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In 2017, Dominique and Felix are married, have one dependent, and file a joint tax return. Their AGI is $316,550, and they claim three exemptions. The personal exemption amount for 2017 is $4,050 and the phaseout threshold for married filing a joint tax return is $313,800.
Their allowable exemption amount for 2017 is $
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Question & Answer: In 2017, Dominique and Felix are married, have one dependent, and file a joint tax return. Their AGI is $316,550, and they claim three exem…..
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Expert Answer
Excess amount = AGI $316,550, – phaseout threshold $313,800 = $ 2750
Now, exemption reduction factor = 2750 / 2500 = 1.1 rounded to 2
Exemption reduction = 4050 *3 * 2 * 2 % = $ 486 ( phaseout amount )
Allowable exemption deduction = ( 4050 * 3 ) i.e 12150 – 486 = $ 11664
