Taxable Income (Business math)

The ____ Amendment to the US Constitution established the income tax.

• 14th

• 15th

• 16th

• 17th

Which item is NOT considered gross income?

• Commissions

• Tips

• Salaries

• Birthday gifts

By law, employers must send all employees their W-2 by the end of January 31st.

• True

• False

_____ _____ _____ is gross income minus selected government-approved deductions.

(a)  

IRA stands for...

• Individual Retainer Account

• Individual Retirement Account

• Internal Revenue Associates

• Internal Retirement Arrangement

Deduction is an adjustment to income that comes _____ the AGI is determined.

• before

• after

Certain expenses qualify as a deduction and reduce the amount of taxable income is called...

• Adjusted Gross Income

• Subtracted

• Internal Deduction

• Itemized Deduction

_______ _______ is a fixed amount that can be claimed instead of listing individual expenses.

(a)  

Tax credit is an amount of money a tax payer is allowed to subtract from the taxes that are owed

• True

• False

Which is NOT considered a tax credit?

• Dependents

• Car Insurance

• Low Income Earner

• American Opportunity Credit