42 U.S.C. § 412 — Self-employment income credited to cal-

Page 1984 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 412 EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–840, title III, § 313(b), Aug. 28, 1958, 72 Stat. 1036, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply— ‘‘(1) with respect to individuals who die after the date of the enactment of this Act [Aug. 28, 1958], and ‘‘(2) with respect to any individual who died after 1955 and on or before the date of the enactment of this Act [Aug. 28, 1958], but only if the requirements of section 403(b)(2) of this Act [26 U.S.C. 1402 note] are met.’’ EFFECTIVE DATE OF 1957 AMENDMENT Amendment by Pub. L. 85–239 applicable, except for purposes of section 403 of this title, only with respect to taxable years ending on or after December 31, 1957, see section 5(c) of Pub. L. 85–239, set out as a note under section 1402 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1956 AMENDMENT Amendment by section 104(c)(2), (d) of act Aug. 1, 1956, applicable with respect to taxable years ending after 1955, see section 104(i) of such act Aug. 1, 1956, set out as a note under section 410 of this title. Amendment by section 104(c)(3) of act Aug. 1, 1956, ap- plicable with respect to taxable years ending after 1954, see section 104(i) of act Aug. 1, 1956, set out as a note under section 410 of this title. Amendment by section 104(h) of act Aug. 1, 1956, ap- plicable with respect to the same taxable years with re- spect to which the amendment to section 3121(k)(1) of Title 26, Internal Revenue Code, applies, see section 104(i) of act Aug. 1, 1956, set out as a note under section 410 of this title, and section 201(m)(2) of such act Aug. 1, 1956, set out as a note under section 3121 of Title 26. Act Aug. 1, 1956, ch. 836, title I, § 106(b), 70 Stat. 829, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall be effective with respect to taxable years ending on or after December 31, 1956.’’ EFFECTIVE DATE OF 1954 AMENDMENT Amendments by section 101(d), (g)(1), (2), (4) of act Sept. 1, 1954, applicable only with respect to taxable years ending after 1954, amendment by section 101(g)(3) of act Sept. 1, 1954, applicable only with respect to tax- able years beginning after 1950, and, for purposes of sec- tion 403 of this title, the amendments made by para- graphs (1), (2), and (4) of subsection (g) and by sub- section (d) [of said section 101] effective with respect to net earnings from self-employment derived after 1954, see section 101(n) of act Sept. 1, 1954, set out as a note under section 405 of this title. EFFECTIVE DATE OF 1950 AMENDMENT Amendment by act Sept. 23, 1950, applicable with re- spect to taxable years beginning after Dec. 31, 1950, see act Sept. 23, 1950, ch. 994, title II, § 221(k), 64 Stat. 947. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 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 Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. TREATY OBLIGATIONS Act Sept. 23, 1950, ch. 994, title II, § 214, 64 Stat. 937, provided that: ‘‘No amendment made by this Act [see Tables for classification] shall apply in any case where its application would be contrary to any treaty obliga- tion of the United States.’’ § 412. Self-employment income credited to cal- endar years (a) Taxable years prior to 1978 For the purposes of determining average monthly wage and quarters of coverage the amount of self-employment income derived dur- ing any taxable year which begins before 1978 shall— (1) in the case of a taxable year which is a calendar year, be credited equally to each quarter of such calendar year; and (2) in the case of any other taxable year, be credited equally to the calendar quarter in which such taxable year ends and to each of the next three or fewer preceding quarters any part of which is in such taxable year. (b) Taxable years after 1977 Except as provided in subsection (c), for the purposes of determining average indexed month- ly earnings, average monthly wage, and quarters of coverage the amount of self-employment in- come derived during any taxable year which be- gins after 1977 shall— (1) in the case of a taxable year which is a calendar year or which begins with or during a calendar year and ends with or during such year, be credited to such calendar year; and (2) in the case of any other taxable year, be allocated proportionately to the two calendar years, portions of which are included within such taxable year, on the basis of the number of months in each such calendar year which are included completely within the taxable year. For purposes of clause (2), the calendar month in which a taxable year ends shall be treated as in- cluded completely within that taxable year. (c) Proportional allocation For the purpose of determining average in- dexed monthly earnings, average monthly wage, and quarters of coverage in the case of any indi- vidual who elects the option described in clause (ii) or (iv) in the matter following section 411(a)(16) of this title for any taxable year that does not begin with or during a particular cal- endar year and end with or during such year, the self-employment income of such individual deemed to be derived during such taxable year shall be allocated to the two calendar years, portions of which are included within such tax- able year, in the same proportion to the total of such deemed self-employment income as the sum of the amounts applicable under section 413(d) of this title for the calendar quarters end- ing with or within each such calendar year bears to the lower limit for such taxable year specified in section 411(k)(1) of this title. (Aug. 14, 1935, ch. 531, title II, § 212, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, 504; amended Pub. L. 95–216, title III, § 351(b), Dec. 20, 1977, 91 Stat. 1549; Pub. L. 110–234, title XV, § 15352(b)(3), May 22, 2008, 122 Stat. 1526; Pub. L. 110–246, § 4(a), title XV, § 15352(b)(3), June 18, 2008, 122 Stat. 1664, 2288.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. Page 1985 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 413 L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Subsec. (b). Pub. L. 110–246, § 15352(b)(3)(A), sub- stituted ‘‘Except as provided in subsection (c), for the purposes’’ for ‘‘For the purposes’’ in introductory pro- visions. Subsec. (c). Pub. L. 110–246, § 15352(b)(3)(B), added sub- sec. (c). 1977—Pub. L. 95–216 designated existing provisions as subsec. (a), substituted provisions relating to crediting of self-employment income to calendar years for provi- sions relating to crediting of self-employment income to calendar quarters, and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture. Amendment by section 15352(b)(3) of Pub. L. 110–246 applicable to taxable years beginning after Dec. 31, 2007, see section 15352(c) of Pub. L. 110–246, set out as a note under section 1402 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–216 effective Jan. 1, 1978, see section 351(d) of Pub. L. 95–216, set out as a note under section 409 of this title. § 413. Quarter and quarter of coverage (a) Definitions For the purposes of this subchapter— (1) The term ‘‘quarter’’, and the term ‘‘cal- endar quarter’’, mean a period of three calendar months ending on March 31, June 30, September 30, or December 31. (2)(A) The term ‘‘quarter of coverage’’ means— (i) for calendar years before 1978, and subject to the provisions of subparagraph (B), a quar- ter in which an individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 412 of this title) with $100 or more of self-employ- ment income; and (ii) for calendar years after 1977, and subject to the provisions of subparagraph (B), each portion of the total of the wages paid and the self-employment income credited (pursuant to section 412 of this title) to an individual in a calendar year which equals the amount re- quired for a quarter of coverage in that cal- endar year (as determined under subsection (d)), with such quarter of coverage being as- signed to a specific calendar quarter in such calendar year only if necessary in the case of any individual who has attained age 62 or died or is under a disability and the requirements for insured status in subsection (a) or (b) of section 414 of this title, the requirements for entitlement to a computation or recomputa- tion of his primary insurance amount, or the requirements of paragraph (3) of section 416(i) of this title would not otherwise be met. (B) Notwithstanding the provisions of subpara- graph (A)— (i) no quarter after the quarter in which an individual dies shall be a quarter of coverage, and no quarter any part of which is included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage; (ii) if the wages paid to an individual in any calendar year equal $3,000 in the case of a cal- endar year before 1951, or $3,600 in the case of a calendar year after 1950 and before 1955, or $4,200 in the case of a calendar year after 1954 and before 1959, or $4,800 in the case of a cal- endar year after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965 and be- fore 1968, or $7,800 in the case of a calendar year after 1967 and before 1972, or $9,000 in the case of the calendar year 1972, or $10,800 in the case of the calendar year 1973, or $13,200 in the case of the calendar year 1974, or an amount equal to the contribution and benefit base (as determined under section 430 of this title) in the case of any calendar year after 1974 and be- fore 1978 with respect to which such contribu- tion and benefit base is effective, each quarter of such year shall (subject to clauses (i) and (v)) be a quarter of coverage; (iii) if an individual has self-employment in- come for a taxable year, and if the sum of such income and the wages paid to him during such year equals $3,600 in the case of a taxable year beginning after 1950 and ending before 1955, or $4,200 in the case of a taxable year ending after 1954 and before 1959, or $4,800 in the case of a taxable year ending after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967 and before 1972, or $9,000 in the case of a taxable year be- ginning after 1971 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $13,200 in the case of a tax- able year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 430 of this title) which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974 and before 1978, each quarter any part of which falls in such year shall (subject to clauses (i) and (v)) be a quarter of coverage; (iv) if an individual is paid wages for agricul- tural labor in a calendar year after 1954 and before 1978, then, subject to clauses (i) and (v), (I) the last quarter of such year which can be but is not otherwise a quarter of coverage shall be a quarter of coverage if such wages equal or exceed $100 but are less than $200; (II) the last two quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $200 but are less than $300; (III) the last three quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $300 but are less than $400; and (IV) each quarter of such year which is not otherwise a quarter of coverage shall be a quarter of coverage if such wages are $400 or more; (v) no quarter shall be counted as a quarter of coverage prior to the beginning of such quarter;