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Related to exemptions: Personal Exemptions, Tax Exemptions


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.


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.


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.


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 ?
But our institutions, though in coincidence with the spirit of the age, have not any exemption from the practical defects which have discredited other forms.
Fortunately, he could quench his thirst at any moment, and, in recalling the sufferings he had undergone in the desert, he experienced comparative relief in his exemption from that other distressing want.
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.
The new sub-section provides that "An individual taxpayer who is a senior citizen shall be entitled to an additional exemption in the amount equal to the maximum additional exemptions allowed for dependents.
Natural Resources Wales staff will also be on the stand every day from today until Thursday, between 10am and 2pm, to assist farmers with re-registering their farm waste exemptions.
FARMERS must register their agricultural waste exemptions before the end of September or it will be assumed they are not required, says farm business consultancy Strutt & Parker.
The Pension Protection Act of 2006 (PPA) added seven statutory exemptions to ERISA.