taxes

Tax exemption amounts

Taxes » Tax Credits » Tax Exemption Amounts

Tax form and pencil, close up on 'Filing Status' and 'Exemptions' © Cris Kelly/Shutterstock.com

© Cris Kelly/Shutterstock.com

You can take an exemption deduction for yourself, your spouse and each dependent you claim. On 2015 returns due April 18, 2016, this exemption amount is $4,000 per person, $50 more than in 2014. For 2016 planning purposes, the exemption amount goes up another $50 to $4,050.

Tax exemption amounts

2013$3,900
2014$3,950
2015$4,000
2016$4,050

You claim each allowable exemption on the first page of the Form 1040 or 1040A. There is no special area for exemptions on Form 1040EZ. Because this form is for taxpayers without dependents, the exemption amount is accounted for in the standard deduction amounts shown on that tax return for single or married taxpayers.

For every person who qualifies as an exemption, you'll need to include that person's Social Security number on your return. If these tax identification numbers are missing, the IRS could disallow the exemption claim.

The personal exemption is phased out for higher-income earners. The exemption reduction begins for married filing separately taxpayers with adjusted gross income of $154,950; single filers with AGI of $258,250; head-of-household taxpayers with AGI of $284,050; and married filing jointly taxpayers with AGI of $309,900.

You lose your personal exemption amounts completely when your adjusted gross income is $216,200 and you are a married taxpayer filing separately; $380,750 as a single filer; $406,550 as head of household; and $432,400 as a married couple filing a joint return.

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