8518 / Are personal and dependency exemptions for high-income taxpayers subject to being phased out?
Editor’s Note: The personal and dependency exemptions, along with the phaseout rules discussed below have been eliminated.The materials discussed below generally apply for tax years beginning before January 1, 2018.
Beginning in 2013, the personal and dependency exemptions of taxpayers with income over certain defined threshold levels were subject to being reduced and potentially phased out completely. The dollar amount of personal and dependency exemptions of taxpayers with adjusted gross income above the threshold levels (adjusted annually for inflation1) was reduced by 2 percent for every $2,500 (or fraction thereof; $1,250 in the case of a married individual filing separately) by which income exceeded the threshold levels. Depending upon filing status, at certain adjusted gross income levels, the exemptions were phased out to zero.
For 2017, the following chart illustrates the range of adjusted gross income in which the exemptions were gradually reduced until they are totally phased out:
| Filing Status | AGI Threshold At Which Phase Out Begins | AGI Amount At Which Exemptions are Completely Phased Out |
| Married Joint and Surviving Spouse | $313,800 | $436,300 |
| Head of Household | $287,650 | $410,150 |
| Unmarried Individuals | $261,500 | $384,000 |
| Married Separate | $156,900 | $218,1502 |
1. IRC §§ 151(d)(3), 151(d)(4); Rev. Proc. 2015-53, 2015-44 IRB 615.
2. Rev. Proc. 2016-55.