exemption

Exemption is an immunity , exception , or freedom from the liability , duty , or other requirements, such as exemptions from taxation or execution for certain property, or exemptions from military conscription.

In particular, the exemption can refer to a privilege allowing a judgment debtor to retain certain property from being taken in execution, bankruptcy , or other procedures. Also termed debtor's exemption.

In tax law, it refers to the amount allowed as a deduction from gross income for the purpose of determining taxable income .

[Last reviewed in August of 2021 by the Wex Definitions Team ]

Wex

• CIVICS
• taxation
• LIFE EVENTS
• financial events
• bankruptcy
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