; adjusted gross income For purposes of this paragraph— (i) marital status shall be determined under section 7703, and (ii) the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. . (3) Adjustment for inflation Section 36C of such Code, as so redesignated, is amended by inserting after subsection (c) the following new subsection: (d) Adjustment for inflation (1) In general In the case of any taxable year beginning after 2017, the $1,000 amount in subsection (b)(1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2016 for calendar year 1992 in subparagraph (B) thereof. (2) Rounding If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.