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42 U.S. Code § 411 - Definitions relating to self-employment

For the purposes of this subchapter—

(a) Net earnings from self-employmentThe term “net earnings from self-employment” means the gross income, as computed under subtitle A of theInternal Revenue Code of 1986, derived by an individual from any trade or businesscarried on by such individual, less the deductions allowed under such subtitle which are attributable to such trade or business, plus his distributive share (whether or not distributed) of the ordinary net income or loss, as computed under section 702(a)(8) of such Code, from any trade or businesscarried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary net income or loss—

(1)

There shall be excluded rentals from real estate and from personal property leased with the real estate (including such rentals paid in crop shares, and including payments undersection 3833(2) of title 16 [1] to individuals receiving benefits under section402 or423 of this title), together with the deductions attributable thereto, unless such rentals are received in the course of a trade or businessas a real estate dealer; except that the preceding provisions of this paragraph shall not apply to any income derived by the owner or tenant of land if (A) such income is derived under an arrangement, between the owner or tenant and another individual, which provides that such other individual shall produce agricultural or horticultural commodities (including livestock, bees, poultry, and fur-bearing animals and wildlife) on such land, and that there shall be material participation by the owner or tenant (as determined without regard to any activities of an agent of such owner or tenant) in the production or the management of the production of such agricultural or horticultural commodities, and (B) there is material participation by the owner or tenant (as determined without regard to any activities of an agent of such owner or tenant) with respect to any such agricultural or horticultural commodity;

(2)

There shall be excluded dividends on any share of stock, and interest on any bond, debenture, note, or certificate, or other evidence of indebtedness, issued with interest benefits [2] or in registered form by any corporation(including one issued by a government or political subdivision thereof), unless such dividends and interest are received in the course of a trade or businessas a dealer in stocks or securities;

(3)

There shall be excluded any gain or loss (A) which is considered under subtitle A of theInternal Revenue Code of 1986 as gain or loss from the sale or exchange of a capital asset, (B) from the cutting of timber, or the disposal of timber, coal, or iron ore, if section 631 of theInternal Revenue Code of 1986 applies to such gain or loss, or (C) from the sale, exchange, involuntary conversion, or other disposition of property if such property is neither (i) stock in trade or other property of a kind which would properly be includible in inventory if on hand at the close of the taxable year, nor (ii) property held primarily for sale to customers in the ordinary course of the trade or business;

(4)

The deduction for net operating losses provided in section 172 of theInternal Revenue Code of 1986 shall not be allowed;

(5)

(A)

If any of the income derived from atrade or business (other than atrade or business carried on by a partnership) is community income under community property laws applicable to such income, the gross income and deductions attributable to suchtrade or business shall be treated as the gross income and deductions of the spousecarrying on suchtrade or business or, if suchtrade or business is jointly operated, treated as the gross income and deductions of each spouseon the basis of their respective distributive share of the gross income and deductions;

(B)

If any portion of apartner’s distributive share of the ordinary net income or loss from atrade or business carried on by a partnership is community income or loss under the community property laws applicable to such share, all of such distributive share shall be included in computing the net earnings from self-employmentof such partner, and no part of such share shall be taken into account in computing the net earnings from self-employmentof the spouseof such partner;

(6)

A resident of the Commonwealth of PuertoRico shall compute his net earnings from self-employmentin the same manner as a citizen of the United Statesbut without regard to the provisions of section 933 of theInternal Revenue Code of 1986;

(7)

An individual who is a duly ordained, commissioned, or licensed minister of a church or a member of a religious order shall compute hisnet earnings from self-employment derived from the performance of service described in subsection (c)(4) without regard to section 107 (relating to rental value of parsonages), section 119 (relating to meals and lodging furnished for the convenience of the employer), and section 911 (relating to earned income from sources without the United States) of theInternal Revenue Code of 1986, but shall not include in any such net earnings from self-employmentthe rental value of any parsonage or any parsonage allowance (whether or not excluded under section 107 of theInternal Revenue Code of 1986) provided after the individual retires, or any other retirement benefit received by such individual from a church plan (as defined in section 414(e) of such Code) after the individual retires;

(8)

The exclusion from gross income provided by section 931 of theInternal Revenue Code of 1986 shall not apply;

(9) There shall be excluded amounts received by apartner pursuant to a written plan of the partnership, which meets such requirements as are prescribed by the Secretaryof the Treasury or his delegate, and which provides for payments on account of retirement, on a periodic basis, topartners generally or to a class or classes ofpartners, such payments to continue at least until suchpartner’s death, if—

(A)

suchpartner rendered no services with respect to anytrade or business carried on by such partnership (or its successors) during the taxable yearof such partnership (or its successors), ending within or with his taxable year, in which such amounts were received, and

(B)

no obligation exists (as of the close of the partnership’staxable year referred to in subparagraph (A)) from the other partnersto such partnerexcept with respect to retirement payments under such plan, and

(C)

suchpartner’s share, if any, of the capital of the partnership has been paid to him in full before the close of the partnership’staxable year referred to in subparagraph (A);

(10)

The exclusion from gross income provided by section 911(a)(1) of theInternal Revenue Code of 1986 shall not apply;

(11) In lieu of the deduction provided by section 164(f) of theInternal Revenue Code of 1986 (relating to deduction for one-half of self-employmenttaxes), there shall be allowed a deduction equal to the product of—

(A)

the taxpayer’snet earnings from self-employment for the taxable year(determined without regard to this paragraph), and

(B)

one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 of such Code for such year;

(12)

There shall be excluded the distributive share of any item of income or loss of a limitedpartner, as such, other than guaranteed payments described in section 707(c) of theInternal Revenue Code of 1986 to that partnerfor services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services;

(13)

In the case ofchurch employee income, the special rules of subsection (i)(1) shall apply;

(14)

There shall be excluded income excluded from taxation under section 7873 of theInternal Revenue Code of 1986 (relating to income derived by Indians from exercise of fishing rights);

(15)

The deduction under section 162(l) of theInternal Revenue Code of 1986 (relating to health insurance costs of self-employed individuals) shall not be allowed; and

(16)

Notwithstanding the preceding provisions of this subsection, eachspouse’s share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) of theInternal Revenue Code of 1986 in determining net earnings from self-employmentof such spouse.

If thetaxable year of a partneris different from that of the partnership, the distributive share which he is required to include in computing hisnet earnings from self-employment shall be based upon the ordinary net income or loss of the partnership for any taxable yearof the partnership (even though beginning prior to 1951) ending within or with his taxable year. In the case of anytrade or business which is carried on by an individual or by a partnership and in which, if suchtrade or business were carried on exclusively by employees, the major portion of the services would constitute agricultural laboras defined insection 410(f) of this title—

(i)

in the case of an individual, if the gross income derived by him from suchtrade or business is not more than the upper limit, the net earnings from self-employmentderived by him from suchtrade or business may, at his option, be deemed to be 66⅔ percent of such gross income; or

(ii)

in the case of an individual, if the gross income derived by him from suchtrade or business is more than the upper limit and the net earnings from self-employmentderived by him from suchtrade or business (computed under this subsection without regard to this sentence) are less than the lower limit, the net earnings from self-employmentderived by him from suchtrade or business may, at his option, be deemed to be the lower limit; and

(iii)

in the case of a member of a partnership, if his distributive share of the gross income of the partnership derived from suchtrade or business (after such gross income has been reduced by the sum of all payments to which section 707(c) of theInternal Revenue Code of 1986 applies) is not more than the upper limit, his distributive share of income described in section 702(a)(8) of such Code derived from such trade or businessmay, at his option, be deemed to be an amount equal to 66⅔ percent of his distributive share of such gross income (after such gross income has been so reduced); or

(iv)

in the case of a member of a partnership, if his distributive share of the gross income of the partnership derived from suchtrade or business (after such gross income has been reduced by the sum of all payments to which section 707(c) of theInternal Revenue Code of 1986 applies) is more than the upper limit and his distributive share (whether or not distributed) of income described in section 702(a)(8) of such Code derived from such trade or business(computed under this subsection without regard to this sentence) is less than the lower limit, his distributive share of income described in such section 702(a)(8) derived from such trade or businessmay, at his option, be deemed to be the lower limit.

For purposes of the preceding sentence, gross income means—

(v)

in the case of any suchtrade or business in which the income is computed under a cash receipts and disbursements method, the gross receipts from suchtrade or business reduced by the cost or other basis of property which was purchased and sold in carrying on suchtrade or business, adjusted (after such reduction) in accordance with the provisions of paragraphs (1) through (6) and paragraph (8) of this subsection; and

(vi)

in the case of any suchtrade or business in which the income is computed under an accrual method, the gross income from suchtrade or business, adjusted in accordance with the provisions of paragraphs (1) through (6) and paragraph (8) of this subsection;

and, for purposes of such sentence, if an individual (including a member of a partnership) derives gross income from more than one suchtrade or business, such gross income (including his distributive share of the gross income of any partnership derived from any suchtrade or business) shall be deemed to have been derived from onetrade or business.

The preceding sentence and clauses (i) through (iv) of the second preceding sentence shall also apply in the case of anytrade or business (other than atrade or business specified in such second preceding sentence) which is carried on by an individual who is self-employed on a regular basis as defined in subsection (g), or by a partnership of which an individual is a member on a regular basis as defined in subsection (g), but only if such individual’s net earnings from self-employmentin the taxable yearas determined without regard to this sentence are less than the lower limit and less than 66⅔ percent of the sum (in such taxable year) of such individual’s gross income derived from all trades or businesses carried on by him and his distributive share of the income or loss from all trades or businesses carried on by all the partnerships of which he is a member; except that this sentence shall not apply to more than 5 taxable yearsin the case of any individual, and in no case in which an individual elects to determine the amount of his net earnings from self-employmentfor a taxable yearunder the provisions of the two preceding sentences with respect to atrade or business to which the second preceding sentence applies and with respect to atrade or business to which this sentence applies shall such net earnings for such year exceed the lower limit.

(b) Self-employment incomeThe term “self-employment income” means thenet earnings from self-employment derived by an individual (other than a nonresident alien individual, except as provided by an agreement undersection 433 of this title) during any taxable yearbeginning after 1950; except that such term shall not include—

(1) That part of thenet earnings from self-employment which is in excess of—

(A)

For anytaxable year ending prior to 1955, (i) $3,600, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(B)

For anytaxable year ending after 1954 and prior to 1959, (i) $4,200, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(C)

For anytaxable year ending after 1958 and prior to 1966, (i) $4,800, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(D)

For anytaxable year ending after 1965 and prior to 1968, (i) $6,600, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(E)

For anytaxable year ending after 1967 and beginning prior to 1972, (i) $7,800, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(F)

For anytaxable year beginning after 1971 and prior to 1973, (i) $9,000, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(G)

For anytaxable year beginning after 1972 and prior to 1974, (i) $10,800, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(H)

For anytaxable year beginning after 1973 and prior to 1975, (i) $13,200, minus (ii) the amount of the wagespaid to such individual during thetaxable year; and

(I)

For anytaxable year beginning in any calendar year after 1974, (i) an amount equal to the contribution and benefit base (as determined undersection 430 of this title) which is effective for such calendar year, minus (ii) the amount of the wagespaid to such individual during such taxable year; or

(2)

Thenet earnings from self-employment, if such net earnings for the taxable yearare less than $400.

An individual who is not a citizen of theUnited States but who is a resident of the Commonwealth of PuertoRico, the Virgin Islands, Guam, or American Samoa shall not, for the purpose of this subsection, be considered to be a nonresident alien individual. In the case of church employee income, the special rules of subsection (i)(2) shall apply for purposes of paragraph (2).

(c) Trade or businessThe term “trade or business”, when used with reference to self-employment incomeor net earnings from self-employment, shall have the same meaning as when used in section 162 of theInternal Revenue Code of 1986, except that such term shall not include—

(1)

The performance of the functions of a public office, other than the functions of a public office of aState or a political subdivision thereof with respect to fees received in any period in which the functions are performed in a position compensated solely on a fee basis and in which such functions are not covered under an agreement entered into by suchState and the Commissioner of Social Security pursuant tosection 418 of this title;

(2) The performance of service by an individual as anemployee, other than—

(A)

service described insection 410(a)(14)(B) of this title performed by an individual who has attained the age of eighteen,

(B)

service described insection 410(a)(16) of this title,

(C)

service described in section 410(a) (11), (12), or (15) of this title performed in theUnited States by a citizen of theUnited States, except service which constitutes“employment” undersection 410(r) of this title,

(D)

service described in paragraph (4) of this subsection,

(E)

service performed by an individual as anemployee of a Stateor a political subdivision thereof in a position compensated solely on a fee basis with respect to fees received in any period in which such service is not covered under an agreement entered into by such Stateand the Commissioner of Social Security pursuant tosection 418 of this title,

(F)

service described insection 410(a)(20) of this title, and

(G)

service described insection 410(a)(8)(B) of this title;

(3)

The performance of service by an individual as anemployee oremployee representative as defined in section 3231 of theInternal Revenue Code of 1986;

(4)

The performance of service by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order;

(5)

The performance of service by an individual in the exercise of his profession as a Christian Science practitioner; or

(6)

The performance of service by an individual during the period for which an exemption under section 1402(g) of theInternal Revenue Code of 1986 is effective with respect to him.

The provisions of paragraph (4) or (5) shall not apply to service (other than service performed by a member of a religious order who has taken a vow of poverty as a member of such order) performed by an individual unless an exemption under section 1402(e) of theInternal Revenue Code of 1986 is effective with respect to him.

(d) Partnership and partner

The term “partnership” and the term “partner” shall have the same meaning as when used in subchapter K of chapter 1 of theInternal Revenue Code of 1986.

(e) Taxable year

The term “taxable year” shall have the same meaning as when used in subtitle A of theInternal Revenue Code of 1986; and the taxable yearof any individual shall be a calendar year unless he has a different taxable yearfor the purposes of subtitle A of such Code, in which case his taxable yearfor the purposes of this subchapter shall be the same as his taxable yearunder such subtitle A.

(f) Partner’s taxable year ending as result of deathIn computing apartner’snet earnings from self-employment for his taxable yearwhich ends as a result of his death (but only if such taxable yearends within, and not with, the taxable yearof the partnership), there shall be included so much of thedeceased partner’s distributive share of the partnership’s ordinary income or loss for the partnership taxable yearas is not attributable to an interest in the partnership during any period beginning on or after the first day of the first calendar month following the month in which such partnerdied. For purposes of this subsection—

(1)

in determining the portion of the distributive share which is attributable to any period specified in the preceding sentence, the ordinary income or loss of the partnership shall be treated as having been realized or sustained ratably over the partnershiptaxable year; and

(2)

the term “deceased partner’s distributive share” includes the share of his estate or of any other personsucceeding, by reason of his death, to rights with respect to his partnership interest.

(g) Regular basis

An individual shall be deemed to be self-employed on a regular basis in ataxable year, or to be a member of a partnership on a regular basis in such year, if he hadnet earnings from self-employment, as defined in the first sentence of subsection (a), of not less than $400 in at least two of the three consecutive taxable yearsimmediately preceding such taxable yearfrom trades or businesses carried on by such individual or such partnership.

(h) Option dealers and commodity dealers

(1) In determining thenet earnings from self-employment of anyoptions dealer orcommodities dealer—

(A)

notwithstanding subsection (a)(3)(A), there shall not be excluded any gain or loss (in the normal course of the taxpayer’s activity of dealing in or tradingsection 1256 contracts) from section 1256 contracts or property related to such contracts, and

(B)

the deduction provided by section 1202 of theInternal Revenue Code of 1986 shall not apply.

(2) For purposes of this subsection—

(A)

The term “options dealer” has the meaning given such term by section 1256(g)(8) of such Code.

(B)

The term “commodities dealer” means a personwho is actively engaged in tradingsection 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.

(C)

The term “section 1256 contracts” has the meaning given to such term by section 1256(b) of such Code.

(i) Church employee income

(1) In applying subsection (a)—

(A)

church employee income shall not be reduced by any deduction;

(B)

church employee income and deductions attributable to such income shall not be taken into account in determining the amount of other net earnings from self-employment.

(2)

(A) Subsection (b)(2) shall be applied separately—

(i)

tochurch employee income, and

(ii)

to othernet earnings from self-employment.

(B)

In applying subsection (b)(2) tochurch employee income, “$100” shall be substituted for “$400”.

(3)

Paragraph (1) shall not apply to any amount allowable as a deduction under subsection (a)(11), and paragraph (1) shall be applied before determining the amount so allowable.

(4)

For purposes of this section, the term “church employee income” means gross income for services which are described insection 410(a)(8)(B) of this title (and are not described insection 410(a)(8)(A) of this title).

(j) Codification of treatment of certain termination payments received by former insurance salesmenNothing in subsection (a) shall be construed as including in thenet earnings from self-employment of an individual any amount received during the taxable yearfrom an insurance company on account of services performed by such individual as an insurance salesman for such company if—

(1)

such amount is received after termination of such individual’s agreement to perform such services for such company,

(2)

such individual performs no services for such company after such termination and before the close of suchtaxable year,

(3)

such individual enters into a covenant not to compete against such company which applies to at least the 1-year period beginning on the date of such termination, and

(4) the amount of such payment—

(A)

depends primarily on policies sold by or credited to the account of such individual during the last year of such agreement or the extent to which such policies remain in force for some period after such termination, or both, and

(B)

does not depend to any extent on length of service or overall earnings from services performed for such company (without regard to whether eligibility for payment depends on length of service).

(k) Upper and lower limitsFor purposes of subsection (a)—

(1)

The lower limit for anytaxable year is the sum of the amounts required undersection 413(d) of this title for a quarter of coveragein effect with respect to each calendar quarterending with or within such taxable year.

(2)

The upper limit for anytaxable year is the amount equal to 150 percent of the lower limit for suchtaxable year.

(Aug. 14, 1935, ch. 531, title II, § 211, as added Aug. 28, 1950, ch. 809, title I, § 104(a),64 Stat. 492, 502; amended Sept. 23, 1950, ch. 994, title II, § 221(j)(2),64 Stat. 947; Sept. 1, 1954, ch. 1206, title I, §§ 101(d), (g), 104(b),68 Stat. 1054, 1078; Aug. 1, 1956, ch. 836, title I, §§ 104(c)(2), (3), (d), (h), 106(a),70 Stat. 824–826, 828;Pub. L. 85–239, § 5(a),Aug. 30, 1957,71 Stat. 523;Pub. L. 85–840, title I, § 102(b), title III, § 313(a),Aug. 28, 1958,72 Stat. 1019, 1036;Pub. L. 86–778, title I, §§ 103(g), (h), (j)(3), 106(a),Sept. 13, 1960,74 Stat. 937, 938, 945;Pub. L. 88–272, title II, § 227(b)(7),Feb. 26, 1964,78 Stat. 98;Pub. L. 89–97, title III, §§ 311(a)(1), (2), 312(a), 319(b), 320(a)(2),July 30, 1965,79 Stat. 380, 381, 391, 393;Pub. L. 90–248, title I, §§ 108(a)(2), 115(a), 118(b), 122(a),Jan. 2, 1968,81 Stat. 834, 839, 841, 843;Pub. L. 92–5, title II, § 203(a)(2),Mar. 17, 1971,85 Stat. 10;Pub. L. 92–336, title II, § 203(a)(2),July 1, 1972,86 Stat. 418;Pub. L. 92–603, title I, §§ 121(a), 124(a), 140(a),Oct. 30, 1972,86 Stat. 1353, 1357, 1366;Pub. L. 93–66, title II, § 203(a)(2),July 9, 1973,87 Stat. 153;Pub. L. 93–233, § 5(a)(2),Dec. 31, 1973,87 Stat. 953;Pub. L. 93–368, § 10(a),Aug. 7, 1974,88 Stat. 422;Pub. L. 94–455, title XII, § 1207(e)(2)(B),Oct. 4, 1976,90 Stat. 1707;Pub. L. 95–216, title III, § 313(a),Dec. 20, 1977,91 Stat. 1535;Pub. L. 95–600, title VII, § 703(j)(14)(D), (E),Nov. 6, 1978,92 Stat. 2942;Pub. L. 98–21, title I, § 124(c)(3), title III, §§ 322(b)(1), 323(b)(2),Apr. 20, 1983,97 Stat. 90, 121;Pub. L. 98–369, div. A, title I, § 102(c)(2), div. B, title VI, §§ 2603(c)(1), (d)(1), 2663(a)(8),July 18, 1984,98 Stat. 622, 1129, 1163;Pub. L. 99–514, title XVIII, §§ 1882(b)(2), 1883(a)(6),Oct. 22, 1986,100 Stat. 2915, 2916;Pub. L. 100–203, title IX, §§ 9022(a), 9023(b),Dec. 22, 1987,101 Stat. 1330–295, 1330–296;Pub. L. 100–647, title I, § 1011B(b)(4), title III, § 3043(b), title VIII, § 8016(a)(2),Nov. 10, 1988,102 Stat. 3488, 3642, 3792;Pub. L. 101–508, title V, §§ 5123(a)(1), 5130(a)(2), (3),Nov. 5, 1990,104 Stat. 1388–284, 1388–289;Pub. L. 103–296, title I, § 107(a)(4), title III, §§ 319(b)(2), 321(a)(14), (c)(5), (6)(E)–(G),Aug. 15, 1994,108 Stat. 1478, 1535, 1536, 1538;Pub. L. 105–34, title IX, § 922(b),Aug. 5, 1997,111 Stat. 880;Pub. L. 108–203, title IV, §§ 422(a), 424(a), 425(a),Mar. 2, 2004,118 Stat. 536;Pub. L. 110–28, title VIII, § 8215(b)(2),May 25, 2007,121 Stat. 194;Pub. L. 110–234, title IV, § 4115(c)(1)(A)(i), (B)(iii), title XV, §§ 15301(b), 15352(b)(1), (2),May 22, 2008,122 Stat. 1109, 1501, 1526;Pub. L. 110–246, § 4(a), title IV, § 4115(c)(1)(A)(i), (B)(iii), title XV, §§ 15301(b), 15352(b)(1), (2),June 18, 2008,122 Stat. 1664, 1870, 2263, 2288.)

[1] See References in Text note below.

[2] So in original. Probably should be “coupons”. See 2008 Amendment note below.

Editorial Notes

References in Text

TheInternal Revenue Code of 1986, referred to in text, is classified to Title 26,Internal Revenue Code.

Section 3833(2) of title 16, referred to in subsec. (a)(1), was in the original a reference to “section 1233(2) of theFood Security Act of 1985 (16 U.S.C. 3833(2))”, which issection 1233(2) of Pub. L. 99–198, and which was classified tosection 3833(2) of Title 16, Conservation, prior to the general amendment of section 1233 byPub. L. 113–79, title II, § 2004,Feb. 7, 2014,128 Stat. 715. As so amended, the substance of former section 1233(2) now appears in section 1233(a)(2), which is classified tosection 3833(a)(2) of Title 16.

Codification

Pub. L. 110–234 andPub. L. 110–246 made identical amendments to this section. The amendments byPub. L. 110–234 were repealed bysection 4(a) of Pub. L. 110–246.

Amendments

2008—Subsec. (a).Pub. L. 110–246, § 15352(b)(1), in concluding provisions, substituted “the upper limit” for “$2,400” wherever appearing and “the lower limit” for “$1,600” wherever appearing.

Subsec. (a)(1).Pub. L. 110–246, § 15301(b), inserted “, and including payments undersection 3833(2) of title 16 to individuals receiving benefits under section 402 or 423 of this title” after “crop shares”.

Subsec. (a)(2).Pub. L. 110–246, § 4115(c)(1)(A)(i), (B)(iii), substituted “benefits” for “coupons”.

Subsec. (k).Pub. L. 110–246, § 15352(b)(2), added subsec. (k).

2007—Subsec. (a)(16).Pub. L. 110–28 added par. (16).

2004—Subsec. (a)(5)(A).Pub. L. 108–203, § 425(a), substituted “the gross income and deductions attributable to such trade or businessshall be treated as the gross income and deductions of the spousecarrying on such trade or businessor, if such trade or businessis jointly operated, treated as the gross income and deductions of each spouseon the basis of their respective distributive share of the gross income and deductions;” for “all of the gross income and deductions attributable to such trade or businessshall be treated as the gross income and deductions of the husbandunless the wifeexercises substantially all of the management and control of such trade or business, in which case all of such gross income and deductions shall be treated as the gross income and deductions of the wife;”.

Subsec. (a)(7).Pub. L. 108–203, § 422(a), inserted “, but shall not include in any such net earnings from self-employmentthe rental value of any parsonage or any parsonage allowance (whether or not excluded under section 107 of theInternal Revenue Code of 1986) provided after the individual retires, or any other retirement benefit received by such individual from a church plan (as defined in section 414(e) of such Code) after the individual retires” before semicolon at end.

Subsec. (a)(15).Pub. L. 108–203, § 424(a), substituted “section 162(l)” for “section 162(m)”.

1997—Subsec. (j).Pub. L. 105–34 added subsec. (j).

1994—Subsec. (a).Pub. L. 103–296, § 321(c)(6)(E), substituted “1986” for “1954” after “Code of” wherever appearing in introductory provisions, in pars. (3), (4), (6), (10), (11), and (12), and in cls. (iii) and (iv) of closing provisions.

Subsec. (a)(13) to (15).Pub. L. 103–296, § 321(a)(14), (c)(5), struck out “and” at end of par. (13), substituted “; and” for period at end of par. (14), and inserted “of theInternal Revenue Code of 1986” after “section 162(m)” in par. (15).

Subsec. (c).Pub. L. 103–296, § 321(c)(6)(F), substituted “1986” for “1954” after “Code of” in introductory and closing provisions.

Subsec. (c)(1).Pub. L. 103–296, § 107(a)(4), substituted “Commissioner of Social Security” for“Secretary”.

Subsec. (c)(2)(C).Pub. L. 103–296, § 319(b)(2), which directed that subpar. (C) be amended by inserting “, except service which constitutes‘employment’ undersection 410(r) of this title” before the semicolon, was executed by making the insertion before the comma at end, to reflect the probable intent ofCongress.

Subsec. (c)(2)(E).Pub. L. 103–296, § 107(a)(4), substituted “Commissioner of Social Security” for“Secretary”.

Subsec. (c)(3), (6).Pub. L. 103–296, § 321(c)(6)(F), substituted “1986” for “1954” after “Code of”.

Subsecs. (d), (e), (h)(1)(B).Pub. L. 103–296, § 321(c)(6)(G), substituted “1986” for “1954” after “Code of”.

1990—Subsec. (a).Pub. L. 101–508, § 5123(a)(1), redesignated last undesignated paragraph, relating to income of an individual which results from or is attributable to performance of services by such individual as a director of a corporation, as subsec. (f)(5) ofsection 403 of this title.

Subsec. (a)(14), (15).Pub. L. 101–508, § 5130(a)(3), redesignated par. (14), relating to nonallowability of deduction under section 162(m) (health insurance costs of self-employed individuals), as (15).

Subsec. (b).Pub. L. 101–508, § 5130(a)(2), made technical correction to directory language ofPub. L. 98–21, § 322(b)(1). See 1983 Amendment note below.

1988—Subsec. (a)(7).Pub. L. 100–647, § 8016(a)(2), inserted “of theInternal Revenue Code of 1986” before semicolon at end.

Subsec. (a)(14).Pub. L. 100–647, § 3043(b), added par. (14) relating to the exclusion of income excluded from taxation under section 7873 of theInternal Revenue Code of 1986 (income derived by Indians from exercise of fishing rights).

Pub. L. 100–647, § 1011B(b)(4), added par. (14) relating to nonallowability of deduction under section 162(m) (health insurance costs of self-employed individuals).

1987—Subsec. (a).Pub. L. 100–203, § 9022(a), inserted par. at end relating to income of an individual which results from or is attributable to the performance of services by such individual as a director of a corporation.

Subsec. (a)(7).Pub. L. 100–203, § 9023(b)(1), struck out reference to section 931 (relating to income from sources within possessions of the United States) of theInternal Revenue Code of 1954.

Subsec. (a)(8).Pub. L. 100–203, § 9023(b)(2), amended par. (8) generally. Prior to amendment, par. (8) read as follows: “The term ‘possession of the United States’ as used in sections 931 (relating to income from sources within the possessions of the United States) and 932 (relating to citizens of possessions of the United States) of theInternal Revenue Code of 1986 shall be deemed not to include the Virgin Islands, Guam, or American Samoa;”.

1986—Subsec. (a)(13).Pub. L. 99–514, § 1882(b)(2)(B)(i), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “With respect to remuneration for service which are treated as services in a trade or businessunder subsection (c)(2)(G) of this section—

“(A) no deduction fortrade or business expenses provided under theInternal Revenue Code of 1954 (other than the deduction under paragraph (11) of this subsection) shall apply;

“(B) the provisions of subsection (b)(2) of this section shall not apply; and

“(C) if the amount of such remuneration from an employer for thetaxable year is less than $100, such remuneration from that employer shall not be included inself-employment income.”

Subsec. (b).Pub. L. 99–514, § 1882(b)(2)(B)(ii), inserted at end “In the case of church employee income, the special rules of subsection (i)(2) shall apply for purposes of paragraph (2).”

Subsec. (c)(2)(G).Pub. L. 99–514, § 1883(a)(6), realigned margins of subpar. (G).

Subsec. (i).Pub. L. 99–514, § 1882(b)(2)(A), added subsec. (i).

1984—Subsec. (a).Pub. L. 98–369, § 2663(a)(8)(A), substituted “subtitle A of theInternal Revenue Code of 1954” for “chapter 1 of theInternal Revenue Code of 1939”, “such subtitle” for “such chapter”, and “section 702(a)(8) of theInternal Revenue Code of 1954” for “section 183 of theInternal Revenue Code of 1939”.

Pub. L. 98–369, § 2663(a)(8)(D), in provisions following numbered pars., substituted “702(a)(8)” for “702(a)(9)” in cl. (iii) and in two places in cl. (iv).

Subsec. (a)(3).Pub. L. 98–369, § 2663(a)(8)(B), substituted “subtitle A of theInternal Revenue Code of 1954” for “chapter 1 of theInternal Revenue Code of 1939” and inserted “or” before “(C)”.

Subsec. (a)(4).Pub. L. 98–369, § 2663(a)(8)(C), substituted “section 172 of theInternal Revenue Code of 1954” for “section 23(s) of theInternal Revenue Code of 1939”.

Subsec. (a)(13).Pub. L. 98–369, § 2603(d)(1), added par. (13).

Subsec. (b)(1)(D), (G) to (I).Pub. L. 98–369, § 2663(a)(8)(E), realigned margins of subpars. (D) and (G) to (I).

Subsec. (c).Pub. L. 98–369, § 2663(a)(8)(F), substituted “section 162 of theInternal Revenue Code of 1954” for “section 23 of theInternal Revenue Code of 1939” in provisions preceding par. (1).

Subsec. (c)(2)(G).Pub. L. 98–369, § 2603(c)(1), added subpar. (G).

Subsec. (c)(3).Pub. L. 98–369, § 2663(a)(8)(G), substituted “section 3231 of theInternal Revenue Code of 1954” for “section 1532 of theInternal Revenue Code of 1939”.

Subsec. (d).Pub. L. 98–369, § 2663(a)(8)(H), substituted “subchapter K of chapter 1 of theInternal Revenue Code of 1954” for “supplement F of chapter 1 of theInternal Revenue Code of 1939”.

Subsec. (e).Pub. L. 98–369, § 2663(a)(8)(I), substituted “subtitle A of theInternal Revenue Code of 1954” for “chapter 1 of theInternal Revenue Code of 1939” in three places.

Subsec. (h).Pub. L. 98–369, § 102(c)(2), added subsec. (h).

1983—Subsec. (a)(10).Pub. L. 98–21, § 323(b)(2)(A), substituted “The exclusion from gross income provided by section 911(a)(1) of theInternal Revenue Code of 1954 shall not apply” for “In the case of an individual described in section 911(d)(1)(B) of theInternal Revenue Code of 1954, the exclusion from gross income provided by section 911(a)(1) of such Code shall not apply”.

Pub. L. 98–21, § 323(b)(2)(B), temporarily amended par. (10) by substituting “In the case of an individual described in section 911(d)(1)(B) of theInternal Revenue Code of 1954, the exclusion from gross income provided by section 911(a)(1) of such Code shall not apply” for “In the case of an individual who has been a resident of the United Statesduring the entire taxable year, the exclusion from gross income provided by section 911(a)(2) of theInternal Revenue Code of 1954 shall not apply”. See Effective and Termination Dates of 1983 Amendment note below.

Subsec. (a)(11), (12).Pub. L. 98–21, § 124(c)(3), added par. (11) and redesignated former par. (11) as (12).

Subsec. (b).Pub. L. 98–21, § 322(b)(1), as amended byPub. L. 101–508, § 5130(a)(2), inserted “, except as provided by an agreement undersection 433 of this title” after “non-resident alien individual” in provisions preceding par. (1).

1978—Subsec. (a)(2).Pub. L. 95–600, § 703(j)(14)(D), which directed that “(other than interest described in section 35 of theInternal Revenue Code of 1954)” be struck out from subsec. (a)(2) of this section, was executed by striking out “(other than interest described in section 25(a) of theInternal Revenue Code of 1939)” as the probable intent ofCongress.

Subsec. (c)(6).Pub. L. 95–600, § 703(j)(14)(E), substituted “section 1402(g)” for “section 1402(h)”.

1977—Subsec. (a)(11).Pub. L. 95–216 added par. (11).

1976—Subsec. (c)(2)(F).Pub. L. 94–455 added subpar. (F).

1974—Subsec. (a)(1).Pub. L. 93–368 inserted “(as determined without regard to any activities of an agent of such owner or tenant)” after “material participation by the owner or tenant” wherever appearing.

1973—Subsec. (b)(1)(H).Pub. L. 93–233 substituted “$13,200” for “$12,600”.

Pub. L. 93–66 substituted “$12,600” for “$12,000”.

1972—Subsec. (a).Pub. L. 92–603, §§ 121(a)(1), 124(a), 140(a), struck out provisions of par. (7) relating to citizens of the United Statesperforming the specified services as an employeeof an American employer(as defined insection 410(e) of this title) or as a minister in a foreign country who has a congregation composed predominantly of United Statescitizens, inserted provisions in par. (7) relating to the applicability of sections 911 and 931 of title 26, and added par. (10) and provisions for an optional method for determining self-employmentearnings.

Subsec. (b)(1)(F).Pub. L. 92–336, § 203(a)(2)(A), inserted “and prior to 1973” after “1971”.

Subsec. (b)(1)(G) to (I).Pub. L. 92–336, § 203(a)(2)(B), added subpars. (G) to (I).

Subsec. (g).Pub. L. 92–603, § 121(a)(2), added subsec. (g).

1971—Subsec. (b)(1)(E).Pub. L. 92–5, § 203(a)(2)(A), inserted “and beginning prior to 1972” after “1967”.

Subsec. (b)(1)(F).Pub. L. 92–5, § 203(a)(2)(B), added subpar. (F).

1968—Subsec. (a)(9).Pub. L. 90–248, § 118(b), added par. (9).

Subsec. (b)(1)(D), (E).Pub. L. 90–248, § 108(a)(2)(A), (B), inserted “and prior to 1968” after “1965” and added subpar. (E), respectively.

Subsec. (c).Pub. L. 90–248, § 115(a), substituted in last sentence “unless an exemption under section 1402(e) of theInternal Revenue Code of 1954 is effective with respect to him” for “during the period for which a certificate filed by him under section 1402(e) of theInternal Revenue Code of 1954 is in effect”.

Subsec. (c)(1).Pub. L. 90–248, § 122(a)(1), included in term“trade or business” functions of a public office of a Stateor political subdivision thereof with respect to fees received in a position compensated solely on a fee basis and which position is not covered under a Statesocial security coverage agreement.

Subsec. (c)(2)(E).Pub. L. 90–248, § 122(a)(2), added subpar. (E).

1965—Subsec. (a).Pub. L. 89–97, § 312(a), substituted “$2,400” for “$1,800” in cls. (i) to (iv) and “$1,600” for “$1,200” in cls. (ii) and (iv) of second sentence following par. (8), wherever appearing.

Subsec. (b)(1)(C).Pub. L. 89–97, § 320(a)(2)(A), inserted “and prior to 1966” after “1958” and substituted “and” for “or” after the semicolon.

Subsec. (b)(1)(D).Pub. L. 89–97, § 320(a)(2)(B), added subpar. (D).

Subsec. (c).Pub. L. 89–97, § 311(a)(1), (2), struck out from par. (5) “doctor of medicine or” before, and “; or the performance of such service by a partnership” after “Christian Science practitioner” and consolidated into one sentence former last two sentences.

Subsec. (c)(6).Pub. L. 89–97, § 319(b), added par. (6).

1964—Subsec. (a)(3)(B),Pub. L. 88–272 amended cl. (B) generally, substituting “, coal, or iron ore, if section 631 of theInternal Revenue Code of 1954 applies” for “or coal, if section 117(j) of theInternal Revenue Code of 1954 is applicable”.

1960—Subsec. (a)(6).Pub. L. 86–778, § 103(j)(3), substituted “section 933 of theInternal Revenue Code of 1954” for “section 116(1) of theInternal Revenue Code of 1954”, and struck out provisions which defined “possession of the United States” in the case of taxable yearsbeginning before the effective date specified in formersection 419 of this title.

Subsec. (a)(8).Pub. L. 86–778, § 103(g), added par. (8) and inserted a reference to paragraph (8) in cls. (v) and (vi) of last sentence.

Subsec. (b).Pub. L. 86–778, § 103(h), provided that individuals who are not citizens of the United Statesbut who are residents of Guam or American Samoa shall not, for the purposes of this subsection, be considered to be nonresident alien individuals, and struck out provisions which related to individuals who were citizens of PuertoRico prior to the effective date specified insection 419 of this title.

Subsec. (c)(2).Pub. L. 86–778, § 106(a), excluded service described in section 410(a)(11), (12), or (15) of this title performed in the United Statesby a citizen of the United States.

1958—Subsec. (b)(1).Pub. L. 85–840, § 102(b), inserted “and prior to 1959” after “year ending after 1954” in cl. (B), and added cl. (C).

Subsec. (f).Pub. L. 85–840, § 313(a), added subsec. (f).

1957—Subsec. (a)(7).Pub. L. 85–239 permitted computation of net earnings without regard to sections 107 and 119 of theInternal Revenue Code of 1954.

1956—Subsec. (a). ActAug. 1, 1956, § 106(a), amended last two sentences generally, to include those businesses in which the income is computed under an accrual method, and partnerships, to change the method of computation of net earnings for individuals by permitting those whose gross income is not more than $1,800 to deem their net earnings to be 66⅔ percent of such gross income, and those whose gross income is more than $1,800 and the net earnings are less than $1,200, to deem the net earnings to be $1,200, and to provide for the computation of net earnings for members of partnerships.

Subsec. (a)(1). ActAug. 1, 1956, § 104(c)(2), struck out from exclusion, income derived by an owner or tenant to land if such income is derived under an arrangement with another individual for the production by such other individual of agricultural or horticultural commodities if such arrangement provides for material participation by the owner or tenant in the production or the management of the production of such commodities, and there is material participation by the owner or tenant with respect to any such commodity.

Subsec. (a)(7)(B). ActAug. 1, 1956, § 104(h), included citizens of the United Stateswho are ministers in foreign countries and have congregations composed predominantly of citizens of the United States.

Subsec. (c)(2). ActAug. 1, 1956, § 104(c)(3), included within term“trade or business” service described insection 410(a)(16) of this title.

Subsec. (c)(5). ActAug. 1, 1956, § 104(d), struck out exclusion from coverage in the case of lawyers, dentists, osteopaths, veterinarians, chiropractors, naturopaths, and optometrists.

1954—Subsec. (a)(1). ActSept. 1, 1954, § 101(g)(2), made it clear that rentals paid in crop shares would be excluded as being rentals from real estate.

Subsec. (a)(2). ActSept. 1, 1954, § 101(g)(1), redesignated par. (3) as (2), and struck out former par. (2).

Subsec. (a)(3). ActSept. 1, 1954, § 101(g)(3), redesignated par. (4) as (3), and excluded from“net earnings from self-employment” the gain or loss derived from coal royalties under certain conditions. Former par. (3) redesignated (2).

Subsec. (a)(4) to (6). ActSept. 1, 1954, § 101(g)(1), redesignated pars. (5) to (7) as (4) to (6), respectively. Former par. (4) redesignated (3).

Subsec. (a)(7). ActSept. 1, 1954, § 101(d)(3), added par. (7).

Subsec. (a). ActSept. 1, 1954, § 101(g)(1), inserted two sentences at end.

Subsec. (b)(1). ActSept. 1, 1954, § 104(b), excluded from self-employment income, for taxable yearsafter 1954 any amount in excess of $4,200 minus the amount of the wagespaid to an individual during the taxable year.

Subsec. (c). ActSept. 1, 1954, § 101(d)(2), inserted two sentences at end making provisions of par. (4) inapplicable to service performed during the period for which a certificate filed undersection 1402(e) of title 26 is in effect.

Subsec. (c)(2). ActSept. 1, 1954, § 101(d)(1), inserted “and other than service described in paragraph (4) of this subsection” after “eighteen”.

Subsec. (c)(5). ActSept. 1, 1954, § 101(g)(4), struck out exclusion from coverage in case of architects, certified public accountants, accountants registered or licensed as accountants under Stateor municipal law, full-time practicing public accountants, funeral directors, or professional engineers.

1950—Subsec. (a)(7). ActSept. 23, 1950, made provisions applicable to PuertoRico and provided the basis for computation of net earnings.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal ofPub. L. 110–234 byPub. L. 110–246 effectiveMay 22, 2008, the date of enactment ofPub. L. 110–234, except as otherwise provided, seesection 4 of Pub. L. 110–246, set out as an Effective Date note undersection 8701 of Title 7, Agriculture.

Amendment by section 4115(c)(1)(A)(i), (B)(iii) ofPub. L. 110–246 effectiveOct. 1, 2008, seesection 4407 of Pub. L. 110–246, set out as a note undersection 1161 of Title 2, TheCongress.

Amendment bysection 15301(b) of Pub. L. 110–246 applicable to payments made afterDec. 31, 2007, seesection 15301(c) of Pub. L. 110–246, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Amendment by section 15352(b)(1), (2) ofPub. L. 110–246 applicable to taxable yearsbeginning afterDec. 31, 2007, seesection 15352(c) of Pub. L. 110–246, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 2007 Amendment

Amendment byPub. L. 110–28 applicable to taxable yearsbeginning afterDec. 31, 2006, seesection 8215(c) of Pub. L. 110–28, set out as a note undersection 761 of Title 26,Internal Revenue Code.

Effective Date of 2004 Amendment

Pub. L. 108–203, title IV, § 422(b),Mar. 2, 2004,118 Stat. 536, provided that:

“The amendment made by this section [amending this section] shall apply to years beginning before, on, or afterDecember 31, 1994.”

Effective Date of 1997 Amendment

Amendment byPub. L. 105–34 applicable to payments afterDec. 31, 1997, seesection 922(c) of Pub. L. 105–34, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 1994 Amendment

Amendment bysection 107(a)(4) of Pub. L. 103–296 effectiveMar. 31, 1995, seesection 110(a) of Pub. L. 103–296, set out as a note undersection 401 of this title.

Amendment bysection 319(b)(2) of Pub. L. 103–296 applicable with respect to service performed after calendar quarterfollowing calendar quarterin whichAug. 15, 1994, occurs, seesection 319(c) of Pub. L. 103–296, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 1990 Amendment

Amendment bysection 5123(a)(1) of Pub. L. 101–508 applicable with respect to income received for services performed in taxable yearsbeginning afterDec. 31, 1990, seesection 5123(b) of Pub. L. 101–508, set out as a note undersection 403 of this title.

Amendment bysection 5130(a)(2) of Pub. L. 101–508 effective as if included in the enactment ofPub. L. 98–21, § 322(b)(1), and amendment bysection 5130(a)(3) of Pub. L. 101–508 effective as if included in the enactment ofPub. L. 100–647, § 1011B(b)(4), seesection 5130(b) of Pub. L. 101–508, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 1988 Amendment

Amendment bysection 1011B(b)(4) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of theTax Reform Act of 1986,Pub. L. 99–514, to which such amendment relates, seesection 1019(a) of Pub. L. 100–647, set out as a note undersection 1 of Title 26,Internal Revenue Code.

Amendment bysection 3043(b) of Pub. L. 100–647 applicable to all periods beginning before, on, or afterNov. 10, 1988, with no inference created as to existence or non-existence or scope of any exemption from tax for income derived from fishing rights secured as ofMar. 17, 1988, by any treaty, law, or Executive Order, seesection 3044 of Pub. L. 100–647, set out as an Effective Date note undersection 7873 of Title 26.

Amendment bysection 8016(a)(2) of Pub. L. 100–647 effectiveNov. 10, 1988, except that any amendment to a provision of a particular Public Law which is referred to by its number, or to a provision of theSocial Security Act [42 U.S.C. 301 et seq.], or to Title 26, as added or amended by a provision of a particular Public Law which is so referred to, effective as though included or reflected in the relevant provisions of that Public Law at the time of its enactment, seesection 8016(b) of Pub. L. 100–647, set out as a note undersection 3111 of Title 26.

Effective Date of 1987 Amendment

Amendment bysection 9022(a) of Pub. L. 100–203 applicable with respect to services performed in taxable yearsbeginning on or afterJan. 1, 1988, seesection 9022(c) of Pub. L. 100–203, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 1986 Amendment

Amendment bysection 1882(b)(2) of Pub. L. 99–514 applicable to remuneration paid or derived in taxable yearsbeginning afterDec. 31, 1985, seesection 1882(b)(3) of Pub. L. 99–514, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Amendment bysection 1883(a)(6) of Pub. L. 99–514 effectiveOct. 22, 1986, seesection 1883(f) of Pub. L. 99–514, set out as a note undersection 402 of this title.

Effective Date of 1984 Amendment

Amendment bysection 102(c)(2) of Pub. L. 98–369 applicable to taxable yearsbeginning afterJuly 18, 1984, except as otherwise provided, see section 102(f)(3), (g) ofPub. L. 98–369, set out as a note undersection 1256 of Title 26,Internal Revenue Code.

Amendment by section 2603(c)(1), (d)(1) ofPub. L. 98–369 applicable to service performed afterDec. 31, 1983, seesection 2603(e) of Pub. L. 98–369, set out as a note undersection 410 of this title.

Amendment bysection 2663(a)(8) of Pub. L. 98–369 effectiveJuly 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, seesection 2664(b) of Pub. L. 98–369, set out as a note undersection 401 of this title.

Effective and Termination Dates of 1983 Amendment

Amendment bysection 124(c)(3) of Pub. L. 98–21 applicable to taxable yearsbeginning afterDec. 31, 1989, seesection 124(d)(2) of Pub. L. 98–21, set out as an Effective Date of 1983 Amendment note undersection 1401 of Title 26,Internal Revenue Code.

Amendment bysection 322(b)(2) of Pub. L. 98–21 effective in taxable yearsbeginning on or afterApr. 20, 1983, seesection 322(c) of Pub. L. 98–21, set out as an Effective Date of 1983 Amendment note undersection 3121 of Title 26.

Amendment bysection 323(b)(2)(A) of Pub. L. 98–21 applicable to taxable yearsbeginning afterDec. 31, 1983, seesection 323(c)(2) of Pub. L. 98–21, set out as an Effective Date of 1983 Amendment note undersection 1402 of Title 26.

Pub. L. 98–21, title III, § 323(b)(2)(B),Apr. 20, 1983,97 Stat. 121, provided that the amendment made by such section 323(b)(2)(B) is effective with respect to taxable yearsbeginning afterDec. 31, 1981, and beforeJan. 1, 1984.

Effective Date of 1978 Amendment

Amendment byPub. L. 95–600 effectiveOct. 4, 1976, seesection 703(r) of Pub. L. 95–600, set out as a note undersection 46 of Title 26,Internal Revenue Code.

Effective Date of 1977 Amendment

Pub. L. 95–216, title III, § 313(c),Dec. 20, 1977,91 Stat. 1536, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26,Internal Revenue Code] shall apply with respect to taxable yearsbeginning afterDecember 31, 1977.”

Effective Date of 1974 Amendment

Pub. L. 93–368, § 10(c),Aug. 7, 1974,88 Stat. 422, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26,Internal Revenue Code] shall apply with respect to taxable yearsbeginning afterDecember 31, 1973.”

Effective Date of 1973 Amendment

Amendment byPub. L. 93–233 applicable only with respect to remuneration paid after, and taxable yearsbeginning after, 1973, seesection 5(e) of Pub. L. 93–233, set out as a note undersection 409 of this title.

Amendment byPub. L. 93–66 applicable only with respect to remuneration paid after, and taxable yearsbeginning after, 1973, seesection 203(e) of Pub. L. 93–66, set out as a note undersection 409 of this title.

Effective Date of 1972 Amendment

Pub. L. 92–603, title I, § 121(c),Oct. 30, 1972,86 Stat. 1354, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26,Internal Revenue Code] shall apply only with respect to taxable yearsbeginning afterDecember 31, 1972.”

Pub. L. 92–603, title I, § 124(c),Oct. 30, 1972,86 Stat. 1357, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26] shall apply with respect to taxable yearsbeginning afterDecember 31, 1972.”

Pub. L. 92–603, title I, § 140(c),Oct. 30, 1972,86 Stat. 1366, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26] shall apply with respect to taxable yearsbeginning afterDecember 31, 1972.”

Amendment byPub. L. 92–336 applicable only with respect to taxable yearsbeginning after 1972, seesection 203(c) of Pub. L. 92–336, set out as a note undersection 409 of this title.

Effective Date of 1971 Amendment

Amendment byPub. L. 92–5 applicable only with respect to taxable yearsbeginning after 1971, seesection 203(c) of Pub. L. 92–5, set out as a note undersection 409 of this title.

Effective Date of 1968 Amendment

Amendment bysection 108(a)(2) of Pub. L. 90–248 applicable only with respect to taxable yearsending after 1967, seesection 108(c) of Pub. L. 90–248, set out as a note undersection 409 of this title.

Amendment bysection 115(a) of Pub. L. 90–248 applicable only with respect to taxable yearsending after 1967, seesection 115(c) of Pub. L. 90–248, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Amendment bysection 118(b) of Pub. L. 90–248 applicable only with respect to taxable yearsending on or afterDec. 31, 1967, seesection 118(c) of Pub. L. 90–248, set out as a note undersection 1402 of Title 26.

Amendment by section 122(a)(1), (2) ofPub. L. 90–248 applicable with respect to fees received after 1967 and with respect to election to exempt fees from coverage as self-employment income, seesection 122(c) of Pub. L. 90–248, set out as a note undersection 1402 of Title 26.

Effective Date of 1965 Amendment

Amendment by section 311(a)(1), (2) ofPub. L. 89–97 applicable only with respect to taxable yearsending on or afterDec. 31, 1965, seesection 311(c) of Pub. L. 89–97, set out as a note undersection 410 of this title.

Pub. L. 89–97, title III, § 312(c),July 30, 1965,79 Stat. 381, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26,Internal Revenue Code] shall apply only with respect to taxable yearsbeginning afterDecember 31, 1965.”

Amendment bysection 319(b) of Pub. L. 89–97 applicable with respect to taxable yearsbeginning afterDecember 31, 1950, seesection 319(e) of Pub. L. 89–97, set out as a note undersection 1402 of Title 26.

Amendment bysection 320(a)(2) of Pub. L. 89–97 applicable with respect to taxable yearsending after 1965, seesection 320(c) of Pub. L. 89–97, set out as a note undersection 3121 of Title 26.

Effective Date of 1964 Amendment

Amendment byPub. L. 88–272 applicable with respect to amounts received or accrued in taxable yearsbeginning afterDec. 31, 1963, attributable to iron ore mined in such years, seesection 227(c) of Pub. L. 88–272, set out as a note undersection 272 of Title 26,Internal Revenue Code.

Effective Date of 1960 Amendment

Amendment bysection 103(g) of Pub. L. 86–778 applicable only in the case of taxable yearsbeginning after 1960, except that, insofar as involves the nonapplication ofsection 932 of Title 26,Internal Revenue Code, to the Virgin Islands for purposes of sections 1401 et seq. of Title 26 and this section, such amendment shall be effective in the case of all taxable yearswith respect to which such sections 1401 et seq. (and corresponding provisions of prior law) and this section are applicable, seesection 103(v)(1) of Pub. L. 86–778, set out as a note undersection 402 of this title.

Amendment bysection 103(h) of Pub. L. 86–778 applicable only in the case of taxable yearsbeginning after 1960, see section 103(v)(1), (3) ofPub. L. 86–778, set out as a note undersection 402 of this title.

Amendment bysection 103(j)(3) of Pub. L. 86–778 effectiveSept. 13, 1960, see section 103(v)(1), (3) ofPub. L. 86–778, set out as a note undersection 402 of this title.

Pub. L. 86–778, title I, § 106(c),Sept. 13, 1960,74 Stat. 946, provided that:

“The amendments made by this section [amending this section andsection 1402 of Title 26,Internal Revenue Code] shall apply only with respect to taxable yearsending on or afterDecember 31, 1960; except that for purposes of section 203 of theSocial Security Act [42 U.S.C. 403], the amendment made by subsection (a) [amending this section] shall apply only with respect to taxable years(of the individual performing the service involved) beginning after the date of the enactment of this Act [Sept. 13, 1960].”

Effective Date of 1958 Amendment

Pub. L. 85–840, title III, § 313(b),Aug. 28, 1958,72 Stat. 1036, provided that:

“The amendment made by subsection (a) [amending this section] shall apply—

“(1)

with respect to individuals who die after the date of the enactment of this Act [Aug. 28, 1958], and

“(2)

with respect to any individual who died after 1955 and on or before the date of the enactment of this Act [Aug. 28, 1958], but only if the requirements of section 403(b)(2) of this Act [26 U.S.C. 1402 note] are met.”

Effective Date of 1957 Amendment

Amendment byPub. L. 85–239 applicable, except for purposes ofsection 403 of this title, only with respect to taxable yearsending on or afterDecember 31, 1957, seesection 5(c) of Pub. L. 85–239, set out as a note undersection 1402 of Title 26,Internal Revenue Code.

Effective Date of 1956 Amendment

Amendment by section 104(c)(2), (d) of actAug. 1, 1956, applicable with respect to taxable yearsending after 1955, see section 104(i) of such actAug. 1, 1956, set out as a note undersection 410 of this title.

Amendment by section 104(c)(3) of actAug. 1, 1956, applicable with respect to taxable yearsending after 1954, see section 104(i) of actAug. 1, 1956, set out as a note undersection 410 of this title.

Amendment by section 104(h) of actAug. 1, 1956, applicable with respect to the same taxable yearswith respect to which the amendment tosection 3121(k)(1) of Title 26,Internal Revenue Code, applies, see section 104(i) of actAug. 1, 1956, set out as a note undersection 410 of this title, and section 201(m)(2) of such actAug. 1, 1956, set out as a note undersection 3121 of Title 26.

Act Aug. 1, 1956, ch. 836, title I, § 106(b),70 Stat. 829, provided that:

“The amendment made by subsection (a) [amending this section] shall be effective with respect totaxable years ending on or afterDecember 31, 1956.”

Effective Date of 1954 Amendment

Amendments by section 101(d), (g)(1), (2), (4) of actSept. 1, 1954, applicable only with respect to taxable yearsending after 1954, amendment by section 101(g)(3) of actSept. 1, 1954, applicable only with respect to taxable yearsbeginning after 1950, and, for purposes ofsection 403 of this title, the amendments made by paragraphs (1), (2), and (4) of subsection (g) and by subsection (d) [of said section 101] effective with respect to net earnings from self-employmentderived after 1954, see section 101(n) of actSept. 1, 1954, set out as a note undersection 405 of this title.

Effective Date of 1950 Amendment

Amendment by actSept. 23, 1950, applicable with respect to taxable yearsbeginning afterDec. 31, 1950, see act Sept. 23, 1950, ch. 994, title II, § 221(k),64 Stat. 947.

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 and1171–1177] or title XVIII [§§ 1800–1899A] ofPub. 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 afterJan. 1, 1989, seesection 1140 of Pub. L. 99–514, as amended, set out as a note undersection 401 of Title 26,Internal Revenue Code.

Treaty Obligations

Act Sept. 23, 1950, ch. 994, title II, § 214,64 Stat. 937, provided that:

“No amendment made by this Act [see Tables for classification] shall apply in any case where its application would be contrary to any treaty obligation of theUnited States.”

CFR Title	Parts
20	404

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42 U.S. Code § 411 - Definitions relating to self-employment

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