Sec. 1104. Repeal of deduction for personal exemptions
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Part V of subchapter B of chapter 1 is hereby repealed. Section 152, prior to repeal by subsection (a), is hereby redesignated as section 7705 and moved to the end of chapter 79. Section 7705(c)(3)(A), as redesignated by paragraph (1), is amended by striking as a qualifying child and— and all that follows and inserting is a qualifying child and has not attained the age of 18 as of the close of the calendar year in which the taxable year of the taxpayer begins. . Subsection
(b)of section 642 is amended— by striking paragraph (2)(C), by striking paragraph (3), and by striking in the heading thereof and inserting Deduction for personal exemption . Basic deduction Section 873(b) is amended by striking paragraph (3). Section 3402(a)(2) is amended by striking the amount of one personal exemption provided in section 151(b) and inserting $3,900 . Section 3402(a) is amended by adding at the end the following new paragraph: In the case of any calendar year beginning after 2014, the $3,900 amount in paragraph
(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 such calendar year. 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. . Section 3402(f)(1) is amended— in subparagraph (A), by striking an individual described in section 151(d)(2) and inserting a dependent of any other taxpayer , and in subparagraph (C), by striking with respect to whom, on the basis of facts existing at the beginning of such day, there may reasonably be expected to be allowable an exemption under section 151(c) and inserting who, on the basis of facts existing at the beginning of such day, is reasonably expected to be a dependent of the employee . Paragraph
(1)of section 6012(a) is amended to read as follows: Every individual who has gross income for the taxable year, except that a return shall not be required of— an individual who is not married (determined by applying section 7703) and who has gross income for the taxable year which does not exceed the standard deduction applicable to such individual for such taxable year under section 63, or an individual entitled to make a joint return if— the gross income of such individual, when combined with the gross income of such individual’s spouse, for the taxable year does not exceed the standard deduction which would be applicable to the taxpayer for such taxable year under section 63 if such individual and such individual’s spouse made a joint return, such individual and such individual’s spouse have the same household as their home at the close of the taxable year, such individual’s spouse does not make a separate return, and neither such individual nor such individual’s spouse is an individual described in section 63(c)(4) who has income (other than earned income) in excess of the amount in effect under section 63(c)(4)(A). . Paragraph
(8)of section 6012(a) is amended by striking the sum of the exemption amount plus the basic standard deduction under section 63(c)(2)(D) and inserting the standard deduction in effect under section 63(c)(1)(B) . Section 2(a)(1)(B) is amended by striking a dependent and all that follows through section 151 and inserting a dependent who (within the meaning of section 7705, determined without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer . Section 36B(b)(2)(A) is amended by striking section 152 and inserting section 7705 . Section 36B(b)(3)(B) is amended by striking unless a deduction is allowed under section 151 for the taxable year with respect to a dependent in the flush matter at the end and inserting unless the taxpayer has a dependent for the taxable year . Section 36B(c)(1)(D) is amended by striking with respect to whom a deduction under section 151 is allowable to another taxpayer and inserting who is a dependent of another taxpayer . Section 36B(d)(1) is amended by striking equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year and inserting the sum of 1 (2 in the case of a joint return) plus the number of the taxpayer’s dependents for the taxable year . Section 36B(e)(1) is amended by striking 1 or more individuals for whom a taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year (including the taxpayer or his spouse) and inserting 1 or more of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer . Section 42(i)(3)(D)(ii)(I) is amended— by striking section 152 and inserting section 7705 , and by striking the period at the end and inserting a comma. Section 63(b) is amended by striking minus— and all that follows and inserting minus the standard deduction. . Section 63(d) is amended by striking other than— and all that follows and inserting other than the deductions allowable in arriving at adjusted gross income. . Section 72(t)(2)(D)(i)(III) is amended by striking section 152 and inserting section 7705 . Section 72(t)(7)(A)(iii) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . Section 105(b) is amended— by striking as defined in section 152 and inserting as defined in section 7705 , by striking section 152(f)(1) and inserting section 7705(f)(1) and by striking section 152(e) and inserting section 7705(e) . Section 105(c)(1) is amended by striking section 152 and inserting section 7705 . Section 125(e)(1)(D) is amended by striking section 152 and inserting section 7705 . Section 129(c) is amended— by striking with respect to whom, for such taxable year, a deduction is allowable under section 151(c) (relating to personal exemptions for dependents) to in paragraph
(1)and inserting who is a dependent of , and by striking section 152(f)(1) in paragraph
(2)and inserting section 7705(f)(1) . Section 132(h)(2)(B) is amended— by striking section 152(f)(1) and inserting section 7705(f)(1) , and by striking section 152(e) and inserting section 7705(e) . Section 139D(c)(5) is amended by striking section 152 and inserting section 7705 . Section 162(l)(1)(D) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . Section 170(g)(1) is amended by striking section 152 and inserting section 7705 . Section 170(g)(3) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . Section 172(d) is amended by striking paragraph (3). Section 220(b)(6) is amended by striking with respect to whom a deduction under section 151 is allowable to and inserting who is a dependent of . Section 220(d)(2)(A) is amended by striking section 152 and inserting section 7705 . Section 223(b)(6) is amended by striking with respect to whom a deduction under section 151 is allowable to and inserting who is a dependent of . Section 223(d)(2)(A) is amended by striking section 152 and inserting section 7705 . Section 401(h) is amended by striking section 152(f)(1) in the last sentence and inserting section 7705(f)(1) . Section 402(l)(4)(D) is amended by striking section 152 and inserting section 7705 . Section 409A(a)(2)(B)(ii)(I) is amended by striking section 152(a) and inserting section 7705(a) . Section 501(c)(9) is amended by striking section 152(f)(1) and inserting section 7705(f)(1) . Section 529(e)(2)(B) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . Section 703(a)(2) is amended by striking subparagraph
(A)and by redesignating subparagraphs
(B)through
(F)as subparagraphs
(A)through (E), respectively. Section 874 is amended by striking subsection
(b)and by redesignating subsection
(c)as subsection (b). Section 891 is amended by striking under section 151 and . Section 904(b) is amended by striking paragraph (1). Section 931(b)(1) is amended by striking (other than the deduction under section 151, relating to personal exemptions) . Section 933 is amended— by striking (other than the deduction under section 151, relating to personal exemptions) in paragraph (1), and by striking (other than the deduction for personal exemptions under section 151) in paragraph (2). Section 1212(b)(2)(B)(ii) is amended to read as follows: in the case of an estate or trust, the deduction allowed for such year under section 642(b). . Section 1361(c)(1)(C) is amended by striking section 152(f)(1)(C) and inserting section 7705(f)(1)(C) . Section 1402(a) is amended by striking paragraph (7). Section 2032A(c)(7)(D) is amended by striking section 152(f)(2) and inserting section 7705(f)(2) . Section 3402(m)(1) is amended by striking other than the deductions referred to in section 151 and . Section 3402(r)(2) is amended by striking the sum of— and all that follows and inserting the standard deduction in effect under section 63(c)(1)(B). . Section 5000A(b)(3)(A) is amended by striking section 152 and inserting section 7705 . Section 5000A(c)(4)(A) is amended by striking the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year and inserting the sum of 1 (2 in the case of a joint return) plus the number of the taxpayer’s dependents for the taxable year . Section 6013(b)(3)(A) is amended— by striking had less than the exemption amount of gross income in clause
(ii)and inserting had no gross income , by striking had gross income of the exemption amount or more in clause
(iii)and inserting had any gross income , and by striking the flush language following clause (iii). Section 6103(l)(21)(A)(iii) is amended to read as follows: the number of the taxpayer’s dependents, . Section 6213(g)(2) is amended by striking subparagraph (H). Section 6334(d)(2) is amended to read as follows: For purposes of paragraph (1), the term exempt amount means an amount equal to— the sum of the standard deduction and the personal exemption amount, divided by 52. For purposes of subparagraph (A), the personal exemption amount is $3,900 multiplied by the number of the taxpayer’s dependents for the taxable year in which the levy occurs. In the case of any taxable year beginning after 2014, the $3,900 amount in subparagraph
(B)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. 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. Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph
(A)shall be applied as if the taxpayer were a married individual filing a separate return with no dependents. . Section 7702B(f)(2)(C)(iii) is amended by striking section 152(d)(2) and inserting section 7705(d)(2) . Section 7703(a) is amended by striking part V of subchapter B of chapter 1 and . Section 7703(b)(1) is amended by striking section 152(f)(1) and all that follows and inserting section 7705(f)(1), . Section 7705(a), as redesignated by this section, is amended by striking this subtitle and inserting subtitle A . Section 7705(d)(1)(B), as redesignated by this section, is amended by striking the exemption amount (as defined in section 151(d)) and inserting $3,900 . Section 7705(d), as redesignated by this section, is amended by adding at the end the following new paragraph: In the case of any calendar year beginning after 2014, the $3,900 amount in paragraph (1)(B) 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 such calendar year. 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. . The table of sections for chapter 79 is amended by adding at the end the following new item: Sec. 7705. Dependent defined. . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.