personal exemption

personal exemption definition - finance
A fixed amount of money ($3,000 per person in 2003) that can be deducted from income when calculating the amount of personal income tax owed. A personal exemption is allowed for each person, dependent, and spouse claimed on the 1040 form.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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