What is the difference between exemptions and dependents?

Question

dealing with taxes. I am more interested in the exemption part

Answer 1

An exemption subtracts $3300 from your income for each person you have an exemption for. This includes dependents, but also includes yourself (assuming you can't be claimed as a dependent by someone else), and your spouse if filing a joint return.

Answer 2

A dependent is anyone (actual person) you support financially, such as wife and kids. Yes, a spouse is a dependent if they do not work. Exemptions are money off taxes owed. You GET exemptions for each dependent. You also get an exemption for yourself. A few other situations can cause an additional exemption, such as being blind. So if you are blind, you get 2 exemptions, one for yourself and additional money for the disability.

Answer 3

An exemption applies to yourself and spouse. A dependent is anyone you support. Your spouse is never considered a dependent, always an exemption.

There really isn't much of a difference as far as dollars, but there are special tax credits for dependents, such as dependent care tax credit or earned income credit.

There are two types exemptions, those which result in non-refundable and refundable credits. Generally, you can only get back what you put into taxes, but in certain situations where you have exemptions, you can get more money back then you put in.