Standard Deduction
Taxpayers who do not itemize deductions may declare a standard deduction instead. The standard deduction reduces the income on which a taxpayer must pay tax. In general, taxable income is equal to gross income minus deductions and exemptions.
Standard Deduction Amounts
|
Year |
Married filing jointly and surviving spouses |
Married filing separately |
Head of household filers |
Single filers |
|
1997 |
$6,900 |
$3,450 |
$6,050 |
$4,150 |
|
1998 |
$7,100 |
$3,550 |
$6,250 |
$4,250 |
|
1999 |
$7,200 |
$3,600 |
$6,350 |
$4,300 |
|
2000 |
$7,350 |
$3,675 |
$6,450 |
$4,400 |
|
2001 |
$7,600 |
$3,800 |
$6,650 |
$4,550 |
|
2002 |
$7,850 |
$3,925 |
$6,900 |
$4,700 |
|
2003 |
$9,500 |
$4,750 |
$7,000 |
$4,750 |
|
2004 |
$9,700 |
$4,850 |
$7,150 |
$4,850 |
|
2005 |
$10,000 |
$5,000 |
$7,300 |
$5,000 |
|
2006 |
$10,300 |
$5,150 |
$7,550 |
$5,150 |
|
2007 |
$10,700 |
$5,350 |
$7,850 |
$5,350 |
|
2008 |
$10,900 |
$5,450 |
$8,000 |
$5,450 |
|
2009 |
$11,400 |
$5,700 |
$8,350 |
$5,700 |
|
2010 |
$11,400 |
$5,700 |
$8,400 |
$5,700 |
|
2011 |
$11,600 |
$5,800 |
$8,500 |
$5,800 |
|
2012 |
$11,900 |
$5,950 |
$8,700 |
$5,950 |
|
2013 |
$12,200 |
$6,100 |
$8,950 |
$6,100 |
|
2014 |
$12,400 |
$6,200 |
$9,100 |
$6,200 |
|
2015 |
$12,600 |
$6,300 |
$9,250 |
$6,300 |
Source: Revenue Procedures 2014-61, 2013-35, 2013-15, 2011-52, 2011-12, 2009-50, 2008-66, 2007-66, 2006-53, 2005-70, 2004-71, 2003-85, 2002-70, 2001-59, 2001-13, 99-42, 98-61, 97-57, 96-59.
Personal Exemption
The amount of the personal exemption (for a taxpayer and spouse) and of the dependency exemption (for a taxpayer's dependants) is:
2015: $4,000
2014: $3,950
2013: $3,900
2012: $3,800 (no phaseout in 2012)
2011: $3,700 (no phaseout in 2011)
2010: $3,650 (no phaseout in 2010)
2009: $3,650 ($2,433 for persons with adjusted gross income in excess of maximum phaseout amount)
2008: $3,500 ($2,333 for persons with adjusted gross income in excess of maximum phaseout amount)
2007: $3,400
2006: $3,300
2005: $3,200
2004: $3,100
2003: $3,050
2002: $3,000
2001: $2,900
2000: $2,800
1999: $2,750
1998: $2,700
1997: $2,650
1996: $2,550
Source: Revenue Procedures 2014-61, 2013-35, 2013-15, 2011-52, 2011-12, 2009-50, 2008-66, 2007-66, 2006-53, 2005-70, 2004-71, 2003-85, 2002-70, 2001-59, 2001-13, 99-42, 98-61, 97-57, 96-59, 95-53.
For tax years through 2009, the deduction for exemptions may be reduced or eliminated for high-income taxpayers (Code Sec. 151(d)). The exemption for a taxpayer whose adjusted gross income (AGI) exceeds the set threshold amount, based on filing status, is reduced by 2% for each $2,500 ($1,250 for a married person filing separately) or fraction thereof by which AGI exceeds the threshold amount.
The personal exemption phaseout that applied in previous years was suspended in 2010. The 2010 Tax Act extended the suspension of this phaseout through 2012. The American Taxpayer Relief Act of 2012 revived the phaseout for 2013 and beyond.
Personal Exemption Phaseout Minimum Threshold Amounts
|
Year |
Married filing jointly and surviving spouses |
Married filing separately |
Head of household filers |
Single filers |
|
1997 |
$181,800 |
$90,900 |
$151,500 |
$121,200 |
|
1998 |
$186,800 |
$93,400 |
$155,650 |
$124,500 |
|
1999 |
$189,950 |
$94,975 |
$158,300 |
$126,600 |
|
2000 |
$193,400 |
$96,700 |
$161,150 |
$128,950 |
|
2001 |
$199,450 |
$99,725 |
$166,200 |
$132,950 |
|
2002 |
$206,000 |
$103,000 |
$171,650 |
$137,300 |
|
2003 |
$209,250 |
$104,625 |
$174,400 |
$139,500 |
|
2004 |
$214,050 |
$107,025 |
$178,350 |
$142,700 |
|
2005 |
$218,950 |
$109,475 |
$182,450 |
$145,950 |
|
2006 |
$225,750 |
$112,875 |
$188,150 |
$150,500 |
|
2007 |
$234,600 |
$117,300 |
$195,500 |
$156,400 |
|
2008 |
$239,950 |
$119,975 |
$199,950 |
$159,950 |
|
2009 |
$250,200 |
$125,100 |
$208,500 |
$166,800 |
|
2010 |
n/a |
n/a |
n/a |
n/a |
|
2011 |
n/a |
n/a |
n/a |
n/a |
|
2012 |
n/a |
n/a |
n/a |
n/a |
|
2013 |
$300,000 |
$150,000 |
$275,000 |
$250,000 |
|
2014 |
$305,050 |
$152,525 |
$279,650 |
$254,200 |
|
2015 |
$309,900 |
$154,950 |
$284,050 |
$258,250 |
Source: Revenue Procedures 2014-61, 2013-35, 2011-52, 2011-12, 2009-50, 2008-66, 2007-66, 2006-53, 2005-70, 2004-71, 2003-85, 2002-70, 2001-59, 2001-13, 99-42, 98-61, 97-57, 96-59, ATRA 2012.
Phaseout of Personal Exemption Reduction under the 2001 Tax Act
The Economic Growth and Tax Relief Reconciliation Act of 2001 contained a provision that phased out the personal exemption reduction as described below.
The amount of the personal exemption reduction computed in the usual way was reduced by 1/3 in taxable years beginning in 2006 and 2007, by 2/3 in taxable years beginning in 2008 and 2009, and was eliminated in taxable years beginning in 2010. If the personal exemption reduction was computed to be $9,000 in 2006, for example, the actual reduction was $9,000 – (1/3 x $9,000) = $6,000. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extended elimination of the personal exemption phaseout through 2012. The American Taxpayer Relief Act of 2012 revived the phaseout for 2013 and beyond
