exemptions meaning
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Definitions &Translations exemption - a deduction allowed to a taxpayer because of his status (having certain dependents or being blind or being over 65 etc.); additional exemptions are allowed for each dependent
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- electrical or electrical apparatus exemption clause. A clause that provides that damage to appliances stemming from electrical currents is only covered if a fire starts.
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- Tax exemption. Tax exemption refers to a monetary exemption which reduces taxable income. Tax exempt status can provide complete relief from taxes, reduced rates, or tax on only a portion of items. Examples include exemption of charitable organizations from property taxes and income taxes, veterans, and certain cross-border or multi-jurisdictional scenarios.
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- Personal Exemptions • Questions on the L&LT landing page – check your understanding of personal exemptions • What are exemptions? • A dollar amount that can be deducted from a taxpayer’s total income, thereby reducing their taxable income.
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- Examples of exemption in a Sentence. 1  They were granted exemptions from military service. 2  You can claim a tax exemption for each of your dependents.
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Homestead Exemptions Homestead Exemptions. A homestead is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying.
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exemption Related to exemption: Tax exemption. n. 1) in income taxation, a credit given for each dependent, blindness or other disability, and age over 65, which result in a downward calculation in tax levels. These are not to be confused with deductions which reduce gross income upon which taxes are paid.
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DEFINITION of 'Personal Exemption' DEFINITION of 'Personal Exemption' The dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. A separate personal exemption is accorded to every man, woman and child in the U.S. who must file a return.
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exempt vb. 1. (tr) to release from an obligation, liability, tax, etc; excuse: to exempt a soldier from drill. adj (sometimes postpositive). 2. freed from or not subject to an obligation, liability, tax, etc; excused: exempt gilts; tax-exempt bonus.
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Tax Exempt Tax Exempt. What is 'Tax Exempt'. Tax exempt refers to income earnings or transactions that are free from tax at the federal, state or local level. When a taxpayer earns wages or sells an asset for a gain, that individual is creating a tax liability.
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- Personal Exemption is the dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. Eliminated 2018-25 by the new tax bill. Personal Exemption is the dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year.
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exemption When you get an exemption, you don't have to do something. In the sixties, some people got exemptions from military service during the Vietnam War. We don't often think of being left out as a good thing, but when you use the word exemption, you mean that someone has been excluded in a positive way. Children are exemptions, or deductions, on tax forms; the more children you have the less taxes you pay.
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exemption A direct reduction taken from taxable income for a specific reason, as allowed by the IRS. Also called tax exemption. Use exemption in a sentence. “ Mostly non-profit organizations that have a 501 (c) 3 status can claim an exemption from income tax and in some states, from sales tax.
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- Tax exemptions versus deductions and credits. Tax exemptions are similar to tax deductions in that they lower the amount of your income that's subject to taxes. Your ultimate savings, however, will depend on your effective tax rate. Say you earn $40,000 a year, you're eligible for $4,000 in tax exemptions, and your effective tax rate is 25%.
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- ‘This is commonly interpreted to mean that water was initially exempt, but in the final stages this exemption was withdrawn.’ ‘Book stores, corner stores and TV shops are also exempt from the bylaw.’
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Articles Exemption for Foreign Advisers Typically, in a regulatory setting, the word exempt means free from obligation. But when the Securities and Exchange Commission uses the term with respect to exempt reporting advisers, exempt means, ironically, that the entity in question has an obligation to report.
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Property Tax Homestead Exemptions Homestead exemptions reduce property taxes for all homeowners by sheltering a certain amount of a home’s value from tax. Homestead exemptions are a progressive approach to property tax relief—that is, the largest tax cuts as a share of income go to lower-and middle income taxpayers.
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Tax exemption Tax exemption generally refers to a statutory exception to a general rule rather than the mere absence of taxation in particular circumstances, otherwise known as an exclusion. Tax exemption also refers to removal from taxation of a particular item rather than a deduction. International duty free shopping may be termed tax-free shopping. In tax-free shopping, the goods are permanently taken outside the jurisdiction, thus paying taxes is not necessary.
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What Are Tax Exemptions? Updated for Tax Year 2016. OVERVIEW. Tax exemptions come in many forms, but one thing they all have in common is they either reduce or entirely eliminate your obligation to pay tax. Most taxpayers are entitled to an exemption on their tax return that reduces your tax bill in the same way a deduction does.
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26 U.S. Code Â§ 6334 - Property exempt from levy Property exempt from levy. (a) EnumerationThere shall be exempt from levy—. (1) Wearing apparel and school books. Such items of wearing apparel and such school books as are necessary for the taxpayer or for members of his family; (2) Fuel, provisions, furniture, and personal effects.
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What Are Exemptions In Bankruptcy And What Do They Do? Exemptions are created by State Law. There are also federal bankruptcy exemptions, but depending on which state’s exemption laws apply when your case is filed, you may or may not be able to use the federal exemptions. Different states have very different exemption allowances.
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- Also called tax exemption. Use exemption in a sentence “ Mostly non-profit organizations that have a 501 (c) 3 status can claim an exemption from income tax and in some states, from sales tax.
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Module 6: Exemptions Module 6: Exemptions. There are two types of exemptions: personal exemptions and dependency exemptions. Each exemption reduces the income that is subject to tax by the exemption amount. For 2014, the exemption amount is $3,950. Only one exemption can be claimed per person. An exemption for a particular person cannot be claimed on more than one tax return.
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- Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. The difference between deductions, exemptions and credit is that deductions and exemptions both reduce taxable income, while credits reduce tax.[1]
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DEFINITION of 'Grandfather Clause' In situations where this clause creates a competitive advantage for the grandfathered party, exemptions are usually granted for a specified period of time to allow existing businesses to make the changes necessary to comply with new rules and regulations.
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Tax exemption Some jurisdictions allow for a specific monetary reduction of the tax base, which may be referred to as an exemption. For example, the U.S. Federal and many state tax systems allow a deduction of a specified dollar amount for each of several categories of personal exemptions.