, over “(B) an amount equal to the sum of the deductions described in paragraphs (1), (2), (7), (9), (10), and (15) of section 62 to the extent such deductions are properly allocable to or chargeable against earned income described in subparagraph (A). The amount of qualified earned income shall be determined without regard to any community property laws. “(2) Earned income.— For purposes of paragraph (1), the term ‘earned income’ means income which is earned income within the meaning of section 911(d)(2) or 401(c)(2)(C), except that— Post, p. 190. “(A) such term shall not include any amount— “(i) not includible in gross income, “(ii) received as a pension or annuity, “(iii) paid or distributed out of an individual retirement plan (within the meaning of section 7701(a)(37)), “(iv) received as deferred compensation, or “(v) received for services performed by an individual in the employ of his spouse (within the meaning of section 3121(b)(3)(A)), and “(B) section 911(d)(2)(B) shall be applied without regard to the phrase ‘not in excess of 30 percent of his share of net profits of such trade or business’. “(c) Deduction Disallowed for Individual Claiming Benefits of Section 911 or 931.— No deduction shall be allowed under this section for any taxable year if either spouse claims the benefits of section 911 or 931 for such taxable year.”. (b) Deduction Allowed in Computing Adjusted Gross Income.— Section 62 (defining adjusted gross income), as amended by section 26 USC 62. Post, p. 194. 112(b)(2) of this Act, is amended by inserting after paragraph (15) the following new paragraph: “(16) Deduction for two-earner married couples.— The deduction allowed by section 221.” (c) Other Conforming Amendments.— (1) Subsection (a) of section 85 (relating to unemployment compensation) is amended by striking out “and without regard to section 105(d)” and inserting in lieu thereof “, section 105(d), and section 221”. (2) Subsection (d)(3) of section 105 (relating to amounts received under accident and health plans) is amended by inserting “and section 221” after “subsection” the first place it appears. (3) The table of sections for such part VII is amended by striking out the item relating to section 221 and inserting in lieu thereof the following new items: “Sec. 221. Deduction for two-earner married couples. “Sec. 222. Cross references.” (d) Effective Dates.— The amendments made by this section shall apply to taxable years beginning after December 31, 1981. SEC. 104. ADJUSTMENT TO PREVENT INFLATION-CAUSED TAX INCREASE. (a) Adjustments to Individual Income Tax Brackets.— Section 1 (relating to tax imposed) is amended by adding at the end thereof the following new subsection: “(f) Adjustments in Tax Tables so That Inflation Will Not Result In Tax Increases.— “(1) In general.— Not later than December 15 of 1984 and each subsequent calendar year, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in paragraph (3) of subsections (a), (b), (c), (d), and (e) with respect to taxable years beginning in the succeeding calendar year. “(2) Method of prescribing tables.— The table which under paragraph (1) is to apply in lieu of the table contained in paragraph (3) of subsection (a), (b), (c), (d), or (e), as the case may be, with respect to taxable years beginning in any calendar year shall be prescribed— “(A) by increasing— “(i) the maximum dollar amount on which no tax is imposed under such table, and (ii) the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed under such table, by the cost-of-living adjustment for such calendar year, “(B) by not changing the rate applicable to any rate bracket as adjusted under subparagraph (A)(ii), and “(C) by adjusting the amounts setting forth the tax to the extent necessary to reflect the adjustments in the rate brackets. If any increase determined under subparagraph (A) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or if such increase is a multiple of $5, such increase shall be increased to the next highest multiple of $10). “(3) Cost-of-living adjustment.— For purposes of paragraph (2), the cost-of-living adjustment for any calendar year is the percentage (if any) by which— “(A) the CPI for the preceding calendar year, exceeds “(B) the CPI for the calendar year 1983. “(4) CPI for any calendar year.— For purposes of paragraph (3), the CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on September 30 of such calendar year. (5) Consumer price index.— For purposes of paragraph (4), the term ‘Consumer Price Index’ means the last Consumer Price Index for all-urban consumers published by the Department of Labor.” (b) Definition of Zero Bracket Amount.— Subsection (d) of section 63 (defining zero bracket amount) is amended to read as follows: 26 USC 63. “(d) Zero Bracket Amount.— For purposes of this subtitle, the term ‘zero bracket amount’ means— “(1) in the case of an individual to whom subsection (a), (b), (c), or (d) of section 1 applies, the maximum amount of taxable income on which no tax is imposed by the applicable subsection of section 1, or “(2) zero in any other case.” (c) Personal Exemptions.— (1) General rule.— Section 151 (relating to allowance of 26 USC 151. deductions for personal exemptions) is amended by striking out “$1,000” each place it appears and inserting in lieu thereof “the exemption amount”. (2) Exemption amount.— Section 151 is amended by adding at the end thereof the following new subsection: “(f) Exemption Amount.— For purposes of this section, the term ‘exemption amount’ means, with respect to any taxable year, $1,000 increased by an amount equal to $1,000 multiplied by the cost-of-living adjustment (as defined in section 1(f)(3)) for the calendar year in which the taxable year begins. If the amount determined under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10 (or if such amount is a multiple of $5, such amount shall be increased to the next highest multiple of $10).” (d) Return Requirements.— (1) Amendments to section 6012.— (A) Clause (i) of section 6012(a)(1)(A) is amended by striking out “$3,300” and inserting in lieu thereof “the sum of the exemption amount plus the zero bracket amount applicable to such an individual”. (B) Clause (ii) of section 6012(a)(1)(A) is amended by striking out “$4,400” and inserting in lieu thereof “the sum of the exemption amount plus the zero bracket amount applicable to such an individual”. (C) Clause (iii) of section 6012(a)(1)(A) is amended by striking out “$5,400” and inserting in lieu thereof “the sum of twice the exemption amount plus the zero bracket amount applicable to a joint return”. (D) Paragraph (1) of section 6012(a) is amended by striking out “$1,000” each place it appears and inserting in lieu thereof “the exemption amount”. (E) Paragraph (1) of section 6012(a) is amended by adding at the end thereof the following new subparagraph: “(D) For purposes of this paragraph— “(i) The term ‘zero bracket amount’ has the meaning “Zero bracket amount.” given to such term by section 63(d). “(ii) The term ‘exemption amount’ has the meaning “Exemption amount.” given to such term by section 151(f).” (2) Amendments to section 6013.— Subparagraph (A) of section 26 USC 6013. 6013(b)(3) is amended— (A) by striking out “$1,000” each place it appears and inserting in lieu thereof “the exemption amount”, (B) by striking out “$2,000” each place it appears and inserting in lieu thereof “twice the exemption amount”, and (C) by adding at the end thereof the following new sentence: “Exemption amount.” “For purposes of this subparagraph, the term ‘exemption amount’ has the meaning given to such term by section 151(f).” (e) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1984. Subtitle B— Income Earned Abroad SEC. 111. PARTIAL EXCLUSION FOR EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES AND FOREIGN HOUSING COSTS. (a) In General.— Section 911 (relating to income earned by individuals in certain camps) is amended to read as follows: “SEC. 911. CITIZENS OR RESIDENTS OF THE UNITED STATES LIVING ABROAD. “(a) Exclusion From Gross Income.— At the election of a qualified individual (made separately with respect to paragraphs (1) and (2)), there shall be excluded from the gross income of such individual, and exempt from taxation under this subtitle, for any taxable year— “(1) the foreign earned income of such individual, and “(2) the housing cost amount of such individual. “(b) Foreign Earned Income.— “(1) Definition.— For purposes of this section— “(A) In general.— The term ‘foreign earned income’ with respect to any individual means the amount received by such individual from sources within a foreign country or countries which constitute earned income attributable to services performed by such individual during the period described in subparagraph (A) or (B) of subsection (d)(1), whichever is applicable. (B) Certain amounts not included in foreign earned income.— The foreign earned income for an individual shall not include amounts— “(i) received as a pension or annuity, “(ii) paid by the United States or an agency thereof to an employee of the United States or an agency thereof, “(iii) included in gross income by reason of section 402(b) (relating to taxability of beneficiary of nonexempt trust) or section 403(c) (relating to taxability of beneficiary under a nonqualified annuity), or “(iv) received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed. “(2) Limitation on foreign earned income.— “(A) In general.— The foreign earned income of an individual which may be excluded under subsection (a)(1) for any taxable year shall not exceed the amount of foreign earned income computed on a daily basis at the annual rate set forth in the following table for each day of the taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1): “In the case of taxable years beginning in: The annual rate is:  1982 $75,000  1983 80,000 “In the case of taxable years beginning in: The annual rate is:  1984 $85,000  1985 90,000  1986 and thereafter 95,000.00 “(B) Attribution to year in which services are performed.— For purposes of applying subparagraph (A), amounts received shall be considered received in the taxable year in which the services to which the amounts are attributable are performed. “(C) Treatment of community income.— In applying subparagraph (A) with respect to amounts received from services performed by a husband or wife which are community income under community property laws applicable to such income, the aggregate amount which may be excludable from the gross income of such husband and wife under subsection (a)(1) for any taxable year shall equal the amount which would be so excludable if such amounts did not constitute community income. “(c) Housing Cost Amount.— For purposes of this section— “(1) In general.— The term ‘housing cost amount’ means an amount equal to the excess of— “(A) the housing expenses of an individual for the taxable year, over “(B) an amount equal to the product of— “(i) 16 percent of the salary (computed on a daily basis) of an employee of the United States who is compensated at a rate equal to the annual rate paid for step 1 of grade GS–14, multiplied by “(ii) the number of days of such taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1). “(2) Housing expenses.— “(A) In general.— The term ‘housing expenses’ means the reasonable expenses paid or incurred during the taxable year by or on behalf of an individual for housing for the individual (and, if they reside with him, for his spouse and dependents) in a foreign country. The term— “(i) includes expenses attributable to the housing (such as utilities and insurance), but “(ii) does not include interest and taxes of the kind deductible under section 168 or 164 or any amount 26 USC 163, 164. allowable as a deduction under section 216(a). Housing expenses shall not be treated as reasonable to the extent such expenses are lavish or extravagant under the circumstances. “(B) Second foreign household.— “(i) In general.— Except as provided in clause (ii), only housing expenses incurred with respect to that abode which bears the closest relationship to the tax home of the individual shall be taken into account under paragraph (1). “(ii) Separate household for spouse and dependents.— If an individual maintains a separate abode outside the United States for his spouse and dependents and they do not reside with him because of living conditions which are dangerous, unhealthful, or otherwise adverse, then— “(I) the words ‘if they reside with him’ in subparagraph (A) shall be disregarded, and “(II) the housing expenses incurred with respect to such abode shall be taken into account under paragraph (1). “(3) Special rules where housing expenses not provided by employer.— “(A) In general.— To the extent the housing cost amount of any individual for any taxable year is not attributable to employer provided amounts, such amount shall be treated as a deduction allowable in computing adjusted gross income to the extent of the limitation of subparagraph (B). “(B) Limitation.— For purposes of subparagraph (A), the limitation of this subparagraph is the excess of— “(i) the foreign earned income of the individual for the taxable year, over “(ii) the amount of such income excluded from gross income under subsection (a)(1) for the taxable year. “(C) 1-year carryover of housing amounts not allowed by reason of subparagraph (b).— “(i) In general.— The amount not allowable as a deduction for any taxable year under subparagraph (A) by reason of the limitation of subparagraph (B) shall be treated as a deduction allowable in computing adjusted gross income for the succeeding taxable year (and only for the succeeding taxable year) to the extent of the limitation of clause (ii) for such succeeding taxable year. “(ii) Limitation.— For purposes of clause (i), the limitation of this clause for any taxable year is the excess of— “(I) the limitation of subparagraph (B) for such taxable year, over “(II) amounts treated as a deduction under subparagraph (A) for such taxable year. “(D) Employer provided amounts.— For purposes of this paragraph, the term ‘employer provided amounts’ means any amount paid or incurred on behalf of the individual by the individual’s employer which is foreign earned income included in the individual’s gross income for the taxable year (without regard to this section). “(E) Foreign earned income.— For purposes of this paragraph, an individual’s foreign earned income for any taxable year shall be determined without regard to the limitation of subparagraph (A) of subsection (b)(2). “(d) Definitions and Special Rules.— For purposes of this section— “(1) Qualified individual.— The term ‘qualified individual’ means an individual whose tax home is in a foreign country and who is— “(A) a citizen of the United States and establishes to the satisfaction of the Secretary that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, or “(B) a citizen or resident of the United States and who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days in such period. “(2) Earned income.— “(A) In general.— The term ‘earned income’ means wages, salaries, or professional fees, and other amounts received as compensation for personal services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by him to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. “(B) Taxpayer engaged in trade or business.— In the case of a taxpayer engaged in a trade or business in which both personal services and capital are material income-producing factors, under regulations prescribed by the Secretary, a reasonable allowance as compensation for the personal services rendered by the taxpayer, not in excess of 30 percent of his share of the net profits of such trade or business, shall be considered as earned income. “(3) Tax home.— The term ‘tax home’ means, with respect to any individual, such individual’s home for purposes of section 162(a)(2) (relating to traveling expenses while away from home). 26 USC 162. An individual shall not be treated as having a tax home in a foreign country for any period for which his abode is within the United States. “(4) Waiver of period of stay in foreign country.— Notwithstanding paragraph (1), an individual who— “(A) is a bona fide resident of, or is present in, a foreign country for any period, “(B) leaves such foreign country after August 31, 1978— “(i) during any period during which the Secretary determines, after consultation with the Secretary of State or his delegate, that individuals were required to leave such foreign country because of war, civil unrest, or similar adverse conditions in such foreign country which precluded the normal conduct of business by such individuals, and “(ii) before meeting the requirements of such paragraph (1), and “(C) establishes to the satisfaction of the Secretary that such individual could reasonably have been expected to have met such requirements but for the conditions referred to in clause (i) of subparagraph (B), shall be treated as a qualified individual with respect to the period described in subparagraph (A) during which he was a bona fide resident of, or was present in, the foreign country, and in applying subsections (b)(2)(A) and (c)(1)(B)(ii) with respect to such individual, only the days within such period shall be taken into account. “(5) Test of bona fide residence.— If— “(A) an individual who has earned income from sources within a foreign country submits a statement to the authorities of that country that he is not a resident of that country, and “(B) such individual is held not subject as a resident of that country to the income tax of that country by its authorities with respect to such earnings, then such individual shall not be considered a bona fide resident of that country for purposes of paragraph (1)(A). “(6) Denial of double benefits.— No deduction or exclusion from gross income under this subtitle or credit against the tax imposed by this chapter (including any credit or deduction for the amount of taxes paid or accrued to a foreign country or possession of the United States) shall be allowed to the extent such deduction, exclusion, or credit is properly allocable to or chargeable against amounts excluded from gross income under subsection (a). “(7) Regulations.— The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations providing rules— “(A) for cases where a husband and wife each have earned income from sources outside the United States, and “(B) for married individuals filing separate returns. “(e) Election.— “(1) In general.— An election under subsection (a) shall apply to the taxable year for which made and to all subsequent taxable years unless revoked under paragraph (2). “(2) Revocation.— A taxpayer may revoke an election made under paragraph (1) for any taxable year after the taxable year for which such election was made. Except with the consent of the Secretary, any taxpayer who makes such a revocation for any taxable year may not make another election under this section for any subsequent taxable year before the 6th taxable year after the taxable year for which such revocation was made. “(f) Cross References.— “For administrative and penal provisions relating to the exclusions provided for in this section, see sections 6001, 6011, 6012(c), and the other provisions of subtitle F.” (b) Conforming Amendments.— (1) The table of sections for subpart B of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 911 and inserting in lieu thereof the following: “Sec. 911. Citizens or residents of the United States living abroad.” (2) Section 43(c)(1)(C)(i) is amended by striking out “relating to income earned by individuals in certain camps outside the United States” and inserting in lieu thereof “relating to citizens or residents of the United States living abroad”. (3) Sections 1302(b)(2)(A)(i), 1304(b)(1), 1402(a)(8), 6012(c), and 6091(b)(1)(B)(iii) are each amended by striking out “relating to income earned by employees in certain camps” and inserting in lieu thereof “relating to citizens or residents of the United States living abroad”. (4) Sections 37(e)(9)(B), 63(e)(2), 105(h)(3)(B)(v), 410(b)(3)(C), 879(a)(1), 1303(c)(2), and 1304(c)(3) are each amended by striking out “section 911(b)” each place it appears and inserting in lieu Ante, p. 190. thereof “section 911(d)(2)”. (5) Paragraph (11) of section 1402(a) is amended to read as follows: “(11) in the case of an individual described in section 911(d)(1)(B), the exclusion from gross income provided by section 911(a)(1) shall not apply; and”. SEC. 112. REPEAL OF DEDUCTION FOR CERTAIN EXPENSES OF LIVING ABROAD. (a) In General.— Section 913 (relating to deduction for certain expenses of living abroad) is hereby repealed. (b) Conforming Amendments.— (1) The table of sections for subpart B of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 913. (2) Section 62 (relating to definition of adjusted gross income) is 26 USC 62. amended by striking out paragraph (14) and redesignating paragraphs (15) and (16) as paragraphs (14) and (15), respectively. (3) Subparagraph (C) of section 43(c)(1) (relating to earned 26 USC 43. income) is amended— (A) by striking out “913,” in the caption thereof, (B) by striking out clause (ii), and (C) by redesignating clause (iii) as clause (ii). (4) Subsection (k) of section 1034 (relating to rollover of gain on 26 USC 1034. sale of principal residence) is amended by striking out “section 913(j)(1)(B)” and inserting in lieu thereof “section 911(d)(3)”. (5) Section 3401 (relating to the definition of wages) is amended 26 USC 3401. by striking out paragraph (18) and redesignating paragraphs (19) and (20) as paragraphs (18) and (19), respectively. (6) Subparagraph (B) of section 6091(b)(1) (relating to place for 26 USC 6091. filing returns and other documents) is amended by striking out “section 913 (relating to deduction for certain expenses of living abroad)”. SEC. 113. EMPLOYEES LIVING IN CAMPS. Section 119 (relating to meals or lodging furnished for the convenience 26 USC 119. of the employer) is amended by adding at the end thereof the following new subsection: “(c) Employees Living in Certain Camps.— “(1) In general.— In the case of an individual who is furnished lodging in a camp located in a foreign country by or on behalf of his employer, such camp shall be considered to be part of the business premises of the employer. “(2) Camp.— For purposes of this section, a camp constitutes lodging which is— “(A) provided by or on behalf of the employer for the convenience of the employer because the place at which such individual renders services is in a remote area where satisfactory housing is not available on the open market, “(B) located, as near as practicable, in the vicinity of the place at which such individual renders services, and “(C) furnished in a common area (or enclave) which is not available to the public and which normally accommodates 10 or more employees.” SEC. 114. REPORTS BY SECRETARY. Section 208 of the Foreign Earned Income Act of 1978 is amended to 26 USC 911 note. read as follows: “SEC. 208. REPORTS BY SECRETARY. “(a) General Rule.— As soon as practicable after the date of the enactment of the Economic Recovery Tax Act of 1981, and as soon as Ante, p. 172. practicable after the close of each fourth calendar year thereafter, the Secretary of the Treasury shall transmit a report to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate on the operation and effects of sections 911 and 912 of the Internal Revenue Code of 1954. “(b) Information From Federal Agencies.— Each agency of the Federal Government which pays allowances excludable from gross income under section 912 of such Code shall furnish to the Secretary of the Treasury such information as he determines to be necessary to carry out his responsibility under subsection (a).” SEC. 115. EFFECTIVE DATE. The amendments made by this subtitle (other than section 114) shall apply with respect to taxable years beginning after December 31, 1981. Subtitle C— Miscellaneous Provisions SEC. 121. DEDUCTION FOR CHARITABLE CONTRIBUTIONS TO BE ALLOWED FOR INDIVIDUALS WHO DO NOT ITEMIZE DEDUCTIONS. (a) In General.— Section 170 (relating to charitable, etc., contributions and gifts) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: “(i) Rule for Nonitemization of Deductions.— “(1) In general.— In the case of an individual who does not itemize his deductions for the taxable year, the applicable percentage of the amount allowable under subsection (a) for the taxable year shall be taken into account as a direct charitable deduction under section 63. “(2) Applicable percentage.— For purposes of paragraph (1), the applicable percentage shall be determined under the following table: “For taxable years beginning in— The applicable percentage is—  1982, 1983 or 1984 25  1985 50  1986 or thereafter 100 “(3) Limitation for taxable years beginning before 1985.— In the case of a taxable year beginning before 1985, the portion of the amount allowable under subsection (a) to which the applicable percentage shall be applied— “(A) shall not exceed $100 for taxable years beginning in 1982 or 1983, and “(B) shall not exceed $300 for taxable years beginning in 1984. In the case of a married individual filing a separate return, the limit under subparagraph (A) shall be $50, and the limit under subparagraph (B) shall be $150. “(4) Termination.— The provisions of this subsection shall not apply to contributions made after December 31, 1986.” (b) Definition of Taxable Income.— (1) In general.— Paragraph (1) of section 63(b) (relating to individuals) is amended— (A) by striking out “and” at the end of subparagraph (A), and (B) by inserting after subparagraph (B) the following new subparagraph: “(C) the direct charitable deduction, and”. (2) Direct charitable deduction defined.— Section 63 (defining taxable income) is amended by adding at the end thereof the following new subsection: “(i) Direct Charitable Deduction.— For purposes of this section, the term ‘direct charitable deduction’ means that portion of the amount allowable under section 170(a) which is taken as a direct charitable deduction for the taxable year under section 170(i).” (c) Conforming Amendments.— (1) Paragraph (1) of section 57(b) (relating to adjusted itemized 26 USC 57. deductions) is amended by inserting “without regard to paragraph (3) thereof” after “section 63(f)”. (2) Subsection (f) of section 63 (relating to itemized deductions) 26 USC 63. is amended— (A) by striking out “and” at the end of paragraph (1), (B) by striking out the period at the end of paragraph (2) and inserting in lieu thereof “, and”, and (C) by adding at the end thereof the following new paragraph: “(3) the direct charitable deduction.” (3) Subparagraph (A) of section 3(a)(4) (relating to imposition of 26 USC 3. tax table tax) is amended to read as follows: “(A) reduced by the sum of— “(i) the excess itemized deductions, and “(ii) the direct charitable deduction, and”. (d) Effective Date.— The amendments made by this section shall 26 USC 170 note. apply to contributions made after December 31, 1981, in taxable years beginning after such date. SEC. 122. 18-MONTH PERIODS FOR ROLLOVER OF PRINCIPAL RESIDENCE INCREASED TO 2 YEARS. (a) In General.— Section 1034 (relating to rollover of gain on sale of 26 USC 1034. principal residence) is amended by striking out “18 months” each place it appears and inserting in lieu thereof “2 years”. (b) Conforming Amendments.— (1) Paragraph (4) of section 1034(c) is amended by striking out “18-month” and inserting in lieu thereof “2-year”. (2) Paragraph (5) of section 1034(c) is hereby repealed. (c) Effective Date.— The amendments made by this section shall 26 USC 1034 note. apply to old residences (within the meaning of section 1034 of the Internal Revenue Code of 1954) sold or exchanged— (1) after July 20, 1981, or (2) on or before such date, if the rollover period under such section (determined without regard to the amendments made by this section) expires on or after such date. SEC. 123. ONE-TIME EXCLUSION OF GAIN INCREASED TO $125,000. (a) In General.— Paragraph (1) of section 121(b) (relating to one-time 26 USC 121. exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by striking out “$100,000 ($50,000” and inserting in lieu thereof “$125,000 ($62,500”. (b) Effective Date.— The amendment made by this section shall 26 USC 121 note. apply to residences sold or exchanged after July 20, 1981. SEC. 124. INCREASES IN CREDIT ALLOWABLE FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT. (a) Increase in Percentage of Expenses Allowed as Credit.— Subsection (a) of section 44A (relating to expenses for household and 26 USC 44A. dependent care services necessary for gainful employment) is amended to read as follows: “(a) Allowance of Credit.— “(1) In general.— In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (c)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (c)(2)) paid by such individual during the taxable year. “(2) Applicable percentage defined.— For purposes of paragraph (1), the term ‘applicable percentage’ means 30 percent reduced (but not below 20 percent) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $10,000.” (b) Increases in Dollar Limits on Amount Creditable.— (1) In general.— Subsection (d) of section 44A (relating to dollar limit on amount creditable) is amended— (A) by striking out “$2,000” and inserting in lieu thereof “$2,400”, and (B) by striking out “$4,000” and inserting in lieu thereof “$4,800”. (2) Conforming Amendments.— Paragraph (2) of section 44A(e) (relating to earned income limitation) is amended— (A) by striking out “$166” and inserting in lieu thereof “$200”, and (B) by striking out “$333” and inserting in lieu thereof “$400”. (c) Credit Allowed for Certain Services Outside the Taxpayer’s Household.— Subparagraph (B) of section 44A(c)(2) is amended to read as follows: “(B) Exception.— Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer’s household shall be taken into account only if incurred for the care of— “(i) a qualifying individual described in paragraph (1)(A), or “(ii) a qualifying individual (not described in paragraph (1)(A)) who regularly spends at least 8 hours each day in the taxpayer’s household.” (d) Day Care Centers Must Meet State Law Requirements.— Paragraph (2) of section 44A(c) (defining emplo3niient-related expenses) is amended by adding at the end thereof the following new subparagraphs: “(C) Dependent care centers.— Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer’s household by a dependent care center (as defined in subparagraph (D)) shall be taken into account only if— “(i) such center complies with all applicable laws and regulations of a State or unit of local government, and (ii) the requirements of subparagraph (B) are met. “(D) Dependent Care Center Defined.— For purposes of this paragraph, the term ‘dependent care center’ means any facility which— “(i) provides care for more than six individuals (other than individuals who reside at the facility), and “(ii) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit).” (e) Exclusion of Dependent Care Assistance From the Income of Employees.— (1) In general.— Part III of subchapter B of chapter 1 (as Post, p. 267. amended by section 301) is amended by redesignating section 129 as section 130 and inserting after section 128 the following new section: “SEC. 129. DEPENDENT CARE ASSISTANCE PROGRAMS. “(a) In General.— Gross income of an employee does not include amounts paid or incurred by the employer for dependent care assistance provided to such employee if the assistance is furnished pursuant to a program which is described in subsection (d). “(b) Earned Income Limitation.— “(1) In general.— The amount excluded from the income of an employee under subsection (a) for any taxable year shall not exceed— “(A) in the case of an employee who is not married at the close of such taxable year, the earned income of such employee for such taxable year, or “(B) in the case of an employee who is married at the close of such taxable year, the lesser of— “(i) the earned income of such employee for such taxable year, or “(ii) the earned income of the spouse of such employee for such taxable year. “(2) Special rule for certain spouses.— For purposes of paragraph (1), the provisions of section 44A(e)(2) shall apply in determining the earned income of a spouse who is a student or incapable of caring for himself. “(c) Payments to Related Individuals.— No amount paid or incurred during the taxable year of an employee by an employer in providing dependent care assistance to such employee shall be excluded under subsection (a) if such amount was paid or incurred to an individual— “(1) with respect to whom, for such taxable year, a deduction is allowable under section 151(e) (relating to personal exemptions for dependents) to such employee or the spouse of such employee, or “(2) who is a child of such employee (within the meaning of section 151(e)(3)) under the age of 19 at the close of such taxable year. “(d) Dependent Care Assistance Program.— “(1) In general.— For purposes of this section a dependent care assistance program is a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with dependent care assistance which meets the requirements of paragraphs (2) through (6) of this subsection. “(2) Eligibility.— The program shall benefit employees who qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of employees who are officers, owners, or highly compensated, or their dependents. For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that dependent care benefits were the subject of good faith bargaining between such employee representatives and such employer or employers. “(3) Principal shareholders or owners.— Not more than 25 percent of the amounts paid or incurred by the employer for dependent care assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer. “(4) No funding required.— A program referred to in paragraph (1) is not required to be funded. “(5) Notification of eligible employees.— Reasonable notification of the availability and terms of the program shall be provided to eligible employees. “(6) Statement of expenses.— The plan shall furnish to an employee, on or before January 31, a written statement showing the amounts paid or expenses incurred by the employer in providing dependent care assistance to such employee during the previous calendar year. “(e) Definitions and Special Rules.— For purposes of this section— “(1) Dependent care assistance.— The term ‘dependent care assistance’ means the payment of, or provision of, those services which if paid for by the employee would be considered employment-related expenses under section 44A(c)(2) (relating to expenses for household and dependent care services necessary for gainful employment). “(2) Earned income.— The term ‘earned income’ shall have the meaning given such term in section 43(c)(2), but such term shall not include any amounts paid or incurred by an employer for dependent care assistance to an employee. “(3) Employee.— The term ‘employee’ includes, for any year, an individual who is an employee within the meaning of section 401(c)(1) (relating to self-employed individuals). “(4) Employer.— An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer. A partnership shall be treated as the employer of each partner who is an employee within the meaning of paragraph (3). “(5) Attribution rules.— “(A) Ownership of stock.— Ownership of stock in a corporation shall be determined in accordance with the rules provided under subsections (d) and (e) of section 1563 (without regard to section 1563(e)(3)(C)). “(B) Interest in unincorporated trade or business.— The interest of an employee in a trade or business which is not incorporated shall be determined in accordance with regulations prescribed by the Secretary, which shall be based on principles similar to the principles which apply in the case of subparagraph (A). “(6) Utilization test not applicable.— A dependent care assistance program shall not be held or considered to fail to meet any requirements of subsection (d) merely because of utilization rates for the different types of assistance made available under the program. “(7) Disallowance of excluded amounts as credit or deduction.— No deduction or credit shall be allowed under any other section of this chapter for any amount excluded from income by reason of this section.” (2) Exclusion from wages.— (A) Employment taxes and collection of income tax.— Subtitle C is amended by striking out “section 127” in 26 USC 3121, 3306. section 3121(a)(18) (relating to the Federal Insurance Contributions Act), section 3306(b)(13) (relating to the Federal Unemployment Tax Act), and section 3401(a)(19) (relating to 26 USC 3401. collection of income tax at source on wages) and inserting in lieu thereof “section 127 or 129”. (B) Social security act.— Subsection (q) of section 209 of the Social Security Act (defining wages) is amended by 42 USC 409. striking out “section 127” and inserting in lieu thereof “section 127 or 129”. (f) Effective Date.— (1) Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1981. (2) The amendments made by subsection (e)(2) shall apply to remuneration paid after December 31, 1981. SEC. 125. DEDUCTION FOR ADOPTION EXPENSES PAID BY AN INDIVIDUAL. (a) In General.— Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals), as amended by section 103, is amended by redesignating section 222 as section 223 and Ante, p. 187. by inserting after section 221 the following new section: “SEC. 222. ADOPTION EXPENSES. “(a) Allowance of Deduction.— In the case of an individual, there shall be allowed as a deduction for the taxable year the amount of the qualified adoption expenses paid or incurred by the taxpayer during such taxable year. “(b) Limitations.— “(1) Maximum dollar amount.— The aggregate amount of adoption expenses which may be taken into account under subsection (a) with respect to the adoption of a child shall not exceed $1,500. “(2) Denial of double benefit.— “(A) In general.— No deduction shall be allowable under subsection (a) for any expense for which a deduction or credit is allowable under any other provision of this chapter. “(B) Grants.— No deduction shall be allowable under subsection (a) for any expenses paid from any funds received under any Federal, State, or local program. “(c) Definitions.— For purposes of this section— “(1) Qualified adoption expenses.— The term ‘qualified adoption expenses’ means reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a child with special needs by the taxpayer and which are not incurred in violation of State or Federal law. “(2) Child with special needs.— The term ‘child with special needs’ means a child with respect to whom adoption assistance payments are made under section 473 of the Social Security Act.” (b) Conforming Amendment.— The table of sections for such part VII is amended by striking out the item relating to section 222 and inserting in lieu thereof the following: “Sec. 222. Adoption expenses. “Sec. 223. Cross references.” (c) Effective Date.— The amendments made by this section shall 26 USC 222 note. apply to taxable years beginning after December 31, 1980. SEC. 126. MAXIMUM RATE OF IMPUTED INTEREST FOR SALE OF LAND BETWEEN RELATED PERSONS. (a) General Rule.— Section 483 (relating to interest on certain deferred payments) is amended by adding at the end thereof the following new subsection: “(g) Maximum Rate of Interest on Certain Transfers of Land Between Related Parties.— “(1) In general.— In the case of any qualified sale, the maximum interest rate used in determining the total unstated interest rate under the regulations under subsection (b) shall not exceed 7 percent, compounded semiannually. “(2) Qualified sale.— For purposes of this subsection, the term ‘qualified sale’ means any sale or exchange of land by an individual to a member of such individual’s family (within the meaning of section 267(c)(4)). “(3) $500,000 limitation.— Paragraph (1) shall not apply to any qualified sale between individuals made during any calendar year to the extent that the sales price for such sale (when added to the aggregate sales price for prior qualified sales between such individuals during the calendar year) exceeds $500,000. “(4) Nonresident alien individuals.— This section shall not apply to any sale or exchange if any party to such sale or exchange is a nonresident alien individual.” (b) Effective Date.— The amendment made by subsection (a) shall apply to payments made after June 30, 1981, pursuant to sales or exchanges after such date. SEC. 127. STATE LEGISLATORS TRAVEL EXPENSES AWAY FROM HOME. (a) In General.— Section 162 (relating to trade or business expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: “(h) State Legislators’ Travel Expenses Away From Home.— “(1) In general.— For purposes of subsection (a), in the case of any individual who is a State legislator at any time during the taxable year and who makes an election under this subsection for the taxable year— “(A) the place of residence of such individual within the legislative district which he represented shall be considered his home, “(B) he shall be deemed to have expended for living expenses (in connection with his trade or business as a legislator) an amount equal to the sum of the amounts determined by multiplying each legislative day of such individual during the taxable year by the greater of— “(i) the amount generally allowable with respect to such day to employees of the State of which he is a legislator for per diem while away from home, to the extent such amount does not exceed 110 percent of the amount described in clause (ii) with respect to such day, or “(ii) the amount generally allowable with respect to such day to employees of the executive branch of the Federal Government for per diem while away from home but serving in the United States, and “(C) he shall be deemed to be away from home in the pursuit of a trade or business on each legislative day. “(2) Legislative days.— For purposes of paragraph (1), a legislative day during any taxable year for any individual shall be any day during such year on which— “(A) the legislature was in session (including any day in which the legislature was not in session for a period of 4 consecutive days or less), or “(B) the legislature was not in session but the physical presence of the individual was formally recorded at a meeting of a committee of such legislature. “(3) Election.— An election under this subsection for any taxable year shall be made at such time and in such manner as the Secretary shall by regulations prescribe. “(4) Section not to apply to legislators who reside near capitol.— For taxable years beginning after December 31, 1980, this subsection shall not apply to any legislator whose place of residence within the legislative district which he represents is 50 or fewer miles from the capitol building of the State.” (b) The amendment made by subsection (a) shall apply to taxable Effective date. 26 USC 162 note. years beginning on or after January 1, 1976. SEC. 128. RATES OF TAX FOR PRINCIPAL CAMPAIGN COMMITTEES. (a) In General.— Section 527 (relating to political organizations) is 26 USC 527. amended by adding at the end thereof the following new subsection: “(h) Special Rule for Principal Campaign Committees.— “(1) In general.— In the case of a political organization which is a principal campaign committee, paragraph (1) of subsection (b) shall be applied by substituting ‘the appropriate rates’ for ‘the highest rate’. “(2) Principal campaign committee defined.— “(A) In general.— For purposes of this subsection, the term ‘principal campaign committee’ means the political committee designated by a candidate for Congress as his principal campaign committee for purposes of— “(i) section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)), and “(ii) this subsection. “(B) Designation.— A candidate may have only 1 designation in effect under subparagraph (A)(ii) at any time and such designation— “(i) shall be made at such time and in such manner as the Secretary may prescribe by regulations, and “(ii) once made, may be revoked only with the consent of the Secretary.” (b) Effective Date.— The amendments made by this section shall 26 USC 527 note. apply to taxable years beginning after December 31, 1981.

  17. Subchapter S Revision Act of 1982

    Pub. L. 97–354 § 5(a)(17) · 96 Stat. 1669

    Repealed · 26 U.S.C. § 62(9)

    Pub. L. 97–354 repealed par. (9) relating to the deduction allowed by section 1379(b)(3)

    Source evidence

    Code amendment note
    Par. (9). Pub. L. 97–354 repealed par. (9) relating to the deduction allowed by section 1379(b)(3).

    Enacted provision · exact public law section
    (17) Section 62(9).— Paragraph (9) of section 62 (relating 26 USC 62. to pension, etc., plans of an electing small business corporation) is hereby repealed.

  18. Tax Reform Act of 1984

    Pub. L. 98–369 § 491(d)(2) · 98 Stat. 494

    1. Substituted · 26 U.S.C. § 62(7)

      Pub. L. 98–369, § 491(d)(2), substituted “and annuity” for “annuity, and bond purchase” in heading

    2. Substituted · 26 U.S.C. § 62(7)

      Pub. L. 98–369, § 491(d)(2), substituted “the deduction allowed by section 404” for “the deductions allowed by section 404 and section 405(c)” in text

    Source evidence

    Code amendment note
    Par. (7). Pub. L. 98–369, § 491(d)(2), substituted “and annuity” for “annuity, and bond purchase” in heading, and substituted “the deduction allowed by section 404” for “the deductions allowed by section 404 and section 405(c)” in text.

    Enacted provision · exact public law section
    (2) Paragraph (7) of section 62 (defining adjusted gross income) 26 USC 62. is amended— (A) by striking out “the deductions allowed by section 404 and section 405(c)” and inserting in lieu thereof “the deduction allowed by section 404”, and (B) by striking out “annuity, and bond purchase” in the heading and inserting in lieu thereof “and annuity”.

  19. Tax Reform Act of 1986

    Pub. L. 99–514 § 132(b)(2)(A) · 100 Stat. 2085

    1. Amended · 26 U.S.C. § 62(a)

      Pub. L. 99–514, § 132(b)(2)(A), designated existing provisions as subsec. (a)

    2. Added · 26 U.S.C. § 62(a)

      Pub. L. 99–514, § 132(b)(2)(A), added heading

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–514, § 132(b)(2)(A), designated existing provisions as subsec. (a) and added heading.

    Enacted provision · exact public law section
    (A) by striking out “For purposes of this subtitle” and inserting in lieu thereof “(a) General Rule.—For purposes of this subtitle”, and

  20. Tax Reform Act of 1986

    Pub. L. 99–514 § 132(b)(1) · 100 Stat. 2085

    1. Amended · 26 U.S.C. § 62(a)(2)

      Pub. L. 99–514, § 132(b)(1), amended par. (2) generally

    2. Substituted · 26 U.S.C. § 62(a)(2)

      Pub. L. 99–514, § 132(b)(1), substituting “Certain trade” for “Trade” in heading

    3. Inserted · 26 U.S.C. § 62(a)(2)

      Pub. L. 99–514, § 132(b)(1), inserting “of employees” in subpar. (A) heading

    4. Substituted · 26 U.S.C. § 62(a)(2)

      Pub. L. 99–514, § 132(b)(1), substituting provision relating to deduction of certain expenses of performing artists for provision relating to deduction of expenses for travel away from home in subpar. (B)

    5. Struck · 26 U.S.C. § 62(a)(2)

      Pub. L. 99–514, § 132(b)(1), striking out subpar. (C) relating to deduction of travel expenses and subpar. (D) relating to deduction of expenses of outside salesmen

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 99–514, § 132(b)(1), amended par. (2) generally, substituting “Certain trade” for “Trade” in heading and inserting “of employees” in subpar. (A) heading, substituting provision relating to deduction of certain expenses of performing artists for provision relating to deduction of expenses for travel away from home in subpar. (B), and striking out subpar. (C) relating to deduction of travel expenses and subpar. (D) relating to deduction of expenses of outside salesmen.

    Enacted provision · exact public law section
    (1) In general.— Paragraph (2) of section 62 (defining adjusted gross income) is amended to read as follows: “(2) Certain trade and business deductions of employees.— “(A) Reimbursed expenses of employees.— The deductions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. “(B) Certain expenses of performing artists.— The deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.”

  21. Tax Reform Act of 1986

    Pub. L. 99–514 § 301(b)(1) · 100 Stat. 2085

    1. Redesignated · 26 U.S.C. § 62(a)(3)(5)

      Pub. L. 99–514, § 301(b)(1), redesignated pars. (4) to (6) as (3) to (5), respectively

    2. Struck · 26 U.S.C. § 62(a)(3)(5)

      Pub. L. 99–514, § 301(b)(1), struck out former par. (3) which related to long-term capital gains and read as follows: “The deduction allowed by section 1202.”

    Source evidence

    Code amendment note
    Subsec. (a)(3) to (5). Pub. L. 99–514, § 301(b)(1), redesignated pars. (4) to (6) as (3) to (5), respectively, and struck out former par. (3) which related to long-term capital gains and read as follows: “The deduction allowed by section 1202.”

    Enacted provision · exact public law section
    (1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively.

  22. Tax Reform Act of 1986

    Pub. L. 99–514 § 301(b)(1) · 100 Stat. 2085

    Redesignated · 26 U.S.C. § 62(a)(6)

    Pub. L. 99–514, § 301(b)(1), redesignated par. (7) as (6). Former par. (6) redesignated (5)

    Source evidence

    Code amendment note
    Subsec. (a)(6). Pub. L. 99–514, § 301(b)(1), redesignated par. (7) as (6). Former par. (6) redesignated (5).

    Enacted provision · exact public law section
    (1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively.

  23. Tax Reform Act of 1986

    Pub. L. 99–514 § 1875(c)(3) · 100 Stat. 2085

    Struck · 26 U.S.C. § 62(a)(6)

    Pub. L. 99–514, § 1875(c)(3), struck out “to the extent attributable to contributions made on behalf of such individual” after “section 404”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 1875(c)(3), struck out “to the extent attributable to contributions made on behalf of such individual” after “section 404”.

    Enacted provision · exact public law section
    (3) Section 62(7) (relating to pension, profit-sharing, and annuity plans of self-employed individuals) is amended by striking out “to the extent attributable to contributions made on behalf of such individual”.

  24. Tax Reform Act of 1986

    Pub. L. 99–514 § 301(b)(1) · 100 Stat. 2085

    Redesignated · 26 U.S.C. § 62(a)(7)

    Pub. L. 99–514, § 301(b)(1), redesignated par. (10) as (7). Former par. (7) redesignated (6)

    Source evidence

    Code amendment note
    Subsec. (a)(7). Pub. L. 99–514, § 301(b)(1), redesignated par. (10) as (7). Former par. (7) redesignated (6).

    Enacted provision · exact public law section
    (1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively.

  25. Tax Reform Act of 1986

    Pub. L. 99–514 § 301(b)(1) · 100 Stat. 2085

    Redesignated · 26 U.S.C. § 62(a)(8)

    Pub. L. 99–514, § 301(b)(1), redesignated par. (11) as (8). Former par. (8) struck out

    Source evidence

    Code amendment note
    Subsec. (a)(8). Pub. L. 99–514, § 301(b)(1), redesignated par. (11) as (8). Former par. (8) struck out.

    Enacted provision · exact public law section
    (1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively.

  26. Tax Reform Act of 1986

    Pub. L. 99–514 § 132(c) · 100 Stat. 2085

    Struck · 26 U.S.C. § 62(a)(8)

    Pub. L. 99–514, § 132(c), struck out par. (8) which related to moving expense deduction and read as follows: “The deduction allowed by section 217.”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 132(c), struck out par. (8) which related to moving expense deduction and read as follows: “The deduction allowed by section 217.”

    Enacted provision · exact public law section
    (c) Moving Expense Deduction Not Allowable in Computing Adjusted Gross Income.— Subsection (a) of section 62 (as amended by subsection (b» is amended by striking out paragraph (8).

  27. Tax Reform Act of 1986

    Pub. L. 99–514 § 301(b)(1) · 100 Stat. 2085

    Redesignated · 26 U.S.C. § 62(a)(9)(15)

    Pub. L. 99–514, § 301(b)(1), redesignated pars. (12) to (15) as (9) to (12), respectively. Former pars. (10) and (11) redesignated (7) and (8), respectively

    Source evidence

    Code amendment note
    Subsec. (a)(9) to (15). Pub. L. 99–514, § 301(b)(1), redesignated pars. (12) to (15) as (9) to (12), respectively. Former pars. (10) and (11) redesignated (7) and (8), respectively.

    Enacted provision · exact public law section
    (1) Section 62(a) (defining adjusted gross income), as amended by section 132, is amended by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (10), (11), (12), (13), (14), and (15) as paragraphs (3) through (12), respectively.

  28. Tax Reform Act of 1986

    Pub. L. 99–514 § 131(b)(1) · 100 Stat. 2085

    Struck · 26 U.S.C. § 62(a)(16)

    Pub. L. 99–514, § 131(b)(1), struck out par. (16) which related to deduction for two-earner married couples and read as follows: “The deduction allowed by section 221.”

    Source evidence

    Code amendment note
    Subsec. (a)(16). Pub. L. 99–514, § 131(b)(1), struck out par. (16) which related to deduction for two-earner married couples and read as follows: “The deduction allowed by section 221.”

    Enacted provision · exact public law section
    (1) Section 62 is amended by striking out paragraph (16).

  29. Tax Reform Act of 1986

    Pub. L. 99–514 § 132(b)(2)(B) · 100 Stat. 2085

    Added · 26 U.S.C. § 62(b)

    Pub. L. 99–514, § 132(b)(2)(B), added subsec. (b)

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 99–514, § 132(b)(2)(B), added subsec. (b).

    Enacted provision · exact public law section
    (B) by adding at the end thereof the following new subsection: “(b) Qualified Performing Artist.— “(1) In general.— For purposes of subsection (a)(2)(B), the term ‘qualified performing artist’ means, with respect to any taxable year, any individual if— “(A) such individual performed services in the performing arts as an employee during the taxable year for at least 2 employers, “(B) the aggregate amount allowable as a deduction under section 162 in connection with the performance of such services exceeds 10 percent of such individual's gross income attributable to the performance of such services, and “(C) the adjusted gross income of such individual for the taxable year (determined without regard to subsection (a)(2)(B)) does not exceed $16,000. “(2) Nominal employer not taken into account.— An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200. “(3) Special rules for married couples.— “(A) In general.— Except in the case of a husband and wife who lived apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the taxpayer and his spouse file a joint return for the taxable year. “(B) Application of paragraph (1).— In the case of a joint return— “(i) paragraph (1) (other than subparagraph (C) thereof) shall be applied separately with respect to each spouse, but “(ii) paragraph (1)(C) shall be applied with respect to their combined adjusted gross income. “(C) Determination of marital status.— For purposes of this subsection, marital status shall be determined under section 7703(a). “(D) Joint return.— For purposes of this subsection, the term ‘joint return’ means the joint return of a husband and wife made under section 6013.”

  30. Family Support Act of 1988

    Pub. L. 100–485 title VII § 702(a) · 102 Stat. 2343

    Added · 26 U.S.C. § 62(c)

    Pub. L. 100–485 added subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–485 added subsec. (c).

    Enacted provision · exact public law section
    (a) General Rule.— Section 62 of the Internal Revenue Code of 1986 (defining adjusted gross income) is amended by adding at the end thereof the following new subsection: “(c) Certain Arrangements Not Treated as Reimbursement Arrangements.— For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if— “(1) such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or “(2) such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement. The substantiation requirements of the preceding sentence shall not apply to any expense to the extent that substantiation is not required under section 274(d) for such expense by reason of the regulations prescribed under the 2nd sentence thereof.”

  31. Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1001(b)(3)(A) · 102 Stat. 3342

    Inserted · 26 U.S.C. § 62(a)(2)(A)

    Pub. L. 100–647, § 1001(b)(3)(A), inserted at end “The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(A). Pub. L. 100–647, § 1001(b)(3)(A), inserted at end “The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.”

    Enacted provision · exact public law section
    (A) Subparagraph (A) of section 62(a)(2) of the 1986 Code is amended by adding at the end thereof the following new sentence: “The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.”

  32. Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 6007(b) · 102 Stat. 3342

    Added · 26 U.S.C. § 62(a)(13)

    Pub. L. 100–647, § 6007(b), added par. (13)

    Source evidence

    Code amendment note
    Subsec. (a)(13). Pub. L. 100–647, § 6007(b), added par. (13).

    Enacted provision · exact public law section
    (b) Deduction Allowed in Arriving at Adjusted Gross Income.— Subsection (a) of section 62 of the 1986 Code (defining adjusted gross income) is amended by inserting after paragraph (12) the following new paragraph: “(13) Jury duty pay remitted to employer.— The deduction allowed by section 220.”.

  33. Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11802(e)(1) · 104 Stat. 1388

    Amended · 26 U.S.C. § 62(a)(13)

    Pub. L. 101–508, § 11802(e)(1), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “The deduction allowed by section 220.”

    Source evidence

    Code amendment note
    Subsec. (a)(13). Pub. L. 101–508, § 11802(e)(1), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “The deduction allowed by section 220.”

    Enacted provision · exact public law section
    (1) Paragraph (13) of section 62(a) is amended to read as follows: “(13) Jury duty pay remitted to employer.— Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term ‘jury pay’ means any payment received by the individual for the discharge of jury duty.”

  34. Unemployment Compensation Amendments of 1992

    Pub. L. 102–318 title V § 521(b)(2) · 106 Stat. 290

    Substituted · 26 U.S.C. § 62(a)(8)

    Pub. L. 102–318 substituted “402(d)” for “402(e)” in heading and in text

    Source evidence

    Code amendment note
    Subsec. (a)(8). Pub. L. 102–318 substituted “402(d)” for “402(e)” in heading and in text.

    Enacted provision · exact public law section
    (2) Paragraph (8) of section 62(a) (relating to certain portion of lump-sum distributions from pension plans taxed under section 402(e)) is amended by striking “402(e)” in the text and heading and inserting “402(d)”.

  35. Energy Policy Act of 1992

    Pub. L. 102–486 title XIX § 1913(a)(2) · 106 Stat. 2776

    Added · 26 U.S.C. § 62(a)(14)

    Pub. L. 102–486 added par. (14)

    Source evidence

    Code amendment note
    Subsec. (a)(14). Pub. L. 102–486 added par. (14).

    Enacted provision · exact public law section
    (2) Deduction from gross income.— Section 62(a) is amended by inserting after paragraph (13) the following new paragraph: “(14) Deduction for clean-fuel vehicles and certain refueling property.— The deduction allowed by section 179A”

  36. Revenue Reconciliation Act of 1993

    Pub. L. 103–66 title XIII § 13213(c)(1) · 107 Stat. 312

    Added · 26 U.S.C. § 62(a)(15)

    Pub. L. 103–66 added par. (15)

    Source evidence

    Code amendment note
    Subsec. (a)(15). Pub. L. 103–66 added par. (15).

    Enacted provision · exact public law section
    (1) In general.— Subsection (a) of section 62 (defining adjusted gross income) is amended by inserting after paragraph (14) the following new paragraph: “(15) Moving expenses.— The deduction allowed by section 217.”

  37. Small Business Job Protection Act of 1996

    Pub. L. 104–188 title I § 1401(b)(4) · 110 Stat. 1755

    Struck · 26 U.S.C. § 62(a)(8)

    Pub. L. 104–188 struck out par. (8) which read as follows: “Certain portion of lump-sum distributions from pension plans taxed under section 402(d).—The deduction allowed by section 402(d)(3).”

    Source evidence

    Code amendment note
    Subsec. (a)(8). Pub. L. 104–188 struck out par. (8) which read as follows: “Certain portion of lump-sum distributions from pension plans taxed under section 402(d).—The deduction allowed by section 402(d)(3).”

    Enacted provision · exact public law section
    (4) Paragraph (8) of section 62(a) (relating to certain portion of lump-sum distributions from pension plans taxed under section 402(d)) is hereby repealed.

  38. Pub. L. 104–191 title III § 301(b) · 110 Stat. 1936

    Added · 26 U.S.C. § 62(a)(16)

    Pub. L. 104–191 added par. (16)

    Source evidence

    Code amendment note
    Subsec. (a)(16). Pub. L. 104–191 added par. (16).

    Enacted provision · exact public law section
    (b) Deduction Allowed Whether or Not Individual Itemizes Other Deductions.— Subsection (a) of section 62 is amended by inserting after paragraph (15) the following new paragraph: “(16) Medical savings accounts.— The deduction allowed by section 220.”.

  39. Pub. L. 105–34 § 975(a) · 111 Stat. 788

    Added · 26 U.S.C. § 62(a)(2)(C)

    Pub. L. 105–34, § 975(a), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(C). Pub. L. 105–34, § 975(a), added subpar. (C).

    Enacted provision · exact public law section
    (a) In General.— Paragraph (2) of section 62(a) (defining adjusted gross income) is amended by adding at the end the following new subparagraph: “(C) Certain expenses of officials.— The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.”.

  40. Pub. L. 105–34 § 202(b) · 111 Stat. 788

    Added · 26 U.S.C. § 62(a)(17)

    Pub. L. 105–34, § 202(b), added par. (17)

    Source evidence

    Code amendment note
    Subsec. (a)(17). Pub. L. 105–34, § 202(b), added par. (17).

    Enacted provision · exact public law section
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other Deductions.— Subsection (a) of section 62 is amended by inserting after paragraph (16) the following new paragraph: “(17) Interest on education loans.—The deduction allowed by section 221.”.

  41. Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(b)(1) · 114 Stat. 2763

    Amended · 26 U.S.C. § 62(a)(16)

    Pub. L. 106–554 amended heading and text of par. (16) generally. Prior to amendment, text read as follows: “The deduction allowed by section 220.”

    Source evidence

    Code amendment note
    Subsec. (a)(16). Pub. L. 106–554 amended heading and text of par. (16) generally. Prior to amendment, text read as follows: “The deduction allowed by section 220.”

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

  42. Pub. L. 107–16 title IV § 431(b) · 115 Stat. 38

    Added · 26 U.S.C. § 62(a)(18)

    Pub. L. 107–16 added par. (18)

    Source evidence

    Code amendment note
    Subsec. (a)(18). Pub. L. 107–16 added par. (18).

    Enacted provision · exact public law section
    (b) Deduction Allowed in Computing Adjusted Gross Income.— 26 USC 62. Section 62(a) is amended by inserting after paragraph 17) the following: “(18) Higher education expenses.— The deduction allowed by section 222.”.

  43. Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 406(a) · 116 Stat. 21

    Added · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 107–147, § 406(a), added subpar. (D)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 107–147, § 406(a), added subpar. (D).

    Enacted provision · exact public law section
    (a) In General.— Section 62(a)(2) (relating to certain trade 26 USC 62. and business deductions of employees) is amended by adding at the end the following: “(D) Certain expenses of elementary and secondary school teachers.— In the case of taxable years beginning during 2002 or 2003, the deductions allowed by section 162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.”.

  44. Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 § 406(b) · 116 Stat. 21

    Added · 26 U.S.C. § 62(d)

    Pub. L. 107–147, § 406(b), added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 107–147, § 406(b), added subsec. (d).

    Enacted provision · exact public law section
    (b) Eligible Educator.— Section 62 is amended by adding at the end the following: “(d) Definition; Special Rules.— “(1) Eligible educator.— “(A) In general.— For purposes of subsection (a)(2)(D), the term ‘eligible educator’ means, with respect to any taxable year, an individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year. “(B) School.— The term ‘school’ means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law. “(1) Coordination with exclusions.— A deduction shall be allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529(c)(1), or 530(d)(2) for the taxable year.”.

  45. Military Family Tax Relief Act of 2003

    Pub. L. 108–121 title I § 109(b) · 117 Stat. 1335

    Added · 26 U.S.C. § 62(a)(2)(E)

    Pub. L. 108–121 added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(E). Pub. L. 108–121 added subpar. (E).

    Enacted provision · exact public law section
    (b) Deduction Allowed Whether or Not Taxpayer Elects To Itemize.— Section 62(a)(2) (relating to certain trade and business deductions of employees) is amended by adding at the end the following new subparagraph: “(E) Certain expenses of members of reserve components of the armed forces of the united states.— The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.” .

  46. Medicare Prescription Drug, Improvement, and Modernization Act of 2003

    Pub. L. 108–173 title XII § 1201(b) · 117 Stat. 2066

    Added · 26 U.S.C. § 62(a)(19)

    Pub. L. 108–173 added par. (19)

    Source evidence

    Code amendment note
    Subsec. (a)(19). Pub. L. 108–173 added par. (19).

    Enacted provision · exact public law section
    (b) Deduction Allowed Whether or Not Individual Itemizes Other Deductions.— Subsection (a) of section 62 of such Code 26 USC 62. is amended by inserting after paragraph (18) the following new paragraph: “(19) Health savings accounts.— The deduction allowed by section 223.” .

  47. Working Families Tax Relief Act of 2004

    Pub. L. 108–311 title III § 307(a) · 118 Stat. 1166

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 108–311 substituted “, 2003, 2004, or 2005” for “or 2003”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 108–311 substituted “, 2003, 2004, or 2005” for “or 2003”.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (D) of section 62(a)(2) is amended by striking “or 2003” and inserting “, 2003, 2004, or 2005”.

  48. Pub. L. 108–357 § 703(a) · 118 Stat. 1418

    Added · 26 U.S.C. § 62(a)(19)

    Pub. L. 108–357, § 703(a), added par. (19) relating to costs involving discrimination suits, etc

    Source evidence

    Code amendment note
    Subsec. (a)(19). Pub. L. 108–357, § 703(a), added par. (19) relating to costs involving discrimination suits, etc.

    Enacted provision · exact public law section
    (a) Deduction Allowed Whether or Not Taxpayer Itemizes Other Deductions.— Subsection (a) of section 62 (defining adjusted gross income) is amended by inserting after paragraph (18) the following new item: “(19) Costs involving discrimination suits, etc.— Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code or a claim made under section 1862(b)(3)(A) of the Social Security Act (42 U.S.C. 1395y(b)(3)(A)). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.” .

  49. Pub. L. 108–357 § 703(b) · 118 Stat. 1418

    Added · 26 U.S.C. § 62(e)

    Pub. L. 108–357, § 703(b), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 108–357, § 703(b), added subsec. (e).

    Enacted provision · exact public law section
    (b) Unlawful Discrimination Defined.— Section 62 is amended by adding at the end the following new subsection: “(e) Unlawful Discrimination Defined.— For purposes of subsection (a)(19), the term ‘unlawful discrimination’ means an act that is unlawful under any of the following: “(1) Section 302 of the Civil Rights Act of 1991 (2 U.S.C. 1202). “(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317). “(3) The National Labor Relations Act (29 U.S.C. 151 et seq.). “(4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). “(5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623 or 633a). “(6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791 or 794). “(7) Section 510 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1140). “(8) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.). “(9) The Employee Polygraph Protection Act of 1988 (29 U.S.C. 2001 et seq.). “(10) The Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102 et seq.). “(11) Section 105 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2615). “(12) Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services). “(13) Section 1977, 1979, or 1980 of the Revised Statutes (42 U.S.C. 1981, 1983, or 1985). “(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2, 2000e–3, or 2000e–16). “(15) Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617). “(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203). “(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law. “(18) Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law— “(i) providing for the enforcement of civil rights, or “(ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.” .

  50. Tax Technical Corrections Act of 2005

    Pub. L. 109–135 § 412(q)(1) · 119 Stat. 2577

    Redesignated · 26 U.S.C. § 62(a)(19); 26 U.S.C. § 62(a)(20)

    Pub. L. 109–135, § 412(q)(1), redesignated par. (19) relating to costs involving discrimination suits, etc., as par. (20) and moved to follow par. (19) relating to health savings accounts

    Source evidence

    Code amendment note
    Subsec. (a)(19), (20). Pub. L. 109–135, § 412(q)(1), redesignated par. (19) relating to costs involving discrimination suits, etc., as par. (20) and moved to follow par. (19) relating to health savings accounts.

    Enacted provision · exact public law section
    (1) Subsection (a) of section 62 is amended— (A) by redesignating paragraph (19) (relating to costs involving discrimination suits, etc.), as added by section 703 of the American Jobs Creation Act of 2004, as paragraph (20), and (B) by moving such paragraph after paragraph (19) (relating to health savings accounts).

  51. Tax Technical Corrections Act of 2005

    Pub. L. 109–135 § 412(q)(2) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 62(e)

    Pub. L. 109–135, § 412(q)(2), substituted “subsection (a)(20)” for “subsection (a)(19)” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 109–135, § 412(q)(2), substituted “subsection (a)(20)” for “subsection (a)(19)” in introductory provisions.

    Enacted provision · exact public law section
    (2) Subsection (e) of section 62 is amended by striking “subsection (a)(19)” and inserting “subsection (a)(20)”.

  52. Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 108(a) · 120 Stat. 2922

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 109–432, § 108(a), substituted “2005, 2006, or 2007” for “or 2005”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 109–432, § 108(a), substituted “2005, 2006, or 2007” for “or 2005”.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (D) of section 62(a)(2) is amended by striking “or 2005” and inserting “2005, 2006, or 2007”.

  53. Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 406(a)(3) · 120 Stat. 2922

    Added · 26 U.S.C. § 62(a)(21)

    Pub. L. 109–432, § 406(a)(3), added par. (21)

    Source evidence

    Code amendment note
    Subsec. (a)(21). Pub. L. 109–432, § 406(a)(3), added par. (21).

    Enacted provision · exact public law section
    (3) Deduction allowed whether or not taxpayer itemizes.— Subsection (a) of section 62 (relating to general rule defining adjusted gross income) is amended by inserting after paragraph (20) the following new paragraph: “(21) Attorneys fees relating to awards to whistleblowers.— Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.” .

  54. Emergency Economic Stabilization Act of 2008

    Pub. L. 110–343 div. C title II § 203(a) · 122 Stat. 3765

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 110–343 substituted “2007, 2008, or 2009” for “or 2007”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 110–343 substituted “2007, 2008, or 2009” for “or 2007”.

    Enacted provision · exact public law section
    (a) In General.— Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraph: “(35) as supplementary materials, a separate analysis of the budgetary effects for all prior fiscal years, the current fiscal year, the fiscal year for which the budget is submitted, and ensuing fiscal years of the actions the Secretary of the Treasury has taken or plans to take using any authority provided in the Emergency Economic Stabilization Act of 2008, including— “(A) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided in the Emergency Economic Stabilization Act of 2008 using methodology required by the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) and section 123 of the Emergency Economic Stabilization Act of 2008; “(B) an estimate of the deficit, the debt held by the public, and the gross Federal debt using methodology required by the Federal Credit Reform Act of 1990 and section 123 of the Emergency Economic Stabilization Act of 2008; “(C) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided in the Emergency Economic Stabilization Act of 2008 calculated on a cash basis; “(D) a revised estimate of the deficit, the debt held by the public, and the gross Federal debt, substituting the cash-based estimates in subparagraph (C) for the estimates calculated under subparagraph (A) pursuant to the Federal Credit Reform Act of 1990 and section 123 of the Emergency Economic Stabilization Act of 2008; and “(E) the portion of the deficit which can be attributed to any action taken by the Secretary using authority provided by the Emergency Economic Stabilization Act of 2008 and the extent to which the change in the deficit since the most recent estimate is due to a reestimate using the methodology required by the Federal Credit Reform Act of 1990 and section 123 of the Emergency Economic Stabilization Act of 2008.”

  55. Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

    Pub. L. 111–312 title VII § 721(a) · 124 Stat. 3296

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 111–312 substituted “2009, 2010, or 2011” for “or 2009”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 111–312 substituted “2009, 2010, or 2011” for “or 2009”.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (D) of section 62(a)(2) 26 USC 62. is amended by striking “or 2009” and inserting “2009, 2010, or 2011”.

  56. American Taxpayer Relief Act of 2012

    Pub. L. 112–240 title II § 201(a) · 126 Stat. 2313

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 112–240 substituted “2011, 2012, or 2013” for “or 2011”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 112–240 substituted “2011, 2012, or 2013” for “or 2011”.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (D) of 26 USC 62. section 62(a)(2) is amended by striking “or 2011” and inserting “2011, 2012, or 2013”.

  57. Tax Increase Prevention Act of 2014

    Pub. L. 113–295 § 101(a) · 128 Stat. 4010

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 113–295, § 101(a), substituted “2013, or 2014” for “or 2013”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 113–295, § 101(a), substituted “2013, or 2014” for “or 2013”.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (D) of section 62(a)(2) 26 USC 62. is amended by striking “or 2013” and inserting “2013, or 2014”.

  58. Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 221(a)(34)(C) · 128 Stat. 4010

    Struck · 26 U.S.C. § 62(a)(14)

    Pub. L. 113–295, § 221(a)(34)(C), struck out par. (14). Text read as follows: “The deduction allowed by section 179A.”

    Source evidence

    Code amendment note
    Subsec. (a)(14). Pub. L. 113–295, § 221(a)(34)(C), struck out par. (14). Text read as follows: “The deduction allowed by section 179A.”

    Enacted provision · exact public law section
    (C) Section 62(a) is amended by striking paragraph (14).

  59. Department of Commerce Appropriations Act, 2016

    Pub. L. 114–113 § 104(c) · 129 Stat. 2242

    1. Substituted · 26 U.S.C. § 62(a)(2)(D)

      Pub. L. 114–113, § 104(c), substituted “educator—” for “educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.”

    2. Added · 26 U.S.C. § 62(a)(2)(D)

      Pub. L. 114–113, § 104(c), added cls. (i) and (ii)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(D). Pub. L. 114–113, § 104(c), substituted “educator—” for “educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.” and added cls. (i) and (ii).

    Enacted provision · exact public law section
    Sec. 104. The requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55), as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2016: Provided, That the life cycle cost for the Joint Polar Satellite System is $11,322,125,000 and the life cycle cost for the Geostationary Operational Environmental Satellite R-Series Program is $10,828,059,000.

  60. Department of Commerce Appropriations Act, 2016

    Pub. L. 114–113 § 104(a) · 129 Stat. 2242

    Substituted · 26 U.S.C. § 62(a)(2)(D)

    Pub. L. 114–113, § 104(a), substituted “The deductions” for “In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, or 2014, the deductions”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 114–113, § 104(a), substituted “The deductions” for “In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, or 2014, the deductions”.

    Enacted provision · exact public law section
    Sec. 104. The requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55), as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2016: Provided, That the life cycle cost for the Joint Polar Satellite System is $11,322,125,000 and the life cycle cost for the Geostationary Operational Environmental Satellite R-Series Program is $10,828,059,000.

  61. Department of Commerce Appropriations Act, 2016

    Pub. L. 114–113 § 104(b) · 129 Stat. 2242

    Added · 26 U.S.C. § 62(d)(3)

    Pub. L. 114–113, § 104(b), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 114–113, § 104(b), added par. (3).

    Enacted provision · exact public law section
    Sec. 104. The requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55), as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2016: Provided, That the life cycle cost for the Joint Polar Satellite System is $11,322,125,000 and the life cycle cost for the Geostationary Operational Environmental Satellite R-Series Program is $10,828,059,000.

  62. Pub. L. 115–97 § 11011(b)(1) · 131 Stat. 2054

    Inserted · 26 U.S.C. § 62(a)

    Pub. L. 115–97, § 11011(b)(1), inserted at end of concluding provisions “The deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–97, § 11011(b)(1), inserted at end of concluding provisions “The deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.”

    Enacted provision · exact public law section
    (1) Deduction not allowed in computing adjusted gross income.— Section 62(a) 26 USC 62. is amended by adding at the end the following new sentence: “The deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.”.

  63. Pub. L. 115–97 § 11051(b)(2)(A) · 131 Stat. 2054

    Struck · 26 U.S.C. § 62(a)(10)

    Pub. L. 115–97, § 11051(b)(2)(A), struck out par. (10). Text read as follows: “The deduction allowed by section 215.”

    Source evidence

    Code amendment note
    Subsec. (a)(10). Pub. L. 115–97, § 11051(b)(2)(A), struck out par. (10). Text read as follows: “The deduction allowed by section 215.”

    Enacted provision · exact public law section
    (A) Section 62(a) is amended by striking paragraph (10).

  64. Pub. L. 115–97 § 11002(d)(1)(J) · 131 Stat. 2054

    Substituted · 26 U.S.C. § 62(d)(3)(B)

    Pub. L. 115–97, § 11002(d)(1)(J), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(B). Pub. L. 115–97, § 11002(d)(1)(J), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

    Enacted provision · exact public law section
    (J) Section 62(d)(3)(B).

  65. Bipartisan Budget Act of 2018

    Pub. L. 115–123 div. D title II § 41107(a) · 132 Stat. 64

    Amended · 26 U.S.C. § 62(a)(21)

    Pub. L. 115–123 amended par. (21) generally. Prior to amendment, text read as follows: “Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.”

    Source evidence

    Code amendment note
    Subsec. (a)(21). Pub. L. 115–123 amended par. (21) generally. Prior to amendment, text read as follows: “Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.”

    Enacted provision · exact public law section
    (a) In General.— Paragraph (21) of section 62(a) 26 USC 62. is amended to read as follows: “(21) Attorneys’ fees relating to awards to whistleblowers.— “(A) In general.— Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under— “(i) section 7623(b), or “(ii) in the case of taxable years beginning after December 31, 2017, any action brought under— “(I) section 21F of the Securities Exchange Act of 1934 (15 U.S.C. 78u–6), “(II) a State false claims act, including a State false claims act with qui tam provisions, or “(III) section 23 of the Commodity Exchange Act (7 U.S.C. 26). “(B) May not exceed award.— Subparagraph (A) shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.” .

  66. Department of Commerce Appropriations Act, 2018

    Pub. L. 115–141 § 101(a)(2)(B) · 132 Stat. 348

    Substituted · 26 U.S.C. § 62(a)

    Pub. L. 115–141, § 101(a)(2)(B), substituted “Any deduction” for “The deduction” in concluding provisions

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–141, § 101(a)(2)(B), substituted “Any deduction” for “The deduction” in concluding provisions.

    Enacted provision · exact public law section
    Sec. 101. During the current fiscal year, applicable appropriations and funds made available to the Department of Commerce by this Act shall be available for the activities specified in the Act of October 26, 1949 (15 U.S.C. 1514), to the extent and in the manner prescribed by the Act, and, notwithstanding 31 U.S.C. 3324, may be used for advanced payments not otherwise authorized only upon the certification of officials designated by the Secretary of Commerce that such payments are in the public interest.

  67. Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(31) · 132 Stat. 348

    Inserted · 26 U.S.C. § 62(a)(20)

    Pub. L. 115–141, § 401(a)(31), inserted comma after “United States Code”

    Source evidence

    Code amendment note
    Subsec. (a)(20). Pub. L. 115–141, § 401(a)(31), inserted comma after “United States Code”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

  68. Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(32) · 132 Stat. 348

    Substituted · 26 U.S.C. § 62(e)(1)

    Pub. L. 115–141, § 401(a)(32), substituted “(42 U.S.C. 2000e–16b)” for “(2 U.S.C. 1202)”

    Source evidence

    Code amendment note
    Subsec. (e)(1). Pub. L. 115–141, § 401(a)(32), substituted “(42 U.S.C. 2000e–16b)” for “(2 U.S.C. 1202)”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

  69. Fair Chance to Compete for Jobs Act of 2019

    Pub. L. 116–92 div. A title XI § 1122(d)(2)(B) · 133 Stat. 1198

    Substituted · 26 U.S.C. § 62(e)(2)

    Pub. L. 116–92 substituted “207, or 208” for “or 207”

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 116–92 substituted “207, or 208” for “or 207”.

    Enacted provision · exact public law section
    (B) Section 62(e)(2) of the Internal Revenue Code of 1986 is 26 USC 62. amended by striking “or 207” and inserting “207, or 208”.

  70. Coronavirus Aid, Relief, and Economic Security Act

    Pub. L. 116–136 § 2204(a) · 134 Stat. 281

    Added · 26 U.S.C. § 62(a)(22)

    Pub. L. 116–136, § 2204(a), added par. (22)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 116–136, § 2204(a), added par. (22).

    Enacted provision · exact public law section
    (a) In General.— Section 62(a) of the Internal Revenue Code of 1986 26 USC 62. is amended by inserting after paragraph (21) the following new paragraph: “(22) Charitable contributions.— In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible individual during the taxable year.” .

    Effective date note
    Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title. Pub. L. 116–260, div. EE, title II, § 212(d), Dec. 27, 2020, 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after December 31, 2020.” Pub. L. 116–136, div. A, title II, § 2204(c), Mar. 27, 2020, 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2019.”

  71. Coronavirus Aid, Relief, and Economic Security Act

    Pub. L. 116–136 § 2204(b) · 134 Stat. 281

    Added · 26 U.S.C. § 62(f)

    Pub. L. 116–136, § 2204(b), added subsec. (f)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 116–136, § 2204(b), added subsec. (f).

    Enacted provision · exact public law section
    (b) Definitions.— Section 62 of such Code is amended by adding at the end the following new subsection: “(f) Definitions Relating to Qualified Charitable Contributions.— For purposes of subsection (a)(22)— “(1) Eligible individual.— The term ‘eligible individual’ means any individual who does not elect to itemize deductions. “(2) Qualified charitable contributions.— The term ‘qualified charitable contribution’ means a charitable contribution (as defined in section 170(c))— “(A) which is made in cash, “(B) for which a deduction is allowable under section 170 (determined without regard to subsection (b) thereof), and “(C) which is— “(i) made to an organization described in section 170(b)(1)(A), and “(ii) not— “(I) to an organization described in section 509(a)(3), or “(II) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2)). Such term shall not include any amount which is treated as a charitable contribution made in such taxable year by reason of subsection (b)(1)(G)(ii) or (d)(1) of section 170.” .

    Effective date note
    Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title. Pub. L. 116–260, div. EE, title II, § 212(d), Dec. 27, 2020, 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after December 31, 2020.” Pub. L. 116–136, div. A, title II, § 2204(c), Mar. 27, 2020, 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2019.”

  72. Department of Commerce Appropriations Act, 2021

    Pub. L. 116–260 § 104(b)(2)(A) · 134 Stat. 1182

    Struck · 26 U.S.C. § 62(a)(18)

    Pub. L. 116–260, § 104(b)(2)(A), struck out par. (18). Text read as follows: “The deduction allowed by section 222.”

    Source evidence

    Code amendment note
    Subsec. (a)(18). Pub. L. 116–260, § 104(b)(2)(A), struck out par. (18). Text read as follows: “The deduction allowed by section 222.”

    Enacted provision · exact public law section
    Sec. 104. The Incorporation by reference. Applicability. 33 USC 878a note. requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55), as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2021: Provided, That the life cycle cost for the Joint Polar Satellite System is $11,322,125,000, the life cycle cost of the Polar Follow On Program is $6,837,900,000, the life cycle cost for the Geostationary Operational Environmental Satellite R-Series Program is $11,700,100,000, and the life cycle cost for the Space Weather Follow On Program is $692,800,000.

    Effective date note
    Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title. Pub. L. 116–260, div. EE, title II, § 212(d), Dec. 27, 2020, 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after December 31, 2020.” Pub. L. 116–136, div. A, title II, § 2204(c), Mar. 27, 2020, 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2019.”

  73. Department of Justice Appropriations Act, 2021

    Pub. L. 116–260 § 212(c)(1) · 134 Stat. 1182

    Struck · 26 U.S.C. § 62(a)(22)

    Pub. L. 116–260, § 212(c)(1), struck out par. (22). Text read as follows: “In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible individual during the taxable year.”

    Source evidence

    Code amendment note
    Subsec. (a)(22). Pub. L. 116–260, § 212(c)(1), struck out par. (22). Text read as follows: “In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible individual during the taxable year.”

    Enacted provision · exact public law section
    Sec. 212. At the discretion of the Attorney General, and in addition to any amounts that otherwise may be available (or authorized to be made available) by law, with respect to funds appropriated by this title under the headings “Research, Evaluation and Statistics”, “State and Local Law Enforcement Assistance”, and “Juvenile Justice Programs”— (1) up to 2 percent of funds made available to the Office of Justice Programs for grant or reimbursement programs may be used by such Office to provide training and technical assistance; and (2) up to 2 percent of funds made available for grant or reimbursement programs under such headings, except for amounts appropriated specifically for research, evaluation, or statistical programs administered by the National Institute of Justice and the Bureau of Justice Statistics, shall be transferred to and merged with funds provided to the National Institute of Justice and the Bureau of Justice Statistics, to be used by them for research, evaluation, or statistical purposes, without regard to the authorizations for such grant or reimbursement programs.

    Effective date note
    Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title. Pub. L. 116–260, div. EE, title II, § 212(d), Dec. 27, 2020, 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after December 31, 2020.” Pub. L. 116–136, div. A, title II, § 2204(c), Mar. 27, 2020, 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2019.”

  74. Department of Justice Appropriations Act, 2021

    Pub. L. 116–260 § 212(c)(2) · 134 Stat. 1182

    Struck · 26 U.S.C. § 62(f)

    Pub. L. 116–260, § 212(c)(2), struck out subsec. (f) which defined terms relating to qualified charitable contributions

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 116–260, § 212(c)(2), struck out subsec. (f) which defined terms relating to qualified charitable contributions.

    Enacted provision · exact public law section
    Sec. 212. At the discretion of the Attorney General, and in addition to any amounts that otherwise may be available (or authorized to be made available) by law, with respect to funds appropriated by this title under the headings “Research, Evaluation and Statistics”, “State and Local Law Enforcement Assistance”, and “Juvenile Justice Programs”— (1) up to 2 percent of funds made available to the Office of Justice Programs for grant or reimbursement programs may be used by such Office to provide training and technical assistance; and (2) up to 2 percent of funds made available for grant or reimbursement programs under such headings, except for amounts appropriated specifically for research, evaluation, or statistical programs administered by the National Institute of Justice and the Bureau of Justice Statistics, shall be transferred to and merged with funds provided to the National Institute of Justice and the Bureau of Justice Statistics, to be used by them for research, evaluation, or statistical purposes, without regard to the authorizations for such grant or reimbursement programs.

    Effective date note
    Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title. Pub. L. 116–260, div. EE, title II, § 212(d), Dec. 27, 2020, 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after December 31, 2020.” Pub. L. 116–136, div. A, title II, § 2204(c), Mar. 27, 2020, 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2019.”

81 of 83 references resolved to an enrolled provision · 2 partial

Notes

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

References in Text

Section 208 of the Congressional Accountability Act of 1995, referred to in subsec. (e)(2), was formerly section 207 of the Act prior to renumbering by Pub. L. 116–92, and is classified to section 1317 of Title 2, The Congress. A new section 207 of the Act was enacted by Pub. L. 116–92 and is classified to section 1316b of Title 2. Pub. L. 116–92 amended list of Act sections in subsec. (e)(2) of this section without corresponding amendment of Code citations, see 2019 Amendment note below.

The National Labor Relations Act, referred to in subsec. (e)(3), is act July 5, 1935, ch. 372, 49 Stat. 449, which is classified generally to subchapter II (§ 151 et seq.) of chapter 7 of Title 29, Labor. For complete classification of this Act to the Code, see section 167 of Title 29 and Tables.

The Fair Labor Standards Act of 1938, referred to in subsec. (e)(4), is act June 25, 1938, ch. 676, 52 Stat. 1060, which is classified generally to chapter 8 (§ 201 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see section 201 of Title 29 and Tables.

The Education Amendments of 1972, referred to in subsec. (e)(8), is Pub. L. 92–318, , 86 Stat. 235. Title IX of the Act, known as the Patsy Takemoto Mink Equal Opportunity in Education Act, is classified principally to chapter 38 (§ 1681 et seq.) of Title 20, Education. For complete classification of title IX to the Code, see Short Title note set out under section 1681 of Title 20 and Tables.

The Employee Polygraph Protection Act of 1988, referred to in subsec. (e)(9), is Pub. L. 100–347, , 102 Stat. 646, which is classified generally to chapter 22 (§ 2001 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 2001 of Title 29 and Tables.

The Worker Adjustment and Retraining Notification Act, referred to in subsec. (e)(10), is Pub. L. 100–379, , 102 Stat. 890, which is classified generally to chapter 23 (§ 2101 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 2101 of Title 29 and Tables.

Amendments1962–2020 · 33 rounds

2020

Subsec. (a)(18). Pub. L. 116–260, § 104(b)(2)(A), struck out par. (18). Text read as follows: “The deduction allowed by section 222.”

Subsec. (a)(22). Pub. L. 116–260, § 212(c)(1), struck out par. (22). Text read as follows: “In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible individual during the taxable year.”

Pub. L. 116–136, § 2204(a), added par. (22).

Subsec. (f). Pub. L. 116–260, § 212(c)(2), struck out subsec. (f) which defined terms relating to qualified charitable contributions.

Pub. L. 116–136, § 2204(b), added subsec. (f).

2019

Subsec. (e)(2). Pub. L. 116–92 substituted “207, or 208” for “or 207”.

2018

Subsec. (a). Pub. L. 115–141, § 101(a)(2)(B), substituted “Any deduction” for “The deduction” in concluding provisions.

Subsec. (a)(20). Pub. L. 115–141, § 401(a)(31), inserted comma after “United States Code”.

Subsec. (a)(21). Pub. L. 115–123 amended par. (21) generally. Prior to amendment, text read as follows: “Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.”

Subsec. (e)(1). Pub. L. 115–141, § 401(a)(32), substituted “(42 U.S.C. 2000e–16b)” for “(2 U.S.C. 1202)”.

2017

Subsec. (a). Pub. L. 115–97, § 11011(b)(1), inserted at end of concluding provisions “The deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.”

Subsec. (a)(10). Pub. L. 115–97, § 11051(b)(2)(A), struck out par. (10). Text read as follows: “The deduction allowed by section 215.”

Subsec. (d)(3)(B). Pub. L. 115–97, § 11002(d)(1)(J), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

2015

Subsec. (a)(2)(D). Pub. L. 114–113, § 104(c), substituted “educator—” for “educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.” and added cls. (i) and (ii).

Pub. L. 114–113, § 104(a), substituted “The deductions” for “In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, or 2014, the deductions”.

Subsec. (d)(3). Pub. L. 114–113, § 104(b), added par. (3).

2014

Subsec. (a)(2)(D). Pub. L. 113–295, § 101(a), substituted “2013, or 2014” for “or 2013”.

Subsec. (a)(14). Pub. L. 113–295, § 221(a)(34)(C), struck out par. (14). Text read as follows: “The deduction allowed by section 179A.”

2013

Subsec. (a)(2)(D). Pub. L. 112–240 substituted “2011, 2012, or 2013” for “or 2011”.

2010

Subsec. (a)(2)(D). Pub. L. 111–312 substituted “2009, 2010, or 2011” for “or 2009”.

2008

Subsec. (a)(2)(D). Pub. L. 110–343 substituted “2007, 2008, or 2009” for “or 2007”.

2006

Subsec. (a)(2)(D). Pub. L. 109–432, § 108(a), substituted “2005, 2006, or 2007” for “or 2005”.

Subsec. (a)(21). Pub. L. 109–432, § 406(a)(3), added par. (21).

2005

Subsec. (a)(19), (20). Pub. L. 109–135, § 412(q)(1), redesignated par. (19) relating to costs involving discrimination suits, etc., as par. (20) and moved to follow par. (19) relating to health savings accounts.

Subsec. (e). Pub. L. 109–135, § 412(q)(2), substituted “subsection (a)(20)” for “subsection (a)(19)” in introductory provisions.

2004

Subsec. (a)(2)(D). Pub. L. 108–311 substituted “, 2003, 2004, or 2005” for “or 2003”.

Subsec. (a)(19). Pub. L. 108–357, § 703(a), added par. (19) relating to costs involving discrimination suits, etc.

Subsec. (e). Pub. L. 108–357, § 703(b), added subsec. (e).

2003

Subsec. (a)(2)(E). Pub. L. 108–121 added subpar. (E).

Subsec. (a)(19). Pub. L. 108–173 added par. (19).

2002

Subsec. (a)(2)(D). Pub. L. 107–147, § 406(a), added subpar. (D).

Subsec. (d). Pub. L. 107–147, § 406(b), added subsec. (d).

2001

Subsec. (a)(18). Pub. L. 107–16 added par. (18).

2000

Subsec. (a)(16). Pub. L. 106–554 amended heading and text of par. (16) generally. Prior to amendment, text read as follows: “The deduction allowed by section 220.”

1997

Subsec. (a)(2)(C). Pub. L. 105–34, § 975(a), added subpar. (C).

Subsec. (a)(17). Pub. L. 105–34, § 202(b), added par. (17).

1996

Subsec. (a)(8). Pub. L. 104–188 struck out par. (8) which read as follows: “Certain portion of lump-sum distributions from pension plans taxed under section 402(d).—The deduction allowed by section 402(d)(3).”

Subsec. (a)(16). Pub. L. 104–191 added par. (16).

1993

Subsec. (a)(15). Pub. L. 103–66 added par. (15).

1992

Subsec. (a)(8). Pub. L. 102–318 substituted “402(d)” for “402(e)” in heading and in text.

Subsec. (a)(14). Pub. L. 102–486 added par. (14).

1990

Subsec. (a)(13). Pub. L. 101–508, § 11802(e)(1), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “The deduction allowed by section 220.”

1988

Subsec. (a)(2)(A). Pub. L. 100–647, § 1001(b)(3)(A), inserted at end “The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.”

Subsec. (a)(13). Pub. L. 100–647, § 6007(b), added par. (13).

Subsec. (c). Pub. L. 100–485 added subsec. (c).

1986

Subsec. (a). Pub. L. 99–514, § 132(b)(2)(A), designated existing provisions as subsec. (a) and added heading.

Subsec. (a)(2). Pub. L. 99–514, § 132(b)(1), amended par. (2) generally, substituting “Certain trade” for “Trade” in heading and inserting “of employees” in subpar. (A) heading, substituting provision relating to deduction of certain expenses of performing artists for provision relating to deduction of expenses for travel away from home in subpar. (B), and striking out subpar. (C) relating to deduction of travel expenses and subpar. (D) relating to deduction of expenses of outside salesmen.

Subsec. (a)(3) to (5). Pub. L. 99–514, § 301(b)(1), redesignated pars. (4) to (6) as (3) to (5), respectively, and struck out former par. (3) which related to long-term capital gains and read as follows: “The deduction allowed by section 1202.”

Subsec. (a)(6). Pub. L. 99–514, § 301(b)(1), redesignated par. (7) as (6). Former par. (6) redesignated (5).

Pub. L. 99–514, § 1875(c)(3), struck out “to the extent attributable to contributions made on behalf of such individual” after “section 404”.

Subsec. (a)(7). Pub. L. 99–514, § 301(b)(1), redesignated par. (10) as (7). Former par. (7) redesignated (6).

Subsec. (a)(8). Pub. L. 99–514, § 301(b)(1), redesignated par. (11) as (8). Former par. (8) struck out.

Pub. L. 99–514, § 132(c), struck out par. (8) which related to moving expense deduction and read as follows: “The deduction allowed by section 217.”

Subsec. (a)(9) to (15). Pub. L. 99–514, § 301(b)(1), redesignated pars. (12) to (15) as (9) to (12), respectively. Former pars. (10) and (11) redesignated (7) and (8), respectively.

Subsec. (a)(16). Pub. L. 99–514, § 131(b)(1), struck out par. (16) which related to deduction for two-earner married couples and read as follows: “The deduction allowed by section 221.”

Subsec. (b). Pub. L. 99–514, § 132(b)(2)(B), added subsec. (b).

1984

Par. (7). Pub. L. 98–369, § 491(d)(2), substituted “and annuity” for “annuity, and bond purchase” in heading, and substituted “the deduction allowed by section 404” for “the deductions allowed by section 404 and section 405(c)” in text.

1983

Par. (9). Pub. L. 97–354 repealed par. (9) relating to the deduction allowed by section 1379(b)(3).

1981

Par. (10). Pub. L. 97–34, § 311(h)(1), struck out “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)” after “retirement savings”.

Par. (14). Pub. L. 97–34, § 112(b)(2), redesignated par. (15) as (14). Former par. (14), relating to deduction for certain expenses of living abroad, was struck out.

Par. (15). Pub. L. 97–34, § 112(b)(2), redesignated par. (16) as (15). Former par. (15) redesignated (14).

Par. (16). Pub. L. 97–34, §§ 103(b), 112(b)(2), added par. (16). Former par. (16) redesignated (15).

1980

Par. (15). Pub. L. 96–451 added par. (15).

Par. (16). Pub. L. 96–608 added par. (16).

1978

Par. (14). Pub. L. 95–615 added par. (14).

1976

Par. (10). Pub. L. 94–455, § 1501(b)(1), inserted reference to the deduction allowed by section 220 (relating to retirement savings for certain married individuals).

Pars. (11), (12). Pub. L. 94–455, § 1901(a)(8), (9), redesignated par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits, as par. (12), and substituted “trade or business, to the extent” for “trade or business to the extent”.

Par. (13). Pub. L. 94–455, § 502(a), added par. (13).

1974

Par. (10). Pub. L. 93–406, § 2002(a)(2), added par. (10).

Par. (11). Pub. L. 93–483 added par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits. Another par. (11) relating to certain portions of lump-sum distributions from pension plans taxed under section 402(e) of this title, was added by Pub. L. 93–406, § 2005(c)(9).

1969

Par. (9). Pub. L. 91–172 added par. (9).

1964

Par. (8). Pub. L. 88–272 added par. (8).

1962

Par. (7). Pub. L. 87–792 added par. (7).

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Amendment by section 104(b)(2)(A) of Pub. L. 116–260 applicable to taxable years beginning after , see section 104(c) of div. EE of Pub. L. 116–260, set out as a note under section 25A of this title.

Pub. L. 116–260, div. EE, title II, § 212(d), , 134 Stat. 3068, provided that: “The amendments made by this section [amending this section and sections 63, 170, 6662, and 6751 of this title] shall apply to taxable years beginning after .”

Pub. L. 116–136, div. A, title II, § 2204(c), , 134 Stat. 345, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2018 Amendment

Pub. L. 115–141, div. T, § 101(d), , 132 Stat. 1157, provided that:

“(1)

In general.—

Except as otherwise provided in this subsection, the amendments made by this section [amending this section, sections 63, 172, 199A, 613, and 6662 of this title, and provisions set out as a note under section 74 of this title] shall take effect as if included in section 11011 of Public Law 115–97.

“(2)

Application of section 199 to certain qualified payments paid after 2017.—

The amendment made by subsection (c) [amending provisions set out as a note under section 74 of this title] shall take effect as if included in section 13305 of Public Law 115–97.”

Pub. L. 115–123, div. D, title II, § 41107(b), , 132 Stat. 158, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2017 Amendment

Amendment by section 11002(d)(1)(J) of Pub. L. 115–97 applicable to taxable years beginning after , see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

Pub. L. 115–97, title I, § 11011(e), , 131 Stat. 2071, provided that: “The amendments made by this section [enacting section 199A of this title and amending this section and sections 63, 170, 172, 246, 613, 613A, 3402, and 6662 of this title] shall apply to taxable years beginning after .”

Amendment by section 11051(b)(2)(A) of Pub. L. 115–97 applicable to any divorce or separation instrument (as defined in former section 71(b)(2) of this title as in effect before ) executed after , and to such instruments executed on or before , and modified after , if the modification expressly provides that the amendment made by section 11051 of Pub. L. 115–97 applies to such modification, see section 11051(c) of Pub. L. 115–97, set out as a note under section 61 of this title.

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, § 104(d), , 129 Stat. 3046, provided that:

“(1)

Extension.—

The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .

“(2)

Modifications.—

The amendments made by subsections (b) and (c) [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title I, § 101(b), , 128 Stat. 4013, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

Amendment by section 221(a)(34)(C) of Pub. L. 113–295 effective , subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2013 Amendment

Pub. L. 112–240, title II, § 201(b), , 126 Stat. 2323, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2010 Amendment

Pub. L. 111–312, title VII, § 721(b), , 124 Stat. 3316, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2008 Amendment

Pub. L. 110–343, div. C, title II, § 203(b), , 122 Stat. 3864, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2006 Amendment

Pub. L. 109–432, div. A, title I, § 108(b), , 120 Stat. 2939, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

Pub. L. 109–432, div. A, title IV, § 406(d), , 120 Stat. 2960, provided that: “The amendments made by subsection (a) [amending this section and sections 7443A and 7623 of this title] shall apply to information provided on or after the date of the enactment of this Act [].”

Effective Date of 2004 Amendment

Pub. L. 108–357, title VII, § 703(c), , 118 Stat. 1548, provided that: “The amendments made by this section [amending this section] shall apply to fees and costs paid after the date of the enactment of this Act [] with respect to any judgment or settlement occurring after such date.”

Pub. L. 108–311, title III, § 307(b), , 118 Stat. 1179, provided that: “The amendment made by subsection (a) [amending this section] shall apply to expenses paid or incurred in taxable years beginning after .”

Effective Date of 2003 Amendment

Pub. L. 108–173, title XII, § 1201(k), , 117 Stat. 2479, provided that: “The amendments made by this section [enacting sections 223 and 4980G of this title, amending this section and sections 106, 125, 220, 848, 3231, 3306, 3401, 4973, 4975, 6051, and 6693 of this title, and renumbering former section 223 of this title as section 224] shall apply to taxable years beginning after .”

Pub. L. 108–121, title I, § 109(c), , 117 Stat. 1342, provided that: “The amendments made by this section [amending this section and section 162 of this title] shall apply to amounts paid or incurred in taxable years beginning after .”

Effective Date of 2002 Amendment

Pub. L. 107–147, title IV, § 406(c), , 116 Stat. 44, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

Effective Date of 2001 Amendment

Pub. L. 107–16, title IV, § 431(d), , 115 Stat. 69, provided that: “The amendments made by this section [enacting section 222 of this title, amending this section and sections 86, 135, 137, 219, 221, and 469 of this title, and renumbering former section 222 of this title as section 223] shall apply to payments made in taxable years beginning after .”

Effective Date of 1997 Amendment

Pub. L. 105–34, title II, § 202(e), , 111 Stat. 809, provided that:

“The amendments made by this section [enacting section 221 of this title, amending this section and section 6050S of this title, and renumbering former section 221 of this title as section 222] shall apply to any qualified education loan (as defined in section 221(e)(1) of the Internal Revenue Code of 1986, as added by this section) incurred on, before, or after the date of the enactment of this Act [], but only with respect to—

“(1)

any loan interest payment due and paid after , and

“(2)

the portion of the 60-month period referred to in section 221(d) of the Internal Revenue Code of 1986 (as added by this section) after .”

Pub. L. 105–34, title IX, § 975(b), , 111 Stat. 898, provided that: “The amendment made by this section [amending this section] shall apply to expenses paid or incurred in taxable years beginning after .”

Effective Date of 1996 Amendment

Pub. L. 104–191, title III, § 301(j), , 110 Stat. 2052, provided that: “The amendments made by this section [enacting sections 220 and 4980E of this title, amending this section and sections 106, 125, 848, 3231, 3306, 3401, 4973, 4975, 6051, and 6693 of this title, and renumbering former section 220 of this title as section 221] shall apply to taxable years beginning after .”

Amendment by Pub. L. 104–188 applicable to taxable years beginning after , with retention of certain transition rules, see section 1401(c) of Pub. L. 104–188, set out as a note under section 402 of this title.

Effective Date of 1993 Amendment

Pub. L. 103–66, title XIII, § 13213(e), , 107 Stat. 475, provided that: “The amendments made by this section [amending this section and sections 67, 82, 132, 217, 1001, 1016, and 4977 of this title] shall apply to expenses incurred after ; except that the amendments made by subsection (d) [amending sections 82, 132, and 4977 of this title] shall apply to reimbursements or other payments in respect of expenses incurred after such date.”

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–486 applicable to property placed in service after , see section 1913(c) of Pub. L. 102–486, set out as a note under section 53 of this title.

Amendment by Pub. L. 102–318 applicable to distributions after , see section 521(e) of Pub. L. 102–318, set out as a note under section 402 of this title.

Effective Date of 1988 Amendment

Amendment by section 1001(b)(3)(A) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Pub. L. 100–647, title VI, § 6007(d), , 102 Stat. 3687, provided that: “The amendments made by this section [enacting section 220 of this title, amending this section, and renumbering former section 220 of this title as section 221] shall apply as if included in the amendments made by section 132 of the Tax Reform Act of 1986 [Pub. L. 99–514].”

Pub. L. 100–485, title VII, § 702(b), , 102 Stat. 2426, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

Effective Date of 1986 Amendment

Amendment by sections 131(b)(1) and 132(b), (c) of Pub. L. 99–514 applicable to taxable years beginning after , see section 151(a) of Pub. L. 99–514, set out as a note under section 1 of this title.

Pub. L. 99–514, title III, § 301(c), , 100 Stat. 2218, provided that: “The amendments made by this section [amending this section and sections 170, 172, 219, 220, 223, 642, 643, 691, 871, 1211, 1212, and 1402 of this title and repealing section 1202 of this title] shall apply to taxable years beginning after .”

Pub. L. 99–514, title XVIII, § 1875(c)(12), , 100 Stat. 2895, provided that: “The amendments made by paragraphs (3), (4), and (6) [amending this section and sections 219 and 408 of this title] shall take effect as if included in the amendments made by section 238 of the Tax Equity and Fiscal Responsibility Act of 1982 [section 238 of Pub. L. 97–248, see section 241 of Pub. L. 97–248, set out as an Effective Date note under section 416 of this title].”

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title IV, § 491(f)(1), , 98 Stat. 853, provided that: “The amendments and repeals made by subsections (a), (b), and (d) [amending this section, sections 55, 72, 172, 219, 402, 403, 406, 407, 408, 412, 414, 415, 457, 2039, 2517, 3121, 3306, 3401, 4972, 4973, 4975, 6047, 6058, 6104, 6652, 7207, 7476, and 7701 of this title, section 3107 of Title 31, Money and Finance, and section 409 of Title 42, The Public Health and Welfare, and repealing sections 405 and 409 of this title] shall apply to obligations issued after .”

Effective Date of 1983 Amendment

Par. (9) as in effect before date of repeal by Pub. L. 97–354 to remain in effect for years beginning before , see section 6(b)(1) of Pub. L. 97–354, set out as an Effective Date note under section 3761 of this title.

Effective Date of 1981 Amendment

Pub. L. 97–34, title I, § 103(d), , 95 Stat. 188, provided that: “The amendments made by this section [enacting section 219 of this title and amending this section and sections 85 and 105 of this title] shall apply to taxable years beginning after .”

Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97–34 applicable to taxable years beginning after , see sections 115 and 311(i)(1) of Pub. L. 97–34, set out as notes under sections 911 and 219, respectively, of this title.

Effective Date of 1980 Amendment

Pub. L. 96–608, § 3(b), , 94 Stat. 3551, provided that: “The amendment made by subsection (a) [amending this section] shall apply to repayments made in taxable years beginning after the date of the enactment of this Act [].”

Amendment by Pub. L. 96–451 applicable with respect to additions to capital account made after , see section 301(d) of Pub. L. 96–451, set out as an Effective Date note under section 194 of this title.

Effective Date of 1978 Amendment; Election of Prior Law

Amendment by Pub. L. 95–615 applicable to taxable years beginning after , with provision for election of prior law, see section 209 of Pub. L. 95–615, set out as a note under section 911 of this title.

Effective Date of 1976 Amendment

Pub. L. 94–455, title V, § 502(c), , 90 Stat. 1559, provided that: “The amendments made by this section [amending this section and section 3402 of this title] shall apply to taxable years beginning after .”

Pub. L. 94–455, title XV, § 1501(d), , 90 Stat. 1737, provided that: “The amendments made by this section [enacting section 220 of this title, amending this section and sections 219, 408, 409, 3401, 4973, and 6047 of this title, and renumbering former section 220 of this title as section 221], other than the amendment made by subsection (b)(3), shall apply to taxable years beginning after . The amendment made by subsection (b)(3) [amending section 415 of this title] shall apply to years beginning after .”

Amendment by section 1901(a)(8), (9) of Pub. L. 94–455 applicable with respect to taxable years beginning after , see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.

Effective Date of 1974 Amendment

Pub. L. 93–483, § 6(b), , 88 Stat. 1459, provided that: “The amendment made by this section [amending this section] applies to taxable years beginning after .”

Amendment by section 2002(a)(2) of Pub. L. 93–406 applicable to taxable years beginning after , see section 2002(i)(1) of Pub. L. 93–406, set out as an Effective Date note under section 219 of this title.

Amendment by section 2005(c)(9) of Pub. L. 93–406 applicable only with respect to distributions or payments made after , in taxable years beginning after , see section 2005(d) of Pub. L. 93–406, set out as a note under section 402 of this title.

Effective Date of 1969 Amendment

Amendment by Pub. L. 91–172 applicable with respect to taxable years of electing small business corporations beginning after , see section 531(d) of Pub. L. 91–172, set out as an Effective Date note under section 1379 of this title.

Effective Date of 1964 Amendment

Pub. L. 88–272, title II, § 213(d), , 78 Stat. 52, provided that: “The amendments made by subsections (a) [enacting section 217 of this title and renumbering former section 217 of this title as section 218] and (b) [amending this section] shall apply to expenses incurred after , in taxable years ending after such date. The amendment made by subsection (c) [amending section 3401 of this title] shall apply with respect to remuneration paid after the seventh day following the date of the enactment of this Act [].”

Effective Date of 1962 Amendment

Amendment by Pub. L. 87–792 applicable to taxable years beginning after , see section 8 of Pub. L. 87–792, set out as a note under section 22 of this title.

Regulations or Guidance Clarifying Application of Educator Expense Tax Deduction

Pub. L. 116–260, div. N, title II, § 275, , 134 Stat. 1978, provided that: “Not later than , the Secretary of the Treasury (or the Secretary’s delegate) shall by regulation or other guidance clarify that personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of COVID–19 are treated as described in section 62(a)(2)(D)(ii) of the Internal Revenue Code of 1986. Such regulations or other guidance shall apply to expenses paid or incurred after .”

Savings Provision

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

Plan Amendments Not Required Until January 1, 1998

For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after , see section 1465 of Pub. L. 104–188, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1994

For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Pub. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see section 523 of Pub. L. 102–318, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

Commuting Expenses

Pub. L. 95–427, § 2, , 92 Stat. 996, as amended by Pub. L. 96–167, § 2, , 93 Stat. 1275, provided that with respect to transportation costs paid or incurred after , and on or before , the application of sections 62, 162, and 262 and of chapters 21, 23, and 24 of the Internal Revenue Code of 1954 [now 1986] to transportation expenses in traveling between a taxpayer’s residence and place of work be determined without regard to Revenue Ruling 76–453 or any other regulation, ruling, or decision reaching the same or similar result, and with full regard to the rules in effect before that Revenue Ruling.

Pub. L. 95–615, § 2, , 92 Stat. 3097, provided that with respect to transportation costs paid or incurred after , and before , the application of sections 62, 162, and 262 and chapters 21, 23, and 24 of the Internal Revenue Code of 1954 [now 1986] to transportation expenses in traveling between a taxpayer’s residence and place of work be determined without regard to Revenue Ruling 76–453 or any other regulation, ruling or decision reaching the same or similar result, and with full regard to the rules in effect before that Revenue Ruling, and ceased to have effect on the day after pursuant to section 210(a) of that Act.

Credits

1954–2020 · 43 acts
  1. 1954Aug. 16, 1954, ch. 736, 68A Stat. 17
  2. 1962Pub. L. 87–792, § 7(b), , 76 Stat. 828
  3. 1964Pub. L. 88–272, title II, § 213(b), , 78 Stat. 52
  4. 1969Pub. L. 91–172, title V, § 531(b), , 83 Stat. 655
  5. 1974Pub. L. 93–406, title II, §§ 2002(a)(2), 2005(c)(9), , 88 Stat. 959, 992
  6. 1974Pub. L. 93–483, § 6(a), , 88 Stat. 1458
  7. 1976Pub. L. 94–455, title V, § 502(a), title XV, § 1501(b)(1), title XIX, § 1901(a)(8), (9), , 90 Stat. 1559, 1735, 1765
  8. 1978Pub. L. 95–615, § 203(b), , 92 Stat. 3106
  9. 1980Pub. L. 96–451, title III, § 301(b), , 94 Stat. 1990
  10. 1980Pub. L. 96–608, § 3(a), , 94 Stat. 3551
  11. 1981Pub. L. 97–34, title I, §§ 103(b), 112(b)(2), title III, § 311(h)(1), , 95 Stat. 187, 195, 282
  12. 1982Pub. L. 97–354, § 5(a)(17), , 96 Stat. 1693
  13. 1984Pub. L. 98–369, div. A, title IV, § 491(d)(2), , 98 Stat. 849
  14. 1986Pub. L. 99–514, title I, §§ 131(b)(1), 132(b), (c), title III, § 301(b)(1), title XVIII, § 1875(c)(3), , 100 Stat. 2113, 2115, 2116, 2217, 2894
  15. 1988Pub. L. 100–485, title VII, § 702(a), , 102 Stat. 2426
  16. 1988Pub. L. 100–647, title I, § 1001(b)(3)(A), title VI, § 6007(b), , 102 Stat. 3349, 3687
  17. 1990Pub. L. 101–508, title XI, § 11802(e)(1), , 104 Stat. 1388–530
  18. 1992Pub. L. 102–318, title V, § 521(b)(2), , 106 Stat. 310
  19. 1992Pub. L. 102–486, title XIX, § 1913(a)(2), , 106 Stat. 3019
  20. 1993Pub. L. 103–66, title XIII, § 13213(c)(1), , 107 Stat. 474
  21. 1996Pub. L. 104–188, title I, § 1401(b)(4), , 110 Stat. 1788
  22. 1996Pub. L. 104–191, title III, § 301(b), , 110 Stat. 2048
  23. 1997Pub. L. 105–34, title II, § 202(b), title IX, § 975(a), , 111 Stat. 808, 898
  24. 2000Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(1)], , 114 Stat. 2763, 2763A–629
  25. 2001Pub. L. 107–16, title IV, § 431(b), , 115 Stat. 68
  26. 2002Pub. L. 107–147, title IV, § 406(a), (b), , 116 Stat. 43
  27. 2003Pub. L. 108–121, title I, § 109(b), , 117 Stat. 1341
  28. 2003Pub. L. 108–173, title XII, § 1201(b), , 117 Stat. 2476
  29. 2004Pub. L. 108–311, title III, § 307(a), , 118 Stat. 1179
  30. 2004Pub. L. 108–357, title VII, § 703(a), (b), , 118 Stat. 1546, 1547
  31. 2005Pub. L. 109–135, title IV, § 412(q), , 119 Stat. 2638
  32. 2006Pub. L. 109–432, div. A, title I, § 108(a), title IV, § 406(a)(3), , 120 Stat. 2939, 2959
  33. 2008Pub. L. 110–343, div. C, title II, § 203(a), , 122 Stat. 3864
  34. 2010Pub. L. 111–312, title VII, § 721(a), , 124 Stat. 3316
  35. 2013Pub. L. 112–240, title II, § 201(a), , 126 Stat. 2323
  36. 2014Pub. L. 113–295, div. A, title I, § 101(a), title II, § 221(a)(34)(C), , 128 Stat. 4012, 4042
  37. 2015Pub. L. 114–113, div. Q, title I, § 104(a)–(c), , 129 Stat. 3045
  38. 2017Pub. L. 115–97, title I, §§ 11002(d)(1)(J), 11011(b)(1), 11051(b)(2)(A), , 131 Stat. 2060, 2070, 2089
  39. 2018Pub. L. 115–123, div. D, title II, § 41107(a), , 132 Stat. 158
  40. 2018Pub. L. 115–141, div. T, § 101(a)(2)(B), div. U, title IV, § 401(a)(31), (32), , 132 Stat. 1155, 1185, 1186
  41. 2019Pub. L. 116–92, div. A, title XI, § 1122(d)(2)(B), , 133 Stat. 1609
  42. 2020Pub. L. 116–136, div. A, title II, § 2204(a), (b), , 134 Stat. 345
  43. 2020Pub. L. 116–260, div. EE, title I, § 104(b)(2)(A), title II, § 212(c), , 134 Stat. 3041, 3068.
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(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 87–792, § 7(b), , 76 Stat. 828; Pub. L. 88–272, title II, § 213(b), , 78 Stat. 52; Pub. L. 91–172, title V, § 531(b), , 83 Stat. 655; Pub. L. 93–406, title II, §§ 2002(a)(2), 2005(c)(9), , 88 Stat. 959, 992; Pub. L. 93–483, § 6(a), , 88 Stat. 1458; Pub. L. 94–455, title V, § 502(a), title XV, § 1501(b)(1), title XIX, § 1901(a)(8), (9), , 90 Stat. 1559, 1735, 1765; Pub. L. 95–615, § 203(b), , 92 Stat. 3106; Pub. L. 96–451, title III, § 301(b), , 94 Stat. 1990; Pub. L. 96–608, § 3(a), , 94 Stat. 3551; Pub. L. 97–34, title I, §§ 103(b), 112(b)(2), title III, § 311(h)(1), , 95 Stat. 187, 195, 282; Pub. L. 97–354, § 5(a)(17), , 96 Stat. 1693; Pub. L. 98–369, div. A, title IV, § 491(d)(2), , 98 Stat. 849; Pub. L. 99–514, title I, §§ 131(b)(1), 132(b), (c), title III, § 301(b)(1), title XVIII, § 1875(c)(3), , 100 Stat. 2113, 2115, 2116, 2217, 2894; Pub. L. 100–485, title VII, § 702(a), , 102 Stat. 2426; Pub. L. 100–647, title I, § 1001(b)(3)(A), title VI, § 6007(b), , 102 Stat. 3349, 3687; Pub. L. 101–508, title XI, § 11802(e)(1), , 104 Stat. 1388–530; Pub. L. 102–318, title V, § 521(b)(2), , 106 Stat. 310; Pub. L. 102–486, title XIX, § 1913(a)(2), , 106 Stat. 3019; Pub. L. 103–66, title XIII, § 13213(c)(1), , 107 Stat. 474; Pub. L. 104–188, title I, § 1401(b)(4), , 110 Stat. 1788; Pub. L. 104–191, title III, § 301(b), , 110 Stat. 2048; Pub. L. 105–34, title II, § 202(b), title IX, § 975(a), , 111 Stat. 808, 898; Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(1)], , 114 Stat. 2763, 2763A–629; Pub. L. 107–16, title IV, § 431(b), , 115 Stat. 68; Pub. L. 107–147, title IV, § 406(a), (b), , 116 Stat. 43; Pub. L. 108–121, title I, § 109(b), , 117 Stat. 1341; Pub. L. 108–173, title XII, § 1201(b), , 117 Stat. 2476; Pub. L. 108–311, title III, § 307(a), , 118 Stat. 1179; Pub. L. 108–357, title VII, § 703(a), (b), , 118 Stat. 1546, 1547; Pub. L. 109–135, title IV, § 412(q), , 119 Stat. 2638; Pub. L. 109–432, div. A, title I, § 108(a), title IV, § 406(a)(3), , 120 Stat. 2939, 2959; Pub. L. 110–343, div. C, title II, § 203(a), , 122 Stat. 3864; Pub. L. 111–312, title VII, § 721(a), , 124 Stat. 3316; Pub. L. 112–240, title II, § 201(a), , 126 Stat. 2323; Pub. L. 113–295, div. A, title I, § 101(a), title II, § 221(a)(34)(C), , 128 Stat. 4012, 4042; Pub. L. 114–113, div. Q, title I, § 104(a)–(c), , 129 Stat. 3045; Pub. L. 115–97, title I, §§ 11002(d)(1)(J), 11011(b)(1), 11051(b)(2)(A), , 131 Stat. 2060, 2070, 2089; Pub. L. 115–123, div. D, title II, § 41107(a), , 132 Stat. 158; Pub. L. 115–141, div. T, § 101(a)(2)(B), div. U, title IV, § 401(a)(31), (32), , 132 Stat. 1155, 1185, 1186; Pub. L. 116–92, div. A, title XI, § 1122(d)(2)(B), , 133 Stat. 1609; Pub. L. 116–136, div. A, title II, § 2204(a), (b), , 134 Stat. 345; Pub. L. 116–260, div. EE, title I, § 104(b)(2)(A), title II, § 212(c), , 134 Stat. 3041, 3068.)

Parsed from the official OLRC USLM XML in data/usc_all/usc26.xml · release point 119-108 · OLRC build 2026-09-16

USLM identifier /us/usc/t26/s62