select the correct answer from each drop - down menu. joshua started his own lawn care business. he donates…

select the correct answer from each drop - down menu. joshua started his own lawn care business. he donates 10% of his income to a local charity, which is recognized by the irs as a qualified charitable organization. joshua can claim expenses from his business and charitable donations as tax deductions, and they will reduce the amount of taxable income, amount of tax owed. reset next

select the correct answer from each drop - down menu. joshua started his own lawn care business. he donates 10% of his income to a local charity, which is recognized by the irs as a qualified charitable organization. joshua can claim expenses from his business and charitable donations as tax deductions, and they will reduce the amount of taxable income, amount of tax owed. reset next

Answer

Answer:

First drop - down: tax deductions Second drop - down: amount of taxable income

Explanation:

Step1: Define tax deductions

Tax deductions are amounts that can be subtracted from a taxpayer's gross income.

Step2: Explain business and charity deductions

Business expenses and charitable donations are types of tax - deductible items.

Step3: Understand the effect

When these are deducted, they reduce the amount of income that is subject to tax (taxable income), not directly the amount of tax owed (although reducing taxable income will ultimately reduce the tax owed).