increase in the earned income limitation

increase in the earned income limitation Sec. 211. (a) Subsection (b) of section 203 of the Social Security Act is amended to read as follows: “Deductions On Account of Work “(b) Deductions, in such amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this title to which an individual is entitled, and from any payment or payments to which any other persons are entitled on the basis of such individual’s wages and self-employment income, until the total of such deductions equals— “(1) such individual’s benefit or benefits under section 202 for any month, and “(2) if such individual was entitled to old-age insurance benefits under section 202(a) for such month, the benefit or benefits of all other persons for such month under section 202 based on such individual’s wages and self-employment income, if for such month he is charged with excess earnings, under the provisions of subsection (f) of this section, equal to the total of benefits referred to in clauses (1) and (2). If the excess earnings74 Stat. 954 so charged are less than such total of benefits, such deductions with respect to such month shall be equal only to the amount of such excess earnings. If a child who has attained the age of 18 and is entitled to child’s insurance benefits, or a person who is entitled to mother’s insurance benefits, is married to an individual entitled to old-age insurance benefits under section 202(a), such child or such person, as the case may be, shall, for the purposes of this subsection and subsection (f), be deemed to be entitled to such benefits on the basis of the wages and self-employment income of such individual entitled to old-age insurance benefits. If a deduction has already been made under this subsection with respect to a person’s benefit or benefits under section 202 for a month, he shall be deemed entitled to payments under such section for such month for purposes of further deductions under this subsection, and for purposes of charging of each person’s excess earnings under subsection (f), only to the extent of the total of his benefits remaining after such earlier deductions have been made. For purposes of this subsection and subsection (f)— “(A) an individual shall be deemed to be entitled to payments under section 202 equal to the amount of the benefit or benefits to which he is entitled under such section after the application of subsection (a) of this section, but without the application of the penultimate sentence thereof; and “(B) if a deduction is made with respect to an individual’s benefit or benefits under section 202 because of the occurrence in any month of an event specified in subsection (c) or (d) of this section or in section 222(b), such individual shall not be considered to be entitled to any benefits under such section 202 for such month.” (b) Subsection (c) of section 203 of such Act is amended to read as follows: “Deductions on Account of Noncovered Work Outside the United States or Failure to Have Child in Care “(c) Deductions, in such amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this title to which an individual is entitled, until the total of such deductions equals such individual’s benefit or benefits under section 202 for any month— “(1) in which such individual is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States; or “(2) in which such individual, if a wife under age sixty-five entitled to a wife’s insurance benefit, did not have in her care (individually or jointly with her husband) a child of her husband entitled to a child’s insurance benefit and such wife’s insurance benefit for such month was not reduced under the provisions of section 202(q); or “(3) in which such individual, if a widow entitled to a mother’s insurance benefit, did not have in her care a child of her deceased husband entitled to a child’s insurance benefit; or “(4) in which such individual, if a former wife divorced entitled to a mother’s insurance benefit, did not have in her care a child of her deceased former husband who (A) is her son, daughter, or legally adopted child and (B) is entitled to a child’s insurance benefit on the basis of the wages and self-employment income of her deceased former husband. For purposes of paragraphs (2), (3), and (4) of this subsection, a child shall not be considered to be entitled to a child’s insurance benefit for any month in which an event specified in section 222(b) occurs with respect to such child. No deduction shall be made under this74 Stat. 955 subsection from any child’s insurance benefit for the month in which the child entitled to such benefit attained the age of eighteen or any subsequent month.” (c) Section 203 of such Act is amended by redesignating subsections (d), (e), (f), (g), and (h) as subsections (e), (f), (g), (h), and (i), respectively, and by inserting after subsection (c) the following new subsection: “Deductions From Dependents’ Benefits on Account of Noncovered Work Outside the United States by Old-Age Insurance Beneficiary “(d) (1) Deductions shall be made from any wife’s, husband’s, or child’s insurance benefit, based on the wages and self-employment income of an individual entitled to old-age insurance benefits, to which a wife, husband, or child is entitled, until the total of such deductions equals such wife’s, husband’s, or child’s insurance benefit or benefits under section 202 for any month in which such individual is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States. “(2) Deductions shall be made from any child’s insurance benefit to which a child who has attained the age of eighteen is entitled, or from any mother’s insurance benefit to which a person is entitled, until the total of such deductions equals such child’s insurance benefit or benefits or mother’s insurance benefit or benefits under section 202 for any month in which such child or person entitled to mother’s insurance benefits is married to an individual who is entitled to old-age insurance benefits and on seven or more different calendar days of which such individual engaged in noncovered remunerative activity outside the United States.” (d) The subsection of section 203 of such Act redesignated as subsection (e) by subsection (c) of this section is amended to read as follows: “Occurrence of More Than One Event “(e) If more than one of the events specified in subsections (c) and (d) and section 222(b) occurs in any one month which would occasion deductions equal to a benefit for such month, only an amount equal to such benefit shall be deducted.” (e) The subsection of section 203 of such Act redesignated as subsection (f) by subsection (c) of this section is amended to read as follows: “Months to Which Earnings Are Charged “(f) For purposes of subsection (b)— “(1) The amount of an individual’s excess earnings (as defined in paragraph (3)) shall be charged to months as follows: There shall be charged to the first month of such taxable year an amount of his excess earnings equal to the sum of the payments to which he and all other persons are entitled for such month under section 202 on the basis of his wages and self-employment income (or the total of his excess earnings if such excess earnings are less than such sum), and the balance, if any, of such excess earnings shall be charged to each succeeding month in such year to the extent, in the case of each such month, of the sum of the payments to which such individual and all other persons are entitled for such month under section 202 on the basis of his wages and self-employment income, until the total of such excess has been so charged. Where an individual is entitled to benefits under section74 Stat. 956 202(a) and other persons are entitled to benefits under section 202 (b), (c), or (d) on the basis of the wages and self-employment income of such individual, the excess earnings of such individual for any taxable year shall be charged in accordance with the provisions of this subsection before the excess earnings of such persons for a taxable year are charged to months in such individual’s taxable year. Notwithstanding the preceding provisions of this paragraph, no part of the excess earnings of an individual shall be charged to any month (A) for which such individual was not entitled to a benefit under this title, (B) in which such individual was age seventy-two or over, (C) in which such individual, if a child entitled to child’s insurance benefits, has attained the age of 18, or (D) in which such individual did not engage in self-employment and did not render services for wages (determined as provided in paragraph (5) of this subsection) of more than $100. “(2) As used in paragraph (1), the term ‘first month of such taxable year’ means the earliest month in such year to which the charging of excess earnings described in such paragraph is not prohibited by the application of clauses (A), (B), (C), and (D) thereof. “(3) For purposes of paragraph (1) and subsection (h), an individual’s excess earnings for a taxable year shall be his earnings for such year in excess of the product of $100 multiplied by the number or months in such year, except that of the first $300 of such excess (or all of such excess if it is less than $300), an amount equal to one-half thereof shall not be included. The excess earnings as derived under the preceding sentence, if not a multiple of $1, shall be reduced to the next lower multiple of $1. “(4) For purposes of clause (D) of paragraph (1)— “(A) An individual will be presumed, with respect to any month, to have been engaged in self-employment in such month until it is shown to the satisfaction of the Secretary that such individual rendered no substantial services in such month with respect to any trade or business the net income or loss of which is includible in computing (as provided in paragraph (5) of this subsection) his net earnings or net loss from self-employment for any taxable year. The Secretary shall by regulations prescribe the methods and criteria for determining whether or not an individual has rendered substantial services with respect to any trade or business. “(B) An individual will be presumed, with respect to any month, to have rendered services for wages (determined as provided in paragraph (5) of this subsection) of more than $100 until it is shown to the satisfaction of the Secretary that such individual did not render such services in such month for more than such amount. “(5) (A) An individual’s earnings for a taxable year shall be (i) the sum of his wages for services rendered in such year and his net earnings from self-employment for such year, minus (ii) any net loss from self-employment for such year. “(B) In determining an individual’s net earnings from self-employment and his net loss from self-employment for purposes of subparagraph (A) of this paragraph and paragraph (4), the provisions of section 211, other than paragraphs (1), (4), and (5) of subsection (c), shall be applicable; and any excess of income over deductions resulting from such a computation shall be his net earnings from self-employment and any excess of deductions over income so resulting shall be his net loss from self-employment. 74 Stat. 957 “(C) For purposes of this subsection, an individual’s wages shall be computed without regard to the limitations as to amounts of remuneration specified in subsections (a), (g)(3), (h)(2), and (j) of section 209; and in making such computation services which do not constitute employment as defined in section 210, performed within the United States by the individual as an employee or performed outside the United States in the active military or naval service of the United States, shall be deemed to be employment as so defined if the remuneration for such services is not includible in computing his net earnings or net loss from self-employment. “(6) For purposes of this subsection, wages (determined as provided in paragraph (5)(C)) which, according to reports received by the Secretary, are paid to an individual during a taxable year shall be presumed to have been paid to him for services performed in such year until it is shown to the satisfaction of the Secretary that they were paid for services performed in another taxable year. If such reports with respect to an individual show his wages for a calendar year, such individual’s taxable year shall be presumed to be a calendar year for purposes of this subsection until it is shown to the satisfaction of the Secretary that his taxable year is not a calendar year. “(7) Where an individual’s excess earnings are charged to a month and the excess earnings so charged are less than the total of the payments (without regard to such charging) to which all persons are entitled under section 202 for such month on the basis of his wages and self-employment income, the difference between such total and the excess so charged to such month shall be paid (if it is otherwise payable under this title) to such individual and other persons in the proportion that the benefit to which each of them is entitled (without regard to such charging, without the application of section 202 (k)(3), and prior to the application of section 203(a)) bears to the total of the benefits to which all of them are entitled.” (f) The subsection of section 203 of such Act redesignated as subsection (h) by subsection (c) of this section is amended (1) by striking out “paragraph (4) of subsection (e)” wherever it appears and inserting in lieu thereof “paragraph (5) of subsection (f)”, (2) by striking out in subparagraph (B) of paragraph (1) “paragraph (3) of subsection (g)” and inserting in lieu thereof “paragraph (3) of this subsection”, (3) by striking out “(b)(1)” wherever it appears and inserting in lieu thereof “(b)”, and (4) by striking out in paragraph (3) “suspend the payment” and insert in lieu thereof “suspend the total or less than the total payment”. (g) The subsection of section 203 of such Act redesignated as subsection (i) by subsection (c) of this section is amended by striking out “subsection (b), (f), or (g) of this section” and inserting in lieu thereof “subsection (b), (c), (g), or (h) of this section”. (h) Subsection (1) of section 203 of such Act is amended by striking out “subsection (f) or (g)(1)(A)” and inserting in lieu thereof “subsection (g) or (h)(1)(A)”. (i) The last sentence of section 202(n)(1) of such Act is amended by striking out “Section 203 (b) and (c)” and inserting in lieu thereof “Section 203 (b), (c), and (d)”. (j) (1) Clause (A) of section 202(q)(5) of such Act is amended by striking out “paragraph (1) or (2) of” and by inserting before the comma at the end thereof “or paragraph (1) of section 203(c)”. (2) Clause (B) of such section 202(q)(5) is amended by striking out “paragraph (1) or (2) of section 203(b), under section 203(c)”74 Stat. 958 and inserting in lieu thereof “section 203(b), under section 203(c)(1), under section 203(d)(1)”. (k) (1) Clause (A) of section 202 (q)(6) of such Act is amended by striking out “section 203(b)(1) or (2), under section 203(c)” and inserting in lieu thereof “section 203(b), under section 203(c)(1). under section 203(d)(1)”. (2) Clause (D) of such section 202(q)(6) is amended by striking out “paragraph (1) or (2) of” and by inserting immediately before the period “or paragraph (1) of section 203 (c)”. (l) Section 202 (t)(7) of such Act is amended by striking out “Subsections (b) and (c) of section 203” and inserting in lieu thereof “Subsections (b), (c), and (d) of section 203”. (m) Section 208(a)(3) of such Act is amended by striking out “section 203(e)” and inserting in lieu thereof “section 203(f)”. (n) Section 215(g) of such Act is amended by striking out “203(a)” and inserting in lieu thereof “203(a) and deductions under section 203(b)”. (o) (1) Section 3(e) of the Railroad Retirement Act of 1937 is amended by striking out “subsections (f) and (g)(2) of section 203 of the Social Security Act” and inserting in lieu thereof “subsections (g) and (h)(2) of section 203of the Social Security Act”. (2) Section 5(i)(1)(ii) of the Railroad Retirement Act of 1937 is amended— (A) by striking out “section 203 (e) ” each place it appears and inserting in lieu thereof “section 203(f)”: (B) by striking out “section 203(g)(3)” and inserting in lieu thereof “section 203(h)(3)”; and (C) by striking out “earnings” each place it appears and inserting in lieu thereof “excess earnings”. (p) Section 203 (c), (d), (e), (g), and (i) of the Social Security Act as amended by this Act shall be effective with respect to monthly benefits for months after December 1960. (q) Section 203 (b), (f), and (h) of the Social Security Act as amended by this Act shall be effective with respect to taxable years beginning after December 1960. (r) Section 203(1) of the Social Security Act as amended by this Act, to the extent that it applies to section 203(g) of the Social Security Act as amended by this Act, shall be effective with respect to monthly benefits for months after December 1960 and, to the extent that it applies to section 203(h)(1)(A) of the Social Security Act as amended by this Act, shall be effective with respect to taxable years beginning after December 1960. (s) The amendments made by subsections (i), (j), (k), (1), (m), (n), and (o) of this section, to the extent that they make changes in references to provisions of section 203 of the Social Security Act, shall take effect in the manner provided in subsections (p) and (q) of this section for the provisions of such section 203 to which the respective references so changed relate. (t) In any case where— (1) an individual has earnings (as defined in section 203(e)(4) of the Social Security Act as in effect prior to the enactment of this Act) in a taxable year which begins before 1961 and ends in 1961 (but not on December 31, 1961), and (2) such individual’s spouse or child entitled to monthly benefits on the basis of such individual’s self-employment income has excess earnings (as defined in section 203(f)(3) of the Social Security Act as amended by this Act) in a taxable year which begins after 1960, and 74 Stat. 959 (3) one or more months in the taxable year specified in paragraph (2) are included in the taxable year specified in paragraph (1), then, if a deduction is imposed against the benefits payable to such individual with respect to a month described in paragraph (3), such spouse or child, as the case may be, shall not. for purposes of subsections (b) and (f) of section 203 of the Social Security Act as amended by this Act, be entitled to a payment for such month.