Sec. 11041. Suspension of deduction for personal exemptions
1,430 words·~7 min read·
/bill/115/hr/1/unknown/section-11041A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 taxable year beginning in a calendar year after 2018, the $4,150 amount in subparagraph
(A)shall be increased in the same manner as provided in section 6334(d)(4)(C). . Section 3402(a)(2) is amended by striking means the amount and all that follows and inserting means the amount by which the wages exceed the taxpayer's withholding allowance, prorated to the payroll period. . Section 3401 is amended by striking subsection (e). Paragraphs
(1)and
(2)of section 3402(f) are amended to read as follows: Under rules determined by the Secretary, an employee receiving wages shall on any day be entitled to a withholding allowance determined based on— whether the employee is an individual for whom a deduction is allowable with respect to another taxpayer under section 151; if the employee is married, whether the employee's spouse is entitled to an allowance, or would be so entitled if such spouse were an employee receiving wages, under subparagraph
(A)or (D), but only if such spouse does not have in effect a withholding allowance certificate claiming such allowance; the number of individuals with respect to whom, on the basis of facts existing at the beginning of such day, there may reasonably be expected to be allowable a credit under section 24(a) for the taxable year under subtitle A in respect of which amounts deducted and withheld under this chapter in the calendar year in which such day falls are allowed as a credit; any additional amounts to which the employee elects to take into account under subsection (m), but only if the employee's spouse does not have in effect a withholding allowance certificate making such an election; the standard deduction allowable to such employee (one-half of such standard deduction in the case of an employee who is married (as determined under section 7703) and whose spouse is an employee receiving wages subject to withholding); and whether the employee has withholding allowance certificates in effect with respect to more than 1 employer. On or before the date of the commencement of employment with an employer, the employee shall furnish the employer with a signed withholding allowance certificate relating to the withholding allowance claimed by the employee, which shall in no event exceed the amount to which the employee is entitled. If, on any day during the calendar year, an employee’s withholding allowance is in excess of the withholding allowance to which the employee would be entitled had the employee submitted a true and accurate withholding allowance certificate to the employer on that day, the employee shall within 10 days thereafter furnish the employer with a new withholding allowance certificate. If, on any day during the calendar year, an employee’s withholding allowance is greater than the withholding allowance claimed, the employee may furnish the employer with a new withholding allowance certificate relating to the withholding allowance to which the employee is so entitled, which shall in no event exceed the amount to which the employee is entitled on such day. If on any day during the calendar year the withholding allowance to which the employee will be, or may reasonably be expected to be, entitled at the beginning of the employee's next taxable year under subtitle A is different from the allowance to which the employee is entitled on such day, the employee shall, in such cases and at such times as the Secretary shall by regulations prescribe, furnish the employer with a withholding allowance certificate relating to the withholding allowance which the employee claims with respect to such next taxable year, which shall in no event exceed the withholding allowance to which the employee will be, or may reasonably be expected to be, so entitled. . Subsections (b)(1), (b)(2), (f)(3), (f)(4), (f)(5), (f)(7) (including the heading thereof), (g)(4), (l)(1), (l)(2), and
(n)of section 3402 are each amended by striking exemption each place it appears and inserting allowance . The heading of section 3402(f) is amended by striking and inserting exemptions . allowance Section 3402(m) is amended by striking additional withholding allowances or additional reductions in withholding under this subsection. In determining the number of additional withholding allowances and inserting an additional withholding allowance or additional reductions in withholding under this subsection. In determining the additional withholding allowance . Paragraphs
(3)and
(4)of section 3405(a) (and the heading for such paragraph (4)) are each amended by striking exemption each place it appears and inserting allowance . Section 3405(a)(4) is amended by striking shall be determined and all that follows through 3 withholding exemptions and inserting shall be determined under rules prescribed by the Secretary . 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 in a calendar year 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). . Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2017. The Secretary of the Treasury may administer section 3402 for taxable years beginning before January 1, 2019, without regard to the amendments made by subsections
(a)and (c).