Editing Personal exemption (section)

== Overview ==
Section 151 of the [[Internal Revenue Code]] was enacted in August 1954, and provided for deductions equal to the "personal exemption" amount in computing taxable income. The exemption was intended to insulate from taxation the minimal amount of income someone would need receive to live at a [[subsistence level]] (i.e., enough income for food, clothes, shelter, etc.).{{Citation needed|date=May 2018}} In addition to personal exemptions, taxpayers may claim other [[Tax deduction|deduction]]s that further reduce the level of income subject to taxation.

Generally speaking, for tax years prior to 2018, a personal exemption can be claimed by the taxpayer and qualifying dependents. A personal exemption may also be claimed for a spouse if (1) the couple files separately, (2) the spouse has no [[gross income]], and (3) the spouse is not the dependent of another, §151(b). For taxpayers filing a joint return with a spouse, the Treasury Regulations allow two personal exemptions as well.<ref>26 CFR §1.151-1(b).</ref>

If a taxpayer could be claimed as a dependent by another taxpayer (regardless of whether anyone actually claims them), he or she cannot claim a personal exemption for himself or herself.

In computing taxable income, taxpayers may claim all personal exemptions for which they are eligible under §151, and deduct that amount from the [[adjusted gross income]] (AGI).