The federal individual income tax is levied on the worldwide income of U.S. citizens and resident aliens and on certain types of U.S. source income of nonresidents. For a nonitemizer, “tax table income” is adjusted gross income less $3,000 for each personal exemption and the standard deduction. If a taxpayer itemizes, tax table income is adjusted gross income minus total itemized deductions and personal exemptions. In addition, individuals may also be subject to the alternative minimum tax.
Personal exemptions are available to the taxpayer for himself, his spouse, and his dependents. The 2014 amount is $3,950 for each individual. No exemption is allowed to a taxpayer who can be claimed as a dependent on another taxpayer’s return.