26 U.S.C. § 151 : US Code - Section 151: Allowance of deductions for personal exemptions

Search 26 U.S.C. § 151 : US Code - Section 151: Allowance of deductions for personal exemptions

(a) Allowance of deductions
In the case of an individual, the exemptions provided by this
section shall be allowed as deductions in computing taxable income.
(b) Taxpayer and spouse
An exemption of the exemption amount for the taxpayer; and an
additional exemption of the exemption amount for the spouse of the
taxpayer if a joint return is not made by the taxpayer and his
spouse, and if the spouse, for the calendar year in which the
taxable year of the taxpayer begins, has no gross income and is not
the dependent of another taxpayer.
(c) Additional exemption for dependents
An exemption of the exemption amount for each individual who is a
dependent (as defined in section 152) of the taxpayer for the
taxable year.
(d) Exemption amount
For purposes of this section -
(1) In general
Except as otherwise provided in this subsection, the term
"exemption amount" means $2,000.
(2) Exemption amount disallowed in case of certain dependents
In the case of an individual with respect to whom a deduction
under this section is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins, the exemption amount applicable to such
individual for such individual's taxable year shall be zero.
(3) Phaseout
(A) In general
In the case of any taxpayer whose adjusted gross income for
the taxable year exceeds the threshold amount, the exemption
amount shall be reduced by the applicable percentage.
(B) Applicable percentage
For purposes of subparagraph (A), the term "applicable
percentage" means 2 percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's adjusted gross income
for the taxable year exceeds the threshold amount. In the case
of a married individual filing a separate return, the preceding
sentence shall be applied by substituting "$1,250" for
"$2,500". In no event shall the applicable percentage exceed
100 percent.
(C) Threshold amount
For purposes of this paragraph, the term "threshold amount"
means -
(i) $150,000 in the case of a joint return or a surviving
spouse (as defined in section 2(a)),
(ii) $125,000 in the case of a head of a household (as
defined in section 2(b),(!1)
(iii) $100,000 in the case of an individual who is not
married and who is not a surviving spouse or head of a
household, and
(iv) $75,000 in the case of a married individual filing a
separate return.
For purposes of this paragraph, marital status shall be
determined under section 7703.
(D) Coordination with other provisions
The provisions of this paragraph shall not apply for purposes
of determining whether a deduction under this section with
respect to any individual is allowable to another taxpayer for
any taxable year.
(E) Reduction of phaseout
(i) In general
In the case of taxable years beginning after December 31,
2005, and before January 1, 2010, the reduction under
subparagraph (A) shall be equal to the applicable fraction of
the amount which would (but for this subparagraph) be the
amount of such reduction.
(ii) Applicable fraction
For purposes of clause (i), the applicable fraction shall
be determined in accordance with the following table:
For taxable years beginning 2The applicable
in calendar year - fraction is -
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2006 and 2007 (!2/3)
2008 and 2009 1/3 .
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(F) Termination
This paragraph shall not apply to any taxable year beginning
after December 31, 2009.
(4) Inflation adjustments
(A) Adjustment to basic amount of exemption
In the case of any taxable year beginning in a calendar year
after 1989, the dollar amount contained in paragraph (1) shall
be increased by an amount equal to -
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year
begins, by substituting "calendar year 1988" for "calendar
year 1992" in subparagraph (B) thereof.
(B) Adjustment to threshold amounts for years after 1991
In the case of any taxable year beginning in a calendar year
after 1991, each dollar amount contained in paragraph (3)(C)
shall be increased by an amount equal to -
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year
begins, by substituting "calendar year 1990" for "calendar
year 1992" in subparagraph (B) thereof.
(e) Identifying information required
No exemption shall be allowed under this section with respect to
any individual unless the TIN of such individual is included on the
return claiming the exemption.