applies) is more than $1,800 and his distributive share (whether or not distributed) of income described in section 702 (a) (9) of Title 26, Internal Revenue Code of 1954, derived from such trade or business (computed under this subsection without regard to this sentence) is less than $1,200, his distributive share of income described in such section 702 (a) (9) derived from such trade or business may, at his option, be deemed to be $1,200. 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 paragraphs (1) through (6) 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.

(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—

(A) For any taxable year ending prior to 1955, (i) $3,600, minus (ii) the amount of the wages paid to such individual during the taxable year; and

(B) For any taxable year ending after 1954 and prior to 1959, (i) $4,200, minus (ii) the amount of the wages paid to such individual during the taxable year; and

(C) For any taxable year ending after 1958, (i) $4,800, minus (ii) the amount of the wages paid to such individual during the taxable year;

or

(2) The net earnings from self-employment, if such net earnings for the taxable year are less than $400.

An individual who is not a citizen of the United States but who is a resident of the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa shall not, for the purpose of this subsection, be considered to be a nonresident alien individual.

(c) Trade or business.

The term "trade or business", when used with reference to self-employment income or net earn

ings from self-employment, shall have the same meaning as when used in section 23 of Title 26, except that such term shall not include—

(1) The performance of the functions of a public office;

(2) The performance of service by an individual as an employee, other than

(A) service described in section 410(a) (14) (B) of this title performed by an individual who has attained the age of eighteen,

(B) service described in section 410 (a) (16), (C) service described in section 410 (a) (11), (12), or (15) of this title performed in the United States by a citizen of the United States, and

(D) service described in paragraph (4) of this subsection;

(3) The performance of service by an individual as an employee or employee representative as defined in section 1532 of Title 26;

(4) The performance of service by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or

(5) The performance of service by an individual in the exercise of his profession as a doctor of medicine or Christian Science practitioner; or the performance of such service by a partnership.

The provisions of paragraph (4) shall not apply to service (other than service performed by a member of a religious order who has taken a vow of poverty as a member of such order) performed by an individual during the period for which a certificate filed by such individual under section 1402 (e) of Title 26, Internal Revenue Code of 1954, is in effect. The provisions of paragraph (5) shall not apply to service performed by an individual in the exercise of his profession as a Christian Science practitioner during the period for which a certificate filed by him under section 1402 (e) of Title 26, Internal Revenue Code of 1954, is in effect.

(d) Partnership and partner.

The term "partnership" and the term "partner" shall have the same meaning as when used in supplement F of chapter 1 of Title 26.

(e) Taxable year.

The term "taxable year" shall have the same meaning as when used in chapter 1 of Title 26; and the taxable year of any individual shall be a calendar year unless he has a different taxable year for the purposes of chapter 1 of Title 26, in which case his taxable year for the purposes of this subchapter shall be the same as his taxable year under chapter 1 of Title 26.

(f) Partner's taxable year ending as result of death. In computing a partner's net earnings from selfemployment for his taxable year which ends as a result of his death (but only if such taxable year ends within, and not with, the taxable year of the partnership), there shall be included so much of the deceased partner's distributive share of the partnership's ordinary income or loss for the partnership taxable year as is not attributable to an interest in

the partnership during any period beginning on or after the first day of the first calendar month following the month in which such partner died. For purposes of this subsection

(1) in determining the portion of the distributive share which is attributable to any period specified in the preceding sentence, the ordinary income or loss of the partnership shall be treated as having been realized or sustained ratably over the partnership taxable year; and

(2) the term "deceased partner's distributive share" includes the share of his estate or of any other person succeeding, by reason of his death, to rights with respect to his partnership interest. (Aug. 14, 1935, ch. 531, title II, § 211, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, and amended Sept. 23, 1950, ch. 994, title II, § 221(j) (2), 64 Stat. 947; Sept. 1, 1954, ch. 1206, title I, §§ 101(d), (g), 104(b), 68 Stat. 1054, 1078; Aug. 1, 1956, ch. 836, title I, §§ 104 (c) (2), (3), (d), (h), 106(a), 70 Stat. 824-826, 828; Aug. 30, 1957, Pub. L. 85-239, § 5(a), 71 Stat. 523; Aug. 28, 1958, Pub. L. 85-840, title I, § 102(b), title III, § 313 (a), 72 Stat. 1019, 1036; Sept. 13, 1960, Pub. L. 86-778, title I, §§ 103(g), (h), (j) (3), 106(a), 74 Stat. 937, 938, 945; Feb. 26, 1964, Pub. L. 88-272, title II, § 227(b) (7), 78 Stat. 98.)

REFERENCES IN TEXT

Chapter 1 of Title 26, referred to in subsecs. (a) and (e), which was a reference to Chapter 1 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by Subtitle A of said Title 26.

Section 183 of Title 26, referred to in subsec. (a), which was a reference to section 183 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by sections 702, 703 of said Title 26.

Section 25 (a) of Title 26, referred to in subsec. (a) (2), which was a reference to section 25 (a) of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by sections 35, 151-153 of said Title 26.

Section 23 (s) of Title 26, referred to in subsec. (a) (4), which was a reference to section 23 (s) of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by section 172 of said Title 26.

Section 23 of Title 26, referred to in subsec. (c), which was a reference to section 23 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by section 161 et seq. of said Title 26.

Section 1532 of Title 26, referred to in subsec. (c) (3), which was a reference to section 1532 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by sections 3231, 7701 (a)—(9) of said Title 26.

Supplement F of chapter 1 of Title 26, referred to in subsec. (d), which was a reference to Supplement F of chapter 1 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I. R. C. 1954, and is now covered by sections 701-704, 706, 6031, 6063, 6065 (a) of said Title 26.

For provision deeming a reference in other laws to a provision of I. R. C. 1939, also as a reference to corresponding provision of I. R. C. 1954, see section 7852 (b) of said Title 26.

AMENDMENTS

1964 Subsec. (a)(3)(B), Pub. L. 88-272 substituted ", coal, or iron ore, if section 631 of Title 26 applies" for "or coal, if section 117(j) of Title 26 is applicable."

1960-Subsec. (a)(6). Pub. L. 86-778, § 103 (1) (3), substituted "section 933 of Title 26" for "section 116(1) of Title 26", and eliminated provisions which defined the term "possession of the United States" in the case of

taxable years beginning before the effective date specified in former section 419 of this title.

Subsec. (a) (8). Pub. L. 86-778, § 103(g), added par. (8), and inserted a reference to paragraph (8) in cls. (v) and (vi) of the last sentence.

Subsec. (b). Pub. L. 86–778, § 103 (h), provided that individuals who are not citizens of the United States but who are residents of Guam or American Samoa shall not, for the purposes of this subsection, be considered to be nonresident alien individuals, and eliminated provisions which related to individuals who were citizens of Puerto Rico prior to the effective date specified in section 419 of this title.

Subsec. (c) (2). Pub. L. 86-778, § 106(a), excluded service described in section 410(a) (11), (12), or (15) of this title performed in the United States by a citizen of the United States.

1958 Subsec. (b)(1). Pub. L. 85-840, § 102(b), inserted "and prior to 1959" following "year ending after 1954" in cl. (B), and added cl. (C).

Subsec. (f). Pub. L. 85-840, § 313 (a), added subsec. (f). 1957 Subsec. (a) (7). Pub. L. 85-239 permitted computation of net earnings without regard to sections 107 and 119 of Title 26, Internal Revenue Code of 1954.

1956 Subsec. (a). Act Aug. 1, 1956, § 106(a), amended generally the last two sentences to include those businesses in which the income is computed under an accrual method, and partnerships, to change the method of computation of net earnings for individuals by permitting those whose gross income is not more than $1,800 to deem their net earnings to be 663 percent of such gross income, and those whose gross income is more than $1,800 and the net earnings are less than $1,200, to deem the net earnings to be $1,200, and to provide for the computation of net earnings for members of partnerships.

Subsec. (a) (1). Act Aug. 1, 1956, § 104 (c) (2), eliminated from the exclusion, income derived by an owner or tenant of land if such income is derived under an arrangement with another individual for the production by such other individual of agricultural or horticultural commodities if such arrangement provides horticultural commodities if such arrangement provides for material participation by the owner or tenant in the production or the management of the production of such commodities, and there is material participation by the owner or tenant with respect to any such commodity.

Subsec. (a) (7) (B). Act Aug. 1, 1956, § 104 (h), included citizens of the United States who are ministers in foreign countries and have congregations composed predominantly of citizens of the United States. Subsec. (c) (2). Act Aug. 1, 1956, § 104 (c) (3), cluded within the term "trade or business" service described in section 410 (a) (16) of this title.

in

Subsec. (c) (5). Act Aug. 1, 1956, § 104(d), eliminated the exclusion from coverage in the case of lawyers, dentists, osteopaths, veterinarians, chiropractors, naturopaths, and optometrists.

1954 Subsec. (a) (1). Act Sept. 1, 1954, § 101 (g) (2), made it clear that rentals paid in crop shares would be excluded as being rentals from real estate.

Subsec. (a) (2). Act Sept. 1, 1954, § 101(g) (1), redesignated former par. (3) as (2), and deleted former par. (2). Subsec. (a) (3). Act Sept. 1, 1954, § 101 (g) (3), redesignated former par. (4) as (3), and excluded from "net earnings from self-employment" the gain or loss derived from coal royalties under certain conditions.

Subsec. (a) (4)—(6). Act Sept. 1, 1954, § 101(g) (1), redesignated former pars. (5)—(7) as (4)-(6), respectively.

Subsec. (a) (7). Act Sept. 1, 1954, § 101 (d) (3), added par. (7).

Subsec. (a). Act Sept. 1, 1954, § 101 (g) (1), added two new sentences at the end of the subsection.

Subsec. (b)(1). Act Sept. 1, 1954, § 104 (b), excluded from self-employment income, for taxable years after 1954 any amount in excess of $4,200 minus the amount of the wages paid to an individual during the taxable year.

Subsec. (c). Act Sept. 1, 1954, § 101 (d) (2), added two new sentences at the end thereof making the provisions of par. (4) inapplicable to service performed during the

period for which a certificate filed under section 1402(e) of Title 26, Internal Revenue Code of 1954, is in effect. Subsec. (c) (2). Act Sept. 1, 1954, 101(d) (1), inserted after the word "eighteen", the words "and other than service described in paragraph (4) of this subsection." Subsec. (c) (5). Act Sept. 1, 1954, § 101(g) (4), eliminated the exclusion from coverage in the case of architects, certified public accountants, accountants registered or licensed as accountants under State or municipal law, full-time practicing public accountants, funeral directors, or professional engineers.

1950 Subsec. (a) (7). Act Sept. 23, 1950, made provisions applicable to Puerto Rico, and provided the basis for computation of net earnings.

EFFECTIVE DATE OF 1964 AMENDMENT Amendment of section by Pub. L. 88-272 applicable with respect to amounts received or accrued in taxable years beginning after Dec. 31, 1963, attributable to iron ore mined in such years, see section 227 (c) of Pub. L. 88-272, set out as a note under section 272 of this title.

EFFECTIVE DATE OF AMENDMENT

Amendment of subsec. (a) (6) of this section by Pub. L. 86-778 effective on Sept. 13, 1960, see section 103 (v) (1), (3) of Pub. L. 86-778, set out as a note under section 402 of this title.

Enactment of subsec. (a) (8) of this section applicable only in the case of taxable years beginning after 1960, except that, insofar as such enactment involves the nonapplication of section 932 of Title 26 to the Virgin Islands for purposes of chapter 2 of Title 26 and this section, such enactment shall be effective in the case of all taxable years with respect to which such chapter 2 (and corresponding provisions of prior law) and this section are applicable, see section 103 (v) (1) of Pub. L. 86778, set out as a note under section 402 of this title. Amendment of subsec. (b) of this section by Pub. L. 86-778 applicable only in the case of taxable years beginning after 1960, see section 103 (v) (1), (3) of Pub. L. 86-778, set out as a note under section 402 of this title.

Section 106 (c) of Pub. L. 86-778 provided that: "The amendments made by this section [to subsec. (c) (2) of this section and section 1402 (c) (2) of Title 26] shall apply only with respect to taxable years ending on or after December 31, 1960; except that for purposes of section 203 of the Social Security Act [section 403 of this title], the amendment made by subsection (a) [to subsec. (c) (2) of this section] shall apply only with respect to taxable years (of the individual performing the service involved) beginning after the date of the enactment of this Act [Sept. 13, 1960]."

EFFECTIVE DATE OF 1958 AMENDMENT

Section 313 (b) of Pub. L. 85-840 provided that: "The amendment made by subsection (a) [adding subsec. (f) of 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 [section 603 (b) (2) of this title] are met."

EFFECTIVE DATE OF 1957 AMENDMENT Amendment of subsec. (a) (7) 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 of 1954.

EFFECTIVE DATE OF 1956 AMENDMENT Amendment of subsecs. (a) (1) and (c) (5) of this section by section 104 (c) (2), (d) of act Aug. 1, 1956, applicable with respect to taxable years ending after 1955, see section 104 (1) of such act Aug. 1, 1956, set out as a note under section 410 of this title.

Amendment of subsec. (a) (7) (B) by section 104 (h) of act Aug. 1, 1956, applicable with respect to the same taxable years with respect to which the amendment to 36-500 0-65-vol. 9-13

section 3121 (k) (1) of Title 26, Internal Revenue Code of 1954 applies, see section 104 (1) 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, Internal Revenue Code of 1954.

Amendment of subsec. (c) (2) of this section by section 104 (c)(3) of act Aug. 1, 1956, applicable with respect to taxable years ending after 1954, see section 104 (1) of act Aug. 1, 1956, set out as a note under section 410 of this title.

Section 106 (b) of act Aug. 1, 1956, provided that: "The amendment made by subsection (a) [to the last two sentences of subsec. (a) of this section] shall be effective with respect to taxable years ending on or after December 31, 1956."

EFFECTIVE DATE OF 1954 AMENDMENT

Section 101 (n) of act Sept. 1, 1954, provided in part that the amendment to subsec. (a) (3) by section 101 (g)(3) of act Sept. 1, 1954 shall be applicable only with respect to taxable years beginning after 1950 and that the amendments to subsecs. (a) and (c) by section 101 (d), (g) (1), (2), (4), of act Sept. 1, 1954 should be applicable only with respect to taxable years ending after 1954.

Section 101 (n) of act Sept. 1, 1954, also provided in part that: "For purposes of section 203 of the Social Security Act, the amendments [to subsecs. (a) and (c) of this section] made by paragraphs (1), (2), and (4) of subsection (g) and by subsection (d) [of said section 101] shall be effective with respect to net earnings from self-employment derived after 1954. The amount of net earnings from self-employment derived during any taxable year ending in, and not with the close of, 1955 shall be credited equally to the calendar quarter in which such taxable year ends and to each of the three or fewer preceding quarters any part of which is in such taxable year; and, for purposes of the preceding sentence of this subsection, net earnings from self-employment so credited to calendar quarters in 1955 shall be deemed to have been derived after 1954."

EFFECTIVE DATE OF 1950 AMENDMENT Amendment of section by act Sept. 23, 1950, was applicable with respect to taxable years beginning after Dec. 31, 1950.

§ 413. Quarter and quarter of coverage. (a) Definitions.

For the purposes of this subchapter

(1) The term "quarter", and the term "calendar quarter", means a period of three calendar months ending on March 31, June 30, September 30, or December 31.

(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

(i) no quarter after the quarter in which such individual died shall be a quarter of coverage, and no quarter any part of which was 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 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, 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, each quarter any part of which falls in such year shall (subject to clause (i)) be a quarter of coverage;

(iv) if an individual is paid wages for agricultural labor in a calendar year after 1954, then, subject to clause (i), (a) 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; (b) 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; (c) 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 (d) 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; and

(v) no quarter shall be counted as a quarter of coverage prior to the beginning of such quarter.

If, in the case of any individual who has attained age 62 or died or is under a disability and who has been paid wages for agricultural labor in a calendar year after 1954, the requirements for insured status in subsection (a) or (b) of section 414 of this title, the requirements for entitlement

to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 416(i) of this title are not met after assignment of quarters of coverage to quarters in such year as provided in clause (iv) of the preceding sentence, but would be met if such quarters of coverage were assigned to different quarters in such year, then such quarters of coverage shall instead be assigned, for purposes only of determining compliance with such requirements, to such different quarters. If, in the case of an individual who did not die prior to January 1, 1955, and who attained age 62 (if a woman) or age 65 (if a man) or died before July 1, 1957, the requirements for insured status in section 414(a) (3) of this title are not met because of his having too few quarters of coverage but would be met if his quarters of coverage in the first calendar year in which he had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid (any such wages paid that are reallocated on an earned basis shall not be used in determining quarters of coverage for subsequent calendar years), then upon application filed by the individual or his survivors and satisfactory proof of his record of wages earned being furnished by such individual or his survivors the quarters of coverage in such calendar year may be determined on the basis of the periods during which wages were earned.

(b) Crediting of wages paid in 1937.

With respect to wages paid to an individual in the six-month periods commencing either January 1, 1937, or July 1, 1937; (A) if wages of not less than $100 were paid in any such period, one-half of the total amount thereof shall be deemed to have been paid in each of the calendar quarters in such period; and (B) if wages of less than $100 were paid in any such period, the total amount thereof shall be deemed to have been paid in the latter quarter of such period, except that if in any such period, the individual attained age sixty-five, all of the wages paid in such period shall be deemed to have been paid before such age was attained. (Aug. 14, 1935, ch. 531, title II, § 213, as added Aug. 28, 1950, ch. 809, title I, 104 (a), 64 Stat. 492, and amended July 18, 1952, ch. 945, §§ 3 (a), 66 Stat. 770; Sept. 1, 1954, ch. 1206, title I, §§ 104 (c), 106 (a), 108 (b), 68 Stat. 1078, 1084; Aug. 1, 1956, ch. 836, title I, § 105 (c), 70 Stat. 828; Aug. 28, 1958, Pub. L. 85-840, title I, § 102(c), 72 Stat. 1019; Apr. 22, 1960, Pub. L. 86-442, § 3, 74 Stat. 82; Sept. 13, 1960, Pub. L. 86-778, title II, § 206(a), 74 Stat. 949; June 30, 1961, Pub. L. 87-64, title I, § 102(c) (2) (A), (3) (B), 75 Stat. 134, 135.)

AMENDMENTS

1961-Subsec. (a). Pub. L. 87-64 substituted "has attained age 62" for "has attained retirement age", and "who attained age 62 (if a woman) or age 65 (if a man)" for "who attained retirement age."

1960 Subsec. (a)(2). Pub. L. 86-778 required each quarter of a calendar year before 1951 to be counted as a quarter of coverage if the individual received wages equal to $3,000 in the calendar year.

Pub. L. 86-442 added sentence in cl. (B) to permit the quarters of coverage in a calendar year to be determined on the basis of the periods during which wages were

earned in the case of individuals who did not die prior to Jan. 1, 1955, and who attained retirement age or died before July 1, 1957, who did not meet the requirements for insured status because of having too few quarters of coverage but who would meet the requirements if the quarters of coverage in the first calendar year in which they had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid.

1958 Subsec. (a)(2)(B). Pub. L. 85-840 inserted "and before 1959, or $4,800 in the case of a calendar year after 1958" following "after 1954" in cl. (ii), and “and before 1959, or $4,800 in the case of a taxable year ending after 1958" following “after 1954" in cl. (iii).

1956 Subsec. (a)(2) (B) (iv). Act Aug. 1, 1956, substituted "if such wages equal or exceed $100 but are less than $200" for "if such wages are less than $200".

1954 Subsec. (a)(2)(A). Act Sept. 1, 1954, § 106(a) (1), redefined "quarter of coverage," in the case of quarters occurring before 1951, to exclude any quarter any part of which was included in a period of disability, other than the initial quarter of such period, and which provided that any quarter any part of which was included in a period of disability, other than the first quarter of such period, could not be counted as a quarter of coverage in a calendar year in which wages of $3,000 or more were paid.

Subsec. (a) (2) (B). Act Sept. 1, 1954, § 104(c), provided that for calendar years after 1954 an individual shall be credited with a quarter of coverage for each quarter of the year if his wages for the year equal $4,200 and he shall be credited with a quarter of coverage for each quarter of a taxable year ending after 1954 in which the sum of his wages and self-employment income equal $4,200.

Subsec. (a) (2) (B). Act Sept. 1, 1954, § 108(b), provided for crediting quarters of coverage on the basis of annual amounts of wages received for agricultural labor. Subsec. (a) (2) (B) (1). Act Sept. 1, 1954, § 106(a)(2), redefined "quarter of coverage", for quarters occurring after 1950, to exclude any quarter any part of which was included in a period of disability, other than the first and last quarters of such period.

1952 Subsec. (a)(2)(A). Act July 18, 1952, § 3(a)(1), redefined the term "quarter of coverage".

Subsec. (a) (2) (B(1). Act July 18, 1952, § 3(a) (2), added "and no quarter * * • quarter of coverage".

Subsec. (a) (2) (B) (iii). Act July 18, 1952, § 3 (a) (3), substituted "shall (subject to clause (1) of this subparagraph) be a quarter of coverage" for "shall be a quarter of coverage".

EFFECTIVE DATE of 1961 AMENDMENT Amendment of subsec. (a) of this section by Pub. L. 87-64 applicable with respect to monthly benefits for months beginning on or after August 1, 1961 based on applications filed in or after March 1961, and with respect to lump-sum death payments under this subchapter in the case of deaths on or after August 1, 1961, see sections 102(f) and 109 of Pub. L. 87-64, set out as notes under section 402 of this title.

EFFECTIVE Date of 1960 AMENDMENTS Section 206(b) of Pub. L. 86-778 provided that: "(1) Except as provided in paragraph (2), the amendment made by subsection (a) [to subsec. (a)(2) of this section] shall apply only in the case of monthly benefits under title II of the Social Security Act [this subchapter], and the lump-sum death payment under section 202 of such Act [section 402 of this title], based on the wages and self-employment income of an individual

"(A) who becomes entitled to benefits under section 202(a) or 223 of such Act [section 402(a) or 423 of this title] on the basis of an application filed in or after the month in which this Act is enacted [Sept. 1960];

or

"(B) who is (or would, but for the provisions of section 215(f) (6) of the Social Security Act [section 415(b) (6) of this section], be) entitled to a recomputation of his primary insurance amount under section 215(1) (2) (A) of such Act [section 415(f) (2) (A) of this title] on the basis of an application filed in or

after the month in which this Act is enacted [Sept. 1960]; or

"(C) who dies without becoming entitled to benefits under section 202(a) or 223 of the Social Security Act [section 402 (a) or 423 of this title], and (unless he dies a currently insured individual but not a fully insured individual (as those terms are defined in section 214 of such Act) [section 414 of this title] without leaving any individual entitled (on the basis of his wages and self-employment income) to survivor's benefits or a lump-sum death payment under section 202 of such Act on the basis of an application filed prior to the month in which this Act is enacted [Sept. 1960];

or

"(D) who dies in or after the month in which this Act is enacted [Sept. 1960] and whose survivors are (or would, but for the provisions of section 215(f) (6) of the Social Security Act [section 415(f) (6) of this title], be) entitled to a recomputation of his primary insurance amount under section 215 (f) (4) (A) of such Act [section 415(f) (4) (A) of this title]; or

"(E) who dies prior to the month in which this Act is enacted [Sept. 1960] and (1) whose survivors are (or would, but for the provisions of section 215 (f) (6) of the Social Security Act [section 415(f) (6) of this title], be) entitled to a recomputation of his primary insurance amount under section 215(f) (4) (A) of such Act [section 415 (f)(4)(A) of this title], and (11) on the basis of whose wages and self-employment income no individual was entitled to survivor's benefits or a lump-sum death payment under section 202 of such Act [section 402 of this title] on the basis of an application filed prior to the month in which this Act is enacted [Sept. 1960] (and no individual was entitled to such a benefit, without the filing of an application, for any month prior to the month in which this Act is enacted [Sept. 1960]); or

"(F) who files an application for a recomputation under section 102(f)(2) (B) of the Social Security Amendments of 1954 [set out as a note under section 415 of this title] in or after the month in which this Act is enacted [Sept. 1960] and is (or would, but for the fact that such recomputation would not result in a higher primary insurance amount, be) entitled to have his primary insurance amount recomputed under such subparagraph; or

"(G) who dies and whose survivors are (or would, but for the fact that such recomputation would not result in a higher primary insurance amount for such individual, be) entitled, on the basis of an application filed in or after the month in which this Act [Sept. 1960] is enacted, to have his primary insurance amount recomputed under section 102(f) (2) (B) of the Social Security Amendments of 1954 [set out as a note under section 415 of this title].

"(2) The amendment made by subsection (a) [to subsec. (a) (2) of this section] shall also be applicable in the case of applications for disability determination under section 216(1) of the Social Security Act [section 416(1) of this title] filed in or after the month in which this Act is enacted [Sept. 1960].

"(3) Notwithstanding any other provision of this subsection, in the case of any individual who would not be a fully insured individual under section 214(a) of the Social Security Act [section 414(a) of this title] except for the enactment of this section, no benefits shall be payable on the basis of his wages and self-employment income for any month prior to the month in which this Act is enacted [Sept. 1960]."

Section 3 of Pub. L. 86-442 provided in part that: "This amendment [to subsec. (a)(2)(B)] shall be applicable in the case of monthly benefits under title II of the Social Security Act [this subchapter] for months after June 1957, and in the case of the lump-sum death payments under such title, with respect to deaths occurring after such month; the requirements for filing applications for such benefits and payments within certain time limits, as prescribed in sections 202 (1) and 202 (1) of such title [sections 402 (1) and 402(j) of this title], shall not apply if an application is filed within the one-year period beginning with the first day of the