Personal Exemption

The dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. A separate personal exemption is accorded to every man, woman and child in the U.S. that must file a return. For example the amount of the personal exemption was $3,700 in 2011 and $3,800 in 2012.

The amount of each personal exemption that may be claimed was formerly subject to an adjusted gross income phaseout. However, this phaseout was eliminated for tax years 2010, 2011 and 2012. Future legislation will determine whether or not it will be reinstated in 2013.

Investment dictionary. . 2012.

Look at other dictionaries:

  • personal exemption — see exemption Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • personal exemption — ˌpersonal exˈemption 7 [personal exemption] (NAmE) (BrE ˌpersonal alˈlowance) noun the amount of money you are allowed to earn each year before you have to pay ↑ …   Useful english dictionary

  • personal exemption — Amount of money a taxpayer can exclude from personal income for each member of the household in calculation of a tax obligation. Bloomberg Financial Dictionary * * * personal exemption ˌpersonal exˈemption noun [countable] TAX ACCOUNTING the… …   Financial and business terms

  • personal exemption — personal ex emption n AmE the amount of money that you can earn each year before you must pay ↑income tax …   Dictionary of contemporary English

  • personal exemption — personal ex emption noun count AMERICAN an amount of money that you can earn each year before you have to start paying tax on your income …   Usage of the words and phrases in modern English

  • personal exemption — See exemption; tax exemption …   Ballentine's law dictionary

  • personal exemption — Fin the amount of money that an individual can earn without having to pay income tax. Taxpayers can claim one exemption for every person in the household …   The ultimate business dictionary

  • personal exemption deduction — see deduction Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • United States Federal Income Tax Personal Exemption — A deduction for a Personal Exemption amount for the individual taxpayer, the taxpayer s spouse, and the taxpayer s child or other dependent for purposes of calculating a U.S. taxpayer s federal income tax is provided in the Internal Revenue Code… …   Wikipedia

  • exemption — ex·emp·tion /ig zemp shən/ n 1: the act of exempting or state of being exempt 2: one that exempts or is exempted: as a: an amount of income exempted from taxation that may be deducted from adjusted gross income under the tax laws see also… …   Law dictionary

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