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26 U.S.C. § 151 — Allowance of deductions for personal exemptions

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 839 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets individuals deduct personal exemptions from their taxable income, for themselves, a non-filing spouse, and dependents. But the exemption amount is set to zero for tax years after 2017. Taxpayers 65 or older can instead claim a special $6,000 senior deduction through 2028, reduced for higher incomes.

(a) Allowance of deductions. If you're an individual taxpayer, you can subtract the exemptions this section describes from your income when figuring your taxable income. (b) Taxpayer and spouse. You get one exemption for yourself. You can also get an exemption for your spouse, but only if you don't file a joint return. Your spouse must have had no income that year. And your spouse can't be someone else's dependent. (c) Additional exemption for dependents. You get one exemption for each person who counts as your "dependent" under section 152. (d) Exemption amount. Normally, the "exemption amount" is $2,000 per exemption. If someone else is allowed to claim you as their dependent, your own exemption amount for that year is zero, even on your own return. There's also a phaseout for higher earners. If your income is above a threshold set in section 68(b), your exemption amount shrinks. It drops by 2 percentage points for every $2,500 your income is above that threshold ($1,250 for a married person filing separately), but it can never drop by more than 100 percent. This phaseout doesn't change whether someone else can still claim you as a dependent. Starting with tax years after 1989, and except as described next, the $2,000 amount goes up each year based on the standard cost-of-living formula in section 1(f)(3), calculated by comparing to 1988 instead of the usual base year. For tax years starting after December 31, 2017, the "exemption amount" is zero. That doesn't change whether a dependent-related deduction is still considered allowed elsewhere in the tax code — it just means the dollar value of the exemption itself is zero. In its place, for tax years before January 1, 2029, a taxpayer gets a $6,000 deduction for each "qualified individual" — meaning the taxpayer, if the taxpayer turned 65 by the end of the year, and, on a joint return, the taxpayer's spouse, if the spouse turned 65 by then. That $6,000 shrinks, but never below zero, by 6 percent of the taxpayer's modified adjusted gross income above $75,000 ($150,000 on a joint return). "Modified adjusted gross income" means regular adjusted gross income plus certain income excluded for living or working abroad or in a U.S. territory. This $6,000 deduction isn't allowed for a qualified individual unless that person's Social Security number is on the tax return. And if the taxpayer is married, this deduction only applies if the taxpayer and spouse file a joint return together. (e) Identifying information required. No exemption under this section is allowed for anyone unless that person's taxpayer identification number is included on the return claiming it.
the actual law source: uscode.house.gov ↗public domain
(a) Allowance of deductions

In the case of an individual, the exemptions provided by this section shall be allowed as deductions in computing taxable income.

(b) Taxpayer and spouse

An exemption of the exemption amount for the taxpayer; and an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.

(c) Additional exemption for dependents

An exemption of the exemption amount for each individual who is a dependent (as defined in section 152) of the taxpayer for the taxable year.

(d) Exemption amount

For purposes of this section—

(1) In general

Except as otherwise provided in this subsection, the term “exemption amount” means $2,000.

(2) Exemption amount disallowed in case of certain dependents

In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the exemption amount applicable to such individual for such individual’s taxable year shall be zero.

(3) Phaseout
(A) In general

In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the applicable amount in effect under section 68(b),1 the exemption amount shall be reduced by the applicable percentage.

(B) Applicable percentage

For purposes of subparagraph (A), the term “applicable percentage” means 2 percentage points for each $2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds the applicable amount in effect under section 68(b).1 In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting “$1,250” for “$2,500”. In no event shall the applicable percentage exceed 100 percent.

(C) Coordination with other provisions

The provisions of this paragraph shall not apply for purposes of determining whether a deduction under this section with respect to any individual is allowable to another taxpayer for any taxable year.

(4) Inflation adjustment

Except as provided in paragraph (5), in the case of any taxable year beginning in a calendar year after 1989, the dollar amount contained in paragraph (1) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 1988” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(5) Special rules for taxable years beginning after 2017

In the case of a taxable year beginning after December 31, 2017—

(A) Exemption amount

The term “exemption amount” means zero.

(B) References

For purposes of any other provision of this title, the reduction of the exemption amount to zero under subparagraph (A) shall not be taken into account in determining whether a deduction is allowed or allowable, or whether a taxpayer is entitled to a deduction, under this section.

(C) Deduction for seniors
(i) In general

In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer.

(ii) Qualified individual

For purposes of clause (i), the term “qualified individual” means—

(I)

the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and

(II)

in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year.

(iii) Limitation based on modified adjusted gross income
(I) In general

In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).

(II) Modified adjusted gross income

For purposes of this clause, the term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

(iv) Social security number required
(I) In general

Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual’s social security number on the return of tax for the taxable year.

(II) Social security number

For purposes of subclause (I), the term “social security number” has the meaning given such term in section 24(h)(7).

(v) Married individuals

If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.

(e) Identifying information required

No exemption shall be allowed under this section with respect to any individual unless the TIN of such individual is included on the return claiming the exemption.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 42; Pub. L. 91–172, title VIII, § 801(a)(1), (b)(1), (c)(1), (d)(1), title IX, § 941(b), Dec. 30, 1969, 83 Stat. 675, 676, 726; Pub. L. 92–178, title II, § 201(a)(1), (b)(1), (c), Dec. 10, 1971, 85 Stat. 510, 511; Pub. L. 94–455, title XIX, § 1901(a)(23), Oct. 4, 1976, 90 Stat. 1767; Pub. L. 95–600, title I, § 102(a), Nov. 6, 1978, 92 Stat. 2771; Pub. L. 97–34, title I, § 104(c), Aug. 13, 1981, 95 Stat. 189; Pub. L. 98–369, div. A, title IV, § 426(a), July 18, 1984, 98 Stat. 804; Pub. L. 99–514, title I, § 103, title XVIII, § 1847(b)(3), Oct. 22, 1986, 100 Stat. 2102, 2856; Pub. L. 100–647, title VI, § 6010(a), Nov. 10, 1988, 102 Stat. 3691; Pub. L. 101–508, title XI, §§ 11101(d)(1)(F), 11104(a), Nov. 5, 1990, 104 Stat. 1388–405, 1388–407; Pub. L. 102–318, title V, § 511, July 3, 1992, 106 Stat. 300; Pub. L. 103–66, title XIII, §§ 13201(b)(3)(G), 13205, Aug. 10, 1993, 107 Stat. 459, 462; Pub. L. 104–188, title I, §§ 1615(a)(1), 1702(a)(2), Aug. 20, 1996, 110 Stat. 1853, 1868; Pub. L. 106–554, § 1(a)(7) [title III, § 306(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–634; Pub. L. 107–16, title I, § 102(a), June 7, 2001, 115 Stat. 44; Pub. L. 107–147, title IV, §§ 412(b), 417(6), Mar. 9, 2002, 116 Stat. 53, 56; Pub. L. 108–311, title II, § 206, Oct. 4, 2004, 118 Stat. 1176; Pub. L. 112–240, title I, § 101(b)(2)(B), Jan. 2, 2013, 126 Stat. 2317; Pub. L. 115–97, title I, §§ 11002(d)(1)(Q), 11041(a), Dec. 22, 2017, 131 Stat. 2060, 2082; Pub. L. 119–21, title VII, § 70103(a), July 4, 2025, 139 Stat. 159.)

history & why it existsrecord from the source credit
  • 1954Enacted · Act of Aug. 16, 1954, ch. 736
  • 1969Amended · Pub. L. 91-172 · 83 Stat. 675, 676, 726
  • 1971Amended · Pub. L. 92-178 · 85 Stat. 510, 511
  • 1976Amended · Pub. L. 94-455 · 90 Stat. 1767
  • 1978Amended · Pub. L. 95-600 · 92 Stat. 2771
  • 1981Amended · Pub. L. 97-34 · 95 Stat. 189
  • 1984Amended · Pub. L. 98-369 · 98 Stat. 804
  • 1986Amended · Pub. L. 99-514 · 100 Stat. 2102, 2856
  • 1988Amended · Pub. L. 100-647 · 102 Stat. 3691
  • 1990Amended · Pub. L. 101-508 · 104 Stat. 1388
  • 1992Amended · Pub. L. 102-318 · 106 Stat. 300
  • 1993Amended · Pub. L. 103-66 · 107 Stat. 459, 462
  • 1996Amended · Pub. L. 104-188 · 110 Stat. 1853, 1868
  • 2000Amended · Pub. L. 106-554 · 114 Stat. 2763, 2763
  • 2001Amended · Pub. L. 107-16 · 115 Stat. 44
  • 2002Amended · Pub. L. 107-147 · 116 Stat. 53, 56
  • 2004Amended · Pub. L. 108-311 · 118 Stat. 1176
  • 2013Amended · Pub. L. 112-240 · 126 Stat. 2317
  • 2017Amended · Pub. L. 115-97 · 131 Stat. 2060, 2082
  • 2025Amended · Pub. L. 119-21 · 139 Stat. 159

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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