Each exemption you claim on your 2007 return reduces your taxable income by $3,400. According to the IRS, you will lose all or part of the benefit of your exemptions if your adjusted gross income is above a certain amount. For unmarried individuals, the amount is $156,400; $117,300 if you are married filing separately, and $234,600 for married persons filing jointly or qualifying widow(er)s. For heads of household, the amount is $195,500.You may claim an exemption for yourself as long as you cannot be claimed as the dependent of another taxpayer. If you're married, you may claim your spouse as an exemption when you file a joint return. If you and your spouse file separately, you may claim your spouse as an exemption if he or she has no income and is not a dependent of another person. Then there are exemptions for children, parents, and other dependents. There's no limit to how many you can claim, but dependents must satisfy certain requirements. These tips are provided to give you general information about your taxes. If you have specific questions, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.
