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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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