Income Tax Exemptions
What are income tax exemptions?
Income tax exemptions reduce your taxable income. You may be able to take a tax exemption
How many types of federal income tax exemptions are there?
There are two types of income tax exemptions:
Exemptions for dependents
What are the differences between each type of tax exemptions?
The amount of each type of tax exemption is the same. However, different rules apply to each
type of tax exemptions. The amount of tax exemption changes each year according to the IRS. In 2007, the income tax
exemption amount is $3,400. This amount is used in the tax form 1040 and is multiplied by the number of tax
exemptions allowed. The number of income tax exemptions allowed is figured out under the "Exemptions" section of
the form 1040.
Do I need the social security number of the person I claim the exemption?
Every person used as an exemption must have a social security number or other valid taxpayer
identification number such as an ITIN (Individual Tax Identification Number). See the income tax exemption section
of the 1040 tax form.