§ 62. Adjusted gross income defined
(a)
General rule
For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions:
(1)
Trade and business deductions
The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.
(2)
Certain trade and business deductions of employees
(A)
Reimbursed expenses of employees
The deductions allowed by part VI (section
161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.
(B)
Certain expenses of performing artists
The deductions allowed by section
162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.
(C)
Certain expenses of officials
The deductions allowed by section
162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.
(D)
Certain expenses of elementary and secondary school teachers
In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, or 2011, the deductions allowed by section
162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.
(E)
Certain expenses of members of reserve components of the Armed Forces of the United States
The deductions allowed by section
162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter
I of chapter
57 of title
5, United States Code, paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.
(3)
Losses from sale or exchange of property
The deductions allowed by part VI (sec.
161 and following) as losses from the sale or exchange of property.
(7)
Retirement savings
The deduction allowed by section
219 (relating to deduction of certain retirement savings).
(9)
Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits
The deductions allowed by section
165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business, to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.
(12)
Certain required repayments of supplemental unemployment compensation benefits
The deduction allowed by section
165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).
(13)
Jury duty pay remitted to employer
Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term “jury pay” means any payment received by the individual for the discharge of jury duty.
(14)
Deduction for clean-fuel vehicles and certain refueling property
The deduction allowed by section
179A.
(20)
Costs involving discrimination suits, etc.
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter
III of chapter
37 of title
31, United States Code [1] or a claim made under section 1862(b)(3)(A) of the Social Security Act (42 U.S.C. 1395y
(b)(3)(A)). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.
(21)
Attorneys fees relating to awards to whistleblowers
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section
7623
(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.
Nothing in this section shall permit the same item to be deducted more than once.
(b)
Qualified performing artist
(1)
In general
For purposes of subsection (a)(2)(B), the term “qualified performing artist” means, with respect to any taxable year, any individual if—
(A)
such individual performed services in the performing arts as an employee during the taxable year for at least 2 employers,
(B)
the aggregate amount allowable as a deduction under section
162 in connection with the performance of such services exceeds 10 percent of such individual’s gross income attributable to the performance of such services, and
(2)
Nominal employer not taken into account
An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200.
(3)
Special rules for married couples
(A)
In general
Except in the case of a husband and wife who lived apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the taxpayer and his spouse file a joint return for the taxable year.
(B)
Application of paragraph (1)
In the case of a joint return—
(D)
Joint return
For purposes of this subsection, the term “joint return” means the joint return of a husband and wife made under section
6013.
(c)
Certain arrangements not treated as reimbursement arrangements
For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if—
(1)
such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or
(d)
Definition; special rules
(1)
Eligible educator
(e)
Unlawful discrimination defined
For purposes of subsection (a)(20), the term “unlawful discrimination” means an act that is unlawful under any of the following:
(2)
Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).
(12)
Chapter
43 of title
38, United States Code (relating to employment and reemployment rights of members of the uniformed services).
(14)
Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2, 2000e–3, or 2000e–16).
(15)
Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617).
(16)
Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203).
(17)
Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law.
(18)
Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law—
(ii)
regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.
[1] So in original. Probably should be followed by a comma.
[2] See References in Text note below.