Page:United States Statutes at Large Volume 102 Part 1.djvu/734

 102 STAT. 696

PUBLIC LAW 1 0 0 - 3 6 0 - J U L Y 1, 1988 "(i) 15 percent of the governmental retiree exclusion amount (if any) determined under subparagraph (C) for the taxable year, over "(ii) the amount of the credit allowable under section 22 for the taxable year. "(B) INCOBCE TAX LIABILITY.—The term 'income tax liability' means— "(i) the tax imposed by this chapter (determined without regard to this section), reduced by "(ii) the credits allowed under part IV of this subchapter (other than under sections 31, 33, and 34). "(C) GOVERNMENTAL RETIREE EXCLUSION AMOUNT.—The

governmental retiree exclusion amount for any taxable year is the lesser of— "(i) $6,000 ($9,000 in the case of a joint return where both spouses meet the requirements of subsection (b)(l) for the taxable year), or "(ii) the amount which is received as an annuity (whether for a period certain or during 1 or more lives) under a governmental plan (as defined in the 1st sentence of section 414(d)) and which is includible in gross income under section 72 for the taxable year. The amount determined under the preceding sentence shall be reduced by the social security benefits (as defined in section 86(d)) received during the taxable year. "(D) INDEXING.—In the case of any taxable year beginning in a calendar year after 1989, subparagraph (C)(i) shall be applied by substituting for each doUar amount contained in such subparagraph an amount equal to— "(i) the dollar amount which would be in effect under subparagraph (C)(i) for taxable years beginning in the preceding calendar year without r^ard to the last sentence of this subparagraph, increased by "(ii) the cost-of-living adjustment determined under section 215(i) of the Social Security Act for the calendar year in which the taxable year begins. Any amount determined under the preceding sentence shall be rounded to the nearest multiple of $50. "(5) QUALIFIED NONRESIDENT.—

"(A) IN GENERAL.—For purposes of paragraph (1), the term 'qualified nonresident' means, with respect to any month during the taxable year, any individual if— "(i) such individual is not furnished during such taxable year or any of the 4 preceding taxable years any service for which a claim for payment is made under part A of title XVIII of the Social Security Act, "(ii) such individual is not entitled to benefits under part B of title XVUI of the Social Security Act at any time during such taxable year or any of the 4 preceding taxable years, and "(iii) such individu£d is present in a foreign country or countries for at least 330 full days during— "(I) the 12-month period ending at the close of the taxable year, and "(ID each of the 4 consecutive preceding 12month periods.

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