Internal Revenue Code:Sec. 151. Allowance of deductions for personal exemptions

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter B - Computation of Taxable Income
         PART V - DEDUCTIONS FOR PERSONAL EXEMPTIONS
       

Statute

    Sec. 151. Allowance of deductions for personal exemptions

      [[Note: Pub. L. 109-73 adds an additional exemption for 
       housing Hurricane Katrina displaced individuals - 
         (a) In General- In the case of taxable years of a natural 
          person beginning in 2005 or 2006, for purposes of the 
          Internal Revenue Code of 1986, taxable income shall be 
          reduced by $500 for each Hurricane Katrina displaced 
          individual of the taxpayer for the taxable year.
         (b) Limitations-
            (1) DOLLAR LIMITATION- The reduction under subsection (a) 
             shall not exceed $2,000, reduced by the amount of the 
             reduction under this section for all prior taxable years.
            (2) INDIVIDUALS TAKEN INTO ACCOUNT ONLY ONCE- An 
             individual shall not be taken into account under 
             subsection (a) if such individual was taken into account 
             under such subsection by the taxpayer for any prior 
             taxable year.
            (3) IDENTIFYING INFORMATION REQUIRED- An individual shall 
             not be taken into account under subsection (a) for a 
             taxable year unless the taxpayer identification number 
             of such individual is included on the return of the 
             taxpayer for such taxable year.
         (c) Hurricane Katrina Displaced Individual- For purposes of 
          this section, the term `Hurricane Katrina displaced 
          individual' means, with respect to any taxpayer for any 
          taxable year, any natural person if--
            (1) such person's principal place of abode on August 28, 
             2005, was in the Hurricane Katrina disaster area (an 
             area with respect to which a major disaster has been 
             declared by the President before September 14, 2005, 
             under section 401 of the Robert T. Stafford Disaster 
             Relief and Emergency Assistance Act by reason of 
             Hurricane Katrina).
            (2)(A) in the case of such an abode located in the core 
             disaster area (that portion of the Hurricane Katrina 
             disaster area determined by the President to warrant 
             individual or individual and public assistance from the 
             Federal Government under such Act), such person is 
             displaced from such abode, 
             or
            (B) in the case of such an abode located outside of the 
             core disaster area, such person is displaced from such 
             abode, and
               (i) such abode was damaged by Hurricane Katrina, or
               (ii) such person was evacuated from such abode by 
                reason of Hurricane Katrina, and
            (3) such person is provided housing free of charge by the 
             taxpayer in the principal residence of the taxpayer for 
             a period of 60 consecutive days which ends in such 
             taxable year.
          Such term shall not include the spouse or any dependent of 
          the taxpayer.
         (d) Compensation for Housing- No deduction shall be allowed 
          under this section if the taxpayer receives any rent or 
          other amount (from any source) in connection with the 
          providing of such housing.
      End Note: Pub. L. 109-73, Sec. 302]]
 
    (a) Allowance of deductions
      In the case of an individual, the exemptions provided by this
    section shall be allowed as deductions in computing taxable income.
    (b) Taxpayer and spouse
      An exemption of the exemption amount for the taxpayer; and an
      additional exemption of the exemption amount for the spouse of the
      taxpayer if a joint return is not made by the taxpayer and his
      spouse, and if the spouse, for the calendar year in which the
      taxable year of the taxpayer begins, has no gross income and is not
      the dependent of another taxpayer.
    (c) Additional Exemption for Dependents.--An exemption of the 
      exemption amount for each individual who is a dependent (as defined in 
      section 152) of the taxpayer for the taxable year.
    (d) Exemption amount
      For purposes of this section -
      (1) In general
        Except as otherwise provided in this subsection, the term
        ''exemption amount'' means $2,000.
      (2) Exemption amount disallowed in case of certain dependents
        In the case of an individual with respect to whom a deduction
        under this section is allowable to another taxpayer for a taxable
        year beginning in the calendar year in which the individual's
        taxable year begins, the exemption amount applicable to such
        individual for such individual's taxable year shall be zero.
      (3) Phaseout
        (A) In general
          In the case of any taxpayer whose adjusted gross income for
        the taxable year exceeds the threshold amount, the exemption
        amount shall be reduced by the applicable percentage.
        (B) Applicable percentage
          For purposes of subparagraph (A), the term ''applicable
        percentage'' means 2 percentage points for each $2,500 (or
        fraction thereof) by which the taxpayer's adjusted gross income
        for the taxable year exceeds the threshold amount.  In the case
        of a married individual filing a separate return, the preceding
        sentence shall be applied by substituting ''$1,250'' for
        ''$2,500''. In no event shall the applicable percentage exceed
        100 percent.
        (C) Threshold amount
          For purposes of this paragraph, the term ''threshold amount''
        means -
            (i) $150,000 in the case of a joint return or a surviving
          spouse (as defined in section 2(a)),
            (ii) $125,000 in the case of a head of a household (as
          defined in section 2(b), (FOOTNOTE 1)
       (FOOTNOTE 1) So in original.  A closing parenthesis probably
    should precede the comma.
            (iii) $100,000 in the case of an individual who is not
          married and who is not a surviving spouse or head of a
          household, and
            (iv) $75,000 in the case of a married individual filing a
          separate return.
        For purposes of this paragraph, marital status shall be
        determined under section 7703.
        (D) Coordination with other provisions
          The provisions of this paragraph shall not apply for purposes
        of determining whether a deduction under this section with
        respect to any individual is allowable to another taxpayer for
        any taxable year.
      (4) Inflation adjustments
        (A) Adjustment to basic amount of exemption
          In the case of any taxable year beginning in a calendar year
        after 1989, the dollar amount contained in paragraph (1) shall
        be increased by an amount equal to -
            (i) such dollar amount, multiplied by
            (ii) the cost-of-living adjustment determined under section
          1(f)(3) for the calendar year in which the taxable year
          begins, by substituting ''calendar year 1988'' for ''calendar
          year 1992'' in subparagraph (B) thereof.
        (B) Adjustment to threshold amounts for years after 1991
          In the case of any taxable year beginning in a calendar year
        after 1991, each dollar amount contained in paragraph (3)(C)
        shall be increased by an amount equal to -
            (i) such dollar amount, multiplied by
            (ii) the cost-of-living adjustment determined under section
          1(f)(3) for the calendar year in which the taxable year
          begins, by substituting ''calendar year 1990'' for ''calendar
          year 1992'' in subparagraph (B) thereof.
    (e) Identifying information required
      No exemption shall be allowed under this section with respect to
    any individual unless the TIN of such individual is included on the
    return claiming the exemption.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 42; Pub. L. 91-172, title VIII,
    Sec. 801(a)(1), (b)(1), (c)(1), (d)(1), title IX, Sec. 941(b), Dec.
    30, 1969, 83 Stat. 675, 676, 726; Pub. L. 92-178, title II, Sec.
    201(a)(1), (b)(1), (c), Dec. 10, 1971, 85 Stat. 510, 511; Pub. L.
    94-455, title XIX, Sec. 1901(a)(23), Oct. 4, 1976, 90 Stat. 1767;
    Pub. L. 95-600, title I, Sec. 102(a), Nov. 6, 1978, 92 Stat. 2771;
    Pub. L. 97-34, title I, Sec. 104(c), Aug. 13, 1981, 95 Stat. 189;
    Pub. L. 98-369, div.  A, title IV, Sec. 426(a), July 18, 1984, 98
    Stat. 804; Pub. L. 99-514, title I, Sec. 103, title XVIII, Sec.
    1847(b)(3), Oct. 22, 1986, 100 Stat. 2102, 2856; Pub. L. 100-647,
    title VI, Sec. 6010(a), Nov. 10, 1988, 102 Stat. 3691; Pub. L.
    101-508, title XI, Sec. 11101(d)(1)(F), 11104(a), Nov. 5, 1990, 104
    Stat. 1388-405, 1388-407; Pub. L. 102-318, title V, Sec. 511, July
    3, 1992, 106 Stat. 300; Pub. L. 103-66, title XIII, Sec.
    13201(b)(3)(G), 13205, Aug. 10, 1993, 107 Stat. 459, 462; Pub. L.
    104-188, title I, Sec. 1615(a)(1), 1702(a)(2), Aug. 20, 1996, 110
    Stat. 1853, 1868; Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
    306(a)), Dec. 21, 2000, 114 Stat. 2763, 2763A-634; Pub. L. 107-16,
    title I, Sec. 102(a), June 7, 2001, 115 Stat. 44.)
 

Amendment of Section


    PERSONAL EXEMPTION ADJUSTMENT FOR TAX YEARS BEGINNING IN 2002
        For adjustment and phaseout of personal exemption under
      subsection (d) of this section for tax years beginning in 2002,
      see section 3.11 of Revenue Procedure 2001-59, set out as a note
      under section 1 of this title.
                       AMENDMENT OF SUBSECTION (D)(3)
        Pub. L. 107-16, title I, Sec. 102, title IX, Sec. 901, June 7,
      2001, 115 Stat. 44, 150, provided that, applicable to taxable
      years beginning after Dec. 31, 2005, subsection (d)(3) of this
      section is temporarily amended by adding subparagraphs (E) and
      (F) at end to read as follows:
        (E) Reduction of phaseout
          (i) In general
            In the case of taxable years beginning after December 31,
          2005, and before January 1, 2010, the reduction under
          subparagraph (A) shall be equal to the applicable fraction of
          the amount which would (but for this subparagraph) be the
          amount of such reduction.
          (ii) Applicable fraction
            For purposes of clause (i), the applicable fraction shall
          be determined in accordance with the following table:
                 For taxable years beginning             The applicable
                  in calendar year--                       fraction is--
                    2006 and 2007...............................  \2/3\ 
                    2008 and 2009...............................  \1/3\.

         (F) Termination.--This paragraph shall not apply 
            to any taxable year beginning after December 31, 2009.

    ---------------------------------------------------------------------
    For taxable years beginning in     The applicable fraction is -
     calendar year -
    ---------------------------------------------------------------------
     2006 and 2007                      2/3
     2008 and 2009                      1/3.
                     -------------------------------
        (F) Termination
          This paragraph shall not apply to any taxable year beginning
        after December 31, 2009.
        See Effective and Termination Dates of 2001 Amendment note
      below.

Miscellaneous


                              AMENDMENTS
     2005 - Pub. L. 109-73, Sec. 302 created an additional exemption 
     for housing Hurricane Katrina displaced individuals effective in 
     the case of a natural person beginning in 2005 or 2006.

     2004 - Pub. L. 108-311 Sec. 206, amends subsec (c)"additional
     Expemption for Dependents."

      2002 - Subsec.412(b), Pub. L. 107-147, amends Sec.151(c)
    (6)(C).
      2002 - PL 107-147; Effective Date - The amendments made
    by this section shall take effect as if included in the
    provisions of the Community Renewal Tax Relief Act of 2000
    to which they relate.
      2000 - Subsec. (c)(6). Pub. L. 106-554 added par. (6).
      1996 - Subsec. (d)(3)(C)(i). Pub. L. 104-188, Sec. 1702(a)(2),
    substituted ''joint return'' for ''joint of a return''.
      Subsec. (e). Pub. L. 104-188, Sec. 1615(a)(1), added subsec. (e).
      1993 - Subsec. (d)(3)(E). Pub. L. 103-66, Sec. 13205, struck out
    heading and text of subpar. (E). Text read as follows: ''This
    paragraph shall not apply to any taxable year beginning after
    December 31, 1996.''
      Subsec. (d)(4)(A)(ii), (B)(ii). Pub. L. 103-66, Sec.
    13201(b)(3)(G), substituted ''1992'' for ''1989''.
      1992 - Subsec. (d)(3)(E). Pub. L. 102-318 substituted ''1996''
    for ''1995''.
      1990 - Subsec. (d). Pub. L. 101-508, Sec. 11104(a), amended
    subsec. (d) generally.  Prior to amendment, subsec. (d) read as
    follows: ''For purposes of this section -
      ''(1) In general. - Except as provided in paragraph (2), the term
    'exemption amount' means -
        ''(A) $1,900 for taxable years beginning during 1987,
        ''(B) $1,950 for taxable years beginning during 1988, and
        ''(C) $2,000 for taxable years beginning after December 31,
      1988.
      ''(2) Exemption amount disallowed in the case of certain
    dependents. - In the case of an individual with respect to whom a
    deduction under this section is allowable to another taxpayer for a
    taxable year beginning in the calendar year in which the
    individual's taxable year begins, the exemption amount applicable
    to such individual for such individual's taxable year shall be
    zero.
      ''(3) Inflation adjustment for years after 1989. - In the case of
    any taxable year beginning in a calendar year after 1989, the
    dollar amount contained in paragraph (1)(C) shall be increased by
    an amount equal to -
        ''(A) such dollar amount, multiplied by
        ''(B) the cost-of-living adjustment determined under section
      1(f)(3), for the calendar year in which the taxable year begins,
      by substituting 'calendar year 1988' for 'calendar year 1987' in
      subparagraph (B) thereof.''
      Subsec. (d)(3)(B). Pub. L. 101-508, Sec. 11101(d)(1)(F),
    substituted ''1989'' for ''1987''.
      1988 - Subsec. (c)(1)(B)(ii). Pub. L. 100-647 inserted ''who has
    not attained the age of 24 at the close of such calendar year''
    after ''student''.
      1986 - Subsec. (c). Pub. L. 99-514, Sec. 103(b), redesignated
    subsec. (e) as (c) and struck out former subsec. (c) which provided
    for an additional exemption for taxpayer or spouse aged 65 or more.
      Subsec. (d). Pub. L. 99-514, Sec. 103(b), redesignated subsec.
    (f) as (d) and struck out former subsec. (d) which provided for an
    additional exemption for blindness of taxpayer or spouse.
      Subsec. (e). Pub. L. 99-514, Sec. 103(b), redesignated subsec.
    (e) as (c).
      Pub. L. 99-514, Sec. 1847(b)(3), substituted ''section 22(e)''
    for ''section 37(e)'' in par. (5)(C).
      Subsec. (f). Pub. L. 99-514, Sec. 103(b), redesignated subsec.
    (f) as (d).
      Pub. L. 99-514, Sec. 103(a), amended subsec. (f) generally.
    Prior to amendment, subsec. (f) read as follows: ''For purposes of
    this section, the term 'exemption amount' means, with respect to
    any taxable year, $1,000 increased by an amount equal to $1,000
    multiplied by the cost-of-living adjustment (as defined in section
    1(f)(3)) for the calendar year in which the taxable year begins.
    If the amount determined under the preceding sentence is not a
    multiple of $10, such amount shall be rounded to the nearest
    multiple of $10 (or if such amount is a multiple of $5, such amount
    shall be increased to the next highest multiple of $10).''
      1984 - Subsec. (e)(5). Pub. L. 98-369 added par. (5).
      1981 - Subsecs. (b), (c), (d)(1), (2), (e)(1). Pub. L. 97-34,
    Sec. 104(c)(1), substituted ''the exemption amount'' for ''$1,000''
    wherever appearing.
      Subsec. (f). Pub. L. 97-34, Sec. 104(c)(2), added subsec. (f).
      1978 - Pub. L. 95-600 increased exemption from $750 to $1,000
    with respect to taxable years beginning after Dec. 31, 1978.
      1976 - Subsec. (e)(4). Pub. L. 94-455 struck out ''and
    educational institution'' after ''Student'' in heading, substituted
    in subpars. (A) and (B) ''organization described in section
    170(b)(1)(A)(ii)'' for ''institution'', and struck out provisions
    following subpar. (B) defining educational institution.
      1971 - Pub. L. 92-178 increased exemption from $650 to $675 with
    respect to taxable years beginning after Dec. 31, 1970, and before
    Jan. 1, 1972, and from $675 to $750 with respect to taxable years
    beginning after Dec. 31, 1971.
      1969 - Pub. L. 91-172, Sec. 801(a)(1), (b)(1), (c)(1), (d)(1),
    increased exemption from $600 to $625 with respect to taxable years
    beginning after Dec. 31, 1969, and before Jan. 1, 1971, from $625
    to $650 for taxable years beginning after Dec. 31, 1970, and before
    Jan. 1, 1972, from $650 to $700 for taxable years beginning after
    Dec. 31, 1971, and before Jan. 1, 1973, and from $700 to $750 for
    taxable years beginning after Dec. 31, 1972.
      Subsecs. (b), (c), Pub. L. 91-172, Sec. 941(b), substituted ''if
    a joint return is not made by the taxpayer and his spouse'' for
    ''if a separate return is made by the taxpayer''.
                      EFFECTIVE DATE OF 2005 AMENDMENT
      Pub. L. 109-73, Sec. 302 is effective in the case of taxable 
    years of a natural person beginning in 2005 and 2006.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Pub. L. 107-16, title I, Sec. 102(b), June 7, 2001, 115 Stat. 44,
    provided that: ''The amendment made by this section (amending this
    section) shall apply to taxable years beginning after December 31,
    2005.''
      Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
    limitation years beginning after Dec. 31, 2010, and the Internal
    Revenue Code of 1986 to be applied and administered to such years
    as if such amendment had never been enacted, see section 901 of
    Pub. L. 107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 2000 AMENDMENT
      Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec. 306(b)), Dec. 21,
    2000, 114 Stat. 2763, 2763A-635, provided that: ''The amendment
    made by this section (amending this section) shall apply to taxable
    years ending after the date of the enactment of this Act (Dec. 21,
    2000).''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 1615(a)(1) of Pub. L. 104-188 applicable
    with respect to returns the due date for which, without regard to
    extensions, is on or after the 30th day after Aug. 20, 1996, with
    special rule for 1995 and 1996, see section 1615(d) of Pub. L.
    104-188, set out as a note under section 21 of this title.
      Amendment by section 1702(a)(2) of Pub. L. 104-188 effective,
    except as otherwise expressly provided, as if included in the
    provision of the Revenue Reconciliation Act of 1990, Pub. L.
    101-508, title XI, to which such amendment relates, see section
    1702(i) of Pub. L. 104-188, set out as a note under section 38 of
    this title.
                      EFFECTIVE DATE OF 1993 AMENDMENT
      Amendment by section 13201(b)(3)(G) of Pub. L. 103-66 applicable
    to taxable years beginning after Dec. 31, 1992, see section
    13201(c) of Pub. L. 103-66, set out as a note under section 1 of
    this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by section 11101(d)(1)(F) of Pub. L. 101-508 applicable
    to taxable years beginning after Dec. 31, 1990, see section
    11101(e) of Pub. L. 101-508, set out as a note under section 1 of
    this title.
      Amendment by section 11104(a) of Pub. L. 101-508 applicable to
    taxable years beginning after Dec. 31, 1990, see section 11104(c)
    of Pub. L. 101-508, set out as a note under section 1 of this
    title.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Section 6010(b) of Pub. L. 100-647 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to
    taxable years beginning after December 31, 1988.''
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 103 of Pub. L. 99-514 applicable to taxable
    years beginning after Dec. 31, 1986, see section 151(a) of Pub. L.
    99-514, set out as a note under section 1 of this title.
      Amendment by section 1847(b)(3) of Pub. L. 99-514 effective,
    except as otherwise provided, as if included in the provisions of
    the Tax Reform Act of 1984, Pub. L. 98-369, div.  A, to which such
    amendment relates, see section 1881 of Pub. L. 99-514, set out as a
    note under section 48 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Section 426(b) of Pub. L. 98-369 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to
    taxable years beginning after December 31, 1984.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to taxable years beginning
    after Dec. 31, 1984, see section 104(e) of Pub. L. 97-34, set out
    as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 102(d)(1) of Pub. L. 95-600 provided that: ''The
    amendments made by subsections (a) and (b) (amending this section
    and sections 6012 and 6013 of this title) shall apply to taxable
    years beginning after December 31, 1978.''
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by Pub. L. 94-455 applicable with respect to taxable
    years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L.
    94-455, set out as a note under section 2 of this title.
                      EFFECTIVE DATE OF 1971 AMENDMENT
      Section 201(a), (b) of Pub. L. 92-178 provided in part that the
    increase in exemption from $650 to $675 was effective with respect
    to taxable years beginning after Dec. 31, 1970, and before Jan. 1,
    1972, and from $675 to $750 was effective with respect to taxable
    years beginning after Dec. 31, 1971.
                      EFFECTIVE DATE OF 1969 AMENDMENT
      Section 801(a)(1) of Pub. L. 91-172 provided in part that the
    increase in exemption from $600 to $625 is effective with respect
    to taxable years beginning after Dec. 31, 1969, and before Jan. 1,
    1971.
      Section 801(b)(1) of Pub. L. 91-172 provided in part that the
    increase in the exemption from $625 to $650 is effective with
    respect to taxable years beginning after Dec. 31, 1970, and before
    Jan. 1, 1972.
      Section 941(c) of Pub. L. 91-172 provided that: ''The amendments
    made by subsections (a) (amending section 6012 of this title) and
    (b) (amending this section) shall apply to taxable years beginning
    after December 31, 1969.''
                                  REPEALS
      Section 801(c)(1), (d)(1) of Pub. L. 91-172 provided for an
    increase in the personal exemption to $700, effective with respect
    to taxable years beginning after Dec. 31, 1971, and before Jan. 1,
    1973, and to $750, effective with respect to taxable years
    beginning after Dec. 31, 1972, prior to repeal by section 201(c) of
    Pub. L. 92-178.
             PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
    any plan, such plan amendment shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1989, see
    section 1140 of Pub. L. 99-514, as amended, set out as a note under
    section 401 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1, 2, 21, 24, 25A, 25B,
    32, 56, 63, 72, 129, 132, 135, 152, 153, 172, 220, 221, 222, 443,
    642, 703, 773, 873, 874, 891, 904, 931, 933, 1212, 1402, 2032A,
    3402, 6012, 6013, 6213, 6334, 6428, 7703 of this title.
 

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