2009 exemption amounts

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

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 status Phaseout of exemptions when AGI is over Maximum phaseout applies if your AGI exceeds
Married filing jointly or qualifying widow(er) $250,200 $372,700
Head of household $208,500 $331,000
Single $166,800 $289,300
Married filing separately $125,100 $186,350

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