Simple English definitions for legal terms
Read a random definition: corporation
A personal exemption is a deduction allowed for an individual taxpayer's income. It reduces the amount of income that is subject to taxation. It is like a special allowance given to taxpayers to help them reduce their tax burden. It is different from a dependency exemption, which is a tax exemption granted for each dependent whose gross income is less than the exemption amount and for each child who is younger than 19 or, if a student, younger than 24.
A personal exemption is a deduction allowed from an individual's adjusted gross income for tax purposes. It reduces the amount of income that is subject to taxation.
These examples illustrate how a personal exemption can reduce an individual's taxable income, resulting in a lower tax liability.