Phaseout of Exemptions The amount you can claim as a deduction for exemptions is phased out once your adjusted gross income (AGI) goes above a certain level for your filing status. These levels are as follows: Filing Status AGI Level Which Reduces Exemption Amount Married filing separately $99,725 Single 132,950 Head of household 166,200 Married filing jointly 199,450 Qualifying widow(er) 199,450 If your AGI exceeds the level for your filing status, use the Deduction for Exemptions Worksheet in the instructions for Form 1040 to figure the amount of your deduction for exemptions. You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that your AGI exceeds the amount shown for your filing status. If your AGI exceeds the amount shown by more than $122,500 ($61,250 if married filing separately), the amount of your deduction for exemptions is reduced to zero.