taxable income :)
taxable income :)
Gross Income - Above the Line Deductions = Adjusted Gross Income - (Deductions +Exemptions)= Taxable Income
exemptions
$22,500
taxable income :)
taxable income :)
Adjusted gross income is calculated before the standard deduction is applied. The standard deduction is then subtracted from the adjusted gross income to determine the taxable income.
The difference between deduction for AGI and deduction from AGI is that deduction for AGI reduces your total income before calculating your adjusted gross income, while deduction from AGI reduces your adjusted gross income after it has been calculated.
Voluntar income deduction is money taken from your gross pay that you have control over.
Gross Income - Above the Line Deductions = Adjusted Gross Income - (Deductions +Exemptions)= Taxable Income
Gross Income - Above the Line Deductions = Adjusted Gross Income - (Deductions +Exemptions)= Taxable Income
exemptions
$22,500
For Federal income tax purposes, taxable income is the portion of a taxpayer's gross income on which his regular income tax liability (before payments and credits) for the year is based. Income from any given source is taxable, unless the Code specifically says it isn't taxable. Calculation: Taxable income starts with gross income, which according to the US Internal Revenue Code, is all income from whatever source derived. Gross income is then reduced by certain adjustments allowed by the IRS (e.g. for student loan interest, alimony paid, and 10 or so other specific items) to get adjusted gross income. Adjusted gross income is then reduced by exemptions (both personal and for any dependents) and itemized deductions (or the standard deduction) to arrive at taxable income.
http://wiki.answers.com/Q/What_is_Deduction_from_gross_total_income"
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