Personal Exemptions
2008 Changes
The amount you can deduct for each exemption has increased to $3,500 for 2008.
You lose part of the benefit of your exemptions if your AGI is above a certain amount. The amount at which the phase-out begins depends on your filing status. For 2008, the phase-out begins at:
$119,975 for married persons filing separately,
$159,950 for single individuals,
$199,950 for heads of household, and
$239,950 for married persons filing jointly or qualifying widow(er)s.
Beginning in 2008, you can lose no more than 1/3 of the dollar amount of your exemptions. In other words, each exemption cannot be reduced to less than $2,333.