Question

Match the terms relating to the basic terminology and concepts of personal taxation on the left with descriptions of the terms on the right. Read each description and type the letter of description in the Answer column next to the correct term.

4. Vocabulary - Terminology for components of taxable income Aa Aa Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term These are not necessarily complete definitions, but there is only one possible answer for each term Term Answer Description Adiustments A. This is mortgage interest expense. Adjusted gross B. This is adjusted annually for changes in cost of living income Deductions C. This is a claim made by the taxpayer for each person supported by the taxpayer's income Reduce AGI by the standard deduction and allowable exemptions This term equals gross income less adjustments. This term refers to allowable expenses that are deducted from AGI. Examples of this term include charitable deductions, state and local taxes, and moving expenses. Standard deduction Itemized deductio Exemption D. E. F. G. example Capital gains tax categories Steps to AGI Steps to taxable ncome H. This term refers to the result after deducting expenses like alimony paid and self-employment taxes, to name a few. I. This is taxed as ordinary income if held less than 12 months. Taken against gross income, they result in AGI

Answer 1

Adjustments - J

Adjusted Gross Income - H

Deductions - F

Standard Deduction - B

Itemized Deduction - G

Exemption - C

Itemized Deduction Example - A

Capital Gains Tax Category - I

Steps to AGI - E

Steps to taxable Income - D