FACTOID # 4: Just 1% of the houses in Nevada were built before 1939.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > United States Federal Income Tax Personal Exemption

A deduction for a Personal Exemption amount for the individual taxpayer, the taxpayer's spouse, and the taxpayer's child or other dependent for purposes of calculating a U.S. taxpayer's federal income tax is provided in the Internal Revenue Code at 26 U.S.C. § 151. The personal exemption is allowed in the form of a deduction against the taxpayer's income in the computation to arrive at the taxable income amount against which the tax rates are applied to compute the income tax under 26 U.S.C. § 1. The United States imposes an income tax on the taxable income of individuals, corporations, trusts, decedents estates and certain bankruptcy estates. ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes...


The personal exemption amount in 1894 was $4,000 (which would be equivalent to over $80,000 in 2005 dollars). That tax was declared unconstitutional in 1895. The tax in its present form which began around 1913 had a personal exemption amount of $3,000 (still over $57,000 in 2005 dollars), or $4,000 for married couples.


Over time the amount of the exemption has increased and decreased depending on political policy and the need for tax revenue. Since the Depression, the exemption has increased steadily, but not enough to keep up with inflation.[citation needed]


The exemption amounts for years 1987 through 2007 are as follows:

Tax Year Deduction Amount
1987 $1,900
1988 $1,950
1989 $2,000
1990 $2,050
1991 $2,150
1992 $2,300
1993 $2,350
1994 $2,450
1995 $2,500
1996 $2,550
1997 $2,650
1998 $2,700
1999 $2,750
2000 $2,800
2001 $2,900
2002 $3,000
2003 $3,050
2004 $3,100
2005 $3,200
2006 $3,300
2007 $3,400

The personal exemption is reduced (in some cases totally eliminated) for taxpayers with income above approximately $130,000.


Sources

  • Years 1987 through 2006, Internal Revenue Service, Instructions for Form 1040 (for each listed year)
  • Year 2007, Internal Revenue Service, Rev. Proc. 2006-53 (Nov. 9, 2006).
  • http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=169
  • Year 1913 and 1894, http://www.answers.com/topic/income-tax , American History section
  • http://www.westegg.com/inflation/

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m