What are exemptions?

A tax exemption is like getting a free pass on something you usually have to pay for.

Imagine you're playing a game where everyone has to give 10 marbles to the teacher at the end of the day. But if you're wearing a special hat, you don't have to give any marbles, that's your exemption!

• Exemptions are rules that let certain people or things avoid paying taxes.
• Like how some kids get to skip a test if they did extra homework, it’s a kind of special rule.

Sometimes, the government wants to help people who need it more. For example:

• If you're very old or have a disability, you might not have to pay as much tax.
• Or, like a superhero with a special power, some businesses get to keep more money because they do important work.

Exemptions are just fair breaks in the game of taxes!