1. Freedom from a duty, liability, or other requirement; an exception. See IMMUNITY; EXCEPTION(2).
2. A privilege given to a judgment debtor by law, allowing the debtor to retain certain property without liability. [Cases: Exemptions 1; Homestead 1.]
3. Tax. An amount allowed as a deduction from adjusted gross income, used to determine taxable income. Cf. DEDUCTION(2). [Cases: Internal Revenue 3294; Taxation 1031.1, 1048. C.J.S. Internal Revenue §§ 330, 335; Taxation §§ 1736–1739.]
dependency exemption. A tax exemption granted to an individual taxpayer for each dependent whose gross income is less than the exemption amount and for each child who is younger than 19 or, if a student, younger than 24. [Cases: Internal Revenue 3294; Taxation 1031.1, 1048. C.J.S. Internal Revenue §§ 330, 335; Taxation §§ 1736–1739.]
personal exemption. An amount allowed as a deduction from an individual taxpayer’s adjusted gross income. [Cases: Internal Revenue 3295; Taxation 1031.1, 1048. C.J.S. Taxation §§ 1736–1739.]
