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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle A. Income Taxes |
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Chapter 1. NORMAL TAXES AND SURTAXES |
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SubChapter B. Computation of Taxable Income |
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Part I. DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC. |
§ 62. Adjusted gross income defined
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(a) General rule For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions: (1) Trade and business deductions The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.
(2) Certain trade and business deductions of employees (A) Reimbursed expenses of employees The deductions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.
(B) Certain expenses of performing artists The deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.
(C) Certain expenses of officials The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.
(D) Certain expenses of elementary and secondary school teachers In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, or 2013, the deductions allowed by section 162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.
(E) Certain expenses of members of reserve components of the Armed Forces of the United States The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.
(3) Losses from sale or exchange of property The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of property.
(4) Deductions attributable to rents and royalties The deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for production of income), and by section 611 (relating to depletion) which are attributable to property held for the production of rents or royalties.
(5) Certain deductions of life tenants and income beneficiaries of property In the case of a life tenant of property, or an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by section 611.
(6) Pension, profit-sharing, and annuity plans of self-employed individuals In the case of an individual who is an employee within the meaning of section 401(c)(1), the deduction allowed by section 404.
(7) Retirement savings The deduction allowed by section 219 (relating to deduction of certain retirement savings).
[(8) Repealed. Pub. L. 104–188, title I, § 1401(b)(4), Aug. 20, 1996 , 110 Stat. 1788](9) Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits The deductions allowed by section 165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business, to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.
(10) Alimony The deduction allowed by section 215.
(11) Reforestation expenses The deduction allowed by section 194.
(12) Certain required repayments of supplemental unemployment compensation benefits The deduction allowed by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).
(13) Jury duty pay remitted to employer Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term “jury pay” means any payment received by the individual for the discharge of jury duty.
(14) Deduction for clean-fuel vehicles and certain refueling property The deduction allowed by section 179A.
(15) Moving expenses The deduction allowed by section 217.
(16) Archer MSAs The deduction allowed by section 220.
(17) Interest on education loans The deduction allowed by section 221.
(18) Higher education expenses The deduction allowed by section 222.
(19) Health savings accounts The deduction allowed by section 223.
(20) Costs involving discrimination suits, etc. Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code
(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317). (3) The National Labor Relations Act (29 U.S.C. 151 et seq.). (4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). (5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623 or 633a). (6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791 or 794). (7) Section 510 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1140). (8) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.). (9) The Employee Polygraph Protection Act of 1988 (29 U.S.C. 2001 et seq.). (10) The Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102 et seq.). (11) Section 105 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2615). (12) Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services). (13) Section 1977, 1979, or 1980 of the Revised Statutes (42 U.S.C. 1981, 1983, or 1985). (14) Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2, 2000e–3, or 2000e–16). (15) Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617). (16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203). (17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law. (18) Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law— (i) providing for the enforcement of civil rights, or (ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.
References In Text
Section 302 of the Civil Rights Act of 1991, referred to in subsec. (e)(1), was formerly classified to section 1202 of Title 2, The Congress, and was transferred to section 2000e–16b of Title 42, The Public Health and Welfare.
The National Labor Relations Act, referred to in subsec. (e)(3), is act July 5, 1935, ch. 372, 49 Stat. 449, as amended, which is classified generally to subchapter II (§ 151 et seq.) of chapter 7 of Title 29, Labor. For complete classification of this Act to the Code, see section 167 of Title 29 and Tables.
The Fair Labor Standards Act of 1938, referred to in subsec. (e)(4), is act June 25, 1938, ch. 676, 52 Stat. 1060, as amended, which is classified generally to chapter 8 (§ 201 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see section 201 of Title 29 and Tables.
The Education Amendments of 1972, referred to in subsec. (e)(8), is Pub. L. 92–318,
The Employee Polygraph Protection Act of 1988, referred to in subsec. (e)(9), is Pub. L. 100–347,
The Worker Adjustment and Retraining Notification Act, referred to in subsec. (e)(10), is Pub. L. 100–379,
Amendments
2013—Subsec. (a)(2)(D). Pub. L. 112–240 substituted “2011, 2012, or 2013” for “or 2011”.
2010—Subsec. (a)(2)(D). Pub. L. 111–312 substituted “2009, 2010, or 2011” for “or 2009”.
2008—Subsec. (a)(2)(D). Pub. L. 110–343 substituted “2007, 2008, or 2009” for “or 2007”.
2006—Subsec. (a)(2)(D). Pub. L. 109–432, § 108(a), substituted “2005, 2006, or 2007” for “or 2005”.
Subsec. (a)(21). Pub. L. 109–432, § 406(a)(3), added par. (21).
2005—Subsec. (a)(19), (20). Pub. L. 109–135, § 412(q)(1), redesignated par. (19) relating to costs involving discrimination suits, etc., as par. (20) and moved to follow par. (19) relating to health savings accounts.
Subsec. (e). Pub. L. 109–135, § 412(q)(2), substituted “subsection (a)(20)” for “subsection (a)(19)” in introductory provisions.
2004—Subsec. (a)(2)(D). Pub. L. 108–311 substituted “, 2003, 2004, or 2005” for “or 2003”.
Subsec. (a)(19). Pub. L. 108–357, § 703(a), added par. (19) relating to costs involving discrimination suits, etc.
Subsec. (e). Pub. L. 108–357, § 703(b), added subsec. (e).
2003—Subsec. (a)(2)(E). Pub. L. 108–121 added subpar. (E).
Subsec. (a)(19). Pub. L. 108–173 added par. (19).
2002—Subsec. (a)(2)(D). Pub. L. 107–147, § 406(a), added subpar. (D).
Subsec. (d). Pub. L. 107–147, § 406(b), added subsec. (d).
2001—Subsec. (a)(18). Pub. L. 107–16 added par. (18).
2000—Subsec. (a)(16). Pub. L. 106–554 amended heading and text of par. (16) generally. Prior to amendment, text read as follows: “The deduction allowed by section 220.”
1997—Subsec. (a)(2)(C). Pub. L. 105–34, § 975(a), added subpar. (C).
Subsec. (a)(17). Pub. L. 105–34, § 202(b), added par. (17).
1996—Subsec. (a)(8). Pub. L. 104–188 struck out par. (8) which read as follows: “Certain portion of lump-sum distributions from pension plans taxed under section 402(d).—The deduction allowed by section 402(d)(3).”
Subsec. (a)(16). Pub. L. 104–191 added par. (16).
1993—Subsec. (a)(15). Pub. L. 103–66 added par. (15).
1992—Subsec. (a)(8). Pub. L. 102–318 substituted “402(d)” for “402(e)” in heading and in text.
Subsec. (a)(14). Pub. L. 102–486 added par. (14).
1990—Subsec. (a)(13). Pub. L. 101–508, § 11802(e)(1), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “The deduction allowed by section 220.”
1988—Subsec. (a)(2)(A). Pub. L. 100–647, § 1001(b)(3)(A), inserted at end “The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.”
Subsec. (a)(13). Pub. L. 100–647, § 6007(b), added par. (13).
Subsec. (c). Pub. L. 100–485 added subsec. (c).
1986—Subsec. (a). Pub. L. 99–514, § 132(b)(2)(A), designated existing provisions as subsec. (a) and added heading.
Subsec. (a)(2). Pub. L. 99–514, § 132(b)(1), amended par. (2) generally, substituting “Certain trade” for “Trade” in heading and inserting “of employees” in subpar. (A) heading, substituting provision relating to deduction of certain expenses of performing artists for provision relating to deduction of expenses for travel away from home in subpar. (B), and striking out subpar. (C) relating to deduction of travel expenses and subpar. (D) relating to deduction of expenses of outside salesmen.
Subsec. (a)(3) to (5). Pub. L. 99–514, § 301(b)(1), redesignated pars. (4) to (6) as (3) to (5), respectively, and struck out former par. (3) which related to long-term capital gains and read as follows: “The deduction allowed by section 1202.”
Subsec. (a)(6). Pub. L. 99–514, § 301(b)(1), redesignated par. (7) as (6). Former par. (6) redesignated (5).
Pub. L. 99–514, § 1875(c)(3), struck out “to the extent attributable to contributions made on behalf of such individual” after “section 404”.
Subsec. (a)(7). Pub. L. 99–514, § 301(b)(1), redesignated par. (10) as (7). Former par. (7) redesignated (6).
Subsec. (a)(8). Pub. L. 99–514, § 301(b)(1), redesignated par. (11) as (8). Former par. (8) struck out.
Pub. L. 99–514, § 132(c), struck out par. (8) which related to moving expense deduction and read as follows: “The deduction allowed by section 217.”
Subsec. (a)(9) to (15). Pub. L. 99–514, § 301(b)(1), redesignated pars. (12) to (15) as (9) to (12), respectively. Former pars. (10) and (11) redesignated (7) and (8), respectively.
Subsec. (a)(16). Pub. L. 99–514, § 131(b)(1), struck out par. (16) which related to deduction for two-earner married couples and read as follows: “The deduction allowed by section 221.”
Subsec. (b). Pub. L. 99–514, § 132(b)(2)(B), added subsec. (b).
1984—Par. (7). Pub. L. 98–369, § 491(d)(2), substituted “and annuity” for “annuity, and bond purchase” in heading, and substituted “the deduction allowed by section 404” for “the deductions allowed by section 404 and section 405(c)” in text.
1983—Par. (9). Pub. L. 97–354 repealed par. (9) relating to the deduction allowed by section 1379(b)(3).
1981—Par. (10). Pub. L. 97–34, § 311(h)(1), struck out “and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)” after “retirement savings”.
Par. (14). Pub. L. 97–34, § 112(b)(2), redesignated par. (15) as (14). Former par. (14), relating to deduction for certain expenses of living abroad, was struck out.
Par. (15). Pub. L. 97–34, § 112(b)(2), redesignated par. (16) as (15). Former par. (15) redesignated (14).
Par. (16). Pub. L. 97–34, §§ 103(b), 112(b)(2), added par. (16). Former par. (16) redesignated (15).
1980—Par. (15). Pub. L. 96–451 added par. (15).
Par. (16). Pub. L. 96–608 added par. (16).
1978—Par. (14). Pub. L. 95–615 added par. (14).
1976—Par. (10). Pub. L. 94–455, § 1501(b)(1), inserted reference to the deduction allowed by section 220 (relating to retirement savings for certain married individuals).
Pars. (11), (12). Pub. L. 94–455, § 1901(a)(8), (9), redesignated par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits, as par. (12), and substituted “trade or business, to the extent” for “trade or business to the extent”.
Par. (13). Pub. L. 94–455, § 502(a), added par. (13).
1974—Par. (10). Pub. L. 93–406, § 2002(a)(2), added par. (10).
Par. (11). Pub. L. 93–483 added par. (11) relating to penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits. Another par. (11) relating to certain portions of lump-sum distributions from pension plans taxed under section 402(e) of this title, was added by Pub. L. 93–406, § 2005(c)(9).
1969—Par. (9). Pub. L. 91–172 added par. (9).
1964—Par. (8). Pub. L. 88–272 added par. (8).
1962—Par. (7). Pub. L. 87–792 added par. (7).
Effective Date Of Amendment
Pub. L. 112–240, title II, § 201(b),
Pub. L. 111–312, title VII, § 721(b),
Pub. L. 110–343, div. C, title II, § 203(b),
Pub. L. 109–432, div. A, title I, § 108(b),
Pub. L. 109–432, div. A, title IV, § 406(d),
Pub. L. 108–357, title VII, § 703(c),
Pub. L. 108–311, title III, § 307(b),
Pub. L. 108–173, title XII, § 1201(k),
Pub. L. 108–121, title I, § 109(c),
Pub. L. 107–147, title IV, § 406(c),
Pub. L. 107–16, title IV, § 431(d),
Pub. L. 105–34, title II, § 202(e),
Pub. L. 105–34, title IX, § 975(b),
Pub. L. 104–191, title III, § 301(j),
Amendment by Pub. L. 104–188 applicable to taxable years beginning after
Pub. L. 103–66, title XIII, § 13213(e),
Amendment by Pub. L. 102–486 applicable to property placed in service after
Amendment by Pub. L. 102–318 applicable to distributions after
Amendment by section 1001(b)(3)(A) of 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.
Pub. L. 100–647, title VI, § 6007(d),
Pub. L. 100–485, title VII, § 702(b),
Amendment by sections 131(b)(1) and 132(b), (c) of Pub. L. 99–514 applicable to taxable years beginning after
Pub. L. 99–514, title III, § 301(c),
Pub. L. 99–514, title XVIII, § 1875(c)(12),
Pub. L. 98–369, div. A, title IV, § 491(f)(1),
Par. (9) as in effect before date of repeal by Pub. L. 97–354 to remain in effect for years beginning before
Pub. L. 97–34, title I, § 103(d),
Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97–34 applicable to taxable years beginning after
Pub. L. 96–608, § 3(b),
Amendment by Pub. L. 96–451 applicable with respect to additions to capital account made after
Amendment by Pub. L. 95–615 applicable to taxable years beginning after
Pub. L. 94–455, title V, § 502(c),
Pub. L. 94–455, title XV, § 1501(d),
Amendment by section 1901(a)(8), (9) of Pub. L. 94–455 applicable with respect to taxable years beginning after
Pub. L. 93–483, § 6(b),
Amendment by section 2002(a)(2) of Pub. L. 93–406 applicable to taxable years beginning after
Amendment by section 2005(c)(9) of Pub. L. 93–406 applicable only with respect to distributions or payments made after
Amendment by Pub. L. 91–172 applicable with respect to taxable years of electing small business corporations beginning after
Pub. L. 88–272, title II, § 213(d),
Amendment by Pub. L. 87–792 applicable to taxable years beginning after
Savings
For provisions that nothing in amendment by 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
Miscellaneous
For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after
For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Pub. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after
Pub. L. 95–427, § 2,
Pub. L. 95–615, § 2,