Exemption

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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 periodicals archive ?
An exempt employee's current salary is $715 per week, the employee regularly works 50 hours per week, and you want to convert this employee to an hourly employee but keep your costs the same.
Both federal and state regulations require that employees must perform all of the duties enumerated in the statutes (the duties test) as well as conform to the requirement that employers pay exempt employees on a salary basis (the salary basis test).
For example, if the investor lives in Pennsylvania, which has an income tax, the income from Pennsylvania Turnpike Bonds would be exempt. The income would be exempt from both federal and state (and sometimes city) income taxes.
"Additional part-time staff is being considered to minimize the financial impact of having to pay for extended coverage previously provided by exempted employees.
In general, prior rulings addressing joint ventures between tax-exempt organizations and for-profits have indicated that if a tax-exempt organization cedes control to its for-profit partner, the tax-exempt organization will lose exempt status for its share of the income.
According to New York attorney Blair Soyster, quoted in NEPA's Hotline, reporters and editors whose work requires "invention, imagination, originality and talent" may be exempt from overtime requirements, while those whose responsibilities are limited to requiring "intelligence, diligence and accuracy" may not be exempt.
Only certain deductions may be made from a salaried exempt employee's salary: 1) full days missed for personal reasons (other than illness); or 2) full days missed for illness, but only if the deductions are pursuant to an established sick leave or PTO plan.
From the White House's perspective, only one option remains: Tax those who are currently exempt. That's why the White House has endorsed corralling into the system the relatively small number of people whose retirements are secure outside it.
However, under the FLSA, for qualifying employees to remain exempt from overtime pay requirements, they must receive the predetermined salary each pay period, "without reduction for variations in the quality or quantity of work performed." Exempt employees must receive the full salary for any week in which they perform any work, without regard to the number of hours worked, subject to a very limited number of exceptions:
To determine whether an employee is exempt or non-exempt, you should look first to his or her job content and then determine whether the individual is paid on a salaried basis.
Docking an exempt employee for less than a full week's absence for injury or witness duty or work shutdowns is also taboo.
Tangible personal property that is used by the donee in a manner unrelated to the donee's exempt (or governmental) purpose; and