
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 107-16 Section 431(b)]
[Document affected by Public Law 107-16 Section 431(d)]
[CITE: 26USC62]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
   PART I--DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE 
                              INCOME, ETC.
 
Sec. 62. Adjusted gross income defined


(a) General rule

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

                  (1) Trade and business deductions

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

       (2) Certain trade and business deductions of employees

        (A) Reimbursed expenses of employees

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

        (B) Certain expenses of performing artists

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

        (C) Certain expenses of officials

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

            (3) Losses from sale or exchange of property

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

         (4) Deductions attributable to rents and royalties

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

         (5) Certain deductions of life tenants and income 
                          beneficiaries of property

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

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

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

                       (7) Retirement savings

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

     [(8) Repealed. Pub. L. 104-188, title I, Sec. 1401(b)(4), 
                       Aug. 20, 1996, 110 Stat. 1788]

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

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

                            (10) Alimony

        The deduction allowed by section 215.

                     (11) Reforestation expenses

        The deduction allowed by section 194.

          (12) Certain required repayments of supplemental 
                     unemployment compensation benefits

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

               (13) Jury duty pay remitted to employer

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

    (14) Deduction for clean-fuel vehicles and certain refueling 
                                  property

        The deduction allowed by section 179A.

                        (15) Moving expenses

        The deduction allowed by section 217.

                          (16) Archer MSAs

        The deduction allowed by section 220.

                  (17) Interest on education loans

        The deduction allowed by section 221.

Nothing in this section shall permit the same item to be deducted more 
than once.

(b) Qualified performing artist

                           (1) In general

        For purposes of subsection (a)(2)(B), the term ``qualified 
    performing artist'' means, with respect to any taxable year, any 
    individual if--
            (A) such individual performed services in the performing 
        arts as an employee during the taxable year for at least 2 
        employers,
            (B) the aggregate amount allowable as a deduction under 
        section 162 in connection with the performance of such services 
        exceeds 10 percent of such individual's gross income 
        attributable to the performance of such services, and
            (C) the adjusted gross income of such individual for the 
        taxable year (determined without regard to subsection (a)(2)(B)) 
        does not exceed $16,000.

             (2) Nominal employer not taken into account

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

                (3) Special rules for married couples

        (A) In general

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

        (B) Application of paragraph (1)

            In the case of a joint return--
                (i) paragraph (1) (other than subparagraph (C) thereof) 
            shall be applied separately with respect to each spouse, but
                (ii) paragraph (1)(C) shall be applied with respect to 
            their combined adjusted gross income.

        (C) Determination of marital status

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

        (D) Joint return

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

(c) Certain arrangements not treated as reimbursement arrangements

    For purposes of subsection (a)(2)(A), an arrangement shall in no 
event be treated as a reimbursement or other expense allowance 
arrangement if--
        (1) such arrangement does not require the employee to 
    substantiate the expenses covered by the arrangement to the person 
    providing the reimbursement, or
        (2) such arrangement provides the employee the right to retain 
    any amount in excess of the substantiated expenses covered under the 
    arrangement.

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

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


                               Amendments

    2000--Subsec. (a)(16). Pub. L. 106-554 amended heading and text of 
par. (16) generally. Prior to amendment, text read as follows: ``The 
deduction allowed by section 220.''
    1997--Subsec. (a)(2)(C). Pub. L. 105-34, Sec. 975(a), added subpar. 
(C).
    Subsec. (a)(17). Pub. L. 105-34, Sec. 202(b), added par. (17).
    1996--Subsec. (a)(8). Pub. L. 104-188 struck out par. (8) which read 
as follows: ``Certain portion of lump-sum distributions from pension 
plans taxed under section 402(d).--The deduction allowed by section 
402(d)(3).''
    Subsec. (a)(16). Pub. L. 104-191 added par. (16).
    1993--Subsec. (a)(15). Pub. L. 103-66 added par. (15).
    1992--Subsec. (a)(8). Pub. L. 102-318 substituted ``402(d)'' for 
``402(e)'' in heading and in text.
    Subsec. (a)(14). Pub. L. 102-486 added par. (14).
    1990--Subsec. (a)(13). Pub. L. 101-508, Sec. 11802(e)(1), amended 
par. (13) generally. Prior to amendment, par. (13) read as follows: 
``The deduction allowed by section 220.''
    1988--Subsec. (a)(2)(A). Pub. L. 100-647, Sec. 1001(b)(3)(A), 
inserted at end ``The fact that the reimbursement may be provided by a 
third party shall not be determinative of whether or not the preceding 
sentence applies.''
    Subsec. (a)(13). Pub. L. 100-647, Sec. 6007(b), added par. (13).
    Subsec. (c). Pub. L. 100-485 added subsec. (c).
    1986--Subsec. (a). Pub. L. 99-514, Sec. 132(b)(2)(A), designated 
existing provisions as subsec. (a) and added heading.
    Subsec. (a)(2). Pub. L. 99-514, Sec. 132(b)(1), amended par. (2) 
generally, substituting ``Certain trade'' for ``Trade'' in heading and 
inserting ``of employees'' in subpar. (A) heading, substituting 
provision relating to deduction of certain expenses of performing 
artists for provision relating to deduction of expenses for travel away 
from home in subpar. (B), and striking out subpar. (C) relating to 
deduction of travel expenses and subpar. (D) relating to deduction of 
expenses of outside salesmen.
    Subsec. (a)(3) to (5). Pub. L. 99-514, Sec. 301(b)(1), redesignated 
pars. (4) to (6) as (3) to (5), respectively, and struck out former par. 
(3) which related to long-term capital gains and read as follows: ``The 
deduction allowed by section 1202.''
    Subsec. (a)(6). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. 
(7) as (6). Former par. (6) redesignated (5).
    Pub. L. 99-514, Sec. 1875(c)(3), struck out ``to the extent 
attributable to contributions made on behalf of such individual'' after 
``section 404''.
    Subsec. (a)(7). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. 
(10) as (7). Former par. (7) redesignated (6).
    Subsec. (a)(8). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. 
(11) as (8). Former par. (8) struck out.
    Pub. L. 99-514, Sec. 132(c), struck out par. (8) which related to 
moving expense deduction and read as follows: ``The deduction allowed by 
section 217.''
    Subsec. (a)(9) to (15). Pub. L. 99-514, Sec. 301(b)(1), redesignated 
pars. (12) to (15) as (9) to (12), respectively. Former pars. (10) and 
(11) redesignated (7) and (8), respectively.
    Subsec. (a)(16). Pub. L. 99-514, Sec. 131(b)(1), struck out par. 
(16) which related to deduction for two-earner married couples and read 
as follows: ``The deduction allowed by section 221.''
    Subsec. (b). Pub. L. 99-514, Sec. 132(b)(2)(B), added subsec. (b).
    1984--Par. (7). Pub. L. 98-369, Sec. 491(d)(2), substituted ``and 
annuity'' for ``annuity, and bond purchase'' in heading, and substituted 
``the deduction allowed by section 404'' for ``the deductions allowed by 
section 404 and section 405(c)'' in text.
    1983--Par. (9). Pub. L. 97-354 repealed par. (9) relating to the 
deduction allowed by section 1379(b)(3).
    1981--Par. (10). Pub. L. 97-34, Sec. 311(h)(1), struck out ``and the 
deduction allowed by section 220 (relating to retirement savings for 
certain married individuals)'' after ``retirement savings''.
    Par. (14). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (15) as 
(14). Former par. (14), relating to deduction for certain expenses of 
living abroad, was struck out.
    Par. (15). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (16) as 
(15). Former par. (15) redesignated (14).
    Par. (16). Pub. L. 97-34, Secs. 103(b), 112(b)(2), added par. (16). 
Former par. (16) redesignated (15).
    1980--Par. (15). Pub. L. 96-451 added par. (15).
    Par. (16). Pub. L. 96-608 added par. (16).
    1978--Par. (14). Pub. L. 95-615 added par. (14).
    1976--Par. (10). Pub. L. 94-455, Sec. 1501(b)(1), inserted reference 
to the deduction allowed by section 220 (relating to retirement savings 
for certain married individuals).
    Pars. (11), (12). Pub. L. 94-455, Sec. 1901(a)(8), (9), redesignated 
par. (11) relating to penalties forfeited because of premature 
withdrawal of funds from time savings accounts or deposits, as par. 
(12), and substituted ``trade or business, to the extent'' for ``trade 
or business to the extent''.
    Par. (13). Pub. L. 94-455, Sec. 502(a), added par. (13).
    1974--Par. (10). Pub. L. 93-406, Sec. 2002(a)(2), added par. (10).
    Par. (11). Pub. L. 93-483 added par. (11) relating to penalties 
forfeited because of premature withdrawal of funds from time savings 
accounts or deposits. Another par. (11) relating to certain portions of 
lump-sum distributions from pension plans taxed under section 402(e) of 
this title, was added by Pub. L. 93-406, Sec. 2005(c)(9).
    1969--Par. (9). Pub. L. 91-172 added par. (9).
    1964--Par. (8). Pub. L. 88-272 added par. (8).
    1962--Par. (7). Pub. L. 87-792 added par. (7).


                    Effective Date of 1997 Amendment

    Section 202(e) of Pub. L. 105-34 provided that: ``The amendments 
made by this section [enacting section 221 of this title, amending this 
section and section 6050S of this title, and renumbering former section 
221 of this title as section 222 of this title] shall apply to any 
qualified education loan (as defined in section 221(e)(1) of the 
Internal Revenue Code of 1986, as added by this section) incurred on, 
before, or after the date of the enactment of this Act [Aug. 5, 1997], 
but only with respect to--
        ``(1) any loan interest payment due and paid after December 31, 
    1997, and
        ``(2) the portion of the 60-month period referred to in section 
    221(d) of the Internal Revenue Code of 1986 (as added by this 
    section) after December 31, 1997.''
    Section 975(b) of Pub. L. 105-34 provided that: ``The amendment made 
by this section [amending this section] shall apply to expenses paid or 
incurred in taxable years beginning after December 31, 1986.''


                    Effective Date of 1996 Amendments

    Section 301(j) of Pub. L. 104-191 provided that: ``The amendments 
made by this section [enacting sections 220 and 4980E of this title, 
amending this section and sections 106, 125, 848, 3231, 3306, 3401, 
4973, 4975, 6051, and 6693 of this title, and renumbering section 220 of 
this title as section 221] shall apply to taxable years beginning after 
December 31, 1996.''
    Amendment by Pub. L. 104-188 applicable to taxable years beginning 
after Dec. 31, 1999, with retention of certain transition rules, see 
section 1401(c) of Pub. L. 104-188, set out as a note under section 402 
of this title.


                    Effective Date of 1993 Amendment

    Section 13213(e) of Pub. L. 103-66 provided that: ``The amendments 
made by this section [amending this section and sections 67, 82, 132, 
217, 1001, 1016, and 4977 of this title] shall apply to expenses 
incurred after December 31, 1993; except that the amendments made by 
subsection (d) [amending sections 82, 132, and 4977 of this title] shall 
apply to reimbursements or other payments in respect of expenses 
incurred after such date.''


                    Effective Date of 1992 Amendments

    Amendment by Pub. L. 102-486 applicable to property placed in 
service after June 30, 1993, see section 1913(c) of Pub. L. 102-486, set 
out as an Effective Date note under section 30 of this title.
    Amendment by Pub. L. 102-318 applicable to distributions after Dec. 
31, 1992, see section 521(e) of Pub. L. 102-318, set out as a note under 
section 402 of this title.


                    Effective Date of 1988 Amendments

    Amendment by section 1001(b)(3)(A) of Pub. L. 100-647 effective, 
except as otherwise provided, as if included in the provision of the Tax 
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see 
section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of 
this title.
    Section 6007(d) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [enacting section 220 of this title, amending this 
section, and renumbering former section 220 of this title as section 221 
of this title] shall apply as if included in the amendments made by 
section 132 of the Tax Reform Act of 1986 [Pub. L. 99-514].''
    Section 702(b) of Pub. L. 100-485 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after December 31, 1988.''


                    Effective Date of 1986 Amendment

    Amendment by sections 131(b)(1) and 132(b), (c) of Pub. L. 99-514 
applicable to taxable years beginning after Dec. 31, 1986, see section 
151(a) of Pub. L. 99-514, set out as a note under section 1 of this 
title.
    Section 301(c) of Pub. L. 99-514 provided that: ``The amendments 
made by this section [amending this section and sections 170, 172, 219, 
220, 223, 642, 643, 691, 871, 1211, 1212, and 1402 of this title and 
repealing section 1202 of this title] shall apply to taxable years 
beginning after December 31, 1986.''
    Section 1875(c)(12) of Pub. L. 99-514 provided that: ``The 
amendments made by paragraphs (3), (4), and (6) [amending this section 
and sections 219 and 408 of this title] shall take effect as if included 
in the amendments made by section 238 of the Tax Equity and Fiscal 
Responsibility Act of 1982 [section 238 of Pub. L. 97-248, see section 
241 of Pub. L. 97-248, set out as an Effective Date note under section 
416 of this title].''


                    Effective Date of 1984 Amendment

    ``Section 491(f)(1) of Pub. L. 98-369 provided that: ``The 
amendments and repeals made by subsections (a), (b), and (d) [amending 
this section, sections 55, 72, 172, 219, 402, 403, 406, 407, 408, 412, 
414, 415, 457, 2039, 2517, 3121, 3306, 3401, 4972, 4973, 4975, 6047, 
6058, 6104, 6652, 7207, 7476, and 7701 of this title, section 3107 of 
Title 31, Money and Finance, and section 409 of Title 42, The Public 
Health and Welfare, and repealing sections 405 and 409 of this title] 
shall apply to obligations issued after December 31, 1983.''


                    Effective Date of 1983 Amendment

    Par. (9) as in effect before date of repeal by Pub. L. 97-354 to 
remain in effect for years beginning before Jan. 1, 1984, see section 
6(b)(1) of Pub. L. 97-354, set out as an Effective Date note under 
section 3761 of this title.


                    Effective Date of 1981 Amendment

    Section 103(d) of Pub. L. 97-34 provided that: ``The amendments made 
by this section [enacting section 219 of this title and amending this 
section and sections 85 and 105 of this title] shall apply to taxable 
years beginning after December 31, 1981.''
    Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97-34 
applicable to taxable years beginning after Dec. 31, 1981, see sections 
115 and 311(i)(1) of Pub. L. 97-34, set out as notes under sections 911 
and 219, respectively, of this title.


                    Effective Date of 1980 Amendments

    Section 3(b) of Pub. L. 96-608 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to repayments made 
in taxable years beginning after the date of the enactment of this Act 
[Dec. 28, 1980].''
    Amendment by Pub. L. 96-451 applicable with respect to additions to 
capital account made after Dec. 31, 1979, see section 301(d) of Pub. L. 
96-451, set out as an Effective Date note under section 194 of this 
title.


         Effective Date of 1978 Amendment; Election of Prior Law

    Amendment by Pub. L. 95-615 applicable to taxable years beginning 
after Dec. 31, 1977, with provision for election of prior law, see 
section 209 of Pub. L. 95-615, set out as a note under section 911 of 
this title.


                    Effective Date of 1976 Amendment

    Section 502(c) of Pub. L. 94-455 provided that: ``The amendments 
made by this section [amending this section and section 3402 of this 
title] shall apply to taxable years beginning after December 31, 1976.''
    Section 1501(d) of Pub. L. 94-455 provided that: ``The amendments 
made by this section [enacting section 220 of this title, amending this 
section and sections 219, 408, 409, 3401, 4973, and 6047 of this title, 
and renumbering former section 220 as 221 of this title], other than the 
amendment made by subsection (b)(3), shall apply to taxable years 
beginning after December 31, 1976. The amendment made by subsection 
(b)(3) [amending section 415 of this title] shall apply to years 
beginning after December 31, 1976.''
    Amendment by section 1901(a)(8), (9) of Pub. L. 94-455 applicable 
with respect to taxable years beginning after Dec. 31, 1976, see section 
1901(d) of Pub. L. 94-455, set out as a note under section 2 of this 
title.


                    Effective Date of 1974 Amendments

    Section 6(b) of Pub. L. 93-483 provided that: ``The amendment made 
by this section [amending this section] applies to taxable years 
beginning after December 31, 1972.''
    Amendment by section 2002(a)(2) of Pub. L. 93-406 applicable to 
taxable years beginning after Dec. 31, 1974, see section 2002(i)(1) of 
Pub. L. 93-406, set out as an Effective Date note under section 219 of 
this title.
    Amendment by section 2005(c)(9) of Pub. L. 93-406 applicable only 
with respect to distributions or payments made after Dec. 31, 1973, in 
taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. 
L. 93-406, set out as a note under section 402 of this title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 applicable with respect to taxable years 
of electing small business corporations beginning after Dec. 31, 1970, 
see section 531(d) of Pub. L. 91-172, set out as an Effective Date note 
under section 1379 of this title.


                    Effective Date of 1964 Amendment

    Section 213(d) of Pub. L. 88-272 provided that: ``The amendments 
made by subsections (a) [enacting section 217 and redesignating former 
section 217 as 218] and (b) [amending this section] shall apply to 
expenses incurred after December 31, 1963, in taxable years ending after 
such date. The amendment made by subsection (c) [amending section 3401 
of this title] shall apply with respect to remuneration paid after the 
seventh day following the date of the enactment of this Act [Feb. 26, 
1964].''


                    Effective Date of 1962 Amendment

    Amendment by Pub. L. 87-792 applicable to taxable years beginning 
after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note 
under section 22 of this title.


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.


           Plan Amendments Not Required Until January 1, 1998

    For provisions directing that if any amendments made by subtitle D 
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to 
any plan or annuity contract, such amendment shall not be required to be 
made before the first day of the first plan year beginning on or after 
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note 
under section 401 of this title.


           Plan Amendments Not Required Until January 1, 1994

    For provisions directing that if any amendments made by subtitle B 
[Secs. 521-523] of title V of Pub. L. 102-318 require an amendment to 
any plan, such plan amendment shall not be required to be made before 
the first plan year beginning on or after Jan. 1, 1994, see section 523 
of Pub. L. 102-318, set out as a note under section 401 of this title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [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.


                           Commuting Expenses

    Pub. L. 95-427, Sec. 2, Oct. 7, 1978, 92 Stat. 996, as amended by 
Pub. L. 96-167, Sec. 2, Dec. 29, 1979, 93 Stat. 1275, provided that with 
respect to transportation costs paid or incurred after December 31, 
1976, and on or before May 31, 1981, the application of sections 62, 
162, and 262 and of chapters 21, 23, and 24 of the Internal Revenue Code 
of 1954 [now 1986] to transportation expenses in traveling between a 
taxpayer's residence and place of work be determined without regard to 
Revenue Ruling 76-453 or any other regulation, ruling, or decision 
reaching the same or similar result, and with full regard to the rules 
in effect before that Revenue Ruling.
    Pub. L. 95-615, Sec. 2, Nov. 8, 1978, 92 Stat. 3097, provided that 
with respect to transportation costs paid or incurred after Dec. 31, 
1976, and before Apr. 30, 1978, the application of sections 62, 162, and 
262 and chapters 21, 23, and 24 of the Internal Revenue Code of 1954 
[now 1986] to transportation expenses in traveling between a taxpayer's 
residence and place of work be determined without regard to Revenue 
Ruling 76-453 or any other regulation, ruling or decision reaching the 
same or similar result, and with full regard to the rules in effect 
before that Revenue Ruling, and ceased to have effect on the day after 
Nov. 8, 1978 pursuant to section 210(a) of that Act.

                  Section Referred to in Other Sections

    This section is referred to in sections 162, 3402 of this title; 
title 20 section 1087e; title 21 section 849; title 42 section 1396o.
