Claiming exemptions

Each exemption you claim on your return reduces your taxable income by $3,100. According to the IRS, you will lose all or part of the benefit of your exemptions if your adjusted gross income is above a certain amount. For unmarried individuals, the amount is $142,700; and $107,025 if you are married filing separately. For heads of household, the amount is $178,350. You may claim an exemption for yourself as long as you cannot be claimed as the dependent of another taxpayer. If you're married, you may claim your spouse as an exemption when you file a joint return. If you and your spouse file separately, you may claim your spouse as an exemption if he or she has no income and is not a dependent of another person. Then there are exemptions for children, parents, and other dependents. There's no limit to how many you can claim, but dependents must satisfy five requirements: theymust have lived with you as a member of your household for one year or be related to you; you must have provided at least half of their total support for the entire year; they must be U.S. residents or citizens, or residents of Canadaor Mexico for some part of that year; each individual must not have earned a certain amount; and they may not file a joint return with someone else for the year claimed. These tips are provided to give you general information about your taxes. If you have specific questions, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.