Click Here
Bankrate's 2010 Tax Guide
Men with telescope and magnifying glass
2009 exemption amounts

You can take an exemption deduction for yourself, your spouse and each dependent you claim. On 2009 returns, this exemption amount is $3,650 per person.

Some taxpayers, however, will see their personal exemption amount reduced if they make over a certain limit that is adjusted annually for inflation.

To determine just how much exemption value is lost, taxpayers will have to complete a work sheet found in the tax return filing instructions.

You will need the work sheet if your adjusted gross income exceeds the following limits for your filing status:

You must reduce the dollar amount of your exemptions by 2 percent for each $2,500 or part of $2,500 ($1,250 if you are married filing separately) that your AGI exceeds the amounts shown above for your filing state.

However, the maximum income limit is not a total elimination of your exemption amount. Rather, if your income is more than the top phaseout range, you will lose one-third of each allowable exemption amount. That means that you will be able to claim only $2,433 instead of $3,650 for each exemption.

2009 exemption amount income limits
Filing statusPhaseout of exemptions when AGI is overMaximum phaseout applies if your AGI exceeds
Married filing jointly or qualifying widow(er)$250,200$372,700
Head of household$208,500$331,000
Married filing separately$125,100$186,350

<< Back to Bankrate's 2010 Tax guide table of contents.

News alert Create a news alert for "taxes"


Show Bankrate's community sharing policy
          Connect with us
Tax breaks for life's big events
Product Rate Change Last week
30 year fixed refi 3.97%  0.02 3.95%
15 year fixed refi 3.12%  0.02 3.14%
10 year fixed refi 3.14%  0.08 3.22%
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.56%  0.10 4.66%
50K FICO-based HELOC 4.07% --0.00 4.07%
100K FICO-based HELOC 3.83% --0.00 3.83%
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.92%  0.01 2.93%
48 month used car loan 2.79% --0.00 2.79%
60 month new car loan 3.06%  0.01 3.05%
View Rates in your area Next
Product Rate Change Last week
1 Year CD 1.04%  0.01 1.05%
2 Year CD 1.17%  0.01 1.18%
5 Year CD 1.70%  0.09 1.79%
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.88%  NaN NaN%
Cash Back Cards 16.43%  NaN NaN%
Low Interest Cards 11.03%  NaN NaN%

Connect with us