Question

Match the terms relating to the basic terminology and concepts of personal taxation on the right with the descriptions of the terms on the left. (Note: These are not necessarily complete definitions, but there is only one possible answer for each term.)

Description	Term
This can be either standard or itemized.
This is used to calculate limits for certain itemized deductions.
This is taxed as ordinary income if held less than 12 months.
Deductions such as employee, personal retirement, higher education, and support expenses are included in this category.
This is a claim made by the taxpayer for each person supported by the taxpayer’s income.

Term Option: Adjusted gross income/ Adjustments/ Capital gains tax categories/ Deductions/ Exemption/ Itemized deduction/ Standard deduction/ Steps to AGI/ Steps to taxable income.

Answer 1

1. This can be either standard or itemized. - Deductions

2. This is used to calculate limits for certain itemized deductions. - Adjusted Gross Income

3. This is taxed as ordinary income if held less than 12 months. - Capital Gain Tax Categories

4. Deductions such as employee, personal retirement, higher education, and support expenses are included in this category. - Itemized deduction

5. This is a claim made by the taxpayer for each person supported by the taxpayer’s income. - Exemptions.