Define: Personal Exemption

Business, Legal & Accounting Glossary

Definition: Personal Exemption



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Full Definition of Personal Exemption


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.


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Personal Exemption. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/personal-exemption/.
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Personal Exemption. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/personal-exemption/ (accessed: April 06, 2020).
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Personal Exemption. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/personal-exemption/

Definition Sources


Definitions for Personal Exemption are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020