topic What is federal deduction and exemption in Deductions & credits

What is federal deduction and exemption

jromero711 — Sat, 01 Jun 2019 04:53:49 GMT

when filling out my tax return using turbotax online, i d...

fanchyna — Sat, 01 Jun 2019 04:53:51 GMT

when filling out my tax return using turbotax online, i do not see the exemption showing up

The exemption is determined by the number of dependents l...

MiriamF — Sat, 01 Jun 2019 04:53:53 GMT

The exemption is determined by the number of dependents listed on your tax return, and your spouse, if you are married.

The personal exemption is $4,050 for each person listed on your tax return. If you are filing Form 1040EZ, it won't be listed on a separate line. Instead, it will be included with the standard deduction on line 5. If you are single, the standard deduction is $6,300 and the personal exemption is $4,050, for a total of $10,350. If you are married, the totals are twice as much.

The amount of the personal exemption(s) are listed separately on form 1040 and 1040A.

An exemption is an amount of money you deduct from your i...

MiriamF — Sat, 01 Jun 2019 04:53:55 GMT

An exemption is an amount of money you deduct from your income based upon the number of people on your tax return. It is adjusted every year for inflation. In 2016, the personal exemption is $4,050.

A deduction is based upon money you had to spend for items that the IRS considers to be deductible, or tax-favored. There are two categories:

A standard deduction is a fixed amount you get to subtract from your income that anyone with your filing status is allowed to use. A deduction is independent of the number of people in your family or the amount of income you earn (unless you earn a lot of money, in which case you won't get a standard deduction). For instance, if you are filing single, your standard deduction is $6,300. Standard deductions are also adjusted for inflation.
Itemized deductions are amounts you can subtract from your income based upon your expenses for certain tax-favored categories. They include home mortgage interest, taxes you have paid to state and local governments, investment expenses, job-related expenses, medical expenses, donations to charity, losses to fire, flood, or other catastrophe, and some other expenses.

Standard deduction tables can be found in this IRS publication.