Income Tax News


Submitted by Fran Shupp
Benbush Business Service

Suspension of Deduction for Personal Exemption I.R.C. §§ 151,642,3402,6012,6334; TCJA § 11041

Generally effective for tax years beginning after December 31,2017, and before January 1, 2026. The IRS may administer I.R.C. § 3402 withholding rules for tax, years beginning before January 1, 2019, without regard to the suspension of the personal exemption or the changes to the withholding rules.

For tax years beginning after December 31, 2017, and before January

1, 2026, the I.R.C. § lSl (d) term exemption amount means zero. Thus, there is no deduction for personal exemptions. For purposes of any other provision of the Internal Revenue Code, the reduction of the exemption amount to zero is not considered in determining whether a deduction for personal exemptions is allowed or allowable, or whether a taxpayer is entitled to a deduction for personal exemptions.