Page:United States Statutes at Large Volume 89.djvu/91

 PUBLIC LAW 94-12—MAR. 29, 1975 "(c) DEFINITIONS.—For purposes of this section— "(1) ELIGIBLE INDIVIDUAL.—The term 'eligible individual' means an individual who, for the taxable year— " (A) maintains a household (within the meaning of section 214(b)(3)) in the United States which is the principal place of abode of that individual and of a child of that individual with respect to whom he is entitled to claim a deduction under section 151(e)(1)(B) (relating to additional exemption for dependents), and " (B) is not entitled to exclude any amount from gross income under section 911 (relating to earned income from sources without the United States) or section 931 (relating to income from sources within the possessions of the United States). "(2)

26 USC 214. 26 USC 151. 26 USC 911. 26 USC 931.

E A R N E D INCOME.—

" (A) The term 'earned income' means— "(i) wages, salaries, tips, and other employee compensation, plus "(ii) the amount of the taxpayer's net earnings from self-employment for the taxable year (within the meaning of section 1402(a)). "(B) For purposes of subparagraph (A) — "(i) except as provided in clause (ii), any amount shall be taken into account only if such amount is includible in the gross income of the taxpayer for the taxable year, " (ii) the earned income of an individual shall be computed without regard to any community property laws, " (iii) no amount received as a pension or annuity shall be taken into account, and "(iv) no amount to which section 871(a) applies (relating to income of nonresident alien individuals not connected with United States business) shall be taken into account. "(d) MARRIED INDIVIDUALS.—In the case of an individual who is married (within the meaning of section 143), this section shall apply only if a joint return is filed for the taxable year under section 6013. "(e)

89 STAT. 31

26 USC 1402.

26 USC 871.

26 USC 143. 26 USC 6013.

TAXABLE YEAR MUST B E FULL TAXABLE YEAR.—Except in the

case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months." (b) R E F U N D To B E MADE W H E R E CREDIT EXCEEDS LIABILITY FOR TAX.—

(1) Section 6401(b) (relating to excessive credits) is amended— (A) by inserting "43 (relating to earned income credit)," before "and 667(b)"; and (B) by striking out "and 39" and inserting in lieu thereof a comma and ", 39, and 43". (2) Section 6201(a)(4) (relating to assessment authority) is amended by— (A) inserting "or 43" after "section 39" in the caption of such section; and (B) striking out "oil)," and inserting in lieu thereof "oil) or section 43 (relating to earned income),".

26 USC 6401. ^««e, p. 30. 26 USC 39. 26 USC 6201.

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