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  Personal and Dependency Exemptions
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Definitions

After completing the Label and Filing Status sections of the tax return, the next section to complete is Exemptions. Taxpayers are often concerned about how to determine the correct number of exemptions to claim.

An exemption is a dollar amount that can be deducted from an individual's total income, thereby reducing the taxable income.

Exemptions section of Form 1040 with overlaid text reading, 'How many should I claim?'
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