Question

Which option best defines the meaning of taxable income?

a) All the income you receive, from all sources, over the course of the year.

b) The amount of your income, after it has been reduced by exemptions, deductions, and credits, that is used to calculate the tax you owe.

c) The total amount of your paycheck after taxes and other items were deducted.

d) The total amount you earned before taxes and other items were deducted from your paycheck.

Answer 1

Taxable income is the amount of income you need to pay taxes on, after exemptions, deductions, and credits are taken into account.

Step-by-step explanation:

Taxable income refers to the amount of your income that is used to calculate the tax you owe, after it has been reduced by exemptions, deductions, and credits. It is the income you are required to pay taxes on. For example, if your adjusted gross income is $50,000 and you have $10,000 in deductions and exemptions, your taxable income would be $40,000.

Answer 2

I believe the answer is A