Exemptions?

Question

What is the "correct" definition of an exemption?

I just got out of the military, in which expemtions were easier to determine, how would I be SURE that I calim the correct exemptions?

Thanks in advance!!!!

I am confused really, on my check stub it states exemptions/allowances and the number is 3. For some reason, I am thinking this is incorrect.

Answer 1

Mark is correct as far as he goes. The worksheet will also help you determine the number of exemptions you are able to claim if you itemize deductions on your tax return.
The exemptions claimed help determine the amount of federal and state income taxes that will be withheld from your paycheck each period.

Answer 2

An Exemption is an amount of income that is Exempt from tax.

You get one exemption for your self and one for your spouse. These are called personal exemptions.

You also get one for each of your dependents. These are called dependent exemptions.

NOTE: your spouse is never a dependent.

There are worksheets available to determine who you can claim as a dependent.

To Waggy_33:
Exemptions are what you claim on your tax return, Allowances are what you claim on a W-4. You can claim any number of allowances depending your your income not subject to withholding, but you can only claim one exemption for each dependent plus one for yourself and spouse if married.

In response to your additional details, the Exemptions/Allowances you are referring to is probably the number of allowances you are claiming on your W-4.

Answer 3

An exemption is no different if you are in the military or not. You get one for yourself, one for your spouse if married and filing a joint return, and one for each person whom you can claim as a dependent.