of 1986 is hereby repealed. (b) Definition of dependent retained Section 152 of the Internal Revenue Code of 1986, prior to repeal by subsection (a), is hereby redesignated as section 7706 of such Code and moved to the end of chapter 79 of such Code. (c) Application to estates and trusts Subparagraph (C) of section 642(b)(2) of the Internal Revenue Code of 1986 is amended— (1) by striking the exemption amount under section 151(d) in clause (i) and inserting $4,150 , and (2) by striking clause (iii) and inserting the following: (iii) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2018, the $4,150 amount in clause (i) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable begins, determined by substituting 2017 for 2016 in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (d) Application to nonresident aliens Section 873(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (3). (e) Modification of return requirement (1) In general Section 6012 of the Internal Revenue Code of 1986 is amended— (A) by striking paragraph (1) of subsection (a) and inserting the following: (1) Every individual who has gross income for the taxable year, except that a return shall not be required of— (A) an individual who is not married (determined by applying section 7703) and who has gross income for the taxable year which does not exceed the standard deduction applicable to such individual for such taxable year under section 63, or (B) an individual entitled to make a joint return if— (i) the gross income of such individual, when combined with the gross income of such individual’s spouse, for the taxable year does not exceed the standard deduction which would be applicable to the taxpayer for such taxable year