[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2824 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2824

To exclude from income certain wages of spouses of members of the Armed 
                    Forces serving in combat zones.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2004

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To exclude from income certain wages of spouses of members of the Armed 
                    Forces serving in combat zones.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FOR CERTAIN WAGES OF SPOUSES OF MEMBERS OF ARMED 
              FORCES SERVING IN COMBAT ZONES.

    (a) In General.--Section 112 of the Internal Revenue Code of 1986 
(relating to certain combat zone compensation of members of the Armed 
Forces) is amended by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively, and by inserting after 
subsection (b) the following new subsection:
    ``(c) Spouses.--Gross income does not include qualifying wages 
received by the spouse of a person described in subsection (a) or (b) 
for any month during any part of which such person--
            ``(1) served in a combat zone, or
            ``(2) was hospitalized as a result of wounds, disease, or 
        injury incurred while serving in a combat zone; but this 
        paragraph shall not apply for any month beginning more than 2 
        years after the date of the termination of combatant activities 
        in such zone.''.
    (b) Qualifying Wages.--Subsection (d) of section 112 of the 
Internal Revenue Code of 1986 (relating to definitions), as 
redesignated by subsection (a), is amended by adding at the end the 
following new paragraph:
            ``(6) The term `qualifying wages' means wages (as defined 
        in section 3121(a)) and self-employment income (as defined in 
        section 1402(b)).''.
    (c) Conforming Amendment.--Section 2201(b) of the Internal Revenue 
Code of 1986 is amended by striking ``section 112(c)'' and inserting 
``section 112(d)'' each place it appears.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
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