Page:United States Statutes at Large Volume 68A.djvu/329

 CH. 1—NORMAL TAXES AND SURTAXES

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in section 901 imposed by the foreign country or possession of the United States with respect to such refund; but no credit under this subpart, and no deduction under section 164 (relating to deduction for taxes) shall be allowed for any taxable year with respect to such tax imposed on the refund. No interest shall be assessed or collected on any amount of tax due on any redetermination by the Secretary or his delegate, resulting from a refund to the taxpayer, for any period before the receipt of such refund, except to the extent interest was paid by the foreign country or possession of the United States on such refund for such period. Subpart B—Earned Income of Citizens of United States l,i

Sec. 911. Earned income from sources without the United States. Sec. 912. Exemption for certain allowances.

SEC. 911. EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES. (a) GENERAL RULE. — The following items shall not be included in

gross income and shall be exempt from taxation under this subtitle: (1) BONA FIDE RESIDENT OF FOREIGN COUNTRY.—In the case of an individual citizen of the United States, who establishes to the satis^ faction of the Secretary or his delegate that he has been a bona fide ^ resident of a foreign country or countries for an uninterrupted period ^ which includes an entire taxable year, amounts received from sources without the United States (except amounts paid by the United States or any agency thereof) if such amounts constitute earned income (as defined in subsection (b)) attributable to such period; but such individual shall not be allowed as a deduction from his gross income any deductions (other than those allowed by section 151, relating to personal exemptions) properly allocable to or chargeable against amounts excluded from gross income under this (2) PRESENCE IN FOREIGN COUNTRY FOR 17 MONTHS.—In
 * paragraph.

the

f case of an individual citizen of the United States, who during any ^ period of 18 consecutive months is present in a foreign country or '^: countries during at least 510 full days in such period, amounts paid by the United States or an agency thereof) if such amounts ^ constitute earned income (as defined in subsection (b)) attributable ^ to such period; but such individual shall not be allowed as a deduc^ tion from his gross income any deductions (other than those allowed ^ by section 151, relating to personal exemptions) properly allocable to or chargeable against amounts excluded from gross income under " this paragraph. If the 18-month period includes the entire taxa^ ^ ble year, the amount excluded under this paragraph for such taxable year shall not exceed $20,000. If the 18-month period " does not include the entire taxable year, the amount excluded ^ under this paragraph for such taxable year shall not exceed an ' amount which bears the same ratio to $20,000 as the number of \; days in the part of the taxable year within the 18-month period ^ bears to the total number of days in such year. (b) DEFINITION OF EARNED INCOME.—For purposes of this section, the term "earned income" means wages, salaries, or professional § 911(b)
 * ' received from sources without the United States (except amounts

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