Notes on 26 U.S.C. § 63 : US Code - Notes

Search Notes on 26 U.S.C. § 63 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 18; Pub. L. 95-30, title I, Sec.
102(a), May 23, 1977, 91 Stat. 135; Pub. L. 95-600, title I, Sec.
101(b), Nov. 6, 1978, 92 Stat. 2769; Pub. L. 97-34, title I, Secs.
104(b), 111(b)(4), 121(b), (c)(2), Aug. 13, 1981, 95 Stat. 189,
194, 196, 197; Pub. L. 99-514, title I, Sec. 102(a), title XII,
Sec. 1272(d)(6), Oct. 22, 1986, 100 Stat. 2099, 2594; Pub. L. 100-
647, title I, Sec. 1001(b)(1), Nov. 10, 1988, 102 Stat. 3349; Pub.
L. 101-508, title XI, Secs. 11101(d)(1)(D), 11801(a)(4), Nov. 5,
1990, 104 Stat. 1388-405, 1388-520; Pub. L. 103-66, title XIII,
Sec. 13201(b)(3)(D), Aug. 10, 1993, 107 Stat. 459; Pub. L. 105-34,
title XII, Sec. 1201(a), Aug. 5, 1997, 111 Stat. 993; Pub. L. 107-
16, title III, Sec. 301(a), (b), (c)(2), June 7, 2001, 115 Stat.
53, 54; Pub. L. 107-147, title IV, Sec. 411(e), Mar. 9, 2002, 116
Stat. 46; Pub. L. 108-27, title I, Sec. 103(a), May 28, 2003, 117
Stat. 754; Pub. L. 108-311, title I, Sec. 101(b), Oct. 4, 2004, 118
Stat. 1167.)
STANDARD DEDUCTION ADJUSTMENTS FOR TAXABLE YEARS BEGINNING IN 2006
For adjustment of standard deduction, limitation on standard
deduction, and additional amounts under subsections (c)(2), (5) and
(f) of this section for taxable years beginning in 2006, see
section 3.10 of Revenue Procedure 2005-70, set out as a note under
section 1 of this title.
AMENDMENT OF SECTION
For termination of amendment by section 105 of Pub. L. 108-311,
see Effective and Termination Dates of 2004 Amendment note below.
For termination of amendment by section 107 of Pub. L. 108-27,
see Effective and Termination Dates of 2003 Amendment note below.
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
AMENDMENTS
2004 - Subsec. (c)(2). Pub. L. 108-311, Secs. 101(b)(1), 105,
temporarily reenacted heading without change and amended text
generally, substituting provisions relating to a specific
percentage for provisions relating to applicable percentage in
subpar. (A), redesignating subpar. (D) as (C), and deleting former
subpar. (C) relating to married individuals filing separately. See
Effective and Termination Dates of 2004 Amendment note below.
Subsec. (c)(4). Pub. L. 108-311, Secs. 101(b)(2)(A), 105,
temporarily substituted "(2)(C)" for "(2)(D)" in introductory
provisions and in subpar. (B)(i). See Effective and Termination
Dates of 2004 Amendment note below.
Subsec. (c)(7). Pub. L. 108-311, Secs. 101(b)(2)(B), 105,
temporarily struck out par. (7) which related to applicable
percentage for purposes of par. (2). See Effective and Termination
Dates of 2004 Amendment note below.
2003 - Subsec. (c)(7). Pub. L. 108-27, Secs. 103(a), 107,
temporarily inserted table item relating to years 2003 and 2004.
See Effective and Termination Dates of 2003 Amendment note below.
2002 - Subsec. (c)(2). Pub. L. 107-147, Sec. 411(e)(1)(E),
inserted "If any amount determined under subparagraph (A) is not a
multiple of $50, such amount shall be rounded to the next lowest
multiple of $50." at end.
Subsec. (c)(2)(A). Pub. L. 107-147, Sec. 411(e)(1)(A),
substituted "subparagraph (D)" for "subparagraph (C)".
Subsec. (c)(2)(B). Pub. L. 107-147, Sec. 411(e)(1)(B), struck out
"or" at end.
Subsec. (c)(2)(C), (D). Pub. L. 107-147, Sec. 411(e)(1)(C), (D),
added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (c)(4). Pub. L. 107-147, Sec. 411(e)(2)(C), which
directed amendment by striking out the flush sentence at the end
added by section 301(c)(2) of Public Law 107-17, was executed by
striking out "The preceding sentence shall not apply to the amount
referred to in paragraph (2)(A).", which was inserted by section
301(c)(2) of Pub. L. 107-16, to reflect the probable intent of
Congress. See 2001 Amendment note below.
Pub. L. 107-147, Sec. 411(e)(2)(A), substituted "paragraph
(2)(B), (2)(D), or (5)" for "paragraph (2) or (5)" in introductory
provisions.
Subsec. (c)(4)(B)(i). Pub. L. 107-147, Sec. 411(e)(2)(B),
substituted "paragraph (2)(B), (2)(D)," for "paragraph (2)".
2001 - Subsec. (c)(2)(A). Pub. L. 107-16, Secs. 301(a)(1), 901,
temporarily substituted "the applicable percentage of the dollar
amount in effect under subparagraph (C) for the taxable year" for
"$5,000". See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (c)(2)(B). Pub. L. 107-16, Secs. 301(a)(2), 901,
temporarily inserted "or" at end. See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (c)(2)(C). Pub. L. 107-16, Secs. 301(a)(3), 901,
temporarily substituted "in any other case." for "in the case of an
individual who is not married and who is not a surviving spouse or
head of household, or". See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(2)(D). Pub. L. 107-16, Secs. 301(a)(4), 901,
temporarily struck out subpar. (D) which read as follows: "$2,500
in the case of a married individual filing a separate return." See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (c)(4). Pub. L. 107-16, Secs. 301(c)(2), 901, temporarily
inserted at end "The preceding sentence shall not apply to the
amount referred to in paragraph (2)(A)." See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (c)(7). Pub. L. 107-16, Secs. 301(b), 901, temporarily
added par. (7). See Effective and Termination Dates of 2001
Amendment note below.
1997 - Subsec. (c)(4). Pub. L. 105-34, Sec. 1201(a)(2), in
introductory provisions, substituted "(5)" for "(5)(A)" and, in
subpar. (B), substituted "by substituting for 'calendar year 1992'
in subparagraph (B) thereof - " for "by substituting 'calendar year
1987' for 'calendar year 1992' in subparagraph (B) thereof" and
added cls. (i) and (ii).
Subsec. (c)(5)(B). Pub. L. 105-34, Sec. 1201(a)(1), substituted
"the sum of $250 and such individual's earned income" for "such
individual's earned income".
1993 - Subsec. (c)(4)(B). Pub. L. 103-66 substituted "1992" for
"1989".
1990 - Subsec. (c)(4)(B). Pub. L. 101-508, Sec. 11101(d)(1)(D),
inserted before period at end ", by substituting 'calendar year
1987' for 'calendar year 1989' in subparagraph (B) thereof".
Subsec. (h). Pub. L. 101-508, Sec. 11801(a)(4), struck out
subsec. (h) "Transitional rule for taxable years beginning in 1987"
which read as follows: "In the case of any taxable year beginning
in 1987, paragraph (2) of subsection (c) shall be applied -
"(1) by substituting '$3,760' for '$5,000',
"(2) by substituting '$2,540' for '$4,400',
"(3) by substituting '$2,540' for '$3,000', and
"(4) by substituting '$1,880' for '$2,500'.
The preceding sentence shall not apply if the taxpayer is entitled
to an additional amount determined under subsection (f) (relating
to additional amount for aged and blind) for the taxable year."
1988 - Subsec. (c)(5). Pub. L. 100-647 substituted "basic
standard deduction" for "standard deduction" in heading and text.
1986 - Subsec. (a). Pub. L. 99-514, Sec. 102(a), substituted "In
general" for "Corporations" in heading and amended text generally.
Prior to amendment, text read as follows: "For purposes of this
subtitle, in the case of a corporation, the term 'taxable income'
means gross income minus the deductions allowed by this chapter."
Subsec. (b). Pub. L. 99-514, Sec. 102(a), substituted
"Individuals who do not itemize their deductions" for "Individuals"
in heading and amended text generally. Prior to amendment, text
read as follows: "For purposes of this subtitle, in the case of an
individual, the term 'taxable income' means adjusted gross income -

"(1) reduced by the sum of -
"(A) the excess itemized deductions,
"(B) the deductions for personal exemptions provided by
section 151, and
"(C) the direct charitable deduction, and
"(2) increased (in the case of an individual for whom an unused
zero bracket amount computation is provided by subsection (e)) by
the unused zero bracket amount (if any)."
Subsec. (c). Pub. L. 99-514, Sec. 102(a), substituted "Standard
deduction" for "Excess itemized deductions" in heading and amended
text generally. Prior to amendment, text read as follows: "For
purposes of this subtitle, the term 'excess itemized deductions'
means the excess (if any) of -
"(1) the itemized deductions, over
"(2) the zero bracket amount."
Subsec. (c)(6)(C) to (E). Pub. L. 99-514, Sec. 1272(d)(6),
redesignated subpars. (D) and (E) as (C) and (D), respectively, and
struck out former subpar. (C) which read as follows: "a citizen of
the United States entitled to the benefits of section 931 (relating
to income from sources within possessions of the United States),".
Subsec. (d). Pub. L. 99-514, Sec. 102(a), substituted "Itemized
deductions" for "Zero bracket amount" in heading and amended text
generally. Prior to amendment, subsec. (d) read as follows: "For
purposes of this subtitle, the term 'zero bracket amount' means -
"(1) in the case of an individual to whom subsection (a), (b),
(c), or (d) of section 1 applies, the maximum amount of taxable
income on which no tax is imposed by the applicable subsection of
section 1, or
"(2) zero in any other case."
Subsec. (e). Pub. L. 99-514, Sec. 102(a), substituted "Election
to itemize" for "Unused zero bracket amount" in heading.
Subsec. (e)(1). Pub. L. 99-514, Sec. 102(a), substituted "In
general" for "Individuals for whom computation must be made" in
heading and amended text generally. Prior to amendment, text read
as follows: "A computation for the taxable year shall be made under
this subsection for the following individuals:
"(A) a married individual filing a separate return where either
spouse itemized deductions,
"(B) a nonresident alien individual,
"(C) a citizen of the United States entitled to the benefits of
section 931 (relating to income from sources within possessions
of the United States), and
"(D) an individual with respect to whom a deduction under
section 151(e) is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins."
Subsec. (e)(2). Pub. L. 99-514, Sec. 102(a), substituted "Time
and manner of election" for "Computation" in heading and amended
text generally. Prior to amendment, text read as follows: "For
purposes of this subtitle, an individual's unused zero bracket
amount for the taxable year is an amount equal to the excess (if
any) of -
"(A) the zero bracket amount, over
"(B) the itemized deductions.
In the case of an individual referred to in paragraph (1)(D), if
such individual's earned income (as defined in section 911(d)(2))
exceeds the itemized deductions, such earned income shall be
substituted for the itemized deductions in subparagraph (B)."
Subsec. (e)(3). Pub. L. 99-514, Sec. 102(a), in amending subsec.
(e) generally, added par. (3).
Subsec. (f). Pub. L. 99-514, Sec. 102(a), substituted "Aged or
blind additional amounts" for "Itemized deductions" in heading and
amended text generally. Prior to amendment, text read as follows:
"For purposes of this subtitle, the term 'itemized deductions'
means the deductions allowable by this chapter other than -
"(1) the deductions allowable in arriving at adjusted gross
income,
"(2) the deductions for personal exemptions provided by section
151, and
"(3) the direct charitable deduction."
Subsec. (g). Pub. L. 99-514, Sec. 102(a), amended subsec. (g)
generally, substituting provision that marital status be determined
under section 7703 for provisions relating to election to itemize.
See subsec. (e).
Subsec. (h). Pub. L. 99-514, Sec. 102(a), substituted
"Transitional rule for taxable years beginning in 1987" for
"Marital status" in heading and amended text generally. Prior to
amendment, text read as follows: "For purposes of this section,
marital status shall be determined under section 143."
Subsec. (i). Pub. L. 99-514, Sec. 102(a), in amending section
generally, struck out subsec. (i), "Direct charitable deduction",
which read as follows: "For purposes of this section, the term
'direct charitable deduction' means that portion of the amount
allowable under section 170(a) which is taken as a direct
charitable deduction for the taxable year under section 170(i)."
1981 - Subsec. (b)(1)(C). Pub. L. 97-34, Sec. 121(b)(1), added
subpar. (C).
Subsec. (d). Pub. L. 97-34, Sec. 104(b), substituted a blanket
reference to individuals to whom subsection (a), (b), (c), or (d)
of section 1 applies and the maximum amount of taxable income on
which no tax is imposed by the applicable subsection of section 1
for provisions specifically referring to amounts of $3,400 in the
case of (A) a joint return under section 6013, or (B) a surviving
spouse (as defined in section 2(a)), $2,300 in the case of an
individual who is not married and who is not a surviving spouse (as
so defined), and $1,700 in the case of a married individual filing
a separate return.
Subsec. (e)(2). Pub. L. 97-34, Sec. 111(b)(4), substituted
"section 911(d)(2)" for "section 911(b)" in provisions following
subpar. (B).
Subsec. (f)(3). Pub. L. 97-34, Sec. 121(c)(2), added par. (3).
Subsec. (i). Pub. L. 97-34, Sec. 121(b)(2), added subsec. (i).
1978 - Pub. L. 95-600 substituted "$3,400" for "$3,200" in par.
(1), "$2,300" for "$2,200" in par. (2), and "$1,700" for "$1,600"
in par. (3).
1977 - Pub. L. 95-30 completely revised definition of taxable
income from one using the concept of a standard deduction and
consisting of subsecs. (a) and (b) entitled, respectively, "General
rule" and "Individuals electing standard deduction" to definition
using the concepts of zero bracket amounts and excess itemized
deductions and consisting of subsecs. (a) to (h) entitled,
respectively, "Corporations", "Individuals", "Excess itemized
deductions", "Zero bracket amount", "Unused zero bracket amount",
"Itemized deductions", "Election to itemize", and "Marital status".
EFFECTIVE AND TERMINATION DATES OF 2004 AMENDMENT
Amendment by section 101(b) of Pub. L. 108-311 applicable to
taxable years beginning after Dec. 31, 2003, see section 101(e) of
Pub. L. 108-311, set out as a note under section 1 of this title.
Amendment by section 101(b) of Pub. L. 108-311 subject to title
IX of the Economic Growth and Tax Relief Reconciliation Act of
2001, Pub. L. 107-16, Sec. 901, to the same extent and in the same
manner as the provisions of such Act to which such amendments
relate, see section 105 of Pub. L. 108-311, set out as a note under
section 1 of this title.
EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT
Pub. L. 108-27, title I, Sec. 103(c), May 28, 2003, 117 Stat.
754, provided that: "The amendments made by this section [amending
this section and provisions set out as an Effective and Termination
Dates of 2001 Amendment note under section 1 of this title] shall
apply to taxable years beginning after December 31, 2002."
Amendments by title I of Pub. L. 108-27 subject to title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub.
L. 107-16, Sec. 901, to the same extent and in the same manner as
the provisions of such Act to which such amendments relate, see
section 107 of Pub. L. 108-27, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 effective as if included in the
provisions of the Economic Growth and Tax Relief Reconciliation Act
of 2001, Pub. L. 107-16, to which such amendment relates, see
section 411(x) of Pub. L. 107-147, set out as a note under section
25B of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to taxable years beginning
after Dec. 31, 2002, see section 301(d) of Pub. L. 107-16, as
amended, set out as a note under section 1 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to taxable years beginning
after Dec. 31, 1997, see section 1201(c) of Pub. L. 105-34, set out
as a note under section 59 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to taxable years beginning
after Dec. 31, 1992, see section 13201(c) of Pub. L. 103-66, set
out as a note under section 1 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11101(d)(1)(D) of Pub. L. 101-508 applicable
to taxable years beginning after Dec. 31, 1990, see section
11101(e) of Pub. L. 101-508, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 102(a) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 151(a) of
Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1272(d)(6) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 1277 of Pub. L. 99-514,
set out as a note under section 931 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 104(b) of Pub. L. 97-34 applicable to
taxable years beginning after Dec. 31, 1984, see section 104(e) of
Pub. L. 97-34, set out as a note under section 1 of this title.
Amendment by section 111(b)(4) of Pub. L. 97-34 applicable with
respect to taxable years beginning after Dec. 31, 1981, see section
115 of Pub. L. 97-34, set out as a note under section 911 of this
title.
Amendment by section 121(b), (c)(2) of Pub. L. 97-34 applicable
to contributions made after Dec. 31, 1981, in taxable years
beginning after such date, see section 121(d) of Pub. L. 97-34, set
out as a note under section 170 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 effective with respect to taxable
years beginning after Dec. 31, 1978, see section 101(f)(1) of Pub.
L. 95-600, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by section 11801 of Pub.
L. 101-508 be construed to affect treatment of certain transactions
occurring, property acquired, or items of income, loss, deduction,
or credit taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 45K of this title.