Page:United States Statutes at Large Volume 95.djvu/216

 95 STAT. 190

PUBLIC LAW 97-34—AUG. 13, 1981

(C) by adding at the end thereof the following new sen"Exemption tence: "For purposes of this subparagraph, the term 'exemp^™°""*^ tion amount' has the meaning given to such term by section 151(f)." 26 USC 1 note. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1984.

Subtitle B—Income Earned Abroad

26 USC 911.

SEC. 111. PARTIAL EXCLUSION FOR EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES AND FOREIGN HOUSING COSTS. (a) IN GENERAL.—Section 911 (relating to income earned by individuals in certain camps) is amended to read as follows: "SEC. 911. CITIZENS OR RESIDENTS OF THE UNITED STATES LIVING ABROAD. "(a) EXCLUSION FROM GROSS INCOME.—At the election of a qualified individual (made separately with respect to paragraphs (1) and (2)), there shall be excluded from the gross income of such individual, and exempt from taxation under tMg subtitle, for any taxable year— "(1) the foreign earned income of such individual, and "(2) the housing cost amount of such individual. "(b) FOREIGN EARNED INCOME.—

"(1) DEFINITION.—For purposes of this section— "(A) IN GENERAL.—The term 'foreign earned income' with respect to any individual means the amount received by such individual from sources within a foreign country or countries which constitute earned income attributable to services performed by such individual during the period described in subparagraph (A) or (B) of subsection (a)(D, whichever is applicable. (B) CERTAIN AMOUNTS NOT INCLUDED IN FOREIGN EARNED

INCOME.—The foreign earned income for an individual shall not include amounts— "(i) received as a pension or annuity, "(ii) paid by the United States or an agency thereof to an employee of the United States or an agency thereof, "(iii) included in gross income by reason of section 402(b) (relating to taxability of beneficiary of nonexempjt trust) or section 403(c) (relating to taxabuity of beneficiary under a nonqualified annuity), or (iv) received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed. "(2) LIMITATION ON FOREIGN EARNED INCOME.—

"(A) IN GENERAL.—The foreign earned income of an individual which may be excluded under subsection (a)(1) for any taxable year shall not exceed the amount of foreign earned income computed on a daily basis at the annual rate set forth in the following table for each day of the taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(l): "In the case of taxable years beginning in: 1982 1983

The annual rate is: $75,000 80,000

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