18 select the correct answer. which phrase best describes taxable income? a. all income and wages received…

18 select the correct answer. which phrase best describes taxable income? a. all income and wages received from working b. all income received c. adjusted gross income minus any allowable tax credits d. adjusted gross income minus any allowable tax deductions e. income from sources other than wages, such as interest and dividends reset next

18 select the correct answer. which phrase best describes taxable income? a. all income and wages received from working b. all income received c. adjusted gross income minus any allowable tax credits d. adjusted gross income minus any allowable tax deductions e. income from sources other than wages, such as interest and dividends reset next

Answer

Brief Explanations:

Taxable income is calculated by taking the adjusted gross income and subtracting any allowable tax - deductions. Tax credits are used to reduce the tax liability after taxable income is calculated. All income and wages from working (A) and all income received (B) are not the correct definitions as there are deductions that can reduce the amount subject to tax. Income from non - wage sources (E) is part of adjusted gross income before deductions are applied.

Answer:

D. adjusted gross income minus any allowable tax deductions