REFERENCES IN TEXT The Universal Military Training and Service Act, referred to in subsec. (m) (5) (B), was redesignated the Military Selective Service Act of 1967 by Pub. L. 90-40, June 30, 1967, 81 Stat. 100, and is classified to section 451 et seq. of Appendix to Title 50, War and National Defense. AMENDMENTS 1972-Subsec. (a) (7). Pub. L. 92-603, § 128(a), added subpar. (E). Subsec. (a) (8) (A). Pub. L. 92-603, § 123 (a) (1), inserted provisions referring to the election of coverage under section 3121 (r) of Title 26. Subsec. (a) (10) (B). Pub. L. 92-603, § 129 (a) (1), designated existing provisions as cl. (1) and added cl. (11). EFFECTIVE DATE OF 1972 AMENDMENT Section 128 (c) of Pub. L. 92-603 provided that: "The amendments made by this section [enacting subsec. (a) (7) (E) of this section and section 3121 (b) (7) (D) of Title 26] shall apply with respect to service performed 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]." Section 129 (b) of Pub. L. 92-603 provided that: "The amendments made by subsection (a) [amending subsec. (a) (10) (B) of this section and section 3121(b) (10) (B) of Title 26] shall apply to services performed after December 31, 1972." EFFECTIVE DATE OF 1956 AMENDMENTS Section 104 (1) of act Aug. 1, 1956, ch. 836, as amended by Pub. L. 92-603, title I, § 125 (b), Oct. 30, 1972, 86 Stat. 1357, provided that: ... (2) (A) "(1) [Repealed] "(B) [Repealed] TRANSFER OF FUNCTIONS The Environmental Science Services Administration in the Department of Commerce, including the offices of the Administrator and Deputy Administrator thereof, were abolished by Reorg. Plan No. 4 of 1970, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090, set out in the Appendix to Title 5, Government Organization and Employees, which created the National Oceanic and Atmospheric Administration in the Department of Commerce and transferred the personnel, property, records, and unexpended balances of funds of the Environmental Science Services Administration to such newly created National Oceanic and Atmospheric Administration. The components of the Environmental Science Services Administration thus transferred included the Weather Bureau [now the National Weather Service], the Coast and Geodetic Survey [now the National Ocean Survey], the Environmental Data Service, the National Environmental Satellite Center, and the ESSA Research Laboratories. COVERAGE OF FEDERAL HOME LOAN BANK EMPLOYEES Section 125 (a) of Pub. L. 92-603 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 1954 [section 3121 (b) (6) (B) (ii) of Title 26], 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 employ 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 employ 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 effective ly if an amount equal to the taxes imposed by sec 3101 and 3111 of such Code [sections 3101 and 3111 of Title 26] with respect to the services of all such § 411. Definitions relating to self-employment. The term "net earnings from self-employment" means the gross income, as computed under chapter 1 of Title 26, Internal Revenue Code of 1939, derived by an individual from any trade or business carried on by such individual, less the deductions allowed under such chapter which are attributable to such trade or business, plus his distributive share (whether or not distributed) of the ordinary net income or loss, as computed under section 183 of Title 26, Internal Revenue Code of 1939, from any trade or business carried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary net income or loss (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-employment derived from the performance of service described in subsection (c) (4) of this section without regard to section 107 (relating to rental value of parsonages), section 119 (relating to meals and lodging furnished for the convenience of the employer), section 911 (relating to earned income from sources without the United States) and section 931 (relating to income from sources within possessions of the United States) of Title 26, Internal Revenue Code of 1954; (8) The term "possession of the United States" as used in sections 931 (relating to income from sources within the possessions of the United States) and 932 (relating to citizens of possessions of the United States) of Title 26, Internal Revenue Code of 1954, shall be deemed not to include the Virgin Islands, Guam, or American Samoa; (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 Treasury or his delegate, and which provides for payments on account of retirement, on a periodic basis, to partners generally or to a class or classes of partners, such payments to continue at least until such partner's death, if— (C) such partner's share, if any, of the capital of the partnership has been paid to him in full before the close of the partnership's taxable year referred to in subparagraph (A); and (10) In the case of an individual who has been a resident of the United States during the entire taxable year, the exclusion from gross income provided by section 911(a) (2) of Title 26 shall not apply. If the taxable year of a partner is different from that of the partnership, the distributive share which he is required to include in computing his net earnings from self-employment shall be based upon the ordinary net income or loss of the partnership for any taxable year of the partnership (even though beginning prior to 1951) ending within or with his taxable year. In the case of any trade or business which is carried on by an individual or by a partnership and in which, if such trade or business were carried on exclusively by employees, the major portion of the services would constitute agricultural labor as defined in section 410(f) of this title For purposes of the preceding sentence, gross income means (v) in the case of any such trade or business in which the income is computed under a cash receipts and disbursements method, the gross receipts from such trade or business reduced by the cost or other basis of property which was purchased and sold in carrying on such trade or business, adjusted (after such reduction) in accordance with the provisions of paragraphs (1) through (6) and paragraph (8) of this subsection; and (vi) in the case of any such trade or business in which the income is computed under an accrual method, the gross income from such trade or business, adjusted in accordance with the provisions of paragraph (1) through (6) and paragraph (8) of this subsection; and, for purposes of such sentence, if an individual (including a member of a partnership) derives gross income from more than one such trade or business, such gross income (including his distributive share of the gross income of any partnership derived from any such trade or business) shall be deemed to have been derived from one trade or business. The preceding sentence and clauses (i) through (iv) of the second preceding sentence shall also apply in the case of any trade or business (other than a trade or business specified in such second preceding sentence) which is carried on by an individual who is self-employed on a regular basis as defined in subsection (g) of this section, or by a partnership of which an individual is a member on a regular basis as defined in subsection (g) of this section, but only if such individual's net earnings from self-employment in the taxable year as determined without regard to this sentence are less than $1,600 and less than 66 percent of the sum (in such taxable year) of such individual's gross income derived from all trades or businesses carried on by him and his distributive share of the income or loss from all trades or businesses carried on by all the partnerships of which he is a member; except that this sentence shall not apply to more than 5 taxable years in the case of any individual, and in no case in which an individual elects to determine the amount of his net earnings from self-employment for a taxable year under the provisions of the two preceding sentences with respect to a trade or business to which the sec ond preceding sentence applies and with respect to a trade or business to which this sentence applies shall such net earnings for such year exceed $1,600. (b) Self-employment income. The term "self-employment income" means the net earnings from self-employment derived by an individual (other than a nonresident alien individual) during any taxable year beginning after 1950; except that such term shall not include (1) That part of the net earnings from selfemployment which is in excess of (E) For any taxable year ending after 1967 and beginning prior to 1972, (i) $7,800, minus (ii) the amount of the wages paid to such individual during the taxable year; and (F) For any taxable year beginning after 1971 and prior to 1973, (i) $9,000, minus (ii) the amount of the wages paid to such individual during the taxable year; and (G) For any taxable year beginning after 1972 and prior to 1974, (i) $10,800, minus (ii) the amount of the wages paid to such individual during the taxable year; and (H) For any taxable year beginning after 1973 and prior to 1975, (i) $13,200, minus (ii) the amount of the wages paid to such individual during the taxable year; and (I) For any taxable year beginning in any calendar year after 1974, (i) an amount equal to the contribution and benefit base (as determined under section 430 of this title) which is effective for such calendar year, minus (ii) the amount of the wages paid to such individual during such taxable year; or (g) Regular basis. An individual shall be deemed to be self-employed on a regular basis in a taxable year, or to be a member of a partnership on a regular basis in such year, if he had net eanings from self-employment, as defined in the first sentence of subsection (a) of this section, of not less than $400 in at least two of the three consecutive taxable years immediately preceding such taxable year from trades or businesses carried on by such individual or such partnership. (As amended Mar. 17, 1971, Pub. L. 92-5, title II, § 203 (a) (2), 85 Stat. 10; July 1, 1972, Pub. L. 92-336, title II, § 203 (a) (2), 86 Stat. 418; Oct. 30, 1972, Pub. L. 92-603, title I, §§ 121(a), 124(a), 140(a), 86 Stat. 1353, 1357, 1366; July 9, 1973, Pub. L. 93-66, title II, § 203 (a) (2), 87 Stat. 153; Dec. 31, 1973, Pub. L. 93233, § 5(a) (2), 87 Stat. 953.) AMENDMENTS 1973-Subsec. (b) (1) (H). Pub. L. 93-233 substituted "$13,200" for "$12,600". Pub. L. 93-66 substituted "$12,600" for "$12,000". 1972 Subsec. (a). Pub. L. 92-603, §§ 121(a)(1), 124(a), 140 (a), struck out provisions of par. (7) relating to citizens of the United States performing the specified services as an employee of an American employer (as defined in section 410 (e) of this title) or as a minister in a foreign country who has a congregation composed predominantly of United States citizens, and added provisions in par. (7) relating to the applicability of sections 911 and 931 of Title 26 and added par. (10) and provisions for an optional method for determining self-employment earnings. Subsec. (b) (1) (F). Pub. L. 92-336, § 203 (a) (2) (A), added "and prior to 1973" after "1971". Subsec. (b)(1)(G)−(I). Pub. L. 92-336, § 203 (a) (2) (B), added subsec. (b) (1) (G)−(I). Subsec. (g). Pub. L. 92-603, § 121 (a) (2), added subsec. (g). 1971-Subsec. (b) (1) (E). Pub. L. 92-5, § 203 (a) (2) (A), added "and beginning prior to 1972" after "1967". Subsec. (b) (1) (F). Pub. L. 92–5, § 203 (a) (2) (B), added subsec. (b) (1) (F). EFFECTIVE DATE OF 1973 AMENDMENTS Amendment by Pub. L. 93-233 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 5(e) of Pub. L. 93-233, set out as a note under section 409 of this title. Amendment by Pub. L. 93-66 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 203 (e) of Pub. L. 93-66, set out as a note under section 409 of this title. EFFECTIVE DATE OF 1972 AMENDMENTS Section 121(c) of Pub. L. 92-603 provided that: "The amendments made by this section [enacting subsec. (g) of this section and amending subsecs. (a) of this section and section 1402 of Title 26] shall apply only with respect to taxable years beginning after December 31, 1972." Section 140 (c) of Pub. L. 92-603 provided that: "The amendments made by this section [amending subsec. (a) (7) of this section and section 1402(a)(8) of Title 26] shall apply with respect to taxable years beginning after December 31, 1972." Section 124 (c) of Pub. L. 92-603 provided that: "The amendments made by this section [enacting subsec. (a) (10) of this section and section 1402 (a) (11) of Title 26] shall apply with respect to taxable years beginning after December 31, 1972." Amendment by Pub. L. 92-336 applicable only with respect to taxable years beginning after 1972, see section 203 (c) of Pub. L. 92-336, set out as a note under section 409 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Amendment by Pub. L. 92-5 applicable only with respect to taxable years beginning after 1971, see section 203 (c) of Pub. L. 92-5, set out as a note under section 409 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 430, 1382 of this title. § 413. Quarter and quarter of coverage. (a) Definitions. For the purposes of this subchapter— (2) The term "quarter of coverage" means a quarter in which the 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-employment income, except that (ii) if the wages paid to any individual in any calendar year equal $3,000 in the case of a calendar 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 calendar year after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971 and before 1973, or $10,800 in the case of a calendar year after 1972 and before 1974, or $13,200 in the case of a calendar year after 1973 and before 1975, 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 with respect to which such contribution and benefit base is effective, each quarter of such year shall (subject to clause (i)) be a quarter of coverage; (iii) if an individual has self-employment income 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 beginning before 1972, or $9,000 in the case of a taxable year beginning 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 taxable 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, each quarter any part of which falls in such year shall (subject to clause (i)) be a quarter of coverage; (As amended Mar. 17, 1971, Pub. L. 92-5, title П, § 203 (a) (3), 85 Stat. 10; July 1, 1972, Pub. L. 92-336, title II, § 203 (a) (3), 86 Stat. 418; July 9, 1973, Pub. L. 93-66, title II, § 203 (a) (3), 87 Stat. 153; Dec. 31, 1973, Pub. L. 93-233, § 5(a) (3), 87 Stat. 953.) AMENDMENTS 1973-Subsec. (a) (2) (ii), (iii). Pub. L. 93-233 substituted "$13,200" for "$12,600". Pub. L. 93-66 substituted "$12,600" for "$12,000", in clauses (11) and (111). 1972 Subsec. (a) (2) (ii). Pub. L. 92–336, § 203 (a) (3) (A), added provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective. Subsec. (a) (2) (111). Pub. L. 92-336, § 203 (a) (3) (B), added provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974. 1971 Subsec. (a) (2) (ii). Pub. L. 92-5, § 203(a) (3) (A), substituted "after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971" for "after 1967". Subsec. (a) (2) (iii). Pub. L. 92-5, § 203 (a) (3) (B), substituted "after 1967 and beginning before 1972, or $9,000 in the case of a taxable year beginning after 1971" for "after 1967". EFFECTIVE DATE OF 1972 AMENDMENTS Amendment by Pub. L. 93-233 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 5(e) of Pub. L. 93-233, set out as a note under section 409 of this title. Amendment by Pub. L. 93-66 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 203 (e) of Pub. L. 93-66, set out as a note under section 409 of this title. EFFECTIVE DATE OF 1972 AMENDMENTS Amendment of subsec. (a) (2) (ii) of this section by section 203 (a)(3)(A) of Pub. L. 92-336 applicable only with respect to remuneration paid after December 1972, see section 203 (c) of Pub. L. 92-336, set out as a note under section 409 of this title. Amendment of subsec. (a) (2) (iii) of this section by section 203 (a) (3) (B) of Pub. L. 92-336 applicable only with respect to taxable years beginning after 1972, see section 203 (c) of Pub. L. 92-336, set out as a note under section 409 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Amendment of subsec. (a) (2) (11) of this section by section (a) (3) (A) of Pub. L. 92-5 applicable only with respect to remuneration paid after December 1971, see section 203 (c) of Pub. L. 92-5, set out as a note under section 409 of this title. Amendment of subsec. (a) (2) (iii) of this section by section (a) (3) (B) of Pub. L. 92-5 applicable only with respect to taxable years beginning after 1971, see section 203 (c) of Pub. L. 92-5, set out as a note under section 409 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 430 of this title. §414. Insured status for purposes of old-age and survivors insurance benefits. For the purposes of this subchapter (a) Fully insured individual. The term "fully insured individual" means any individual who had not less than (1) one quarter of coverage (whenever acquired) for each calendar year elapsing after 1950 (or, if later, the year in which he attained age 21) and before the year in which he died or (if earlier) the year in which he attained age 62, except that in no case shall an individual be a fully insured individual unless he has at least 6 quarters of coverage; or (2) 40 quarters of coverage; or (3) in the case of an individual who died before 1951, 6 quarters of coverage; not counting as an elapsed year for purposes of paragraph (1) any year any part of which was included in a period of disability (as defined in section 416 (i) of this title). (As amended Oct. 30, 1972, Pub. L. 92-603, title I, § 104(a), 86 Stat. 1340.) AMENDMENTS 1972-Subsec. (a) (1). Pub. L. 92-603 struck out provisions setting a separate age computation point for women and reduced from age 65 to age 62 the age computation point for men. EFFECTIVE DATE OF 1972 AMENDMENT Section 104 (1) of Pub. L. 92-603 provided that: "(1) The amendments made by this section [amending subsec. (a)(1) of this section, sections 415(b) (3), 416(1) (3) (A), 423 (a)(2), (c)(1) (A), and 427 (a), (b), of this title and provisions set out as a note under section 415 of this title] (except the amendment made by subsection (1), and the amendment made by subsection (g) to section 209(1) of the Social Security Act) shall apply only in the case of a man who attains (or would attain) age 62 after December 1974. The amendment made by subsection (1), and the amendment made by subsection (g) to section 209 (1) of the Social Security Act [amending section 409(1) of this title and section 3121(a) (9) of Title 26], shall apply only with respect to payments after 1974. "(2) In the case of a man who attains age 62 prior to 1975, the number of his elapsed years for purposes of section 215(b) (3) of the Social Security Act [section 415 (b) (3) of this title] shall be equal to (A) the number determined under such section as in effect on September 1, 1972, or (B) if less, the number determined as though he attained age 65 in 1975, except that monthly benefits under title II of the Social Security Act [this subchapter] for months prior to January 1973 payable on the basis of his wages and self-employment income shall be determined as though this section had not been enacted. "(3) (A) In the case of a man who attains or will attain age 62 in 1973, the figure '65' in sections 214(a) (1), 223 (c) (1) (A), and 216(1) (3) (A) of the Social Security Act [subsec. (a)(1) of this section and sections 423 (c) (1) (A) and 416(1)(3)(A) of this title] shall be deemed to read '64'." "(B) In the case of a man who attains or will attain age 62 in 1974, the figure '65' in sections 214(a) (1), 223 (c) (1) (A), and 216(1)(3)(A) of the Social Security Act [subsec. (a) (1) of this section and sections 423 (c) (1) (A) and 416(1) (3) (A) of this title] shall be deemed to read '63'." § 415. Computation of primary insurance amount. The primary insurance amount of an insured individual shall be determined as follows: (1) Subject to the conditions specified in subsections (b), (c), and (d) of this section and except as provided in paragraphs (2) and (3) of this subsection, such primary insurance amount shall be whichever of the following amounts is the largest: (A) the amount in column IV of the following table (or, if larger, the amount in Column IV of the latest table deemed to be such table under subsection (i) (2) (D) of this section) on the line on which in column III of such table appears his average monthly wage (as determined under subsection (b) of this section); (B) the amount in column IV of such table on the line on which in column II appears his primary insurance amount (as determined under subsection (c) of this section); or (C) the amount in column IV of such table on the line on which in column I appears his primary insurance benefit (as determined under subsection (d) of this section). (2) In the case of an individual who was entitled to disability insurance benefit for the month before the month in which he died, became entitled to old-age insurance benefits, or attained age 65, such primary insurance amount shall be (A) the amount in column IV of such table which is equal to the primary insurance amount upon which such disability insurance benefit is based; except that if such individual was entitled to a disability insurance benefit under section 423 of this title for the month before the effective month of a new table (whether enacted by another law or deemed to be such table under subsection (i) (2) (D) of this section) and in the following month became entitled to an old-age insurance benefit, or he died in such following month, then his primary insurance amount for such following month shall be the amount in column IV of the new table on the line on which in column II of such table appears his primary insurance amount for the month before the effective month of the table (as determined under subsection (c) of this section) instead of the amount in column IV equal to the primary insurance amount on which his disability insurance benefit is based. For purposes of this paragraph, the term "primary insurance amount" with respect to any individual means only a primary insurance amount determined under paragraph (1) (and such individual's benefits shall be deemed to be based upon the primary insurance amount as so determined); or (B) an amount equal to the primary insurance amount upon which such disability insurance benefit is based if such primary insurance amount was determined under paragraph (3). (3) Such primary insurance amount shall be an amount equal to $9.00 multiplied by the individual's years of coverage in excess of 10 in any case in which such amount is higher than the individual's primary insurance amount as determined under paragraph (1) or (2). For purposes of paragraph (3), an individual's "years of coverage" is the number (not exceeding 30) equal to the sum of (i) the number (not exceeding 14 and disregarding any fraction) determined by dividing the total of the wages credited to him (including wages deemed to be paid prior to 1951 to such individual under section 417 of this title, compensation under the Railroad Retirement Act of 1937 prior to 1951 which is creditable to such individual pursuant to this subchapter and wages deemed to be paid prior to 1951 to such individual under section 431 of this title) for years after 1936 and before 1951 by $900, plus (ii) the number equal to the number of years after 1950 each of which is a computation base year (within the meaning of subsection (b) (2) (C) of this section) and in each of which he is credited with wages (including wages deemed to be paid to such individual under section 417 of this title, compensation under the Railroad Retirement Act of 1937 which is creditable to such individual pursuant to this subchapter, and wages deemed to be paid to such individual under section 429 of this title) and self-employment income of not less than 25 percent of the maximum amount which, pursuant to subsection (e) of this section, may be counted for such year. TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY BENEFITS |