PUBLIC LAWS-CH. 619-OCT. 21, 1942 Ante, p. 816. 53 Stat. 10 . 26 U.s..C. 22 (b) (2). Ante, p. 808; post, p. 866. Ante, p. 816 . 55 Stat. 697. 26 U. S. C., Supp. I, i25 (b) (2) (A). Post, p. 828 . Ante, pp. 816, 817. Ante, p. 803. 53 Stat. 469. 26U.S.C.§3797 (a). Ante, pp . 816, 817; Supra. Ante, p. 806. for the support of minor children of such husband. In case such income is less than the amount specified in the decree or instrument, for the purpose of applying the preceding sentence, such income, to the extent of such sum payable for such support, shall be considered a payment for such support. "(b) WIFE CONSIDERED A BENEFICIARY. - For the purposes of com- puting the net income of the estate or trust and the net income of the wife described in section 22 (k) or subsection (a) of this section, such wife shall be considered as the beneficiary specified in this supplement. A periodic payment under section 22 (k) to any part of which the provisions of this supplement are applicable shall be included in the gross income of the beneficiary in the taxable year in which under this supplement such part is required to be included." (d) ANNUITIES, ETc.- Section 22 (b) (2) (relating to payments under annuity, etc., contracts) is amended by striking out the head- ing and inserting in lieu thereof "(2) ANNUITIES, ETC. - "(A) In General.- " and by inserting before the semicolon at the end of such subpara- graph (A) a period and the following: "This subparagraph and paragraph (1) shall not apply with respect to so much of a payment under a life insurance, endowment, or annuity contract, or any interest therein, as, under section 22 (k), is includible in gross income". (e) CREDrr FOR DEPENDENTS.- (1) CREDIT FOr NORMAL TAX AND sURTAX. -Section 25 (b) (2) (A) (relating to credit for dependents) is amended by inserting at the end thereof the following: 'A payment to a wife which is includible under section 22 (k) or section 171 in the gross income of such wife shall not be considered a payment by her husband for the support of any dependent." (2) CREDIT FOR OPTIONAL TAX UNDER SUPPLEMENT T.-For credit for dependents in case of optional tax, see amendment made by section 104 of this Act. (f) DEFINITIoNS. - Section 3797 (a) (relating to definitions) is amended by inserting at the end thereof the following new para- graph: "(17) HUSBAND AND wIFE.- As used in sections 22 (k), 23 (u), 25 (b) (2) (A), and 171, and the last sentence of section 401 (a) (2), if the husband and wife therein referred to are divorced, wherever appropriate to the meaning of such sections, the term 'wife' shall be read 'former wife' and the term 'husband' shall be read 'former husband'; and, if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wher- ever appropriate to the meaning of such sections, the term 'husband' shall be read 'wife' and the term 'wife' shall be read 'husband'." (g) TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE.-The amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1941; except that if the first taxable year beginning after December 31, 1941, of the husband does not begin on the same day as the first taxable year beginning after December 31, 1941, of the wife, such amendments shall first become applicable in the case of the husband on the first day of the wife's first taxable year beginning after December 31, 1941, regardless of the taxable year of the husband in which such day falls. [56 STAT.
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