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.© BrainMass Inc. brainmass.com June 21, 2018, 6:11 pm ad1c9bdddf
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, ...
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.