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?© BrainMass Inc. brainmass.com June 4, 2020, 1:24 am ad1c9bdddf
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 ...
Citing authoritative references, this solution illustrates how to compute the personal or dependency exemption indexed for inflation.