How-to Guides

On your 2007 return, you may claim a $3,400 exemption for each of the following, provided you are not subject to the phaseout of exemptions for high income taxpayers:

• Yourself. You claim an exemption for yourself unless you are the dependent of another taxpayer. If someone else can claim you as a dependent for 2007, you may not claim a personal exemption for yourself on your own return; this is true even if the other person does not actually claim you as a dependent. This rule prevents your child or other dependent from claiming an exemption on his or her return if you may claim an exemption for the child or other dependent.
• Your spouse. You claim your spouse as an exemption when you file a joint return. If you file a separate return, you claim your spouse as an exemption if he or she has no income and is not a dependent of another person.
• Your dependents. There are two categories of dependents: qualifying children and qualifying relatives. You may not claim any dependents if you can be claimed as a dependent by another taxpayer. In addition, a qualifying child or relative must meet a citizen or resident test, and, if married, must generally not file a joint return; see below.

An individual is your qualified relative for 2007 if the following tests are met:

1. The individual is your relative other than a qualifying child or is a member of your household.

2. The individual had gross income for 2007 of under $3,400.

3. You contributed over half of the individual's support for 2007 or more than 10% of his or her support under the multiple support test.
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Even if a person is your qualifying child or relative, you cannot claim that person as your dependent if any of the following apply:

1. You, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer for the taxable year;

2. The child/relative is not a U.S. citizen or national, or a resident of the U.S., Canada, or Mexico for at least some part of the year; there is an exception for certain adopted children;

3. If married, the child/relative files a joint return, unless the return is only a claim for refund and neither spouse would owe tax on a separate return.
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If a dependent who otherwise met the tests for a qualifying child or relative died during the year, you can claim an exemption for that dependent.
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The IRS verifies the Social Security numbers for both spouses on a joint return and for all claimed dependents.
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You must obtain and report on your return the Social Security number of each dependent claimed. Nonresident and resident aliens not eligible for Social Security numbers must have an individual taxpayer identification number.
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You will lose part or all of the $3,400 deduction for each 2007 personal exemption if your adjusted gross income (AGI) exceeds the threshold amount for your filing status. On your 2007 Form 1040, adjusted gross income is shown on Lines 37 and 38.

On a 2007 return, you are not allowed to claim any deduction for personal exemptions if your adjusted gross income exceeds $278,900 if you are single, $357,100 if you are married filing jointly, $318,000 if you fi le as head of household, and $178,550 if you are married filing separately.
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The phaseout of exemptions is being gradually eliminated between 2006 and 2010. For 2007, the amount of the phaseout otherwise required is only two-thirds of the "full" phaseout. For 2008 and 2009, only one-third of the phaseout will apply, and after 2009, there will not be any phaseout of exemptions.
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