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Remember, an individual exemption of $3650 isn't deducted on tax but on your taxable income. Say for example your filing status is 'married filing jointly' with original taxable income of $100,000. This causes you to be under the marginal tax rate of 25%. So the money you'll save on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For every one in a spouse, which is to be multiplied by two a person save $1825.

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Filing Requirements. Reporting income is not a need to have everyone but varies your amount and kind of profitability. Check before filing to the business you meet the criteria for a filing exemptions.

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