TuboTax shows an "Exemption Amount" of $8,100 on my 1040. What is this for?

[DDollar · Accepted solution]

[Edited 01-08-2019]  For tax years prior to 2018, everyone (unless they are claimed as a dependent on someone else's return) gets a "personal exemption" on their tax return that reduces their taxable income.  For 2016, the personal exemption is $4,050 per person.  So, if you are filing jointly, you and your spouse get that exemption ($4,050 x 2 = $8,100).  The exemption applies to the taxpayer, spouse, and dependent children.

[freeindeed53]

we dont get it in 2018 do we

[xmasbaby0]

No you do not. Personal exemptions were eliminated by the new tax laws.

[freeindeed53]

woow thats terrible

[macuser_22]

The standard deduction has been doubled though so many people will pay less tax.

[freeindeed53]

thank you everyone..

[ckorros]

Turbo Tax included the 8,100.00 exemption on my 2018 return. Why?

[xmasbaby0]

What--no.  There are no personal exemptions for a 2018 return.  The new tax law eliminated that.  What software did you use to prepare a 2018 return?

[VolvoGirl]

Are you a dependent on someone else's return?  You can get a reduced Standard Deduction lower than Single is 12,000.

[ckorros]

Turbo Tax was used. I'll have to examine my return more carefully. It may have been an exemption in conjunction with Social Security. Thanks for your responses.