Page:United States Statutes at Large Volume 90 Part 2.djvu/98

 90 STAT. 1566 26 USC 3402.

26 USC 105.

PUBLIC LAW 94-455—OCT. 4, 1976 (3) Paragraph (4) of section 3402(m) (relating to withholding allowances based on itemized deductions) is amended by striking out " and " a t the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", and", and by adding at the end thereof the following new subparagraph: " (C) may take into account tax credits to which employees are entitled." SEC. 505. CHANGES IN EXCLUSIONS FOR SICK PAY AND CERTAIN MILITARY, ETC, DISABILITY PENSIONS; CERTAIN DISABILITY INCOME. (a) S I C K PAY.—Subsection (d) of section 105 (relating to amounts excluded from gross income under wage continuation plans) is amended to read as follows: "(d)

CERTAIN DISABILITY P A Y M E N T S. —

" (1) I N GENEKAL.—In the case of a taxpayer who— " (A) has not attained age 65 before the close of the taxable year, and "(13) retired on disability and, when he retired, was permanently and totally disabled, gross income does not include amounts referred to in subsection (a) if such amounts constitute wages or payuients in lieu of wages for a period during which the employee is absent from work on account of permanent and total disability. " (2) LIMITATION.—This subsection shall not a p p l y to the extent that the amounts referred to in paragraph (1) exceed a weekly rate of $100. " (3) PHASEOUT OVER $I5,000.—If the adjusted gross income of the tax p a y e r for the taxable year (determined without regard to this subsection) exceeds $15,000, the amount which b u t for this paragraph would be excluded under this subsection for the taxable year shall be reduced by an amount equal to the excess of the adjusted gross income (as so determined) over $15,000. " (4)

MARRIED COUPLE MUST FILE JOINT RETURN.—Except in

the

case of a husband and wife who live a part at all times during the taxable year, if the tax p a y e r is married a t the close of the taxable year, the exclusion provided by this subsection shall be allowed only if the tax p a y e r and his spouse file a joint return for the taxable year. For purposes of this subsection, marital status shall be determined under section 143. "(5)

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P E R M A N E N T AND TOTAL DISAIULTTY DEFINED.—For

pur-

poses of this subsection, an individual is permanently and totally disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. A n individual shall not be considered to be permanently and totally disabled unless he furnishos proof of the existence thereof in such form and manner, and at such times, as the Secretary may require. " (6) JOINT RETURN.—For purposes of this subsection, the term 'joint retuiTi' means the joint return of a husband and wife made under section 6013. " (7) COORDINATION W^ITII SECTION 72.—In the case of an individ-

ual described in subparagraph s (A) and (B) of paragraph (1), for purposes of section 72 the annuity starting date shall not

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