- Exemption is defined as freedom from an obligation, duty or consequence.
When everyone else is required to attend a meeting and you don't have to attend, this is an example of a situation where you have an exemption.
exemption definition by Webster's New World
- an exempting or being exempted; freedom or release from a liability, obligation, etc.; immunity
- the exempting from an individual's taxable income of a specified sum for the taxpayer and each dependent
- the sum specified
- any such dependent
Origin: Middle English exempcioun ; from Old French exemption ; from Classical Latin exemptio
exemption definition by American Heritage Dictionary
- The act or an instance of exempting.
- The state of being exempt; immunity.
- One that is exempted, especially an amount of income that is exempted from taxation.
exemption - Business Definition
- An annual deduction permitted a taxpayer and each dependent for use in computing taxable income. An extra exemption is allowed for being blind or for being 65 years of age or older. The size of the annual exemption is altered each year according to the level of inflation. Also called personal exemption.
- The amount of income that can be subtracted from adjusted gross income when calculating the alternative minimum tax.
- See homestead exemption.
exemption - Investment & Finance Definition
exemption - Legal Definition