| | Personal Exemption Phaseout Calculation Confusion
Pardon my math skills but I could not make sense of how the 2013 phase out calculation is made. Kindly look at this example I grabbed from a website.
The relevant threshold for 2013 is $275,000 for head of household filers. Ms. Jones adjusted gross income of $300,000 exceeds the threshold of $275,000 by $25,000. We take this excess amount and divide by $2,500, which is 10. We multiply this by 2%, to get 20%. Ms. Jones reduces her personal exemptions by 20%.
My question is: when did 10 x 2% becomes 20%?
It's all the same with other sites, the amount just varies.
Please help this overly confused guy.
Thanks a lot