tion, be deemed to be the lower limit for the taxable
year.
‘‘(2) In the case of a member of a partnership car-
rying on any trade or business—
‘‘(A) if the member’s distributive share of the
gross income of the partnership derived from such
trade or business (after such gross income has been
reduced by the sum of all payments to which section
707(c) of the Internal Revenue Code of 1986 ap-
plies) is not more than the upper limit for the tax-
able year and the member’s distributive share
(whether or not distributed) of income described in
section 702(a)(8) of such Code derived from such
trade or business (computed under this subsection
without regard to this sentence) is less than 662⁄3
percent of the member’s distributive share of such
gross income (after such gross income has been so
reduced), the member’s distributive share of income
described in section 702(a)(8) derived from such
trade or business may, at the member’s option, be
deemed to be an amount equal to 662⁄3 percent of
the member’s distributive share of such gross income
(after such gross income has been so reduced), or
‘‘(B) if the member’s distributive share of the
gross income of the partnership derived from such
trade or business (after such gross income has been
reduced by the sum of all payments to which section
707(c) of such Code applies) is more than the upper
limit for the taxable year and the member’s distribu-
tive share (whether or not distributed) of income de-
scribed in section 702(a)(8) of such Code derived
from such trade or business (computed under this
subsection without regard to this sentence) is less
than the lower limit for the taxable year, the mem-
ber’s distributive share of income described in sec-
tion 702(a)(8) of such Code derived from such trade
or business may, at the member’s option, be deemed
to be the lower limit for the taxable year.
‘‘(3) For purposes of this subsection—
‘‘(A) The lower limit for any taxable year is the
sum of the amounts required under section 213(d)
for a quarter of coverage in effect with respect to
each calendar quarter ending with or within such
taxable year.
‘‘(B) The upper limit for any taxable year is the
amount equal to 150 percent of the lower limit for
such taxable year.
‘‘(4) For purposes of this subsection, the term ‘gross
income’ means—
‘‘(A) in the case of any trade or business in
which the income is computed under a cash receipts
and disbursements method, the gross receipts from
such trade or business reduced by the cost or other
basis of property which was purchased and sold in
carrying on such trade or business, adjusted (after
such reduction) in accordance with the provisions of
paragraphs (1) through (6) and paragraph (8) of
subsection (a), and
‘‘(B) in the case of any trade or business in
which the income is computed under an accrual
method, the gross income from such trade or busi-
ness, adjusted in accordance with the provisions of
paragraphs (1) through (6) and paragraph (8) of
subsection (a).
‘‘(5) For purposes of this subsection, if an individual
(including a member of a partnership) derives gross in-
come from more than one such trade or business, such
gross income (including his distributive share of the gross
income of any partnership derived from any such trade
or business) shall be deemed to have been derived from
one trade or business.
‘‘(6) The option under this subsection shall be al-
lowed for any taxable year only if elected in accordance
with the provisions of section 1402(h) of the Internal Rev-
enue Code of 1986.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 211(a) of such Act (42 U.S.C.
411(a)) is amended by striking all that follows
the first sentence following paragraph (15) and
inserting ‘‘For optional method of determining
net earnings from self-employment, see sub-
section (g).’’.
(B) Section 212 of such Act (42 U.S.C.
412) is amended—
(i) in subsection (b), by striking
‘‘For’’ and inserting ‘‘Except as provided
in subsection (c), for’’; and
(ii) by adding at the end the following
new subsection:
‘‘(c) For the purpose of determining average indexed
monthly earnings, average monthly wage, and quarters of
coverage in the case of any individual who elects the option
described in paragraph (1)(B) or (2)(B) of section 211(g)
for any taxable year that does not begin with or during
a particular calendar year and end with or during such
year, the self-employment income of such individual
deemed to be derived during such taxable year shall be
allocated to the two calendar years, portions of which are
included within such taxable year, in the same proportion
to the total of such deemed self-employment income as the
sum of the amounts applicable under section 213(d) for
the calendar quarters ending with or within each such cal-
endar year bears to the lower limit for such taxable year
specified in section 211(g)(3)(A).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 417. CLARIFICATION RESPECTING THE FICA AND
SECA TAX EXEMPTIONS FOR AN INDIVIDUAL
WHOSE EARNINGS ARE SUBJECT TO THE
LAWS 
OF 
A 
TOTALIZATION 
AGREEMENT
PARTNER.
Sections 1401(c), 3101(c), and 3111(c) of the Inter-
nal Revenue Code of 1986 are each amended by striking
‘‘to taxes or contributions for similar purposes under’’ and
inserting ‘‘exclusively to the laws applicable to’’.
Subtitle C—Technical Amendments
SEC. 431. TECHNICAL CORRECTION RELATING TO RESPON-
SIBLE AGENCY HEAD.
Section 1143 of the Social Security Act (42
U.S.C. 1320b–13) is amended—
(1) by striking ‘‘Secretary’’ the first place it ap-
pears and inserting ‘‘Commissioner of Social Secu-
rity’’; and
(2) by striking ‘‘Secretary’’ each subsequent
place it appears and inserting ‘‘Commissioner’’.
SEC. 432. TECHNICAL CORRECTION RELATING TO RETIRE-
MENT BENEFITS OF MINISTERS.
(a) IN GENERAL.—Section 211(a)(7) of the Social
Security Act (42 U.S.C. 411(a)(7)) is amended by insert-
ing ‘‘, but shall not include in any such net earnings from
self-employment the rental value of any parsonage or any
parsonage allowance (whether or not excluded under sec-
tion 107 of the Internal Revenue Code of 1986) provided
after the individual retires, or any other retirement benefit
received by such individual from a church plan (as defined
in section 414(e) of such Code) after the individual re-
tires’’ before the semicolon.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to years beginning before, on, or
after December 31, 1994.
SEC. 433. TECHNICAL CORRECTIONS RELATING TO DOMES-
TIC EMPLOYMENT.
(a) AMENDMENT TO INTERNAL REVENUE CODE.—
Section 3121(a)(7)(B) of the Internal Revenue Code of
(other than paragraph (1)(C) or (1)(E) thereof) or
212(a)(6)(A)’’;
(4) in paragraph (2), by striking ‘‘under any of
the paragraphs of section 241(a) of the Immigration
and Nationality Act (other than under paragraph
(1)(C) or (1)(E) thereof)’’ and inserting ‘‘under any
of the paragraphs of section 237(a) of the Immigra-
tion and Nationality Act (other than paragraph
(1)(C) 
or 
(1)(E) 
thereof) 
or 
under 
section
212(a)(6)(A) of such Act’’;
(5) in paragraph (3)—
(A) by striking ‘‘paragraph (19) of section
241(a)’’ and inserting ‘‘subparagraph (D) of
section 237(a)(4)’’; and
(B) by striking ‘‘paragraph (19)’’ and in-
serting ‘‘subparagraph (D)’’; and
(6) in the heading, by striking ‘‘Deportation’’
and inserting ‘‘Removal’’.
(b) CORRECTION
OF CITATION RESPECTING
THE
TAX DEDUCTION RELATING
TO HEALTH INSURANCE
COSTS
OF
SELF-EMPLOYED
INDIVIDUALS.—Section
211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amend-
ed by striking ‘‘section 162(m)’’ and inserting ‘‘section
162(l)’’.
(c) ELIMINATION OF REFERENCE TO OBSOLETE 20-
DAY AGRICULTURAL WORK TEST.—Section 3102(a) of
the Internal Revenue Code of 1986 is amended by striking
‘‘and the employee has not performed agricultural labor
for the employer on 20 days or more in the calendar year
for cash remuneration computed on a time basis’’.
SEC. 435. TECHNICAL CORRECTION RESPECTING SELF-EM-
PLOYMENT INCOME IN COMMUNITY PROP-
ERTY STATES.
(a) SOCIAL SECURITY ACT AMENDMENT.—Section
211(a)(5)(A) 
of 
the 
Social 
Security 
Act 
(42
U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the
gross income’’ and all that follows and inserting ‘‘the gross
income and deductions attributable to such trade or busi-
ness shall be treated as the gross income and deductions
of the spouse carrying on such trade or business or, if
such trade or business is jointly operated, treated as the
gross income and deductions of each spouse on the basis
of their respective distributive share of the gross income
and deductions;’’.
(b) INTERNAL REVENUE CODE OF 1986 AMEND-
MENT.—Section 1402(a)(5)(A) of the Internal Revenue
Code of 1986 is amended by striking ‘‘all of the gross in-
come’’ and all that follows and inserting ‘‘the gross income
and deductions attributable to such trade or business shall
be treated as the gross income and deductions of the
spouse carrying on such trade or business or, if such trade
or business is jointly operated, treated as the gross income
and deductions of each spouse on the basis of their respec-
tive distributive share of the gross income and deductions;
and’’.
Æ