42 U.S.C. § 410a — Transferred

Page 1974 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 410a emption from social security coverage and taxes under section 210(a)(5) of the Social Security Act and section 3121(b)(5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [26 U.S.C. 3121(b)(5)] as if the cessation of coverage under title 5 had not occurred. ‘‘(2) An individual meeting the requirements of sub- paragraphs (A) and (B) of paragraph (1) who is not in the employ of the United States or an instrumentality thereof on the date of the enactment of this Act [July 18, 1984] may requalify for such exemptions in the same manner as under paragraph (1) if such individual again becomes subject to subchapter III of chapter 83 of title 5 (or effectively applies for coverage under such sub- chapter) within 30 days after the date on which he first returns to service in the legislative branch after such date of enactment, if such date (on which he returns to service) is within 365 days after he was last in the em- ploy of the United States or an instrumentality there- of. ‘‘(3) If an individual meeting the requirements of sub- paragraphs (A) and (B) of paragraph (1) does not again become subject to subchapter III of chapter 83 of title 5 (or effectively apply for coverage under such sub- chapter) prior to the date of the enactment of this Act or within the relevant 30-day period as provided in paragraph (1) or (2), social security coverage and taxes by reason of section 210(a)(5)(G) of the Social Security Act and section 3121(b)(5)(G) of the Internal Revenue Code of 1986 shall, with respect to such individual’s service in the legislative branch of the Federal Govern- ment, become effective with the first month beginning after such 30-day period. ‘‘(4) The provisions of paragraphs (1) and (2) shall apply only for purposes of reestablishing an exemption from social security coverage and taxes, and do not af- fect the amount of service to be credited to an indi- vidual for purposes of title 5, United States Code.’’ [Pub. L. 99–514, title XVIII, § 1883(a)(5), Oct. 22, 1986, 100 Stat. 2916, provided in part that amendment of above note by section 1883(a)(5)(A) of Pub. L. 99–514 is effective July 18, 1984.] SERVICES PERFORMED FOR NONPROFIT ORGANIZATIONS BY FEDERAL EMPLOYEES Pub. L. 98–369, div. B, title VI, § 2601(e), July 18, 1984, 98 Stat. 1127, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) For purposes of section 210(a)(5) of the Social Se- curity Act [42 U.S.C. 410(a)(5)] (as in effect in January 1983 and as in effect on and after January 1, 1984) and section 3121(b)(5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [26 U.S.C. 3121(b)(5)] (as so in ef- fect), service performed in the employ of a nonprofit or- ganization described in section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)] by an em- ployee who is required by law to be subject to sub- chapter III of chapter 83 of title 5, United States Code, with respect to such service, shall be considered to be service performed in the employ of an instrumentality of the United States. ‘‘(2) For purposes of section 203 of the Federal Em- ployees’ Retirement Contribution Temporary Adjust- ment Act of 1983 [section 203 of Pub. L. 98–168, set out as a note under section 8331 of Title 5, Government Or- ganization and Employees], service described in para- graph (1) which is also ‘employment’ for purposes of title II of the Social Security Act [42 U.S.C. 401 et seq.], shall be considered to be ‘covered service’.’’ ACCRUED FEDERAL RETIREMENT ENTITLEMENTS; REDUCTION PROHIBITED Pub. L. 98–21, title I, § 101(e), Apr. 20, 1983, 97 Stat. 70, provided that: ‘‘Nothing in this Act [see Short Title of 1983 Amendment note set out under section 1305 of this title] shall reduce the accrued entitlements to future benefits under the Federal Retirement System of cur- rent and retired Federal employees and their families.’’ COVERAGE OF FEDERAL HOME LOAN BANK EMPLOYEES Pub. L. 92–603, title I, § 125(a), Oct. 30, 1972, 86 Stat. 1357, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The provisions of section 210(a)(6)(B)(ii) of the Social Security Act [subsec. (a)(6)(B)(ii) of this section] and section 3121(b)(6)(B)(ii) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [26 U.S.C. 3121(b)(6)(B)(ii)], insofar as they relate to service performed in the employ of a Federal home loan bank, shall be effective— ‘‘(1) with respect to all service performed in the em- ploy of a Federal home loan bank on and after the first day of the first calendar quarter which begins on or after the date of the enactment of this Act [Oct. 30, 1972]; and ‘‘(2) in the case of individuals who are in the em- ploy of a Federal home loan bank on such first day, with respect to any service performed in the employ of a Federal home loan bank after the last day of the sixth calendar year preceding the year in which this Act is enacted [1972]; but this paragraph shall be ef- fective only if an amount equal to the taxes imposed by sections 3101 and 3111 of such Code [26 U.S.C. 3101, 3111] with respect to the services of all such individ- uals performed in the employ of Federal home loan banks after the last day of the sixth calendar year preceding the year in which this Act is enacted [1972] are paid under the provisions of section 3122 of such Code [26 U.S.C. 3122] by July 1, 1973, or by such later date as may be provided in an agreement entered into before such date with the Secretary of the Treasury or his delegate for purposes of this paragraph.’’ COVERED EMPLOYMENT NOT COUNTED UNDER OTHER FEDERAL RETIREMENT SYSTEMS Act Sept. 1, 1954, ch. 1206, title I, § 115, 68 Stat. 1087, which prohibited counting employment under other Federal retirement systems in determining eligibility for benefits under this subchapter, was repealed by Pub. L. 91–630, § 1, Dec. 31, 1970, 84 Stat. 1875. Pub. L. 91–630, § 2, Dec. 31, 1970, 84 Stat. 1875, provided that such repeal shall not apply in the case of a person who, on Dec. 31, 1970, is receiving or is entitled to receive bene- fits under any retirement system established by the United States or any instrumentality thereof unless he requests, in writing, the office which administers his retirement system to apply it in this case, and that any additional benefits payable pursuant to such request shall commence on Jan. 1, 1971. TERMINATION OF WAR AND EMERGENCIES Joint Res. July 25, 1947, ch. 327, § 3, 61 Stat. 451, pro- vided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of ter- mination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941. Executive Documents CHANGE OF NAME Coast and Geodetic Survey consolidated with Na- tional Weather Bureau in 1965 to form Environmental Science Services Administration by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318, set out in the Appendix to Title 5, Government Organiza- tion and Employees. Commissioned Officer Corps of the Environmental Science Services Administration changed to Commissioned Officer Corps of National Oceanic and Atmospheric Administration, see Reorg. Plan No. 4 of 1970, § 4(d), eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090, set out in the Appendix to Title 5. § 410a. Transferred Editorial Notes CODIFICATION Section, act Aug. 29, 1935, ch. 812, § 17, as added June 24, 1937, ch. 382, Pt. I, § 1, 50 Stat. 317; amended Oct. 30, 1951, ch. 632, § 24, 65 Stat. 690, was transferred to section Page 1975 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 411 1 See References in Text note below. 2 So in original. Probably should be ‘‘coupons’’. See 2008 Amendment note below. 228q of Title 45, Railroads, and subsequently super- seded. See section 231q of Title 45. § 411. Definitions relating to self-employment For the purposes of this subchapter— (a) Net earnings from self-employment The term ‘‘net earnings from self-employ- ment’’ means the gross income, as computed under subtitle A of the Internal Revenue Code of 1986, derived by an individual from any trade or business carried on by such individual, less the deductions allowed under such subtitle which are attributable to such trade or business, plus his distributive share (whether or not distrib- uted) of the ordinary net income or loss, as com- puted under section 702(a)(8) of such Code, from any trade or business carried on by a partner- ship of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordi- nary net income or loss— (1) There shall be excluded rentals from real estate and from personal property leased with the real estate (including such rentals paid in crop shares, and including payments under section 3833(2) of title 16 1 to individuals re- ceiving benefits under section 402 or 423 of this title), together with the deductions attrib- utable thereto, unless such rentals are re- ceived in the course of a trade or business as a real estate dealer; except that the preceding provisions of this paragraph shall not apply to any income derived by the owner or tenant of land if (A) such income is derived under an ar- rangement, between the owner or tenant and another individual, which provides that such other individual shall produce agricultural or horticultural commodities (including live- stock, bees, poultry, and fur-bearing animals and wildlife) on such land, and that there shall be material participation by the owner or ten- ant (as determined without regard to any ac- tivities of an agent of such owner or tenant) in the production or the management of the pro- duction of such agricultural or horticultural commodities, and (B) there is material partici- pation by the owner or tenant (as determined without regard to any activities of an agent of such owner or tenant) with respect to any such agricultural or horticultural commodity; (2) There shall be excluded dividends on any share of stock, and interest on any bond, de- benture, note, or certificate, or other evidence of indebtedness, issued with interest benefits 2 or in registered form by any corporation (in- cluding one issued by a government or polit- ical subdivision thereof), unless such dividends and interest are received in the course of a trade or business as a dealer in stocks or secu- rities; (3) There shall be excluded any gain or loss (A) which is considered under subtitle A of the Internal Revenue Code of 1986 as gain or loss from the sale or exchange of a capital asset, (B) from the cutting of timber, or the disposal of timber, coal, or iron ore, if section 631 of the Internal Revenue Code of 1986 applies to such gain or loss, or (C) from the sale, ex- change, involuntary conversion, or other dis- position of property if such property is neither (i) stock in trade or other property of a kind which would properly be includible in inven- tory if on hand at the close of the taxable year, nor (ii) property held primarily for sale to customers in the ordinary course of the trade or business; (4) The deduction for net operating losses provided in section 172 of the Internal Revenue Code of 1986 shall not be allowed; (5)(A) If any of the income derived from a trade or business (other than a trade or busi- ness carried on by a partnership) is commu- nity income under community property laws applicable to such income, the gross income and deductions attributable to such trade or business shall be treated as the gross income and deductions of the spouse carrying on such trade or business or, if such trade or business is jointly operated, treated as the gross in- come and deductions of each spouse on the basis of their respective distributive share of the gross income and deductions; (B) If any portion of a partner’s distributive share of the ordinary net income or loss from a trade or business carried on by a partnership is community income or loss under the com- munity property laws applicable to such share, all of such distributive share shall be included in computing the net earnings from self-employment of such partner, and no part of such share shall be taken into account in computing the net earnings from self-employ- ment of the spouse of such partner; (6) A resident of the Commonwealth of Puer- to Rico shall compute his net earnings from self-employment in the same manner as a cit- izen of the United States but without regard to the provisions of section 933 of the Internal Revenue Code of 1986; (7) An individual who is a duly ordained, commissioned, or licensed minister of a church or a member of a religious order shall compute his net earnings from self-employ- ment derived from the performance of service described in subsection (c)(4) without regard to section 107 (relating to rental value of par- sonages), section 119 (relating to meals and lodging furnished for the convenience of the employer), and section 911 (relating to earned income from sources without the United States) of the Internal Revenue Code of 1986, but shall not include in any such net earnings from self-employment the rental value of any parsonage or any parsonage allowance (wheth- er or not excluded under section 107 of the In- ternal Revenue Code of 1986) provided after the individual retires, or any other retirement benefit received by such individual from a church plan (as defined in section 414(e) of such Code) after the individual retires; (8) The exclusion from gross income provided by section 931 of the Internal Revenue Code of 1986 shall not apply; (9) There shall be excluded amounts received by a partner pursuant to a written plan of the partnership, which meets such requirements as are prescribed by the Secretary of the