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TITLE 26-INTERNAL REVENUE CODE (b) Average base period income For purposes of this part- (1) In general The term "average base period income" means one-fourth of the sum of the base period incomes for the base period. (2) Base period income The base period income for any taxable year is the taxable income for such year- (A) increased by an amount equal to the excess of- (I) the amount excluded from gross income under section 911 (relating to earned income from sources without the United States) and subpart D of part III of subchapter N (see. 931, and following, relating to income from sources within possessions of the United States), over (ii) the deductions which would have been properly allocable to or chargeable against such amount but for the exclusion of such amount from gross income; and (B) decreased by the amr'unts included in the income of a beneficiar' of a trust under section 667(a). (c) Other related definitions For purposes of this part- (1) Computation year The term "computation year" means the taxable year for which the taxpayer chooses the benefits of this part. (2) Base period The term "base period" means the 4 taxable years immediately preceding the computation year. (3) Base period year The term "base period year" means any of the 4 taxable years immediately preceding the computation year. (4) Joint return The term "Joint return" means the return of a husband and wife made under section 6013. (Added Pub. L. 88-272, title II, § 232(a), Feb. 26, 1964, 78 Stat. 106, and amended Pub. L. 91-172, title III, § 311(b), Dec. 30, 1969, 83 Stat. 586; Pub. L. 94-455, title VII, § 701(f)(1), Oct. 4, 1976, 90 Stat. 1580.) PRIOR PROVISIONS A prior section 1302, act Aug. 16, 1964, ch. 736, 68A Stat. 335. related to income from an invention or artis- tic work. AMENDMENTS 1.976-Subsec. (a)(2)(B). Pub. L. 94-455 substituted "section 667(a)" for "section 668(a)". Subsec. (b)(2)(B). Pub. L. 94-455 substituted "section 667(a)" for "section 668(a)". 1969-Subsec. (a). Pub. L. 91-172 substituted in par. (1) "amount by which taxable income for the compu- tation year (reduced as provided in paragraph (2)) ex- ceeds 120 percent of average base period income" for "amount (if any) by which adjusted taxable income exceeds 133 percent of average base period income" and substituted in par. (2) provisions respecting reduc- tions for prior provisions for adjustment in certain cases for capital gains. Subsec. (b). Pub. L. 91-172, in redesignating former subsec. (c) as (b), reenacted par. (1) and amended par. (2), eliminating "first increased and then decreased (but not below zero) in the following order" following "such year" in the introductory text, eliminating "Taxable income shall be" preceding "increased" in subpar. (A), substituting subpar. (B) reading "de- creased by the amounts included in the income of a beneficiary of a trust under section 668(a)" for "Tax- able income shall be decreased by the capital gain net income", and eliminating subpar. (C) reading "If the decrease provided by paragraph (2) of subsection (b) applies to the computation year, the taxable income shall be decreased under the rules of such paragraph (2) (other than the limitation contained in subpara- graph (C) thereof)." Former subsec. (b) defined in "ad- justed taxable income" as the taxable income de- creased by capital gain net income for the computa- tion year in former par. (1); income attributable to gifts, bequests, etc., in former par. (2), subpar. (A) pre- scribing the general rule, subpar. (B) amount of net income, subpar. (C) limitation provision, and subpar. (D) net income provision; wagering income in former par. (3) and certain amounts received by owner-em- ployees in former par. (4). Subsec. (c). Pub. L. 91-172 redesignated former subsec. (e) as (c). Former subsec. (c) was redesignated (b). Subsec. (d). Pub. L. 91-172, in the general amend- ment of this section, eliminated definition in former par. (1) of "capital gain net income" and in former par. (2) of "average base period capital gain net income." Subsec. (e). Pub. L. 91-172 redesignated former subsec. (e) as (c). EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable to distribu- tions made in taxable years beginning after Dec. 31, 1975, see section 701(h) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section G67 of this title. EFFECTxVE DATE OF 1969 AMENDMENT Amendment of section by Pub. L. 91-172 applicable with respect to computation years (within the mean- ing of subsec. (c)(1) of this section) beginning after Dec. 31 1969, and to base period years (within the meaning of subsec. (c)(3) of this section) applicable to such computation years, see section 311(e) of Pub. L. 91-172, set out as an Effective Date of 1969 Amend- ment note under section 1301 of this title. EFFECTIVE DATE Section applicable with respect to taxable years be- ginning after Dec. 31, 1963, see section 232(g) of Pub. L. 88-272, set out as an Effective Date note under sec- tion 1301 of this title. SECTION RERIUED TO IN OTHER SECTIONS This section is referred to in section 6511 of this title. § 1303. Eligible individuals (a) General rule Except as otherwise provided in this section, for purposes of this part the term "eligible indi- vidual" means any individual who is a citizen or resident of the United States throughout the computation year. (b) Nonresident alien individuals For purposes of this part, an individual shall not be an eligible individual for the computa- tion year if, at any time during such year or the base period, such individual was a nonresident alien. (c) Individuals receiving support from others (1) In general For purposes of this part, an individual shall not be an eligible individual for the com- putation year if, for any base period year, Page 719 § 1303