Regina and Emil file a joint return and have 12 childrenall

Regina and Emil file a joint return and have 12 children—all of whom qualify as dependents. If Regina and Emil have AGI of $394,800, what is their allowable deduction for personal and dependency exemptions for 2017?

Solution

Exemption amount = 4050*14= 56700 Phaseout amount = (394800-313800)= 81000 Phaseout percentage = (81000/2500)*2=66% Allowable deduction for personal and dependency exemptions for 2017 = 56700*(1-0.66)= 19278