100 STAT. 2100
PUBLIC LAW 99-514—OCT. 22, 1986
the taxable year, for purposes of this subtitle, the term 'taxable income' means adjusted gross income, minus— "(1) the standard deduction, and "(2) the deduction for personal exemptions provided in section 151. "(c) STANDARD DEDUCTION.—For purposes of this subtitle— "(1) IN GENERAL.—Except as otherwise provided in this subsection, the term 'standard deduction' means the sum of— "(A) the basic standard deduction, and "(B) the additional standard deduction. ?r?
"(2) BASIC STANDARD DEDUCTION.—For purposes of paragraph
- '*' (1), the basic standard deduction is—
"(A) $5,000 in the case of— "(i) a joint return, or iHvo r- * "(ii) a surviving spouse (as defined in section 2(a)), "(B) $4,400 in the case of a head of household (as defined in section 20))), "(C) $3,000 in the case of an individual who is not married and who is not a surviving spouse or head of household, or "(D) $2,500 in the case of a married individual filing a separate return. "(3) ADDITIONAL STANDARD DEDUCTION FOR AGED AND BLIND.—
For purposes of paragraph (1), the additional standard deduction is the sum of each additional amount to which the taxpayer "*"" is entitled under subsection (f). ^ "(4) ADJUSTMENTS FOR INFLATION.—In the case of any taxable year beginning in a calendar year after 1988, each dollar ,,^ amount contained in paragraph (2) or (5)(A) or subsection (f)
- shall be increased by an amount equal to—
"(A) such dollar amount, multiplied by "(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year iM*.\^ begins.
- ]'
"(5) LIMITATION ON STANDARD DEDUCTION IN THE CASE OF
CERTAIN DEPENDENTS.—In the case of an individual with respect 19' to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in If which the individual's taxable year begins, the standard deduces) ^ion applicable to such individual for such individual's taxable year shall not exceed the greater of— "(A) $500, or "(B) such individual's earned income. "(6) CERTAIN INDIVIDUALS, ETC., NOT ELIGIBLE FOR STANDARD
DEDUCTION.—In the case of— "(A) a married individual filing a separate return where either spouse itemizes deductions, m 's.c "(B) a nonresident alien individual, "(C) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States), "(D) an individual making a return under section i 443(a)(1) for a period of less than 12 months on account of a J {, change in his annual accounting period, or
"(E) an estate or trust, common trust fund, or partnership, the standard deduction shall be zero.
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