Updated: Nov 30, 2019
The personal exemption amount is temporarily set to zero for tax years after December 31, 2017, and before January 1, 2026.
Personal Exemption and Gross Income Limitation for Qualifying Relative
The personal exemption amount was $4,050 for 2017 and was eliminated as of 2018; therefore, the personal exemption amount for the tax year 2019 is $0. The increased standard deduction under TCJA and lower tax rates were designed to offset this change. As with all changes, eliminating something in our tax code, which other code sections reference or use creates problems. There are other code sections that refer to the exemption amount and require an “amount” for calculation, such as the gross income limitation for a qualifying relative. The amount for those sections was adjusted for inflation to $4,150 for the tax year 2018. The exemption amount for 2019, as adjusted for inflation, is $4,200. The personal exemption is set for reinstatement for tax years beginning January 1, 2026.