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For 2007, the personal exemption per family member rises to $3,400, up from $3,300 in 2006.
In 2008, the personal exemption will go up to $3,500.
You can claim the full amount of the personal exemption for a family member even if he or she is born on Dec. 31.
But one of the peculiarities of existing tax law is that your personal-exemption deduction is gradually phased out as your income reaches higher adjusted-gross-income levels.
These are the adjusted gross income levels for those phase-outs in 2007 and 2008:
| Filing status | Phase-out starts | Phase-out ends |
|---|---|---|
Married filing jointly | $234,600 | $357,100 |
Head of household | $195,500 | $318,000 |
Single | $156,400 | $278,900 |
Married filing separately | $117,300 | $178,550 |
Here's how the exemptions phase out in 2008
| Filing status | Phase-out starts | Phase-out ends |
|---|---|---|
Married filing jointly | $239,950 | $362,450 |
Head of household | $199,950 | $322,450 |
Single | $159,950 | $282,450 |
Married filing separately | $119,975 | $181,225 |
Published Dec. 6, 2007
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