Jan 27 2012

The Personal Exemption and How It Effects You

Filing taxes is never fun, but many people look forward to a refund at the end of the year. However, this refund may be smaller than it should be if the right personal exemption s are not taken. Fortunately, there are plenty of resources to help you navigate the tax code and use every personal exemption for which you qualify.

Many people do not even fully understand what a personal exemption is. Essentially, it refers to money that can be deducted from your adjusted gross income, which is the amount of money you earned during that tax year. Personal exemptions can fall under a variety of categories, and may vary depending on whether you choose to itemize your deductions or take the standard deduction. Itemizing deductions can be time consuming and does require proper documentation, but often it will get you a larger refund than simply claiming the standard deduction. However, it is best to think carefully about which to choose before you file.

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