The personal exemption ($4,050 for 2016) also has phase-out provisions this year. This begins at $155,650 for individuals filing separate returns ($311,300 married filing jointly). If you earn more than this amount, IRS worksheet 3-2 in the instructions related to "personal exemptions and dependents" will help you calculate what fraction of the of the exemption you are entitled to. Don't worry about it if you earn more than $216,900 (individual) or $433,800 (married filing jointly). In that case, you are not entitled to any personal exemption.
Circular 230 Notice: Pursuant to U.S. Treasury Department Regulations, all tax advice herein is not intended or written to be used, and may not be used, for the purposes of avoiding tax-related penalties under the Internal Revenue Code or promoting, marketing or recommending advice on any tax-related matters addressed herein.
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