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The IRS has set many tax deductions and benefits secure for people. Unfortunately, some taxpayers who are earning a higher level of income can see these benefits phased out as their income increases.

A personal exemption reduces your taxable income so you find yourself paying lower taxes. You most likely are even luckier if the exemption brings you together with a lower tax bracket. For the year 2010 it is $3650 per person, just like last year's amount. This year 2008, a lot was $3,500. It is indexed yearly for accroissement.

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