Internal Revenue Code:Sec. 911. Citizens or residents of the United States living abroad
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter N - Tax Based on Income From Sources Within or Without
the United States
PART III - INCOME FROM SOURCES WITHOUT THE UNITED STATES
Subpart B - Earned Income of Citizens or Residents of United States
Statute
Sec. 911. Citizens or residents of the United States living abroad
(a) Exclusion from gross income
At the election of a qualified individual (made separately with
respect to paragraphs (1) and (2)), there shall be excluded from
the gross income of such individual, and exempt from taxation under
this subtitle, for any taxable year -
(1) the foreign earned income of such individual, and
(2) the housing cost amount of such individual.
(b) Foreign earned income
(1) Definition
For purposes of this section -
(A) In general
The term ''foreign earned income'' with respect to any
individual means the amount received by such individual from
sources within a foreign country or countries which constitute
earned income attributable to services performed by such
individual during the period described in subparagraph (A) or
(B) of subsection (d)(1), whichever is applicable.
(B) Certain amounts not included in foreign earned income
The foreign earned income for an individual shall not include
amounts -
(i) received as a pension or annuity,
(ii) paid by the United States or an agency thereof to an
employee of the United States or an agency thereof,
(iii) included in gross income by reason of section 402(b)
(relating to taxability of beneficiary of nonexempt trust) or
section 403(c) (relating to taxability of beneficiary under a
nonqualified annuity), or
(iv) received after the close of the taxable year following
the taxable year in which the services to which the amounts
are attributable are performed.
(2) Limitation on foreign earned income
(A) In general
The foreign earned income of an individual which may be
excluded under subsection (a)(1) for any taxable year shall not
exceed the amount of foreign earned income computed on a daily
basis at an annual rate equal to the exclusion amount for the
calendar year in which such taxable year begins.
(B) Attribution to year in which services are performed
For purposes of applying subparagraph (A), amounts received
shall be considered received in the taxable year in which the
services to which the amounts are attributable are performed.
(C) Treatment of community income
In applying subparagraph (A) with respect to amounts received
from services performed by a husband or wife which are
community income under community property laws applicable to
such income, the aggregate amount which may be excludable from
the gross income of such husband and wife under subsection
(a)(1) for any taxable year shall equal the amount which would
be so excludable if such amounts did not constitute community
income.
(D) Exclusion amount
(i) In general
The exclusion amount for any calendar year is the exclusion
amount determined in accordance with the following table (as
adjusted by clause (ii)):
---------------------------------------------------------------------
For calendar year - The exclusion amount is -
---------------------------------------------------------------------
1998 $72,000
1999 74,000
2000 76,000
2001 78,000
2002 and thereafter 80,000.
-------------------------------
(ii) Inflation adjustment
In the case of any taxable year beginning in a calendar
year after 2005, the $80,000 amount in clause (i) shall be
increased by an amount equal to the product of -
(I) such dollar amount, and
(II) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ''2004'' for
''1992'' in subparagraph (B) thereof.
If any increase determined under the preceding sentence is not
a multiple of $100, such increase shall be rounded to the
next lowest multiple of $100.
(c) Housing cost amount
For purposes of this section -
(1) In general
The term ''housing cost amount'' means an amount equal to the
excess of -
(A) the housing expenses of an individual for the taxable
year to the extent such expenses do not exceed the amount
determined under paragraph (2), over
(B) an amount equal to the product of -
(i) 16 percent of the amount (computed on a
daily basis) in effect under subsection (b)(2)(D)
for the calendar year in which such taxable year
begins, multiplied by
(ii) the number of days of such taxable year within the
applicable period described in subparagraph (A) or (B) of
subsection (d)(1).
(2) Limitation.--
(A) In general.--The amount determined under this
paragraph is an amount equal to the product of--
(i) 30 percent (adjusted as may be provided
under subparagraph (B)) of the amount (computed on
a daily basis) in effect under subsection
(b)(2)(D) for the calendar year in which the
taxable year of the individual begins, multiplied by
(ii) the number of days of such taxable year
within the applicable period described in
subparagraph (A) or (B) of subsection (d)(1).
(B) Regulations.--The Secretary may issue
regulations or other guidance providing for the
adjustment of the percentage under subparagraph (A)(i)
on the basis of geographic differences in housing costs
relative to housing costs in the United States.
(3) Housing expenses
(A) In general
The term ''housing expenses'' means the reasonable expenses
paid or incurred during the taxable year by or on behalf of an
individual for housing for the individual (and, if they reside
with him, for his spouse and dependents) in a foreign country.
The term -
(i) includes expenses attributable to the housing (such as
utilities and insurance), but
(ii) does not include interest and taxes of the kind
deductible under section 163 or 164 or any amount allowable
as a deduction under section 216(a).
Housing expenses shall not be treated as reasonable to the
extent such expenses are lavish or extravagant under the
circumstances.
(B) Second foreign household
(i) In general
Except as provided in clause (ii), only housing expenses
incurred with respect to that abode which bears the closest
relationship to the tax home of the individual shall be taken
into account under paragraph (1).
(ii) Separate household for spouse and dependents
If an individual maintains a separate abode outside the
United States for his spouse and dependents and they do not
reside with him because of living conditions which are
dangerous, unhealthful, or otherwise adverse, then -
(I) the words ''if they reside with him'' in subparagraph
(A) shall be disregarded, and
(II) the housing expenses incurred with respect to such
abode shall be taken into account under paragraph (1).
(4) Special rules where housing expenses not provided by employer
(A) In general
To the extent the housing cost amount of any individual for
any taxable year is not attributable to employer provided
amounts, such amount shall be treated as a deduction allowable
in computing adjusted gross income to the extent of the
limitation of subparagraph (B).
(B) Limitation
For purposes of subparagraph (A), the limitation of this
subparagraph is the excess of -
(i) the foreign earned income of the individual for the
taxable year, over
(ii) the amount of such income excluded from gross income
under subsection (a) for the taxable year.
(C) 1-year carryover of housing amounts not allowed by reason
of subparagraph (B)
(i) In general
The amount not allowable as a deduction for any taxable
year under subparagraph (A) by reason of the limitation of
subparagraph (B) shall be treated as a deduction allowable in
computing adjusted gross income for the succeeding taxable
year (and only for the succeeding taxable year) to the extent
of the limitation of clause (ii) for such succeeding taxable
year.
(ii) Limitation
For purposes of clause (i), the limitation of this clause
for any taxable year is the excess of -
(I) the limitation of subparagraph (B) for such taxable
year, over
(II) amounts treated as a deduction under subparagraph
(A) for such taxable year.
(D) Employer provided amounts
For purposes of this paragraph, the term ''employer provided
amounts'' means any amount paid or incurred on behalf of the
individual by the individual's employer which is foreign earned
income included in the individual's gross income for the
taxable year (without regard to this section).
(E) Foreign earned income
For purposes of this paragraph, an individual's foreign
earned income for any taxable year shall be determined without
regard to the limitation of subparagraph (A) of subsection
(b)(2).
(d) Definitions and special rules
For purposes of this section -
(1) Qualified individual
The term ''qualified individual'' means an individual whose tax
home is in a foreign country and who is -
(A) a citizen of the United States and establishes to the
satisfaction of the Secretary that he has been a bona fide
resident of a foreign country or countries for an uninterrupted
period which includes an entire taxable year, or
(B) a citizen or resident of the United States and who,
during any period of 12 consecutive months, is present in a
foreign country or countries during at least 330 full days in
such period.
(2) Earned income
(A) In general
The term ''earned income'' means wages, salaries, or
professional fees, and other amounts received as compensation
for personal services actually rendered, but does not include
that part of the compensation derived by the taxpayer for
personal services rendered by him to a corporation which
represents a distribution of earnings or profits rather than a
reasonable allowance as compensation for the personal services
actually rendered.
(B) Taxpayer engaged in trade or business
In the case of a taxpayer engaged in a trade or business in
which both personal services and capital are material
income-producing factors, under regulations prescribed by the
Secretary, a reasonable allowance as compensation for the
personal services rendered by the taxpayer, not in excess of 30
percent of his share of the net profits of such trade or
business, shall be considered as earned income.
(3) Tax home
The term ''tax home'' means, with respect to any individual,
such individual's home for purposes of section 162(a)(2)
(relating to traveling expenses while away from home). An
individual shall not be treated as having a tax home in a foreign
country for any period for which his abode is within the United
States.
(4) Waiver of period of stay in foreign country
Notwithstanding paragraph (1), an individual who -
(A) is a bona fide resident of, or is present in, a foreign
country for any period,
(B) leaves such foreign country after August 31, 1978 -
(i) during any period during which the Secretary
determines, after consultation with the Secretary of State or
his delegate, that individuals were required to leave such
foreign country because of war, civil unrest, or similar
adverse conditions in such foreign country which precluded
the normal conduct of business by such individuals, and
(ii) before meeting the requirements of such paragraph (1),
and
(C) establishes to the satisfaction of the Secretary that
such individual could reasonably have been expected to have met
such requirements but for the conditions referred to in clause
(i) of subparagraph (B),
shall be treated as a qualified individual with respect to the
period described in subparagraph (A) during which he was a bona
fide resident of, or was present in, the foreign country, and in
applying subsections (b)(2)(A), (c)(1)(B)(ii), and (c)(2)(A)(ii)
with respect to such individual, only the days within such period
shall be taken into account.
(5) Test of bona fide residence
If -
(A) an individual who has earned income from sources within a
foreign country submits a statement to the authorities of that
country that he is not a resident of that country, and
(B) such individual is held not subject as a resident of that
country to the income tax of that country by its authorities
with respect to such earnings,
then such individual shall not be considered a bona fide resident
of that country for purposes of paragraph (1)(A).
(6) Denial of double benefits
No deduction or exclusion from gross income under this subtitle
or credit against the tax imposed by this chapter (including any
credit or deduction for the amount of taxes paid or accrued to a
foreign country or possession of the United States) shall be
allowed to the extent such deduction, exclusion, or credit is
properly allocable to or chargeable against amounts excluded from
gross income under subsection (a).
(7) Aggregate benefit cannot exceed foreign earned income
The sum of the amount excluded under subsection (a) and the
amount deducted under subsection (c)(4)(A) for the taxable year
shall not exceed the individual's foreign earned income for such
year.
(8) Limitation on income earned in restricted country
(A) In general
If travel (or any transaction in connection with such travel)
with respect to any foreign country is subject to the
regulations described in subparagraph (B) during any period -
(i) the term ''foreign earned income'' shall not include
any income from sources within such country attributable to
services performed during such period,
(ii) the term ''housing expenses'' shall not include any
expenses allocable to such period for housing in such country
or for housing of the spouse or dependents of the taxpayer in
another country while the taxpayer is present in such
country, and
(iii) an individual shall not be treated as a bona fide
resident of, or as present in, a foreign country for any day
during which such individual was present in such country
during such period.
(B) Regulations
For purposes of this paragraph, regulations are described in
this subparagraph if such regulations -
(i) have been adopted pursuant to the Trading With the
Enemy Act (50 U.S.C. App. 1 et seq.), or the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), and
(ii) include provisions generally prohibiting citizens and
residents of the United States from engaging in transactions
related to travel to, from, or within a foreign country.
(C) Exception
Subparagraph (A) shall not apply to any individual during any
period in which such individual's activities are not in
violation of the regulations described in subparagraph (B).
(9) Regulations
The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of this
section, including regulations providing rules -
(A) for cases where a husband and wife each have earned
income from sources outside the United States, and
(B) for married individuals filing separate returns.
(e) Election
(1) In general
An election under subsection (a) shall apply to the taxable
year for which made and to all subsequent taxable years unless
revoked under paragraph (2).
(2) Revocation
A taxpayer may revoke an election made under paragraph (1) for
any taxable year after the taxable year for which such election
was made. Except with the consent of the Secretary, any taxpayer
who makes such a revocation for any taxable year may not make
another election under this section for any subsequent taxable
year before the 6th taxable year after the taxable year for which
such revocation was made.
(f) Determination of Tax Liability on Nonexcluded Amounts.--For
purposes of this chapter, if any amount is excluded
from the gross income of a taxpayer under subsection (a) for any taxable
year, then, notwithstanding section 1 or 55--
(1) the tax imposed by section 1 on the taxpayer for such
taxable year shall be equal to the excess (if any) of--
(A) the tax which would be imposed by section 1
for the taxable year if the taxpayer's taxable income
were increased by the amount excluded under subsection
(a) for the taxable year, over
(B) the tax which would be imposed by section 1
for the taxable year if the taxpayer's taxable income
were equal to the amount excluded under subsection (a)
for the taxable year, and
(2) the tentative minimum tax under section 55 for such
taxable year shall be equal to the excess (if any) of--
(A) the amount which would be such tentative
minimum tax for the taxable year if the taxpayer's
taxable excess were increased by the amount excluded
under subsection (a) for the taxable year, over
(B) the amount which would be such tentative
minimum tax for the taxable year if the taxpayer's
taxable excess were equal to the amount excluded under
subsection (a) for the taxable year.
For purposes of this subsection, the amount excluded under subsection
(a) shall be reduced by the aggregate amount of any deductions or
exclusions disallowed under subsection (d)(6) with respect to such
excluded amount.
(g) Cross references
For administrative and penal provisions relating to the
exclusions provided for in this section, see sections 6001,
6011, 6012(c), and the other provisions of subtitle F.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 289; Pub. L. 85-866, title I,
Sec. 72(b), Sept. 2, 1958, 72 Stat. 1660; Pub. L. 87-834, Sec.
11(a), Oct. 16, 1962, 76 Stat. 1003; Pub. L. 88-272, title II, Sec.
237(a), Feb. 26, 1964, 78 Stat. 128; Pub. L. 89-809, title I, Sec.
105(e)(3), Nov. 13, 1966, 80 Stat. 1567; Pub. L. 94-455, title X,
Sec. 1011(a), (b), title XIX, Sec. 1901(a)(115), 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1610, 1784, 1834; Pub. L. 95-30, title I,
Sec. 102(b)(12), May 23, 1977, 91 Stat. 138; Pub. L. 95-600, title
IV, Sec. 401(b)(4), title VII, Sec. 701(u)(10)(A), 703(e), Nov. 6,
1978, 92 Stat. 2867, 2917, 2939; Pub. L. 95-615, title II, Sec.
202(a)-(e), (g)(1), formerly Sec. 202(a)-(f)(1), Nov. 8, 1978, 92
Stat. 3098-3100, renumbered Sec. 202(a)-(e), (g)(1), and amended
Pub. L. 96-222, title I, Sec. 107(a)(3)(B), 108(a)(1)(A), (C), (D),
Apr. 1, 1980, 94 Stat. 223, 224; Pub. L. 96-595, Sec. 4(a)-(c)(1),
Dec. 24, 1980, 94 Stat. 3466, 3467; Pub. L. 97-34, title I, Sec.
111(a), Aug. 13, 1981, 95 Stat. 190; Pub. L. 97-448, title I, Sec.
101(c), Jan. 12, 1983, 96 Stat. 2366; Pub. L. 98-369, div. A,
title I, Sec. 17, July 18, 1984, 98 Stat. 505; Pub. L. 99-514,
title XII, Sec. 1233(a), (b), Oct. 22, 1986, 100 Stat. 2564; Pub.
L. 105-34, title XI, Sec. 1172(a), Aug. 5, 1997, 111 Stat. 988.)
References in Text
REFERENCES IN TEXT
The Trading With the Enemy Act, referred to in subsec.
(d)(8)(B)(i), is act Oct. 6, 1917, ch. 106, 40 Stat. 411, as
amended, which is classified to sections 1 to 6, 7 to 39, and 41 to
44 of Title 50, Appendix, War and National Defense. For complete
classification of this Act to the Code, see Tables.
The International Emergency Economic Powers Act, referred to in
subsec. (d)(8)(B)(i), is Pub. L. 95-223, title II, Dec. 28, 1977,
91 Stat. 1626, which is classified generally to chapter 35 (Sec.
1701 et seq.) of Title 50, War and National Defense. For complete
classification of this Act to the Code, see Short Title note set
out under section 1701 of Title 50 and Tables.
Miscellaneous
AMENDMENTS
2006 - P.L. 109-222
SEC. 515. MODIFICATION OF EXCLUSION FOR CITIZENS LIVING ABROAD.
(a) Inflation Adjustment of Foreign Earned Income Limitation.--
Clause (ii) of <<NOTE: 26 USC 911.>> section 911(b)(2)(D) (relating to
inflation adjustment) is amended--
(1) by striking ``2007'' and inserting ``2005'', and
(2) by striking ``2006'' in subclause (II) and inserting
``2004''.
(b) Modification of Housing Cost Amount.--
(1) Modification of housing cost floor.--Clause (i) of
section 911(c)(1)(B) is amended to read as follows:
``(i) 16 percent of the amount (computed on a
daily basis) in effect under subsection (b)(2)(D)
for the calendar year in which such taxable year
begins, multiplied by''.
(2) Maximum amount of exclusion.--
(A) In general.--Subparagraph (A) of section
911(c)(1) is amended by inserting ``to the extent such
expenses do not exceed the amount determined under
paragraph (2)'' after ``the taxable year''.
(B) Limitation.--Subsection (c) of section 911 is
amended by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively, and by inserting
after paragraph (1) the following new paragraph:
``(2) Limitation.--
``(A) In general.--The amount determined under this
paragraph is an amount equal to the product of--
``(i) 30 percent (adjusted as may be provided
under subparagraph (B)) of the amount (computed on
a daily basis) in effect under subsection
(b)(2)(D) for the calendar year in which the
taxable year of the individual begins, multiplied
by
``(ii) the number of days of such taxable year
within the applicable period described in
subparagraph (A) or (B) of subsection (d)(1).
``(B) Regulations.--The Secretary may issue
regulations or other guidance providing for the
adjustment of the percentage under subparagraph (A)(i)
on the basis of geographic differences in housing costs
relative to housing costs in the United States.''.
(C) Conforming amendments.--
(i) Section 911(d)(4) is amended by striking
``and (c)(1)(B)(ii)'' and inserting ``,
(c)(1)(B)(ii), and (c)(2)(A)(ii)''.
(ii) Section 911(d)(7) is amended by striking
``subsection (c)(3)'' and inserting ``subsection
(c)(4)''.
(c) Rates of Tax Applicable to Nonexcluded Income.--Section 911
(relating to exclusion of certain income of citizens and residents of
the United States living abroad) is amended by redesignating subsection
(f) as subsection (g) and by inserting after subsection (e) the
following new subsection:
``(f) Determination of Tax Liability on Nonexcluded Amounts.--For
purposes of this chapter, if any amount is excluded
from the gross income of a taxpayer under subsection (a) for any taxable
year, then, notwithstanding section 1 or 55--
``(1) the tax imposed by section 1 on the taxpayer for such
taxable year shall be equal to the excess (if any) of--
``(A) the tax which would be imposed by section 1
for the taxable year if the taxpayer's taxable income
were increased by the amount excluded under subsection
(a) for the taxable year, over
``(B) the tax which would be imposed by section 1
for the taxable year if the taxpayer's taxable income
were equal to the amount excluded under subsection (a)
for the taxable year, and
``(2) the tentative minimum tax under section 55 for such
taxable year shall be equal to the excess (if any) of--
``(A) the amount which would be such tentative
minimum tax for the taxable year if the taxpayer's
taxable excess were increased by the amount excluded
under subsection (a) for the taxable year, over
``(B) the amount which would be such tentative
minimum tax for the taxable year if the taxpayer's
taxable excess were equal to the amount excluded under
subsection (a) for the taxable year.
For purposes of this subsection, the amount excluded under subsection
(a) shall be reduced by the aggregate amount of any deductions or
exclusions disallowed under subsection (d)(6) with respect to such
excluded amount.''.
(d) Effective Date.--The <<NOTE: 26 USC 911 note.>> amendments made
by this section shall apply to taxable years beginning after December
31, 2005.
1997 - Subsec. (b)(2)(A). Pub. L. 105-34, Sec. 1172(a)(1),
substituted ''equal to the exclusion amount for the calendar year
in which such taxable year begins'' for ''of $70,000''.
Subsec. (b)(2)(D). Pub. L. 105-34, Sec. 1172(a)(2), added subpar.
(D).
1986 - Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 1233(a), in
amending subpar. (A) generally, substituted ''an annual rate of
$70,000'' for ''the annual rate set forth in the following table
for each day of the taxable year within the applicable period
described in subparagraph (A) or (B) of subsection (d)(1):
''In the case of taxable years
beginning in: The annual rate is:
1983, 1984, 1985, 1986, or 1987 $80,000
1988 85,000
1989 90,000
1990 and thereafter 95,000.''
Subsec. (d)(8), (9). Pub. L. 99-514, Sec. 1233(b), added par. (8)
and redesignated former par. (8) as (9).
1984 - Subsec. (b)(2)(A). Pub. L. 98-369 amended table by
striking out item which set the annual rate at $75,000 for taxable
years beginning in 1982, substituted item setting the annual rate
at $80,000 for taxable years beginning in 1983, 1984, 1985, 1986,
or 1987 for items which had set annual rates of $80,000 for taxable
years beginning in 1983, $85,000 for taxable years beginning in
1984, $90,000 for taxable years beginning in 1985, and $95,000 for
taxable years beginning in 1986 and thereafter, and added items
setting annual rates of $85,000 for taxable years beginning in
1988, $90,000 for taxable years beginning in 1989, and $95,000 for
taxable years beginning in 1990 and thereafter.
1983 - Subsec. (c)(3)(B)(ii). Pub. L. 97-448, Sec. 101(c)(2),
substituted ''subsection (a)'' for ''subsection (a)(1)''.
Subsec. (d)(7), (8). Pub. L. 97-448, Sec. 101(c)(1), added par.
(7) and redesignated former par. (7) as (8).
1981 - Pub. L. 97-34 amended section generally, modifying the
eligibility standards of existing law, replacing the existing
system of deduction for excess living costs with an exclusion of a
portion of foreign earned income, and providing for an individual's
election to exclude a portion of his income or to deduct an amount
for housing, based on his housing expenses.
1980 - Pub. L. 96-595 Sec. 4(c)(1), inserted ''or from charitable
services'' after ''camps'' in section catchline.
Subsec. (a). Pub. L. 96-595, Sec. 4(a), inserted ''or who
performs qualified charitable services in a lesser developed
country,'' after ''hardship area''.
Pub. L. 96-222, Sec. 108(a)(1)(C), (D), substituted ''a foreign
country or'' for ''qualified foreign'' in par. (2) and, in
provisions following par. (2), substituted ''his gross income any
deduction,'' for ''his gross income'' and ''other than the
deduction allowed by section 217'' for ''other than the deductions
allowed by sections 217''.
Subsec. (c)(1)(A). Pub. L. 96-595, Sec. 4(b)(1), substituted
''Dollar limitations'' for ''In general'' in heading, redesignated
existing provisions as cl. (i), and in cl. (i) as so redesignated,
inserted ''Camp residents - In the case of an individual who
resides in a camp located in a hardship area'' before ''the amount
excluded'', and added cls. (ii) and (iii).
Subsec. (c)(1)(D), (E). Pub. L. 96-595, Sec. 4(b)(2), added
subpars. (D) and (E).
1978 - Pub. L. 95-615, Sec. 202(f)(1), substituted ''Income
earned by individuals in certain camps'' for ''Earned income from
sources without the United States'' in section catchline.
Subsec. (a). Pub. L. 95-615, Sec. 202(a), in introductory
provisions inserted reference to an individual described in section
913(a) who, because of his employment, resides in a camp located in
a hardship area, in par. (1) substituted reference to amounts
received from sources within a foreign country or countries for
reference to amounts received from sources without the United
States, in par. (2) substituted reference to amounts received from
sources within qualified foreign countries for reference to amounts
received from sources without the United States, and in provisions
following par. (2) struck out ''any deductions (other than those
allowed by section 151, relating to personal exemptions),'' after
''deduction from his gross income'' and inserted '', other than the
deductions allowed by sections 217 (relating to moving expenses)''
after ''subsection''.
Pub. L. 95-600, Sec. 701(u)(10)(A), inserted provisions setting
forth formula for determining amount of reduction of taxes, and
struck out provisions relating to the credit against taxes.
Subsec. (c)(1)(A). Pub. L. 95-615, Sec. 202(b), substituted ''The
amount excluded'' for ''Except as provided in subparagraphs (B) and
(C), the amount excluded'' and ''an annual rate of $20,000 for days
during which he resides in a camp'' for ''an annual rate of
$15,000''.
Subsec. (c)(1)(B). Pub. L. 95-615, Sec. 202(b), substituted
provisions relating to conditions upon which an individual will be
considered to reside in a camp because of his employment for
provisions which related to the amount excluded from the gross
income of an individual performing qualified charitable services.
Subsec. (c)(1)(C). Pub. L. 95-615, Sec. 202(b), substituted
provisions relating to definition of ''hardship area'' for
provisions which related to the amount excluded from the gross
income of an individual performing both qualified charitable
services and other services.
Subsec. (c)(1)(D). Pub. L. 95-615, Sec. 202(b), struck out
subpar. (D) which defined ''qualified charitable services''.
Subsec. (c)(7). Pub. L. 95-615, Sec. 202(c), added par. (7).
Pub. L. 95-600, Sec. 703(e), redesignated former par. (8) as (7).
Such par. (8) was subsequently repealed by section 202(e) of Pub.
L. 95-615 without taking into account the redesignation of par. (8)
as (7) by Pub. L. 95-600. See 1978 Amendment note for subsec.
(c)(8) below.
Subsec. (c)(8). Pub. L. 95-615, Sec. 202(e), struck out par. (8)
which related to the nonexclusion under subsec. (a) of any amount
attributable to services performed in a foreign country or
countries if such amount was received outside of the foreign
country or countries where such services were performed and if one
of the purposes was the avoidance of any tax imposed by such
foreign country or countries on such amount.
Subsec. (d). Pub. L. 95-615, Sec. 202(d)(1), redesignated subsec.
(e) as (d), inserted ''for the taxable year'' after ''section
apply'', and struck out provision that an election was applicable
to the taxable year for which made and to all subsequent taxable
years. Former subsec. (d), which related to the computation of tax
imposed by section 1 or section 1201 if an individual earned income
which was excluded from gross income under subsec. (a) and which
defined ''net taxable income'' and ''net excluded earned income'',
was struck out.
Subsec. (d)(1). Pub. L. 95-600, Sec. 401(b)(4), struck out
provisions respecting applicability of section 1201 of this title.
Subsecs. (e), (f). Pub. L. 95-615, Sec. 202(d)(1), (2),
redesignated subsec. (f) as (e). Former subsec. (e) redesignated
(d).
1977 - Subsec. (d)(1)(B). Pub. L. 95-30 substituted ''on the sum
of (i) the amount of net excluded earned income, and (ii) the zero
bracket amount'' for ''on the amount of net excluded earned
income''.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1011(b)(1),
1906(b)(13)(A), struck out ''or his delegate'' after ''Secretary''
in par. (1), and in provisions following par. (2), inserted ''or as
a credit against the tax imposed by this chapter any credit for the
amount of taxes paid or accrued to a foreign country or possession
of the United States, to the extent that such deductions or credit
is'' after ''personal exemptions)''.
Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ''or
his delegate'' after ''Secretary''.
Subsec. (c)(1). Pub. L. 94-455, Sec. 1011(a), reduced the amount
excludable from individual's gross income from $20,000 to $15,000
and $20,000 for employees of charitable organizations, added
special rule to be applied to income from charitable sources and
other sources combined, inserted definition of ''qualified
charitable services'', and struck out provisions relating to
$25,000 exclusion for individual who has been a bona fide resident
in a foreign country for an uninterrupted period of 3 years.
Subsec. (c)(7). Pub. L. 94-455, Sec. 1901(a)(115), struck out
par. (7) relating to certain noncash remuneration from sources
outside the United States.
Subsec. (c)(8). Pub. L. 94-455, Sec. 1011(b)(2), added par. (8).
Subsecs. (d) to (f). Pub. L. 94-455, Sec. 1011(b)(3), added
subsecs. (d) and (e) and redesignated former subsec. (d) as (f).
1966 - Subsec. (d). Pub. L. 89-809 designated existing text as
par. (1) and added par. (2).
1964 - Subsec. (c)(1)(B). Pub. L. 88-272 substituted ''$25,000''
for ''$35,000''.
1962 - Subsec. (a). Pub. L. 87-834 substituted ''which constitute
earned income attributable to services performed during such
uninterrupted period'' for ''if such amounts constitute earned
income (as defined in subsection (b)) attributable to such period''
in par. (1), and ''which constitute earned income attributable to
services performed during such 18-month period'' for ''if such
amounts constitute earned income (as defined in subsection (b))
attributable to such period'' in par. (2), inserted provisions in
pars. (1) and (2) requiring the amount excluded under such
paragraphs to be computed by applying the special rules contained
in subsec. (c), and eliminated provisions from par. (2) which
limited the amount excluded under such paragraph to not more than
$20,000 if the 18-month period includes the entire taxable year,
and to not more than an amount which bears the same ratio to
$20,000 as the number of days in the part of the taxable year
within the 18-month period bears to the total number of days in
such year if the 18-month period does not include the entire
taxable year.
Subsecs. (c) and (d). Pub. L. 87-834 added subsec. (c) and
redesignated former subsec. (c) as (d).
1958 - Subsec. (c). Pub. L. 85-866 added subsec. (c).
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - P.L. 109-222
SEC. 515. MODIFICATION OF EXCLUSION FOR CITIZENS LIVING ABROAD.
(d) Effective Date.--The <<NOTE: 26 USC 911 note.>> amendments made
by this section shall apply to taxable years beginning after December
31, 2005.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1172(b) of Pub. L. 105-34 provided that: ''The amendment
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1997.''
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1233(c) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1986.''
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxable years ending
after Dec. 31, 1983, see section 18(a) of Pub. L. 98-369, set out
as a note under section 48 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise
provided, as if it had been included in the provision of the
Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 115 of subtitle B (Sec. 111-115) of title I of Pub. L.
97-34 provided that: ''The amendments made by this subtitle
(amending this section and sections 37, 43, 62, 63, 105, 119, 410,
879, 1034, 1302, 1303, 1304, 1402, 3401, 6012, and 6091 of this
title and repealing section 913 of this title) (other than section
114 (amending section 208 of Pub. L. 95-615, set out below)) shall
apply with respect to taxable years beginning after December 31,
1981.''
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 4(d) of Pub. L. 96-595 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1978.''
Amendment by section 107(a)(3)(B) of Pub. L. 96-222 effective,
except as otherwise provided, as if it had been included in the
provisions of the Revenue Act of 1978, Pub. L. 95-600, to which
such amendment relates, see section 201 of Pub. L. 96-222, set out
as a note under section 32 of this title.
Amendment by section 108(a)(1)(A), (C), (D) of Pub. L. 96-222
effective as if included in the Foreign Earned Income Act of 1978,
Pub. L. 95-615, see section 108(a)(2)(A) of Pub. L. 96-222, set out
as a note under section 3 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 401(b)(4) of Pub. L. 95-600 applicable to
taxable years beginning after Dec. 31, 1978, see section 401(c) of
Pub. L. 95-600, set out as a note under section 1201 of this title.
Section 701(u)(10)(B) of Pub. L. 95-600, as amended by Pub. L.
96-222, title I, Sec. 107(a)(1)(B), Apr. 1, 1980, 94 Stat. 222,
provided that: ''The amendment made by subparagraph (A) (amending
this section) shall apply to taxable years beginning in calendar
year 1978 but only in the case of taxpayers who make an election
under section 209(c) of the Foreign Earned Income Act of 1978
(section 209(c) of Pub. L. 95-615, set out below).''
Amendment by section 703(e) of Pub. L. 95-600 effective on Oct.
4, 1976, see section 703(r) of Pub. L. 95-600, set out as a note
under section 46 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION OF PRIOR LAW
Section 209 of Pub. L. 95-615 provided that:
''(a) General Rule. - Except as provided in subsections (b) and
(c), the amendments made by this title (see section 201(a) of Pub.
L. 95-615, set out as a Short Title of 1978 Amendment note under
section 1 of this title) shall apply to taxable years beginning
after December 31, 1977.
''(b) Wage Withholding. - The amendment made by section 207(a)
(amending section 3401 of this title) shall apply to remuneration
paid after the date of the enactment of this Act. (Nov. 8, 1978).
''(c) Election of Prior Law. -
''(1) A taxpayer may elect not to have the amendments made by
this title (see section 201(a) of Pub. L. 95-615, set out as a
Short Title of 1978 Amendment note under section 1 of this title)
apply with respect to any taxable year beginning after December
31, 1977, and before January 1, 1979.
''(2) An election under this subsection shall be filed with a
taxpayer's timely filed return for the first taxable year
beginning after December 31, 1977.''
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1011(d) of Pub. L. 94-455, as amended by Pub. L. 95-30,
title III, Sec. 302, May 23, 1977, 91 Stat. 152; Pub. L. 95-615,
Sec. 4(a), Nov. 8, 1978, 92 Stat. 3097, provided that: ''The
amendments made by this section (amending this section and section
36 of this title) shall apply to taxable years beginning after
December 31, 1977.''
Amendment by section 1901(a)(115) 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 1964 AMENDMENT
Section 237(b) of Pub. L. 88-272 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1964.''
EFFECTIVE DATE OF 1962 AMENDMENT
Section 11(c)(1) of Pub. L. 87-834 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years ending after September 4, 1962, but only with respect
to amounts -
''(A) received after March 12, 1962, which are attributable to
services performed after December 31, 1962, or
''(B) received after December 31, 1962, which are attributable
to services performed on or before December 31, 1962, unless on
March 12, 1962, there existed a right (whether forfeitable or
nonforfeitable) to receive such amounts.''
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 applicable to taxable years beginning
after Dec. 31, 1957, see section 72(c) of Pub. L. 85-866 set out as
a note under section 6012 of this title.
REPEALS
Section 703(e) of Pub. L. 95-600, cited as a credit to this
section, was repealed by Pub. L. 96-222, title I, Sec.
107(a)(3)(B), Apr. 1, 1980, 94 Stat. 223. See 1978 Amendment note
for subsec. (c)(7) of this section set out above.
TREATMENT OF CERTAIN PERSONS IN PANAMA
Section 1232(a) of Pub. L. 99-514 provided that: ''Nothing in the
Panama Canal Treaty (or in any agreement implementing such Treaty)
shall be construed as exempting (in whole or in part) any citizen
or resident of the United States from any tax under the Internal
Revenue Code of 1954 or 1986. The preceding sentence shall apply to
all taxable years whether beginning before, on, or after the date
of the enactment of this Act (Oct. 22, 1986) (or in the case of any
tax not imposed with respect to a taxable year, to taxable events
after the date of enactment of this Act.)''
TAXABLE YEARS BEGINNING IN 1977 OR 1978; INDIVIDUALS WHO LEAVE
FOREIGN COUNTRY AFTER AUGUST 31, 1978
Rules similar to the rules of section 913(j)(4) of this title to
apply for the purposes of applying this section for taxable years
beginning in 1977 or 1978 in the case of an individual who leaves a
foreign country after Aug. 31, 1978, see section 1(b) of Pub. L.
96-608, set out as an Effective Date of 1980 Amendment note under
section 913 of this title.
INDIVIDUALS FOR WHOM UNUSED ZERO BRACKET AMOUNT COMPUTATION IS
PROVIDED FOR TAXABLE YEARS BEGINNING IN 1977
Section 4(b) of Pub. L. 95-615, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''If for any
taxable year beginning in 1977 -
''(1) an individual is entitled to the benefits of section 911
of the Internal Revenue Code of 1986 (formerly I.R.C. 1954), and
''(2) such individual chooses to take to any extent the
benefits of section 901 of such Code,
then such individual shall be treated for such taxable year as an
individual for whom an unused zero bracket amount computation is
provided by section 63(e) of such Code.''
REPORTS TO CONGRESSIONAL COMMITTEES; INFORMATION FROM FEDERAL
AGENCIES
Section 208 of Pub. L. 95-615, as amended by Pub. L. 97-34, title
I, Sec. 114, Aug. 13, 1981, 95 Stat. 195; Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101-508, title XI, Sec.
11833, Nov. 5, 1990, 104 Stat. 1388-560, provided that:
''(a) General Rule. - As soon as practicable after December 31,
1993, and as soon as practicable after the close of each fifth
calendar year thereafter, the Secretary of the Treasury shall
transmit a report to the Committee on Ways and Means of the House
of Representatives and to the Committee on Finance of the Senate on
the operation and effects of sections 911 and 912 of the Internal
Revenue Code of 1986 (formerly I.R.C. 1954).
''(b) Information From Federal Agencies. - Each agency of the
Federal Government which pays allowances excludable from gross
income under section 912 of such Code shall keep such records and
furnish to the Secretary of the Treasury such information as he
determines to be necessary to carry out his responsibility under
subsection (a).''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1, 23, 24, 25A, 25B, 32,
59, 66, 72, 79, 86, 105, 135, 137, 219, 221, 222, 403, 410, 414,
415, 469, 505, 530, 865, 879, 988, 1400C, 1402, 3401, 4980B, 6012,
6091, 7701 of this title; title 22 section 3310; title 29 section
1322; title 42 sections 411, 604.
