Tax Exemptions
Overview
This guide has been updated for OBBBA 2025
As part of U.S. tax reform, the federal deduction for exemptions was suspended for tax years 2018 through 2025, and susequently terminated by OBBBA 2025. However, the exemption amount $5,200 for 2025, up from $5,050 for 2024, is used elsewhere in the tax code for other purposes.
For instance, it is used in the definition of a qualified dependent relative. In this case, the gross income cannot exceed the exemption amount.
Personal & Dependent Exemption Allowance
-
2025: $5,200 ($0 exemption deduction)
-
Annually adjusted for inflation
Related IRC and IRS Publications and Forms
-
IRC Sec 151
-
Form 1040 – Instructions
-
Form 8332 – Exemption Release – Custodial Parent
-
Pub 17 – Your Federal Income tax
-
Pub 501 – Exemptions, Standard Deductions and Filing Information
-
Pub 929 – Tax Rules for Children & Dependents