There are two types of exemptions, personal exemptions and exemptions for dependents. A dependent's exemption is an amount you can claim on your tax return to reduce your taxable income. This can result in a decrease in tax and increase the amount of your refund. You are allowed one exemption for each person you can claim as a dependent. You usually can claim exemptions for yourself, your spouse and each person you can claim as a dependent. You may lose part of the dollar amount of your exemptions if your adjusted gross income is above a certain amount.