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 $2,750 in 1999 to $2,800 in 2000.

Exemption phaseout. You will 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 2000, the phaseout begins at $96,700 for married persons filing separately; $128,950 for single individuals; $161,150 for heads of household; and at $193,400 for married persons filing jointly. See Phaseout of Exemptions, later.

Standard deduction. The standard deduction for taxpayers who do not itemize deductions on Schedule A of Form 1040 is higher in 2000 than it was in 1999. The amount depends on your filing status. The 2000 Standard Deduction Tables are shown later as Tables 7, 8, and 9.

Itemized deductions. The amount you can deduct for itemized deductions is limited if your adjusted gross income is more than $128,950 ($64,475 if you are married filing separately). See Who Should Itemize, later.

Paid preparer authorization. Beginning with your return for 2000, you can check a box and authorize the IRS to discuss your tax return with the paid preparer who signed it. If you check the "Yes" box in the signature area of your return, the IRS can call your paid preparer to answer any questions that may arise during the processing of your return. Also, you are authorizing your paid preparer to perform certain actions. See your income tax package for details.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843- 5678) if you recognize a child.

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