How to Calculate Exempt Value

A calculator can be useful when calculating exemptions.

An exemption is an amount of money directly deducted from your taxable income. In 2010, the exemption amount was $3,650 for every dependant person claimed in your household. The federal exemption amount changes annually, so it is important to check the IRS website for the annual updated exemption amount.

Instructions

1. Determine the current exemption amount.

2. Multiply the amount by your number of dependants.

3. Subtract the amount from your taxable income. The amount remaining is the amount of taxable income you are responsible for at the end of the year. Once you know the amount, you can adjust your withholdings to ensure you will not owe any taxes at the end of the year.

References

• IRS: Exemptions