Ill STAT. 994 PUBLIC LAW 105-34—AUG. 5, 1997 all that follows and inserting "shall not exceed the greater of— " (A) $500, or "(B) the sum of $250 and such individual's earned income.". (2) CONFORMING AMENDMENT.—Paragraph (4) of section 63(c) is amended— • (A) by striking "(5)(A)" in the material preceding subparagraph (A) and inserting "(5)", and (B) by striking "by substituting" and all that follows in subparagraph (B) and inserting "by substituting for 'calendar year 1992' in subparagraph (B) thereof— "(i) 'calendar year 1987' in the case of the dollar amounts contained in paragraph (2) or (5)(A) or subsection (f), and "(ii) 'calendar year 1997' in the case of the dollar amount contained in paragraph (5)(B).". (b) MINIMUM TAX EXEMPTION AMOUNT.— (1) IN GENERAL. —Subsection (j) of section 59 is amended to read as follows: "( j) TREATMENT OF UNEARNED INCOME OF MINOR CHILDREN. — "(1) IN GENERAL.—In the case of a child to whom section Kg) applies, the exemption amount for purposes of section 55 shall not exceed the sum of— "(A) such child's earned income (as defined in section 911(d)(2)) for the taxable year, plus "(B) $5,000. "(2) INFLATION ADJUSTMENT.—In the case of any taxable year beginning in a calendar year after 1998, the dollar amount in paragraph (1)(B) shall be increased by an amount equal to the product of— "(A) such dollar amount, and "(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting '1997' for '1992' in subparagraph (B) thereof If any increase determined under the preceding sentence is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.". (2) CONFORMING AMENDMENT.— Clause (iv) of section 6103(e)(1)(A) is amended by striking "or 59(j)". 26 USC 59 note. (c) EFFECTIVE DATE. —The amendments made by this section shall apply to taxable years beginning after December 31, 1997. SEC. 1202. INCREASE IN AMOUNT OF TAX EXEMPT FROM ESTIMATED TAX REQUIREMENTS. (a) IN GENERAL. — Paragraph (1) of section 6654(e) (relating to exception where tax is small amount) is amended by striking "$500" and inserting "$1,000". 26 USC 6654 (b) EFFECTIVE DATE.— The amendments made by this section note. shall apply to taxable years beginning after December 31, 1997. SEC. 1203. TREATMENT OF CERTAIN REIMBURSED EXPENSES OF RURAL MAIL CARRIERS. (a) IN GENERAL.—Section 162 (relating to trade or business expenses) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection:
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