PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 81 " (A) IN GENERAL.—For purposes of this section, the amount of social security benefits received during any tax- able year shall be reduced by any repayment made by the taxpayer during the taxable year of a social security benefit previously received by the taxpayer (whether or not such benefit was received during the taxable year). "(B) DENIAL OF DEDUCTION. —If (but for this subpara- graph) any portion of the repayments referred to in subpar- agraph (A) would have been allowable as a deduction for the taxable year under section 165, such portion shall be allowable as a deduction only to the extent it exceeds the social security benefits received by the taxpayer during the taxable year (and not repaid during such taxable year). "(3) WORKMEN'S COMPENSATION BENEFITS SUBSTITUTED FOR SOCIAL SECURFTY BENEFITS.— For purposos of this section, if, by reason of section 224 of the Social Security Act (or by reason of 42 USC 424a. section 3(a)(1) of the Railroad Retirement Act of 1974), any 45 USC 23ib. social security benefit is reduced by reason of the receipt of a benefit under a workmen's compensation act, the term 'social security benefit' includes that portion of such benefit received under the workmen's compensation act which equals such re- duction. "(4) TIER i RAILROAD RETIREMENT BENEFIT.— For purposes of paragraph (1), the term 'tier 1 railroad retirement benefit' means a monthly benefit under section 3(a), 4(a), or 4(f) of the Railroad Retirement Act of 1974. 45 USC 23ib, "(e) LIMITATION ON AMOUNT INCLUDED WHERE TAXPAYER RECEIVES ^^^'^ LUMP-SUM PAYMENT.— "(1) LIMITATION.— If— "(A) any portion of a lump-sum payment of social security benefits received during the taxable year is attributable to prior taxable years, and "(B) the taxpayer makes an election under this subsection for the taxable year, then the amount included in gross income under this section for the taxable year by reason of the receipt of such portion shall not exceed the sum of the increases in gross income under this chapter for prior taxable years which would result solely from taking into account such portion in the taxable years to which it is attributable. "(2) SPECIAL RULES.— "(A) YEAR TO WHICH BENEFIT ATTRIBUTABLE.—For pur- poses of this subsection, a social security benefit is attribut- able to a taxable year if the generally applicable payment date for such benefit occurred during such taxable year. "(B) ELECTION. — An election under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. Such election, once made, may be revoked only with the consent of the Secretary. "(f) TREATMENT AS PENSION OR ANNUITY FOR CERTAIN PURPOSES. — For purposes of— "(1) section 43(c)(2) (defining earned income), "(2) section 219(f)(1) (defining compensation), "(3) section 221(b)(2) (defining earned income), and "(4) section 911(b)(1) (defining foreign earned income), any social security benefit shall be treated as an amount received as a pension or annuity."
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