Do I Claim Myself as an Exemption on My Taxes?

Many taxpayers find themselves asking what seems like a simple question: “Do I claim myself on my taxes?” The landscape of federal income tax has undergone significant shifts in recent years, altering long-standing practices. The rules for how you account for yourself and your family on a tax return have changed. This article will explain the current rules regarding personal exemptions, why the familiar process no longer applies at the federal level, and what has taken its place.

The Elimination of Federal Personal Exemptions

The direct answer to whether you can claim yourself as a personal exemption on your federal tax return is no. For decades, taxpayers could deduct a set amount for themselves, their spouse, and each dependent. This deduction, known as the personal exemption, reduced a taxpayer’s adjusted gross income (AGI) and lowered their overall taxable income. In 2017, the last year it was available, this exemption was valued at $4,050 per person.

This long-standing feature of the tax code was removed by the Tax Cuts and Jobs Act of 2017 (TCJA). Starting with the 2018 tax year and effective through 2025, the personal exemption amount was set to zero for all taxpayers. This change applies universally, regardless of your income level or filing status, and was a fundamental shift in how taxable income is calculated.

The Role of the Standard Deduction

In place of the personal exemption, the Tax Cuts and Jobs Act (TCJA) significantly increased the standard deduction. This is a fixed dollar amount taxpayers can subtract from their adjusted gross income (AGI) if they choose not to itemize deductions, like mortgage interest or charitable gifts. This change was intended to simplify tax filing, as a higher standard deduction means fewer people need to track itemized expenses.

The increase was substantial. For example, in 2017, the standard deduction for a single individual was $6,350; the TCJA nearly doubled it to $12,000 for the 2018 tax year. For married couples filing jointly, the amount jumped from $13,000 to $24,000. These amounts are adjusted annually for inflation, and for many households, the larger standard deduction provided a greater tax benefit than the old system.

This shift streamlined tax preparation for millions. With a much higher threshold, the number of taxpayers who benefit from itemizing their deductions dropped from about 31% before the TCJA to just 9% by 2020. Choosing between the standard deduction and itemizing is straightforward: you select the option that results in a larger deduction, lowering your taxable income by a greater amount.

Claiming Dependents on Your Tax Return

The dependency exemption was also set to $0 by the TCJA. Previously, you could claim an exemption for each qualifying child or relative you supported. While this deduction is gone, it was replaced with enhanced tax credits to provide financial relief for families.

The primary replacement is the expanded Child Tax Credit (CTC), which the TCJA doubled to a maximum of $2,000 per qualifying child under 17. The law also increased the income thresholds, making the credit available to more families. For dependents who do not qualify for the CTC, such as a college student over 16 or an elderly parent, the law introduced the Credit for Other Dependents (ODC), a $500 non-refundable credit.

It is important to understand the difference between a deduction and a credit. A deduction, like the old personal exemption, reduces your taxable income. A tax credit reduces your final tax bill on a dollar-for-dollar basis. For many, a credit is more beneficial; a $2,000 credit reduces the tax you owe by the full $2,000, while a deduction’s value depends on your tax bracket.

To claim these credits, you must still identify each dependent on your Form 1040 and provide their Social Security Number for the CTC. The rules for who qualifies as a dependent—based on factors like age, relationship, and financial support—remain in place. The IRS provides an interactive tool to help determine if your dependent qualifies for either credit.

State Tax Personal Exemptions

While federal personal exemptions are eliminated, the rules may be different for your state income taxes. Many states have their own tax laws separate from the federal system and continue to offer a personal exemption on state tax returns. These states did not adopt the federal change that set the exemption amount to zero.

The way states handle this varies. Some have their own fixed personal exemption amounts that were unaffected by federal changes. Others had laws linked to the federal definition and have since passed legislation to clarify their own rules and preserve state-level exemptions.

Because state rules vary, you must check the regulations for the state where you file taxes. Do not assume that because you cannot claim a personal exemption on your federal return, the same is true for your state return. The most reliable way to confirm your state’s current rules is to visit the official website for your state’s Department of Revenue or tax agency.