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taxmap/pub17/p17-016.htm#TXMP1388ff48 Chapter 3 Personal Exemptions and Dependents(p24)

taxmap/pub17/p17-016.htm#TXMP25f500e3 What's New(p24)

taxmap/pub17/p17-016.htm#TXMP366f1271
Exemption amount.(p24)

The amount you can deduct for each exemption has increased from $3,300 in 2006 to $3,400 in 2007.

taxmap/pub17/p17-016.htm#TXMP51e090db
Exemption phaseout.(p25)

You lose part of the benefit of your exemptions if your adjusted gross income is above a certain amount. For 2007, this phaseout begins at $117,300 for married persons filing separately; $156,400 for single individuals; $195,500 for heads of household; and $234,600 for married persons filing jointly or qualifying widow(er)s. However, in 2007, you can lose no more than 2/3 of the amount of your exemptions. In other words, each exemption cannot be reduced to less than $1,133.

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Introduction

This chapter discusses exemptions. The following topics will be explained.

• Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse.
• Exemptions for dependents — You generally can take an exemption for each of your dependents. A dependent is your qualifying child or qualifying relative. If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return.
• Phaseout of exemptions — You get less of a deduction when your adjusted gross income goes above a certain amount.
• Social security number (SSN) requirement for dependents — You must list the social security number of any dependent for whom you claim an exemption.

taxmap/pub17/p17-016.htm#TXMP0bdffa2c Deduction.(p25)

Exemptions reduce your taxable income. Generally, you can deduct $3,400 for each exemption you claim in 2007. But, you may lose part of the dollar amount of your exemptions if your adjusted gross income is above a certain amount. See Phaseout of Exemptions, later.

taxmap/pub17/p17-016.htm#TXMP29c7a01d How to claim exemptions.(p25)

How you claim an exemption on your tax return depends on which form you file.

If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5.

If you file Form 1040A or Form 1040, follow the instructions for the form. The total number of exemptions you can claim is the total in the box on line 6d. Also complete line 26 (Form 1040A) or line 42 (Form 1040).

Useful items

You may want to see:

taxmap/pub17/p17-016.htm#TXMP4e6e4487 Exemptions(p25)

There are two types of exemptions: personal exemptions and exemptions for dependents. While each is worth the same amount ($3,400 for 2007), different rules apply to each type.

taxmap/pub17/p17-016.htm#TXMP38ff9ec9 Personal Exemptions(p25)

You are generally allowed one exemption for yourself and, if you are married, one exemption for your spouse. These are called personal exemptions.

taxmap/pub17/p17-016.htm#TXMP6bfdc853 Your Own Exemption(p25)

You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent.

taxmap/pub17/p17-016.htm#TXMP4b2bc7c9 Your Spouse's Exemption(p25)

Your spouse is never considered your dependent.

taxmap/pub17/p17-016.htm#TXMP5efe7744 Joint return.(p25)

On a joint return you can claim one exemption for yourself and one for your spouse.

taxmap/pub17/p17-016.htm#TXMP5d5bd858 Separate return.(p25)

If you file a separate return, you can claim the exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. This is true even if the other taxpayer does not actually claim your spouse as a dependent. This is also true if your spouse is a nonresident alien.

taxmap/pub17/p17-016.htm#TXMP6b7e7e45 Death of spouse.(p25)

If your spouse died during the year, you generally can claim your spouse's exemption under the rules just explained under Joint return. If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return.

If you remarried during the year, you cannot take an exemption for your deceased spouse.

If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. If you file a joint return with your new spouse, you can be claimed as an exemption only on that return.

taxmap/pub17/p17-016.htm#TXMP6a4f6d4a Divorced or separated spouse.(p25)

If you obtained a final decree of divorce or separate maintenance by the end of the year, you cannot take your former spouse's exemption. This rule applies even if you provided all of your former spouse's support.

Previous Page:  Publication 17 - Your Federal Income Tax - Qualifying Widow(er) With Dependent Child Next Page:  Publication 17 - Your Federal Income Tax - Exemptions for Dependents Use   to find additional occurrences of topic items.