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Tax Exemptions

Tax exemptions are used to reduce your taxable income and you can usually claim exemptions for yourself, your spouse and each person you can legally claim as a dependent. There are two types of exemptions, one being for personal exemptions and the other for exemptions regarding dependents. Each exemption is worth roughly $3,500 however different rules apply to each type.

Note that if you claim an exemption for a dependent, that dependent cannot turn around a claim a personal exemption on their own tax return. You may however be able to claim a $500 exemption if you provided housing relief to any person displaced by flooding, hurricanes, tornadoes or storms in the Midwestern area of the states.

Claiming exemptions varies from form to form. For instance, if you file a 1040EZ, the exemption amount is simply combined with the standard deduction but if you file either a 1040 or 1040A there are a few more steps involved and if you're doing your own returns, you will want to check your math more than once just to be sure there are no errors on your end.

As a U.S. citizen, U.S. resident alien, U.S. national or a resident of Mexico or Canada, you may also qualify for an exemption. If you happen to be a non resident alien (other than a resident from Mexico or Canada) you qualify for only one personal exemption which means you cannot claim exemptions for spouses or dependents. However, these restrictions do not apply if a non resident alien is married to a U.S. citizen. Remember, your spouse is never considered your dependent.

To simplify, a personal exemption is one where you can claim one exemption for yourself and if you're married, one for your spouse. Now if someone else has the right to claim you as a dependent, even if they don't actually do so, you cannot take an exemption for yourself.

If you and your spouse decide to file a joint return, each can claim one exemption whereas if you file a separate return, you can only claim an exemption for your spouse if they had no gross income, are not filing a return and were not the dependent of another taxpayer.

For a complete list of the rules, regulations and standards for tax exemptions visit www.irs.gov/publications.

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Get the facts said:

Tax exemptions are really useful as it allows us to pay according to our wealth. Donât need to pay extra money for anything. The terms which you introduced here are very informative to recognize the overall idea.

Signal Booster Delhi said:

Getting a tax deduction is a good thing, but stealing tax is very wrong because our country runs through tax.

Mobile Signal Booster said:

Being an owner of Car Tracking India, I also pay taxes and I am very happy to fill the tax. In our country, the new tax system GST has been implemented which is very convenient and simple. In this system you can submit the tax by yourself, no need of anyoneâs help.

Mobile Signal Booster Mumbai said:

To strengthen the economy of any country, it is necessary to strengthen the Texas system there. The tax system should be such that no common man will be harmed by it. As is being seen in India these days that any scheme comes after the arrival of the new government, tax is taken from a common man. After the arrival of the new government here, the new taxes system has been applied which is called GST.

Mobile Signal Booster Navi Mumbai said:

This is a very informative post. The tax which a government of a country takes is used for the development of the country. Taxes should always be deposited at the right time. Many thanks for sharing this good information. <p><b><a href="http://www.signalboostermumbai.in/">Mobile Signal Booster Navi Mumbai</a></b>

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Nice post.

Mobile Signal Booster said:

Tax exemptions are really useful as it allows us to pay according to our wealth. Getting a tax deduction is a good thing. Tax deductions help you reduce an amount from your taxable income and save tax. When you claim an income tax deduction, it reduces the amount of your income that is subject to tax. Reduced taxable income helps you save and invest money in other areas.Thanks for sharing this informative article.

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Tax exemptions are really useful as it allows us to pay according to our wealth. Getting a tax deduction is a good thing. We should pay tax always at the right time. Because government use that taxes for the country development.Nice to read this informative post.

Mobile Network Booster said:

Tax exemptions are really useful as it allows us to pay according to our wealth. Getting a tax deduction is a good thing. We should pay tax always at the right time. Because government use that taxes for the country development.Nice to read this informative post.

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