personal exemption

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Personal exemption

Amount of money a taxpayer can exclude from personal income for each member of the household in calculation of a tax obligation.

Personal Exemption

In U.S. tax, the amount of personal income that is not taxed. That is, the personal exemption is money that is not included in one's adjusted gross income when calculating one's tax liability. One receives additional exemptions for a spouse, children, and if one is over 65 or blind. Congress sets the amount of the personal exemption each year.

personal exemption

See exemption.
References in periodicals archive ?
Taxpayers for many years have had to lose a good portion of the value of personal exemptions and itemized deductions when their incomes rise above certain levels, which have also been adjusted for inflation.
The standard deduction ($14,200) and personal exemptions ($3,800) per person for a couple over age 65 filing jointly is $21,800.
Personal exemption reductions: Reinstated were limitations on itemized deductions and personal exemptions for taxpayers with taxable incomes greater than $250,000 ($300,000 for married couples).
Personal Exemptions: The personal exemption amount for single, separate and head of household taxpayers increased from $102 to $104 for the 2012 tax year.
He was one of two people who sponsored a bill supported by the Campaign for Our Communities, a group of 120 organizations including the Massachusetts Teachers Association, that would increase income tax rates and increase personal exemptions.
Here's why: A married couple retiring today, absent any other tax deductions, would have a standard deduction plus personal exemptions that would total $18,700.
A closer look shows that the savings result primarily from the mechanics of the phaseouts of personal exemptions and Pease limitations on itemized deductions and AMT exemptions, combined with lower ordinary income tax rates in 2008 and 2009.
The new law also provides increased personal exemptions for other employees.
In 2002 and 2003, their total personal exemptions fell to 14.
In addition to broadening the tax base, the plan increased standard deductions and personal exemptions to the point that no family with an income below the poverty line would have to pay federal income tax.
Gross Income $80,000 Less: Standard Deduction 7,350 Personal Exemptions 5,600 Taxable Income $67,050 Tax Liability $13,081

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