Final answer:
Child support, Social Security benefits, and public assistance are classified as taxable income, which must be reported on tax returns. These are different from tax deductions and credits, which can lower taxable income or tax liability. The correct answer to the question is d) Taxable income.
Step-by-step explanation:
Child support received, Social Security benefits, and public assistance are all examples of taxable income. These forms of income are considered by the Internal Revenue Service (IRS) as part of an individual's gross income and may be subject to federal income tax, depending on specific circumstances and amounts. It is important for individuals who receive these types of income to understand their tax obligations and to include them in their tax filings as appropriate.
Tax deductions and tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are distinct from taxable income. These can reduce the amount of tax that an individual owes and, in some cases, even provide a refund beyond what has been paid. For instance, the CTC provides a credit for each qualifying child, hence reducing the federal tax liability for eligible parents.
The choice between a), b), c), or d) in the question points out common terms associated with taxation. Tax evasion refers to the illegal act of not paying taxes that are due, while deductions and credits are legal ways to minimize tax liabilities. Therefore, items like child support, Social Security, and public assistance benefits are categorized under d) Taxable income.