Question

There are many different forms of tax returns, but no matter which form you use, all tax returns include three main sections. The income section of a tax return reports all sources of income, such as ________, ________, and ________. Retirement savings contributions, student loan interest, and certain business expenses are included in the ________ section. Lastly, to reduce the total amount of taxes owed, claims for expenses such as dependent care are listed in the ________ section.

1) dividends, capital gains, and retirement savings
2) dividends, capital gains, and dependent care
3) dividends, capital gains, and business expenses
4) dividends, capital gains, and student loan interest

Answer 1

All tax returns have three main sections: income, adjustments, and deductions. Income includes dividends, capital gains, and wages. Adjustments and deductions include retirement savings contributions, student loan interest, dependent care, and certain business expenses.

Step-by-step explanation:

The income section of a tax return reports all sources of income such as dividends, capital gains, and wages. Retirement savings contributions, student loan interest, and certain business expenses are included in the adjustments section. Lastly, to reduce the total amount of taxes owed, claims for expenses such as dependent care are listed in the deductions section.