Exemption Amount Increased

taxtalk — Wed, 25 Jan 2006 17:36:29 +0000

The amount you can deduct for each exemption has increased from $3,100 in 2004 to $3,200 in 2005.

You lose all or part of the benefit of your exemptions if your adjusted gross income is above a certain amount. The amount at which the phaseout begins depends on your filing status. For 2005, the phaseout begins at: * $109,475 for married persons filing separately, * $145,950 for single individuals, * $182,450 for heads of household, and * $218,950 for married persons filing jointly or qualifying widow(er)s.

If your adjusted gross income is above the amount for your filing status, use the Deduction for Exemptions Worksheet in the Form 1040 instructions to figure the amount you can deduct for exemptions.

Would you like a professional to do your taxes. You can contact us by e-mail at wamdc@strompost.com if you have any question.

Tax Solutions

Exemption Amount Increased

Tax Preparation for Individuals

Business tax and accounting