Question

What are some general rules when arriving at personal exemption?

A) Personal exemptions depend solely on income level.
B) Personal exemptions are determined by the number of dependents and filing status.
C) Personal exemptions are fixed for everyone, regardless of individual circumstances.
D) Personal exemptions are influenced only by the taxpayer's age.

Answer 1

Personal exemptions for income tax are determined by the number of dependents and filing status, and vary based on individual circumstances.

Step-by-step explanation:

When arriving at personal exemptions for income tax, the rules are determined by the number of dependents and filing status. This means that the more dependents a taxpayer has, the higher their personal exemption will be.

For example, a single person with no dependents will have a lower personal exemption compared to a married couple with children.

These exemptions are not fixed for everyone, but instead vary based on individual circumstances and the taxpayer's specific filing status and number of dependents.