Question

al 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. B. This can be either standard or itemized. C. Many of these are based on a percentage of AGI employment taxes, to name a few

Answer 1

Adjustments	D. Deductions such as employee, personal retirements, higher educations, and support expenses are included in this category
Adjusted Gross income	A. This term includes all income less certain allowable adjustments.
Deductions	B. This can either be standard or itemized.
Standard Deductions	J. This s adjusted annually for changes in cost of living.
Itemized Deductions	C. Many of these are based on a percentage of AGI.
Exemption	H. This is claim made by the taxpayer for each person supported by the taxpayer’s income.
Itemized Deduction example	I. This is mortgage interest expense.
Capital Gain Tax Categories	E. This is taxed as ordinary income if held less than 12 months.
Steps to AGI	G. This term refers to the result after deducting expenses like alimony paid and self-employment taxes, to name a few.
Steps to Taxable Income	F. Reduce AGI by the standard deduction and allowable exemptions.