indexing exemption for inflation. each year, the internal revenue service adjusts the value of an exemption based on inflation ( and rounded to the nearest $50.00). in a recent year, if the exemption was worth 3,100 and inflation was 4.7 percent, what would be the amount of the exemption for the upcoming tax year?

Answer 1

100% + 4.7% = 104.7% = 1.047.
Amt = 1.047*3100 = $3245.70.