The amount you can claim as a deduction for exemptions is reduced once your adjusted gross income (AGI) goes above a certain level for your filing status. These levels are as follows:
| ||AGI Level|
| ||That Reduces|
|Filing Status ||Exemption Amount|
|Married filing separately||$119,975 |
|Single|| 159,950 |
|Head of household|| 199,950 |
|Married filing jointly|| 239,950 |
You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that your AGI exceeds the amount shown above for your filing status. However, you can lose no more than 1/3 of the dollar amount of your exemptions. In other words, each exemption cannot be reduced to less than $2,333.
If your AGI exceeds the level for your filing status, use Worksheet 2
to figure the amount of your deduction for exemptions. However, if you are claiming a $500 exemption for housing a Midwestern displaced individual, use Form 8914 instead.
Worksheet 2. Worksheet for Determining the Deduction for Exemptions
|1.||Is the amount on Form 1040, line 38, or Form 1040A, line 22, more than the amount on line 4 below for your filing status?|| || |
|□||No.||Stop. Multiply $3,500 by the total number of exemptions claimed on line 6d of Form 1040 or Form 1040A and enter the result on Form 1040, line 42, or Form 1040A, line 26. || || |
|□||Yes.||Continue.|| || |
|2.||Multiply $3,500 by the total number of exemptions claimed on line 6d of Form 1040 or Form 1040A.||2.|| |
|3.||Enter the amount from Form 1040, line 38, or Form 1040A, line 22||3.|| || || |
|4.||Enter the amount shown below for your filing status:|| || || || |
| || |
- Married filing separately—$119,975
- Head of household—$199,950
- Married filing jointly or Qualifying widow(er)—$239,950
| ||4.|| || || |
|5.||Subtract line 4 from line 3. .||5.|| || || |
|6.||Is line 5 more than $122,500 ($61,250 if married filing separately)?|| || || || || |
|□||Yes.||Multiply $2,333 by the total number of exemptions claimed on line 6d of Form 1040 or Form 1040A. Enter the result here and on Form 1040, line 42, or Form 1040A, line 26. Do not complete the rest of this worksheet. || || || || || |
|□||No.||Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a whole number, increase it to the next whole number (for example, increase 0.0004 to 1). || ||6.|| || || |
|7.||Multiply line 6 by 2% (.02) and enter the result as a decimal .||7.|| |
|8.||Multiply line 2 by line 7||8.|| |
|9.||Divide line 8 by 3.0||9.|| |
|10.||Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, line 42, or Form 1040A, line 26 ||10.|| |
You must list the social security number (SSN) of any dependent for whom you claim an exemption in column (2) of line 6c of your Form 1040 or Form 1040A.
If you do not list the dependent's SSN when required or if you list an incorrect SSN, the exemption may be disallowed.
If a person for whom you expect to claim an exemption on your return does not have an SSN, either you or that person should apply for an SSN as soon as possible by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov
or at your local SSA office.
It usually takes about 2 weeks to get an SSN. If you do not have a required SSN by the filing due date, you can file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, for an extension of time to file. taxmap/pubs/p501-005.htm#en_us_publink100041974
If your child was born and died in 2008, and you do not have an SSN for the child, you may attach a copy of the child's birth certificate, death certificate, or hospital records instead. The document must show the child was born alive. If you do this, enter "DIED" in column (2) of line 6c of your Form 1040 or Form 1040A. taxmap/pubs/p501-005.htm#en_us_publink100041975
If your dependent does not have and cannot get an SSN, you must list the individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN) instead of an SSN.taxmap/pubs/p501-005.htm#en_us_publink100041976
If your dependent is a resident or nonresident alien who does not have and is not eligible to get an SSN, your dependent must apply for an individual taxpayer identification number (ITIN). For details on how to apply, see Form W-7, Application for IRS Individual Taxpayer Identification Number.taxmap/pubs/p501-005.htm#en_us_publink100041977
If you have a child who was placed with you by an authorized placement agency, you may be able to claim an exemption for the child. However, if you cannot get an SSN or an ITIN for the child, you must get an adoption taxpayer identification number (ATIN) for the child from the IRS. See Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, for details.