Exemption


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Related to Exemption: Tax exemption

Exemption

Direct reductions from gross income allowed by the IRS.

Tax Exempt

Describing income or organization that is not subject to taxation. Examples of tax exempt organizations include religious groups and charities. Additionally, certain income an individual or corporation derives may be tax exempt. For example, coupons from a municipal bond are tax exempt at the federal level. See also: Tax credit, tax deduction.

exemption

An annual deduction permitted a taxpayer and each dependent for use in computing taxable income. An extra exemption is allowed for being blind or for being 65 years of age or older. The size of the annual exemption is altered each year according to the level of inflation. Also called personal exemption.

Exemption.

An exemption is a fixed dollar amount that you can subtract from your adjusted gross income to reduce your taxable income. The per-person exemption amount is set by Congress each year, and typically increases from year to year.

If you're over 65 or blind, you qualify for an additional exemption. Taxpayers whose adjusted gross income is higher than the government limit may not qualify for an exemption.

Exemption

A deduction for taxpayer, spouse, and each dependent that is subtracted from income that would otherwise be taxed. The allowable amount must be reduced if adjusted gross income exceeds a specified amount. See our Exemption Allowance rate table for the current amount.
References in classic literature ?
It's my turn, but I plead exemption," said Ptitsin.
highly honored that it is rewarded by exemption from the cares of
He seeks glory, And for his glory all things made, all things Orders and governs; nor content in Heaven, By all his Angels glorified, requires Glory from men, from all men, good or bad, Wise or unwise, no difference, no exemption.
On one occasion the Pope promised the remission of a thousand days of purgatory to all persons who should be present at the Chester plays, and to this exemption the bishop of Chester added sixty days more.
Gentlemen of ancient houses have no privilege of exemption from such cruel laws--unless they are of one great house, and then they have.
Besides, it was given with an engaging air of openness, and of special exemption of the one friend he valued, from his reckless indifference.
Who, I say again, was the fool that knows not that there are no letters patent of nobility that confer such privileges or exemptions as a knight-errant acquires the day he is dubbed a knight, and devotes himself to the arduous calling of chivalry?
He claimed, at least, none of the exemptions and emoluments of the romantic passion.
Scores of artists have written to members of the Senate in an effort to gain an exemption for fine-art cadmium pigments.
The California Bankers Association (CBA) today announced that it has chosen National Tax Credit group, LLC, a provider of specialized interest income exemption, incentive wage, and sales/use tax credit documentation services to financial institutions of all sizes as its Endorsed Incentive Tax Credit Partner.
Under existing law, the AMT exemption for individuals would be:
The tax benefit stems from New York City's 421-a Property Tax Exemption program, established in the 1970's to encourage housing development.