IRS Final Rules Address Definition of Dependent and Availability of Premium Tax Credit in Light of Personal Exemption Reduction Under the TCJA | Practical Law
The Internal Revenue Service (IRS) has issued two final regulations addressing the effect of the reduction to zero of the personal exemption deduction under Section 151 of the Internal Revenue Code (Code). This change was enacted under 2017 tax reform legislation—the Tax Cuts and Jobs Act (TCJA). The final regulations address the change involving the personal exemption deduction in the contexts of, respectively, the Code's definition of dependent and the availability of premium tax credits for the Affordable Care Act (ACA) health insurance exchanges.