What is the difference between a personal exemption and a dependency exemption? Are all taxpayers allowed a personal exemption?
Explanation | personal | dependency |
Applicability | applies to all tax payers (never greater than two | applies to those individuals who qualifies taxpayer dependent |
entitlement | not all taxpayers entitled to personal exemption | dependent of another not allowed to claim personal exemption |
the effect of this provision is allowed to only 1exemption per individual. if there is a tax payment, then total number of exemptions are equal to total US population
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