Longman Dictionary of Contemporary English
Wikipedia
Under United States tax law, a personal exemption is an amount that a resident taxpayer is entitled to claim as a tax deduction against personal income in calculating taxable income and consequently federal income tax. It has the effect of reducing income tax payable, even to tax-free level, but not so as to result in a tax refund. In 2015 the personal exemption amount was US $4,000. The exemption for 2016 is $4,050, though the actual tax benefit depends on the taxpayer's marginal tax rate. The personal exemption amount is adjusted each year for inflation.
The exemption is composed of personal exemptions for the individual taxpayer and, as appropriate, his or her family and dependents, as provided in Internal Revenue Code at . The income tax liability is calculated by applying the appropriate tax rate to the taxable income .
Usage examples of "personal exemption".
To the prayer of the ancient Caesars, the people or the senate had sometimes granted a personal exemption from the obligation and penalty of particular statutes.