| Higher personal exemptions for all taxpayers |
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In 2007 the personal exemption thresholds increased adjusted for inflation. The personal exemption threshold for each filing status, such as single, married, married filing separately, and head of household, have been increased.
By raising the personal exemption limits, your effective tax tax bracket may be lowered since this exemption lowers your taxable income. Everyone that files an individual tax return receives a personal exemption for himself and each of his dependents. If your filing status changes during the tax year, then you still are entitled to the full personal exemption relating to your filing status as of the last day of the year. Take your adjusted gross income less your standard deduction, less your personal exemptions, to arrive at your taxable income. |
2007 Personal Exemptions
| Filling status |
Exemption |
Phase-out starts |
Phase out ends |
|
Married filling jointly or qualifying widow(er) |
$ 3,400 |
$225,750 |
$348,250 |
|
Heads of households |
$ 3,400 |
$188,150 |
$310,650 |
|
Singles |
$ 3,400 |
$150,500 |
$273,000 |
|
Married filling separately |
$ 3,400 |
$112,875 |
$174,125 |
Reduction in phase out. The personal exemption is reduced by 2% for each $ 2,500 that modified AGI exceeds the above beginning phase-out amounts.
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