Sec. 1002. Enhancement of standard deduction
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Section 63(c) is amended to read as follows: For purposes of this subtitle— Except as otherwise provided in this subsection, the term standard deduction means— $24,400, in the case of a joint return (or a surviving spouse (as defined in section 2(a)), three-quarters of the amount in effect under subparagraph
(A)for the taxable year, in the case of the head of a household (as defined in section 2(b)), and one-half of the amount in effect under subparagraph
(A)for the taxable year, in any other case. 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 (within the means of section 32). In the case of— a married individual filing a separate return where either spouse itemizes 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. 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 2019, the dollar amount in paragraph (1)(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, determined by substituting calendar year 2018 for calendar year 2016 in clause
(ii)thereof. In the case of any taxable year beginning after 2017, each of the dollar amounts in paragraph
(2)shall be increased by an amount equal to— such dollar amount, multiplied by in the case of the dollar amount in paragraph (2)(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 2016 in clause
(ii)thereof, and in the case of the dollar amount in paragraph (2)(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 2016 in clause
(ii)thereof. If any increase determined under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . Section 63(b) is amended by striking , minus— and all that follows and inserting minus the standard deduction . Section 63 is amended by striking subsections
(f)and (g). Section 1398(c) is amended— by striking in the heading thereof, Basic by striking in the heading of paragraph
(3)and inserting Basic standard , and Standard by striking basic in paragraph (3). 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)(2) . The amendment made by this section shall apply to taxable years beginning after December 31, 2017.