Sec. 11041. Suspension of deduction for personal exemptions
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Subsection
(d)of section 151 is amended— by striking In the case of in paragraph
(4)and inserting Except as provided in paragraph (5), in the case of , and by adding at the end the following new paragraph: In the case of a taxable year beginning after December 31, 2017, and before January 1, 2026— The term exemption amount means zero. For purposes of any other provision of this title, the reduction of the exemption amount to zero under subparagraph
(A)shall not be taken into account in determining whether a deduction is allowed or allowable, or whether a taxpayer is entitled to a deduction, under this section. . Section 642(b)(2)(C) is amended by adding at the end the following new clause: In the case of any taxable year in which the exemption amount under section 151(d) is zero, clause
(i)shall be applied by substituting $4,150 for the exemption amount under section 151(d) . In the case of any calendar year beginning after 2018, the $4,150 amount in subparagraph
(A)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 for 2016 in subparagraph (A)(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. . Section 3402(a) is amended by adding at the end the following new paragraph: In the case of any taxable year in which the exemption amount under section 151(d) is zero, paragraph
(2)shall be applied by substituting $4,150 for the amount of one personal exemption provided in section 151(b) . In the case of any calendar year beginning after 2018, the $4,150 amount in subparagraph
(A)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 for 2016 in subparagraph (A)(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. . Section 6334(d) is amended by adding at the end the following new paragraph: In the case of any taxable year in which the exemption amount under section 151(d) is zero, paragraph
(2)shall not apply and for purposes of paragraph
(1)the term exempt amount means an amount equal to— the sum of the amount determined under subparagraph
(B)and the standard deduction, divided by 52. For purposes of subparagraph (A), the amount determined under this subparagraph is $4,150 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 2018, the $4,150 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(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 for 2016 in subparagraph (A)(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. 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 6012 is amended by adding at the end the following new subsection: In the case of a taxable year beginning after December 31, 2017, and before January 1, 2026, subsection (a)(1) shall not apply, and every individual who has gross income for the taxable year shall be required to make returns with respect to income taxes under subtitle A, 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)(5) who has income (other than earned income) in excess of the amount in effect under section 63(c)(5)(A). . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.