Internal Revenue Code:Sec. 62. Adjusted gross income defined

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter B - Computation of Taxable Income
         PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
               INCOME, ETC.
        

Statute

    Sec. 62. Adjusted gross income defined
    (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.--In the case of taxable years beginning 
        during 2002, 2003, 2004, 2005, 2006, or 2007 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.  .--(Effective Date.--The amendments made by this section
        shall apply to taxable years beginning after December 31, 2001.)
        (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, Sec. 1401(b)(4), Aug.
          20, 1996, 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) Alimony
        The deduction allowed by section 215.
      (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) Deduction for clean-fuel vehicles and certain refueling
          property
        The deduction allowed by section 179A.
      (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) Higher education expenses
        The deduction allowed by section 222.
      (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.--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.
    Nothing in this section shall permit the same item to be deducted
    more than once.
    (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.--(Effective Date.--The 
       amendments made by this section shall apply to taxable years beginning 
       after December 31, 2001.)

        (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.
     (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 (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.


 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 87-792, Sec. 7(b),
    Oct. 10, 1962, 76 Stat. 828; Pub. L. 88-272, title II, Sec. 213(b),
    Feb. 26, 1964, 78 Stat. 52; Pub. L. 91-172, title V, Sec. 531(b),
    Dec. 30, 1969, 83 Stat. 655; Pub. L. 93-406, title II, Sec.
    2002(a)(2), 2005(c)(9), Sept. 2, 1974, 88 Stat. 959, 992; Pub. L.
    93-483, Sec. 6(a), Oct. 26, 1974, 88 Stat. 1458; Pub. L. 94-455,
    title V, Sec. 502(a), title XV, Sec. 1501(b)(1), title XIX, Sec.
    1901(a)(8), (9), Oct. 4, 1976, 90 Stat. 1559, 1735, 1765; Pub. L.
    95-615, Sec. 203(b), Nov. 8, 1978, 92 Stat. 3106; Pub. L. 96-451,
    title III, Sec. 301(b), Oct. 14, 1980, 94 Stat. 1990; Pub. L.
    96-608, Sec. 3(a), Dec. 28, 1980, 94 Stat. 3551; Pub. L. 97-34,
    title I, Sec. 103(b), 112(b)(2), title III, Sec. 311(h)(1), Aug.
    13, 1981, 95 Stat. 187, 195, 282; Pub. L. 97-354, Sec. 5(a)(17),
    Oct. 19, 1982, 96 Stat. 1693; Pub. L. 98-369, div.  A, title IV,
    Sec. 491(d)(2), July 18, 1984, 98 Stat. 849; Pub. L. 99-514, title
    I, Sec. 131(b)(1), 132(b), (c), title III, Sec. 301(b)(1), title
    XVIII, Sec. 1875(c)(3), Oct. 22, 1986, 100 Stat. 2113, 2115, 2116,
    2217, 2894; Pub. L. 100-485, title VII, Sec. 702(a), Oct. 13, 1988,
    102 Stat. 2426; Pub. L. 100-647, title I, Sec. 1001(b)(3)(A), title
    VI, Sec. 6007(b), Nov. 10, 1988, 102 Stat. 3349, 3687; Pub. L.
    101-508, title XI, Sec. 11802(e)(1), Nov. 5, 1990, 104 Stat.
    1388-530; Pub. L. 102-318, title V, Sec. 521(b)(2), July 3, 1992,
    106 Stat. 310; Pub. L. 102-486, title XIX, Sec. 1913(a)(2), Oct.
    24, 1992, 106 Stat. 3019; Pub. L. 103-66, title XIII, Sec.
    13213(c)(1), Aug. 10, 1993, 107 Stat. 474; Pub. L. 104-188, title
    I, Sec. 1401(b)(4), Aug. 20, 1996, 110 Stat. 1788; Pub. L. 104-191,
    title III, Sec. 301(b), Aug. 21, 1996, 110 Stat. 2048; Pub. L.
    105-34, title II, Sec. 202(b), title IX, Sec. 975(a), Aug. 5, 1997,
    111 Stat. 808, 898; Pub. L. 106-554, Sec. 1(a)(7) (title II, Sec.
    202(b)(1)), Dec. 21, 2000, 114 Stat. 2763, 2763A-629; Pub. L.
    107-16, title IV, Sec. 431(b), June 7, 2001, 115 Stat. 68.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
 

Miscellaneous

                                 AMENDMENTS

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Section 406(a)(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.''.

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432))
SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY 
            AND SECONDARY SCHOOL TEACHERS.
    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2005'' and inserting ``2005, 2006, or 2007''.
    
      2004 - Subsec.703(a),Pub.L.108-357, amended Sec.62(a)
    by adding a new paragraph (19). This paragraph should 
    probably be (20). Sec.703(b) added subsection (e).
      2004 - Subsec.307,Pub.L.108-311, amended Sec.62(a)(2)(D)
    by striking "or 2003" and inserting "2003, 2004, or 2005".
    Effective Date.--The amendment made by subsection (a) shall 
    apply to expenses paid or incurred in taxable years beginning
    after December 31, 2003.
      2003 - Subsec. 1201(b), Pub. L. 108-173 amended Sec.62
    (a) but inserting (19) for Health Savings Accounts. 
    Effective Date:  Amendments shall apply to taxable years
    after December 31, 2003.
      2003 - Subsec. 109(b), Pub. L.108-121, amended Sec. 62(a)(2)
    by adding a subparagraph (E). Effective Date -- Amendments
    made by this section shall apply to amounts paid or incurred
    in taxable years beginning after December 31, 2002.
      2002 - Subsec. (a)(2)(D). Pub. L. 107-147 Sec. 406(a),
        added par. (D) providing for deduction of certain expenses of 
        elementary and secondary school teachers for taxable years beginning 
        during 2002 or 2003.
      2002 - Subsec. (d). Pub. L. 107-147 Sec. 406(b),
        added par. (d) providing the definition of "eligible educator" and 
        other terms that were included in Subsec. (a)(2)(D). 
        <<NOTE: Applicability.>>  Effective Date.--The amendments made by 
        this section shall apply to taxable years beginning 
        after December 31, 2001.

      2001 - Subsec. (a)(18). Pub. L. 107-16, Sec. 431(b), 901,
    temporarily added par. (18). See Effective and Termination Dates of
    2001 Amendment note below.
      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, Sec. 975(a), added
    subpar. (C).
      Subsec. (a)(17). Pub. L. 105-34, Sec. 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, Sec. 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, Sec. 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, Sec. 6007(b), added par. (13).
      Subsec. (c). Pub. L. 100-485 added subsec. (c).
      1986 - Subsec. (a). Pub. L. 99-514, Sec. 132(b)(2)(A), designated
    existing provisions as subsec. (a) and added heading.
      Subsec. (a)(2). Pub. L. 99-514, Sec. 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, Sec. 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, Sec. 301(b)(1), redesignated par.
    (7) as (6). Former par. (6) redesignated (5).
      Pub. L. 99-514, Sec. 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, Sec. 301(b)(1), redesignated par.
    (10) as (7). Former par. (7) redesignated (6).
      Subsec. (a)(8). Pub. L. 99-514, Sec. 301(b)(1), redesignated par.
    (11) as (8). Former par. (8) struck out.
      Pub. L. 99-514, Sec. 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, Sec. 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, Sec. 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, Sec. 132(b)(2)(B), added subsec.
    (b).
      1984 - Par. (7). Pub. L. 98-369, Sec. 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, Sec. 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, Sec. 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, Sec. 112(b)(2), redesignated par. (16)
    as (15). Former par. (15) redesignated (14).
      Par. (16). Pub. L. 97-34, Sec. 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, Sec. 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, Sec. 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, Sec. 502(a), added par. (13).
      1974 - Par. (10). Pub. L. 93-406, Sec. 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,
    Sec. 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).

                    EFFECTIVE DATES OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432))
Section 406(d) Effective <<NOTE: 26 USC 62 note.>> Date.--The amendments made 
by subsection (a) shall apply to information provided on or after the 
date of the enactment of this Act.

                    EFFECTIVE DATES OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432))
SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY 
            AND SECONDARY SCHOOL TEACHERS.
        (b) <<NOTE: 26 USC 62 note.>> Effective Date.--The amendment made by 
this section shall apply to taxable years beginning after December 31, 
2005.

                    EFFECTIVE DATES OF 2004 AMENDMENT
      Amendment by Pub.L.108-357, Sec.703; Effective Date.--The 
      amendments made by 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.

             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Pub. L. 107-16, title IV, Sec. 431(d), June 7, 2001, 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 223) shall apply to payments made in
    taxable years beginning after December 31, 2001.''
      Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
    limitation years beginning after Dec. 31, 2010, and the Internal
    Revenue Code of 1986 to be applied and administered to such years
    as if such amendment had never been enacted, see section 901 of
    Pub. L. 107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 202(e) of Pub. L. 105-34 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 of this title)
    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 (Aug. 5, 1997), but only with respect to -
        ''(1) any loan interest payment due and paid after December 31,
      1997, 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 December 31, 1997.''
      Section 975(b) of Pub. L. 105-34 provided that: ''The amendment
    made by this section (amending this section) shall apply to
    expenses paid or incurred in taxable years beginning after December
    31, 1986.''
                     EFFECTIVE DATE OF 1996 AMENDMENTS
      Section 301(j) of Pub. L. 104-191 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 section 220 of this title as section 221) shall apply
    to taxable years beginning after December 31, 1996.''
      Amendment by Pub. L. 104-188 applicable to taxable years
    beginning after Dec. 31, 1999, 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
      Section 13213(e) of Pub. L. 103-66 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 December 31, 1993; 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 AMENDMENTS
      Amendment by Pub. L. 102-486 applicable to property placed in
    service after June 30, 1993, see section 1913(c) of Pub. L.
    102-486, set out as an Effective Date note under section 30 of this
    title.
      Amendment by Pub. L. 102-318 applicable to distributions after
    Dec. 31, 1992, see section 521(e) of Pub. L. 102-318, set out as a
    note under section 402 of this title.
                     EFFECTIVE DATE OF 1988 AMENDMENTS
      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.
      Section 6007(d) of Pub. L. 100-647 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 of this title) shall apply as if included
    in the amendments made by section 132 of the Tax Reform Act of 1986
    (Pub. L. 99-514).''
      Section 702(b) of Pub. L. 100-485 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to
    taxable years beginning after December 31, 1988.''
                      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 Dec. 31, 1986, see
    section 151(a) of Pub. L. 99-514, set out as a note under section 1
    of this title.
      Section 301(c) of Pub. L. 99-514 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 December 31, 1986.''
      Section 1875(c)(12) of Pub. L. 99-514 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
      ''Section 491(f)(1) of Pub. L. 98-369 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
    December 31, 1983.''
                      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 Jan. 1, 1984, 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
      Section 103(d) of Pub. L. 97-34 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 December 31, 1981.''
      Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97-34
    applicable to taxable years beginning after Dec. 31, 1981, 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 AMENDMENTS
      Section 3(b) of Pub. L. 96-608 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 (Dec. 28, 1980).''
      Amendment by Pub. L. 96-451 applicable with respect to additions
    to capital account made after Dec. 31, 1979, 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 Dec. 31, 1977, 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
      Section 502(c) of Pub. L. 94-455 provided that: ''The amendments
    made by this section (amending this section and section 3402 of
    this title) shall apply to taxable years beginning after December
    31, 1976.''
      Section 1501(d) of Pub. L. 94-455 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 as 221 of this
    title), other than the amendment made by subsection (b)(3), shall
    apply to taxable years beginning after December 31, 1976. The
    amendment made by subsection (b)(3) (amending section 415 of this
    title) shall apply to years beginning after December 31, 1976.''
      Amendment by section 1901(a)(8), (9) of Pub. L. 94-455 applicable
    with respect to taxable years beginning after Dec. 31, 1976, see
    section 1901(d) of Pub. L. 94-455, set out as a note under section
    2 of this title.
                     EFFECTIVE DATE OF 1974 AMENDMENTS
      Section 6(b) of Pub. L. 93-483 provided that: ''The amendment
    made by this section (amending this section) applies to taxable
    years beginning after December 31, 1972.''
      Amendment by section 2002(a)(2) of Pub. L. 93-406 applicable to
    taxable years beginning after Dec. 31, 1974, 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 Dec. 31, 1973,
    in taxable years beginning after Dec. 31, 1973, 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 Dec.
    31, 1970, 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
      Section 213(d) of Pub. L. 88-272 provided that: ''The amendments
    made by subsections (a) (enacting section 217 and redesignating
    former section 217 as 218) and (b) (amending this section) shall
    apply to expenses incurred after December 31, 1963, 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 (Feb. 26, 1964).''
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Amendment by Pub. L. 87-792 applicable to taxable years beginning
    after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a
    note under section 22 of this title.
                             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 Nov. 5, 1990, for purposes of
    determining liability for tax for periods ending after Nov. 5,
    1990, see section 11821(b) of Pub. L. 101-508, set out as a note
    under section 29 of this title.
             PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998
      For provisions directing that if any amendments made by subtitle
    D (Sec. 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 Jan. 1, 1998, 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 (Sec. 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 Jan. 1, 1994, 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 (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 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 Jan. 1, 1989, 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, Sec. 2, Oct. 7, 1978, 92 Stat. 996, as amended by
    Pub. L. 96-167, Sec. 2, Dec. 29, 1979, 93 Stat. 1275, provided that
    with respect to transportation costs paid or incurred after
    December 31, 1976, and on or before May 31, 1981, 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, Sec. 2, Nov. 8, 1978, 92 Stat. 3097, provided
    that with respect to transportation costs paid or incurred after
    Dec. 31, 1976, and before Apr. 30, 1978, 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 Nov. 8, 1978
    pursuant to section 210(a) of that Act.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 162, 3402 of this title;
    title 20 section 1087e; title 21 section 849; title 42 section
    1396o.
 

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