Important Changes

Who must file. Generally, the amount of income you can receive before you must file a return has increased. Table 1 shows the filing requirements for most taxpayers.

Exemption amount. The amount you can deduct for each exemption has increased from $2,800 in 2000 to $2,900 in 2001.

Exemption phaseout. You lose all or part of the benefit of your exemptions if your adjusted gross income is above a certain amount. The amount at which this phaseout begins depends on your filing status. For 2001, the phaseout begins at $99,725 for married persons filing separately; $132,950 for single individuals; $166,200 for heads of household; and at $199,450 for married persons filing jointly. See Phaseout of Exemptions, later.

Standard deduction. The standard deduction for most taxpayers who do not itemize deductions on Schedule A of Form 1040 is higher in 2001 than it was in 2000. The amount depends on your filing status. The 2001 Standard Deduction Tables are shown near the end of this publication as Tables 7, 8, and 9.

Itemized deductions. Some of your itemized deductions may be limited if your adjusted gross income is more than $132,950 ($66,475 if you are married filing separately). See Who Should Itemize, later.

Kidnapped child. A child who has been kidnapped may still qualify you for:

• Head of household or qualifying widow(er) with dependent child filing status, and
• The child's dependency exemption.

For details, see Filing Status and Exemptions for Dependents, later.

Previous| First | Next

Publication Index | IRS-Forms Main | Home