3
AssignmentMultiple Select

Tax Returns

Question 3 • FL-2102373-Personal Finance and Money Management Honors

What is subtracted from the adjusted gross income to obtain the taxable income? Select two that apply.AdjustmentsDeductionsCommissionsExemptionsTips and wages

Answer
A
Adjustments
B
Deductions
C
Commissions
D
Exemptions
E
Tips and wages

Explanation

Taxable income is calculated by subtracting deductions and exemptions from adjusted gross income. Adjustments are used earlier to calculate adjusted gross income from gross income, while commissions and tips and wages are types of income.

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