An amount excluded from taxable income, given to any taxpayer who cannot be claimed as a dependent by another taxpayer.
Amount of money a taxpayer can exclude from personal income for each member of the household in calculation of a tax obligation.
An amount of income which the taxpayer is allowed to shield from tax. The current tax code, as well as most proposed reforms, grants exemptions for each additional dependent member of a household. This "zero-bracket" amount would increase with family size.
an amount excluded from your taxable income that effective reduces the amount on which you pay taxes
Can be claimed for the taxpayer and spouse. Each personal exemption reduces the income subject to tax by the exemption amount. For 2001, the exemption amount was $2,900.
Generally, an annually adjusted dollar amount deductible by each taxpayer filing a tax return. For example, a single taxpayer may claim one personal exemption on his or her tax return, while a married couple may claim two personal exemptions (one for each spouse). The personal exemption is to be distinguished from the dependency exemption, which applies only to persons qualifying as the taxpayer's dependent for income tax purposes. For high-income taxpayers, the personal and dependency exemptions are subject to phaseout when AGI exceeds a specified threshold amount.
Can be claimed for the taxpayer and spouse. Each personal exemption reduces the income subject to tax by the exemption amount. For 2005, the exemption amount is $3,200.