
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-182 Section 2-4(a)]
[CITE: 42USC403]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
  SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE 
                                BENEFITS
 
Sec. 403. Reduction of insurance benefits


(a) Maximum benefits

    (1) In the case of an individual whose primary insurance amount has 
been computed or recomputed under section 415(a)(1) or (4) of this 
title, or section 415(d) of this title, as in effect after December 
1978, the total monthly benefits to which beneficiaries may be entitled 
under section 402 or 423 of this title for a month on the basis of the 
wages and self-employment income of such individual shall, except as 
provided by paragraphs (3) and (6) (but prior to any increases resulting 
from the application of paragraph (2)(A)(ii)(III) of section 415(i) of 
this title), be reduced as necessary so as not to exceed--
        (A) 150 percent of such individual's primary insurance amount to 
    the extent that it does not exceed the amount established with 
    respect to this subparagraph by paragraph (2),
        (B) 272 percent of such individual's primary insurance amount to 
    the extent that it exceeds the amount established with respect to 
    subparagraph (A) but does not exceed the amount established with 
    respect to this subparagraph by paragraph (2),
        (C) 134 percent of such individual's primary insurance amount to 
    the extent that it exceeds the amount established with respect to 
    subparagraph (B) but does not exceed the amount established with 
    respect to this subparagraph by paragraph (2), and
        (D) 175 percent of such individual's primary insurance amount to 
    the extent that it exceeds the amount established with respect to 
    subparagraph (C).

Any such amount that is not a multiple of $0.10 shall be decreased to 
the next lower multiple of $0.10.
    (2)(A) For individuals who initially become eligible for old-age or 
disability insurance benefits, or who die (before becoming so eligible 
for such benefits), in the calendar year 1979, the amounts established 
with respect to subparagraphs (A), (B), and (C) of paragraph (1) shall 
be $230, $332, and $433, respectively.
    (B) For individuals who initially become eligible for old-age or 
disability insurance benefits, or who die (before becoming so eligible 
for such benefits), in any calendar year after 1979, each of the amounts 
so established shall equal the product of the corresponding amount 
established for the calendar year 1979 by subparagraph (A) of this 
paragraph and the quotient obtained under subparagraph (B)(ii) of 
section 415(a)(1) of this title, with such product being rounded in the 
manner prescribed by section 415(a)(1)(B)(iii) of this title.
    (C) In each calendar year after 1978 the Commissioner of Social 
Security shall publish in the Federal Register, on or before November 1, 
the formula which (except as provided in section 415(i)(2)(D) of this 
title) is to be applicable under this paragraph to individuals who 
become eligible for old-age or disability insurance benefits, or who die 
(before becoming eligible for such benefits), in the following calendar 
year.
    (D) A year shall not be counted as the year of an individual's death 
or eligibility for purposes of this paragraph or paragraph (8) in any 
case where such individual was entitled to a disability insurance 
benefit for any of the 12 months immediately preceding the month of such 
death or eligibility (but there shall be counted instead the year of the 
individual's eligibility for the disability insurance benefits to which 
he was entitled during such 12 months).
    (3)(A) When an individual who is entitled to benefits on the basis 
of the wages and self-employment income of any insured individual and to 
whom this subsection applies would (but for the provisions of section 
402(k)(2)(A) of this title) be entitled to child's insurance benefits 
for a month on the basis of the wages and self-employment income of one 
or more other insured individuals, the total monthly benefits to which 
all beneficiaries are entitled on the basis of such wages and self-
employment income shall not be reduced under this subsection to less 
than the smaller of--
        (i) the sum of the maximum amounts of benefits payable on the 
    basis of the wages and self-employment income of all such insured 
    individuals, or
        (ii) an amount (I) initially equal to the product of 1.75 and 
    the primary insurance amount that would be computed under section 
    415(a)(1) of this title, for January of the year determined for 
    purposes of this clause under the following two sentences, with 
    respect to average indexed monthly earnings equal to one-twelfth of 
    the contribution and benefit base determined for that year under 
    section 430 of this title, and (II) thereafter increased in 
    accordance with the provisions of section 415(i)(2)(A)(ii) of this 
    title.

The year established for purposes of clause (ii) shall be 1983 or, if it 
occurs later with respect to any individual, the year in which occurred 
the month that the application of the reduction provisions contained in 
this subparagraph began with respect to benefits payable on the basis of 
the wages and self-employment income of the insured individual. If for 
any month subsequent to the first month for which clause (ii) applies 
(with respect to benefits payable on the basis of the wages and self-
employment income of the insured individual) the reduction under this 
subparagraph ceases to apply, then the year determined under the 
preceding sentence shall be redetermined (for purposes of any subsequent 
application of this subparagraph with respect to benefits payable on the 
basis of such wages and self-employment income) as though this 
subparagraph had not been previously applicable.
    (B) When two or more persons were entitled (without the application 
of section 402(j)(1) of this title and section 423(b) of this title) to 
monthly benefits under section 402 or 423 of this title for January 1971 
or any prior month on the basis of the wages and self-employment income 
of such insured individual and the provisions of this subsection as in 
effect for any such month were applicable in determining the benefit 
amount of any persons on the basis of such wages and self-employment 
income, the total of benefits for any month after January 1971 shall not 
be reduced to less than the largest of--
        (i) the amount determined under this subsection without regard 
    to this subparagraph,
        (ii) the largest amount which has been determined for any month 
    under this subsection for persons entitled to monthly benefits on 
    the basis of such insured individual's wages and self-employment 
    income, or
        (iii) if any persons are entitled to benefits on the basis of 
    such wages and self-employment income for the month before the 
    effective month (after September 1972) of a general benefit increase 
    under this title (as defined in section 415(i)(3) of this title) or 
    a benefit increase under the provisions of section 415(i) of this 
    title, an amount equal to the sum of amounts derived by multiplying 
    the benefit amount determined under this subchapter (excluding any 
    part thereof determined under section 402(w) of this title) for the 
    month before such effective month (including this subsection, but 
    without the application of section 422(b) \1\ of this title, section 
    402(q) of this title, and subsections (b), (c), and (d) of this 
    section), for each such person for such month, by a percentage equal 
    to the percentage of the increase provided under such benefit 
    increase (with any such increased amount which is not a multiple of 
    $0.10 being rounded to the next lower multiple of $0.10);
---------------------------------------------------------------------------
    \1\ See References in Text note below.

but in any such case (I) subparagraph (A) of this paragraph shall not be 
applied to such total of benefits after the application of clause (ii) 
or (iii), and (II) if section 402(k)(2)(A) of this title was applicable 
in the case of any such benefits for a month, and ceases to apply for a 
month after such month, the provisions of clause (ii) or (iii) shall be 
applied, for and after the month in which section 402(k)(2)(A) of this 
title ceases to apply, as though subparagraph (A) of this paragraph had 
not been applicable to such total of benefits for the last month for 
which clause (ii) or (iii) was applicable.
    (C) When any of such individuals is entitled to monthly benefits as 
a divorced spouse under section 402(b) or (c) of this title or as a 
surviving divorced spouse under section 402(e) or (f) of this title for 
any month, the benefit to which he or she is entitled on the basis of 
the wages and self-employment income of such insured individual for such 
month shall be determined without regard to this subsection, and the 
benefits of all other individuals who are entitled for such month to 
monthly benefits under section 402 of this title on the wages and self-
employment income of such insured individual shall be determined as if 
no such divorced spouse or surviving divorced spouse were entitled to 
benefits for such month.
    (D) In any case in which--
        (i) two or more individuals are entitled to monthly benefits for 
    the same month as a spouse under subsection (b) or (c) of section 
    402 of this title, or as a surviving spouse under subsection (e), 
    (f), or (g) of section 402 of this title,
        (ii) at least one of such individuals is entitled by reason of 
    subparagraph (A)(ii) or (B) of section 416(h)(1) of this title, and
        (iii) such entitlements are based on the wages and self-
    employment income of the same insured individual,

the benefit of the entitled individual whose entitlement is based on a 
valid marriage (as determined without regard to subparagraphs (A)(ii) 
and (B) of section 416(h)(1) of this title) to such insured individual 
shall, for such month and all months thereafter, be determined without 
regard to this subsection, and the benefits of all other individuals who 
are entitled, for such month or any month thereafter, to monthly 
benefits under section 402 of this title based on the wages and self-
employment income of such insured individual shall be determined as if 
such entitled individual were not entitled to benefits for such month.
    (4) In any case in which benefits are reduced pursuant to the 
provisions of this subsection, the reduction shall be made after any 
deductions under this section and after any deductions under section 
422(b) \1\ of this title. Notwithstanding the preceding sentence, any 
reduction under this subsection in the case of an individual who is 
entitled to a benefit under subsection (b), (c), (d), (e), (f), (g), or 
(h) of section 402 of this title for any month on the basis of the same 
wages and self-employment income as another person--
        (A) who also is entitled to a benefit under subsection (b), (c), 
    (d), (e), (f), (g), or (h) of section 402 of this title for such 
    month,
        (B) who does not live in the same household as such individual, 
    and
        (C) whose benefit for such month is suspended (in whole or in 
    part) pursuant to subsection (h)(3) of this section,

shall be made before the suspension under subsection (h)(3) of this 
section. Whenever a reduction is made under this subsection in the total 
of monthly benefits to which individuals are entitled for any month on 
the basis of the wages and self-employment income of an insured 
individual, each such benefit other than the old-age or disability 
insurance benefit shall be proportionately decreased.
    (5) Notwithstanding any other provision of law, when--
        (A) two or more persons are entitled to monthly benefits for a 
    particular month on the basis of the wages and self-employment 
    income of an insured individual and (for such particular month) the 
    provisions of this subsection are applicable to such monthly 
    benefits, and
        (B) such individual's primary insurance amount is increased for 
    the following month under any provision of this subchapter,

then the total of monthly benefits for all persons on the basis of such 
wages and self-employment income for such particular month, as 
determined under the provisions of this subsection, shall for purposes 
of determining the total monthly benefits for all persons on the basis 
of such wages and self-employment income for months subsequent to such 
particular month be considered to have been increased by the smallest 
amount that would have been required in order to assure that the total 
of monthly benefits payable on the basis of such wages and self-
employment income for any such subsequent month will not be less (after 
the application of the other provisions of this subsection and section 
402(q) of this title) than the total of monthly benefits (after the 
application of the other provisions of this subsection and section 
402(q) of this title) payable on the basis of such wages and self-
employment income for such particular month.
    (6) Notwithstanding any of the preceding provisions of this 
subsection other than paragraphs (3)(A), (3)(C), (3)(D), (4), and (5) 
(but subject to section 415(i)(2)(A)(ii) of this title), the total 
monthly benefits to which beneficiaries may be entitled under sections 
402 and 423 of this title for any month on the basis of the wages and 
self-employment income of an individual entitled to disability insurance 
benefits shall be reduced (before the application of section 424a of 
this title) to the smaller of--
        (A) 85 percent of such individual's average indexed monthly 
    earnings (or 100 percent of his primary insurance amount, if 
    larger), or
        (B) 150 percent of such individual's primary insurance amount.

    (7) In the case of any individual who is entitled for any month to 
benefits based upon the primary insurance amounts of two or more insured 
individuals, one or more of which primary insurance amounts were 
determined under section 415(a) or (d) of this title as in effect 
(without regard to the table contained therein) prior to January 1979 
and one or more of which primary insurance amounts were determined under 
section 415(a)(1) or (4) of this title, or section 415(d) of this title, 
as in effect after December 1978, the total benefits payable to that 
individual and all other individuals entitled to benefits for that month 
based upon those primary insurance amounts shall be reduced to an amount 
equal to the amount determined in accordance with the provisions of 
paragraph (3)(A)(ii) of this subsection, except that for this purpose 
the references to subparagraph (A) in the last two sentences of 
paragraph (3)(A) shall be deemed to be references to paragraph (7).
    (8) Subject to paragraph (7) and except as otherwise provided in 
paragraph (10)(C), this subsection as in effect in December 1978 shall 
remain in effect with respect to a primary insurance amount computed 
under section 415(a) or (d) of this title, as in effect (without regard 
to the table contained therein) in December 1978 and as amended by 
section 5117 of the Omnibus Budget Reconciliation Act of 1990, except 
that a primary insurance amount so computed with respect to an 
individual who first becomes eligible for an old-age or disability 
insurance benefit, or dies (before becoming eligible for such a 
benefit), after December 1978, shall instead be governed by this section 
as in effect after December 1978. For purposes of the preceding 
sentence, the phrase ``rounded to the next higher multiple of $0.10'', 
as it appeared in subsection (a)(2)(C) of this section as in effect in 
December 1978, shall be deemed to read ``rounded to the next lower 
multiple of $0.10''.
    (9) When--
        (A) one or more persons were entitled (without the application 
    of section 402(j)(1) of this title) to monthly benefits under 
    section 402 of this title for May 1978 on the basis of the wages and 
    self-employment income of an individual,
        (B) the benefit of at least one such person for June 1978 is 
    increased by reason of the amendments made by section 204 of the 
    Social Security Amendments of 1977; and
        (C) the total amount of benefits to which all such persons are 
    entitled under such section 402 of this title are reduced under the 
    provisions of this subsection (or would be so reduced except for the 
    first sentence of subsection (a)(4) of this section),

then the amount of the benefit to which each such person is entitled for 
months after May 1978 shall be increased (after such reductions are made 
under this subsection) to the amount such benefits would have been if 
the benefit of the person or persons referred to in subparagraph (B) had 
not been so increased.
    (10)(A) Subject to subparagraphs (B) and (C)--
        (i) the total monthly benefits to which beneficiaries may be 
    entitled under sections 402 and 423 of this title for a month on the 
    basis of the wages and self-employment income of an individual whose 
    primary insurance amount is computed under section 415(a)(2)(B)(i) 
    of this title shall equal the total monthly benefits which were 
    authorized by this section with respect to such individual's primary 
    insurance amount for the last month of his prior entitlement to 
    disability insurance benefits, increased for this purpose by the 
    general benefit increases and other increases under section 415(i) 
    of this title that would have applied to such total monthly benefits 
    had the individual remained entitled to disability insurance 
    benefits until the month in which he became entitled to old-age 
    insurance benefits or reentitled to disability insurance benefits or 
    died, and
        (ii) the total monthly benefits to which beneficiaries may be 
    entitled under sections 402 and 423 of this title for a month on the 
    basis of the wages and self-employment income of an individual whose 
    primary insurance amount is computed under section 415(a)(2)(C) of 
    this title shall equal the total monthly benefits which were 
    authorized by this section with respect to such individual's primary 
    insurance amount for the last month of his prior entitlement to 
    disability insurance benefits.

    (B) In any case in which--
        (i) the total monthly benefits with respect to such individual's 
    primary insurance amount for the last month of his prior entitlement 
    to disability insurance benefits was computed under paragraph (6), 
    and
        (ii) the individual's primary insurance amount is computed under 
    subparagraph (B)(i) or (C) of section 415(a)(2) of this title by 
    reason of the individual's entitlement to old-age insurance benefits 
    or death,

the total monthly benefits shall equal the total monthly benefits that 
would have been authorized with respect to the primary insurance amount 
for the last month of his prior entitlement to disability insurance 
benefits if such total monthly benefits had been computed without regard 
to paragraph (6).
    (C) This paragraph shall apply before the application of paragraph 
(3)(A), and before the application of subsection (a)(1) of this section 
as in effect in December 1978.

(b) Deductions on account of work

    (1) Deductions, in such amounts and at such time or times as the 
Commissioner of Social Security shall determine, shall be made from any 
payment or payments under this subchapter to which an individual is 
entitled, and from any payment or payments to which any other persons 
are entitled on the basis of such individual's wages and self-employment 
income, until the total of such deductions equals--
        (A) such individual's benefit or benefits under section 402 of 
    this title for any month, and
        (B) if such individual was entitled to old-age insurance 
    benefits under section 402(a) of this title for such month, the 
    benefit or benefits of all other persons for such month under 
    section 402 of this title based on such individual's wages and self-
    employment income,

if for such month he is charged with excess earnings, under the 
provisions of subsection (f) of this section, equal to the total of 
benefits referred to in clauses (A) and (B). If the excess earnings so 
charged are less than such total of benefits, such deductions with 
respect to such month shall be equal only to the amount of such excess 
earnings. If a child who has attained the age of 18 and is entitled to 
child's insurance benefits, or a person who is entitled to mother's or 
father's insurance benefits, is married to an individual entitled to 
old-age insurance benefits under section 402(a) of this title, such 
child or such person, as the case may be, shall, for the purposes of 
this subsection and subsection (f) of this section, be deemed to be 
entitled to such benefits on the basis of the wages and self-employment 
income of such individual entitled to old-age insurance benefits. If a 
deduction has already been made under this subsection with respect to a 
person's benefit or benefits under section 402 of this title for a 
month, he shall be deemed entitled to payments under such section for 
such month for purposes of further deductions under this subsection, and 
for purposes of charging of each person's excess earnings under 
subsection (f) of this section, only to the extent of the total of his 
benefits remaining after such earlier deductions have been made. For 
purposes of this subsection and subsection (f) of this section--
        (i) an individual shall be deemed to be entitled to payments 
    under section 402 of this title equal to the amount of the benefit 
    or benefits to which he is entitled under such section after the 
    application of subsection (a) of this section, but without the 
    application of the first sentence of paragraph (4) thereof; and
        (ii) if a deduction is made with respect to an individual's 
    benefit or benefits under section 402 of this title because of the 
    occurrence in any month of an event specified in subsection (c) or 
    (d) of this section or in section 422(b) \1\ of this title, such 
    individual shall not be considered to be entitled to any benefits 
    under such section 402 for such month.

    (2)(A) Except as provided in subparagraph (B), in any case in 
which--
        (i) any of the other persons referred to in paragraph (1)(B) is 
    entitled to monthly benefits as a divorced spouse under section 
    402(b) or (c) of this title for any month, and
        (ii) such person has been divorced for not less than 2 years,

the benefit to which he or she is entitled on the basis of the wages and 
self-employment income of the individual referred to in paragraph (1) 
for such month shall be determined without regard to deductions under 
this subsection as a result of excess earnings of such individual, and 
the benefits of all other individuals who are entitled for such month to 
monthly benefits under section 402 of this title on the basis of the 
wages and self-employment income of such individual referred to in 
paragraph (1) shall be determined as if no such divorced spouse were 
entitled to benefits for such month.
    (B) Clause (ii) of subparagraph (A) shall not apply with respect to 
any divorced spouse in any case in which the individual referred to in 
paragraph (1) became entitled to old-age insurance benefits under 
section 402(a) of this title before the date of the divorce.

(c) Deductions on account of noncovered work outside United States or 
        failure to have child in care

    Deductions, in such amounts and at such time or times as the 
Commissioner of Social Security shall determine, shall be made from any 
payment or payments under this subchapter to which an individual is 
entitled, until the total of such deductions equals such individual's 
benefits or benefit under section 402 of this title for any month--
        (1) in which such individual is under the age of seventy and for 
    more than forty-five hours of which such individual engaged in 
    noncovered remunerative activity outside the United States;
        (2) in which such individual, if a wife or husband under 
    retirement age (as defined in section 416(l) of this title) entitled 
    to a wife's or husband's insurance benefit, did not have in his or 
    her care (individually or jointly with his or her spouse) a child of 
    such spouse entitled to a child's insurance benefit and such wife's 
    or husband's insurance benefit for such month was not reduced under 
    the provisions of section 402(q) of this title;
        (3) in which such individual, if a widow or widower entitled to 
    a mother's or father's insurance benefit, did not have in his or her 
    care a child of his or her deceased spouse entitled to a child's 
    insurance benefit; or
        (4) in which such an individual, if a surviving divorced mother 
    or father entitled to a mother's or father's insurance benefit, did 
    not have in his or her care a child of his or her deceased former 
    spouse who (A) is his or her son, daughter, or legally adopted child 
    and (B) is entitled to a child's insurance benefit on the basis of 
    the wages and self-employment income of such deceased former spouse.

For purposes of paragraphs (2), (3), and (4) of this subsection, a child 
shall not be considered to be entitled to a child's insurance benefit 
for any month in which paragraph (1) of section 402(s) of this title 
applies or an event specified in section 422(b) \1\ of this title occurs 
with respect to such child. Subject to paragraph (3) of such section 
402(s) of this title, no deduction shall be made under this subsection 
from any child's insurance benefit for the month in which the child 
entitled to such benefit attained the age of eighteen or any subsequent 
month; nor shall any deduction be made under this subsection from any 
widow's insurance benefit for any month in which the widow or surviving 
divorced wife is entitled and has not attained retirement age (as 
defined in section 416(l) of this title) (but only if she became so 
entitled prior to attaining age 60), or from any widower's insurance 
benefit for any month in which the widower or surviving divorced husband 
is entitled and has not attained retirement age (as defined in section 
416(l) of this title) (but only if he became so entitled prior to 
attaining age 60).

(d) Deductions from dependents' benefits on account of noncovered work 
        outside United States by old-age insurance beneficiary

    (1)(A) Deductions shall be made from any wife's, husband's, or 
child's insurance benefit, based on the wages and self-employment income 
of an individual entitled to old-age insurance benefits, to which a 
wife, divorced wife, husband, divorced husband, or child is entitled, 
until the total of such deductions equals such wife's, husband's, or 
child's insurance benefit or benefits under section 402 of this title 
for any month in which such individual is under the age of seventy and 
for more than forty-five hours of which such individual engaged in 
noncovered remunerative activity outside the United States.
    (B)(i) Except as provided in clause (ii), in any case in which--
        (I) a divorced spouse is entitled to monthly benefits under 
    section 402(b) or (c) of this title for any month, and
        (II) such divorced spouse has been divorced for not less than 2 
    years,

the benefit to which he or she is entitled for such month on the basis 
of the wages and self-employment income of the individual entitled to 
old-age insurance benefits referred to in subparagraph (A) shall be 
determined without regard to deductions under this paragraph as a result 
of excess earnings of such individual, and the benefits of all other 
individuals who are entitled for such month to monthly benefits under 
section 402 of this title on the basis of the wages and self-employment 
income of such individual referred to in subparagraph (A) shall be 
determined as if no such divorced spouse were entitled to benefits for 
such month.
    (ii) Subclause (II) of clause (i) shall not apply with respect to 
any divorced spouse in any case in which the individual entitled to old-
age insurance benefits referred to in subparagraph (A) became entitled 
to such benefits before the date of the divorce.
    (2) Deductions shall be made from any child's insurance benefit to 
which a child who has attained the age of eighteen is entitled, or from 
any mother's or father's insurance benefit to which a person is 
entitled, until the total of such deductions equals such child's 
insurance benefit or benefits or mother's or father's insurance benefit 
or benefits under section 402 of this title for any month in which such 
child or person entitled to mother's or father's insurance benefits is 
married to an individual under the age of seventy who is entitled to 
old-age insurance benefits and for more than forty-five hours of which 
such individual engaged in noncovered remunerative activity outside the 
United States.

(e) Occurrence of more than one event

    If more than one of the events specified in subsections (c) and (d) 
of this section and section 422(b) \1\ of this title occurs in any one 
month which would occasion deductions equal to a benefit for such month, 
only an amount equal to such benefit shall be deducted.

(f) Months to which earnings are charged

    For purposes of subsection (b) of this section--
        (1) The amount of an individual's excess earnings (as defined in 
    paragraph (3)) shall be charged to months as follows: There shall be 
    charged to the first month of such taxable year an amount of his 
    excess earnings equal to the sum of the payments to which he and all 
    other persons (excluding divorced spouses referred to in subsection 
    (b)(2) of this section) are entitled for such month under section 
    402 of this title on the basis of his wages and self-employment 
    income (or the total of his excess earnings if such excess earnings 
    are less than such sum), and the balance, if any, of such excess 
    earnings shall be charged to each succeeding month in such year to 
    the extent, in the case of each such month, of the sum of the 
    payments to which such individual and all such other persons are 
    entitled for such month under section 402 of this title on the basis 
    of his wages and self-employment income, until the total of such 
    excess has been so charged. Where an individual is entitled to 
    benefits under section 402(a) of this title and other persons 
    (excluding divorced spouses referred to in subsection (b)(2) of this 
    section) are entitled to benefits under section 402(b), (c), or (d) 
    of this title on the basis of the wages and self-employment income 
    of such individual, the excess earnings of such individual for any 
    taxable year shall be charged in accordance with the provisions of 
    this subsection before the excess earnings of such persons for a 
    taxable year are charged to months in such individual's taxable 
    year. Notwithstanding the preceding provisions of this paragraph but 
    subject to section 402(s) of this title, no part of the excess 
    earnings of an individual shall be charged to any month (A) for 
    which such individual was not entitled to a benefit under this 
    subchapter, (B) in which such individual was age seventy or over, 
    (C) in which such individual, if a child entitled to child's 
    insurance benefits, has attained the age of 18, (D) for which such 
    individual is entitled to widow's insurance benefits and has not 
    attained retirement age (as defined in section 416(l) of this title) 
    (but only if she became so entitled prior to attaining age 60), or 
    widower's insurance benefits and has not attained retirement age (as 
    defined in section 416(l) of this title) (but only if he became so 
    entitled prior to attaining age 60), (E) in which such individual 
    did not engage in self-employment and did not render services for 
    wages (determined as provided in paragraph (5) of this subsection) 
    of more than the applicable exempt amount as determined under 
    paragraph (8), if such month is in the taxable year in which occurs 
    the first month after December 1977 that is both (i) a month for 
    which the individual is entitled to benefits under subsection (a), 
    (b), (c), (d), (e), (f), (g), or (h) of section 402 of this title 
    (without having been entitled for the preceding month to a benefit 
    under any other of such subsections), and (ii) a month in which the 
    individual did not engage in self-employment and did not render 
    services for wages (determined as provided in paragraph (5)) of more 
    than the applicable exempt amount as determined under paragraph (8), 
    or (F) in which such individual did not engage in self-employment 
    and did not render services for wages (determined as provided in 
    paragraph (5) of this subsection) of more than the applicable exempt 
    amount as determined under paragraph (8), in the case of an 
    individual entitled to benefits under section 402(b) or (c) of this 
    title (but only by reason of having a child in his or her care 
    within the meaning of paragraph (1)(B) of subsection (b) or (c) of 
    this section, as may be applicable) or under section 402(d) or (g) 
    of this title, if such month is in a year in which such entitlement 
    ends for a reason other than the death of such individual, and such 
    individual is not entitled to any benefits under this subchapter for 
    the month following the month during which such entitlement under 
    section 402(b), (d), or (g) of this title ended.
        (2) As used in paragraph (1), the term ``first month of such 
    taxable year'' means the earliest month in such year to which the 
    charging of excess earnings described in such paragraph is not 
    prohibited by the application of clauses (A), (B), (C), (D), (E), 
    and (F) thereof.
        (3) For purposes of paragraph (1) and subsection (h) of this 
    section, an individual's excess earnings for a taxable year shall be 
    33\1/3\ percent of his earnings for such year in excess of the 
    product of the applicable exempt amount as determined under 
    paragraph (8) in the case of an individual who has attained (or, but 
    for the individual's death, would have attained) retirement age (as 
    defined in section 416(l) of this title) before the close of such 
    taxable year, or 50 percent of his earnings for such year in excess 
    of such product in the case of any other individual, multiplied by 
    the number of months in such year, except that, in determining an 
    individual's excess earnings for the taxable year in which he 
    attains age 70, there shall be excluded any earnings of such 
    individual for the month in which he attains such age and any 
    subsequent month (with any net earnings or net loss from self-
    employment in such year being prorated in an equitable manner under 
    regulations of the Commissioner of Social Security). For purposes of 
    the preceding sentence, notwithstanding section 411(e) of this 
    title, the number of months in the taxable year in which an 
    individual dies shall be 12. The excess earnings as derived under 
    the first sentence of this paragraph, if not a multiple of $1, shall 
    be reduced to the next lower multiple of $1.
        (4) For purposes of clause (E) of paragraph (1)--
            (A) An individual will be presumed, with respect to any 
        month, to have been engaged in self-employment in such month 
        until it is shown to the satisfaction of the Commissioner of 
        Social Security that such individual rendered no substantial 
        services in such month with respect to any trade or business the 
        net income or loss of which is includible in computing (as 
        provided in paragraph (5) of this subsection) his net earnings 
        or net loss from self-employment for any taxable year. The 
        Commissioner of Social Security shall by regulations prescribe 
        the methods and criteria for determining whether or not an 
        individual has rendered substantial services with respect to any 
        trade or business.
            (B) An individual will be presumed, with respect to any 
        month, to have rendered services for wages (determined as 
        provided in paragraph (5) of this subsection) of more than the 
        applicable exempt amount as determined under paragraph (8) until 
        it is shown to the satisfaction of the Commissioner of Social 
        Security that such individual did not render such services in 
        such month for more than such amount.

        (5)(A) An individual's earnings for a taxable year shall be (i) 
    the sum of his wages for services rendered in such year and his net 
    earnings from self-employment for such year, minus (ii) any net loss 
    from self-employment for such year.
        (B) For purposes of this section--
            (i) an individual's net earnings from self-employment for 
        any taxable year shall be determined as provided in section 411 
        of this title, except that paragraphs (1), (4), and (5) of 
        section 411(c) of this title shall not apply and the gross 
        income shall be computed by excluding the amounts provided by 
        subparagraph (D) of this paragraph, and
            (ii) an individual's net loss from self-employment for any 
        taxable year is the excess of the deductions (plus his 
        distributive share of loss described in section 702(a)(8) of the 
        Internal Revenue Code of 1986) taken into account under clause 
        (i) over the gross income (plus his distributive share of income 
        so described) taken into account under clause (i).

        (C) For purposes of this subsection, an individual's wages shall 
    be computed without regard to the limitations as to amounts of 
    remuneration specified in paragraphs (1), (6)(B), (6)(C), (7)(B), 
    and (8) of section 409(a) of this title; and in making such 
    computation services which do not constitute employment as defined 
    in section 410 of this title, performed within the United States by 
    the individual as an employee or performed outside the United States 
    in the active military or naval service of the United States, shall 
    be deemed to be employment as so defined if the remuneration for 
    such services is not includible in computing his net earnings or net 
    loss from self-employment. The term ``wages'' does not include--
            (i) the amount of any payment made to, or on behalf of, an 
        employee or any of his dependents (including any amount paid by 
        an employer for insurance or annuities, or into a fund, to 
        provide for any such payment) on account of retirement, or
            (ii) any payment or series of payments by an employer to an 
        employee or any of his dependents upon or after the termination 
        of the employee's employment relationship because of retirement 
        after attaining an age specified in a plan referred to in 
        section 409(a)(11)(B) of this title or in a pension plan of the 
        employer.

        (D) In the case of--
            (i) an individual who has attained retirement age (as 
        defined in section 416(l) of this title) on or before the last 
        day of the taxable year, and who shows to the satisfaction of 
        the Commissioner of Social Security that he or she is receiving 
        royalties attributable to a copyright or patent obtained before 
        the taxable year in which he or she attained such age and that 
        the property to which the copyright or patent relates was 
        created by his or her own personal efforts, or
            (ii) an individual who has become entitled to insurance 
        benefits under this subchapter, other than benefits under 
        section 423 of this title or benefits payable under section 
        402(d) of this title by reason of being under a disability, and 
        who shows to the satisfaction of the Commissioner of Social 
        Security that he or she is receiving, in a year after his or her 
        initial year of entitlement to such benefits, any other income 
        not attributable to services performed after the month in which 
        he or she initially became entitled to such benefits,

    there shall be excluded from gross income any such royalties or 
    other income.
        (E) For purposes of this section, any individual's net earnings 
    from self-employment which result from or are 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, on which 
    the computation of such net earnings from self-employment is based, 
    is actually paid to or received by such individual (unless such 
    income was actually paid and received prior to that year).
        (6) For purposes of this subsection, wages (determined as 
    provided in paragraph (5)(C)) which, according to reports received 
    by the Commissioner of Social Security, are paid to an individual 
    during a taxable year shall be presumed to have been paid to him for 
    services performed in such year until it is shown to the 
    satisfaction of the Commissioner of Social Security that they were 
    paid for services performed in another taxable year. If such reports 
    with respect to an individual show his wages for a calendar year, 
    such individual's taxable year shall be presumed to be a calendar 
    year for purposes of this subsection until it is shown to the 
    satisfaction of the Commissioner of Social Security that his taxable 
    year is not a calendar year.
        (7) Where an individual's excess earnings are charged to a month 
    and the excess earnings so charged are less than the total of the 
    payments (without regard to such charging) to which all persons 
    (excluding divorced spouses referred to in subsection (b)(2) of this 
    section) are entitled under section 402 of this title for such month 
    on the basis of his wages and self-employment income, the difference 
    between such total and the excess so charged to such month shall be 
    paid (if it is otherwise payable under this subchapter) to such 
    individual and other persons in the proportion that the benefit to 
    which each of them is entitled (without regard to such charging, 
    without the application of section 402(k)(3) of this title, and 
    prior to the application of section 403(a) of this title) bears to 
    the total of the benefits to which all of them are entitled.
        (8)(A) Whenever the Commissioner of Social Security pursuant to 
    section 415(i) of this title increases benefits effective with the 
    month of December following a cost-of-living computation quarter \2\ 
    the Commissioner shall also determine and publish in the Federal 
    Register on or before November 1 of the calendar year in which such 
    quarter occurs the new exempt amounts (separately stated for 
    individuals described in subparagraph (D) and for other individuals) 
    which are to be applicable (unless prevented from becoming effective 
    by subparagraph (C)) with respect to taxable years ending in (or 
    with the close of) the calendar year after the calendar year in 
    which such benefit increase is effective (or, in the case of an 
    individual who dies during the calendar year after the calendar year 
    in which the benefit increase is effective, with respect to such 
    individual's taxable year which ends, upon his death, during such 
    year).
---------------------------------------------------------------------------
    \2\ So in original. Probably should be followed by a comma.
---------------------------------------------------------------------------
        (B) Except as otherwise provided in subparagraph (D), the exempt 
    amount which is applicable to individuals described in such 
    subparagraph and the exempt amount which is applicable to other 
    individuals, for each month of a particular taxable year, shall each 
    be whichever of the following is the larger--
            (i) the corresponding exempt amount which is in effect with 
        respect to months in the taxable year in which the determination 
        under subparagraph (A) is made, or
            (ii) the product of the corresponding exempt amount which is 
        in effect with respect to months in the taxable year ending 
        after 2001 and before 2003 (with respect to individuals 
        described in subparagraph (D)) or the taxable year ending after 
        1993 and before 1995 (with respect to other individuals), and 
        the ratio of--
                (I) the national average wage index (as defined in 
            section 409(k)(1) of this title) for the calendar year 
            before the calendar year in which the determination under 
            subparagraph (A) is made, to
                (II) the national average wage index (as so defined) for 
            2000 (with respect to individuals described in subparagraph 
            (D)) or 1992 (with respect to other individuals),

        with such product, if not a multiple of $10, being rounded to 
        the next higher multiple of $10 where such product is a multiple 
        of $5 but not of $10 and to the nearest multiple of $10 in any 
        other case.

    Whenever the Commissioner of Social Security determines that an 
    exempt amount is to be increased in any year under this paragraph, 
    the Commissioner shall notify the House Committee on Ways and Means 
    and the Senate Committee on Finance within 30 days after the close 
    of the base quarter (as defined in section 415(i)(1)(A) of this 
    title) in such year of the estimated amount of such increase, 
    indicating the new exempt amount, the actuarial estimates of the 
    effect of the increase, and the actuarial assumptions and 
    methodology used in preparing such estimates.
        (C) Notwithstanding the determination of a new exempt amount by 
    the Commissioner of Social Security under subparagraph (A) (and 
    notwithstanding any publication thereof under such subparagraph or 
    any notification thereof under the last sentence of subparagraph 
    (B)), such new exempt amount shall not take effect pursuant thereto 
    if during the calendar year in which such determination is made a 
    law increasing the exempt amount is enacted.
        (D) Notwithstanding any other provision of this subsection, the 
    exempt amount which is applicable to an individual who has attained 
    retirement age (as defined in section 416(l) of this title) before 
    the close of the taxable year involved shall be--
            (i) for each month of any taxable year ending after 1995 and 
        before 1997, $1,041.66\2/3\,
            (ii) for each month of any taxable year ending after 1996 
        and before 1998, $1,125.00,
            (iii) for each month of any taxable year ending after 1997 
        and before 1999, $1,208.33\1/3\,
            (iv) for each month of any taxable year ending after 1998 
        and before 2000, $1,291.66\2/3\,
            (v) for each month of any taxable year ending after 1999 and 
        before 2001, $1,416.66\2/3\,
            (vi) for each month of any taxable year ending after 2000 
        and before 2002, $2,083.33\1/3\, and
            (vii) for each month of any taxable year ending after 2001 
        and before 2003, $2,500.00.

        (9) For purposes of paragraphs (3), (5)(D)(i), and (8)(D), the 
    term ``retirement age (as defined in section 416(l) of this 
    title)'', with respect to any individual entitled to monthly 
    insurance benefits under section 402 of this title, means the 
    retirement age (as so defined) which is applicable in the case of 
    old-age insurance benefits, regardless of whether or not the 
    particular benefits to which the individual is entitled (or the only 
    such benefits) are old-age insurance benefits.

(g) Penalty for failure to report certain events

    Any individual in receipt of benefits subject to deduction under 
subsection (c) of this section, (or who is in receipt of such benefits 
on behalf of another individual), because of the occurrence of an event 
specified therein, who fails to report such occurrence to the 
Commissioner of Social Security prior to the receipt and acceptance of 
an insurance benefit for the second month following the month in which 
such event occurred, shall suffer deductions in addition to those 
imposed under subsection (c) of this section as follows:
        (1) if such failure is the first one with respect to which an 
    additional deduction is imposed by this subsection, such additional 
    deduction shall be equal to his benefit or benefits for the first 
    month of the period for which there is a failure to report even 
    though such failure is with respect to more than one month;
        (2) if such failure is the second one with respect to which an 
    additional deduction is imposed by this subsection, such additional 
    deduction shall be equal to two times his benefit or benefits for 
    the first month of the period for which there is a failure to report 
    even though such failure is with respect to more than two months; 
    and
        (3) if such failure is the third or a subsequent one for which 
    an additional deduction is imposed under this subsection, such 
    additional deduction shall be equal to three times his benefit or 
    benefits for the first month of the period for which there is a 
    failure to report even though the failure to report is with respect 
    to more than three months;

except that the number of additional deductions required by this 
subsection shall not exceed the number of months in the period for which 
there is a failure to report. As used in this subsection, the term 
``period for which there is a failure to report'' with respect to any 
individual means the period for which such individual received and 
accepted insurance benefits under section 402 of this title without 
making a timely report and for which deductions are required under 
subsection (c) of this section.

(h) Report of earnings to Commissioner

    (1)(A) If an individual is entitled to any monthly insurance benefit 
under section 402 of this title during any taxable year in which he has 
earnings or wages, as computed pursuant to paragraph (5) of subsection 
(f) of this section, in excess of the product of the applicable exempt 
amount as determined under subsection (f)(8) of this section times the 
number of months in such year, such individual (or the individual who is 
in receipt of such benefit on his behalf) shall make a report to the 
Commissioner of Social Security of his earnings (or wages) for such 
taxable year. Such report shall be made on or before the fifteenth day 
of the fourth month following the close of such year, and shall contain 
such information and be made in such manner as the Commissioner of 
Social Security may by regulations prescribe. Such report need not be 
made for any taxable year--
        (i) beginning with or after the month in which such individual 
    attained age 70, or
        (ii) if benefit payments for all months (in such taxable year) 
    in which such individual is under age 70 have been suspended under 
    the provisions of the first sentence of paragraph (3) of this 
    subsection, unless--
            (I) such individual is entitled to benefits under subsection 
        (b), (c), (d), (e), (f), (g), or (h) of section 402 of this 
        title,
            (II) such benefits are reduced under subsection (a) of this 
        section for any month in such taxable year, and
            (III) in any such month there is another person who also is 
        entitled to benefits under subsection (b), (c), (d), (e), (f), 
        (g), or (h) of section 402 of this title on the basis of the 
        same wages and self-employment income and who does not live in 
        the same household as such individual.

The Commissioner of Social Security may grant a reasonable extension of 
time for making the report of earnings required in this paragraph if the 
Commissioner finds that there is valid reason for a delay, but in no 
case may the period be extended more than four months.
    (B) If the benefit payments of an individual have been suspended for 
all months in any taxable year under the provisions of the first 
sentence of paragraph (3) of this subsection, no benefit payment shall 
be made to such individual for any such month in such taxable year after 
the expiration of the period of three years, three months, and fifteen 
days following the close of such taxable year unless within such period 
the individual, or some other person entitled to benefits under this 
subchapter on the basis of the same wages and self-employment income, 
files with the Commissioner of Social Security information showing that 
a benefit for such month is payable to such individual.
    (2) If an individual fails to make a report required under paragraph 
(1) of this subsection, within the time prescribed by or in accordance 
with such paragraph, for any taxable year and any deduction is imposed 
under subsection (b) of this section by reason of his earnings for such 
year, he shall suffer additional deductions as follows:
        (A) if such failure is the first one with respect to which an 
    additional deduction is imposed under this paragraph, such 
    additional deduction shall be equal to his benefit or benefits for 
    the last month of such year for which he was entitled to a benefit 
    under section 402 of this title, except that if the deduction 
    imposed under subsection (b) of this section by reason of his 
    earnings for such year is less than the amount of his benefit (or 
    benefits) for the last month of such year for which he was entitled 
    to a benefit under section 402 of this title, the additional 
    deduction shall be equal to the amount of the deduction imposed 
    under subsection (b) of this section but not less than $10;
        (B) if such failure is the second one for which an additional 
    deduction is imposed under this paragraph, such additional deduction 
    shall be equal to two times his benefit or benefits for the last 
    month of such year for which he was entitled to a benefit under 
    section 402 of this title;
        (C) if such failure is the third or a subsequent one for which 
    an additional deduction is imposed under this paragraph, such 
    additional deduction shall be equal to three times his benefit or 
    benefits for the last month of such year for which he was entitled 
    to a benefit under section 402 of this title;

except that the number of the additional deductions required by this 
paragraph with respect to a failure to report earnings for a taxable 
year shall not exceed the number of months in such year for which such 
individual received and accepted insurance benefits under section 402 of 
this title and for which deductions are imposed under subsection (b) of 
this section by reason of his earnings. In determining whether a failure 
to report earnings is the first or a subsequent failure for any 
individual, all taxable years ending prior to the imposition of the 
first additional deduction under this paragraph, other than the latest 
one of such years, shall be disregarded.
    (3) If the Commissioner of Social Security determines, on the basis 
of information obtained by or submitted to the Commissioner, that it may 
reasonably be expected that an individual entitled to benefits under 
section 402 of this title for any taxable year will suffer deductions 
imposed under subsection (b) of this section by reason of his earnings 
for such year, the Commissioner of Social Security may, before the close 
of such taxable year, suspend the total or less than the total payment 
for each month in such year (or for only such months as the Commissioner 
of Social Security may specify) of the benefits payable on the basis of 
such individual's wages and self-employment income; and such suspension 
shall remain in effect with respect to the benefits for any month until 
the Commissioner of Social Security has determined whether or not any 
deduction is imposed for such month under subsection (b) of this 
section. The Commissioner of Social Security is authorized, before the 
close of the taxable year of an individual entitled to benefits during 
such year, to request of such individual that he make, at such time or 
times as the Commissioner of Social Security may specify, a declaration 
of his estimated earnings for the taxable year and that he furnish to 
the Commissioner of Social Security such other information with respect 
to such earnings as the Commissioner of Social Security may specify. A 
failure by such individual to comply with any such request shall in 
itself constitute justification for a determination under this paragraph 
that it may reasonably be expected that the individual will suffer 
deductions imposed under subsection (b) of this section by reason of his 
earnings for such year. If, after the close of a taxable year of an 
individual entitled to benefits under section 402 of this title for such 
year, the Commissioner of Social Security requests such individual to 
furnish a report of his earnings (as computed pursuant to paragraph (5) 
of subsection (f) of this section) for such taxable year or any other 
information with respect to such earnings which the Commissioner of 
Social Security may specify, and the individual fails to comply with 
such request, such failure shall in itself constitute justification for 
a determination that such individual's benefits are subject to 
deductions under subsection (b) of this section for each month in such 
taxable year (or only for such months thereof as the Commissioner of 
Social Security may specify) by reason of his earnings for such year.
    (4) The Commissioner of Social Security shall develop and implement 
procedures in accordance with this subsection to avoid paying more than 
the correct amount of benefits to any individual under this subchapter 
as a result of such individual's failure to file a correct report or 
estimate of earnings or wages. Such procedures may include identifying 
categories of individuals who are likely to be paid more than the 
correct amount of benefits and requesting that they estimate their 
earnings or wages more frequently than other persons subject to 
deductions under this section on account of earnings or wages.

(i) Repealed. Pub. L. 103-296, title III, Sec. 309(a), Aug. 15, 1994, 
        108 Stat. 1523

(j) Attainment of age seventy

    For the purposes of this section, an individual shall be considered 
as seventy years of age during the entire month in which he attains such 
age.

(k) Noncovered remunerative activity outside United States

    An individual shall be considered to be engaged in noncovered 
remunerative activity outside the United States if he performs services 
outside the United States as an employee and such services do not 
constitute employment as defined in section 410 of this title and are 
not performed in the active military or naval service of the United 
States, or if he carries on a trade or business outside the United 
States (other than the performance of service as an employee) the net 
income or loss of which (1) is not includible in computing his net 
earnings from self-employment for a taxable year and (2) would not be 
excluded from net earnings from self-employment, if carried on in the 
United States, by any of the numbered paragraphs of section 411(a) of 
this title. When used in the preceding sentence with respect to a trade 
or business (other than the performance of service as an employee), the 
term ``United States'' does not include the Commonwealth of Puerto Rico, 
the Virgin Islands, Guam, or American Samoa in the case of an alien who 
is not a resident of the United States (including the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, and American Samoa); and the term 
``trade or business'' shall have the same meaning as when used in 
section 162 of the Internal Revenue Code of 1986.

(l) Good cause for failure to make reports required

    The failure of an individual to make any report required by 
subsection (g) or (h)(1)(A) of this section within the time prescribed 
therein shall not be regarded as such a failure if it is shown to the 
satisfaction of the Commissioner of Social Security that he had good 
cause for failing to make such report within such time. The 
determination of what constitutes good cause for purposes of this 
subsection shall be made in accordance with regulations of the 
Commissioner of Social Security, except that in making any such 
determination, the Commissioner of Social Security shall specifically 
take into account any physical, mental, educational, or linguistic 
limitation such individual may have (including any lack of facility with 
the English language).

(Aug. 14, 1935, ch. 531, title II, Sec. 203, 49 Stat. 623; Aug. 10, 
1939, ch. 666, title II, Sec. 201, 53 Stat. 1362, 1367; Aug. 10, 1946, 
ch. 951, title IV, Sec. 406, 60 Stat. 988; Aug. 28, 1950, ch. 809, title 
I, Secs. 102(a), 103(a), 64 Stat. 489; July 18, 1952, ch. 945, 
Secs. 2(b)(2), 4(a)-(d), 66 Stat. 768, 773; Sept. 1, 1954, ch. 1206, 
title I, Secs. 102(e)(7), 103(a)-(h), (i)(3), 112(a), 68 Stat. 1070, 
1073-1077, 1078, 1085; Aug. 1, 1956, ch. 836, title I, Secs. 101(d)-(g), 
102(d)(11), 107(a), 112 (a), (b), 70 Stat. 808, 814, 829, 831; Pub. L. 
85-840, title I, Sec. 101(f), title II, Sec. 205(j), (k), title III, 
Secs. 307(f), 308(a)-(e), Aug. 28, 1958, 72 Stat. 1017, 1024, 1032, 
1033; Pub. L. 86-778, title I, Sec. 103(b), title II, Secs. 209(a), 
211(a)-(h), title III, Sec. 302(a), Sept. 13, 1960, 74 Stat. 936, 953-
957, 960; Pub. L. 87-64, title I, Sec. 108(a), June 30, 1961, 75 Stat. 
140; Pub. L. 89-97, title III, Secs. 301(c), 306(c)(10)-(12), 308(d)(6)-
(8), 310(a), 325(a), July 30, 1965, 79 Stat. 363, 373, 378-380, 399; 
Pub. L. 90-248, title I, Secs. 101(b), 104(d)(1), 107(a), 160, 161(a), 
(b), 163(a)(1), Jan. 2, 1968, 81 Stat. 826, 832, 834, 870, 872; Pub. L. 
91-172, title X, Sec. 1002(b)(1), Dec. 30, 1969, 83 Stat. 739; Pub. L. 
92-5, title II, Sec. 201(b), Mar. 17, 1971, 85 Stat. 8; Pub. L. 92-336, 
title II, Secs. 201(b), (h)(1), 202(a)(2)(A), (B), July 1, 1972, 86 
Stat. 410, 411, 415; Pub. L. 92-603, title I, Secs. 101(b), 102(c), 
103(c), 105(a), (b), 106(a), 107(b)(1), (2), 144(a)(2), (3), Oct. 30, 
1972, 86 Stat. 1334, 1336, 1340-1343, 1370; Pub. L. 93-66, title II, 
Sec. 202(a)-(c), July 9, 1973, 87 Stat. 153; Pub. L. 93-233, Secs. 3(k), 
18(a), Dec. 31, 1973, 87 Stat. 953, 967; Pub. L. 94-202, Sec. 8(i), Jan. 
2, 1976, 89 Stat. 1140; Pub. L. 95-216, title II, Secs. 202, 204(e), 
title III, Secs. 301(a), (b), (c)(1), (d), 302(a)-(d), 303(a), 353(a), 
Dec. 20, 1977, 91 Stat. 1524, 1528, 1530, 1531, 1552; Pub. L. 96-265, 
title I, Sec. 101(a)-(b)(2), June 9, 1980, 94 Stat. 442; Pub. L. 96-473, 
Secs. 1(a), 3(a), 4(a), 6(b), Oct. 19, 1980, 94 Stat. 2263-2265; Pub. L. 
97-35, title XXII, Secs. 2201(c)(6), 2206(b)(2)-(4), Aug. 13, 1981, 95 
Stat. 831, 838; Pub. L. 97-123, Sec. 2(f), Dec. 29, 1981, 95 Stat. 1661; 
Pub. L. 98-21, title I, Secs. 111(a)(4), 132(b), title II, 
Sec. 201(c)(1)(B), (2), title III, Secs. 306(i), 309(f)-(h), 324(c)(4), 
331(a), (b), 347(a), Apr. 20, 1983, 97 Stat. 72, 94, 109, 114, 116, 117, 
125, 128, 129, 138; Pub. L. 98-369, div. B, title VI, Secs. 2602(a), 
2661(g)(1)(A), (2)(A), 2662(c)(1), 2663(a)(3), July 18, 1984, 98 Stat. 
1127, 1157, 1159, 1161; Pub. L. 99-272, title XII, Sec. 12108(a), Apr. 
7, 1986, 100 Stat. 286; Pub. L. 100-647, title VIII, Sec. 8002(a), (b), 
Nov. 10, 1988, 102 Stat. 3779; Pub. L. 101-239, title X, 
Secs. 10208(b)(1)(A), (B), (d)(2)(A)(i), (ii), (vi), 10305(a), Dec. 19, 
1989, 103 Stat. 2477, 2480, 2481, 2483; Pub. L. 101-508, title V, 
Secs. 5117(a)(3)(B), 5119(c), (d), 5123(a)(1), (2), 5127(a), (b), Nov. 
5, 1990, 104 Stat. 1388-277, 1388-279, 1388-280, 1388-284, 1388-286; 
Pub. L. 103-296, title I, Sec. 107(a)(4), title III, Secs. 309(a)-(c), 
310(a), (b), 314(a), 321(a)(6), (c)(6)(A), (g)(2), Aug. 15, 1994, 108 
Stat. 1478, 1523, 1524, 1530, 1536, 1538, 1543; Pub. L. 104-121, title 
I, Sec. 102(a), (b)(1), Mar. 29, 1996, 110 Stat. 847, 848.)

                       References in Text

    Section 422(b) of this title, referred to in subsecs. 
(a)(3)(B)(iii), (4), (b)(1)(ii), (c), (e), was repealed by Pub. L. 106-
170, title I, Sec. 101(b)(1)(C), Dec. 17, 1999, 113 Stat. 1873.
    Section 5117 of the Omnibus Budget Reconciliation Act of 1990, 
referred to in subsec. (a)(8), is section 5117 of Pub. L. 101-508, title 
V, Nov. 5, 1990, 104 Stat. 1388-274.
    The amendments made by section 204 of the Social Security Amendments 
of 1977, referred to in subsec. (a)(9)(B), means the amendments made by 
section 204 of Pub. L. 95-216, which enacted subsec. (a)(9) of this 
section and amended section 402(e)(2)(A), (e)(2)(B)(i), (f)(3)(A), and 
(f)(3)(B)(i) of this title.
    The Internal Revenue Code of 1986, referred to in subsecs. 
(f)(5)(B)(ii) and (k), is classified generally to Title 26, Internal 
Revenue Code.


                               Amendments

    1996--Subsec. (f)(8)(B)(ii). Pub. L. 104-121, Sec. 102(b)(1)(A), 
substituted ``the taxable year ending after 2001 and before 2003 (with 
respect to individuals described in subparagraph (D)) or the taxable 
year ending after 1993 and before 1995 (with respect to other 
individuals)'' for ``the taxable year ending after 1993 and before 
1995''.
    Subsec. (f)(8)(B)(ii)(II). Pub. L. 104-121, Sec. 102(b)(1)(B), 
substituted ``for 2000 (with respect to individuals described in 
subparagraph (D)) or 1992 (with respect to other individuals)'' for 
``for 1992''.
    Subsec. (f)(8)(D). Pub. L. 104-121, Sec. 102(a), amended subpar. (D) 
generally. Prior to amendment, subpar. (D) read as follows: 
``Notwithstanding any other provision of this subsection, the exempt 
amount which is applicable to an individual who has attained retirement 
age (as defined in section 416(l) of this title) before the close of the 
taxable year involved--
        ``(i) shall be $333.33\1/3\ for each month of any taxable year 
    ending after 1977 and before 1979,
        ``(ii) shall be $375 for each month of any taxable year ending 
    after 1978 and before 1980,
        ``(iii) shall be $416.66\2/3\ for each month of any taxable year 
    ending after 1979 and before 1981,
        ``(iv) shall be $458.33\1/3\ for each month of any taxable year 
    ending after 1980 and before 1982, and
        ``(v) shall be $500 for each month of any taxable year ending 
    after 1981 and before 1983.''
    1994--Subsec. (a)(2)(C). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (a)(4). Pub. L. 103-296, Sec. 309(b), substituted ``section 
422(b) of this title. Notwithstanding the preceding sentence, any 
reduction under this subsection in the case of an individual who is 
entitled to a benefit under subsection (b), (c), (d), (e), (f), (g), or 
(h) of section 402 of this title for any month on the basis of the same 
wages and self-employment income as another person--
        ``(A) who also is entitled to a benefit under subsection (b), 
    (c), (d), (e), (f), (g), or (h) of section 402 of this title for 
    such month,
        ``(B) who does not live in the same household as such 
    individual, and
        ``(C) whose benefit for such month is suspended (in whole or in 
    part) pursuant to subsection (h)(3) of this section,
shall be made before the suspension under subsection (h)(3) of this 
section. Whenever'' for ``section 422(b) of this title. Whenever''.
    Subsec. (a)(8). Pub. L. 103-296, Sec. 310(b), substituted ``Subject 
to paragraph (7) and except as otherwise provided in paragraph (10)(C)'' 
for ``Subject to paragraph (7)''.
    Subsec. (a)(10). Pub. L. 103-296, Sec. 310(a), added par. (10).
    Subsecs. (b)(1), (c), (f)(3), (4). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary'' 
wherever appearing.
    Subsec. (f)(5)(B)(ii). Pub. L. 103-296, Sec. 321(c)(6)(A), 
substituted ``Code of 1986'' for ``Code of 1954''.
    Subsec. (f)(5)(C)(i), (ii). Pub. L. 103-296, Sec. 321(a)(6), 
realigned margins.
    Subsec. (f)(5)(D), (6). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary'' wherever 
appearing.
    Subsec. (f)(8)(A). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary'' and ``the 
Commissioner'' for ``he''.
    Subsec. (f)(8)(B). Pub. L. 103-296, Sec. 107(a)(4), in closing 
provisions substituted ``Commissioner of Social Security'' for 
``Secretary'' and ``the Commissioner shall'' for ``he shall''.
    Subsec. (f)(8)(B)(ii). Pub. L. 103-296, Sec. 321(g)(2), amended cl. 
(ii) generally. Prior to amendment, cl. (ii) read as follows: ``the 
product of the exempt amount described in clause (i) and the ratio of 
(I) the deemed average total wages (as defined in section 409(k)(1) of 
this title) for the calendar year before the calendar year in which the 
determination under subparagraph (A) is made to (II) the deemed average 
total wages (as so defined) for the calendar year before the most recent 
calendar year in which an increase in the exempt amount was enacted or a 
determination resulting in such an increase was made under subparagraph 
(A), with such product, if not a multiple of $10, being rounded to the 
next higher multiple of $10 where such product is a multiple of $5 but 
not of $10 and to the nearest multiple of $10 in any other case.''
    Subsecs. (f)(8)(C), (g). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (h)(1)(A). Pub. L. 103-296, Sec. 314(a), substituted ``four 
months'' for ``three months'' in last sentence.
    Pub. L. 103-296, Sec. 107(a)(4), in subpar. (A) as amended by Pub. 
L. 103-296, Sec. 309(c), substituted ``Commissioner of Social Security'' 
for ``Secretary'' wherever appearing and ``the Commissioner'' for ``he'' 
before ``finds''.
    Pub. L. 103-296, Sec. 309(c), substituted ``Such report need not be 
made for any taxable year--
        ``(i) beginning with or after the month in which such individual 
    attained age 70, or
        ``(ii) if benefit payments for all months (in such taxable year) 
    in which such individual is under age 70 have been suspended under 
    the provisions of the first sentence of paragraph (3) of this 
    subsection, unless--
            ``(I) such individual is entitled to benefits under 
        subsection (b), (c), (d), (e), (f), (g), or (h) of section 402 
        of this title,
            ``(II) such benefits are reduced under subsection (a) of 
        this section for any month in such taxable year, and
            ``(III) in any such month there is another person who also 
        is entitled to benefits under subsection (b), (c), (d), (e), 
        (f), (g), or (h) of section 402 of this title on the basis of 
        the same wages and self-employment income and who does not live 
        in the same household as such individual.
The Secretary may grant'' for ``Such report need not be made for any 
taxable year (i) beginning with or after the month in which such 
individual attained age 70, or (ii) if benefit payments for all months 
(in such taxable year) in which such individual is under age 70 have 
been suspended under the provisions of the first sentence of paragraph 
(3) of this subsection. The Secretary may grant''.
    Subsec. (h)(1)(B). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (h)(3). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary'' wherever appearing 
and ``submitted to the Commissioner'' for ``submitted to him''.
    Subsec. (h)(4). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary''.
    Subsec. (i). Pub. L. 103-296, Sec. 309(a), struck out subsec. (i) 
which read as follows: ``In the case of any individual, deductions by 
reason of the provisions of subsection (b), (c), (g), or (h) of this 
section, or the provisions of section 422(b) of this title, shall, 
notwithstanding such provisions, be made from the benefits to which such 
individual is entitled only to the extent that such deductions reduce 
the total amount which would otherwise be paid, on the basis of the same 
wages and self-employment income, to such individual and the other 
individuals living in the same household.''
    Subsec. (k). Pub. L. 103-296, Sec. 321(c)(6)(A), substituted ``Code 
of 1986'' for ``Code of 1954''.
    Subsec. (l). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary'' wherever 
appearing.
    1990--Subsec. (a)(3)(D). Pub. L. 101-508, Sec. 5119(c), added 
subpar. (D).
    Subsec. (a)(6). Pub. L. 101-508, Sec. 5119(d), inserted ``(3)(D),'' 
after ``(3)(C),''.
    Subsec. (a)(8). Pub. L. 101-508, Sec. 5117(a)(3)(B), inserted ``and 
as amended by section 5117 of the Omnibus Budget Reconciliation Act of 
1990,'' after second reference to ``December 1978''.
    Subsec. (b)(2). Pub. L. 101-508, Sec. 5127(a), designated existing 
provisions as subpar. (A), substituted ``Except as provided in 
subparagraph (B), in any case in which--'' and cls. (i) and (ii) for 
``When any of the other persons referred to in paragraph (1)(B) is 
entitled to monthly benefits as a divorced spouse under section 402(b) 
or (c) of this title for any month and such person has been so divorced 
for not less than 2 years,'', and added subpar. (B).
    Subsec. (d)(1)(B). Pub. L. 101-508, Sec. 5127(b), designated 
existing provisions as cl. (i), substituted ``Except as provided in 
clause (ii), in any case in which--'' and subcls. (I) and (II) for 
``When any divorced spouse is entitled to monthly benefits under section 
402(b) or (c) of this title for any month and such divorced spouse has 
been so divorced for not less than 2 years,'', and added cl. (ii).
    Subsec. (f)(5)(E). Pub. L. 101-508, Sec. 5123(a)(1), (2), 
redesignated last undesignated par. of section 411(a) of this title as 
subpar. (E) and substituted ``For purposes of this section, any 
individual's net earnings from self-employment which result from or are 
attributable to'' for ``Any income of an individual which results from 
or is attributable to'', ``the income, on which the computation of such 
net earnings from self-employment is based, is actually paid'' for ``the 
income is actually paid'', and ``unless such income was'' for ``unless 
it was''.
    1989--Subsec. (f)(5)(C). Pub. L. 101-239, Sec. 10208(d)(2)(A)(ii), 
(vi), substituted ``paragraphs (1), (6)(B), (6)(C), (7)(B), and (8) of 
section 409(a)'' for ``subsections (a), (g)(2), (g)(3), (h)(2), and (j) 
of section 409'' in introductory provisions and ``409(a)(11)(B)'' for 
``409(m)(2)'' in cl. (ii).
    Subsec. (f)(8)(B)(ii)(I). Pub. L. 101-239, Sec. 10208(b)(1)(A), 
substituted ``the deemed average total wages (as defined in section 
409(k)(1) of this title)'' for ``the average of the total wages (as 
defined in regulations of the Secretary and computed without regard to 
the limitations specified in section 409(a) of this title) reported to 
the Secretary of the Treasury or his delegate''.
    Pub. L. 101-239, Sec. 10208(d)(2)(A)(i), substituted ``409(a)(1)'' 
for ``409(a)''.
    Subsec. (f)(8)(B)(ii)(II). Pub. L. 101-239, Sec. 10208(b)(1)(B), 
substituted ``the deemed average total wages (as so defined)'' for ``the 
average of the total wages (as so defined and computed) reported to the 
Secretary of the Treasury or his delegate''.
    Subsec. (l). Pub. L. 101-239, Sec. 10305(a), substituted 
``Secretary, except that in making any such determination, the Secretary 
shall specifically take into account any physical, mental, educational, 
or linguistic limitation such individual may have (including any lack of 
facility with the English language)'' for ``Secretary'' in last 
sentence.
    1988--Subsec. (f)(3). Pub. L. 100-647 inserted ``(or, but for the 
individual's death, would have attained)'' after ``who has attained'' in 
first sentence, inserted after first sentence ``For purposes of the 
preceding sentence, notwithstanding section 411(e) of this title, the 
number of months in the taxable year in which an individual dies shall 
be 12.'', and substituted ``first sentence of this paragraph'' for 
``preceding sentence'' in last sentence.
    1986--Subsec. (a)(4). Pub. L. 99-272, Sec. 12108(a)(1), struck out 
``preceding'' after ``pursuant to the'' in first sentence.
    Subsec. (a)(6). Pub. L. 99-272, Sec. 12108(a)(2), substituted ``(4), 
and (5)'' for ``and (5)'' and ``shall be reduced'' for ``whether or not 
such total benefits are otherwise subject to reduction under this 
subsection but after any reduction under this subsection which would 
otherwise be applicable, shall be, reduced or further reduced''.
    1984--Subsec. (a)(8). Pub. L. 98-369, Sec. 2663(a)(3)(A), inserted a 
period at end of par. (8).
    Subsec. (d)(1)(A). Pub. L. 98-369, Sec. 2661(g)(1)(A)(i), 
substituted ``for more than forty-five hours of which such individual 
engaged'' for ``on seven or more different calendar days of which he 
engaged''.
    Subsec. (d)(2). Pub. L. 98-369, Sec. 2663(a)(3)(B), substituted ``an 
individual under the age of seventy who is entitled'' for ``an 
individual who is entitled''.
    Pub. L. 98-369, Sec. 2661(g)(1)(A)(ii), substituted ``for more than 
forty-five hours'' for ``on seven or more different calendar days''.
    Subsec. (f)(5)(B)(ii). Pub. L. 98-369, Sec. 2663(a)(3)(C), 
substituted ``702(a)(8)'' for ``702(a)(9)''.
    Subsec. (f)(5)(D)(i). Pub. L. 98-369, Sec. 2662(c)(1), made a 
clarifying amendment to Pub. L. 98-21, Sec. 201(c)(1)(B). See 1983 
Amendment note below.
    Subsec. (f)(8)(B), (C). Pub. L. 98-369, Sec. 2663(a)(3)(D), 
realigned margins of subpars. (B) and (C).
    Subsec. (f)(9). Pub. L. 98-369, Sec. 2661(g)(2)(A), added par. (9).
    Subsec. (h)(4). Pub. L. 98-369, Sec. 2602(a), added par. (4).
    1983--Subsec. (a)(3)(A). Pub. L. 98-21, Sec. 331(a)(1), amended cl. 
(ii) generally, substituting provisions relating to an amount (I) 
initially equal to the product of 1.75 and the primary insurance amount 
that would be computed under section 415(a)(1) of this title, for 
January of the year determined for purposes of this clause under the 
following two sentences, with respect to average indexed monthly 
earnings equal to one-twelfth of the contribution and benefit base 
determined for that year under section 430 of this title, and (II) 
thereafter increased in accordance with the provisions of section 
415(i)(2)(A)(ii) of this title, for provisions relating to an amount 
equal to the product of 1.75 and the primary insurance amount that would 
be computed under section 415(a)(1) of this title for that month with 
respect to average indexed monthly earnings equal to one-twelfth of the 
contribution and benefit base determined for that year under section 430 
of this title, and inserted provisions following cl. (ii).
    Subsec. (a)(7). Pub. L. 98-21, Sec. 331(a)(2), substituted ``the 
amount determined in accordance with the provisions of paragraph 
(3)(A)(ii) of this subsection, except that for this purpose the 
references to subparagraph (A) in the last two sentences of paragraph 
(3)(A) shall be deemed to be references to paragraph (7)'' for ``the 
product of 1.75 and the primary insurance amount that would be computed 
under section 415(a)(1) of this title for that month with respect to 
average indexed monthly earnings equal to one-twelfth of the 
contribution and benefit base determined under section 430 of this title 
for the year in which that month occurs''.
    Subsec. (b)(1). Pub. L. 98-21, Sec. 309(f), inserted ``or father's'' 
after ``mother's'' in provisions following subpar. (B).
    Pub. L. 98-21, Sec. 132(b)(1)(A)(iii), substituted ``clauses (A) and 
(B)'' for ``clauses (1) and (2)'' in provisions following subpar. (B).
    Pub. L. 98-21, Sec. 132(b)(1)(A)(i), (ii), (iv), designated existing 
provisions of subsec. (b) as par. (1), and in par. (1), as so 
designated, redesignated cls. (1) and (2) as (A) and (B), respectively, 
and cls. (A) and (B) as (i) and (ii), respectively.
    Subsec. (b)(1)(i). Pub. L. 98-21, Sec. 331(b), substituted ``first 
sentence of paragraph (4)'' for ``penultimate sentence''.
    Subsec. (b)(2). Pub. L. 98-21, Sec. 132(b)(1)(A)(v), added par. (2).
    Subsec. (c). Pub. L. 98-21, Sec. 201(c)(2), substituted ``retirement 
age (as defined in section 416(l) of this title)'' for ``age sixty-
five''.
    Pub. L. 98-21, Sec. 201(c)(1)(B), substituted ``retirement age (as 
defined in section 416(l) of this title)'' for ``age 65'' wherever 
appearing in provisions following par. (4).
    Pub. L. 98-21, Sec. 309(g), amended subsec. (c) generally, 
substituting in par. (1) specification of more than forty-five hours of 
nonrecovered remunerative activity for specification of seven or more 
different days of such activity, and in pars. (2) to (4) provisions not 
distinguishing between the sexes for provisions relating only to the 
entitlements of women, and in provisions following par. (4) inserting 
``or surviving divorced husband'' after ``widower''.
    Subsec. (d)(1). Pub. L. 98-21, Sec. 309(h), inserted ``divorced 
husband,'' after ``husband,''.
    Pub. L. 98-21, Sec. 132(b)(2), designated existing provisions as 
subpar. (A) and added subpar. (B).
    Subsec. (d)(2). Pub. L. 98-21, Sec. 309(h), inserted ``or father's'' 
after ``mother's'' in three places.
    Subsec. (f)(1). Pub. L. 98-21, Sec. 132(b)(1)(B)(i), inserted 
``(excluding divorced spouses referred to in subsection (b)(2) of this 
section)'' after ``and all other persons'' and after ``other persons'' 
and inserted ``such'' after ``payments to which such individual and 
all'' in first sentence.
    Subsec. (f)(1)(D). Pub. L. 98-21, Sec. 201(c)(1)(B), substituted 
``retirement age (as defined in section 416(l) of this title)'' for 
``age 65'' in two places.
    Subsec. (f)(1)(F). Pub. L. 98-21, Sec. 306(i), substituted ``section 
402(b) or (c) of this title (but only by reason of having a child in his 
or her care within the meaning of paragraph (1)(B) of subsection (b) or 
(c) of this section, as may be applicable)'' for ``section 402(b) of 
this title (but only by reason of having a child in her care within the 
meaning of paragraph (1)(B) of that subsection)''.
    Subsec. (f)(3). Pub. L. 98-21, Sec. 347(a), substituted ``33\1/3\ 
percent of his earnings for such year in excess of the product of the 
applicable exempt amount as determined under paragraph (8) in the case 
of an individual who has attained retirement age (as defined in section 
416(l) of this title) before the close of such taxable year, or 50 
percent of his earnings for such year in excess of such product in the 
case of any other individual'' for ``50 per centum of his earnings for 
such year in excess of the product of the applicable exempt amount as 
determined under paragraph (8)''.
    Subsec. (f)(5)(C). Pub. L. 98-21, Sec. 324(c)(4), inserted provision 
excluding from ``wages'' certain payments on account of retirement or 
under a pension plan of the employer.
    Subsec. (f)(5)(D)(i). Pub. L. 98-21, Sec. 201(c)(1)(B), as amended 
by Pub. L. 98-369, Sec. 2662(c)(1), substituted ``retirement age (as 
defined in section 416(l) of this title)'' for ``the age of 65''.
    Subsec. (f)(7). Pub. L. 98-21, Sec. 132(b)(1)(B)(ii), inserted 
``(excluding divorced spouses referred to in subsection (b)(2) of this 
section)'' after ``all persons''.
    Subsec. (f)(8)(A). Pub. L. 98-21, Sec. 111(a)(4), substituted 
``December'' for ``June''.
    Subsec. (f)(8)(D). Pub. L. 98-21, Sec. 201(c)(1)(B), substituted 
``retirement age (as defined in section 416(l) of this title)'' for 
``age 65''.
    1981--Subsec. (a)(1). Pub. L. 97-35, Sec. 2206(b)(2), substituted in 
provisions following subpar. (D) ``decreased to the next lower'' for 
``increased to the next higher''.
    Subsec. (a)(3)(B)(iii). Pub. L. 97-35, Sec. 2206(b)(3), substituted 
``next lower multiple'' for ``next higher multiple''.
    Subsec. (a)(8). Pub. L. 97-123, Sec. 2(f), struck out ``, modified 
by the application of section 415(a)(6) of this title''.
    Pub. L. 97-35, Secs. 2201(c)(6), 2206(b)(4), inserted ``, modified 
by the application of section 415(a)(6) of this title'' and inserted 
provision that for the purposes of the preceding sentence, the phrase 
``rounded to the next higher multiple of $0.10'', as it appeared in 
subsec. (a)(2)(C) of this section as in effect in December 1978, be 
deemed to read ``rounded to the next lower multiple of $0.10''.
    1980--Subsec. (a). Pub. L. 96-265 added par. (6), redesignated 
former pars. (6) to (8) as (7) to (9), respectively, and made conforming 
amendments to pars. (1), (2)(D), and (8).
    Subsec. (a)(3)(A). Pub. L. 96-473, Sec. 6(b)(1), substituted 
``entitled on the basis'' for ``entitled on the bases''.
    Subsec. (a)(7). Pub. L. 96-473, Sec. 6(b)(2), substituted ``benefit 
base'' for ``benefits base''.
    Subsec. (f)(1). Pub. L. 96-473, Secs. 1(a)(1), 4(a), inserted 
reference to December 1977 in cl. (E) and added cl. (F).
    Subsec. (f)(2)(F). Pub. L. 96-473, Sec. 1(a)(2), inserted reference 
to cl. (F).
    Subsec. (f)(5)(D). Pub. L. 96-473, Sec. 3(a), revised former cls. 
(i) and (ii) into cl. (i), inserted reference to women, and added cl. 
(ii).
    1977--Subsec. (a)(1) to (7). Pub. L. 95-216, Sec. 202, generally 
restated the provisions of existing pars. (1) to (5) with changes to 
take into account the revised system for computing primary insurance 
amounts based on wage-indexed earnings and redistributed those existing 
provisions as thus restated into pars. (1) to (7).
    Subsec. (a)(8). Pub. L. 95-216, Sec. 204(e), added par. (8).
    Subsecs. (c)(1), (d)(1), (f)(1)(B). Pub. L. 95-216, Sec. 302(a), 
substituted ``seventy'' for ``seventy-two''.
    Subsec. (f)(1)(E). Pub. L. 95-216, Secs. 301(d), 303(a), substituted 
``the applicable exempt amount'' for ``$200 or the exempt amount'' and 
inserted ``, if such month is in the taxable year in which occurs the 
first month that is both (i) a month for which the individual is 
entitled to benefits under subsection (a), (b), (c), (d), (e), (f), (g), 
or (h) of section 402 of this title (without having been entitled for 
the preceding month to a benefit under any other of such subsections), 
and (ii) a month in which the individual did not engage in self-
employment and did not render services for wages (determined as provided 
in paragraph (5)) of more than the applicable exempt amount as 
determined under paragraph (8)'' after ``as determined under paragraph 
(8)''.
    Subsec. (f)(3). Pub. L. 95-216, Sec. 301(d), substituted ``the 
applicable exempt amount'' for ``$200 or the exempt amount''.
    Pub. L. 95-216, Sec. 302(b), substituted ``age 70'' for ``age 72''.
    Subsec. (f)(4)(B). Pub. L. 95-216, Sec. 301(d), substituted ``the 
applicable exempt amount'' for ``$200 or the exempt amount''.
    Subsec. (f)(8)(A). Pub. L. 95-216, Sec. 301(a), substituted ``the 
new exempt amounts (separately stated for individuals described in 
subparagraph (D) and for other individuals) which are to be applicable 
(unless prevented from becoming effective by subparagraph (C) with 
respect to taxable years ending in (or with the close of) the calendar 
year after the calendar year'' for ``a new exempt amount which shall be 
effective (unless such new exempt amount is prevented from becoming 
effective by subparagraph (C) of this paragraph) with respect to any 
individual's taxable year which ends after the calendar year''.
    Subsec. (f)(8)(B). Pub. L. 95-216, Secs. 301(b), 353(a), applicable 
with respect to taxable years ending after Dec. 1977, substituted 
``Except as otherwise provided in subparagraph (D), the exempt amount 
which is applicable to individuals described in such subparagraph and 
the exempt amount which is applicable to other individuals for each 
month of a particular taxable year, shall each be'' for ``The exempt 
amount for each month of a particular taxable year shall be'' in 
provisions preceding cl. (i), substituted ``the corresponding exempt 
amount'' for ``the exempt amount'' in cl. (i), and, in provisions 
following cl. (ii), substituted ``an exempt amount'' for ``the exempt 
amount'', and effective Jan. 1, 1979, substituted ``is'' for ``was'' in 
cl. (i) and, in cl. (ii), substituted ``(I) the average of the total 
wages (as defined in regulations of the Secretary and computed without 
regard to the limitations specified in section 409(a) of this title) 
reported to the Secretary of the Treasury or his delegate for the 
calendar year before the calendar year in which the determination under 
subparagraph (A) is made to (II) the average of the total wages (as so 
defined and computed) reported to the Secretary of the Treasury or his 
delegate for the calendar year before the most recent calendar year'' 
for ``(I) the average of the wages of all employees as reported to the 
Secretary of the Treasury for the calendar year preceding the calendar 
year in which the determination under subparagraph (A) was made to (II) 
the average of the wages of all employees as reported to the Secretary 
of the Treasury for the calendar year 1973, or, if later, the calendar 
year preceding the most recent calendar year'' and struck out reference 
to wages for calendar year 1978.
    Subsec. (f)(8)(D). Pub. L. 95-216, Sec. 301(c)(1), added subpar. 
(D).
    Subsec. (h)(1)(A). Pub. L. 95-216, Sec. 301(d), substituted ``the 
applicable exempt amount'' for ``$200 or the exempt amount''.
    Pub. L. 95-216, Sec. 302(c), substituted ``age 70'' for ``the age of 
72'' and for ``age 72''.
    Subsec. (j). Pub. L. 95-216, Sec. 302(a), (d), substituted 
``seventy'' for ``seventy-two'' in heading and in text.
    1976--Subsec. (f)(8)(B)(ii). Pub. L. 94-202 substituted ``wages of 
all employees as reported to the Secretary of the Treasury for the 
calendar year preceding the calendar year'' for ``taxable wages of all 
employees as reported to the Secretary for the first calendar quarter of 
the calendar year'' in cl. (I), substituted ``wages of all employees as 
reported to the Secretary of the Treasury for the calendar year 1973, 
or, if later, the calendar year preceding'' for ``taxable wages of all 
employees as reported to the Secretary for the first calendar quarter of 
1973, or, if later, the first calendar quarter of'' in cl. (II), and 
directed that the average wages for calendar year 1978, or any prior 
calendar year, be deemed equal to 400% of the average wages reported for 
the first quarter of that year.
    1973--Subsec. (f). Pub. L. 93-66, Sec. 202(a), (b), substituted in 
pars. (1), (3), first sentence, and (4)(B), ``$200'' for ``$175''.
    Subsec. (f)(8)(A). Pub. L. 93-233, Sec. 3(k)(1), substituted: ``with 
the month of June following'' for ``with the first month of the calendar 
year following'', ``which ends after the calendar year in which such 
benefit increase is effective'' for ``which ends with the close of or 
after the calendar year with the first month of which such benefit 
increase is effective'', and ``during the calendar year after the 
calendar year in which the benefit increase is effective'' for ``during 
such calendar year''; and struck out after ``such quarter occurs'' and 
before ``a new exempt amount'' parenthetical ``(along with the 
publication of such benefit increased as required by section 
415(i)(2)(D) of this title)''.
    Subsec. (f)(8)(B)(ii). Pub. L. 93-233, Sec. 18(a), substituted 
``exempt amount'' for ``contribution and benefit base'' and 
``subparagraph (A)'' for ``section 430(a) of this title'', respectively.
    Subsec. (f)(8)(B) foll. (ii). Pub. L. 93-233, Sec. 3(k)(2), 
substituted ``within 30 days after the close of the base quarter (as 
defined in section 415(i)(1)(A) of this title) in such year'' for ``no 
later than August 15 of such year''.
    Subsec. (f)(8)(C). Pub. L. 93-233, Sec. 3(k)(3), struck out ``or 
providing a general benefit increase under this subchapter (as defined 
in section 415(i)(3) of this title)'' after ``law increasing the exempt 
amount''.
    Subsec. (h)(1)(A). Pub. L. 93-66, Sec. 202(c), substituted ``$200'' 
for ``$175''.
    1972--Subsec. (a). Pub. L. 92-336, Sec. 202(a)(2)(A), inserted ``in 
or deemed to be'' after ``the table''.
    Subsec. (a)(2). Pub. L. 92-336, Sec. 202(a)(2)(B), as amended by 
Pub. L. 92-603, Secs. 103(c), 144(a)(3), substituted provisions relating 
to the reduction in the total benefits for any month after January 1971 
where two or more persons were entitled to monthly benefits under 
section 402 or 423 of this title for January 1971 or any prior month, 
for provisions relating to the reduction in the total of benefits for 
September 1972 or any subsequent month where two or more persons were 
entitled to monthly benefits under section 402 or 423 of this title for 
August, 1972.
    Pub. L. 92-336, Sec. 201(b), substituted provisions relating to the 
reduction in the total of benefits for September 1972 or any subsequent 
month where two or more persons were entitled to monthly benefits under 
section 402 or 423 of this title for August 1972, for provisions 
relating to the reduction in the total of benefits for January 1971 or 
any subsequent month where two or more persons were entitled to monthly 
benefits under section 402 or 423 of this title for January 1971.
    Subsec. (a)(2)(B). Pub. L. 92-603, Sec. 144(a)(2), inserted ``such'' 
before ``person''.
    Subsec. (a)(4). Pub. L. 92-336, Sec. 201(h)(1), added par. (4).
    Subsec. (a)(5). Pub. L. 92-603, Sec. 101(b), added par. (5).
    Subsec. (c). Pub. L. 92-603, Secs. 102(c)(1), 107(b)(1), substituted 
``attained age 65 (but only if she became so entitled prior to attaining 
age (60), or from any widower's insurance benefit for any month in which 
the widower is entitled and has not attained age 65 (but only if he 
became so entitled prior to attaining age 60)'' for ``attained age 62 
(but only if she became so entitled prior to attaining age 60), or from 
any widower's insurance benefit for any month in which the widower is 
entitled and has not attained age 62''.
    Subsec. (f)(1). Pub. L. 92-603, Secs. 102(c)(2), 105(a)(1), 
107(b)(2), substituted ``attained age 65 (but only if she became so 
entitled prior to attaining age 60), or widower's insurance benefits and 
has not attained age 65 (but only if she became so entitled prior to 
attaining age 60)'' for ``attained age 62 (but only if she became so 
entitled prior to attaining age 60), or widower's insurance benefits and 
has not attained age 62'' in cl. (D) and substituted ``$175 or the 
exempt amount as determined under paragraph (8)'' for ``$140'' in cl. 
(E).
    Subsec. (f)(3). Pub. L. 92-603, Secs. 105(a)(3), 106(a), substituted 
``shall be 50 per centum of his earnings for such year in excess of the 
product of $175 or the exempt amount as determined under paragraph 
(8),'' for ``shall be his earnings for such year in excess of the 
product of $140'' and struck out ``, except that of the first $1,200 of 
such excess (or all of such excess if it is less than $1,200), an amount 
equal to one-half thereof shall not be included'' after ``number of 
months in such year'' and inserted provisions for the exclusion of 
certain earnings in the year of attaining age 72.
    Subsec. (f)(4)(B). Pub. L. 92-603, Sec. 105(a)(1), substituted 
``$175 or the exempt amount as determined under paragraph (8)'' for 
``$140''.
    Subsec. (f)(8). Pub. L. 92-603, Sec. 105(b), added par. (8).
    Subsec. (h)(1)(A). Pub. L. 92-603, Sec. 105(a)(2), substituted 
``$175 or the exempt amount as determined under subsection (f)(8) of 
this section'' for ``$140''.
    1971--Subsec. (a)(2). Pub. L. 92-5 substituted references to January 
1971 for references to January 1970, substituted ``December 1970'' for 
``December 1969'', and, in subpar. (B), substituted ``prior to March 17, 
1971'' for ``prior to December 30, 1969 (and prior to January 1, 
1970)'', and lowered the multiple of the benefit amount from 115 percent 
to 110 percent.
    1969--Subsec. (a)(2). Pub. L. 91-172 substituted references to 
January 1970 for references to February 1968, and, in subpar. (B), 
substituted ``prior to December 30, 1969 (and prior to January 1, 
1970)'' for ``prior to February 1968'', and raised the multiple of the 
benefit amount from 113 percent to 115 percent.
    1968--Subsec. (a). Pub. L. 90-248, Sec. 163(a)(1), provided for 
reduction of benefits in the total of monthly benefits to which 
individuals are entitled for any month on the basis of the wages and 
self-employment income of an insured individual and that where such 
total of benefits for such month includes any benefit or benefits under 
section 402(d) of this title which are payable solely by reason of 
section 416(h)(3) of this title, the reduction shall be first applied to 
reduce (proportionately where there is more than one benefit so payable) 
the benefits so payable (but not below zero).
    Subsec. (a)(2). Pub. L. 90-248, Sec. 101(b), substituted references 
to February 1968 for former references to December 1964 and for former 
references to the enactment of the Social Security Amendments of 1965, 
increased the multiple of the benefit amount from 107 to 113 percent, 
and struck out former cl. (ii) which provided that the total of monthly 
benefits shall not be reduced to less than the larger of the amount 
determined under subpar. (A) or with respect to any month after the 
month in which the Social Security Amendments of 1965 are enacted, an 
amount equal to the sum of the amounts derived by multiplying the 
benefit amount determined under this subchapter (including subsection 
(a) of this section, but without the application of section 422(b) of 
this title, section 402(q) of this title, and subsections (b), (c) and 
(d) of this section), as in effect prior to the enactment of such 
Amendments, for each such person (other than a person who would not be 
entitled to such benefits for such month without the application of the 
amendments made by section 306 of the Social Security Amendments of 
1965) for the month of enactment, by 107 percent and raising each such 
increased amount, if it is not a multiple of $0.10, to the next higher 
multiple of $0.10.
    Subsec. (c). Pub. L. 90-248, Sec. 104(d)(1)(A), inserted after ``any 
subsequent month'' in third sentence ``; nor shall any deduction be made 
under this subsection from any widow's insurance benefit for any month 
in which the widow or surviving divorced wife is entitled and has not 
attained age 62 (but only if she became so entitled prior to attaining 
age 60), or from any widower's insurance benefit for any month in which 
the widower is entitled and has not attained age 62''.
    Subsec. (f)(1). Pub. L. 90-248, Secs. 104(d)(1)(B), 107(a)(1), 
inserted in third sentence subpar. (D) and redesignated existing 
provisions as subpar. (E), and substituted ``$140'' for ``125''.
    Subsec. (f)(2). Pub. L. 90-248, Sec. 104(d)(1)(C), substituted 
``(D), and (E)'' for ``and (D)''.
    Subsec. (f)(3). Pub. L. 90-248, Sec. 107(a)(1), substituted ``$140'' 
for ``$125''.
    Subsec. (f)(4). Pub. L. 90-248, Sec. 104(d)(1)(D), substituted 
``(E)'' for ``(D)''.
    Subsec. (f)(4)(B). Pub. L. 90-248, Sec. 107(a)(1), substituted 
``$140'' for ``$125''.
    Subsec. (g). Pub. L. 90-248, Sec. 161(b), substituted provisions 
that the penalty for the first failure to report will equal one month's 
benefit, for the second failure to report--two month's benefits, for the 
third or a subsequent failure to report--three month's benefits but in 
no case will the penalty exceed the number of months in the period for 
which there is a failure to report, and defining ``period for which 
there is a failure to report'' for present provisions that the penalty 
for the first failure to report is one month's benefit and for 
subsequent failures, the penalty is an amount equal to the total amount 
of the benefits for all the months in which the event occurred but was 
not reported within the prescribed time.
    Subsec. (h)(1)(A). Pub. L. 90-248, Secs. 107(a)(2), 160(a), inserted 
last sentence authorizing the Secretary to extend time to report 
earnings up to three months if there is a valid reason for delay, and 
substituted ``$140'' for ``$125''.
    Subsec. (h)(2). Pub. L. 90-248, Sec. 160(b), substituted in text 
preceding subpar. (A) ``by or in accordance with such paragraph'' for 
``therein''.
    Subsec. (h)(2)(A). Pub. L. 90-248, Sec. 161(a), inserted exception 
provision that if the deduction is less than the amount of his benefits 
for the last month for which he was entitled to benefits, the additional 
deduction will be the amount of the deduction under subsec. (b) but not 
less than ten dollars.
    1965--Subsec. (a)(2). Pub. L. 89-97, Sec. 301(c), substituted 
provisions to assure an increase in the family benefits for families who 
were on the benefit rolls after December 1964 and whose benefits were 
determined under former provisions by providing that the maximum family 
benefit of each month after December 1964 will be the larger of (1) the 
family maximum specified in column V of the new table or (2) the sum of 
all family members' benefits after each such benefit has been increased 
by seven percent (and rounded to the next higher ten cents if it is not 
already a multiple of ten cents), for former provisions restricting the 
reduction of total benefits to individuals entitled to monthly benefits 
under section 402 or 423 of this title for December 1958.
    Subsec. (a)(3). Pub. L. 89-97, Secs. 301(c), 308(d)(6), struck out 
par. (3) which was a special saving clause for maximum family benefits 
of people who became disabled before 1959 since families whose benefits 
were determined under such par. (3) are now covered by subsec. (a)(2) of 
this section, and added par. (3), respectively.
    Subsec. (c). Pub. L. 89-97, Sec. 306(c)(10), (11), inserted in 
penultimate sentence ``paragraph (1) of section 402(s) of this title 
applies or'' after ``for any month in which'' and in last sentence the 
introductory phrase ``Subject to paragraph (3) of such section 402(s)''.
    Subsec. (c)(4). Pub. L. 89-97, Sec. 308(d)(7), substituted 
``surviving divorced mother'' for ``former wife divorced''.
    Subsec. (d)(1). Pub. L. 89-97, Sec. 308(d)(8), inserted ``divorced 
wife,'' after ``wife,''.
    Subsec. (f)(1). Pub. L. 89-97, Secs. 306(c)(12), 310(a)(1), inserted 
``but subject to section 402(s) of this title'' after ``Notwithstanding 
the preceding provisions of this paragraph'' in last sentence and 
substituted ``$125'' for ``$100''.
    Subsec. (f)(3). Pub. L. 89-97, Sec. 310(a)(1), (2), substituted 
``$125'' for ``$100'' and ``$1,200'' for ``$500'' in two places.
    Subsec. (f)(4)(B). Pub. L. 89-97, Sec. 310(a)(1), substituted 
``$125'' for ``$100''.
    Subsec. (f)(5)(B). Pub. L. 89-97, Sec. 325(a)(1), broke down 
existing provisions into cls. (i) and (ii), provided, in cl. (ii), for 
exclusion from gross income of amounts provided by subpar. (D) of this 
par., and, in cl. (ii), inserted reference to distributive share of loss 
described in section 702(a)(9) of Title 26.
    Subsec. (f)(5)(D). Pub. L. 89-97, Sec. 325(a)(2), added subpar. (D).
    Subsec. (h)(1)(A). Pub. L. 89-97, Sec. 310(a)(3), substituted 
``$125'' for ``$100''.
    1961--Subsec. (f)(3). Pub. L. 87-64 substituted ``$500'' for 
``$300'' in two places.
    1960--Subsec. (a)(3). Pub. L. 86-778, Sec. 302(a), substituted ``, 
then such total of benefits shall not be reduced to less than $99.10 if 
such primary insurance amount is $66, to less than $102.40 if such 
primary insurance amount is $67, to less than $106.50 if such primary 
insurance amount is $68, or, if such primary insurance amount is higher 
than $68, to less than the smaller of'' for ``and is not less than $68, 
then such total of benefits shall not be reduced to less than the 
smaller of'' in the provisions following cl. (B), and ``the amount 
determined under this subsection without regard to this paragraph, or 
$206.60, whichever is larger'' for ``the last figure in column V of the 
table appearing in section 415(a) of this title'' in cl. (C).
    Subsec. (b). Pub. L. 86-778, Sec. 211(a), amended subsec. (b) 
generally, and among other changes, authorized deductions from payments 
to which any other persons are entitled on the basis of an individual's 
wages and self-employed income, substituted provisions requiring 
deductions for months in which an individual is charged with excess 
earnings under the provisions of subsec. (f) of this section for 
provisions which required deductions for months in which an individual 
is charged with any earnings under the provisions of subsec. (e) of this 
section, and inserted the second, third, fourth and fifth sentences. 
Former cls. (2)-(5) and the closing paragraph of subsec. (b) are covered 
by subsec. (c) of this section.
    Subsec. (c). Pub. L. 86-778, Sec. 211(b), redesignated the opening 
provisions, cls. (2) to (5) and the closing provisions of former subsec. 
(b) of this section as the opening provisions, cls. (1) to (4) and the 
closing provisions of subsec. (c), respectively. Former subsec. (c) 
redesignated (d).
    Subsec. (d). Pub. L. 86-778, Sec. 211(c), added subsec. (d) and 
redesignated former subsec. (d) as (e). Provisions of subsec. (d) were 
formerly contained in subsec. (c) of this section.
    Subsec. (e). Pub. L. 86-778, Sec. 211(c), (d), redesignated former 
subsec. (d) as (e), substituted ``subsections (c) and (d) of this 
section'' for ``subsections (b) and (c) of this section'', and struck 
out provisions which required the charging of any earnings to any month 
to be treated as an event occurring in such month. Former subsec. (e) 
redesignated (f).
    Subsec. (f). Pub. L. 86-778, Sec. 211(c), (e), redesignated former 
subsec. (e) as (f), and amended such subsection by inserting pars. (3) 
and (7), substituting provisions requiring an amount of an individual's 
excess earnings equal to the sum of the payments to which he and all 
other persons are entitled for the month under section 402 of this title 
on the basis of his wages and self-employment income (or the total of 
his excess earnings if such excess earnings are less than such sum) to 
be charged to the first month of the taxable year, and the balance, if 
any, of such excess earnings to be charged to each succeeding month in 
such year to the extent, in the case of each month, of the sum of the 
payments to which such individual and all other persons are entitled for 
such month under section 402 of this title on the basis of his wages and 
self-employment income, until the total of such excess has been so 
charged, for provisions which required the first $80 of earnings in 
excess of $1,200 to be charged to the first month of the taxable year, 
and the balance, if any, at the rate of $80 per month to each succeeding 
month in such year until all of the balance has been applied, and 
inserting provisions requiring the excess earnings of an individual for 
any taxable year, where an individual is entitled to benefits under 
section 402(a) of this title and other persons are entitled to benefits 
under section 402 (b), (c), or (d) of this title on the basis of the 
wages and self-employment income of such individual, to be charged in 
accordance with the provisions of this subsection before the excess 
earnings of such persons for a taxable year are charged to months in 
such individual's taxable year. Former subsec. (f) redesignated (g).
    Subsec. (g). Pub. L. 86-778, Secs. 209(a), 211(c), redesignated 
former subsec. (f) as (g), and substituted therein ``subsection (c) of 
this section'' for ``subsection (b) or (c) of this section'' in two 
places, and struck out ``(other than an event specified in subsection 
(b)(1) or (c)(1) of this section)'' after ``of an event specified 
therein.'' Former subsec. (g) redesignated (h).
    Subsec. (h). Pub. L. 86-778, Sec. 211(c), (f), redesignated former 
subsec. (g) as (h), and substituted therein ``paragraph (5) of 
subsection (f) of this section'' for ``paragraph (4) of subsection (e) 
of this section'' in two places, ``paragraph (3) of this subsection'' 
for ``paragraph (3) of subsection (g) of this section'', ``subsection 
(b) of this section'' for ``subsection (b)(1) of this section'' in five 
places, and ``suspend the total or less than the total payment'' for 
``suspend the payment.'' Former subsec. (h) redesignated (i).
    Subsec. (i). Pub. L. 86-778, Sec. 211(c), (g), redesignated former 
subsec. (h) as (i) and substituted therein ``subsection (b), (c), (g), 
or (h) of this section'' for ``subsection (b), (f), or (g) of this 
section.'' Former subsec. (i) was repealed by Act Sept. 1, 1954, ch. 
1206, title I, Sec. 112(a), 68 Stat. 1085.
    Subsec. (k). Pub. L. 86-778, Sec. 103(b), substituted ``the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam or American 
Samoa'' for ``Puerto Rico or the Virgin Islands'', and ``the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 
Samoa'' for ``Puerto Rico and the Virgin Islands''.
    Subsec. (l). Pub. L. 86-778, Sec. 211(h), substituted ``subsection 
(g) or (h)(1)(A) of this section'' for ``subsection (f) or (g)(1)(A) of 
this section''.
    1958--Subsec. (a). Pub. L. 85-840, Sec. 101(f), substituted 
provisions limiting the total of monthly benefits under sections 402 and 
423 of this title to the amount provided in column V of the table in 
section 415(a) of this title for provisions which limited the total of 
monthly benefits under section 402 of this title to $50, or 80% of the 
average monthly wage, or one and one-half times the primary insurance 
amount, whichever is greater, with a maximum amount of $200 and inserted 
provisions limiting the reduction for individuals who were entitled to 
monthly benefits under section 402 or 423 of this title for December 
1958, and for individuals entitled to monthly benefits with respect to 
whom a period of disability began prior to January 1959 and continued 
until he became entitled to benefits under section 402 or 423 of this 
title, or he died, whichever first occurred.
    Subsec. (c). Pub. L. 85-840, Sec. 205(j), inserted ``, based on the 
wages and self-employment income of an individual entitled to old-age 
insurance benefits,'' before ``to which a wife'' in opening provisions 
of par. (1), and Pub. L. 85-840, Sec. 307(f), designated existing 
provisions of subsec. (c) as par. (1), redesignated subpars. (1) and (2) 
of par. (1) as subpars. (A) and (B), substituted in subpar. (B) of par. 
(1) ``subparagraph (A)'' for ``paragraph (1)'', and added par. (2).
    Subsec. (e)(2). Pub. L. 85-840, Sec. 308(a), (c), substituted 
``first month'' for ``last month'' and ``succeeding month'' for 
``preceding month'' wherever appearing, and ``$100'' for ``$80'' in cl. 
(D).
    Subsec. (e)(3). Pub. L. 85-840, Sec. 308(b), (c), substituted ``the 
term `first month of such taxable year' means the earliest month'' for 
``the term `last month of such taxable year' means the latest month'' in 
cl. (A), and ``$100'' for ``$80'' in cl. (B)(ii).
    Subsec. (g)(1). Pub. L. 85-840, Sec. 308(d), designated existing 
provisions thereof as subpar. (A) and inserted provisions therein 
dispensing with the need for a report for any taxable year if benefit 
payments for all months (in such taxable year) in which such individual 
is under age 72 have been suspended under the provisions of the first 
sentence of par. (3) of this subsection, and added subpar. (B).
    Subsec. (h). Pub. L. 85-840, Sec. 205(k), struck out provisions that 
related to reductions by reason of the provisions of section 424 of this 
title.
    Subsec. (l). Pub. L. 85-840, Sec. 308(e), substituted ``(g)(1)(A) of 
this section'' for ``(g) of this section''.
    1956--Subsec. (a). Act Aug. 1, 1956, Sec. 101(d), inserted ``after 
any deductions under section 422(b) of this title, and after any 
reduction under section 424 of this title'' in two places.
    Subsec. (b). Act Aug. 1, 1956, Sec. 101(e), inserted paragraph 
providing that a child should not be considered to be entitled to a 
child's insurance benefit for any month in which an event specified in 
section 422(b) of this title occurs with respect to such child, and 
prohibiting any deduction from any child's insurance benefit for the 
month in which the child entitled to such benefit attained the age of 18 
or any subsequent month.
    Subsec. (b)(3). Act Aug. 1, 1956, Sec. 102(d)(11), substituted ``age 
65'' for ``retirement age'' and inserted ``any such wife's insurance 
benefit for such month was not reduced under the provisions of section 
402(q) of this title''.
    Subsec. (d). Act Aug. 1, 1956, Sec. 101(f), included events 
specified in section 422(b) of this title.
    Subsec. (e)(4)(C). Act Aug. 1, 1956, Sec. 112(a), inserted ``or 
performed outside the United States in the active military or naval 
service of the United States'' after ``performed within the United 
States by the individual as an employee''.
    Subsec. (g)(1). Act Aug. 1, 1956, Sec. 107(a), permitted reports to 
be made on or before the fifteenth day of the fourth month following the 
close of the year.
    Subsec. (h). Act Aug. 1, 1956, Sec. 101(g), included deductions by 
reason of the provisions of section 422(b) of this title, and reductions 
by reason of the provisions of section 424 of this title.
    Subsec. (k). Act Aug. 1, 1956, Sec. 112(b), inserted ``and are not 
performed in the active military or naval service of the United States'' 
after ``section 410 of this title''.
    1954--Subsec. (a). Act Sept. 1, 1954, Sec. 102(e)(7), increased 
maximum limitations on the total monthly amount of benefits.
    Subsec. (b)(1), (2). Act Sept. 1, 1954, Sec. 103(a), (i)(3), put 
into effect an annual retirement test for beneficiaries whether they 
have wage or self-employment earnings, or both, inserted provision for 
making deductions on account of nonrecovered remunerative activity 
outside the United States, and provided that deductions because of such 
provisions be made from an individual's benefits only for months in 
which he is under the age of 72, rather than 75.
    Subsec. (c). Act Sept. 1, 1954, Sec. 103(b), (i)(3), provided that 
deductions be made from a dependent's benefits for any month in which 
the primary beneficiary was under the age of 72, and for which he was 
charged with any earnings for work deduction purposes under subsec. (e) 
or on 7 or more different calendar days of which he engaged in 
noncovered remunerative activity outside the United States.
    Subsec. (d). Act Sept. 1, 1954, Sec. 103(c), provided that the 
charging of earnings shall be treated as an event occurring in the month 
to which such earnings are charged.
    Subsec. (e)(1), (2). Act Sept. 1, 1942, Sec. 103(d)(1), (2), (i)(3), 
provided a method for charging earnings to particular months of the year 
for purposes of determining the deductions required under subsecs. (b) 
and (c).
    Subsec. (e)(3)(B). Act Sept. 1, 1954, Sec. 103(d)(3), provided 
authority to presume, for purposes of charging earnings to calendar 
months, that an individual rendered services for wages of more than $80 
in any month.
    Subsec. (e)(4), (5). Act Sept. 1, 1954, Sec. 103(d)(4), added pars. 
(4) and (5).
    Subsec. (f). Act Sept. 1, 1954, Sec. 103(e), clarified the penalty 
provisions.
    Subsec. (g). Act Sept. 1, 1954, Sec. 103(f)(1), amended heading.
    Subsec. (g)(1). Act Sept. 1, 1954, Sec. 103(f)(2), (3), provided 
that if an individual entitled to any monthly benefit in a taxable year 
has earnings or wages in excess of $100 times the number of months in 
such year, he must make a report to the Secretary of his earnings for 
such taxable year, and substituted ``seventy-two'' for ``seventy-five''.
    Subsec. (g)(2). Act Sept. 1, 1954, Sec. 103(f)(4), provided a 
schedule of penalty deductions for failure to make required reports 
within the time prescribed by subsec. (g)(1) if any deduction is imposed 
because of earnings in such year.
    Subsec. (g)(3). Act Sept. 1, 1954, Sec. 103(f)(5), substituted 
``subsection (b)(1)'' for ``subsection (b)(2)'', ``earnings'' for ``net 
earnings from self-employment'', and ``such earnings'' for ``such net 
earnings'', and added a new sentence at the end.
    Subsec. (i). Act Sept. 1, 1954, Sec. 112(a), repealed subsec. (i), 
effective Sept. 1, 1954, and also provided that no deductions should be 
made pursuant to such subsec. (i) from any benefits for any month after 
August 1954.
    Subsec. (j). Act Sept. 1, 1954, Sec. 103(f)(6), (i)(3), substituted 
``seventy-two'' for ``seventy-five''.
    Subsec. (k). Act Sept. 1, 1954, Sec. 103(g), added subsec. (k).
    Subsec. (l). Act Sept. 1, 1954, Sec. 103(h), added subsec. (l).
    1952--Subsec. (a). Act July 18, 1952, Sec. 2(b)(2), increased the 
maximum and minimum monthly benefits payable a family.
    Subsecs. (b)(1), (2), (c)(1), (2), (e), (g). Act July 18, 1952, 
Sec. 4(a)-(d), substituted $75 for $50 wherever appearing.
    1950--Subsec. (a). Act Aug. 28, 1950, Sec. 102(a), amended subsec. 
(a) generally to consolidate provisions of former subsecs. (a) to (c) of 
this section and to liberalize the maximum amount of monthly benefits 
payable.
    Subsec. (b). Act Aug. 28, 1950, Sec. 103(a), provided that 
deductions are to be made from benefits for any month in which a 
beneficiary is under age 75 and either renders services for wages of 
more than $50, or is charged with net earnings from self-employment of 
more than $50, and provided that deductions are to be made for any month 
in which a wife, widow or divorced wife does not have in her care a 
child or her husband or former husband entitled to a child's insurance 
benefit.
    Subsec. (c). Act Aug. 28, 1950, Sec. 103(a), provided for the making 
of deductions from dependents benefits for any month in which the old-
age beneficiary suffers a reduction in his benefit.
    Subsec. (d). Act Aug. 28, 1950, Sec. 103(a), inserted second 
sentence.
    Subsec. (e). Act Aug. 28, 1950, Sec. 103(a), provided the method for 
charging net earnings from self-employment to the particular months of 
the taxable year for the purpose of determining deductions under 
subsecs. (b)(2) and (c)(2) of this section.
    Subsec. (f). Act Aug. 28, 1950, Sec. 103(a), continued provisions 
requiring the reporting of any event which causes a deduction from 
benefits.
    Subsec. (g). Act Aug. 28, 1950, Sec. 103(a), outlined circumstances 
under which beneficiaries with net earnings from self-employment are 
required to file report with the Federal Security Administrator.
    Subsec. (h). Act Aug. 28, 1950, Sec. 103(a), pointed out 
circumstances under which deductions otherwise required under subsecs. 
(b), (f), and (g) of this section will not be made.
    Subsecs. (i), (j). Act Aug. 28, 1950, Sec. 103(a), added subsecs. 
(i) and (j).
    1946--Subsec. (g). Act Aug. 10, 1946, Sec. 406(b), inserted 
exception limiting the first deduction for failure to report to one 
month's benefit.
    Subsec. (d)(2). Act Aug. 10, 1946, Sec. 406(a), struck out par. (2) 
which related to deductions for failure to attend school.
    1939--Act Aug. 10, 1939, amended section generally.


                    Effective Date of 1996 Amendment

    Section 102(c) of Pub. L. 104-121 provided that: ``The amendments 
made by this section [amending this section and section 423 of this 
title] shall apply with respect to taxable years ending after 1995.''


                    Effective Date of 1994 Amendment

    Amendment by section 107(a)(4) 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 this title.
    Section 309(e)(1) of Pub. L. 103-296 provided that: ``The amendments 
made by subsections (a), (b), and (c) [amending this section] shall 
apply with respect to benefits payable for months after December 1995.''
    Section 310(c) of Pub. L. 103-296 provided that: ``The amendments 
made by this section [amending this section] shall apply for the purpose 
of determining the total monthly benefits to which beneficiaries may be 
entitled under sections 202 and 223 of the Social Security Act [sections 
402 and 423 of this title] based on the wages and self-employment income 
of an individual who--
        ``(1) becomes entitled to an old-age insurance benefit under 
    section 202(a) of such Act,
        ``(2) becomes reentitled to a disability insurance benefit under 
    section 223 of such Act, or
        ``(3) dies,
after December 1995.''
    Section 314(b) of Pub. L. 103-296 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to reports of earnings for taxable years ending on or after December 31, 
1994.''
    Section 321(g)(3)(B) of Pub. L. 103-296 provided that: ``The 
amendment made by paragraph (2) [amending this section] shall be 
effective with respect to the determination of the exempt amounts 
applicable to any taxable year ending after 1994.''


                    Effective Date of 1990 Amendment

    Section 5117(a)(4) of Pub. L. 101-508 provided that:
    ``(A) In general.--Except as provided in subparagraph (B), the 
amendments made by this subsection [amending this section and section 
415 of this title] shall apply with respect to the computation of the 
primary insurance amount of any insured individual in any case in which 
a person becomes entitled to benefits under section 202 or 223 [section 
402 or 423 of this title] on the basis of such insured individual's 
wages and self-employment income for months after the 18-month period 
following the month in which this Act is enacted [November 1990], except 
that such amendments shall not apply if any person is entitled to 
benefits based on the wages and self-employment income of such insured 
individual for the month preceding the initial month of such person's 
entitlement to such benefits under section 202 or 223.
    ``(B) Recomputations.--The amendments made by this subsection shall 
apply with respect to any primary insurance amount upon the 
recomputation of such primary insurance amount if such recomputation is 
first effective for monthly benefits for months after the 18-month 
period following the month in which this Act is enacted.''
    Section 5119(e) of Pub. L. 101-508 provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and section 416 of this title] shall apply with respect to 
benefits for months after December 1990.
    ``(2) Application requirement.--
        ``(A) General rule.--Except as provided in subparagraph (B), the 
    amendments made by this section shall apply only with respect to 
    benefits for which application is filed with the Secretary of Health 
    and Human Services after December 31, 1990.
        ``(B) Exception from application requirement.--Subparagraph (A) 
    shall not apply with respect to the benefits of any individual if 
    such individual is entitled to a benefit under subsection (b), (c), 
    (e), or (f) of section 202 of the Social Security Act [section 
    402(b), (c), (e), or (f) of this title] for December 1990 and the 
    individual on whose wages and self-employment income such benefit 
    for December 1990 is based is the same individual on the basis of 
    whose wages and self-employment income application would otherwise 
    be required under subparagraph (A).''
    Section 5123(b) of Pub. L. 101-508 provided that: ``The amendments 
made by this section [amending this section, section 411 of this title, 
and section 1402 of Title 26, Internal Revenue Code] shall apply with 
respect to income received for services performed in taxable years 
beginning after December 31, 1990.''
    Section 5127(c) of Pub. L. 101-508 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
benefits for months after December 1990.''


                    Effective Date of 1989 Amendment

    Amendment by section 10208(b)(1)(A), (B) of Pub. L. 101-239 
applicable with respect to computation of average total wage amounts 
(under amended provisions) for calendar years after 1990, see section 
10208(c) of Pub. L. 101-239, set out as a note under section 430 of this 
title.
    Section 10305(f) of Pub. L. 101-239 provided that: ``The amendments 
made by this section [amending this section and sections 404, 423, and 
1383 of this title] shall apply with respect to determinations made on 
or after July 1, 1990.''


                    Effective Date of 1988 Amendment

    Section 8002(c) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section] shall apply to deaths after 
the date of the enactment of this Act [Nov. 10, 1988].''


                    Effective Date of 1986 Amendment

    Section 12108(b) of Pub. L. 99-272, as amended by Pub. L. 99-514, 
title XVIII, Sec. 1895(a), Oct. 22, 1986, 100 Stat. 2931, provided that: 
``The amendments made by subsection (a) [amending this section] shall 
apply with respect to benefits payable for months after December 1986.''


                    Effective Date of 1984 Amendment

    Section 2602(b) of Pub. L. 98-369 provided that: ``The amendment 
made by subsection (a) [amending this section] shall be effective upon 
the date of the enactment of this Act [July 18, 1984].''
    Section 2661(g)(1)(B) of Pub. L. 98-369 provided that: ``The 
amendments made by subparagraph (A) [amending this section] shall apply 
only with respect to months beginning with the second month after the 
month in which this Act is enacted [July 1984].''
    Section 2661(g)(2)(B) of Pub. L. 98-369 provided that: ``The 
amendment made by subparagraph (A) [amending this section] shall be 
effective as though it had been enacted on April 20, 1983, as a part of 
section 201 of the Social Security Amendments of 1983 [section 201 of 
Pub. L. 98-21].''
    Amendment by section 2662(c)(1) of Pub. L. 98-369 effective as 
though included in the enactment of the Social Security Amendments of 
1983, Pub. L. 98-21, see section 2664(a) of Pub. L. 98-369, set out as a 
note under section 401 of this title.
    Amendment by section 2663(a)(3) 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 this title.


                    Effective Date of 1983 Amendment

    Amendment by section 111(a)(4) of Pub. L. 98-21 applicable with 
respect to cost-of-living increases determined under section 415(i) of 
this title for years after 1982, see section 111(a)(8) of Pub. L. 98-21, 
set out as a note under section 402 of this title.
    Section 132(c)(2) of Pub. L. 98-21 provided that: ``The amendments 
made by subsection (b) [amending this section] shall apply with respect 
to monthly insurance benefits for months after December 1984.''
    Amendment by sections 306(i) and 309(f)-(h) of Pub. L. 98-21 
applicable only with respect to monthly payments payable under this 
subchapter for months after April, 1983, see section 310 of Pub. L. 98-
21, set out as a note under section 402 of this title.
    Amendment by section 324(c)(4) of Pub. L. 98-21 applicable to 
remuneration paid after Dec. 31, 1983, except for certain employer 
contributions made during 1984 under a qualified cash or deferred 
arrangement, and except in the case of an agreement with certain 
nonqualified deferred compensation plans in existence on Mar. 24, 1983, 
see section 324(d) of Pub. L. 98-21, set out as a note under section 
3121 of Title 26, Internal Revenue Code.
    Section 331(c) of Pub. L. 98-21 provided that: ``The amendments made 
by subsection (a) [amending this section] shall be effective with 
respect to payments made for months after December 1983.''
    Section 347(b) of Pub. L. 98-21 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply only with respect 
to taxable years beginning after December 1989, and only in the case of 
individuals who have attained retirement age (as defined in section 
216(l) of the Social Security Act [42 U.S.C. 416(l)].''


                    Effective Date of 1981 Amendments

    Amendment by section 2201(c)(6) of Pub. L. 97-35 and by section 2(f) 
of Pub. L. 97-123, applicable with respect to benefits for months after 
December 1981 with certain exceptions, see section 2(j)(2)-(4) of Pub. 
L. 97-123, set out as a note under section 415 of this title.
    Amendment by section 2206(b)(2)-(4) of Pub. L. 97-35 applicable only 
with respect to initial calculations and adjustments of primary 
insurance amounts and benefit amounts which are attributable to periods 
after August 1981, see section 2206(c) of Pub. L. 97-35, set out as a 
note under section 402 of this title.


                    Effective Date of 1980 Amendments

    Section 1(b) of Pub. L. 96-473 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
monthly benefits payable for months after December 1977.''
    Section 3(b) of Pub. L. 96-473 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
taxable years ending after December 31, 1977, but only with respect to 
benefits payable for months after December 1977.''
    Section 4(b) of Pub. L. 96-473 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
monthly benefits payable for months after December 1977.''
    Section 101(c) of Pub. L. 96-265 provided that: ``The amendments 
made by this section [amending this section and section 415 of this 
title] shall apply only with respect to monthly benefits payable on the 
basis of the wages and self-employment income of an individual who first 
becomes eligible for benefits (determined under sections 215(a)(3)(B) 
and 215(a)(2)(A) of the Social Security Act [section 415(a)(3)(B) and 
(2)(A) of this title], as applied for this purpose) after 1978, and who 
first becomes entitled to disability insurance benefits after June 30, 
1980.''


                    Effective Date of 1977 Amendment

    Amendment by section 202 of Pub. L. 95-216 effective with respect to 
monthly benefits under this subchapter payable for months after Dec. 
1978 and with respect to lump-sum death payments with respect to deaths 
occurring after such month, and amendment by section 204(e) of Pub. L. 
95-216 effective with respect to monthly benefits for months after May 
1978, see section 206 of Pub. L. 95-216, set out as a note under section 
402 of this title.
    Section 301(e) of Pub. L. 95-216 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
taxable years ending after December 1977.''
    Section 302(e) of Pub. L. 95-216 provided that: ``The amendments 
made by this section [amending this section] shall apply only with 
respect to taxable years ending after December 31, 1981.''
    Section 303(b) of Pub. L. 95-216 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply only with respect 
to monthly benefits payable for months after December 1977.''
    Amendment by section 353(a) of Pub. L. 95-216 effective Jan. 1, 
1979, see section 353(g) of Pub. L. 95-216, set out as a note under 
section 418 of this title.


                    Effective Date of 1973 Amendment

    Section 202(d) of Pub. L. 93-66 provided that: ``The amendments made 
by this section [amending this section] shall be effective with respect 
to taxable years beginning after December 31, 1973.''


                    Effective Date of 1972 Amendments

    Amendment by section 101(b) of Pub. L. 92-603 applicable with 
respect to monthly insurance benefits under this subchapter for months 
after December 1972 and with respect to lump-sum death payments under 
this subchapter in the case of deaths occurring after such month, see 
section 101(g) of Pub. L. 92-603, set out as a note under section 415 of 
this title.
    Section 202(a)(2)(A), (B) of Pub. L. 92-336 provided that the 
amendments made by that section are effective Jan. 1, 1974.
    Amendment by section 201(b) of Pub. L. 92-336 applicable with 
respect to monthly benefits under subchapter II of this chapter for 
months after August 1972 and with respect to lump-sum death payments 
under such subchapter in the case of deaths occurring after such month, 
see section 201(i) of Pub. L. 92-336, set out as a note under section 
415 of this title.
    Section 144(b) of Pub. L. 92-603 provided that: ``The amendments 
made by each of the paragraphs in subsection (a) [amending this section 
and sections 415 and 430 of this title] shall be effective in like 
manner as if such amendment had been included in title II of Public Law 
92-336 in the particular provision of such title referred to in such 
paragraph.''
    Amendment by section 201(h)(1) of Pub. L. 92-336 applicable with 
respect to monthly benefits under subchapter II of this chapter for 
months after December 1971, see section 201(i) of Pub. L. 92-336, set 
out as a note under section 415 of this title.
    Amendment by section 102(c) of Pub. L. 92-603 applicable with 
respect to monthly benefits under this subchapter for months after 
December 1972, see section 102(i) of Pub. L. 92-603, set out as a note 
under section 402 of this title.
    Amendment by section 107(b)(1), (2) of Pub. L. 92-603 applicable 
with respect to monthly benefits under this subchapter for months after 
December 1972, with specified exceptions, see section 107(c) of Pub. L. 
92-603, set out as a note under section 402 of this title.
    Section 105(c) of Pub. L. 92-603 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
taxable years ending after December 1972.''
    Section 106(b) of Pub. L. 92-603 provided that: ``The amendment made 
by subsection (a) [amending this section to provide for the exclusion of 
certain earnings in year of attaining age 72] shall apply with respect 
to taxable years ending after December 1972.''


                    Effective Date of 1971 Amendment

    Amendment by Pub. L. 92-5 applicable with respect to monthly 
benefits under subchapter II of this chapter for months after December 
1970 and with respect to lump-sum death payments under such subchapter 
in the case of deaths occurring in and after March 1971, see section 
201(e) of Pub. L. 92-5, set out as a note under section 415 of this 
title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 applicable with respect to monthly 
benefits under this subchapter for months after December 1969 and with 
respect to lump-sum death payments under such subchapter in the case of 
deaths occurring after December 1969, see section 1002(e) of Pub. L. 91-
172, set out as a note under section 415 of this title.


                    Effective Date of 1968 Amendment

    Amendment by section 101(b) of Pub. L. 90-248 applicable with 
respect to monthly benefits and lump-sum death benefits in the case of 
deaths occurring after January 1968, under this subchapter for months 
after January 1968, see section 101(e) of Pub. L. 90-248, set out as a 
note under section 415 of this title.
    Amendment by section 104(d)(1) of Pub. L. 90-248 applicable with 
respect to monthly benefits under this subchapter for and after the 
month of February 1968, but only on the basis of applications for such 
benefits filed in or after January 1968, see section 104(e) of Pub. L. 
90-248, set out as a note under section 402 of this title.
    Section 107(b) of Pub. L. 90-248 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to taxable years ending after December 1967.''
    Section 163(a)(2) of Pub. L. 90-248 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply only with 
respect to monthly benefits payable under title II of the Social 
Security Act [this subchapter] with respect to individuals who become 
entitled to benefits under section 202(d) of such Act [section 402(d) of 
this title] solely by reason of section 216(h)(3) of such Act [section 
416(h)(3) of this title] in or after January 1968 (but without regard to 
section 202(j)(1) of such Act [section 402(j)(1) of this title]). The 
provisions of section 170 of this Act [set out as Savings Provisions 
note below] shall not apply with respect to any such individual.''


                    Effective Date of 1965 Amendment

    Amendment by section 301(c) of Pub. L. 89-97 applicable with respect 
to monthly benefits under this subchapter for months after December 1964 
and with respect to lump-sum death benefits payments under this 
subchapter in the case of deaths occurring in or after July 1965, see 
section 301(d) of Pub. L. 89-97, set out as a note under section 415 of 
this title.
    Amendment by section 308(d)(6)-(8) of Pub. L. 89-97 applicable with 
respect to monthly insurance benefits under this subchapter beginning 
with the second month following July 1965, but, in the case of an 
individual who was not entitled to a monthly insurance benefit under 
section 402 of this title for the first month following July 1965, only 
on the basis of an application filed in or after July 1965, see section 
308(e) of Pub. L. 89-97, set out as a note under section 402 of this 
title.
    Section 310(b) of Pub. L. 89-97 provided that: ``The amendments made 
by subsection (a) [amending this section] shall apply with respect to 
taxable years ending after December 31, 1965.''
    Section 325(b) of Pub. L. 89-97 provided that: ``The amendments made 
by subsection (a) [amending this section] shall apply with respect to 
the computation of net earnings from self-employment and the net loss 
from self-employment for taxable years beginning after 1964.''


                    Effective Date of 1961 Amendment

    Section 108(b) of Pub. L. 87-64 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply in the case of 
taxable years ending after the enactment of this Act [June 30, 1961].''


                    Effective Date of 1960 Amendment

    Amendment by section 103(b) of Pub. L. 86-778 applicable only with 
respect to service performed after 1960, except that insofar as the 
carrying on of a trade or business (other than performance of service as 
an employee) is concerned, the amendment shall be 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 this title.
    Section 211(p)-(s) of Pub. L. 86-778 provided that:
    ``(p) Section 203(c), (d), (e), (g), and (i) of the Social Security 
Act [subsecs. (c), (d), (e), (g), and (i) of this section] as amended by 
this Act shall be effective with respect to monthly benefits for months 
after December 1960.
    ``(q) Section 203(b), (f), and (h) of the Social Security Act 
[subsecs. (b), (f), and (h) of this section] as amended by this Act 
shall be effective with respect to taxable years beginning after 
December 1960.
    ``(r) Section 203(l) of the Social Security Act [subsec. (l) of this 
section] as amended by this Act, to the extent that it applies to 
section 203(g) of the Social Security Act as amended by this Act, shall 
be effective with respect to monthly benefits for months after December 
1960 and, to the extent that it applies to section 203(h)(1)(A) of the 
Social Security Act as amended by this Act, shall be effective with 
respect to taxable years beginning after December 1960.
    ``(s) The amendments made by subsections (i), (j), (k), (l), (m), 
(n), and (o) [amending sections 402, 408, and 415 of this title and 
sections 228c and 228e of Title 45, Railroads], to the extent that they 
make changes in references to provisions of section 203 of the Social 
Security Act [this section], shall take effect in the manner provided in 
subsections (p) and (q) of this section for the provisions of such 
section 203 to which the respective references so changed relate.''
    Section 302(b) of Pub. L. 86-778 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply only in the 
case of monthly benefits under section 202 or section 223 of the Social 
Security Act [section 402 or section 423 of this title] for months after 
the month following the month in which this Act is enacted [September 
1960], and then only (1) if the insured individual on the basis of whose 
wages and self-employment income such monthly benefits are payable 
became entitled (without the application of section 202(j)(1) or section 
223(b) of such Act) to benefits under section 202(a) or section 223 of 
such Act after the month following the month in which this Act is 
enacted, or (2) if such insured individual died before becoming so 
entitled and no person was entitled (without the application of section 
202(j)(1) or section 223(b) of such Act) on the basis of such wages and 
self-employment income to monthly benefits under title II of the Social 
Security Act [this subchapter] for the month following the month in 
which this Act is enacted [September 1960] or any prior month.''


                    Effective Date of 1958 Amendment

    Amendment by section 101(f) of Pub. L. 85-840 applicable in the case 
of monthly benefits under subchapter II of this chapter for months after 
December 1958, and in the case of lump-sum death payments under 
subchapter II of this chapter, with respect to deaths occurring after 
such month, see section 101(g) of Pub. L. 85-840, set out as a note 
under section 415 of this title.
    Amendment by section 205(j) of Pub. L. 85-840 applicable with 
respect to monthly benefits under this subchapter for months after 
August 1958, but only if an application for such benefits is filed on or 
after Aug. 28, 1958, and amendment by section 205(k) of Pub. L. 85-840 
applicable with respect to monthly benefits under this subchapter for 
August 1958 and succeeding months, see section 207(a) of Pub. L. 85-840, 
set out as a note under section 416 of this title.
    Section 307(h)(2) of Pub. L. 85-840 provided that: ``The amendments 
made by subsection (f) [amending this section] shall apply with respect 
to monthly benefits under subsection (d) or (g) of section 202 of the 
Social Security Act [section 402 of this title] for months in any 
taxable year, of the individual to whom the person entitled to such 
benefits is married, beginning after the month in which this Act is 
enacted [August 1958].''
    Section 308(f) of Pub. L. 85-840 provided that: ``The amendments 
made by this section [amending this section] shall be applicable with 
respect to taxable years beginning after the month in which this Act is 
enacted [August 1958].''


                    Effective Date of 1956 Amendment

    Amendment by section 101(d)-(g) of act Aug. 1, 1956, applicable with 
respect to monthly benefits under section 402 of this title for months 
after December 1956, but only on the basis of an application filed after 
September 1956, see section 101(h) of act Aug. 1, 1956, set out as a 
note under section 402 of this title.
    Section 107(a) of act Aug. 1, 1956, provided that the amendment made 
by that section is applicable in the case of monthly benefits under this 
subchapter for months in any taxable year (of the individual entitled to 
such benefits) beginning after 1954.
    Section 112(c) of act Aug. 1, 1956, provided that: ``The amendments 
made by subsections (a) and (b) [amending this section] shall be 
applicable with respect to taxable years ending after 1955.''


                    Effective Date of 1954 Amendment

    Section 103(i)(3) of act Sept. 1, 1954, provided that: ``Subsections 
(b)(1), (b)(2), (c), (e), and (j) of section 203 of the Social Security 
Act [this section] as in effect prior to the enactment of this Act, to 
the extent they are in effect with respect to months after 1954, are 
each amended by striking out `seventy-five' and inserting in lieu 
thereof `seventy-two', but only with respect to such months after 
1954.''
    Amendment by section 102(e)(7) of act Sept. 1, 1954, applicable in 
the case of lump-sum death payments under section 402 of this title with 
respect to deaths occurring, and in the case of monthly benefits under 
such section for months after, August 1954, see section 102(f) of act 
Sept. 1, 1954, as amended, set out as a note under section 415 of this 
title.
    Section 103(i)(1), (2) of act Sept. 1, 1954, provided that:
    ``(1) The amendments made by subsection (f) and by paragraph (1) of 
subsection (a) of this section [amending this section] shall be 
applicable in the case of monthly benefits under title II of the Social 
Security Act [this subchapter] for months in any taxable year (of the 
individual entitled to such benefits) beginning after December 1954. The 
amendments made by paragraph (1) of subsection (b) of this section 
[amending this section] shall be applicable in the case of monthly 
benefits under such title II for months in any taxable year (of the 
individual on the basis of whose wages and self-employment income such 
benefits are payable) beginning after December 1954. The amendments made 
by subsections (e) and (g), and by paragraph (2) of subsection (a) and 
paragraph (2) of subsection (b) [amending this section] shall be 
applicable in the case of monthly benefits under such title II for 
months after December 1954. The remaining amendments made by this 
section (other than subsection (h)) [amending this section] shall be 
applicable, insofar as they are related to the monthly benefits of an 
individual which are based on his wages and self-employment income, in 
the case of monthly benefits under such title II for months in any 
taxable year (of such individual) beginning after December 1954 and, 
insofar as they are related to the monthly benefits of an individual 
which are based on the wages and self-employment income of someone else, 
in the case of monthly benefits under such title II for months in any 
taxable year (of the individual on whose wages and self-employment 
income such benefits are based) beginning after December 1954.
    ``(2) No deduction shall be imposed on or after the date of the 
enactment of this Act [Sept. 1, 1954] under subsection (f) or (g) of 
section 203 of the Social Security Act [subsec. (f) or (g) of this 
section], as in effect prior to such date, on account of failure to file 
a report of an event described in subsection (b)(1), (b)(2), or (c)(1) 
of such section (as in effect prior to such date); and no such deduction 
imposed prior to such date shall be collected after such date. In 
determining whether, under section 203(g)(2) of the Social Security Act, 
as amended by this Act, a failure to file a report is a first or 
subsequent failure, any failure with respect to a taxable year which 
began prior to January 1955 shall be disregarded.''


                    Effective Date of 1952 Amendment

    For effective date of amendment by section 2(b)(2) of act July 18, 
1952, see section 2(c)(2) of act July 18, 1952, set out as a note under 
section 415 of this title.
    Section 4(e) of act July 18, 1952, provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply in the case 
of monthly benefits under title II of the Social Security Act [this 
subchapter] for months after August 1952. The amendments made by 
subsection (b) [amending this section] shall apply in the case of 
monthly benefits under such title II for months in any taxable year (of 
the individual entitled to such benefits) ending after August 1952. The 
amendments made by subsection (c) [amending this section] shall apply in 
the case of monthly benefits under such title II for months in any 
taxable year (of the individual on the basis of whose wages and self-
employment income such benefits are payable) ending after August 1952. 
The amendments made by subsection (d) [amending this section] shall 
apply in the case of taxable years ending after August 1952. As used in 
this subsection, the term ``taxable year'' shall have the meaning 
assigned to it by section 211(e) of the Social Security Act [section 
411(e) of this title].''


                    Effective Date of 1950 Amendment

    Section 102(b) of act Aug. 28, 1950, provided that: ``The amendment 
made by subsection (a) of this section [amending this section] shall be 
applicable with respect to benefits for months after August 1950.''
    Section 103(b) of act Aug. 28, 1950, provided that: ``The amendments 
made by this section [amending this section] shall take effect September 
1, 1950, except that the provisions of subsections (d), (e), and (f) of 
section 203 of the Social Security Act [this section] as in effect prior 
to the enactment of this Act [Aug. 28, 1950] shall be applicable for 
months prior to September 1950.''


                    Effective Date of 1939 Amendment

    Section 201 of act Aug. 10, 1939, provided that the amendment made 
by that section is effective Jan. 1, 1940.


                            Savings Provision

    Section 201(h)(2) of Pub. L. 92-336 provided that: ``In any case in 
which the provisions of section 1002(b)(2) of the Social Security 
Amendments of 1969 [set out as a note under this section] were 
applicable with respect to benefits for any month in 1970, the total of 
monthly benefits as determined under section 203(a) of the Social 
Security Act [subsec. (a) of this section] shall, for months after 1970, 
be increased to the amount that would be required in order to assure 
that the total of such monthly benefits (after the application of 
section 202(q) of such Act [section 402(q) of this title]) will not be 
less than the total of monthly benefits that was applicable (after the 
application of such sections 203(a) and 202(q)) for the first month for 
which the provisions of such section 1002(b)(2) applied.''
    Section 1002(b)(2) of Pub. L. 91-172 provided that: 
``Notwithstanding any other provisions of law, when two or more persons 
are entitled to monthly insurance benefits under title II of the Social 
Security Act [this subchapter] for any month after 1969 on the basis of 
the wages and self-employment income of an insured individual (and at 
least one of such persons was so entitled for a month before January 
1971 on the basis of an application filed before 1971), the total of the 
benefits to which such persons are entitled under such title of such 
month (after the application of sections 203(a) and 202(q) of such Act 
[subsec. (a) of this section and section 402(q) of this title]) shall be 
not less than the total of the monthly insurance benefits to which such 
persons would be entitled under such title for such month (after the 
application of such sections 203(a) and 202(q)) without regard to the 
amendment made by subsection (a) of this section [amending section 415 
of this title].''
    Section 170 of Pub. L. 90-248 provided that: ``Where--
        ``(1) one or more persons were entitled (without the application 
    of section 202(j)(1) of the Social Security Act [section 402(j)(1) 
    of this title]) to monthly benefits under section 202 or 223 of such 
    Act [section 402 or 423 of this title] for January 1968 on the basis 
    of the wages and self-employment income of an individual, and
        ``(2) one or more persons (not included in paragraph (1)) become 
    entitled to monthly benefits under such section 202 [section 402 of 
    this title] for February 1968 on the basis of such wages and self-
    employment by reason of the amendments made to such Act [this 
    chapter] by sections 104 [amending this section and sections 402, 
    416, 422, and 425 of this title], 112 [amending section 402 of this 
    title], 150 [amending section 416 of this title], 151 [amending 
    section 402 of this title and section 228 of Title 45, Railroads], 
    156 [amending section 416 of this title], and 157 of this Act 
    [amending section 402 and 402 note of this title], and
        ``(3) the total of benefits to which all persons are entitled 
    under such section 202 or 223 [section 402 or 423 of this title] on 
    the basis of such wages and self-employment for February 1968 are 
    reduced by reason of section 203(a) of such Act, as amended by this 
    Act (or would, but for the penultimate sentence of such section 
    203(a), be so reduced),
then the amount of the benefit to which each such person referred to in 
paragraph (1) is entitled for months after January 1968 shall be 
increased, after the application of such section 203(a) [subsec. (a) of 
this section], to the amount it would have been if the person or persons 
referred to in paragraph (2) were not entitled to a benefit referred to 
in such paragraph.''
    Section 102(h) of act Sept. 1, 1954, provided that:
    ``(1) Where--
        ``(A) an individual was entitled (without the application of 
    section 202(j)(1) of the Social Security Act [section 402(j)(1) of 
    this title]) to an old-age insurance benefit under title II of such 
    Act [this subchapter] for August 1954;
        ``(B) one or more other persons were entitled (without the 
    application of such section 202(j)(1) [section 402(j)(1) of this 
    title]) to monthly benefits under such title for such month on the 
    basis of the wages and self-employment income of such individual; 
    and
        ``(C) the total of the benefits to which all persons are 
    entitled under such title on the basis of such individual's wages 
    and self-employment income for any subsequent month for which he is 
    entitled to an old-age insurance benefit under such title, would 
    (but for the provisions of this paragraph) be reduced by reason of 
    the application of section 203(a) of the Social Security Act 
    [subsec. (a) of this section], as amended by this Act,
then the total of benefits referred to in clause (C) for such subsequent 
month shall be reduced to whichever of the following is the larger--
        ``(D) the amount determined pursuant to section 203(a) of the 
    Social Security Act [subsec. (a) of this section], as amended by 
    this Act; or
        ``(E) the amount determined pursuant to such section, as in 
    effect prior to the enactment of this Act [Sept. 1, 1954], for 
    August 1954 plus the excess of (i) the amount of his old-age 
    insurance benefit for such month computed as if the amendments made 
    by the preceding subsections of this section [amending this section 
    and section 415 of this title] had been applicable in the case of 
    such benefit for such month over (ii) the amount of his old-age 
    insurance benefit for such month, or
        ``(F) the amount determined pursuant to section 2(d)(1) of the 
    Social Security Act Amendments of 1952 [set out as a note under 
    section 415 of this title] for August 1954 plus the excess of (i) 
    the amount of his old-age insurance benefit for such month computed 
    as if the amendments made by the preceding subsections of this 
    section had been applicable in the case of such benefit for such 
    month over (ii) the amount of his old-age insurance benefit for such 
    month.
    ``(2) Where--
        ``(A) two or more persons were entitled (without the application 
    of section 202(j)(1) of the Social Security Act [section 402(j)(1) 
    of this title]) to monthly benefits under title II of such Act [this 
    subchapter] for August 1954 on the basis of the wages and self-
    employment income of a deceased individual; and
        ``(B) to total of the benefits to which all such persons are 
    entitled on the basis of such deceased individual's wages and self-
    employment income for any subsequent month would (but for the 
    provisions of this paragraph) be reduced by reason of the 
    application of the first sentence of section 203(a) of the Social 
    Security Act [subsec. (a) of this section], as amended by this Act,
then, notwithstanding any other provision in title II of the Social 
Security Act [this subchapter], such deceased individual's average 
monthly wage shall, for purposes of such section 203(a), be whichever of 
the following is the larger:
        ``(C) his average monthly wage determined pursuant to section 
    215 of such Act [section 415 of this title], as amended by this Act; 
    or
        ``(D) his average monthly wage determined under such section 
    215, as in effect prior to the enactment of this Act [Sept. 1, 
    1954], plus $7.''


Temporary Extension of Earnings Limitations To Include All Persons Aged 
                          Less Than Seventy-two

    Section 2204 of Pub. L. 97-35 provided that:
    ``(a) Notwithstanding subsection (e) of section 302 of the Social 
Security Amendments of 1977 (91 Stat. 1531; Public Law 95-216) [set out 
as an Effective Date of 1977 Amendment note above], the amendments made 
to section 203 of the Social Security Act [this section] by subsections 
(a) through (d) of such section 302 shall, except as provided in 
subsection (b) of this section, apply only with respect to monthly 
insurance benefits payable under title II of the Social Security Act 
[this subchapter] for months after December 1982.
    ``(b) In the case of any individual whose first taxable year (as in 
effect on the date of the enactment of this Act [Aug. 13, 1981]) ending 
after December 31, 1981, begins before January 1, 1982, the amendments 
made by section 302 of the Social Security Amendments of 1977 [amending 
this section] shall apply with respect to taxable years beginning with 
such taxable year.''


Increased Exempt Amounts for Individuals Described in Subsec. (f)(8)(D); 
Notification in 1977 to 1981; Individuals Other Than Those Described in 
                            Subsec. (f)(8)(D)

    Section 301(c)(2) of Pub. L. 95-216 provided that: ``No notification 
with respect to an increased exempt amount for individuals described in 
section 203(f)(8)(D) of the Social Security Act [subsec. (f)(8)(D) of 
this section] (as added by paragraph (1) of this subsection) shall be 
required under the last sentence of section 203(f)(8)(B) of such Act in 
1977, 1978, 1979, 1980, or 1981; and section 203(f)(8)(C) of such Act 
shall not prevent the new exempt amount determined and published under 
section 203(f)(8)(A) in 1977 from becoming effective to the extent that 
such new exempt amount applies to individuals other than those described 
in section 203(f)(8)(D) of such Act (as so added).''


                 Retirement Test Exempt Amount for 1976

    By notice of the Secretary of Health, Education, and Welfare, Oct. 
22, 1975, 40 F.R. 50556, it was determined and announced that, pursuant 
to authority contained in subsec. (f)(8) of this section, the monthly 
exempt amount under the retirement test would be $230 with respect to 
taxable years ending in calendar year 1976.


                   Cost-of-Living Increase in Benefits

    For purposes of subsec. (f)(8) of this section, the increase in 
benefits provided by section 2 of Pub. L. 93-233, revising benefits 
table of section 415(a) of this title and amending sections 427(a), (b) 
and 428(b)(1), (2), (c)(3)(A), (B) of this title considered an increase 
under section 415(i) of this title, see section 3(i) of Pub. L. 93-233, 
set out as a note under section 415 of this title.


   Penalties for Failure To File Timely Reports of Earnings and Other 
                                 Events

    Section 161(c) of Pub. L. 90-248 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
any deductions imposed on or after the date of the enactment of this Act 
[Jan. 2, 1968] under subsections (g) and (h) of section 203 of the 
Social Security Act [this section] on account of failure to make a 
report required thereby.''


              Computation of Benefits for Certain Children

    Section 163(b) of Pub. L. 90-248 provided that: ``Where--
        ``(1) one or more persons were entitled (without the application 
    of section 202(j)(1) of the Social Security Act [section 402(j)(1) 
    of this title]) to monthly benefits under section 202 or 223 of such 
    Act [section 402 or 423 of this title] for January 1968 on the basis 
    of the wages and self-employment income of an individual, and
        ``(2) one or more persons became entitled to monthly benefits 
    before January 1968 under section 202(d) of such Act [section 402(d) 
    of this title] by reason of section 216(h)(3) of such Act [section 
    416(h)(3) of this section] (but without regard to section 
    202(j)(1)), on the basis of such wages and self-employment income 
    and are so entitled for January 1968, and
        ``(3) the total of benefits to which all persons are entitled 
    under such section 202 or 223 of such Act [section 402 or 423 of 
    this title] on the basis of such wages and self-employment for 
    January 1968 are reduced by reason of section 203(a) of such Act 
    [subsec. (a) of this section], as amended by this Act (or would, but 
    for the penultimate sentence of such section 203(a), be so reduced),
then the amount of the benefit to which each such person referred to in 
paragraph (1) above (but not including persons referred to in paragraph 
(2) above) is entitled for months after January 1968 shall be increased, 
after the application of such section 203(a), to the amount it would 
have been if the person or persons referred to in paragraph (2) were not 
entitled to a benefit referred to in such paragraph (2).''


   Prohibition on Imposition of Deduction for Failure To File Certain 
                            Reports of Events

    Section 209(b) of Pub. L. 86-778 provided that: ``No deduction shall 
be imposed on or after the date of the enactment of this Act [Sept. 13, 
1960] under section 203(f) of the Social Security Act [subsec. (f) of 
this section], as in effect prior to such date, on account of failure to 
file a report of an event described in section 203(c) of such Act, as in 
effect prior to such date; and no such deduction imposed prior to such 
date shall be collected after such date.''


    Prohibition on Payment of Benefits to Certain Spouses or Children

    Section 211(t) of Pub. L. 86-778 provided that: ``In any case 
where--
        ``(1) an individual has earnings (as defined in section 
    203(e)(4) of the Social Security Act [subsec. (e)(4) of this 
    section] as in effect prior to the enactment of this Act [Sept. 13, 
    1960]) in a taxable year which begins before 1961 and ends in 1961 
    (but not on December 31, 1961), and
        ``(2) such individual's spouse or child entitled to monthly 
    benefits on the basis of such individual's self-employment income 
    has excess earnings (as defined in section 203(f)(3) of the Social 
    Security Act as amended by this Act) in a taxable year which begins 
    after 1960, and
        ``(3) one or more months in the taxable year specified in 
    paragraph (2) are included in the taxable year specified in 
    paragraph (1),
then, if a deduction is imposed against the benefits payable to such 
individual with respect to a month described in paragraph (3), such 
spouse or child, as the case may be, shall not, for purposes of 
subsections (b) and (f) of section 203 of the Social Security Act as 
amended by this Act, be entitled to a payment for such month.''


                            Cross References

    Computation of primary insurance amount, see section 415 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 402, 408, 409, 415, 423, 
424a, 1382a of this title; title 5 sections 8349, 8421, 8421a, 8442; 
title 10 section 1451; title 26 sections 1402, 3127; title 30 sections 
922, 932; title 45 sections 231a, 231q.
