Page:United States Statutes at Large Volume 102 Part 1.djvu/733

 PUBLIC LAW 100-360—JULY 1, 1988

102 STAT. 695

"(ii) any qualified nonresident. "(2) SPECIAL RULES FOR JOINT RETURNS.—In the case of a joint return— "(A) WHERE PREikiiuM APPLIES TO BOTH SPOUSES.—If both spouses meet the requirements of subsection OaXl) for the taxable year— "(i) such spouses shall be treated as 1 individual for purposes of applying this section, except that "(ii) the limitation of subsection (c)(2) shall be twice the amount which would otherwise apply. "(B) WHERE PREMIUM APPLIES TO ONLY i SPOUSE.—If only 1 spouse meets the requirements of subsection (b)(1) for the taxable year— "(i) this section shall be applied separately with respect to such spouse, and "(ii) the adjusted income tax liability of such spouse shall be determined under paragraph (4)— "(1) by taking into account one-half of the income tax liability determined with respect to the joint return, and "(ID by taking into account under clause (ii) of paragraph (4)(C) only amounts attributable to such spouse. "(3)

SEPARATE RETURNS BY MARRIED INDIVIDUALS.—K

an

individual is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for the taxable year and such individual does not live apart from his spouse at all times during the taxable year— "(A) the limitation of subsection (c)(2) shall be twice the amount which would otherwise apply if both the individual and the spouse of the individual meet the requirements of subsection (b)(1) with respect to the calendar year in which the taxable year begins (determined without r^ard to subparagraph (B) of this paragraph), "(B) tf such individual does not otherwise meet the requirements of subsection (b)(D, such individual shall be treated as meeting the requirements of subsection (b)(1) for the taxable year if the spouse of such individual meets such requirements with respect to the calendar year in which the taxable year b^;ins, and "(Q in applying subparagraph (C) of paragraph (4)— "(i) the dollar limitation of clause (i) thereof shall be V of the amount which applies to a joint return where ^ both spouses meet the requirements of subsection (b)(l)> and "(ii) the individual shall be deemed to receive social security benefits during the taxable year in an amount not less than % of the aggr^ate social security benefits received by such individual and his spouse during the taxable year. "(4) ADJUSTED INCOME TAX LIABILITY.—For purposes of this section— "(A) IN GENERAL.—The term 'adjusted income tax liability' means an amount equal to the income tax liability, reduced by the excess (if any) of—

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