What is an Exemption?
Answer:
The basic definition of an exemption is immunity 
from an obligation or duty. For tax purposes, an exemption allows an additional amount of money from your gross income earning to be deducted.

A tax exemption lowers the amount of tax you owe because the exemption itself lowers your taxable income. Personal exemptions and dependent exemptions are two types of exemptions which you can claim when you file your taxes each year.

An exemption may only be claimed on one tax return. If you’re divorced, and your spouse claims your children on his or her tax return, you will not be able to claim the children on your tax return. If you have adopted children or foster children, they might also be an exemption. Other persons that may be considered an exemption include elderly parents that may receive support from you.

For further information about exemptions, you can contact your tax attorney, tax preparer, or the Internal Revenue Service.
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