Tax Relief: Personal Exemptions

Personal Exemptions can offer tax relief in the form of a reduction in your declared taxable income. The exemptions include yourself, if you are not considered a dependent on another persons’ tax return; your spouse, if you file a joint tax return; and, children, provided they are under nineteen years of age or twenty-four in the case of a full-time student; and, any other relative. The relative does not have to live with you; but, you do have to prove that you contribute more than 50% towards their support.

Tax Relief in the form of a spouse exemption can be claimed if your spouse is not claimed as another persons’ dependent, for which they are filing an exemption, she/he has no gross income; and, he/she are not filing a return.


One personal exemption may be filed for each person you claim as a dependent, even if that dependent files their own tax return. This allows some tax relief. Each dependent claimed as a personal exemption must meet the following three tests:
• Dependent Taxpayer Test
• Joint Return Test
• Citizen or Resident Test

If you are a non-resident alien, you may, normally, only obtain tax relief in these circumstances by claiming an exemption for yourself. You may not claim personal exemptions for a spouse or dependents. This rule does not apply to residents of Mexico, Canada and certain Indian and Korean residents; and, also, has no bearing on non-resident aliens who are married to US citizens.

As your gross income exceeds certain amounts, the personal exemption rate is modified; but, it does not drop below $1,100 per exemption.

By: N.F.Centeno

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