2008 Values for Personal Exemption Phaseout

In 2008, the personal exemption will be $3,500 per person. Because they are indexed for inflation, the income ranges over which personal exemptions phase out will increase to:

In addition, the 2008 reduction cannot exceed one-third of a taxpayer’s full exemptions; thus, each exemption cannot be reduced below $2,333. As in 2007, that maximum reduction occurs when AGI exceeds the relevant threshold by more than $122,500.