Which of the following is not a way of reducing taxable income?

Question

Quizplus · Accepted Answer

Reducing deductions would actually increase taxable income, as deductions lower taxable income by reducing the amount of income subject to taxes. The other options would all lower taxable income. Deferring income means delaying receipt of income until a later tax year, which defers the taxes owed on that income. Using tax-exempt income means earning income that is not subject to taxes, such as municipal bond interest. Investing in tax shelters involves using investment vehicles that are designed to lower taxable income, such as certain types of retirement accounts or real estate investments.

Which of the Following Is Not a Way of Reducing