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    Indexing of Tax Exemptions

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    Each year the I.R.S. adjusts the value of an exemption based on inflation (and rounded to the nearest $50). In a recent year if the exemption was worth $3,100 and inflation was 4.7%, what would be the amount of the exemption for the upcoming tax year?

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    https://brainmass.com/business/accounting/indexing-tax-exemptions-398616

    Solution Preview

    IRC section 151(d)(4)(a) states that "In the case of any taxable year beginning in a calendar year after 1989, [$2,000] shall be increased by an amount equal ...

    Solution Summary

    Citing authoritative references, this solution illustrates how to compute the personal or dependency exemption indexed for inflation.

    $2.19

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