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Differences Between the Components of Taxable Income

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What are the differences between the following components of taxable income? Provide at least one example of each.

o Deductions for AGI and deductions from AGI
o Gross income and AGI
o AGI and taxable income
o Tax deduction and tax credit
o Personal exemption and dependency exemption

385 words plus form to give a visual to response.

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Solution Summary

This solution discusses the language "from" and "for" in the context of the subtotals in computing taxes. The solution provides examples and a tax form showing all the deductions "from" and "for" for the student. 292 words.

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Basically, these items all indicate different steps in the process of figuring the tax liability. Here are the specifics asked for....

What are the differences between -- Deductions for AGI and deductions from AGI:

Deduction FOR AGI means you deduct it from income to get to AGI (like half of self-employment tax, Line 27).
Deductions FROM AGI means you deduct it from AGI to get to taxable income (like itemized deductions, ...

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