Individual Exemption Form

Instructions and help about Individual Exemption

- Hello again, I am Josh Alballero with IOOGO and today we are going to talk about the removal of exemptions from your income tax return. At the end of 2017, the president signed into law the Tax Cuts and Jobs Act bill. This bill has a lot of beneficial components for both corporations and taxpayers, but it also has some changes that will affect all taxpayers. One of those changes is the removal of the $4,050 exemption per person that you had been able to claim on your tax return. So what does this mean? Under the previous law, if your household was composed of five people, mom, dad and three kids, then you were able to take an exemption deduction of $20,250 from your adjusted gross income. This is a huge deduction for large households. Let's put this into context. If you had a combined household income of $70,000, the $20,250 exemption deduction would reduce your taxable income to $49,750, without including the standard or itemized deduction. This means you would be required to only p