How to Figure Out Tax Exemptions
- 1). Add one exemption for yourself.
- 2). Add another exemption if you are married and filing jointly.
- 3). Add one for each of these that applies to you or your spouse: being blind or at least 65. If you have a spouse, you can have as many as four extra exemptions under this status.
- 4). Add one for each qualifying child or qualifying relative that you have. In general, if a person is related to you and lives with you half the year and you support them, that person is your dependent. Check the official tests (see Resources section) for each to see whether the person is a qualifying child or relative.
- 5). Total all of your exemptions, and multiply the total exemptions by the year's exemption amount to determine your total exemption from taxable income. For example, in 2010 the exemption rate was $3,650. So a person filing jointly with spouse and no dependents would multiply two exemptions by $3,650 to calculate the total exemption for the couple as $7,300.
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