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Internal Revenue Code, § 63. Taxable Income Defined

I.R.C. § 63(a) In General
Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction).
I.R.C. § 63(b) Individuals Who Do Not Itemize Their Deductions
In the case of an individual who does not elect to itemize his deductions for the taxable year, for purposes of this subtitle, the term “taxable income” means adjusted gross income, minus—
I.R.C. § 63(b)(1)
the standard deduction,
I.R.C. § 63(b)(2)
the deduction for personal exemptions provided in section 151, and
I.R.C. § 63(b)(3)
any deduction provided in section 199A.
I.R.C. § 63(c) Standard Deduction
For purposes of this subtitle—
I.R.C. § 63(c)(1) In General
Except as otherwise provided in this subsection, the term “standard deduction” means the sum of—
I.R.C. § 63(c)(1)(A)
the basic standard deduction, and
I.R.C. § 63(c)(1)(B)
the additional standard deduction.
I.R.C. § 63(c)(2) Basic Standard Deduction
For purposes of paragraph (1), the basic standard deduction is—
I.R.C. § 63(c)(2)(A)
200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of—
I.R.C. § 63(c)(2)(A)(i)
a joint return, or
I.R.C. § 63(c)(2)(A)(ii)
a surviving spouse (as defined in section 2(a)),
I.R.C. § 63(c)(2)(B)
$4,400 in the case of a head of household (as defined in section 2(b)), or
I.R.C. § 63(c)(2)(C)
$3,000 in any other case.
I.R.C. § 63(c)(3) Additional Standard Deduction For Aged And Blind
For purposes of paragraph (1), the additional standard deduction is the sum of each additional amount to which the taxpayer is entitled under subsection (f).
I.R.C. § 63(c)(4) Adjustments For Inflation
In the case of any taxable year beginning in a calendar year after 1988, each dollar amount contained in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to—
I.R.C. § 63(c)(4)(A)
such dollar amount, multiplied by
I.R.C. § 63(c)(4)(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting for “calendar year 2016” in subparagraph (A)(ii) thereof—
I.R.C. § 63(c)(4)(B)(i)
“calendar year 1987” in the case of the dollar amounts contained in paragraph (2)(B), (2)(C), or (5)(A) or subsection (f), and
I.R.C. § 63(c)(4)(B)(ii)
“calendar year 1997” in the case of the dollar amount contained in paragraph (5)(B).
I.R.C. § 63(c)(5) Limitation On Basic Standard Deduction In The Case Of Certain Dependents
In the case of an individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the basic standard deduction applicable to such individual for such individual's taxable year shall not exceed the greater of—
I.R.C. § 63(c)(5)(A)
$500, or
I.R.C. § 63(c)(5)(B)
the sum of $250 and such individual's earned income.
I.R.C. § 63(c)(6) Certain Individuals, Etc., Not Eligible For Standard Deduction
In the case of—
I.R.C. § 63(c)(6)(A)
a married individual filing a separate return where either spouse itemizes deductions,
I.R.C. § 63(c)(6)(B)
a nonresident alien individual,
I.R.C. § 63(c)(6)(C)
an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or
I.R.C. § 63(c)(6)(D)
an estate or trust, common trust fund, or partnership, the standard deduction shall be zero.
I.R.C. § 63(c)(7) Special Rules For Taxable Years 2018 Through 2025
In the case of a taxable year beginning after December 31, 2017, and before January 1, 2026—
I.R.C. § 63(c)(7)(A) Increase In Standard Deduction
Paragraph (2) shall be applied—
I.R.C. § 63(c)(7)(A)(i)
by substituting “$18,000” for “$4,400” in subparagraph (B), and
I.R.C. § 63(c)(7)(A)(ii)
by substituting “$12,000” for “$3,000” in subparagraph (C).
I.R.C. § 63(c)(7)(B) Adjustment For Inflation
I.R.C. § 63(c)(7)(B)(i) In General
Paragraph (4) shall not apply to the dollar amounts contained in paragraphs (2)(B) and (2)(C).
I.R.C. § 63(c)(7)(B)(ii) Adjustment of Increased Amounts
In the case of a taxable year beginning after 2018, the $18,000 and $12,000 amounts in subparagraph (A) shall each be increased by an amount equal to
I.R.C. § 63(c)(7)(B)(ii)(I)
such dollar amount, multiplied by
I.R.C. § 63(c)(7)(B)(ii)(II)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2017’ for ‘2016’ in subpara- graph (A)(ii) thereof.
If any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.
I.R.C. § 63(d) Itemized Deductions
For purposes of this subtitle, the term “itemized deductions" means the deductions allowable under this chapter other than—
I.R.C. § 63(d)(1)
the deductions allowable in arriving at adjusted gross income,
I.R.C. § 63(d)(2)
the deduction for personal exemptions provided by section 151, and
I.R.C. § 63(d)(3)
any deduction provided in section 199A.
I.R.C. § 63(e) Election To Itemize
I.R.C. § 63(e)(1) In General
Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. For purposes of this subtitle, the determination of whether a deduction is allowable under this chapter shall be made without regard to the preceding sentence.
I.R.C. § 63(e)(2) Time And Manner Of Election
Any election under this subsection shall be made on the taxpayer's return, and the Secretary shall prescribe the manner of signifying such election on the return.
I.R.C. § 63(e)(3) Change Of Election
Under regulations prescribed by the Secretary, a change of election with respect to itemized deductions for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations—
I.R.C. § 63(e)(3)(A)
the spouse makes a change of election with respect to itemized deductions, for the taxable year covered in such separate return, consistent with the change of treatment sought by the taxpayer, and
I.R.C. § 63(e)(3)(B)
the taxpayer and his spouse consent in writing to the assessment (within such period as may be agreed on with the Secretary) of any deficiency, to the extent attributable to such change of election, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law.
This paragraph shall not apply if the tax liability of the taxpayer's spouse for the taxable year corresponding to the taxable year of the taxpayer has been compromised under section 7122.
I.R.C. § 63(f) Aged Or Blind Additional Amounts
I.R.C. § 63(f)(1) Additional Amounts For The Aged
The taxpayer shall be entitled to an additional amount of $600—
I.R.C. § 63(f)(1)(A)
for himself if he has attained age 65 before the close of his taxable year, and
I.R.C. § 63(f)(1)(B)
for the spouse of the taxpayer if the spouse has attained age 65 before the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151(b).
I.R.C. § 63(f)(2) Additional Amount For Blind
The taxpayer shall be entitled to an additional amount of $600—
I.R.C. § 63(f)(2)(A)
for himself if he is blind at the close of the taxable year, and
I.R.C. § 63(f)(2)(B)
for the spouse of the taxpayer if the spouse is blind as of the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151(b).
For purposes of subparagraph (B), if the spouse dies during the taxable year the determination of whether such spouse is blind shall be made as of the time of such death.
I.R.C. § 63(f)(3) Higher Amount For Certain Unmarried Individuals
In the case of an individual who is not married and is not a surviving spouse, paragraphs (1) and (2) shall be applied by substituting “$750” for “$600”.
I.R.C. § 63(f)(4) Blindness Defined
For purposes of this subsection, an individual is blind only if his central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
I.R.C. § 63(g) Marital Status
For purposes of this section, marital status shall be determined under section 7703.
(Aug. 16, 1954, ch. 736, 68A Stat. 18; May 23, 1977, Pub. L. 95-30, title I, Sec. 102(a), 91 Stat. 135; Nov. 6, 1978, Pub. L. 95-600, title I, Sec. 101(b), 92 Stat. 2769; Aug. 13, 1981, Pub. L. 97-34, title I, Sec. 104(b), 111(b)(4), 121(b), (c)(2), 95 Stat. 189, 194, 196, 197; Oct. 22, 1986, Pub. L. 99-514, title I, Sec. 102(a), title XII, Sec. 1272(d)(6), 100 Stat. 2099, 2594; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1001(b)(1), 102 Stat. 3349; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11101(d)(1)(D), 11801(a)(4), 104 Stat. 1388-405, 1388-520; Pub. L. 103-66, title XIII, Sec. 13201(b)(3)(D), Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title XII, Sec. 1201(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 107-16, title III, Sec. 301, June 7, 2001, 115 Stat. 38; Pub. L. 107-147, title IV, Sec. 411(e), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-27, title I, Sec. 103, May 28, 2003, 117 Stat. 752; Pub. L. 108-311, title I, Sec. 101(b), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 110-289, div. C, title I, Sec. 3012, July 30, 2008, 122 Stat. 2654; Pub. L. 110-343, div. C, title II, VII, Sec. 204(a), 706(b), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-5, div. B, title I, Sec. 1008, Feb. 17, 2009, 123 Stat. 115; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(13), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-97, title I, Sec. 11002(d)(1)(K), 11011(b), 11021(a), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. T, Sec. 101(a)(2)(A), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (b)(3). Pub. L. 115-141, Div. T, Sec. 101(a)(2)(A), amended par. (3) by substituting “any deduction” for “the deduction”.
Subsec. (d)(3). Pub. L. 115-141, Div. T, Sec. 101(a)(2)(A), amended par. (3) by substituting “any deduction” for “the deduction”.
2017 - Subsec. (b). Pub. L. 115-97, Sec. 11011(b)(2), amended subsec. (b) by striking ‘‘and’’ at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ‘‘, and’’, and adding subparagraph (3).
Subsec. (c)(4)(B). Pub. L. 115-97, Sec. 11002(d)(1)(K), amended subpar. (B) by striking ‘‘for ‘calendar year 1992’ in subparagraph (B)’’ and inserting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’.
Subsec. (d)(1)-(3). Pub. L. 115-97, Sec. 11011(b)(3), amended subsec. (d) by striking ‘‘and’’ at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ‘‘, and’’, and adding subparagraph (3).
Subsec. (c). Pub. L. 115-97, Sec. 11021(a), amended subsec. (c) by adding par. (7).
2014 - Subsec. (c)(1). Pub. L. 113-295, Div. A, Sec. 221(a)(13)(A), amended par. (1) by substituting “(A) the basic standard deduction, and (B) the additional standard deduction” for “the sum of—(A) the basic standard deduction, (B) the additional standard deduction, (C) in the case of any taxable year beginning in 2008 or 2009, the real property tax deduction, (D) the disaster loss deduction, and (E) the motor vehicle sales tax deduction”.
Subsec. (c)(7)-(9). Pub. L. 113-295, Div. A, Sec. 221(a)(13)(B), amended subsec. (c) by striking pars. (7), (8), and (9). Before being struck, they read as follows:
“(7) Real Property Tax Deduction.—For purposes of paragraph (1), the real property tax deduction is the lesser of—
“(A) the amount allowable as a deduction under this chapter for State and local taxes described in section 164(a)(1), or
“(B) $500 ($1,000 in the case of a joint return).
“Any taxes taken into account under section 62(a) shall not be taken into account under this paragraph.”
“(8) Disaster Loss Deduction.—For the purposes of paragraph (1), the term “disaster loss deduction” means the net disaster loss (as defined in section 165(h)(3)(B)).”
“(9) Motor Vehicle Sales Tax Deduction.—For purposes of paragraph (1), the term “motor vehicle sales tax deduction” means the amount allowable as a deduction under section 164(a)(6). Such term shall not include any amount taken into account under section 62(a).”
2009 - Subsec. (c)(1)(C)-(E). Pub. L. 111-5, Div. B, Sec. 1008(c)(1), amended par. (1) by striking “and” at the end of subpar. (C), by substituting “, and” for the period at the end of subpar. (D), and by adding subpar. (E).
Subsec. (c)(9). Pub. L. 111-5, Div. B, Sec. 1008(c)(2), amended subsec. (c) by adding par. (9).
2008 - Subsec. (c)(1)(C). Pub. L. 110-343, Div. C, Sec. 204(a), amended subpar. (C) by inserting “or 2009” after “2008”.
Subsec. (c)(1)(B)-(D). Pub. L. 110-343, Div. C, Sec. 706(b)(1), amended par. (1) by striking “and” at the end of subpar. (B), by substituting “, and” for the period at the end of subpar. (C), and by adding subpar. (D).
Subsec. (c)(8). Pub. L. 110-343, Div. C, Sec. 706(b)(2), amended subsec. (c) by adding par. (8).
Subsec. (c)(1). Pub. L. 110-289, Sec. 3012(a), amended par. (1) by striking “and” at the end of subpar. (A); by substituting “, and” for the period at the end of subpar. (B); and by adding subpar. (C).
Subsec. (c)(7). Pub. L. 110-289, Sec. 3012(b), amended subsec. (c) by adding par. (7).
2004 - Subsec. (c)(2). Pub. L. 108-311, Sec. 101(b)(1), amended par. (2). Before amendment, it read as follows:
“(2) Basic standard deduction
“For purposes of paragraph (1), the basic standard deduction is—
“(A) the applicable percentage of the dollar amount in effect under subparagraph (D) for the taxable year in the case of--
“(i) a joint return, or
“(ii) a surviving spouse (as defined in section 2(a)),
“(B) $4,400 in the case of a head of household (as defined in section 2(b)),
“(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or
“(D)
$3,000 in any other case.
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.”
Subsec. (c)(4). Pub. L. 108-311, Sec. 101(b)(2)(A), amended par. (4) by substituting “(2)(C)” for “(2)(D)" each place it occurs.
Subsec. (c)(7). Pub. L. 108-311, Sec. 101(b)(2)(B), struck par. (7). Before being struck, it read as follows:
“(7) APPLICABLE PERCENTAGE.—
“For purposes of paragraph (2), the applicable percentage shall be determined in accordance with the following table:
 
 For taxable years beginning      The applicable percent is—  in calendar year—     2003 and 2004                    200         2005                             174     2006                             184     2007                             187     2008                             190     2009 and thereafter              200.”
2003 - Subsec. (c)(7). Pub. L. 108-27, Sec. 103(a), amended par. (7) by inserting “2003 and 2004 ....... 200” before the item relating to 2005 in the table.
2002 - Subsec. (c)(2)(A)-(D). Pub. L. 107-147, Sec. 411(e)(1), substituted “subparagraph (D)” for “subparagraph (C)” in subpar. (A), struck “or” at the end of subpar. (B), redesignated subpar. (C) as subpar. (D), and added a new subpar. (C).
Subsec. (c)(2). Pub. L. 107-147, Sec. 411(e)(1), added the flush sentence at the end.
Subsec. (c)(4). Pub. L. 107-147, Sec. 411(e)(2)(A), amended par. (4) by substituting “paragraph (2)(B), (2)(D), or (5)" for “paragraph (2) or (5)”.
Subsec. (c)(4)(B)(i). Pub. L. 107-147, Sec. 411(e)(2)(B), amended clause (i) by substituting “paragraph (2)(B), (2)(D),” for “paragraph (2)”.
Subsec. (c)(4). Pub. L. 107-147, Sec. 411(e)(2)(C), struck the flush sentence at the end. Prior to being struck, it read as follows:
“The preceding sentence shall not apply to the amount referred to in paragraph (2)(A).”
2001 - Subsec. (c)(2)(A). Pub. L. 107-16, Sec. 301(a)(1), amended subpar. (A) by substituting “the applicable percentage of the dollar amount in effect under subparagraph (C) for the taxable year” for “$5,000”.
Subsec. (c)(2)(B). Pub. L. 107-16, Sec. 301(a)(2), amended subpar. (B) by adding “or” at the end.
Subsec. (c)(2)(C). Pub. L. 107-16, Sec. 301(a)(3), amended subpar. (C) by substituting “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”.
Subsec. (c)(2)(D). Pub. L. 107-16, Sec. 301(a)(4), struck subpar. (D). Before being struck, it read as follows:
“(D) $2,500 in the case of a married individual filing a separate return.”
Subsec. (c)(4). Pub. L. 107-16, Sec. 301(c)(2), amended par. (4) by adding the flush sentence at the end.
Subsec. (c)(7). Pub. L. 107-16, Sec. 301(b), added par. (7).
1997 - Subsec. (c)(4). Pub. L. 105-34, Sec. 1201(a)(2), amended par. (4) by substituting “(5)” for “(5A)” in the material preceding subpar. (A); and by substituting “by substituting” and the language that follows for “by substituting by substituting “calendar year 1987” for “calendar year 1992” in subparagraph (B) thereof." in subpar. (B).
Subsec. (c)(5). Pub. L. 105-34, Sec. 1201(a)(1), amended par. (5) by substituting “shall not exceed” and the language that follows for “shall not exceed the greater of--
(A) $500, or
(B) such individual's earned income.”
1993 - Subsec. (c)(4)(B). Pub. L. 103-66, Section 13201(b)(3)(D) struck “1989” and inserted “1992”.
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, Sec. 1001(b)(1)(A)-(B), 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, Sec. 102(a), 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 DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. T, Sec. 101(a)(2)(A), effective as if included in section 11011 of Pub. L. 115-97 [effective for taxable years beginning after December 31, 2017].
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(K), effective for taxable years beginning after December 31, 2017.
Amendment by Pub. L. 115-97, Sec. 11011(b)(2), effective for taxable years beginning after December 31, 2017.
Amendment by Pub. L. 115-97, Sec. 11011(b)(3), effective for taxable years beginning after December 31, 2017.
Amendment by Pub. L. 115-97, Sec. 11021(a), effective for taxable years beginning after December 31, 2017.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Div. B, Sec. 221(a)(13) of Pub. L. 113-295 effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2) SAVINGS PROVISION.—If—
“(A) any provision amended or repealed by the amendments made by this section applied to—
“(i) any transaction occurring before the date of the enactment of this Act [Enacted: Dec. 19, 2014],
“(ii) any property acquired before such date of enactment, or
“(iii) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(B) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this section) affect the liability for tax for periods ending after date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Div. B, Sec. 1008(c) of Pub. L. 111-5 effective for purchases on or after the date of the enactment of this Act [Enacted: Feb. 17, 2009] in taxable years ending after such date.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by Div. C, Sec. 204(a) of Pub. L. 110-343 effective for taxable years beginning after December 31, 2008.
Amendments by Div. C, Sec. 706(b) of Pub. L. 110-343 effective for disasters declared in taxable years beginning after December 31, 2007.
Amendments by Sec. 3012 of Pub. L. 110-289 effective for taxable years beginning after December 31, 2007.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by Sec. 101(b) of Pub. L. 108-311 effective for taxable years beginning after December 31, 2003.
Section 105 of Pub. L. 108-311 provided that: “Each amendment made by this title shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to the same extent and in the same manner as the provision of such Act to which such amendment relates.”
Note that Pub. L. 112-240, Sec. 101(a), struck title IX of Pub. L. 107-16, effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after December 31, 2012.
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Sec. 103 of Pub. L. 108-27 effective for taxable years beginning after December 31, 2002.
Section 107 of Pub. L. 108-27 provided that: “Each amendment made by this title shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 to the same effect and in the same manner as the provision of such Act to which such amendment relates.”
Note that Pub. L. 112-240, Sec. 101(a), struck title IX of Pub. L. 107-16, effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after December 31, 2012.
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendments by section 411(e) of 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, Sec. 301] to which they relate.
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendments by section 301 of Pub. L. 107-16, as amended by Pub. L. 108-27, Sec. 103, applicable to taxable years beginning after December 31, 2002.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.—All provisions of, and amendments made by, this Act shall not apply—
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.—The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.—Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by section 1201(a) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by section 13201(b)(3)(D) of Pub. L. 103-66, applicable to taxable years beginning after December 31, 1992.
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.
RELIEF FOR 2016 DISASTER AREAS
Section 11028 of Pub. L. 115-97 provided that:
“(a) IN GENERAL.—For purposes of this section, the term ‘2016 disaster area’ means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act during calendar year 2016.
“(b) SPECIAL RULES FOR USE OF RETIREMENT FUNDS WITH RESPECT TO AREAS DAMAGED BY 2016 DISASTERS.—
“(1) TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS.—
“(A) IN GENERAL.—Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any qualified 2016 disaster distribution.
“(B) AGGREGATE DOLLAR LIMITATION.—
“(i) IN GENERAL.—For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as qualified 2016 disaster distributions for any taxable year shall not exceed the excess (if any) of—
“(I) $100,000, over (II) the aggregate amounts treated as qualified 2016 disaster distributions received by such individual for all prior taxable years.
“(ii) TREATMENT OF PLAN DISTRIBUTIONS.—If a distribution to an individual would (without regard to clause (i)) be a qualified 2016 disaster distribution, a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a qualified 2016 disaster distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $100,000.
“(iii) CONTROLLED GROUP.—For purposes of clause (ii), the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986.
“(C) AMOUNT DISTRIBUTED MAY BE REPAID.—
“(i) IN GENERAL.—Any individual who receives a qualified 2016 disaster distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of the Internal Revenue Code of 1986, as the case may be.
“(ii) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS.— For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to clause (i) with respect to a qualified 2016 disaster distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the qualified 2016 disaster distribution in an eligible rollover distribution (as defined in section 402(c)(4) of the Internal Revenue Code of 1986) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
“(iii) TREATMENT OF REPAYMENTS FOR DISTRIBUTIONS FROM IRAS.—For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to clause (i) with respect to a qualified 2016 disaster distribution from an individual retirement plan (as defined by section 7701(a)(37) of the Internal Revenue Code of 1986), then, to the extent of the amount of the contribution, the qualified 2016 disaster distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
“(D) DEFINITIONS.—For purposes of this paragraph—
“(i) QUALIFIED 2016 DISASTER DISTRIBUTION.—Except as provided in subparagraph (B), the term ‘qualified 2016 disaster distribution’ means any distribution from an eligible retirement plan made on or after January 1, 2016, and before January 1, 2018, to an individual whose principal place of abode at any time during calendar year 2016 was located in a disaster area described in subsection (a) and who has sustained an economic loss by reason of the events giving rise to the Presidential declaration described in subsection (a) which was applicable to such area.
“(ii) ELIGIBLE RETIREMENT PLAN.—The term ‘eligible retirement plan’ shall have the meaning given such term by section 402(c)(8)(B) of the Internal Revenue Code of 1986.
“(E) INCOME INCLUSION SPREAD OVER 3-YEAR PERIOD.—
“(i) IN GENERAL.—In the case of any qualified 2016 disaster distribution, unless the taxpayer elects not to have this subparagraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.
“(ii) SPECIAL RULE.—For purposes of clause (i), rules similar to the rules of subparagraph (E) of section 408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
“(F) SPECIAL RULES.—
“(i) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE TO TRUSTEE TRANSFER AND WITHHOLDING RULES.—For purposes of sections 401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 1986, qualified 2016 disaster distribution shall not be treated as eligible rollover distributions.
“(ii) QUALIFIED 2016 DISASTER DISTRIBUTIONS TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS.—For purposes of the Internal Revenue Code of 1986, a qualified 2016 disaster distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of the Internal Revenue Code of 1986. (2) PROVISIONS RELATING TO PLAN AMENDMENTS.—
“(A) IN GENERAL.—If this paragraph applies to any amendment to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subparagraph (B)(ii)(I).
“(B) AMENDMENTS TO WHICH SUBSECTION APPLIES.—
“(i) IN GENERAL.—This paragraph shall apply to any amendment to any plan or annuity contract which is made—
“(I) pursuant to any provision of this section, or pursuant to any regulation under any provision of this section, and
“(II) on or before the last day of the first plan year beginning on or after January 1, 2018, or such later date as the Secretary prescribes. In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), subclause (II) shall be applied by substituting the date which is 2 years after the date otherwise applied under subclause (II).
“(ii) CONDITIONS.—This paragraph shall not apply to any amendment to a plan or contract unless such amendment applies retroactively for such period, and shall not apply to any such amendment unless the plan or contract is operated as if such amendment were in effect during the period—
“(I) beginning on the date that this section or the regulation described in clause (i)(I) takes effect (or in the case of a plan or contract amendment not required by this section or such regulation, the effective date specified by the plan), and
“(II) ending on the date described in clause (i)(II) (or, if earlier, the date the plan or contract amendment is adopted).
“(c) SPECIAL RULES FOR PERSONAL CASUALTY LOSSES RELATED TO 2016 MAJOR DISASTER.—
“(1) IN GENERAL.—If an individual has a net disaster loss for any taxable year beginning after December 31, 2015, and before January 1, 2018—
“(A) the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of—
“(i) such net disaster loss, and
“(ii) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual,
“(B) section 165(h)(1) of such Code shall be applied by substituting ‘$500’ for ‘$500 ($100 for taxable years beginning after December 31, 2009)’,
“(C) the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss,
“(D) section 56(b)(1)(E) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph.
“(2) NET DISASTER LOSS.—For purposes of this subsection, the term ‘‘net disaster loss’’ means the excess of qualified disaster-related personal casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of the Internal Revenue Code of 1986).
“(3) QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES.—For purposes of this paragraph, the term ‘‘qualified disaster-related personal casualty losses’’ means losses described in section 165(c)(3) of the Internal Revenue Code of 1986 which arise in a disaster area described in subsection (a) on or after January 1, 2016, and which are attributable to the events giving rise to the Presidential declaration described in subsection (a) which was applicable to such area.”
SPECIAL RULES FOR QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES
Section 504(b)(1) of Pub. L. 115-63 provided:
“(1) IN GENERAL.—If an individual has a net disaster loss for any taxable year—
“(A) the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of—
“(i) such net disaster loss, and
“(ii) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual,
“(B) section 165(h)(1) of such Code shall be applied by substituting “$500” for “$500 ($100 for taxable years beginning after December 31, 2009)”,
“(C) the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and
“(D) section 56(b)(1)(E) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph.”
ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA DISPLACED INDIVIDUALS
Section 302 of Pub. L. 109-73 provided that:
“(a) IN GENERAL.—In the case of taxable years of a natural person beginning in 2005 or 2006, for purposes of the Internal Revenue Code of 1986, taxable income shall be reduced by $500 for each Hurricane Katrina displaced individual of the taxpayer for the taxable year.
“(b) LIMITATIONS.—
“(1) DOLLAR LIMITATION.—The reduction under subsection (a) shall not exceed $2,000, reduced by the amount of the reduction under this section for all prior taxable years.
“(2) INDIVIDUALS TAKEN INTO ACCOUNT ONLY ONCE.—An individual shall not be taken into account under subsection (a) if such individual was taken into account under such subsection by the taxpayer for any prior taxable year.
“(3) IDENTIFYING INFORMATION REQUIRED.—An individual shall not be taken into account under subsection (a) for a taxable year unless the taxpayer identification number of such individual is included on the return of the taxpayer for such taxable year.
“(c) HURRICANE KATRINA DISPLACED INDIVIDUAL.—For purposes of this section, the term “Hurricane Katrina displaced individual" means, with respect to any taxpayer for any taxable year, any natural person if—
“(1) such person's principal place of abode on August 28, 2005, was in the Hurricane Katrina disaster area,
“(2)(A) in the case of such an abode located in the core disaster area, such person is displaced from such abode, or
“(B) in the case of such an abode located outside of the core disaster area, such person is displaced from such abode, and
“(i) such abode was damaged by Hurricane Katrina, or
“(ii) such person was evacuated from such abode by reason of Hurricane Katrina, and
“(3) such person is provided housing free of charge by the taxpayer in the principal residence of the taxpayer for a period of 60 consecutive days which ends in such taxable year.
“Such term shall not include the spouse or any dependent of the taxpayer.
“(d) COMPENSATION FOR HOUSING.—No deduction shall be allowed under this section if the taxpayer receives any rent or other amount (from any source) in connection with the providing of such housing.”
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 29 of this title.
STANDARD DEDUCTION ADJUSTMENTS FOR TAXABLE YEARS BEGINNING IN 1991
For adjustment of standard deduction, limitation on standard deduction, and additional amounts under subsecs. (c)(2), (5) and (f) of this section for taxable years beginning in 1991, see section 3 of Revenue Procedure 90-64, set out as a note under section 1 of this title.
ADJUSTMENT OF ZERO BRACKET AMOUNT FOR CERTAIN TAXABLE YEARS
For adjustment of zero bracket amount for taxable years beginning in 1986, see section 4.02 of Revenue Procedure 85-55, formerly set out as a note under section 1 of this title.
The zero bracket amount was adjusted for taxable years beginning in 1985 by section 4.02 of Revenue Procedure 84-79, formerly set out as a note under section 1 of this title.