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TITLE 26-INTERNAL REVENUE CODE income of such husband and wife shall equal the amount which would be excludable if such amounts did not constitute such commu- nity income. (4) Requirement as to time of receipt No amount received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed may be excluded under subsection (a). (5) Certain amounts not excludable No amount- (A) received as a pension or annuity, or (B) included in gross income by reason of section 402(b) (relating to taxability of beneficiary of non-exempt trust), section 403(c) (relating to taxability of beneficiary under a non-qualified annuity), or section 403(d) (relating to taxability of beneficiary under certain forfeitable contracts pur- chased by exempt organizations), may be excluded under subsection (a). (6) Test of bona fide residence A statement by an individual who has earned income from sources within a foreign country to the authorities of that country that he is not a resident of that country, if he is held not subject as a resident of that coun- try to the income tax of that country by its authorities with respect to such earnings, shall be conclusive evidence with respect to such earnings that he is not a bona fide resi- dent of that country for purposes of subsec- tion (a)(1). [(7) Repealed. Pub. L. 94-455, title XIX, § 1901(a)(115), Oct. 4, 1976, 90 Stat. 1784] (8) Requirement as to place of receipt No amount received by an individual during the taxable year which constitutes earned income (entitled to the exclusion under sub- section (a)) attributable to services performed in a foreign country or countries shall be ex- cluded under subsection (a) if such amount is received by such individual outside of the for- eign country or countries where such services were performed and if one of the purposes is the avoidance of any tax imposed by such for- eign country or countries on such amount. (d) Amount excluded under subsection (a) included in computation of tax (1) Computation of tax If for any taxable year an individual has earned income which is excluded from gross income under subsection (a), the tax imposed by section 1 or section 1201 shall be the excess of- (A) the tax imposed by section 1 or sec- tion 1201 (whichever is applicable) on the amount of net taxable income, over (B) the tax imposed by section 1 or sec- tion 1201 (whichever is applicable) on the amount of net excluded earned income. (2) Definitions For purposes of this subsection- (A) the term "net taxable income" means an amount equal to the sum of the amount of taxable income for the taxable year plus the amount of net excluded earned income of such individual for such taxable year; and (B) the term "net excluded earned income" means the excess of the amount of earned income excluded under subsection (a) for the taxable year over the amount of the deductions disallowed with respect to such excluded earned income for such tax- able year under subsection (a). (e) Section not to apply (1) In general An individual entitled to the benefits of this section for a taxable year may elect, in such manner and at such time as shall be pre- scribed by the Secretary, not to have the pro- visions of this section apply. (2) Effect of election An election under paragraph (1) shall apply to the taxable year for which made and to all subsequent taxable years. Such election may not be revoked except with the consent of the Secretary. (f) Cross reference (1) For administrative and penal provisions relating to the exclusion provided for in this section, see sections 6001, 6011, 6012(c), and the other provisions of subtitle F. (2) For elections as to treatment of income subject to foreign community property laws, see section 981. (Aug. 16, 1954, ch. 736, 68A Stat. 289; Sept. 2, 1958, Pub. L. 85-866, title I, §72(b), 72 Stat. 1660; Oct. 16, 1962, Pub. L. 87-834, § 11(a), 76 Stat. 1003; Feb. 26, 1964, Pub. L. 88-272, title II, § 237(a), 78 Stat. 128; Nov. 13, 1966, Pub. L. 89- 809; title I, § 105(e)(3), 80 Stat. 1567; Oct. 4, 1976, Pub. L. 94-455, title X, § 1011(a), (b), title XIX, §§ 1901(a)(115), 1906(b)(13)(A), 90 Stat. 1610, 1784, 1834.) REmEN cEs iN TExT Section 981 of this title, referred to in subsec. (f)(2), was repealed by section 1012(b)(2) of Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 614. AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, §§ 1011(b)(l), 1906(b)(13)(A), struck out "or his delegate" following "Secretary" in par. (1), and in provisions following par, (2), added "or as a credit against the tax imposed by this chapter any credit for the amount of taxes paid or accrued to a foreign country or possession of the United States, to the extent that such deductions or credit is" following "personal exemptions)". Subsec. (b). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(1). Pub. L. 94-455, § 1011(a), reduced the amount excludable from individual's gross income from $20,000 to $15,000 and $20,000 for employees of charitable organizations, added special rule to be ap- plied to income from charitable sources and other sources combined, added definition of "qualified chari- table services" and, struck out provisions relating to $25,000 exclusion for individual who has been a bona fide resident in a foreign country for an uninterrupted period of 3 years. Subsec. (c)(7). Pub. L. 94-455, § 1901(a)(115), struck out par. (7) relating to certain noncash remuneration from sources outside the United States. Subsec. (c)(8). Pub. L. 94-455, § 1011(b)(2), added par. (8). Subsec. (d). Pub. L. 94-455, § 1011(b)(3), added subsec. (d). Former subsec. (d) redesignated subsec. (fM. Subsec. e). Pub. L. 94-455, § 1011(b)(3), added subsec. (e). Subsec. (f). Pub. L. 94-455, § 1011(b)(3), redesignated former subsec. (d) as (f). Page 591 § 911