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