Sec. 1101. Standard deduction
1,177 words·~5 min read·
/bill/113/hr/1/ih/section-1101A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(c)of section 63 is amended to read as follows: For purposes of this subtitle— Except as otherwise provided in this subsection, the term standard deduction means— $22,000, in the case of a joint return, and one-half of the amount in effect under subparagraph
(A)for the taxable year, in any other case. The amount of the standard deduction determined under this subsection (without regard to this paragraph and after the application of paragraph (4)) shall be reduced (but not below zero) by an amount equal to 20 percent of the excess (if any) of— the taxpayer’s modified adjusted gross income (as defined in section 2(b)) for the taxable year, over the joint return standard deduction phaseout threshold for the taxable year, in the case of a taxpayer described in paragraph (1)(A), and the non-joint return standard deduction phaseout threshold for the taxable year, in any other case. The term joint return standard deduction phaseout threshold means, with respect to any taxable year— the dollar amount in effect under section 1(e)(3)(A) for such taxable year, plus the product of— the dollar amount in effect under section 1(b)(1)(A) for such taxable year, multiplied by 3. The term non-joint return standard deduction phaseout threshold means, with respect to any taxable year— the dollar amount in effect under section 1(e)(3)(B) for such taxable year, plus the product of— the dollar amount in effect under section 1(b)(1)(B) for such taxable year, multiplied by 3. In the case of an individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the standard deduction applicable to such individual for such individual’s taxable year shall not exceed the greater of— $500, or the sum of $250 and such individual’s earned income (as defined in section 24(d)(2)). In the case of— a married individual filing a separate return where such individual’s spouse elects to itemize deductions, a nonresident alien individual, an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or an estate or trust, common trust fund, or partnership, the standard deduction shall be zero. In the case of any taxable year beginning after 2014, each of the dollar amounts in paragraphs (1)(A) and
(4)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined— in the case of the dollar amount in paragraph (1)(A), under section 1(c)(2)(A) for the calendar year in which the taxable year begins, in the case of the dollar amount in paragraph (4)(A), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 1987 for calendar year 2012 in clause
(ii)thereof, and in the case of the dollar amount in paragraph (4)(B), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 1997 for calendar year 2012 in clause
(ii)thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: In the case of an unmarried individual with at least one qualifying child (within the meaning of section 7705), there shall be allowed as a deduction an amount equal to $5,500. The amount of the deduction determined under subsection
(a)(without regard to this subsection) shall be reduced (but not below zero) by an amount equal to the excess (if any) of— the taxpayer’s adjusted gross income (determined without regard to this section) for the taxable year, over $30,000. For purposes of this section, the term unmarried individual means any individual who— is not married as of the close of the taxable year (as determined by applying section 7703), is not a surviving spouse (as defined in section 2(a)) for the taxable year, and is not a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins. In the case of any taxable year beginning after 2014, the dollar amount in subsection
(a)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins. In the case of any taxable year beginning after 2015, the dollar amount in subsection (b)(2) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting calendar year 2014 for calendar year 2012 in clause
(ii)thereof. If any increase determined under paragraph
(1)or
(2)is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . Section 62(a) is amended by adding at the end the following new paragraph: The deduction allowed by section 224. . Subsection
(f)of section 63 is amended to read as follows: In the case of an individual whose modified adjusted gross income (as defined in section 2(b)) exceeds the amount in effect under subsection (c)(2)(B) with respect to the taxpayer for the taxable year, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of— 20 percent of the excess described in subsection (c)(2) with respect to such taxpayer for such taxable year, or the amount of the taxpayer’s standard deduction for such taxable year (determined without regard to subsection (c)(2) and without regard to any election to itemize deductions). This subsection shall be applied after the application of any other limitation on the allowance of any itemized deduction. This subsection shall not apply to any estate or trust. . Sections 86(b)(2)(A) and 137(b)(3)(A) are each amended by inserting 224, before 911, . Section 199(d)(2)(B) is amended by inserting section 224 and before this section . Section 469(i)(3)(F)(iii) is amended by inserting and 224 after 219, . Section 1398(c), as amended by section 1003(c), is amended— by striking in the heading thereof, Basic by striking in the heading of paragraph
(2)and inserting Basic standard , and Standard by striking basic in paragraph (2). Section 3402(m)(3) is amended by striking (including the additional standard deduction under section 63(c)(3) for the aged and blind) . Section 6014(b)(4) is amended by striking section 63(c)(5) and inserting section 63(c)(4) . The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as an item relating to section 225 and by inserting after the item relating to section 223 the following new item: Sec. 224. Deduction for unmarried individuals with at least one qualifying child. . The amendment made by this section shall apply to taxable years beginning after December 31, 2014.