what are exemptions for when filing taxes
Exemptions. A tax exemption is money you earned but donât have to pay taxes on. (Note: Exemptions are different than deductions, which we will cover shortly.) According to the IRS, for the 2016 tax year, the personal exemption amount is $4,050. Claiming all the exemptions for which you qualify can really reduce your tax bill. The amount of exemptions you are allowed to claim depends on the status of your filing. If Youâre a Single Taxpayer: If you are single, you can claim a personal tax exemption for yourself. However, if you are listed as a dependent on someone elseâs tax return, you are not allowed to file a personal tax exemption.