2013 Personal Exemption Limitation

You are allowed a $3,900 exemption for yourself, your spouse, and any dependents on the 2013 tax return. However if your adjusted gross income(AGI) is over $250,000(single) or $300,000(joint) then your exemption is reduced by 2% on each $2,500 above the $250,000 and $300,000 thresholds. For example, a married couple with an AGI of $400,000 would see a reduction of their personal exemption of $7,800(3900*2) of $2,000 to $5,800 (.02*2500*100,000/2500=2000).