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Revision as of 10:18, 25 August 2026

The IRS has set many tax deductions and benefits secure for people. Unfortunately, some taxpayers who are earning a great deal of income can see these benefits phased out as their income increases.

Remember, a personal exemption of $3650 isn't deducted on tax but on your taxable income. Say for example your filing status is 'married filing jointly' with original taxable income of $100,000. This allows you to under the marginal tax rate of 25%. Therefore the money you can save on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For you and the spouse, which is to be multiplied by two which means you save $1825.

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