If you’re looking for a personal exemption line on your federal tax return, you won’t find one. The Tax Cuts and Jobs Act set the personal exemption amount to zero starting in 2018, and the One, Big, Beautiful Bill signed in 2025 made that zero permanent. The tax relief exemptions once provided now shows up in three other places on Form 1040: the standard deduction on Line 12, the dependent-driven credits calculated on Schedule 8812, and, for taxpayers 65 or older, a new senior deduction added by the 2025 law.
Why the Exemption Line Is Gone
Before 2018, you could subtract a fixed dollar amount from your income for yourself, your spouse on a joint return, and each dependent. In its last year, that amount was $4,050 per person. The Tax Cuts and Jobs Act reduced it to zero through the end of 2025, and many taxpayers expected exemptions to return for 2026.
They didn’t. The One, Big, Beautiful Bill (P.L. 119-21) permanently amended 26 U.S.C. ยง 151(d)(5), striking the sunset date. The statute now sets the exemption amount at zero for every tax year beginning after December 31, 2017, with no end.1Office of the Law Revision Counsel. 26 USC 151 – Allowance of Deductions for Personal Exemptions The IRS confirmed the same in its 2026 inflation adjustment announcement.2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill The framework still sits in the code, but the dollar value attached to it is permanently zero.
Where Dependents Go on Form 1040
The dependents section still appears on page one of Form 1040, just below the filing status and address blocks. You enter each dependent’s name, Social Security number, and relationship to you. Listing them no longer produces a deduction, but the information drives every credit that replaced exemptions, and the IRS uses it to prevent the same person from being claimed twice.3Internal Revenue Service. Dependents
If a dependent doesn’t have a Social Security number, you can’t claim that person at all unless you obtain an Individual Taxpayer Identification Number first.4Internal Revenue Service. Dependents 9 An ITIN-only dependent may qualify for the Credit for Other Dependents but not the Child Tax Credit or the earned income credit, both of which require a valid Social Security number issued before the return’s due date.
The Standard Deduction on Line 12
If you’re searching for the old exemption line, the standard deduction is probably what you actually need. It sits on Line 12 of Form 1040 and reduces adjusted gross income to arrive at taxable income. For the 2026 tax year, the amounts are:2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
- Single or married filing separately: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
Taxpayers 65 or older or legally blind add an additional standard deduction on top of these amounts. For 2026, a single filer or head of household in either category adds $2,050. Married filers add $1,650 per qualifying person. Someone who is both 65 or older and legally blind doubles the additional amount.
The New Senior Deduction
The same 2025 law that permanently killed exemptions added a new deduction in the same section of the code. Section 151(d)(5)(C) gives each taxpayer 65 or older at year end a $6,000 deduction. On a joint return where both spouses qualify, that’s $12,000.1Office of the Law Revision Counsel. 26 USC 151 – Allowance of Deductions for Personal Exemptions
The deduction shrinks by 6 percent of modified adjusted gross income above $75,000 for single filers or $150,000 for joint filers, and phases out entirely at $175,000 single or $350,000 joint. Married taxpayers must file jointly to claim it, and each qualifying person’s Social Security number must appear on the return. It’s available through 2028.
The senior deduction stacks with the additional standard deduction. A 65-year-old single filer under the phaseout threshold could combine the $16,100 standard deduction, the $2,050 additional amount, and the $6,000 senior deduction for $24,150 in reductions before any credits apply.
Credits That Replaced Per-Person Deductions
The dollar-for-dollar benefit tied to your dependents now flows through credits on Schedule 8812, which attaches to Form 1040. A credit reduces the tax you owe directly, rather than reducing the income being taxed.
The Child Tax Credit is worth up to $2,200 per qualifying child under age 17 for 2026. Up to $1,700 is refundable as the Additional Child Tax Credit, meaning you can receive it even if you owe no federal income tax.5Internal Revenue Service. Child Tax Credit
Dependents who don’t qualify for the Child Tax Credit, whether because they’re 17 or older or because they have an ITIN rather than a Social Security number, may qualify for the Credit for Other Dependents, worth up to $500 per person.3Internal Revenue Service. Dependents This one is not refundable; it can zero out your tax but won’t generate a refund on its own. Both credits are calculated on the same Schedule 8812.
State Returns Are a Different Story
Many states never followed the federal lead and still offer personal or dependent exemptions that reduce state taxable income. Amounts vary widely. Alabama allows $1,500 per person. Kansas raised its single-filer exemption to $9,160. Ohio uses a sliding scale from $1,900 to $2,400 per person based on income.
On a state return, these usually appear shortly after the line where federal adjusted gross income is entered. The label varies. Some states call them personal credits, others exemption allowances or adjustments to income. The dependent information from your federal Form 1040 generally supplies what the state form needs, but you’ll have to check the state-specific instructions to find the right line.
“Exempt” on Your W-4 Is a Separate Thing
If you’re thinking of the “exempt” checkbox on Form W-4, that has nothing to do with the old personal exemption. It’s a withholding instruction to your employer, telling them to withhold zero federal income tax from your pay. You can claim it only if you had no federal income tax liability last year and expect none this year.6Internal Revenue Service. Form W-4 It works for very low earners and backfires when income rises during the year, because you’ll owe the full bill (and possibly penalties) at filing. An exempt W-4 also expires annually and must be renewed with a new form by February 15.7Internal Revenue Service. Topic No. 753, Form W-4, Employees Withholding Certificate