For purposes of section 38, the employer social security credit determined under this section for the taxable year is an amount equal to the excess employer social security tax paid or incurred by the taxpayer during the taxable year.
For purposes of this section-
The term "excess employer social security tax" means any tax paid by an employer under section 3111 with respect to tips received by an employee during any month, to the extent such tips-
In applying paragraph (1), there shall be taken into account only tips received from customers in connection with the providing, delivering, or serving of food or beverages for consumption if the tipping of employees delivering or serving food or beverages by customers is customary.
No deduction shall be allowed under this chapter for any amount taken into account in determining the credit under this section.
26 U.S.C. § 45B
REFERENCES IN TEXT Sections 3(m) and 6(a)(1) of the Fair Labor Standards Act of 1938, referred to in subsec. (b)(1)(B), are classified to sections 203(m) and 206(a)(1), respectively, of Title 29, Labor.
AMENDMENTS2007-Subsec. (b)(1)(B). Pub. L. 110-28 inserted "as in effect on January 1, 2007, and" before "determined without regard to". 1996-Subsec. (b)(1)(A). Pub. L. 104-188, §1112(a)(1), inserted "(without regard to whether such tips are reported under section 6053)" after "section 3121(q)".Subsec. (b)(2). Pub. L. 104-188, §1112(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "ONLY TIPS RECEIVED AT FOOD AND BEVERAGE ESTABLISHMENTS TAKEN INTO ACCOUNT.-In applying paragraph (1), there shall be taken into account only tips received from customers in connection with the provision of food or beverages for consumption on the premises of an establishment with respect to which the tipping of employees serving food or beverages by customers is customary."
EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 110-28, title VIII, §8213(b), May 25, 2007, 121 Stat. 193, provided that: "The amendment made by this section [amending this section] shall apply to tips received for services performed after December 31, 2006."
EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104-188, title I, §1112(a)(3), Aug. 20, 1996, 110 Stat. 1759, provided that: "The amendments made by this subsection [amending this section and provisions set out as a note under sectionof this title] shall take effect as if included in the amendments made by, and the provisions of, section 13443 of the Revenue Reconciliation Act of 1993 [ Pub. L. 103-66]." Pub. L. 104-188, title I, §1112(b)(2), Aug. 20, 1996, 110 Stat. 1759, provided that: "The amendment made by paragraph (1) [amending this section] shall apply to tips received for services performed after December 31, 1996."
EFFECTIVE DATESection applicable with respect to taxes paid after Dec. 31, 1993, with respect to services performed before, on, or after such date, see section 13443(d) of Pub. L. 103-66 as amended, set out as an Effective Date of 1993 Amendment note under sectionof this title.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- The term "taxpayer" means any person subject to any internal revenue tax.