Page:United States Statutes at Large Volume 97.djvu/117

 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 85 SEC. 122. CREDIT FOR THE ELDERLY AND THE PERMANENTLY AND TOTALLY DISABLED. (a) GENERAL RULE. — Section 37 of the Internal Revenue Code of 1954 (relating to credit for the elderly) is amended to read as follows: 26 USC 37. "SEC. 37. CREDIT FOR THE ELDERLY AND THE PERMANENTLY AND TOTALLY DISABLED. "(a) GENERAL RULE. —In the case of a qualified individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 15 percent of such individ- ual's section 37 amount for such taxable year. "(b) QUALIFIED INDIVIDUAL. — For purposes of this section, the term ' qualified individual' means any individual— "(1) who has attained age 65 before the close of the taxable year, or "(2) who retired on disability before the close of the taxable year and who, when he retired, was permanently and totally disabled. "(c) SECTION 37 AMOUNT. —For purposes of subsection (a)— "(1) IN GENERAL. —An individual's section 37 amount for the taxable year shall be the applicable initial amount determined under paragraph (2), reduced as provided in paragraph (3) and in subsection (d). "(2) INITIAL AMOUNT— "(A) IN GENERAL.— Except as provided in subparagraph (B), the initial amount shall be— "(i) $5,000 in the case of a single individual, or a joint return where only one spouse is a qualified individual, "(ii) $7,500 in the case of a joint return where both spouses are qualified individuals, or "(iii) $3,750 in the case of a married individual filing a separate return. "(B) LIMITATION IN CASE OP INDIVIDUALS WHO HAVE NOT ATTAINED AGE 65. — "(i) IN GENERAL. —In the case of a qualified individual who has not attained age 65 before the close of the taxable year, except as provided in clause (ii), the initial amount shall not exceed the disability income for the taxable year. "(ii) SPECIAL RULES IN CASE OP JOINT RETURN —In the case of a joint return where both spouses are qualified individuals and at least one spouse has not attained age 65 before the close of the taxable year— "(I) if both spouses have not attained age 65 before the close of the taxable year, the initial amount shall not exceed the sum of such spouses' disability income, or "(n) if one spouse has attained age 65 before the close of the taxable year, the initial amount shall not exceed the sum of $5,000 plus the disability income for the taxable year of the spouse who has not attained age 65 before the close of the taxable year, "(iii) DISABILITY INCOME.— For purposes of this sub- paragraph, the term 'disability income' means the ag- gregate amount includable in the gross income of the individual for the taxable year under section 72 or

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