Question

4. Vocabulary - Terminology for components of taxable income Components to Taxable Income Terminology 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 Reduce AGI by the standard deduction and allowable exemptions. Examples of this term include charitable deductions, state and local taxes, and moving expenses. This term refers to the result after deducting expenses like alimony paid and self-employment taxes, to name a few. This term refers to allowable expenses that are deducted from AGI. This is a blanket deduction that includes various deductible expenses normally incurred by taxpayers.

Possible Options:

Adjusted gross income

Adjustments

Capital gains tax categories

Deductions

Exemption

Itemized deduction

Standard Deduction

Steps to AGI

Steps to taxable income

Answer 1

No	Description	Item
1	Reduce AGI by the standard deduction and allowable exemptions	Step to Taxable Income
2	Example of this term include Charitable deduction State and local taxes and moving expenses.	Itemized Deduction
3	This term refers to the result after deducting expenses like alimony paid and self employment taxes to name a few.	Adjusted Gross Income
4	This term refers to alliwable expenses that are deducted from AGI	Deductions
5	This is a blanket deduction that includes various deductible expenses normally incutrred by taxpayers.	Standard Deduction