What is the difference between a personal exemption and a dependency exemption? Are all taxpayers allowed a personal exemption? Solution the effect of this provision is allowed to only 1exemption per individual. if there is a tax payment, then total number of exemptions are equal to total US populationExplanationpersonaldependencyApplicabilityapplies to all tax payers (never greater than twoapplies to those individuals who qualifies taxpayer dependententitlementnot all taxpayers entitled to personal exemptiondependent of another not allowed to claim personal exemption.