
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1402]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                CHAPTER 2--TAX ON SELF-EMPLOYMENT INCOME
 
Sec. 1402. Definitions


(a) Net earnings from self-employment

    The term ``net earnings from self-employment'' means the gross 
income derived by an individual from any trade or business carried on by 
such individual, less the deductions allowed by this subtitle which are 
attributable to such trade or business, plus his distributive share 
(whether or not distributed) of income or loss described in section 
702(a)(8) from any trade or business carried 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 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) together with the deductions 
    attributable thereto, unless such rentals are received in the course 
    of a trade or business as 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 coupons 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 business as a 
    dealer in stocks or securities;
        (3) there shall be excluded any gain or loss--
            (A) which is considered 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 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 shall not be allowed;
        (5) if--
            (A) any of the income derived from a trade or business 
        (other than a trade or business carried on by a partnership) is 
        community income under community property laws applicable to 
        such income, all of the gross income and deductions attributable 
        to such trade or business shall be treated as the gross income 
        and deductions of the husband unless the wife exercises 
        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; 
        and
            (B) any portion of a partner's distributive share of the 
        ordinary income or loss from a trade 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-
        employment of such partner, and no part of such share shall be 
        taken into account in computing the net earnings from self-
        employment of the spouse of such partner;

        (6) a resident of Puerto Rico shall compute his net earnings 
    from self-employment in the same manner as a citizen of the United 
    States but without regard to section 933;
        (7) the deduction for personal exemptions provided in section 
    151 shall not be allowed;
        (8) an individual who is a duly ordained, commissioned, or 
    licensed minister of a church or a member of a religious order shall 
    compute his net 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 citizens or residents of the 
    United States living abroad), but shall not include in such net 
    earnings from self-employment the rental value of any parsonage or 
    any parsonage allowance (whether or not excludable under section 
    107) provided after the individual retires, or any other retirement 
    benefit received by such individual from a church plan (as defined 
    in section 414(e)) after the individual retires;
        (9) the exclusion from gross income provided by section 931 
    shall not apply;
        (10) there shall be excluded amounts received by a partner 
    pursuant to a written plan of the partnership, which meets such 
    requirements as are prescribed by the Secretary, and which provides 
    for payments on account of retirement, on a periodic basis, to 
    partners generally or to a class or classes of partners, such 
    payments to continue at least until such partner's death, if--
            (A) such partner rendered no services with respect to any 
        trade or business carried on by such partnership (or its 
        successors) during the taxable year of 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's taxable year referred to in subparagraph (A)) from 
        the other partners to such partner except with respect to 
        retirement payments under such plan, and
            (C) such partner's share, if any, of the capital of the 
        partnership has been paid to him in full before the close of the 
        partnership's taxable year referred to in subparagraph (A);

        (11) the exclusion from gross income provided by section 
    911(a)(1) shall not apply;
        (12) in lieu of the deduction provided by section 164(f) 
    (relating to deduction for one-half of self-employment taxes), there 
    shall be allowed a deduction equal to the product of--
            (A) the taxpayer's net 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 for such year;

        (13) there shall be excluded the distributive share of any item 
    of income or loss of a limited partner, as such, other than 
    guaranteed payments described in section 707(c) to that partner for 
    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;
        (14) in the case of church employee income, the special rules of 
    subsection (j)(1) shall apply; and
        (15) in the case of a member of an Indian tribe, the special 
    rules of section 7873 (relating to income derived by Indians from 
    exercise of fishing rights) shall apply.

If the taxable year of a partner is different from that of the 
partnership, the distributive share which he is required to include in 
computing his net earnings from self-employment shall be based on the 
ordinary income or loss of the partnership for any taxable year of the 
partnership ending within or with his taxable year. In the case of any 
trade or business which is carried on by an individual or by a 
partnership and in which, if such trade or business were carried on 
exclusively by employees, the major portion of the services would 
constitute agricultural labor as defined in section 3121(g)--
        (i) in the case of an individual, if the gross income derived by 
    him from such trade or business is not more than $2,400, the net 
    earnings from self-employment derived by him from such trade or 
    business may, at his option, be deemed to be 66\2/3\ percent of such 
    gross income; or
        (ii) in the case of an individual, if the gross income derived 
    by him from such trade or business is more than $2,400 and the net 
    earnings from self-employment derived by him from such trade or 
    business (computed under this subsection without regard to this 
    sentence) are less than $1,600, the net earnings from self-
    employment derived by him from such trade or business may, at his 
    option, be deemed to be $1,600; and
        (iii) in the case of a member of a partnership, if his 
    distributive share of the gross income of the partnership derived 
    from such trade or business (after such gross income has been 
    reduced by the sum of all payments to which section 707(c) applies) 
    is not more than $2,400, his distributive share of income described 
    in section 702(a)(8) derived from such trade or business may, at his 
    option, be deemed to be an amount equal to 66\2/3\ 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 such trade or business (after such gross income has been 
    reduced by the sum of all payments to which section 707(c) applies) 
    is more than $2,400 and his distributive share (whether or not 
    distributed) of income described in section 702(a)(8) derived from 
    such trade or business (computed under this subsection without 
    regard to this sentence) is less than $1,600, his distributive share 
    of income described in section 702(a)(8) derived from such trade or 
    business may, at his option, be deemed to be $1,600.

For purposes of the preceding sentence, gross income means--
        (v) in the case of any such trade or business in which the 
    income is computed under a cash receipts and disbursements method, 
    the gross receipts from such trade or business reduced by the cost 
    or other basis of property which was purchased and sold in carrying 
    on such trade or business, adjusted (after such reduction) in 
    accordance with the provisions of paragraphs (1) through (7) and 
    paragraph (9) of this subsection; and
        (vi) in the case of any such trade or business in which the 
    income is computed under an accrual method, the gross income from 
    such trade or business, adjusted in accordance with the provisions 
    of paragraphs (1) through (7) and paragraph (9) 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 such trade or 
business, such gross income (including his distributive share of the 
gross income of any partnership derived from any such trade or business) 
shall be deemed to have been derived from one trade or business.
    The preceding sentence and clauses (i) through (iv) of the second 
preceding sentence shall also apply in the case of any trade or business 
(other than a trade 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 (h), or by a partnership of which 
an individual is a member on a regular basis as defined in subsection 
(h), but only if such individual's net earnings from self-employment as 
determined without regard to this sentence in the taxable year are less 
than $1,600 and less than 66\2/3\ 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 years in the case of any individual, and in no case in 
which an individual elects to determine the amount of his net earnings 
from self-employment for a taxable year under the provisions of the two 
preceding sentences with respect to a trade or business to which the 
second preceding sentence applies and with respect to a trade or 
business to which this sentence applies shall such net earnings for such 
year exceed $1,600.

(b) Self-employment income

    The term ``self-employment income'' means the net earnings from 
self-employment derived by an individual (other than a nonresident alien 
individual, except as provided by an agreement under section 233 of the 
Social Security Act) during any taxable year; except that such term 
shall not include--
        (1) in the case of the tax imposed by section 1401(a), that part 
    of the net earnings from self-employment which is in excess of (i) 
    an amount equal to the contribution and benefit base (as determined 
    under section 230 of the Social Security Act) which is effective for 
    the calendar year in which such taxable year begins, minus (ii) the 
    amount of the wages paid to such individual during such taxable 
    years; or
        (2) the net earnings from self-employment, if such net earnings 
    for the taxable year are less than $400.

For purposes of paragraph (1), the term ``wages'' (A) includes such 
remuneration paid to an employee for services included under an 
agreement entered into pursuant to the provisions of section 3121(l) 
(relating to coverage of citizens of the United States who are employees 
of foreign affiliates of American employers), as would be wages under 
section 3121(a) if such services constituted employment under section 
3121(b), and (B) includes compensation which is subject to the tax 
imposed by section 3201 or 3211,.\1\ An individual who is not a citizen 
of the United States but who is a resident of the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, or American Samoa shall not, for 
purposes of this chapter be considered to be a nonresident alien 
individual. In the case of church employee income, the special rules of 
subsection (j)(2) shall apply for purposes of paragraph (2).
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    \1\ So in original.
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(c) Trade or business

    The term ``trade or business'', when used with reference to self-
employment income or net earnings from self-employment, shall have the 
same meaning as when used in section 162 (relating to trade or business 
expenses), 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 a State 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 such State and the Commissioner of Social 
    Security pursuant to section 218 of the Social Security Act;
        (2) the performance of service by an individual as an employee, 
    other than--
            (A) service described in section 3121(b)(14)(B) performed by 
        an individual who has attained the age of 18,
            (B) service described in section 3121(b)(16),
            (C) service described in section 3121(b)(11), (12), or (15) 
        performed in the United States (as defined in section 
        3121(e)(2)) by a citizen of the United States, except service 
        which constitutes ``employment'' under section 3121(y),
            (D) service described in paragraph (4) of this subsection,
            (E) service performed by an individual as an employee of a 
        State or 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 State and the Commissioner of 
        Social Security pursuant to section 218 of the Social Security 
        Act,
            (F) service described in section 3121(b) (20), and
            (G) service described in section 3121(b)(8)(B);

        (3) the performance of service by an individual as an employee 
    or employee representative as defined in section 3231;
        (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 subsection (g) 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 subsection (e) is effective with respect to 
him.

(d) Employee and wages

    The term ``employee'' and the term ``wages'' shall have the same 
meaning as when used in chapter 21 (sec. 3101 and following, relating to 
Federal Insurance Contributions Act).

(e) Ministers, members of religious orders, and Christian Science 
        practitioners

                            (1) Exemption

        Subject to paragraph (2), any individual who is (A) a duly 
    ordained, commissioned, or licensed minister of a church or a member 
    of a religious order (other than a member of a religious order who 
    has taken a vow of poverty as a member of such order) or (B) a 
    Christian Science practitioner, upon filing an application (in such 
    form and manner, and with such official, as may be prescribed by 
    regulations made under this chapter) together with a statement that 
    either he is conscientiously opposed to, or because of religious 
    principles he is opposed to, the acceptance (with respect to 
    services performed by him as such minister, member, or practitioner) 
    of any public insurance which makes payments in the event of death, 
    disability, old age, or retirement or makes payments toward the cost 
    of, or provides services for, medical care (including the benefits 
    of any insurance system established by the Social Security Act) and, 
    in the case of an individual described in subparagraph (A), that he 
    has informed the ordaining, commissioning, or licensing body of the 
    church or order that he is opposed to such insurance, shall receive 
    an exemption from the tax imposed by this chapter with respect to 
    services performed by him as such minister, member, or practitioner. 
    Notwithstanding the preceding sentence, an exemption may not be 
    granted to an individual under this subsection if he had filed an 
    effective waiver certificate under this section as it was in effect 
    before its amendment in 1967.

                   (2) Verification of application

        The Secretary may approve an application for an exemption filed 
    pursuant to paragraph (1) only if the Secretary has verified that 
    the individual applying for the exemption is aware of the grounds on 
    which the individual may receive an exemption pursuant to this 
    subsection and that the individual seeks exemption on such grounds. 
    The Secretary (or the Commissioner of Social Security under an 
    agreement with the Secretary) shall make such verification by such 
    means as prescribed in regulations.

                   (3) Time for filing application

        Any individual who desires to file an application pursuant to 
    paragraph (1) must file such application on or before whichever of 
    the following dates is later: (A) the due date of the return 
    (including any extension thereof) for the second taxable year for 
    which he has net earnings from self-employment (computed without 
    regard to subsections (c)(4) and (c)(5)) of $400 or more, any part 
    of which was derived from the performance of service described in 
    subsection (c)(4) or (c)(5); or (B) the due date of the return 
    (including any extension thereof) for his second taxable year ending 
    after 1967.

                   (4) Effective date of exemption

        An exemption received by an individual pursuant to this 
    subsection shall be effective for the first taxable year for which 
    he has net earnings from self-employment (computed without regard to 
    subsections (c)(4) and (c)(5)) of $400 or more, any part of which 
    was derived from the performance of service described in subsection 
    (c)(4) or (c)(5), and for all succeeding taxable years. An exemption 
    received pursuant to this subsection shall be irrevocable.

(f) Partner's taxable year ending as the result of death

    In computing a partner's net earnings from self-employment for his 
taxable year which ends as a result of his death (but only if such 
taxable year ends within, and not with, the taxable year of the 
partnership), there shall be included so much of the deceased partner's 
distributive share of the partnership's ordinary income or loss for the 
partnership taxable year as 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 partner died. 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 partnership 
    taxable year; and
        (2) the term ``deceased partner's distributive share'' includes 
    the share of his estate or of any other person succeeding, by reason 
    of his death, to rights with respect to his partnership interest.

(g) Members of certain religious faiths

                            (1) Exemption

        Any individual may file an application (in such form and manner, 
    and with such official, as may be prescribed by regulations under 
    this chapter) for an exemption from the tax imposed by this chapter 
    if he is a member of a recognized religious sect or division thereof 
    and is an adherent of established tenets or teachings of such sect 
    or division by reason of which he is conscientiously opposed to 
    acceptance of the benefits of any private or public insurance which 
    makes payments in the event of death, disability, old-age, or 
    retirement or makes payments toward the cost of, or provides 
    services for, medical care (including the benefits of any insurance 
    system established by the Social Security Act). Such exemption may 
    be granted only if the application contains or is accompanied by--
            (A) such evidence of such individual's membership in, and 
        adherence to the tenets or teachings of, the sect or division 
        thereof as the Secretary may require for purposes of determining 
        such individual's compliance with the preceding sentence, and
            (B) his waiver of all benefits and other payments under 
        titles II and XVIII of the Social Security Act on the basis of 
        his wages and self-employment income as well as all such 
        benefits and other payments to him on the basis of the wages and 
        self-employment income of any other person,

    and only if the Commissioner of Social Security finds that--
            (C) such sect or division thereof has the established tenets 
        or teachings referred to in the preceding sentence,
            (D) it is the practice, and has been for a period of time 
        which he deems to be substantial, for members of such sect or 
        division thereof to make provision for their dependent members 
        which in his judgment is reasonable in view of their general 
        level of living, and
            (E) such sect or division thereof has been in existence at 
        all times since December 31, 1950.

    An exemption may not be granted to any individual if any benefit or 
    other payment referred to in subparagraph (B) became payable (or, 
    but for section 203 or 222(b) of the Social Security Act, would have 
    become payable) at or before the time of the filing of such waiver.

              (2) Period for which exemption effective

        An exemption granted to any individual pursuant to this 
    subsection shall apply with respect to all taxable years beginning 
    after December 31, 1950, except that such exemption shall not apply 
    for any taxable year--
            (A) beginning (i) before the taxable year in which such 
        individual first met the requirements of the first sentence of 
        paragraph (1), or (ii) before the time as of which the 
        Commissioner of Social Security finds that the sect or division 
        thereof of which such individual is a member met the 
        requirements of subparagraphs (C) and (D), or
            (B) ending (i) after the time such individual ceases to meet 
        the requirements of the first sentence of paragraph (1), or (ii) 
        after the time as of which the Commissioner of Social Security 
        finds that the sect or division thereof of which he is a member 
        ceases to meet the requirements of subparagraph (C) or (D).

         (3) Subsection to apply to certain church employees

        This subsection shall apply with respect to services which are 
    described in subparagraph (B) of section 3121(b)(8) (and are not 
    described in subparagraph (A) of such section).

(h) Regular basis

    An individual shall be deemed to be self-employed on a regular basis 
in a taxable year, or to be a member of a partnership on a regular basis 
in such year, if he had net 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 years immediately preceding such 
taxable year from trades or businesses carried on by such individual or 
such partnership.

(i) Special rules for options and commodities dealers

                           (1) In general

        Notwithstanding subsection (a)(3)(A), in determining the net 
    earnings from self-employment of any options dealer or commodities 
    dealer, there shall not be excluded any gain or loss (in the normal 
    course of the taxpayer's activity of dealing in or trading section 
    1256 contracts) from section 1256 contracts or property related to 
    such contracts.

                           (2) Definitions

        For purposes of this subsection--

        (A) Options dealer

            The term ``options dealer'' has the meaning given such term 
        by section 1256(g)(8).

        (B) Commodities dealer

            The term ``commodities dealer'' means a person who is 
        actively engaged in trading section 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) Section 1256 contracts

            The term ``section 1256 contract'' has the meaning given to 
        such term by section 1256(b).

(j) Special rules for certain church employee income

                   (1) Computation of net earnings

        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) Computation of self-employment income

        (A) Separate application of subsection (b)(2)

            Paragraph (2) of subsection (b) shall be applied 
        separately--
                (i) to church employee income, and
                (ii) to other net earnings from self-employment.

        (B) $100 floor

            In applying paragraph (2) of subsection (b) to church 
        employee income, ``$100'' shall be substituted for ``$400''.

              (3) Coordination with subsection (a)(12)

        Paragraph (1) shall not apply to any amount allowable as a 
    deduction under subsection (a)(12), and paragraph (1) shall be 
    applied before determining the amount so allowable.

                 (4) Church employee income defined

        For purposes of this section, the term ``church employee 
    income'' means gross income for services which are described in 
    section 3121(b)(8)(B) (and are not described in section 
    3121(b)(8)(A)).

(k) Codification of treatment of certain termination payments received 
        by former insurance salesmen

    Nothing in subsection (a) shall be construed as including in the net 
earnings from self-employment of an individual any amount received 
during the taxable year from 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 such taxable 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).

(Aug. 16, 1954, ch. 736, 68A Stat. 353; Sept. 1, 1954, ch. 1206, title 
II, Sec. 201(a)-(c), 68 Stat. 1087; Aug. 1, 1956, ch. 836, title II, 
Sec. 201(e)(2), (3), (f), (g), (i), 70 Stat. 840-842; Pub. L. 85-239, 
Secs. 1(a), (b), 2, 5(b), Aug. 30, 1957, 71 Stat. 521-523; Pub. L. 85-
840, title IV, Secs. 402(a), 403(a), Aug. 28, 1958, 72 Stat. 1042, 1043; 
Pub. L. 86-778, title I, Secs. 101(a)-(c), 103(k), (l), 105(c)(1), 
106(b), Sept. 13, 1960, 74 Stat. 926, 927, 938, 944, 945; Pub. L. 87-64, 
title II, Sec. 202(a), June 30, 1961, 75 Stat. 141; Pub. L. 88-272, 
title II, Sec. 227(b)(6), Feb. 26, 1964, 78 Stat. 98; Pub. L. 88-650, 
Sec. 2(a), (b), Oct. 13, 1964, 78 Stat. 1076, 1077; Pub. L. 89-97, title 
III, Secs. 311(b)(1)-(3), 312(b), 319(a), (c), 320(b)(1), 331(a), 
341(a), (b), July 30, 1965, 79 Stat. 381, 390, 391, 393, 401, 411; Pub. 
L. 89-368, title I, Sec. 102(c), Mar. 15, 1966, 80 Stat. 64; Pub. L. 90-
248, title I, Secs. 108(b)(1), 115(b), 118(a), 122(b), title V, 
Secs. 501(a), 502(b)(1), Jan. 2, 1968, 81 Stat. 835, 839, 841, 843, 933, 
934; Pub. L. 92-5, title II, Sec. 203(b)(1), Mar. 17, 1971, 85 Stat. 10; 
Pub. L. 92-336, title II, Sec. 203(b)(1), July 1, 1972, 86 Stat. 418; 
Pub. L. 92-603, title I, Secs. 121(b), 124(b), 140(b), Oct. 30, 1972, 86 
Stat. 1353, 1357, 1366; Pub. L. 93-66, title II, Sec. 203(b)(1), July 9, 
1973, 87 Stat. 153; Pub. L. 93-233, Sec. 5(b)(1), Dec. 31, 1973, 87 
Stat. 954; Pub. L. 93-368, Sec. 10(b), Aug. 7, 1974, 88 Stat. 422; Pub. 
L. 94-92, title II, Sec. 203(a), Aug. 9, 1975, 89 Stat. 465; Pub. L. 94-
455, title XII, Sec. 1207(e)(1)(B), title XIX, Secs. 1901(a)(155), 
(b)(1)(I)(iii), (X), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1707, 1789, 
1791, 1792, 1834; Pub. L. 95-216, title III, Sec. 313(b), Dec. 20, 1977, 
91 Stat. 1536; Pub. L. 95-600, title VII, Sec. 703(j)(8), Nov. 6, 1978, 
92 Stat. 2941; Pub. L. 95-615, Sec. 202(g)(5), formerly Sec. 202(f)(5), 
Nov. 8, 1978, 92 Stat. 3100, renumbered Sec. 202(g)(5), Pub. L. 96-222, 
title I, Sec. 108(a)(1)(A), Apr. 1, 1980, 94 Stat. 223; Pub. L. 97-34, 
title I, Sec. 111(b)(3), (5), Aug. 13, 1981, 95 Stat. 194; Pub. L. 97-
248, title II, Sec. 278(a)(2), Sept. 3, 1982, 96 Stat. 559; Pub. L. 98-
21, title I, Sec. 124(c)(2), title III, Secs. 321(e)(3), 322(b)(2), 
323(b)(1), Apr. 20, 1983, 97 Stat. 90, 120, 121; Pub. L. 98-369, div. A, 
title I, Sec. 102(c)(1), div. B, title VI, Secs. 2603(c)(2), (d)(2), 
2663(j)(5)(B), July 18, 1984, 98 Stat. 622, 1129, 1130, 1171; Pub. L. 
99-272, title XIII, Sec. 13205(a)(2)(B), Apr. 7, 1986, 100 Stat. 315; 
Pub. L. 99-509, title IX, Sec. 9002(b)(1)(B), Oct. 21, 1986, 100 Stat. 
1971; Pub. L. 99-514, title III, Sec. 301(b)(12), title XII, 
Sec. 1272(d)(8), (9), title XVII, Sec. 1704(a)(1), (2), title XVIII, 
Secs. 1882(a), (b)(1), 1883(a)(11)(A), Oct. 22, 1986, 100 Stat. 2218, 
2594, 2779, 2914, 2916; Pub. L. 100-203, title IX, Sec. 9022(b), Dec. 
22, 1987, 101 Stat. 1330-295; Pub. L. 100-647, title III, 
Sec. 3043(c)(1), title VIII, Sec. 8007(c), Nov. 10, 1988, 102 Stat. 
3642, 3783; Pub. L. 101-239, title X, Sec. 10204(a)(1), Dec. 19, 1989, 
103 Stat. 2474; Pub. L. 101-508, title V, Secs. 5123(a)(3), 5130(a)(2), 
title XI, Sec. 11331(b), Nov. 5, 1990, 104 Stat. 1388-284, 1388-289, 
1388-467; Pub. L. 103-66, title XIII, Sec. 13207(b), Aug. 10, 1993, 107 
Stat. 468; Pub. L. 103-296, title I, Sec. 108(h)(1), title III, 
Sec. 319(a)(4), Aug. 15, 1994, 108 Stat. 1487, 1534; Pub. L. 104-188, 
title I, Sec. 1456(a), Aug. 20, 1996, 110 Stat. 1818; Pub. L. 105-34, 
title IX, Sec. 922(a), Aug. 5, 1997, 111 Stat. 879.)

                       References in Text

    The Social Security Act, referred to in subsecs. (b), (c)(1), 
(2)(E), (e)(1), and (g)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, 
as amended, which is classified generally to chapter 7 (Sec. 301 et 
seq.) of Title 42, The Public Health and Welfare. Titles II and XVIII of 
the Act are classified generally to subchapters II (Sec. 401 et seq.) 
and XVIII (Sec. 1395 et seq.) of Title 42. Sections 203, 218, 222, 230, 
and 233 of the Act are classified to sections 403, 418, 422, 430, and 
433, respectively, of Title 42. For complete classification of this Act 
to the Code, see section 1305 of Title 42 and Tables.
    The Federal Insurance Contributions Act, referred to in subsec. (d), 
is act Aug. 16, 1954, ch. 736, 68A Stat. 415, as amended, which is 
classified generally to chapter 21 (Sec. 3101 et seq.) of this title. 
For complete classification of this Act to the Code, see section 3128 of 
this title and Tables.


                               Amendments

    1997--Subsec. (k). Pub. L. 105-34 added subsec. (k).
    1996--Subsec. (a)(8). Pub. L. 104-188 inserted before semicolon at 
end ``, but shall not include in such net earnings from self-employment 
the rental value of any parsonage or any parsonage allowance (whether or 
not excludable under section 107) provided after the individual retires, 
or any other retirement benefit received by such individual from a 
church plan (as defined in section 414(e)) after the individual 
retires''.
    1994--Subsec. (c)(1). Pub. L. 103-296, Sec. 108(h)(1), substituted 
``Commissioner of Social Security'' for ``Secretary of Health and Human 
Services''.
    Subsec. (c)(2)(C). Pub. L. 103-296, Sec. 319(a)(4), inserted at end 
``except service which constitutes `employment' under section 
3121(y),''.
    Subsecs. (c)(2)(E), (e)(2), (g)(1), (2)(A), (B). Pub. L. 103-296, 
Sec. 108(h)(1), substituted ``Commissioner of Social Security'' for 
``Secretary of Health and Human Services''.
    1993--Subsec. (b). Pub. L. 103-66, Sec. 13207(b)(1)(C), (D), in 
concluding provisions, inserted ``and'' after ``section 3121(b),'' and 
struck out ``and (C) includes, but only with respect to the tax imposed 
by section 1401(b), remuneration paid for medicare qualified government 
employment (as defined in section 3121(u)(3)) which is subject to the 
taxes imposed by sections 3101(b) and 3111(b)'' after ``section 3201 or 
3211,''.
    Subsec. (b)(1). Pub. L. 103-66, Sec. 13207(b)(1)(A), (B), 
substituted ``in the case of the tax imposed by section 1401(a), that 
part of the net'' for ``that part of the net'' and ``contribution and 
benefit base (as determined under section 230 of the Social Security 
Act)'' for ``applicable contribution base (as determined under 
subsection (k))''.
    Subsec. (k). Pub. L. 103-66, Sec. 13207(b)(2), struck out subsec. 
(k) which defined parameters of the applicable contribution base under 
this chapter.
    1990--Subsec. (a). Pub. L. 101-508, Sec. 5123(a)(3), struck out last 
undesignated par. which read as follows: ``Any income of an individual 
which results from or is attributable to the performance of services by 
such individual as a director of a corporation during any taxable year 
shall be deemed to have been derived (and received) by such individual 
in that year, at the time the services were performed, regardless of 
when the income is actually paid to or received by such individual 
(unless it was actually paid and received prior to that year).''
    Subsec. (b). Pub. L. 101-508, Sec. 5130(a)(2), amended directory 
language of Pub. L. 98-21, Sec. 322(b)(2). See 1983 Amendment note 
below.
    Subsec. (b)(1)(i). Pub. L. 101-508, Sec. 11331(b)(1), substituted 
``the applicable contribution base (as determined under subsection 
(k))'' for ``the contribution and benefit base (as determined under 
section 230 of the Social Security Act)''.
    Subsec. (k). Pub. L. 101-508, Sec. 11331(b)(2), added subsec. (k).
    1989--Subsec. (g)(3). Pub. L. 101-239 substituted ``to apply'' for 
``not to apply'' in heading and ``shall apply'' for ``shall not apply'' 
in text.
    1988--Subsec. (a)(15). Pub. L. 100-647, Sec. 3043(c)(1), added par. 
(15).
    Subsec. (g)(2) to (5). Pub. L. 100-647, Sec. 8007(c), struck out 
par. (2) which related to time for filing applications, struck out par. 
(4) which related to application by fiduciaries or survivors, and 
redesignated pars. (3) and (5) as (2) and (3), respectively.
    1987--Subsec. (a). Pub. L. 100-203 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.
    1986--Subsec. (a)(8). Pub. L. 99-514, Sec. 1272(d)(8), inserted 
``and'' after ``of the employer),'' and struck out ``and section 931 
(relating to income from sources within possessions of the United 
States)'' after ``living abroad)''.
    Subsec. (a)(9). Pub. L. 99-514, Sec. 1272(d)(9), amended par. (9) 
generally. Prior to amendment, par. (9) read as follows: ``the term 
`possession of the United States' as used in sections 931 (relating to 
income from sources within possessions of the United States) and 932 
(relating to citizens of possessions of the United States) shall be 
deemed not to include the Virgin Islands, Guam, or American Samoa;''.
    Subsec. (a)(14). Pub. L. 99-514, Sec. 1882(b)(1)(B)(i), amended par. 
(14) generally. Prior to amendment, par. (14) read as follows: ``with 
respect to remuneration for services which are treated as services in a 
trade or business under subsection (c)(2)(G)--
        ``(A) no deduction for trade or business expenses provided under 
    this Code (other than the deduction under paragraph (12)) shall 
    apply;
        ``(B) the provisions of subsection (b)(2) shall not apply; and
        ``(C) if the amount of such remuneration from an employer for 
    the taxable year is less than $100, such remuneration from that 
    employer shall not be included in self-employment income.''
    Subsec. (b). Pub. L. 99-514, Sec. 1882(b)(1)(B)(ii), (iii), 
substituted ``paragraph'' for ``clause'' in second sentence and inserted 
at end ``In the case of church employee income, the special rules of 
subsection (j)(2) shall apply for purposes of paragraph (2).''
    Pub. L. 99-509 struck out ``under an agreement entered into pursuant 
to the provisions of section 218 of the Social Security Act (relating to 
coverage of State employees), or'' after ``services included'' in second 
sentence.
    Pub. L. 99-272 substituted ``medicare qualified government 
employment (as defined in section 3121(u)(3))'' for ``medicare qualified 
Federal employment (as defined in section 3121(u)(2))''.
    Subsec. (c)(2)(G). Pub. L. 99-514, Sec. 1883(a)(11)(A), realigned 
margin of subpar. (G).
    Subsec. (e)(1). Pub. L. 99-514, Sec. 1704(a)(1), (2)(A), substituted 
``Subject to paragraph (2), any individual'' for ``Any individual'' and 
inserted ``and, in the case of an individual described in subparagraph 
(A), that he has informed the ordaining, commissioning, or licensing 
body of the church or order that he is opposed to such insurance''.
    Subsec. (e)(2) to (4). Pub. L. 99-514, Sec. 1704(a)(2)(B), (C), 
added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), 
respectively.
    Subsec. (g)(5). Pub. L. 99-514, Sec. 1882(a), added par. (5).
    Subsec. (i)(1). Pub. L. 99-514, Sec. 301(b)(12), amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``In 
determining the net earnings from self-employment of any options dealer 
or commodities 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 trading section 1256 contracts) from 
    section 1256 contracts or property related to such contracts, and
        ``(B) the deduction provided by section 1202 shall not apply.''
    Subsec. (j). Pub. L. 99-514, Sec. 1882(b)(1)(A), added subsec. (j).
    1984--Subsec. (a)(14). Pub. L. 98-369, Sec. 2603(d)(2), added par. 
(14).
    Subsec. (c)(1), (2)(E). Pub. L. 98-369, Sec. 2663(j)(5)(B), 
substituted ``Secretary of Health and Human Services'' for ``Secretary 
of Health, Education, and Welfare''.
    Subsec. (c)(2)(G). Pub. L. 98-369, Sec. 2603(c)(2), added subpar. 
(G).
    Subsec. (g)(1), (3)(A), (B). Pub. L. 98-369, Sec. 2663(j)(5)(B), 
substituted ``Secretary of Health and Human Services'' for ``Secretary 
of Health, Education, and Welfare''.
    Subsec. (i). Pub. L. 98-369, Sec. 102(c)(1), added subsec. (i).
    1983--Subsec. (a)(11). Pub. L. 98-21, Sec. 323(b)(1), struck out 
``in the case of an individual described in section 911(d)(1)(B),'' 
before ``the exclusion''.
    Subsec. (a)(12), (13). Pub. L. 98-21, Sec. 124(c)(2), added par. 
(12) and redesignated former par. (12) as (13).
    Subsec. (b). Pub. L. 98-21, Sec. 322(b)(2), as amended by Pub. L. 
101-508, Sec. 5130(a)(2), inserted ``, except as provided by an 
agreement under section 233 of the Social Security Act'' in text 
preceding par. (1).
    Pub. L. 98-21, Sec. 321(e)(3), substituted ``employees of foreign 
affiliates of American employers'' for ``employees of foreign 
subsidiaries of domestic corporations'' in cl. (A) of provisions 
following par. (2).
    1982--Subsec. (b). Pub. L. 97-248 struck out ``and'' before ``(B)'' 
and inserted ``, and (C) includes, but only with respect to the tax 
imposed by section 1401(b), remuneration paid for medicare qualified 
Federal employment (as defined in section 3121(u)(2)) which is subject 
to the taxes imposed by sections 3101(b) and 3111(b)''.
    1981--Subsec. (a)(8). Pub. L. 97-34, Sec. 111(b)(3), substituted 
``relating to citizens or residents of the United States living abroad'' 
for ``relating to income earned by employees in certain camps''.
    Subsec. (a)(11). Pub. L. 97-34, Sec. 111(b)(5), substituted ``in the 
case of an individual described in section 911(d)(1)(B), the exclusion 
from gross income provided by section 911(a)(1) shall not apply'' for 
``in the case of an individual who has been a resident of the United 
States during the entire taxable year, the exclusion from gross income 
provided by section 911(a)(2) shall not apply''.
    1978--Subsec. (a). Pub. L. 95-615 substituted ``(relating to income 
earned by employees in certain camps)'' for ``(relating to earned income 
from sources without the United States)'' in par. (8).
    Pub. L. 95-600, Sec. 703(j)(8)(A), substituted ``subsection (h)'' 
for ``subsection (i)'' wherever appearing in last par.
    Subsec. (c)(6). Pub. L. 95-600, Sec. 703(j)(8)(B), substituted 
``subsection (g)'' for ``subsection (h)''.
    1977--Subsec. (a)(12). Pub. L. 95-216 added par. (12).
    1976--Subsec. (a). Pub. L. 94-455, Secs. 1901(b)(1) (I)(iii), (X), 
1906(b)(13)(A), substituted, in provisions preceding par. (1) and in two 
places in cl. (iv) of provisions extending the application of provisions 
relating to agricultural labor to trade or business carried on by 
individuals, self-employed or in partnership, ``section 702(a)(8)'' for 
``section 702(a)(9)'' and struck out in par. (2) ``(other than interest 
described in section 35)'' after ``unless such dividends and interest'' 
and in par. (10) ``or his delegate'' after ``Secretary''.
    Subsec. (b)(1). Pub. L. 94-455, Sec. 1901(a)(155)(A), among other 
changes, struck out provisions spelling out fixed Social Security 
contributions and benefit base limits on wages paid during taxable years 
between 1955 through 1974.
    Subsec. (c)(2)(F). Pub. L. 94-455, Sec. 1207(e)(1)(B), added subpar. 
(F).
    Subsec. (g). Pub. L. 94-455, Secs. 1901(a)(155)(B), (C), 
1906(b)(13)(A), redesignated subsec. (h) as (g), and as so redesignated, 
struck out in par. (1)(A) ``or his delegate'' after ``Secretary'' and in 
par. (2) provisions relating to individuals who have self-employment 
income for taxable years ending before Dec. 31, 1967, on or before Dec. 
31, 1968, and substituted in par. (2) reference to for which the 
individual has self-employment income (determined without regard to this 
subsection or subsection (c)(6)) for reference to ending on or after 
Dec. 31, 1967 for which he has self-employment income (as so 
determined). Former subsec. (g), which related to treatment of certain 
remunerations erroneously reported as net earnings from self-employment, 
was struck out.
    Subsecs. (h), (i). Pub. L. 94-455, Sec. 1901(a)(155)(B), 
redesignated subsec. (i) as (h). Former subsec. (h) redesignated (g).
    1975--Subsec. (b). Pub. L. 94-92 struck out from item B of second 
sentence the limitation of ``wages'' to include ``compensation'' solely 
with respect to the tax imposed by section 1401(b).
    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)(8), (11). Pub. L. 92-603, Secs. 121(b)(1), 124(b), 
140(b), in par. (8), struck out limitation under which provisions 
authorizing the computation of net earnings without regard to sections 
911 and 931 were limited to citizens of the United States performing 
religious service as employees of an American employer or as ministers 
in a foreign country having a congregation predominantly of citizens of 
the United States, added par. (11), and extended the application of 
provisions relating to agricultural labor to trade or business carried 
on by individuals, self-employed or in partnership, with certain 
exceptions.
    Subsec. (b)(1)(F). Pub. L. 92-336, Sec. 203(b)(1)(A), inserted ``and 
before 1973'' after ``1971''.
    Subsec. (b)(1)(G) to (I). Pub. L. 92-336, Sec. 203(b)(1)(B), added 
subpars. (G) to (I).
    Subsec. (i). Pub. L. 92-603, Sec. 121(b)(2), added subsec. (i).
    1971--Subsec. (b)(1)(E). Pub. L. 92-5, Sec. 203(b)(1)(A), inserted 
``and beginning before 1972'' after ``1967'' and substituted ``; and'' 
for ``; or''.
    Subsec. (b)(1)(F). Pub. L. 92-5, Sec. 203(b)(1)(B), added subpar. 
(F).
    1968--Subsec. (a)(10). Pub. L. 90-248, Sec. 118(a), added par. (10).
    Subsec. (b). Pub. L. 90-248, Sec. 502(b)(1), designated existing 
provisions of second sentence respecting ``wages'' as item ``A'' and 
added item ``B''.
    Subsec. (b)(1)(D). Pub. L. 90-248, Sec. 108(b)(1)(A), inserted ``and 
before 1968'' after ``1965''.
    Subsec. (b)(1)(E). Pub. L. 90-248, Sec. 108(b)(1)(B), added subpar. 
(E).
    Subsec. (c). Pub. L. 90-248, Sec. 115(b)(1), substituted ``such 
order) performed by an individual unless an exemption under subsection 
(e) is effective with respect to him'' for ``such order performed by an 
individual during the period for which a certificate filed by him under 
subsection (e) is in effect'' in last sentence.
    Subsec. (c)(1). Pub. L. 90-248, Sec. 122(b)(1), excepted from 
exclusion from definition of ``trade or business'' the functions of a 
public office of a State or a political division 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 by such State and the 
Secretary pursuant to section 218 of the Social Security Act [section 
418 of Title 42, The Public Health and Welfare].
    Subsec. (c)(2)(E). Pub. L. 90-248, Sec. 122(b)(2), added subpar. 
(E).
    Subsec. (e). Pub. L. 90-248, Sec. 115(b)(2), substituted provisions 
allowing clergymen, members of religious orders who have not taken a vow 
of poverty, and Christian Science practitioners to secure an exemption 
from social security self-employment tax upon meeting requirements of 
pars. (1) to (3) respecting such exemption, time for filing application, 
and effective date of exemption for provisions of former pars. (1) to 
(5) permitting such persons to secure social security coverage by filing 
a waiver certificate, prescribing time for filing certificate, effective 
date of certificate treatment of certain remuneration paid in 1955 and 
1956 as wages, and optional provision for certain certificates filed on 
or before April 15, 1967.
    Subsec. (h)(2). Pub. L. 90-248, Sec. 501(a), substituted ``December 
31, 1967'' and ``December 31, 1968'' for ``December 31, 1965'' and 
``April 15, 1966'', respectively, in subpar. (A) and ``December 31, 
1967'' for ``December 31, 1965'' in subpar. (B) and inserted in such 
subpar. (B) exception provision as to when an application shall be 
deemed timely filed.
    1966--Subsec. (e)(3)(E). Pub. L. 89-368 added subpar. (E).
    1965--Subsec. (a). Pub. L. 89-97, Sec. 312(b), 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. (9), wherever appearing.
    Subsec. (b)(1)(C). Pub. L. 89-97, Sec. 320(b)(1)(C), inserted ``and 
before 1966'' after ``1958'' and substituted ``and'' for ``or'' after 
the semicolon.
    Subsec. (b)(1)(D). Pub. L. 89-97, Sec. 320(b)(1)(B), added subpar. 
(D).
    Subsec. (c). Pub. L. 89-97, Secs. 311(b)(1), (2), 319(a), struck out 
from par. (5) ``doctor of medicine, or'' before and ``; or the 
performance of such service by a partnership'' after ``Christian Science 
practitioner,'' added par. (6), and consolidated into one sentence 
former last two sentences.
    Subsec. (e)(1). Pub. L. 89-97, Sec. 311(b)(3)(A), substituted 
``extended to service described in subsection (c)(4) or (c)(5) performed 
by him'' for ``extended to service described in subsection (c)(4), or 
service described in subsection (c)(5) insofar as it relates to the 
performance of service by an individual in the exercise of his 
profession as a Christian Science practitioner, as the case may be 
performed by him''.
    Subsec. (e)(2)(A). Pub. L. 89-97, Sec. 311(b)(3)(B), substituted 
``(computed without regard to subsections (c)(4) and (c)(5) of $400 or 
more, any part of which was derived from the performance of service 
described in subsection (c)(4) or (c)(5)'' for ``(computed, in the case 
of an individual referred to in paragraph (1)(A), without regard to 
subsection (c)(4), and, in the case of an individual referred to in 
paragraph (1)(B), without regard to subsection (c)(5) insofar as it 
relates to the performance of service by an individual in the exercise 
of his profession as a Christian Science practitioner) of $400 or more, 
any part of which was derived from the performance of service described 
in subsection (c)(4), or from the performance of service described in 
subsection (c)(5) insofar as it relates to the performance of service by 
an individual in the exercise of his profession as a Christian Science 
practitioner, as the case may be''.
    Subsec. (e)(2)(B). Pub. L. 89-97, Sec. 341(a), substituted ``his 
second taxable year ending after 1963'' for ``his second taxable year 
ending after 1962''.
    Subsec. (e)(3)(D). Pub. L. 89-97, Sec. 341(b), added subpar. (D).
    Subsec. (e)(5). Pub. L. 89-97, Sec. 331(a), extended applicability 
of section to earnings in taxable years beyond those ending before 1960, 
extended until April 15, 1966, the last date for filing a certificate by 
an individual and until Apr. 15, 1967, the last date for filing a 
supplemental certificate by an individual, provided for filing of the 
certificate on or before Apr. 15, 1967, if the individual died on or 
before April 15, 1966, and extended to Apr. 15, 1967, the date on or 
before which the tax under section 1401 had been paid, or the 
overpayment, including interest under section 6611, had been repaid.
    Subsec. (e)(6). Pub. L. 89-97, Sec. 331(a), struck out par. (6) 
which dealt with filing of certificates by fiduciaries or survivors on 
or before April 15, 1962.
    Subsec. (h). Pub. L. 89-97, Sec. 319(c), added subsec. (h).
    1964--Subsec. (a)(3)(B). Pub. L. 88-272 inserted reference to iron 
ore.
    Subsec. (e)(2)(B). Pub. L. 88-650, Sec. 2(a), substituted ``his 
second taxable year ending after 1962'' for ``his second taxable year 
ending after 1959''.
    Subsec. (e)(3)(C). Pub. L. 88-650, Sec. 2(b), added subpar. (C).
    1961--Subsec. (e)(6). Pub. L. 87-64 added par. (6).
    1960--Subsec. (a). Pub. L. 86-778, Sec. 103(k), added par. (9) and 
inserted references to paragraph (9) in cls. (v) and (vi) of last 
sentence.
    Subsec. (b). Pub. L. 86-778, Sec. 103(l), substituted ``the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American 
Samoa'' for ``the Virgin Islands or a resident of Puerto Rico'' in last 
sentence.
    Subsec. (c)(2). Pub. L. 86-778, Sec. 106(b), excluded service 
described in section 3121(b)(11), (12), or (15) performed in the United 
States (as defined in section 3121(e)(2)) by a citizen of the United 
States.
    Subsec. (e)(2)(B). Pub. L. 86-778, Sec. 101(a), substituted ``1959'' 
for ``1956''.
    Subsec. (e)(3). Pub. L. 86-778, Sec. 101(b), designated existing 
provisions as cl. (A), struck out provisions which related to 
certificates for prior taxable years which have now become inapplicable, 
and added cl. (B).
    Subsec. (e)(5). Pub. L. 86-778, Sec. 101(c), added par. (5).
    Subsec. (g). Pub. L. 86-778, Sec. 105(c)(1), added subsec. (g).
    1958--Subsec. (b)(1). Pub. L. 85-840, Sec. 402(a), increased 
limitation on self-employment income subject to tax, for taxable years 
ending after 1958, from $4,200 to $4,800.
    Subsec. (f). Pub. L. 85-840, Sec. 403(a), added subsec. (f).
    1957--Subsec. (a)(8). Pub. L. 85-239, Sec. 5(b), permitted 
computation of net earnings without regard to sections 107 and 119 of 
this title.
    Subsec. (e)(2). Pub. L. 85-239, Sec. 1(a), permitted a person to 
file a certificate on or before the due date of the return (including 
any extension thereof) for his second taxable year ending after 1956.
    Subsec. (e)(3). Pub. L. 85-239, Sec. 1(b), provided for the 
effective date of certificates filed after August 30, 1957, but on or 
before the due date of the return (including any extension thereof) for 
the second taxable year ending after 1956, for certificates filed on or 
before August 30, 1957, which are effective only for the third or fourth 
taxable year ending after 1954 and all succeeding taxable years, and for 
certificates filed after the due date of the return (including any 
extension thereof) for the second taxable year ending after 1956.
    Subsec. (e)(4). Pub. L. 85-239, Sec. 2, added par. (4).
    1956--Subsec. (a). Act Aug. 1, 1956, Sec. 201(i), amended generally 
last two sentences 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 
66\2/3\ 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). Act Aug. 1, 1956, Sec. 201(e)(2), struck out from 
the exclusion income derived by an owner or tenant of 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)(8)(B). Act Aug. 1, 1956, Sec. 201(g), included citizens 
of the United States who are ministers in foreign countries and have 
congregations composed predominantly of citizens of the United States.
    Subsec. (c)(2). Act Aug. 1, 1956, Sec. 201(e)(3), included within 
``trade or business'' service described in section 3121(b)(16) of this 
title.
    Subsec. (c)(5). Act Aug. 1, 1956, Sec. 201(f), struck out exclusion 
of lawyers, dentists, osteopaths, veterinarians, chiropractors, 
naturopaths, and optometrists.
    1954--Subsec. (a). Act Sept. 1, 1954, Sec. 201(a), (c)(4), in par. 
(1) clarified the term rentals to indicate that it includes rentals paid 
in the form of crop shares, struck out par. (2), redesignated pars. (3) 
to (8) as (2) to (7), respectively, added a new par. (8), and inserted 
provisions at end establishing an optional method of reporting income 
for self-employed farmers.
    Subsec. (b). Act Sept. 1, 1954, Sec. 201(b), increased the 
limitation on self-employment income subject to tax, for taxable years 
ending after 1954, from $3,600 to $4,200 and included as ``wages'', for 
purposes of computing ``self-employment income,'' remuneration of United 
States citizens employed by a foreign subsidiary of a domestic 
corporation which has agreed to have the Social Security insurance 
system extended to service performed by such citizens.
    Subsec. (c). Act Sept. 1, 1954, Sec. 201(c)(2), inserted two 
sentences at end making the provisions of par. (4) inapplicable to 
service performed during the period for which a certificate filed under 
subsec. (e) is in effect.
    Subsec. (c)(2). Act Sept. 1, 1954, Sec. 201(c)(1), inserted ``and 
other than service described in paragraph (4) of this subsection'' after 
``18''.
    Subsec. (c)(5). Act Sept. 1, 1954, Sec. 201(c)(5), struck out 
exclusions from self-employment tax in the case of architects, certified 
public accountants, accountants registered or licensed as accountants 
under State or municipal law, full-time practicing public accountants, 
funeral directors and professional engineers.
    Subsec. (e). Act Sept. 1, 1954, Sec. 201(c)(3), added subsec. (e).


                    Effective Date of 1997 Amendment

    Section 922(c) of Pub. L. 105-34 provided that: ``The amendments 
made by this section [amending this section and section 411 of Title 42, 
The Public Health and Welfare] shall apply to payments after December 
31, 1997.''


                    Effective Date of 1996 Amendment

    Section 1456(b) of Pub. L. 104-188 provided that: ``The amendments 
made by this section [amending this section] shall apply to years 
beginning before, on, or after December 31, 1994.''


                    Effective Date of 1994 Amendment

    Amendment by section 108(h)(1) of Pub. L. 103-296 effective Mar. 31, 
1995, see section 110(a) of Pub. L. 103-296, set out as a note under 
section 401 of Title 42, The Public Health and Welfare.
    Section 319(c) of Pub. L. 103-296 provided that: ``The amendments 
made by this section [amending this section, sections 3102, 3121, and 
3122 of this title, and sections 410 and 411 of Title 42, The Public 
Health and Welfare] shall apply with respect to service performed after 
the calendar quarter following the calendar quarter in which the date of 
the enactment of this Act [Aug. 15, 1994] occurs.''


                    Effective Date of 1993 Amendment

    Section 13207(e) of Pub. L. 103-66 provided that: ``The amendments 
made by this section [amending this section and sections 3121, 3122, 
3125, 3231, and 6413 of this title] shall apply to 1994 and later 
calendar years.''


                    Effective Date of 1990 Amendment

    Amendment by section 5123(a)(3) of Pub. L. 101-508 applicable with 
respect to income received for services performed in taxable years 
beginning after Dec. 31, 1990, see section 5123(b) of Pub. L. 101-508, 
set out as a note under section 403 of Title 42, The Public Health and 
Welfare.
    Section 5130(b) of Pub. L. 101-508 provided that: ``The amendments 
made by subsection (a) [amending this section, section 3509 of this 
title, and sections 408, 409, and 411 of Title 42] shall be effective as 
if included in the enactment of the provision to which it relates.''
    Section 11331(e) of Pub. L. 101-508 provided that: ``The amendments 
made by this section [amending this section and sections 3121, 3122, 
3125, 3231, and 6413 of this title] shall apply to 1991 and later 
calendar years.''


                    Effective Date of 1989 Amendment

    Section 10204(a)(2) of Pub. L. 101-239 provided that: ``The 
amendments made by paragraph (1) [amending this section] shall apply 
with respect to taxable years beginning after December 31, 1989.''


                    Effective Date of 1988 Amendment

    Amendment by section 3043(c)(1) of Pub. L. 100-647 applicable to all 
periods beginning before, on, or after Nov. 10, 1988, with no inference 
created as to existence or nonexistence or scope of any exemption from 
tax for income derived from fishing rights secured as of Mar. 17, 1988, 
by any treaty, law, or Executive Order, see section 3044 of Pub. L. 100-
647, set out as an Effective Date note under section 7873 of this title.
    Section 8007(d) of Pub. L. 100-647 provided that: ``The amendments 
made by subsection (a) [enacting section 3127 of this title and 
renumbering former section 3127 of this title as section 3128] shall 
apply to wages paid after December 31, 1988. The amendments made by 
subsection (b) [amending section 402 of Title 42, The Public Health and 
Welfare] shall apply to benefits paid for (and items and services 
furnished in) months after December 1988. The amendments made by 
subsection (c) [amending this section] shall apply to applications for 
exemptions filed on or after the date of the enactment of this Act [Nov. 
10, 1988].''


                    Effective Date of 1987 Amendment

    Section 9022(c) of Pub. L. 100-203 provided that: ``The amendments 
made by this section [amending this section and section 411 of Title 42, 
The Public Health and Welfare] shall apply with respect to services 
performed in taxable years beginning on or after January 1, 1988.''


                    Effective Date of 1986 Amendments

    Amendment by section 301(b)(12) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 301(c) of Pub. 
L. 99-514, set out as a note under section 62 of this title.
    Amendment by section 1272(d)(8), (9) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, with certain exceptions and 
qualifications, see section 1277 of Pub. L. 99-514, set out as a note 
under section 931 of this title.
    Section 1704(a)(3) of Pub. L. 99-514 provided that: ``The amendments 
made by paragraphs (1) and (2) [amending this section] shall apply to 
applications filed after December 31, 1986.''
    Section 1882(b)(3) of Pub. L. 99-514 provided that: ``The amendments 
made by this subsection [amending this section and section 411 of Title 
42, The Public Health and Welfare] shall apply to remuneration paid or 
derived in taxable years beginning after December 31, 1985.''
    Amendment by Pub. L. 99-509 effective, except as otherwise provided, 
with respect to payments due with respect to wages paid after Dec. 31, 
1986, including wages paid after such date by a State (or political 
subdivision thereof) that modified its agreement pursuant to section 
418(e)(2) of Title 42, The Public Health and Welfare, see section 
9002(d) of Pub. L. 99-509, set out as a note under section 418 of Title 
42.
    Amendment by Pub. L. 99-272 applicable to services performed after 
Mar. 31, 1986, see section 13205(d)(1) of Pub. L. 99-272, set out as a 
note under section 3121 of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 102(c)(1) of Pub. L. 98-369 applicable to 
taxable years beginning after July 18, 1984, except as otherwise 
provided, see section 102(f)(3), (g) of Pub. L. 98-369, set out as a 
note under section 1256 of this title.
    Amendment by section 2603(c)(2) of Pub. L. 98-369 applicable to 
service performed after Dec. 31, 1983, see section 2603(e) of Pub. L. 
98-369, set out as a note under section 410 of Title 42, The Public 
Health and Welfare.
    Amendment by section 2663(j)(5)(B) of Pub. L. 98-369 effective July 
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, see section 2664(b) of Pub. L. 98-
369, set out as a note under section 401 of Title 42.


                    Effective Date of 1983 Amendment

    Amendment by section 124(c)(2) of Pub. L. 98-21 applicable to 
taxable years beginning after Dec. 31, 1989, see section 124(d)(2) of 
Pub. L. 98-21, set out as a note under section 1401 of this title.
    Amendment by section 321(e)(3) of Pub. L. 98-21 applicable to 
agreements entered into after Apr. 20, 1983, except that at the election 
of any American employer such amendment shall also apply to any 
agreement entered into on or before Apr. 20, 1983, see section 321(f) of 
Pub. L. 98-21 set out as a note under section 406 of this title.
    Amendment by section 322(b)(2) of Pub. L. 98-21 effective for 
taxable years beginning on or after Apr. 20, 1983, see section 322(c) of 
Pub. L. 98-21 set out as a note under section 3121 of this title.
    Section 323(c)(2) of Pub. L. 98-21 provided that: ``Except as 
provided in subsection (b)(2)(B) [amending section 411 of Title 42, The 
Public Health and Welfare, effective with respect to taxable years 
beginning after Dec. 31, 1981, and before Jan. 1, 1984], the amendments 
made by subsection (b) [amending this section and section 411 of Title 
42] shall apply to taxable years beginning after December 31, 1983.''


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-248 applicable to remuneration paid after 
Dec. 31, 1982, see section 278(c)(1) of Pub. L. 97-248, set out as a 
note under section 3121 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable with respect to taxable years 
beginning after Dec. 31, 1981, see section 115 of Pub. L. 97-34, set out 
as a note under section 911 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-600 effective 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

    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 an Effective Date of 1978 
Amendment note under section 911 of this title.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-216 applicable with respect to taxable years 
beginning after Dec. 31, 1977, see section 313(c) of Pub. L. 95-216, set 
out as a note under section 411 of Title 42, The Public Health and 
Welfare.


                    Effective Date of 1976 Amendment

    Amendment by section 1207(e)(1)(B) of Pub. L. 94-455 applicable to 
taxable years ending after Dec. 31, 1971, see section 1207(f)(4) of Pub. 
L. 94-455, set out as a note under section 3121 of this title.
    Amendment by section 1901(a)(155), (b)(1)(I)(iii), (X) of Pub. L. 
94-455 effective for 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 1975 Amendment

    Section 203(c) of Pub. L. 94-92 provided that: ``The amendments made 
by this section [amending this section and section 3231 of this title] 
shall be effective January 1, 1975, and shall apply only with respect to 
compensation paid for services rendered on or after that date.''


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-368 applicable with respect to taxable years 
beginning after Dec. 31, 1973, see section 10(c) of Pub. L. 93-368, set 
out as a note under section 411 of Title 42, The Public Health and 
Welfare.


                    Effective Date of 1973 Amendments

    Amendment by Pub. L. 93-233 applicable only with respect to 
remuneration paid after, and taxable years beginning after, 1973, see 
section 5(e) of Pub. L. 93-233, set out as a note under section 409 of 
Title 42, The Public Health and Welfare.
    Amendment by Pub. L. 93-66 applicable only with respect to 
remuneration paid after, and taxable years beginning after, 1973, see 
section 203(e) of Pub. L. 93-66, set out as a note under section 409 of 
Title 42.


                    Effective Date of 1972 Amendments

    Amendment by Pub. L. 92-603 applicable with respect to taxable years 
beginning after Dec. 31, 1972, see sections 121(c), 124(c), and 140(c) 
of Pub. L. 92-603, set out as notes under section 411 of Title 42, The 
Public Health and Welfare.
    Amendment by Pub. L. 92-336 applicable only with respect to taxable 
years beginning after 1972, see section 203(c) of Pub. L. 92-336, set 
out as a note under section 409 of Title 42.


                    Effective Date of 1971 Amendment

    Amendment by Pub. L. 92-5 applicable only with respect to taxable 
years beginning after 1971, see section 203(c) of Pub. L. 92-5, set out 
as a note under section 409 of Title 42, The Public Health and Welfare.


                    Effective Date of 1968 Amendment

    Amendment by section 108(b)(1) of Pub. L. 90-248 applicable only 
with respect to taxable years ending after 1967, see section 108(c) of 
Pub. L. 90-248, set out as a note under section 409 of Title 42, The 
Public Health and Welfare.
    Section 115(c) of Pub. L. 90-248 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section and section 411 
of Title 42] shall apply only with respect to taxable years ending after 
1967.''
    Section 118(c) of Pub. L. 90-248 provided that: ``The amendments 
made by this section [amending this section and section 411 of Title 42] 
shall apply only with respect to taxable years ending on or after 
December 31, 1967.''
    Section 122(c) of Pub. L. 90-248 provided that:
    ``(1) The amendments made by subsections (a) and (b) of this section 
[amending this section and section 411 of Title 42] shall apply with 
respect to fees received after 1967.
    ``(2) Notwithstanding the provisions of subsections (a) and (b) of 
this section [amending this section and section 411 of Title 42], any 
individual who in 1968 is in a position to which the amendments made by 
such subsections apply may make an irrevocable election not to have such 
amendments apply to the fees he receives in 1968 and every year 
thereafter, if on or before the due date of his income tax return for 
1968 (including any extensions thereof) he files with the Secretary of 
the Treasury or his delegate, in such manner as the Secretary of the 
Treasury or his delegate shall by regulations prescribe, a certificate 
of election of exemption from such amendments.''
    Section 501(b) of Pub. L. 90-248, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to taxable years beginning after December 31, 1950. For such purpose, 
chapter 2 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
shall be treated as applying to all taxable years beginning after such 
date.''
    Section 502(b)(2) of Pub. L. 90-248 provided that: ``The amendments 
made by paragraph (1) [amending this section] shall be effective only 
with respect to taxable years ending on or after December 31, 1968.''


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-368 applicable with respect to taxable years 
beginning after December 31, 1966, see section 102(d) of Pub. L. 89-368, 
set out as a note under section 6654 of this title.


                    Effective Date of 1965 Amendment

    Amendment by section 311(b)(1)-(3) of Pub. L. 89-97 applicable only 
with respect to taxable years ending on or after Dec. 31, 1965, see 
section 311(c) of Pub. L. 89-97, set out as a note under section 410 of 
Title 42, The Public Health and Welfare.
    Amendment by section 312(b) of Pub. L. 89-97 applicable only with 
respect to taxable years beginning after Dec. 31, 1965, see section 
312(c) of Pub. L. 89-97, set out as a note under section 411 of Title 
42.
    Section 319(e) of Pub. L. 89-97, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by this section [amending this section and sections 402 and 411 of 
Title 42] shall apply with respect to taxable years beginning after 
December 31, 1950. For such purpose, chapter 2 of the Internal Revenue 
Code of 1986 [formerly I.R.C. 1954] shall be treated as applying to all 
taxable years beginning after such date.''
    Amendment by section 320(b)(1) of Pub. L. 89-97 applicable with 
respect to taxable years ending after 1965, see section 320(c) of Pub. 
L. 89-97, set out as a note under section 3121 of this title.
    Section 331(d) of Pub. L. 89-97, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by this section [amending this section] shall be applicable (except 
as otherwise specifically provided therein) only to certificates with 
respect to which supplemental certificates are filed pursuant to section 
1402(e)(5)(A) of such Code after the date of the enactment of this Act 
[July 30, 1965], and to certificates filed pursuant to section 
1402(e)(5)(B) after such date; except that no monthly benefits under 
title II of the Social Security Act [section 401 et seq. of Title 42] 
for the month in which this Act is enacted [July 1965] or any prior 
month shall be payable or increased by reason of such amendments, and no 
lump sum death payment under such title [section 401 et seq. of Title 
42] shall be payable or increased by reason of such amendments in the 
case of any individual who died prior to the date of the enactment of 
this Act [July 30, 1965]. The provisions of section 1402(e)(5) and (6) 
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] which were 
in effect before the date of enactment of this Act shall be applicable 
with respect to any certificate filed pursuant thereto before such date 
if a supplemental certificate is not filed with respect to such 
certificate as provided in this section.''
    Section 341(c) of Pub. L. 89-97, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by subsections (a) and (b) [amending this section] shall be 
applicable only with respect to certificates filed pursuant to section 
1402(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
after the date of the enactment of this Act [July 30, 1965]; except that 
no monthly benefits under title II of the Social Security Act [section 
401 et seq. of Title 42] for the month in which this Act is enacted 
[July 1965] or any prior month shall be payable or increased by reason 
of such amendments.''


                    Effective Date of 1964 Amendments

    Section 2(c) of Pub. L. 88-650, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by subsections (a) and (b) [amending this section] shall be 
applicable only with respect to certificates filed pursuant to section 
1402(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
after the date of the enactment of this Act [Oct. 13, 1964]; except that 
no monthly benefits under title II of the Social Security Act [section 
401 et seq. of Title 42, The Public Health and Welfare] for the month in 
which this Act [Oct. 1964] is enacted or any prior month shall be 
payable or increased by reason of such amendments.''
    Amendment by Pub. L. 88-272 applicable with respect to amounts 
received or accrued in taxable years beginning after Dec. 31, 1963, 
attributable to iron ore mined in such years, see section 227(c) of Pub. 
L. 88-272, set out as a note under section 272 of this title.


                    Effective Date of 1961 Amendment

    Section 202(b) of Pub. L. 87-64 provided that: ``The amendment made 
by subsection (a) [amending this section] shall take effect on the date 
of enactment of this Act [June 30, 1961]; except that no monthly 
benefits under title II of the Social Security Act [section 401 et seq. 
of Title 42, The Public Health and Welfare] for the month in which this 
Act is enacted or any prior month shall be payable or increased by 
reason of such amendment, and no lump-sum death payment under such title 
shall be payable or increased by reason of such amendment in the case of 
any individual who died prior to the date of enactment of this Act [June 
30, 1961].''


                    Effective Date of 1960 Amendment

    Section 101(f) of Pub. L. 86-778, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by this section [amending this section] shall be applicable (except 
as otherwise specifically indicated therein) only with respect to 
certificates (and supplemental certificates) filed pursuant to section 
1402(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
after the date of the enactment of this Act [Sept. 13, 1960]; except 
that no monthly benefits under title II of the Social Security Act 
[section 401 et seq. of Title 42, The Public Health and Welfare] for the 
month in which this Act is enacted or any prior month shall be payable 
or increased by reason of such amendments, and no lump-sum death payment 
under such title shall be payable or increased by reason of such 
amendments in the case of any individual who died prior to the date of 
the enactment of this Act [Sept. 13, 1960].''
    Amendment by section 103(k) of Pub. L. 86-778 applicable only in the 
case of taxable years beginning after 1960, except that, insofar as such 
enactment involves the nonapplication of section 932 of this title to 
the Virgin Islands for purposes of section 1401 et seq. of this title 
and section 411 of Title 42, such enactment shall be effective in the 
case of all taxable years with respect to which such chapter 2 (and 
corresponding provisions of prior law) and section 411 of Title 42 are 
applicable, see section 103(v)(1) of Pub. L. 86-778, set out as a note 
under section 402 of Title 42.
    Amendment by section 103(l) of Pub. L. 86-778 applicable only in the 
case of taxable years beginning after 1960, see section 103(v)(1) of 
Pub. L. 86-778, set out as a note under section 402 of Title 42.
    Amendment by section 106(b) of Pub. L. 86-778 applicable only with 
respect to taxable years ending on or after Dec. 31, 1960, see section 
106(c) of Pub. L. 86-778, set out as a note under section 411 of Title 
42.


                    Effective Date of 1958 Amendment

    Section 403(b) of Pub. L. 85-840, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) Except as provided in paragraph (2), the amendment made by 
subsection (a) [amending this section] shall apply only with respect to 
individuals who die after the date of the enactment of this Act [Aug. 
28, 1958].
    ``(2) In the case of an individual who died after 1955 and on or 
before the date of the enactment of this Act [Aug. 28, 1958], the 
amendment made by subsection (a) [amending this section] shall apply 
only if--
        ``(A) before January 1, 1960, there is filed a return (or 
    amended return) of the tax imposed by chapter 2 of the Internal 
    Revenue Code of 1986 [formerly I.R.C. 1954] [section 1401 et seq. of 
    this title] for the taxable year ending as a result of his death, 
    and
        ``(B) in any case where the return is filed solely for the 
    purpose of reporting net earnings from self-employment resulting 
    from the amendment made by subsection (a), the return is accompanied 
    by the amount of tax attributable to such net earnings.
In any case described in the preceding sentence, no interest or penalty 
shall be assessed or collected on the amount of any tax due under 
chapter 2 of such Code solely by reason of the operation of section 
1402(f) of such Code.''


                    Effective Date of 1957 Amendment

    Section 4 of Pub. L. 85-239, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) Section 3 [set out below], and the amendments made by the 
first section of this Act [amending this section], shall apply with 
respect to monthly insurance benefits under title II of the Social 
Security Act [section 401 et seq. of Title 42, The Public Health and 
Welfare], for months beginning after, and lump sum death payments under 
such title in the case of deaths occurring after, the date of the 
enactment of this Act [Aug. 30, 1957].
    ``(b) Notwithstanding subsection (a), in the case of any individual 
who--
        ``(1)(A) has remuneration which is deemed, by reason of section 
    3, to constitute remuneration for employment for purposes of title 
    II of the Social Security Act [section 401 et seq. of Title 42], or
        ``(B) has income which constitutes net earnings from self-
    employment under such title by reason of the filing of a certificate 
    pursuant to section 1402(e)(3)(A) or (B) of the Internal Revenue 
    Code of 1986 [formerly I.R.C. 1954], and
        ``(2) was entitled to monthly insurance benefits under title II 
    of the Social Security Act [section 401 et seq. of Title 42] for the 
    month in which this Act is enacted [August 1957],
section 3 [set out below] and the amendments made by the first section 
of this Act [amending this section] shall apply with respect to monthly 
insurance benefits under such title based on his wages and self-
employment income only if he, or any other person entitled to monthly 
insurance benefits under such title on the basis of such wages and self-
employment income, files, on or after the date of enactment of this Act 
[Aug. 30, 1957], an application for recomputation by reason of this Act. 
Such recomputation shall be made in the manner provided in title II of 
the Social Security Acts [section 401 et seq. of Title 42] as in effect 
at the time of the last previous computation or recomputation of such 
individual's primary insurance amount and as though the application 
therefor was filed in the month in which the application for such last 
previous computation or recomputation was filed. No recomputation under 
this subsection shall be regarded as a recomputation under section 
215(f) of the Social Security Act [section 415(f) of Title 42]. Any such 
recomputation shall be effective for and after the twelfth month before 
the month in which the application therefor is filed, but in no case for 
any month which begins on or prior to the date of the enactment of this 
Act. Any such recomputation shall be effective only if it results in a 
higher primary insurance amount.
    ``(c) The preceding provisions of this section shall not render 
erroneous any monthly insurance benefits under title II of the Social 
Security Act [section 401 et seq. of Title 42] for the month in which 
this Act [August 1957] is enacted or any prior month.''
    Section 5(c) of Pub. L. 85-239 provided that: ``The amendments made 
by this section [amending this section and section 411 of Title 42] 
shall, except for purposes of section 203 of the Social Security Act 
[section 403 of title 42], apply only with respect to taxable years 
ending on or after December 31, 1957. For purposes of section 203 of the 
Social Security Act [section 403 of Title 42] (other than subsection 
(a)), such amendments shall apply only with respect to taxable years 
beginning after the month in which this Act is enacted [August 1957]. 
For purposes of subsection (a) of such section 203, such amendments 
shall apply only with respect to taxable years of the insured individual 
ending on or after December 31, 1957.''


                    Effective Date of 1956 Amendment

    Amendment by section 201(e)(2), (f) of act Aug. 1, 1956, applicable 
with respect to taxable years ending after 1955, amendment by section 
201(i) of that act applicable with respect to taxable years ending on or 
after Dec. 31, 1956, amendment by section 201(e)(3) of that act 
applicable with respect to taxable years ending after 1954, and, except 
as provided in section 201(m)(2)(B) of that act, amendment by section 
201(g) of that act applicable only with respect to taxable years ending 
after 1956, see section 201(m) of act Aug. 1, 1956, set out as a under 
section 3121 of this title.


                    Effective Date of 1954 Amendment

    Section 201(d) of act Sept. 1, 1954, provided that: ``The amendments 
made by subsections (a), (b) and (c) of this section [amending this 
section] shall be applicable only with respect to taxable years ending 
after 1954.''


 Revocation by Members of the Clergy of Exemption From Social Security 
                                Coverage

    Pub. L. 106-170, title IV, Sec. 403, Dec. 17, 1999, 113 Stat. 1910, 
provided that:
    ``(a) In General.--Notwithstanding section 1402(e)(4) of the 
Internal Revenue Code of 1986, any exemption which has been received 
under section 1402(e)(1) of such Code by a duly ordained, commissioned, 
or licensed minister of a church, a member of a religious order, or a 
Christian Science practitioner, and which is effective for the taxable 
year in which this Act is enacted [enacted Dec. 17, 1999], may be 
revoked by filing an application therefor (in such form and manner, and 
with such official, as may be prescribed by the Commissioner of Internal 
Revenue), if such application is filed no later than the due date of the 
Federal income tax return (including any extension thereof) for the 
applicant's second taxable year beginning after December 31, 1999. Any 
such revocation shall be effective (for purposes of chapter 2 of the 
Internal Revenue Code of 1986 and title II of the Social Security Act 
(42 U.S.C. 401 et seq.)), as specified in the application, either with 
respect to the applicant's first taxable year beginning after December 
31, 1999, or with respect to the applicant's second taxable year 
beginning after such date, and for all succeeding taxable years; and the 
applicant for any such revocation may not thereafter again file 
application for an exemption under such section 1402(e)(1). If the 
application is filed after the due date of the applicant's Federal 
income tax return for a taxable year and is effective with respect to 
that taxable year, it shall include or be accompanied by payment in full 
of an amount equal to the total of the taxes that would have been 
imposed by section 1401 of the Internal Revenue Code of 1986 with 
respect to all of the applicant's income derived in that taxable year 
which would have constituted net earnings from self-employment for 
purposes of chapter 2 of such Code (notwithstanding paragraphs (4) and 
(5) of section 1402(c)) except for the exemption under section 
1402(e)(1) of such Code.
    ``(b) Effective Date.--Subsection (a) shall apply with respect to 
service performed (to the extent specified in such subsection) in 
taxable years beginning after December 31, 1999, and with respect to 
monthly insurance benefits payable under title II on the basis of the 
wages and self-employment income of any individual for months in or 
after the calendar year in which such individual's application for 
revocation (as described in such subsection) is effective (and lump-sum 
death payments payable under such title on the basis of such wages and 
self-employment income in the case of deaths occurring in or after such 
calendar year).''


 Limited Exemption for Canadian Ministers From Certain Self-Employment 
                              Tax Liability

    Section 306 of Pub. L. 103-296 provided that:
    ``(a) In General.--Notwithstanding any other provision of law, if--
        ``(1) an individual performed services described in section 
    1402(c)(4) of the Internal Revenue Code of 1986 which are subject to 
    tax under section 1401 of such Code,
        ``(2) such services were performed in Canada at a time when no 
    agreement between the United States and Canada pursuant to section 
    233 of the Social Security Act [42 U.S.C. 433] was in effect, and
        ``(3) such individual was required to pay contributions on the 
    earnings from such services under the social insurance system of 
    Canada,
then such individual may file a certificate under this section in such 
form and manner, and with such official, as may be prescribed in 
regulations issued under chapter 2 of such Code. Upon the filing of such 
certificate, notwithstanding any judgment which has been entered to the 
contrary, such individual shall be exempt from payment of such tax with 
respect to services described in paragraphs (1) and (2) and from any 
penalties or interest for failure to pay such tax or to file a self-
employment tax return as required under section 6017 of such Code.
    ``(b) Period for Filing.--A certificate referred to in subsection 
(a) may be filed only during the 180-day period commencing with the date 
on which the regulations referred to in subsection (a) are issued.
    ``(c) Taxable Years Affected by Certificate.--A certificate referred 
to in subsection (a) shall be effective for taxable years ending after 
December 31, 1978, and before January 1, 1985.
    ``(d) Restriction on Crediting of Exempt Self-Employment Income.--In 
any case in which an individual is exempt under this section from paying 
a tax imposed under section 1401 of the Internal Revenue Code of 1986, 
any income on which such tax would have been imposed but for such 
exemption shall not constitute self-employment income under section 
211(b) of the Social Security Act (42 U.S.C. 411(b)), and, if such 
individual's primary insurance amount has been determined under section 
215 of such Act (42 U.S.C. 415), notwithstanding section 215(f)(1) of 
such Act, the Secretary of Health and Human Services (prior to March 31, 
1995) or the Commissioner of Social Security (after March 30, 1995) 
shall recompute such primary insurance amount so as to take into account 
the provisions of this subsection. The recomputation under this 
subsection shall be effective with respect to benefits for months 
following approval of the certificate of exemption.''


           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 [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 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.


     Revocation of Exemption From Coverage by Clergymen; Procedure, 
                           Applicability, Etc.

    Section 1704(b) of Pub. L. 99-514 provided that:
    ``(1) In general.--Notwithstanding section 1402(e)(3) of the 
Internal Revenue Code of 1986, as redesignated by subsection (a)(2)(B) 
of this section, any exemption which has been received under section 
1402(e)(1) of such Code by a duly ordained, commissioned, or licensed 
minister of a church, a member of a religious order, or a Christian 
Science practitioner, and which is effective for the taxable year in 
which this Act is enacted [enacted Oct. 22, 1986], may be revoked by 
filing an application therefor (in such form and manner, and with such 
official, as may be prescribed in regulations made under chapter 2 of 
subtitle A of such Code), if such application is filed--
        ``(A) before the applicant becomes entitled to benefits under 
    section 202(a) or 223 of the Social Security Act [42 U.S.C. 402(a), 
    423] (without regard to section 202(j)(1) or 223(b) of such Act [42 
    U.S.C. 402(j)(1), 423(b)]), and
        ``(B) no later than the due date of the Federal income tax 
    return (including any extension thereof) for the applicant's first 
    taxable year beginning after the date of the enactment of this Act 
    [Oct. 22, 1986].
Any such revocation shall be effective (for purposes of chapter 2 of 
subtitle A of the Internal Revenue Code of 1986 and title II of the 
Social Security Act [42 U.S.C. 401 et seq.]), as specified in the 
application, either with respect to the applicant's first taxable year 
ending on or after the date of the enactment of this Act [Oct. 22, 1986] 
or with respect to the applicant's first taxable year beginning after 
such date, and for all succeeding taxable years; and the applicant for 
any such revocation may not thereafter again file application for an 
exemption under such section 1402(e)(1). If the application is filed on 
or after the due date of the Federal income tax return for the 
applicant's first taxable year ending on or after the date of the 
enactment of this Act [Oct. 22, 1986] and is effective with respect to 
that taxable year, it shall include or be accompanied by payment in full 
of an amount equal to the total of the taxes that would have been 
imposed by section 1401 of the Internal Revenue Code of 1986 with 
respect to all of the applicant's income derived in that taxable year 
which would have constituted net earnings from self-employment for 
purposes of chapter 2 of subtitle A of such Code (notwithstanding 
paragraph (4) or (5) of section 1402(c) of such Code) but for the 
exemption under section 1402(e)(1) of such Code.
    ``(2) Effective date.--Paragraph (1) of this subsection shall apply 
with respect to service performed (to the extent specified in such 
paragraph) in taxable years ending on or after the date of the enactment 
of this Act [Oct. 22, 1986] and with respect to monthly insurance 
benefits payable under title II of the Social Security Act [42 U.S.C. 
401 et seq.] on the basis of the wages and self-employment income of any 
individual for months in or after the calendar year in which such 
individual's application for revocation (as described in such paragraph) 
is effective (and lump-sum death payments payable under such title on 
the basis of such wages and self-employment income in the case of deaths 
occurring in or after such calendar year).''
    Section 316 of Pub. L. 95-216, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) Notwithstanding section 1402(e)(3) of the Internal Revenue 
Code of 1986 [formerly I.R.C. 1954], any exemption which has been 
received under section 1402(e)(1) of such Code, by a duly ordained, 
commissioned, or licensed minister of a church or a Christian Science 
practitioner, and which is effective for the taxable year in which this 
Act [Pub. L. 95-216, enacted Dec. 20, 1977] is enacted, may be revoked 
by filing an application therefor (in such form and manner, and with 
such official, as may be prescribed in regulations made under chapter 2 
of such Code [this chapter]), if such application is filed--
        ``(1) before the applicant becomes entitled to benefits under 
    section 202(a) or 223 of the Social Security Act [section 402(a) or 
    423 of Title 42, The Public Health and Welfare] (without regard to 
    section 202(j)(1) or 223(b) of such Act [section 402(j)(1) or 423(b) 
    of Title 42]), and
        ``(2) no later than the due date of the Federal income tax 
    return (including any extension thereof) for the applicant's first 
    taxable year beginning after the date of the enactment of this Act 
    [Dec. 20, 1977].
Any such revocation shall be effective (for purposes of chapter 2 of the 
Internal Revenue Code of 1986 [this chapter] and title II of the Social 
Security Act [section 401 et seq. of Title 42]), as specified in the 
application, either with respect to the applicant's first taxable year 
ending on or after the date of the enactment of this Act [Dec. 20, 1977] 
or with respect to the applicant's first taxable year beginning after 
such date, and for all succeeding taxable years; and the applicant for 
any such revocation may not thereafter again file application for an 
exemption under such section 1402(e)(1). If the application is filed on 
or after the due date of the applicant's first taxable year ending on or 
after the date of the enactment of this Act [Dec. 20, 1977] and is 
effective with respect to that taxable year, it shall include or be 
accompanied by payment in full of an amount equal to the total of the 
taxes that would have been imposed by section 1401 of the Internal 
Revenue Code of 1986 with respect to all of the applicant's income 
derived in that taxable year which would have constituted net earnings 
from self-employment for purposes of chapter 2 of such Code [this 
chapter] (notwithstanding section 1402(c)(4) or (c)(5) of such Code) 
except for the exemption under section 1402(e)(1) of such Code.
    ``(b) Subsection (a) shall apply with respect to service performed 
(to the extent specified in such subsection) in taxable years ending on 
or after the date of the enactment of this Act [Dec. 20, 1977], and with 
respect to monthly insurance benefits payable under title II of the 
Social Security Act [section 401 et seq. of Title 42] on the basis of 
the wages and self-employment income of any individual for months in or 
after the calendar year in which such individual's application for 
revocation (as described in such subsection) is filed (and lump-sum 
death payments payable under such title on the basis of such wages and 
self-employment income in the case of deaths occurring in or after such 
calendar year).''


   Election of Exemption of Fees From Coverages Self-Employment Income

    Section 122(c)(2) of Pub. L. 90-248 authorized any individual 
affected by the amendments made by Pub. L. 90-248 to subsecs. (c)(1), 
(2)(E) of this section and section 411(c)(1), (2)(E) of Title 42, The 
Public Health and Welfare, to make an irrevocable election not to have 
such amendments apply to fees received in 1968 and every year thereafter 
if he filed, on or before the due date of his income tax return for 
1968, with the Secretary of the Treasury, a certificate of election of 
exemption from such amendments.


  Time for Claim for Refund or Credit of Overpayment; Disallowance of 
                                Interest

    Section 501(c) of Pub. L. 90-248 authorized the payment of a refund 
or credit of any overpayment resulting from the amendment of subsec. 
(h)(2), relating to the filing of applications under this section, by 
section 501(a) of Pub. L. 90-248 if the claim therefore was filed on or 
before Dec. 31, 1968.


Refund or Credit on Claims for Overpayment Filed Before April 15, 1966, 
           by Members of Religious Groups Opposed to Insurance

    Section 319(f) of Pub. L. 89-97 authorized the payment of a refund 
or credit of any overpayment resulting from the amendments made to 
sections 402, 411, and 1402 of this title by Pub. L. 89-97, if the claim 
therefore is filed on or before Apr. 15, 1966.


 Computation of Interest or Assessment of Penalties on Self-Employment 
 Taxes Payable by Ministers, Members of Religious Orders, and Christian 
                          Science Practitioners

    Section 331(b) of Pub. L. 89-97 established, for purposes of 
computing interest, Apr. 15, 1967, as the due date for the payment, 
under section 1401 of this title, of taxes due for any taxable year 
ending before Jan. 1, 1966 solely by reason of the filing of a 
certificate or supplementary certificate under subsec. (e)(5) of this 
section, which was struck out by section 115(b)(2) of Pub. L. 90-248.


 Computation of Interest or Assessment of Penalties on Self-Employment 
 Taxes Payable by Ministers, Members of Religious Orders, and Christian 
                          Science Practitioners

    Section 101(d) of Pub. L. 86-778 established, for purposes of 
computing interest, Apr. 15, 1962, as the due date for the payment, 
under section 1401 of this title, of taxes due for any taxable year 
ending before 1959 solely by reason of the filing of a certificate or 
supplementary certificate under subsec. (e)(3)(B) or (5) of this 
section.
    Section 1(c) of Pub. L. 85-239 established the due date, for 
purposes of computing interest, for the payment of taxes, where a 
certificate had been filed under subsec. (e)(3)(A) or (B) of this 
section after the due date of a return for any taxable year.


     Remuneration Deemed Net Earnings From Self-Employment and not 
                       Remuneration for Employment

    Section 105(c)(2) of Pub. L. 86-778, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``Remuneration 
which is deemed under section 1402(g) of the Internal Revenue Code of 
1986 [formerly I.R.C. 1954] to constitute net earnings from self-
employment and not remuneration for employment shall also be deemed, for 
purposes of title II of the Social Security Act [section 401 et seq. of 
Title 42, The Public Health and Welfare], to constitute net earnings 
from self-employment and not remuneration for employment. If, pursuant 
to the last sentence of section 1402(g) of the Internal Revenue Code of 
1986, an individual is deemed to have become an employee of an 
organization (or to have become a member of a group) on the first day of 
a calendar quarter, such individual shall likewise be deemed, for 
purposes of clause (ii) or (iii) of section 210(a)(8)(B) of the Social 
Security Act [section 410(a)(18)(B)(ii), (iii) of Title 42], to have 
become an employee of such organization (or to have become a member of 
such group) on such day.''


    Remuneration Paid to Ministers, Members of Religious Orders, and 
Christian Science Practitioners in 1955 and 1956 Deemed Remuneration for 
           Employment for Purposes of Social Security Benefits

    Section 3 of Pub. L. 85-239, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that: ``Remuneration which is 
deemed under section 1402(e)(4) of the Internal Revenue Code of 1986 
[formerly I.R.C. 1954] to constitute remuneration for employment shall 
also be deemed, notwithstanding sections 210(a)(8)(A) and 211(c) of the 
Social Security Act [sections 410(a)(8)(A) and 411(c) of Title 42, The 
Public Health and Welfare], to constitute remuneration for employment 
(and not net earnings from self-employment) for purposes of title II of 
such Act [section 401 et seq. of Title 42].'' See section 4 of Pub. L. 
85-239, set out as an Effective Date of 1957 Amendment note above.


 Monthly Benefits and Lump-Sum Death Payments Under Social Security Act

    Section 105(d)(2) of Pub. L. 86-778, set out as an Effective Date of 
1960 Amendment note under section 3121 of this title, provided that no 
monthly benefits under title II of the Social Security Act [section 401 
et seq. of Title 42, The Public Health and Welfare], for September 1960 
or any prior month shall be payable or increased by reason of the 
provisions of subsections (b) and (c) of section 105 or the amendments 
made by such subsections [adding subsec. (g) to this section and 
enacting notes under this section and section 3121 of this title], and 
no lump-sum death payment under title II of the Social Security Act 
shall be payable or increased by reason of such provisions or amendments 
in the case of any individual who died prior to Sept. 13, 1960.

                  Section Referred to in Other Sections

    This section is referred to in sections 32, 162, 219, 401, 408, 475, 
879, 981, 2032A, 3121, 3127, 6103, 6521, 6654 of this title; title 42 
sections 401, 402, 411, 430.
