CFP

Income Tax Fundamentals and Calculations - Personal and Dependency Exemptions

Personal and Dependency Exemptions
On your 2014 return, a taxpayer may claim a $3,950 exemption for each of the following (provided you are not subject to phase out):


  • Yourself If you are not being claimed as a dependent of another taxpayer,
  • Your Spouse Joint return is filed
  • Your Dependents Qualifying children and qualifying relatives
Phase Out of Personal Exemption:
Beginning January 1, 2014, higher income taxpayers will be subject to the return of the personal exemption phase-out. Total amount of exemptions that can be claimed will be reduced by 2% for each $2,500 by which the taxpayer’s AGI exceeds the $254,020/$305,050 threshold.



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