In this tax tutorial, you will learn about exemptions.

There are two types of exemptions:

• personal exemptions
• dependency exemptions

Each exemption reduces the income that is subject to tax by the exemption amount.

• For 2013, the exemption amount was $3,900.
• In 2014, the exemption amount is $3,950.

A taxpayer cannot claim an exemption for a person who can be claimed as a dependent on another tax return.