To illustrate how the personal exemption phase-out will work, please compute the exemption amount for Jack and Lisa using the Exemption Table below. Jack and Lisa are married and file a joint tax return. They have combined taxable wages and investment income of $40,000. They also have $2,500 of tax-free interest income. The amount you calculate is the amount of the deduction for both Jack and Lisa; in other words, the couple's total exemption would be the amount you calculate times two.

Taxable wages and investment income
Tax-free income
Total taxable and tax-free income
Determine your exemption amount from the table below

Exemption Table:

If your Total Income is: And your Filing Status is:

Single Married Filing Joint Head of Household

Below $5,000 $5,000 $5,000 $5,000

$5,000 - $9,999 $4,700 $5,000 $5,000

$10,000-$14,999 $4,200 $5,000 $5,000

$15,000-$19,999 $3,700 $5,000 $4,500

$20,000-$24,999 $3,200 $4,700 $4,000

$25,000-$29,999 $2,700 $4,200 $3,500

$30,000-$34,999 $2,200 $3,700 $3,000

$35,000-$39,999 $1,700 $3,200 $2,500

$40.000-$44,999 $1,200 $2,700 $2,000

$45,000-$49,999 $700 $2,200 $1,500

$50,000-$54,999 $200 $1,700 $1,000

$55,000-$59,999 $0 $1,200 $500

$60,000-$64,999 $0 $750 $0

$65,000-$69,999 $0 $200 $0

$70,000 or above $0 $0 $0