Question

Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income (TI).

A. True
B. False

Answer 1

Under the Federal income tax formula for individuals, AGI precedes taxable income.

Step-by-step explanation:

The statement is True.

Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income (TI).

The formula to calculate taxable income is:

1. Taxable Income = Adjusted Gross Income - (Deductions + Exemptions)

Therefore, AGI is calculated first and then used to determine the taxable income.