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Latest revision as of 06:52, 13 May 2026

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A personal exemption reduces your taxable income so you find yourself paying lower taxes. You could be even luckier if the exemption brings you to a lower income tax bracket. For the year 2010 it is $3650 per person, same in principle as last year's amount. In 2008, the amount was $3,500. It is indexed yearly for inflation.

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People hate paying income tax. Tax avoidance strategies are entirely legal and should be taken advantage of. Tax evasion, however, isn't. Make sure you know where the fine line is.

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