Personal exemptions on Form 1040 no longer exist. The Tax Cuts and Jobs Act set the per-person exemption amount to zero starting in 2018, and the One, Big, Beautiful Bill Act signed in 2025 made that change permanent. The tax relief exemptions used to provide now comes through two places on the return: the standard deduction on Line 12, and the dependent credits calculated on Schedule 8812 and reported on Lines 19 and 28.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments from the One, Big, Beautiful Bill
Personal Exemptions Are Permanently Zero
Before 2018, every taxpayer subtracted a fixed dollar amount from gross income for themselves, their spouse, and each dependent. The Tax Cuts and Jobs Act zeroed out that deduction for tax years 2018 through 2025, and many filers expected exemptions to return once the law sunset.2Defense.gov Military Pay. Tax Cuts and Jobs Act: An Overview for Service Members and Their Families They did not. The One, Big, Beautiful Bill Act locked the exemption amount at zero for 2026 and all future years, so any older guide telling you to plan for the return of personal exemptions is out of date.
The Standard Deduction on Line 12
Line 12 is where the standard deduction goes, and it is the main structural replacement for what exemptions used to do. The amount depends on filing status. For tax year 2026:
- Single or married filing separately: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
These figures adjust for inflation each year.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments from the One, Big, Beautiful Bill If your itemized deductions come out higher, you enter that total on Line 12 instead.
Additional Deduction if You Are 65 or Older
The One, Big, Beautiful Bill Act added a new deduction for taxpayers age 65 and older, effective for tax years 2025 through 2028. If you qualify, you can claim an extra $6,000 on top of the standard deduction seniors already receive under existing law. A married couple where both spouses are 65 or older can claim $12,000 combined.3Internal Revenue Service. Check Your Eligibility for the New Enhanced Deduction for Seniors This matters most for older filers, who lost the most when exemptions disappeared.
The Credits That Replaced Per-Dependent Relief
The exemption used to give you a per-person deduction for each dependent. That benefit now runs through three credits, all calculated on Schedule 8812.4IRS.gov. Instructions for Schedule 8812 (Form 1040) Credits reduce your actual tax bill dollar for dollar rather than shrinking the income you are taxed on, which makes them worth more than the old exemption in many cases.
Child Tax Credit
For tax year 2026, the maximum Child Tax Credit is $2,200 per qualifying child under age 17 with a valid Social Security number. The credit is nonrefundable, so it can zero out your tax but will not by itself produce a refund.
Additional Child Tax Credit
When the Child Tax Credit is larger than your tax, up to $1,700 per child can come back to you as the refundable Additional Child Tax Credit. That amount lands on Line 28 of Form 1040. You need earned income for this piece, and Schedule 8812 walks through the math.5IRS.gov. Schedule 8812 (Form 1040) 2025 Credits for Qualifying Children and Other Dependents
Credit for Other Dependents
Dependents who do not qualify for the Child Tax Credit, such as an aging parent you support or a child who is 17 or older, can still generate a $500 nonrefundable credit each. This is the Credit for Other Dependents, calculated on the same schedule.
The combined Child Tax Credit and Credit for Other Dependents go on Line 19 of Form 1040.6Internal Revenue Service. Form 1040 (2025) Any refundable Additional Child Tax Credit goes on Line 28.
Who Counts as a Dependent
Before claiming any dependent credit, confirm the person meets the federal tests. The IRS recognizes two categories.7Internal Revenue Service. Dependents
Qualifying Child
A qualifying child must pass all five tests:
- Relationship: your son, daughter, stepchild, foster child, sibling, step-sibling, or a descendant of any of these, such as a grandchild or niece.
- Age: under 19 at year-end, under 24 if a full-time student, or any age if permanently and totally disabled.
- Residency: lived with you more than half the year.
- Support: did not provide more than half of their own support.
- Joint return: did not file a joint return with a spouse, except to claim a refund.
The child must also be younger than you (or your spouse, on a joint return), unless permanently disabled.8Office of the Law Revision Counsel. 26 USC 152 – Dependent Defined
Qualifying Relative
A qualifying relative covers people who do not fit the qualifying child rules, like an elderly parent or an adult sibling. The tests:
- Not a qualifying child of anyone.
- Either a specific relative (parent, grandparent, aunt, uncle, in-law) or someone who lived with you all year.
- Gross income under $5,300 for the tax year.
- You provided more than half their total support.
The $5,300 threshold is the 2026 figure and adjusts annually.9Internal Revenue Service. Revenue Procedure 2025-32 In both categories, the dependent must be a U.S. citizen, resident alien, or a resident of Canada or Mexico.
Listing Dependents on Page One
The dependents section sits on page one of Form 1040, below the filing status area. For each dependent you enter four things: full legal name as it appears on the Social Security card, Social Security number or ITIN, relationship to you, and a check in one of two boxes indicating whether the dependent qualifies for the Child Tax Credit or the Credit for Other Dependents.6Internal Revenue Service. Form 1040 (2025)
Get the SSN exactly right. If the name and number do not match Social Security Administration records, the IRS will either reject the e-filed return or issue a math error notice and disallow the credit. A child needs an SSN valid for employment to qualify for the Child Tax Credit. A child with an ITIN or Adoption Taxpayer Identification Number can still qualify you for the Credit for Other Dependents, but not the full Child Tax Credit.10Internal Revenue Service. Dependents
The two checkboxes are easy to miss and they drive the calculation on page two. Wrong box, wrong credit.
Income Limits That Shrink the Credits
The Child Tax Credit and the Credit for Other Dependents both begin to phase out above certain income levels, dropping by $50 for every $1,000 of adjusted gross income over the threshold. For 2026:
- Single, head of household, or married filing separately: $200,000
- Married filing jointly: $400,000
These thresholds are not indexed to inflation and stay in place year to year. If your household income is near either line, run Schedule 8812 carefully; a bonus, a capital gain, or a side income can quietly cut into credits you were counting on.
Claiming a Child After Divorce or Separation
Only one parent can claim a child. By default, that is the custodial parent, meaning the one the child lived with for the greater number of nights during the year. If nights are equal, it is the parent with the higher adjusted gross income.11IRS.gov. Form 8332 (Rev. December 2025) – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
To let the noncustodial parent claim the child, the custodial parent signs Form 8332, and the noncustodial parent attaches it to their return. The release can cover a single year or several future years, and the custodial parent can revoke it later. Two conditions apply: the child must have received more than half their support from one or both parents, and the child must have been in the custody of one or both parents for more than half the year.
Form 8332 only transfers the Child Tax Credit and Credit for Other Dependents. The Earned Income Tax Credit and head of household filing status stay with the custodial parent regardless. And if both parents claim the same child, expect an IRS notice; settle the Form 8332 question before either return is filed.