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TITLE 26-INTERNAL REVENUE CODE (B) in the case of an individual who has not attained age 65 before the close of the taxable year, income from pensions and an- nuities under a public retirement system (as defined in paragraph (8)(A)), to the extent included in gross income with- out reference to this subsection, but only to the extent such income does not represent compensation for personal services rendered during the taxable year. (5) Limitation on retirement income For purposes of this subsection, the amount of retirement income shall not exceed $2,500 less- (A) the reduction provided by subsection (b)(3), and (B) in the case of any individual who has not attained age 72 before the close of the taxable year- (i) if such individual has not attained age 62 before the close of the taxable year, any amount of earned income (as de- fined in paragraph (8)(B)) in excess of $900 received by such individual in the taxable year, or (ii) if such individual has attained age 62 before the close of the taxable year, the sum of one-half the amount of earned income received by such individual in the taxable year in excess of $1,200 but not in excess of $1,700, and the amount of earned income so received in excess of $1,700. (6) Limitation in case of married individuals In the case of a Joint return, paragraph (5) shall be applied by substituting "$3,750" for "$2,500". The $3,750 provided by the preced- ing sentence shall be divided between the spouses in such amounts as may be agreed on by them, except that not more tl,'n $2,500 may be assigned to either spouse. (7) Limitation in the case of separate returns In the case of a married individual filing a separate return, paragraph (5) shall be ap- plied by substituting "$1,875" for "$2,500". (8) Definitions For purposes of this subsection- (A) Public retirement system defined The term "public retirement system" means a pension, annuity, retirement, or similar fund or system established by the United States, a State, a possession of the United States, any political subdivision of any of the foregoing, or the District of Co- lumbia. (B) Earned income The term "earned income" has the mean. ing assigned to such term by section 911(b), except that such term does not include any amount received as a pension or annuity. (f) Nonresident alien ineligible for cedit No credit shall be allowed under this section to any nonresident alien. (Aug. 16, 1954, ch. 736, 68A Stat. 15; Aug. 9, 1955, ch. 659, § 1, 69 Stat. 591; Jan. 28, 1956, ch. 17, § 1, 70 Stat. 8; Oct. 10, 1962, Pub. L. 87-792; § 7(a), 76 Stat. 828; Oct. 24, 1962, Pub. L. 87-876, § 1, 76 Stat. 1199; Feb. 26, 1964, Pub. L. 88-272, title I, § 113(a), title II, §§ 201(d)(3), 202(a), 78 Stat. 24, 32, 33; Sept. 2, 1974, Pub. L. 93-406, title II, § 2002(g)(1), 88 Stat. 968; Oct. 4, 1976, Pub. L. 94-455, title V, § 503(a), 90 Stat. 1559.) REFERENCES IN TEXT The Social Security Act, referred to in subsec. (b)(3), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social Security Act is classified general- ly to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete clas- sification of this Act to the Code, see section 1305 of Title 42 and Tables volume. The Railroad Retirement Act of 1935 or 1937, re- ferred to in subsec. (b)(3)(B), is act Aug. 29, 1935, ch. 812, 49 Stat. 867, as amended generally by acts June 24, 1937, ch. 382, part I, 50 Stat. 307: Oct. 16, 1974, Pub. L. 93-444, title I, 88 Stat. 1305, now known as the Railroad Retirement Act of 1974, which is classified generally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45, Railroads. For complete classification of this Act to the Code, see Tables volume. CODIFICATION Section 1901(c)(1) of Pub. L. 94-455 purported to amend subsec. (f) of section 37 of this title by striking out "a Territory". The amendment could not be ex- ecuted in view of the prior general amendment of sec- tion 37 of this title by section 503(a) of Pub. L. 94-455. AMENDMENTS 1976-Pub. L. 94-455, among other changes, substi- tuted "Credits for the elderly" for "Retirement income" in the section catchline and provisions per- mitting taxpayers who have all types of income to be eligible for the tax credit for provisions permitting taxpayers who have only retirement income to be eli- gible for the tax credit, eliminated provisions requir- ing taxpayers to earn $600 for the previous ten years for tax credit eligibility and provisions relating vari- ations in treatment of married couples, and added pro- visions broadening coverage of the tax credit relief to low and middle Income taxpayers. 1974-Subsec. (c)(1). Pub. L. 93-406 inserted refer- ence in subpar. (E) to retirement bonds described in section 409 and added subpar (F). 1964-Subsec. (a). Pub. L. 88-272, §§ 113(a), 201(d)(3), substituted "an amount equal to 17 percent, in the case of a taxable year beginning in 1964, or 15 percent, in the case of a taxable year beginning after December 31, 1964, of the amount received by such individual as retirement income (as defined in subsection (c) and as limited by subsection (d));" for "an amount equal to the amount received by such individual as retirement income (as defined In subsection (c) and as limited by subsection (d)), multiplied by the rate provided in sec- tion 1 for the first $2,000 of taxable Income;", and eliminated "section 34 (relating to credit for dividends received by individuals)", preceding "and section 35". Subsec. (I). Pub. L. 88-272, § 202(a), added subsec. (I). Former subsec. (I) redesignated (M1). Subsec. (J). Pub. L. 88-272, § 202(a), redesignated former subsec. (I) as (j). 1962-Subsec. (c)(l). Pub. L. 87-792 inserted provi- sions in subpar. (A) requiring inclusion, in the case of an individual who is, or has been, an employee within the meaning of section 401(c)(1), distributions by a trust described in section 401(a) which Is exempt from tax under section 501(a), and added subpar. (E). Subsec. (d). Pub. L. 87-876 increased the limit on re- tirement income from $1,200 to $1,524, lowered the age requirement in par. (2)(A) from 65 to 62, and sub- stituted provisions in par. (2)(B) which reduce the amount of retirement income ior individuals who reach age 62, by one-half the amount of earned income in excess of $1,200 but not in excess of $1,700, and by the amount received over $1,700, for provisions which reduced such income by the amount earned over $1,200 by persons having reached age 65, and which defined income as in subsec. (g) of this section. Page 42