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26 U.S.C. § 874 — Allowance of deductions and credits

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26 U.S.C. § 874 — Allowance of deductions and credits

**(a) Return prerequisite to allowance** A nonresident alien individual shall receive the benefit of the deductions and credits allowed to him in this subtitle only by filing or causing to be filed with the Secretary a true and accurate return, in the manner prescribed in subtitle F (sec. 6001 and following, relating to procedure and administration), including therein all the information which the Secretary may deem necessary for the calculation of such deductions and credits. This subsection shall not be construed to deny the credits provided by sections 31 and 33 for tax withheld at source or the credit provided by section 34 for certain uses of gasoline and special fuels. **(b) Tax withheld at source** The benefit of the deduction for exemptions under section 151 may, in the discretion of the Secretary, and under regulations prescribed by the Secretary, be received by a non-resident alien individual entitled thereto, by filing a claim therefor with the withholding agent. **(c) Foreign tax credit** Except as provided in section 906, a nonresident alien individual shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 901.

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Source location: Title 26, Chapter 1, § 874; chapter-001-normal-taxes-and-surtaxes.md

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 901 — Taxes of foreign countries and of possessions of United States

**(a) Allowance of credit** If the taxpayer chooses to have the benefits of this subpart, the tax imposed by this chapter shall, subject to the limitation of section 904, be credited with the amounts provided in the applicable paragraph of subsection (b) plus, in the case of a corporation, the taxes deemed to have been paid under section 960. Such choice for any taxable year may be made or changed at any time before the expiration of the period prescribed for making a claim for credit or refund of the tax imposed by this chapter for such taxable year. The credit shall not be allowed against any tax treated as a tax not imposed by this chapter under section 26(b). **(b) Amount allowed** Subject to the limitation of section 904, the following amounts shall be allowed as the credit under subsection (a): (1) **Citizens and domestic corporations** — In the case of a citizen of the United States and of a domestic corporation, the amount of any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country or to any possession of the United States; and (2) **Resident of the United States or Puerto Rico** — In the case of a resident of the United States and in the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, the amount of any such taxes paid or accrued during the taxable year to any possession of the United States; and (3) **Alien resident of the United States or Puerto Rico** — In the case of an alien resident of the United States and in the case of an alien individual who is a bona fide resident of Puerto Rico during the entire taxable year, the amount of any such taxes paid or accrued during the taxable year to any foreign country; and (4) **Nonresident alien individuals an

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 901

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26 U.S.C. § 21 — Expenses for household and dependent care services necessary for gainful employment

**(a) Allowance of credit** (1) **In general** — In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by such individual during the taxable year. (2) **Applicable percentage defined** — For purposes of paragraph (1), the term “applicable percentage” means 50 percent— (A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $15,000, and (B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return). **(b) Definitions of qualifying individual and employment-related expenses** For purposes of this section— (1) **Qualifying individual** — The term “qualifying individual” means— (A) a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13, (B) a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or (C) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abod

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 21

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26 U.S.C. § 906 — Nonresident alien individuals and foreign corporations

**(a) Allowance of credit** A nonresident alien individual or a foreign corporation engaged in trade or business within the United States during the taxable year shall be allowed a credit under section 901 for the amount of any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country or possession of the United States with respect to income effectively connected with the conduct of a trade or business within the United States. **(b) Special rules** (1) For purposes of subsection (a) and for purposes of determining the deductions allowable under sections 873(a) and 882(c), in determining the amount of any tax paid or accrued to any foreign country or possession there shall not be taken into account any amount of tax to the extent the tax so paid or accrued is imposed with respect to income from sources within the United States which would not be taxed by such foreign country or possession but for the fact that— (A) in the case of a nonresident alien individual, such individual is a citizen or resident of such foreign country or possession, or (B) in the case of a foreign corporation, such corporation was created or organized under the law of such foreign country or possession or is domiciled for tax purposes in such country or possession. (2) For purposes of subsection (a), in applying section 904 the taxpayer’s taxable income shall be treated as consisting only of the taxable income effectively connected with the taxpayer’s conduct of a trade or business within the United States. (3) The credit allowed pursuant to subsection (a) shall not be allowed against any tax imposed by section 871(a) (relating to income of nonresident alien individual not connected with United States business) or 881 (relating to incom

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 906

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26 U.S.C. § 871 — Tax on nonresident alien individuals

**(a) Income not connected with United States business—30 percent tax** (1) **Income other than capital gains** — Except as provided in subsection (h), there is hereby imposed for each taxable year a tax of 30 percent of the amount received from sources within the United States by a nonresident alien individual as— (A) interest (other than original issue discount as defined in section 1273), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, (B) gains described in subsection (b) or (c) of section 631, (C) in the case of— (i) a sale or exchange of an original issue discount obligation, the amount of the original issue discount accruing while such obligation was held by the nonresident alien individual (to the extent such discount was not theretofore taken into account under clause (ii)), and (ii) a payment on an original issue discount obligation, an amount equal to the original issue discount accruing while such obligation was held by the nonresident alien individual (except that such original issue discount shall be taken into account under this clause only to the extent such discount was not theretofore taken into account under this clause and only to the extent that the tax thereon does not exceed the payment less the tax imposed by subparagraph (A) thereon), and (D) gains from the sale or exchange after October 4, 1966, of patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other like property, or of any interest in any such property, to the extent such gains are from payments which are contingent on the productivity, use, or disposition of the property or interest

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 871

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26 U.S.C. § 4041 — Imposition of tax

**(a) Diesel fuel and special motor fuels** (1) **Tax on diesel fuel and kerosene in certain cases** (A) *In general* — There is hereby imposed a tax on any liquid other than gasoline (as defined in section 4083)— (i) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle or a diesel-powered train for use as a fuel in such vehicle or train, or (ii) used by any person as a fuel in a diesel-powered highway vehicle or a diesel-powered train unless there was a taxable sale of such fuel under clause (i). (B) *Exemption for previously taxed fuel* — No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081 (other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate) and the tax thereon was not credited or refunded. (C) *Rate of tax* (i) *In general* — Except as otherwise provided in this subparagraph, the rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4081(a)(2)(A) on diesel fuel which is in effect at the time of such sale or use. (ii) *Rate of tax on trains* — In the case of any sale for use, or use, of diesel fuel in a train, the rate of tax imposed by this paragraph shall be— (I) 3.3 cents per gallon after December 31, 2004, and before July 1, 2005, (II) 2.3 cents per gallon after June 30, 2005, and before January 1, 2007, and (III) 0 after December 31, 2006. (iii) *Rate of tax on certain buses* (I) *In general* — Except as provided in subclause (II), in the case of fuel sold for use or used in a use described in section 6427(b)(1) (after the application of section 6427(b)(3)), the rate of tax imposed by this paragraph shall be 7.3 cents

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4041

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26 U.S.C. § 34 — Certain uses of gasoline and special fuels

**(a) General rule** There shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of the amounts payable to the taxpayer— (1) under section 6420 (determined without regard to section 6420(g)), (2) under section 6421 (determined without regard to section 6421(i)), and (3) under section 6427 (determined without regard to section 6427(k)). **(b) Exception** Credit shall not be allowed under subsection (a) for any amount payable under section 6421 or 6427, if a claim for such amount is timely filed and, under section 6421(i) or 6427(k), is payable under such section.

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26 U.S.C. § 6420 — Gasoline used on farms

**(a) Gasoline** Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying— (1) the number of gallons so used, by (2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline. **(b) Time for filing claims; period covered** Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person’s taxable year shall be his taxable year for purposes of subtitle A. **(c) Meaning of terms** For purposes of this section— (1) **Use on a farm for farming purposes** — Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes. (2) **Farm** — The term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. (3) **Farming purposes** — Gasoline shall be treated as used for farming purposes only if used— (A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6420

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26 U.S.C. § 874 — Allowance of deductions and credits

Page 2068 TITLE 26—INTERNAL REVENUE CODE § 874 1550; Pub. L. 92–580, § 1(b), Oct. 27, 1972, 86 Stat. 1276; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–30, title I, § 101(d)(11), May 23, 1977, 91 Stat. 134; Pub. L. 98–369, div. A, title VII, § 711(c)(2)(A)(iv), July 18, 1984, 98 Stat. 945; Pub. L. 105–277, div. J, title IV, § 4004(b)(3), Oct. 21, 1998, 112 Stat. 2681–911.) Editorial Notes AMENDMENTS 1998—Subsec. (b)(1). Pub. L. 105–277 amended heading and text of par. (1) generally. Prior to amendment, text read as follows: ‘‘The deduction for losses allowed by section 165(c)(3), but only if the loss is of property lo- cated within the United States.’’ 1984—Subsec. (b)(1). Pub. L. 98–369 substituted ‘‘for losses’’ for ‘‘, for losses of property not connected with the trade or business if arising from certain casualties or theft,’’. 1977—Subsec. (c). Pub. L. 95–30 struck out par. (1) which made a cross reference to section 142(b)(1) for disallowance of the standard deduction and struck out ‘‘(2)’’ at beginning of single remaining cross reference. 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1972—Subsec. (b)(3). Pub. L. 92–580 substituted excep- tion that only one exemption be allowed under section 151 unless the taxpayer is a resident of a contiguous country or is a national of the United States, for excep- tion that in the case of a non-resident alien individual who is not a resident of a contiguous country only one exception be allowed under section 151. 1966—Pub. L. 89–809 amended section generally, sub- stituting ‘‘connected with income which is effectively connected with the conduct of a trade or business with- in the United States’’ for ‘‘connected with income

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 874

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