Personal Exemption (United States) - Phase-out

Phase-out

The tax deduction for personal tax exemptions begins to be phased out if AGI exceeds $234,600 for 2007 joint tax returns and $156,400 for 2007 single tax returns. Each tax exemption is reduced by 2% for each $2,500 by which your AGI exceeds the threshold amount until the benefit of all tax exemptions is eliminated (2007) or reduced by one-third (2008 & 2009) on your tax return. All claimed tax exemptions are phased out to $2,333 for single tax return filers with an AGI of more than $282,450 in 2008 and joint tax return filers with AGI of more than $362,450 in 2008.

For 2009, the personal exemption amount is $3,650 ($3,500 for 2008). The exemption amount for taxpayers with adjusted gross income in excess of the maximum phaseout amount is $2,433 for 2009. For 2009, the personal exemption amount begins to phase out at, and reaches the maximum phaseout amount after, the following adjusted gross income amounts: