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taxmap/pubs/p501-005.htm#en_us_publink1000221039

Phaseout of Exemptions(p21)


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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$125,100 
Single 166,800 
Head of household 208,500 
Married filing jointly 250,200 
Qualifying widow(er)250,200
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 $2,433.
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.
taxmap/pubs/p501-005.htm#en_us_publink1000221042
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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 $3,650 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 $3,650 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 223.                
4.Enter the amount shown below for your filing status:    
 
  • Married filing separately—$125,100
  • Single—$166,800
  • Head of household—$208,500
  • Married filing jointly or Qualifying widow(er)—$250,200
Right brace 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 $2,433 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 78.             
9.Divide line 8 by 3.09.             
10. Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, line 42, or Form 1040A, line 2610.