How Many Exemptions Should I Claim on My Taxes?

Overview

Claim As Many Exemptions As You Can

Each exemption you claim on your income tax return reduces your total taxable income. The value of each exemption adjusts with inflation, and as of 2010, reduces your taxable income by $3,650. You can claim exemptions for yourself, your spouse and any qualifying dependents.

Do All Your Dependents Qualify as Exemptions?

Not all people dependent on you qualify to be claimed as an exemption. In addition, each person can only be claimed as a dependent on one income tax return. For example, if two parents file separate returns, a child can only be claimed on one.

Bottom Line

You should claim all the exemptions you are eligible for to minimize your income tax bill. Record your qualifying dependents' Social Security numbers accurately on your tax return to ensure your exemptions are approved.

References

• IRS: Publication 17
• Jackson Hewitt: Dependents

Resources

• IRS: Publication 17 - Qualifications for Exemptions