Many people are aware that tax exemptions exist but,
unfortunately, don’t really know how to take advantage of them fully or even
which ones apply to them.
This is truly disappointing since knowing which exemptions
to file and then filing them can greatly reduce a person’s taxable income,
thereby reducing his or her income taxes.
Exemption Examples
There are all kinds of personal exemptions available…many of
which are widely underused by the average tax filer.
For example, you can qualify for an exemption if you have at
least one person whom you can claim as a
dependent.
Similarly, you can claim two personal exemptions if you are
a married person filing jointly, plus exemptions for each of your dependents.
And, even when spouses file their taxes separately, one can
often claim the other so long as circumstances allow.
Of course, personal exemption amounts vary based on a
variety of factors, but, right now, the current personal exemption allowance is
a whopping $4,050, which could be helpful for a lot of people.
Filing Personal Exemptions
Given the vast amount of people who don’t take advantage of
the personal exemptions for which they are eligible, you might think that
filing for such exemptions is incredibly difficult. In truth, though, it’s
really not. It’s just that many people are not aware of their exemption options
and/or how to get them.
Typically, you’ll want to use Line 6 of Form 1040 to claim
personal exemptions for yourself, your spouse, or for dependents. You’ll also
need to include your deductible amount on Form 1040 Line 42 or Form 1040A Line
26. Or, if you’re simply filing Form 1040EZ, you’ll only need to record your
exemptions on Line 5.
If that is confusing to you, as it is to many people, don’t
just give up and lose out on these exemptions.
Instead, seek the help and advice of a qualified,
professional accountant who can make sure that you take full advantage of all
of the personal exemptions available to you and that you do so in the best and
most beneficial possible way.