Investor Glossary-personal exemptionInvestor Glossary-personal exemptionInvestor Glossary-personal exemptionInvestor Glossary-personal exemptionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Personal Exemption

The HTML to link to this page
 

The personal exemption is a dollar amount excluded from taxable income on one's income tax return. The personal exemption represents a deduction one takes for oneself. The personal exemption is offered to taxpayers who cannot be claimed as dependents on others' tax returns. An individual who has dependents can also take a personal exemption for each one of them as well, provided that certain IRS requirements are met. Two spouses who are filing a joint return can claim their own personal exemptions, for a total of two. The effect of the personal exemption is to lower one's taxable income and therefore one's tax liability. The personal exemption is found on page two of form 1040. This amount often changes yearly.



Rate this personal exemption definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: liquidity ratio, annual return, wholly-owned subsidiary, debt service coverage, margin rate, 1031 exchange, covered put, inflation, EBITDA, irrevocable trust, deferred tax, open position, 1035 exchange, ex-dividend date, stock split, labor relations, cancelled check, required rate of return, stock market close, limit order, real GDP, APR, in escrow, quality assurance, FTSE, LIBOR, per diem, FICO score, current ratio, Zero Cost Collar, average price per share, class C shares, deferred revenue, VIX, retained earnings, implied volatility, ex-dividend, dividends payable, option premium, balance sheet, command economy, minority interest, Key Rate Duration, diluted share, phantom income, risk management, 144a, reverse mortgage, 401a


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use