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Check Your Understanding- Question 2 of 4
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To calculate taxable income, what must you subtract from gross income?
A. Living expenses
B. Allowable deductions
○ C. Net income
○ D. Taxes owed



Answer :

GinnyAnswer

Final answer:

Taxable income is computed by deducting exemptions and deductions from adjusted gross income to establish taxable income subject to tax rates.


Explanation:

Taxable income is calculated by subtracting deductions and exemptions from adjusted gross income. This formula helps determine the amount of income subject to official tax rates. It is crucial in understanding one's tax liability and obligations.


Learn more about Taxable income calculation here:

https://brainly.com/question/11734493


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