100 STAT. 2914
PUBLIC LAW 99-514—OCT. 22, 1986 CHAPTER 8~EFFECTIVE DATE
SEC. 1881. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, any amendment made by this subtitle shall take effect as if included in the provision of the Tax Reform Act of 1984 to which such amendment relates.
Subtitle B—Related to Other Programs Affected by the Deficit Reduction Act of 1984 CHAPTER 1—AMENDMENTS RELATED TO SOCIAL SECURITY ACT PROGRAMS SEC. 1882. AMENDMENTS RELATED TO COVERAGE OF CHURCH EMPLOYEES (SECTION 2603 OF THE DEFICIT REDUCTION ACT). (a) CLARIFICATION OF EXCEPTION FOR MEMBERS OF CERTAIN R E U -
Gious FAITHS.—Subsection (g) of section 1402 of the Internal Revenue Code of 1954 (relating to members of certain religious faiths) is amended by adding at the end thereof the following new paragraph: "(5) SUBSECTION NOT TO APPLY TO CERTAIN CHURCH EMPLOY-
EES.—This subsection shall not apply with respect to services which are described in subparagraph (B) of section 31210bX8) (and are not described in subparagraph (A) of such section)." (b) TREATMENT OF INCOME OF CERTAIN CHURCH, ETC., EMPLOYEES.— (1) AMENDMENTS OF INTERNAL REVENUE CODE OF 1954.—
(A) IN GENERAL.—Section 1402 of such Code (relating to definitions for purposes of the tax on self-employment income) is amended by adding at the end thereof the following new subsection: "(j) SPECIAL RULES FOR CERTAIN CHURCH EMPLOYEE INCOME.— "(1) COMPUTATION OF NET EARNINGS.—In applying subsection
(a)"(A) church employee income shall not be reduced by any deduction; "(B) church employee income and deductions attributable to such income shall not be taken into account in determining the amount of other net earnings from self-employment. "(2) COMPUTATION OF SELF-EMPLOYMENT INCOME.— "(A) SEPARATE APPLICATION OF SUBSECTION (b)(2).—Para-
graph (2) of subsection (b) shall be applied separately— "(i) to church employee income, and "(ii) to other net earnings from self-employment. "(B) $100 FLOOR.—In applying paragraph (2) of subsection (b) to church employee income, '$100' shall be substituted for '$400'. "(3) COORDINATION WITH SUBSECTION (axi 2).—Paragraph (1)
shall not apply to any amount allowable as a deduction under subsection (a)(12), and paragraph (1) shall be applied before determining the amount so allowable. "(4) CHURCH EMPLOYEE INCOME DEFINED.—For purposes of this section, the term 'church employee income' means gross income
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