For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
The Trading with the Enemy Act, referred to in subsec. (d)(8)(B)(i), is act Oct. 6, 1917, ch. 106, 40 Stat. 411, which is classified principally to chapter 53 (§ 4301 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see section 4301 of Title 50 and Tables.
The International Emergency Economic Powers Act, referred to in subsec. (d)(8)(B)(i), is Pub. L. 95–223, title II,
2018–Subsec. (d)(3). Pub. L. 115–123 inserted before period at end “, unless such individual is serving in an area designated by the President of the United States by Executive order as a combat zone for purposes of section 112 in support of the Armed Forces of the United States”.
Subsec. (d)(8)(B)(i). Pub. L. 115–141 substituted “(50 U.S.C. 4301 et seq.)” for “(50 U.S.C. App. 1 et seq.)”.
2017—Subsec. (b)(2)(D)(ii)(II). Pub. L. 115–97, § 11002(d)(9), substituted “for ‘2016’ in subparagraph (A)(ii)” for “for ‘1992’ in subparagraph (B)”.
Subsec. (f)(1)(B). Pub. L. 115–97, § 12001(b)(3)(E)(i), substituted “section 55(b)(1)(B)” for “section 55(b)(1)(A)(ii)” and “section 55(b)(1)(A)” for “section 55(b)(1)(A)(i)” in introductory provisions.
Subsec. (f)(2)(B). Pub. L. 115–97, § 12001(b)(3)(E)(ii), substituted “section 55(b)(1)(B)” for “section 55(b)(1)(A)(ii)” in introductory provisions and in cl. (i).
2014—Subsec. (b)(2)(D)(i). Pub. L. 113–295, § 221(a)(73), amended cl. (i) generally. Prior to amendment, cl. (i) listed exclusion amounts for calendar years beginning from 1998 to 2002 and thereafter.
Subsec. (f)(1). Pub. L. 113–295, § 215(a), inserted concluding provisions.
Subsec. (f)(2)(B)(ii). Pub. L. 113–295, § 202(b), substituted “described in section 1(h)(1)(B), and the reference in section 55(b)(3)(C)(ii) to the excess described in section 1(h)(1)(C)(ii), shall each be treated as a reference to each such excess as determined” for “described in section 1(h)(1)(B) shall be treated as a reference to such excess as determined”.
2007—Subsec. (f). Pub. L. 110–172 amended heading and text generally, substituting provisions relating to determination of tax liability, special rules for determining regular tax and alternative minimum tax, and definitions for former provisions relating to determination of tax liability and tentative minimum tax.
2006—Subsec. (b)(2)(D)(ii). Pub. L. 109–222, § 515(a)(1), substituted “2005” for “2007” in introductory provisions.
Subsec. (b)(2)(D)(ii)(II). Pub. L. 109–222, § 515(a)(2), substituted “2004” for “2006”.
Subsec. (c)(1)(A). Pub. L. 109–222, § 515(b)(2)(A), inserted “to the extent such expenses do not exceed the amount determined under paragraph (2)” after “the taxable year”.
Subsec. (c)(1)(B)(i). Pub. L. 109–222, § 515(b)(1), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “16 percent of the salary (computed on a daily basis) of an employee of the United States who is compensated at a rate equal to the annual rate paid for step 1 of grade GS–14, multiplied by”.
Subsec. (c)(2) to (4). Pub. L. 109–222, § 515(b)(2)(B), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.
Subsec. (d)(4). Pub. L. 109–222, § 515(b)(2)(C)(i), substituted “, (c)(1)(B)(ii), and (c)(2)(A)(ii)” for “and (c)(1)(B)(ii)” in concluding provisions.
Subsec. (d)(7). Pub. L. 109–222, § 515(b)(2)(C)(ii), which directed substitution of “subsection (c)(4)” for “subsection (c)(3)”, was executed by substituting “subsection (c)(4)(A)” for “subsection (c)(3)(A)” to reflect the probable intent of Congress.
Subsecs. (f), (g). Pub. L. 109–222, § 515(c), added subsec. (f) and redesignated former subsec. (f) as (g).
1997—Subsec. (b)(2)(A). Pub. L. 105–34, § 1172(a)(1), substituted “equal to the exclusion amount for the calendar year in which such taxable year begins” for “of $70,000”.
Subsec. (b)(2)(D). Pub. L. 105–34, § 1172(a)(2), added subpar. (D).
1986—Subsec. (b)(2)(A). Pub. L. 99–514, § 1233(a), in amending subpar. (A) generally, substituted “an annual rate of $70,000” for “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)(1):
“In the case of taxable years beginning in: | The annual rate is: |
|---|---|
1983, 1984, 1985, 1986, or 1987 | $80,000 |
1988 | 85,000 |
1989 | 90,000 |
1990 and thereafter | 95,000.” |
Subsec. (d)(8), (9). Pub. L. 99–514, § 1233(b), added par. (8) and redesignated former par. (8) as (9).
1984—Subsec. (b)(2)(A). Pub. L. 98–369 amended table by striking out item which set the annual rate at $75,000 for taxable years beginning in 1982, substituted item setting the annual rate at $80,000 for taxable years beginning in 1983, 1984, 1985, 1986, or 1987 for items which had set annual rates of $80,000 for taxable years beginning in 1983, $85,000 for taxable years beginning in 1984, $90,000 for taxable years beginning in 1985, and $95,000 for taxable years beginning in 1986 and thereafter, and added items setting annual rates of $85,000 for taxable years beginning in 1988, $90,000 for taxable years beginning in 1989, and $95,000 for taxable years beginning in 1990 and thereafter.
1983—Subsec. (c)(3)(B)(ii). Pub. L. 97–448, § 101(c)(2), substituted “subsection (a)” for “subsection (a)(1)”.
Subsec. (d)(7), (8). Pub. L. 97–448, § 101(c)(1), added par. (7) and redesignated former par. (7) as (8).
1981—Pub. L. 97–34 amended section generally, modifying the eligibility standards of existing law, replacing the existing system of deduction for excess living costs with an exclusion of a portion of foreign earned income, and providing for an individual’s election to exclude a portion of his income or to deduct an amount for housing, based on his housing expenses.
1980—Pub. L. 96–595 § 4(c)(1), inserted “or from charitable services” after “camps” in section catchline.
Subsec. (a). Pub. L. 96–595, § 4(a), inserted “or who performs qualified charitable services in a lesser developed country,” after “hardship area”.
Pub. L. 96–222, § 108(a)(1)(C), (D), substituted “a foreign country or” for “qualified foreign” in par. (2) and, in provisions following par. (2), substituted “his gross income any deduction,” for “his gross income” and “other than the deduction allowed by section 217” for “other than the deductions allowed by sections 217”.
Subsec. (c)(1)(A). Pub. L. 96–595, § 4(b)(1), substituted “Dollar limitations” for “In general” in heading, redesignated existing provisions as cl. (i), and in cl. (i) as so redesignated, inserted “Camp residents—In the case of an individual who resides in a camp located in a hardship area” before “the amount excluded”, and added cls. (ii) and (iii).
Subsec. (c)(1)(D), (E). Pub. L. 96–595, § 4(b)(2), added subpars. (D) and (E).
1978—Pub. L. 95–615, § 202(g)(1), formerly § 202(f)(1), substituted “Income earned by individuals in certain camps” for “Earned income from sources without the United States” in section catchline.
Subsec. (a). Pub. L. 95–615, § 202(a), in introductory provisions inserted reference to an individual described in section 913(a) who, because of his employment, resides in a camp located in a hardship area, in par. (1) substituted reference to amounts received from sources within a foreign country or countries for reference to amounts received from sources without the United States, in par. (2) substituted reference to amounts received from sources within qualified foreign countries for reference to amounts received from sources without the United States, and in provisions following par. (2) struck out “any deductions (other than those allowed by section 151, relating to personal exemptions),” after “deduction from his gross income” and inserted “, other than the deductions allowed by sections 217 (relating to moving expenses)” after “subsection”.
Pub. L. 95–600, § 701(u)(10)(A), inserted provisions setting forth formula for determining amount of reduction of taxes, and struck out provisions relating to the credit against taxes.
Subsec. (c)(1)(A). Pub. L. 95–615, § 202(b), substituted “The amount excluded” for “Except as provided in subparagraphs (B) and (C), the amount excluded” and “an annual rate of $20,000 for days during which he resides in a camp” for “an annual rate of $15,000”.
Subsec. (c)(1)(B). Pub. L. 95–615, § 202(b), substituted provisions relating to conditions upon which an individual will be considered to reside in a camp because of his employment for provisions which related to the amount excluded from the gross income of an individual performing qualified charitable services.
Subsec. (c)(1)(C). Pub. L. 95–615, § 202(b), substituted provisions relating to definition of “hardship area” for provisions which related to the amount excluded from the gross income of an individual performing both qualified charitable services and other services.
Subsec. (c)(1)(D). Pub. L. 95–615, § 202(b), struck out subpar. (D) which defined “qualified charitable services”.
Subsec. (c)(7). Pub. L. 95–615, § 202(c), added par. (7).
Pub. L. 95–600, § 703(e), redesignated former par. (8) as (7). Such par. (8) was subsequently repealed by section 202(e) of Pub. L. 95–615 without taking into account the redesignation of par. (8) as (7) by Pub. L. 95–600. See 1978 Amendment note for subsec. (c)(8) below.
Subsec. (c)(8). Pub. L. 95–615, § 202(e), struck out par. (8) which related to the nonexclusion under subsec. (a) of any amount attributable to services performed in a foreign country or countries if such amount was received outside of the foreign country or countries where such services were performed and if one of the purposes was the avoidance of any tax imposed by such foreign country or countries on such amount.
Subsec. (d). Pub. L. 95–615, § 202(d)(1), redesignated subsec. (e) as (d), inserted “for the taxable year” after “section apply”, and struck out provision that an election was applicable to the taxable year for which made and to all subsequent taxable years. Former subsec. (d), which related to the computation of tax imposed by section 1 or section 1201 if an individual earned income which was excluded from gross income under subsec. (a) and which defined “net taxable income” and “net excluded earned income”, was struck out.
Subsec. (d)(1). Pub. L. 95–600, § 401(b)(4), struck out provisions respecting applicability of section 1201 of this title.
Subsecs. (e), (f). Pub. L. 95–615, § 202(d)(1), (2), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).
1977—Subsec. (d)(1)(B). Pub. L. 95–30 substituted “on the sum of (i) the amount of net excluded earned income, and (ii) the zero bracket amount” for “on the amount of net excluded earned income”.
1976—Subsec. (a). Pub. L. 94–455, §§ 1011(b)(1), 1906(b)(13)(A), struck out “or his delegate” after “Secretary” in par. (1), and in provisions following par. (2), inserted “or as a credit against the tax imposed by this chapter any credit for the amount of taxes paid or accrued to a foreign country or possession of the United States, to the extent that such deductions or credit is” after “personal exemptions)”.
Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c)(1). Pub. L. 94–455, § 1011(a), reduced the amount excludable from individual’s gross income from $20,000 to $15,000 and $20,000 for employees of charitable organizations, added special rule to be applied to income from charitable sources and other sources combined, inserted definition of “qualified charitable services”, and struck out provisions relating to $25,000 exclusion for individual who has been a bona fide resident in a foreign country for an uninterrupted period of 3 years.
Subsec. (c)(7). Pub. L. 94–455, § 1901(a)(115), struck out par. (7) relating to certain noncash remuneration from sources outside the United States.
Subsec. (c)(8). Pub. L. 94–455, § 1011(b)(2), added par. (8).
Subsecs. (d) to (f). Pub. L. 94–455, § 1011(b)(3), added subsecs. (d) and (e) and redesignated former subsec. (d) as (f).
1966—Subsec. (d). Pub. L. 89–809 designated existing text as par. (1) and added par. (2).
1964—Subsec. (c)(1)(B). Pub. L. 88–272 substituted “$25,000” for “$35,000”.
1962—Subsec. (a). Pub. L. 87–834 substituted “which constitute earned income attributable to services performed during such uninterrupted period” for “if such amounts constitute earned income (as defined in subsection (b)) attributable to such period” in par. (1), and “which constitute earned income attributable to services performed during such 18-month period” for “if such amounts constitute earned income (as defined in subsection (b)) attributable to such period” in par. (2), inserted provisions in pars. (1) and (2) requiring the amount excluded under such paragraphs to be computed by applying the special rules contained in subsec. (c), and eliminated provisions from par. (2) which limited the amount excluded under such paragraph to not more than $20,000 if the 18-month period includes the entire taxable year, and to not more than 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 if the 18-month period does not include the entire taxable year.
Subsecs. (c), (d). Pub. L. 87–834 added subsec. (c) and redesignated former subsec. (c) as (d).
1958—Subsec. (c). Pub. L. 85–866 added subsec. (c).
Pub. L. 115–123, div. D, title II, § 41116(b),
Amendment by section 11002(d)(9) of Pub. L. 115–97 applicable to taxable years beginning after
Amendment by section 12001(b)(3)(E) of Pub. L. 115–97 applicable to taxable years beginning after
Amendment by section 202(b) of Pub. L. 113–295 effective as if included in the provision of the American Taxpayer Relief Act of 2012, Pub. L. 112–240, to which such amendment relates, see section 202(f) of Pub. L. 113–295, set out as a note under section 55 of this title.
Amendment by section 215(a) of Pub. L. 113–295 effective as if included in the provisions of the Tax Technical Corrections Act of 2007, Pub. L. 110–172, to which such amendment relates, see section 215(c) of Pub. L. 113–295, set out as a note under section 56 of this title.
Amendment by section 221(a)(73) of Pub. L. 113–295 effective
Amendment by Pub. L. 110–172 effective as if included in the provisions of the Tax Increase Prevention and Reconciliation Act of 2005, Pub. L. 109–222, to which such amendment relates, with certain exceptions, see section 4(d) of Pub. L. 110–172, set out as a note under section 355 of this title.
Pub. L. 109–222, title V, § 515(d),
Pub. L. 105–34, title XI, § 1172(b),
Pub. L. 99–514, title XII, § 1233(c),
Amendment by Pub. L. 98–369 applicable to taxable years ending after
Amendment by Pub. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title.
Pub. L. 97–34, title I, § 115,
Pub. L. 96–595, § 4(d),
Amendment by section 107(a)(3)(B) of Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title.
Amendment by section 108(a)(1)(A), (C), (D) of Pub. L. 96–222 effective as if included in the Foreign Earned Income Act of 1978, Pub. L. 95–615, see section 108(a)(2)(A) of Pub. L. 96–222, set out as a note under section 3 of this title.
Amendment by section 401(b)(4) of Pub. L. 95–600 applicable to taxable years beginning after
Pub. L. 95–600, title VII, § 701(u)(10)(B),
Amendment by section 703(e) of Pub. L. 95–600 effective on
Pub. L. 95–615, title II, § 209, “(a) Except as provided in subsections (b) and (c), the amendments made by this title [see section 201(a) of Pub. L. 95–615, set out as a Short Title of 1978 Amendment note under section 1 of this title] shall apply to taxable years beginning after “(b) The amendment made by section 207(a) [amending section 3401 of this title] shall apply to remuneration paid after the date of the enactment of this Act. [“(c) “(1) A taxpayer may elect not to have the amendments made by this title [see section 201(a) of Pub. L. 95–615, set out as a Short Title of 1978 Amendment note under section 1 of this title] apply with respect to any taxable year beginning after “(2) An election under this subsection shall be filed with a taxpayer’s timely filed return for the first taxable year beginning after
Amendment by Pub. L. 95–30 applicable to taxable years beginning after
Pub. L. 94–455, title X, § 1011(d),
Amendment by section 1901(a)(115) of Pub. L. 94–455 applicable with respect to taxable years beginning after
Pub. L. 88–272, title II, § 237(b),
Pub. L. 87–834, § 11(c)(1), “(A) received after “(B) received after
Amendment by Pub. L. 85–866 applicable to taxable years beginning after
Section 703(e) of Pub. L. 95–600, cited as a credit to this section, was repealed by Pub. L. 96–222, title I, § 107(a)(3)(B),
Pub. L. 99–514, title XII, § 1232(a),
Rules similar to the rules of section 913(j)(4) of this title to apply for the purposes of applying this section for taxable years beginning in 1977 or 1978 in the case of an individual who leaves a foreign country after
Pub. L. 95–615, § 4(b), “If for any taxable year beginning in 1977—“(1) an individual is entitled to the benefits of section 911 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and“(2) such individual chooses to take to any extent the benefits of section 901 of such Code,then such individual shall be treated for such taxable year as an individual for whom an unused zero bracket amount computation is provided by section 63(e) of such Code.”
Pub. L. 95–615, title II, § 208, “(a) As soon as practicable after “(b) Each agency of the Federal Government which pays allowances excludable from gross income under section 912 of such Code shall keep such records and furnish to the Secretary of the Treasury such information as he determines to be necessary to carry out his responsibility under subsection (a).”