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What are the types of exemptions?

There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax.

What is the difference between exemption and exception?

An exception is when a certain situation is somehow different than the normal rule. An exemption is a case when some rule doesnt apply at all.

What does it mean to be given an exemption?

the fact of not having to obey a rule or do something that other people have to do: [ U ] He was granted exemption from military service during World War II. An exemption is a particular amount of money that is not taxed: [ C ] a tax exemption.

What is an example of an exemption?

Children are exemptions, or deductions, on tax forms; the more children you have the less taxes you pay. Some non-profits are tax-exempt; their exemption means they pay no taxes at all. Exemptions also spare people from fighting in wars and doing some jobs.

What is an exemption on taxes example?

For example, a $100 exemption or deduction reduces a filers taxable income by $100. It reduces the filers taxes by a maximum of $100 multiplied by the tax rate the filer would have faced on that $100 in income.

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