If you’re new to filing an income tax return form you may not fully understand what an exemption is. When you have your Adjusted Gross Income calculated, you are allowed to subtract a certain amount of money for certain things. An exemption will reduce the amount of money on which you are taxed.
Personal Income Tax Exemption
Alright now we have defined an exemption, the next step is finding out what exemptions we qualify to claim. It will depend on whether youre married or single and if you have a dependent or do not have a dependent. Families usually save more money than single people do but, it all evens out in the end. At least singles arent buying diapers, right?
Tax Deductions for Personal Income Tax Exemptions
I cannot stress enough how important deductions are. Do you have any idea how many millions stay with the Federal government because people do not know they qualify for the deduction? Let me tell you, millions of dollars that could have been in the taxpayers pockets are not. Do not miss out on the deductions you deserve to claim!
Qualifying Children for Tax Deductions
If you have a qualifying child you can deduct $3,500 from your Adjusted Gross Income. Keep in mind that is if you have an average income. If you are in the higher income bracket then the amount is reduced. Not to worry though, you cant lose more than one third of the amount of the exemption total.
Medical Expenses for Tax Deductions
If you take the standard deduction then you cannot take the medical expenses deductions. This is only acceptable if you itemize your deductions. The list is very long when it comes to medical expenses you can deduct. I would visit the IRS web site for the huge list.
You can also deduct medical expenses for someone else. The explanations go beyond the scope of this article but, you can find more information by using an online tax preparation software program. Turbo Tax Online will scan your return and let you know if you can deduct an expense or not. You would be surprised at how many deductions they will find for you.
Education Tax Credits
This is also a very large category of information concerning personal income tax exemptions. College tuition and fees can be deducted from your Adjusted Gross Income. You can look into the Hope tax credit and the Lifetime Learning credit. You cant claim everything all at once so chose carefully to see where the advantage is or better yet, have the software do it for you.
Learn More About Personal Income Tax Exemptions
If youre looking for more information about personal income tax exemptions, you should visit TurboTax Online. Their software will scour your return and search for over 350 possible tax deductions you may have missed in the past.
Watch Video on Personal Income Tax Exemption
They also guarantee the biggest refund possible. If you get a larger refund or tax due from another tax preparation method, they will refund the applicable TurboTax federal and/or state purchase price paid. Get Started Today!
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