Tax
Exemptions
The IRS eliminated tax exemptions as a result of the Tax Cuts and Jobs Act. Instead, the standard deduction increased significantly with the start of tax year 2018.
Here is the information for the 2017 and previous years' tax returns.
Tax Exemptions For Tax Year 2017
Tax exemptions for Tax Year 2018 were also discontinued. Tax exemption amounts for Tax Year 2017 are listed below. They reduce the Adjusted Gross Income, ensuring that not all income is taxed. Back taxes can no longer be e-Filed, but you can complete the online tax forms, sign, download and print them and mail them to the IRS. Here is a listing of state tax forms for previous years. Your total exemptions, along with your standard deduction or itemized deductions, are subtracted from your adjusted gross income to figure your taxable income. Each tax exemption is worth $4,050 for Tax Year 2017. There are two types of exemptions: personal exemptions and dependent exemptions.
Personal Exemptions: You may generally claim one tax exemption for yourself if you are a single taxpayer. If you are married and file a joint return, you may claim one tax exemption for yourself and one for your spouse. If you file a separate return, you are only able to claim a tax exemption for your spouse if your spouse is not filing a tax return, has no gross income, and was not claimed as the dependent of another taxpayer.
You must be married on the last day of the year - for 2017 as of Dec. 31, 2017 - to claim a tax exemption for your spouse on your tax return, and if you obtain a final divorce or separation decree by December 31, you may not claim a federal tax exemption for your (ex) spouse. If your spouse dies during the tax year, you can still claim a tax exemption for them for the year.
Dependent Exemptions: You may claim a tax exemption for tax year 2017 for each dependent if all of the following statements are true:
- You (or your spouse if filing jointly) do not qualify to be claimed as a dependent on another person's tax return.
- The potential dependent is not married and filing a Married Filing Jointly return, unless the joint return is only filed to claim a refund and there would be no taxes owed by either spouse if their returns were filed separately.
- The potential dependent is a United States citizen, U.S. national, resident alien, or resident of Canada or Mexico (unless they are a legally adopted child).
- The potential dependent is your Qualifying Child or your Qualifying Relative.
Find out how to claim a dependent.
How to Determine the Number of Exemptions to Claim?
Generally, you can claim one personal tax exemption for yourself and one for your spouse if you are married. You can also claim one tax exemption for each person who qualifies as your dependent, your spouse is never considered your dependent.
You cannot claim any exemptions if another taxpayer is entitled to claim you as a dependent. They claim the exemption for you on their tax return. In addition, you not allowed to claim any dependents.
Too much information to remember and too many steps to follow, isn't it? Worry not! If you don't want to deal with the complexities of tax filing or want to ensure that you file your taxes correctly, we recommend that you prepare and e-file your current year tax return with eFile.com. The eFile tax app will apply the correct standard deduction or itemized deduction based on your information.
The app also automatically chooses the deduction that provides the most tax benefit for you (whether standard deduction or itemized deduction). Additionally, it allows you to compare both options and select itemized deductions or the standard deduction if you prefer.
2017 Federal Income Tax Exemption Amounts
The following tax exemption table shows how much will be deducted from your gross income, based on your number of exemptions:
| Number of Tax Exemptions | Total Exemption Amount |
|---|---|
| 1 | $4,050 |
| 2 | $8,100 |
| 3 | $12,150 |
| 4 | $16,200 |
| 5 | $20,250 |
| 6 | $24,300 |
| 7 | $28,350 |
| 8 | $32,400 |
| 9 | $36,450 |
| 10 | $40,500 |
The personal exemption for Tax Year 2017 begins to phase out with adjusted gross incomes of $261,500 for single taxpayers ($313,800 for married couples filing jointly). It phases out completely at $384,000 for single taxpayers ($436,300 for married couples filing jointly). You can claim personal tax exemptions on Form 1040EZ, 1040A, or 1040. Dependent tax exemptions can only be claimed on Form 1040A or 1040.
See what tax deductions or tax credits you may qualify to claim on your tax return. When you prepare your taxes with the eFile tax app, you will be prompted about many applicable tax reduction options.
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