exemption

noun | \ ig-ˈzemp-shən \ | ex·emp·tion

1. : the act of exempting or state of being exempt

   a : an amount of income exempted from taxation that may be deducted from adjusted gross income under the tax laws — see also Internal Revenue Code — compare deduction, exclusion, tax credit

   — dependency exemption
   : an exemption that is allowed for each dependent who qualifies under the tax laws (as sections 151 and 152 of the Internal Revenue Code) Note: Under the federal income tax laws, the dependency exemption is allowed for each dependent whose gross income is less than the exemption or who is a child of the taxpayer and is under 19 or a student under 24.

   — personal exemption
   : an exemption that is allowed for the taxpayer or for the taxpayer and spouse if filing a joint return

   b : the right created by federal and state laws to exempt specified types of property from a bankruptcy estate precludes the debtor from using the exemptions in the Bankruptcy Code; also : a type of property that may be claimed as exempt — see also Bankruptcy Code : a type of property that may be claimed as exempt — see also Bankruptcy Code

   c : homestead exemption