DEFINITION OF DEPENDENT.

SEC. 4. DEFINITION OF DEPENDENT. (a) Spouse.— Paragraph (9) of section 152 (a) (relating to definition of dependent) is amended to read as follows: “(9) An individual (other than an individual who at any time during the taxable year was the spouse, determined without regard to section 153, of the taxpayer) who, for the taxable year of the taxpayer, has as his principal place of abode the home of the taxpayer and is a member of the taxpayer’s household, or”. (b) Adopted Child.—The last sentence of section 152 (b) (3) (relating to definition of dependent) is amended to read as follows: “The preceding sentence shall not exclude from the definition of ‘dependent’ any child of the taxpayer— “(A) born to him, or legally adopted by him, in the Philippine Islands before January 1, 1956, if the child is a resident of the Republic of the Philippines, and if the taxpayer was a member of the Armed Forces of the United States at the time the child was born to him or legally adopted by him, or “(B) legally adopted by him, if, for the taxable year of the taxpayer, the child has as his principal place of abode the home of the taxpayer and is a member of the taxpayer’s household, and if the taxpayer is a citizen of the United States.” (c) Member of Household.— Section 152 (b) (relating to definition of dependent) is amended by adding at the end thereof the following new paragraph: “(5) An individual is not a member of the taxpayer’s household if at any time during the taxable year of the taxpayer the relationship between such individual and the taxpayer is in violation of local law.” (d) Effective Date.—The amendment made by subsection (b) shall apply with respect to taxable years beginning after December 31, 1957.