What Are Personal Exemptions When Filing Joint Taxes?

Personal exemptions are items claimed on your tax return that decrease your taxable income. The value of the personal exemption adjusts each year for inflation.

How Many Can I Claim?

You can claim a personal exemption for yourself and your spouse when you file a joint tax return. If you have dependents, you may also claim an exemption for each one.

What are They Worth?

For 2009 and 2010, each personal exemption you claim decreases your taxable income by $3,650.

How Much Will I Save?

The amount you will save on your taxes for personal exemption depends on your tax bracket. For example, if you fall in the 28-percent tax bracket, an exemption claimed for 2010 will save you $1,022.

Phaseout

For 2009, if you are married filing jointly and your adjusted gross income (AGI) exceeds $250,200, the value of your personal exemptions will decrease by 2 percent for every $2,500 you are over the AGI limit.

Requirements

You must list your Social Security number, as well as the numbers of your spouse and any other dependents that you claim. Otherwise, your personal exemption may not be allowed.

References

• IRS: Personal Exemptions and Dependents
• The Tax Policy Center: 2010 Individual Income Tax Rates, Standard Deductions, Personal Exemptions, and Filing Thresholds