A personal exemption is a deduction that can be claimed by an individual taxpayer to lower their taxable income. It serves as a special allowance provided to taxpayers to help alleviate their tax obligations. It should not be confused with a dependency exemption, which is a tax exemption given for each dependent with a gross income below the exemption threshold and for each child under the age of 19 or, if a student, under the age of 24.
In tax terms, a personal exemption is a deduction from an individual’s adjusted gross income, reducing the amount of income subject to taxation. For the 2020 tax year, the personal exemption amount is $4,300. For example, if someone has an adjusted gross income of $50,000 and claims a personal exemption of $4,300, their taxable income would be $45,700. This demonstrates how a personal exemption can lower an individual’s tax liability by reducing their taxable income.
A personal exemption is a deduction that reduces your taxable income for each individual taxpayer and dependent listed on your tax return.
As of 2021, the personal exemption has been eliminated under the federal tax law. However, some states may still offer personal exemptions.
Under the current federal tax law, you cannot claim a personal exemption for your spouse. However, you may be eligible for other tax benefits such as the standard deduction or the child tax credit.
As of 2021, the federal personal exemption has been eliminated. However, you may be eligible for the child tax credit, which provides a tax benefit for qualifying children.
Yes, some states still allow for personal exemptions on state income tax returns. It is important to check the specific tax laws of your state to determine if you can claim a personal exemption.
Under the current federal tax law, you cannot claim a personal exemption for your elderly parents. However, you may be eligible for other tax benefits such as the medical expense deduction or the dependent care credit.
No, if you are claimed as a dependent on someone else’s tax return, you cannot claim a personal exemption for yourself.
Under the current federal tax law, you cannot claim a personal exemption for your domestic partner. However, you may be eligible for other tax benefits depending on your specific circumstances.
Yes, you may be able to claim a personal exemption for a qualifying foster child if you meet certain criteria. It is important to consult with a tax professional or refer to the IRS guidelines for specific requirements.
Under the current federal tax law, you cannot claim a personal exemption for an unborn child. However, once the child is born and meets the qualifying criteria, you may be eligible for tax benefits such as the child tax credit.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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