number of the taxpayer’s dependents for the taxable 
year’’. 
(83) Section 6013(b)(3)(A) is amended— 
(A) by striking ‘‘had less than the exemp-
tion amount of gross income’’ in clause (ii) and 
inserting ‘‘had no gross income’’, 
(B) by striking ‘‘had gross income of the 
exemption amount or more’’ in clause (iii) and 
inserting ‘‘had any gross income’’, and 
(C) by striking the flush language fol-
lowing clause (iii). 
(84) Section 6014(a) is amended by striking 
‘‘section 6012(a)(1)(C)(i)’’ and inserting ‘‘section 
6012(a)(1)(B)(iii)’’. 
(85) Section 6014(b)(4) is amended by striking 
‘‘63(c)(5)’’ and inserting ‘‘63(c)(4)’’. 
(86) Section 6103(l)(21)(A)(iii) is amended to 
read as follows: 
‘‘(iii) the number of the taxpayer’s de-
pendents,’’. 
(87) Section 6213(g)(2)(H) is amended by 
striking ‘‘section 21 (relating to expenses for house-
hold and dependent care services necessary for gain-
ful employment) or section 151 (relating to allow-
ance of deductions for personal exemptions)’’ and in-
serting ‘‘subsection (a)(1)(B), (b)(1)(A)(ii), or 
(b)(1)(B) of section 2 or section 21, 35(d)(1)(B), 
36B(b)(3)(B), or 63(f)(2)(B)’’. 
(88) Section 6334(d) is amended— 
(A) by amending paragraph (2) to read as 
follows: 
‘‘(2) EXEMPT AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘exempt amount’ means an 
amount equal to— 
‘‘(i) the sum of the amount deter-
mined under subparagraph (B) and the 
standard deduction, divided by 
‘‘(ii) 52. 
‘‘(B) AMOUNT
DETERMINED.—For pur-
poses of subparagraph (A), the amount deter-
mined under this subparagraph is— 
‘‘(i) the dollar amount in effect under 
section 7706(d)(1)(B), multiplied by 
‘‘(ii) the number of the taxpayer’s de-
pendents for the taxable year in which the 
levy occurs. 
‘‘(C) VERIFIED STATEMENT.—Unless the 
taxpayer submits to the Secretary a written and 
properly verified statement specifying the facts
necessary to determine the proper amount 
under subparagraph (A), subparagraph (A) 
shall be applied as if the taxpayer were a mar-
ried individual filing a separate return with no 
dependents.’’, and 
(B) by striking paragraph (4). 
(89) Section 7702B(f)(2)(C)(iii) is amended by 
striking ‘‘section 152(d)(2)’’ and inserting ‘‘section 
7706(d)(2)’’. 
(90) Section 7703(a) is amended by striking 
‘‘part V of subchapter B of chapter 1 and’’. 
(91) Section 7703(b)(1) is amended by striking 
‘‘section 152(f)(1))’’ and all that follows and insert-
ing ‘‘section 7706(f)(1)) who is a dependent of such 
individual for the taxable year (or would be but for 
section 7706(e)),’’. 
(92) Section 7706(a), as redesignated by this 
section, is amended by striking ‘‘this subtitle’’ and 
inserting ‘‘subtitle A’’. 
(93)(A) Section 7706(d)(1)(B), as redesignated 
by this section, is amended by striking ‘‘the exemp-
tion amount (as defined in section 151(d))’’ and in-
serting ‘‘$4,150’’.
(B) Section 7706(d), as redesignated by this 
section, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year begin-
ning after 2018, the $4,150 amount in paragraph 
(1)(B) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(c)(2)(A) for the calendar 
year in which such taxable year begins, deter-
mined by substituting ‘calendar year 2017’ for 
‘calendar year 2016’ in clause (ii) thereof. 
If any increase determined under the preceding sen-
tence is not a multiple of $50, such increase shall 
be rounded to the next lowest multiple of $50.’’. 
(94) Section 7706(e)(3), as redesignated by this 
section, is amended by inserting ‘‘(as in effect before 
its repeal)’’ after ‘‘section 151’’. 
(95) Section 7706(f)(6)(B), as redesignated by 
this section, is amended by striking clause (i) and 
designating clauses (ii), (iii), and (iv) as clauses (i), 
(ii), and (iii), respectively.
(96) The table of parts for subchapter B of 
chapter 1 is amended by striking the item relating 
to part V. 
(97) The table of sections for chapter 79 is 
amended by adding at the end the following new 
item: 
‘‘Sec. 7706. Dependent defined.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND 
LOCAL, ETC. TAXES. 
(a) IN GENERAL.—Section 164(b)(6) is amended by 
striking all that precedes ‘‘The preceding sentence’’ and 
inserting the following: 
‘‘(6) LIMITATION
ON
INDIVIDUAL
DEDUC-
TIONS.—In the case of an individual— 
‘‘(A) no deduction shall be allowed under 
this chapter for foreign real property taxes paid 
or accrued during the taxable year, and 
‘‘(B) the aggregate amount of the deduc-
tion allowed under this chapter for taxes de-
scribed in paragraphs (1), (2), and (3) of sub-
section (a) and paragraph (5) of this subsection 
paid or accrued by the taxpayer during the tax-
able year shall not exceed $10,000 ($5,000 in