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 ?
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.
33) For taxation years beginning after 2002 and before October 30, 2003, an exempt interest includes all participating interests in qualifying entities.
If exempt workers find the investments too risky, or even too safe, they can switch funds - a choice obviously not offered by the federal government.
But I want to emphasize that the standards under which the IRS reviews exempt status have not changed.
Case studies of what other HR executives are doing to classify exempt versus non-exempt employees, what techniques they have utilized, how have they been penalized for misclassification, and important lessons learned that you need to know about
Reporting: Exempt interest, including exempt--interest dividends, will now be reported on Form 1099-INT; certain types of otherwise exempt interest subject to the alternative minimum tax (AMT) must be separately reported on the same form.
The duties test requires that employees routinely spend more than 50 percent of their working time performing exempt duties.
A reduction of the principal or interest on the exempt loan if it uses them to repay the exempt loan.
Remember, the guys who prepare voter guides normally are not tax exempt, so they don't have one to lose; you have the tax-exempt status.
Foreign recipient organization uses the grant for activities consistent with the grantor's exempt purpose;
There are several categories of exempt interests in a FIE:
THE IRS ISSUED NEW DISCLOSURE RULES TO INCREASE the extent to which exempt organizations must distribute information to the public.