Exemption amounts are phased-out as income increases. You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that your AGI exceeds the amount shown for your filing status. If your AGI exceeds the amount shown (in the chart below) by more than $122,500 ($61,250 if married filing separately), the amount of your deduction for exemptions is reduced to zero.
https://www.irs.gov/publications/p501#en_US_2017_publink1000195627
Filing Status - AGI Level That Reduces Exemption Amount
- Married filing separately - 156,900
- Single - 261,500
- Head of household - 287,650
- Married filing jointly - 313,800
- Qualifying widow(er) - 313,800
**This answer is for 2017 tax returns. The TCJA eliminated personal and dependent exemptions effective with 2018 tax returns. The link now references Publication 501 for the current year, so exemption information and charts are no longer included. **Note added on 03/25/20.
