Make sure to get your maximum refund. Why should the IRS get to keep a penny of your money?
For 2007, you got to take off as much as $3,400 from your income for each qualified exemption you have, up from $3,300 in 2006. (The level rises to $3,500 in 2008.) Despite myths to the contrary, these include children who are full-time students under age 24, regardless of how much income they may have. As your income increases, your exemption deduction may decrease. For 2007, on a joint return, your exemption deduction were phased out between adjusted gross income of $234,600 and $357,100.
For singles, the numbers are between $156,400 and $278,900. With the exemption rising in 2008, the phaseouts increase as well.
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