The key to reducing one's tax liability is to reduce taxable income rather than gross income.

Question

Quizplus · Accepted Answer

Tax liability is calculated based on taxable income, which is the income after deductions and exemptions. Therefore, reducing taxable income through various deductions or adjustments can help in reducing one's tax liability. Reducing gross income, on the other hand, may not necessarily reduce taxable income and thereby tax liability.

The Key to Reducing One's Tax Liability Is to Reduce