Taxable income is based on total income and excludes any deductions due to expenses or the number of dependents.

Question

Quizplus · Accepted Answer

Taxable income is calculated by subtracting allowable deductions and exemptions from total income. Expenses and the number of dependents can directly affect the amount of allowable deductions and exemptions, and thus can affect taxable income. Therefore, the statement is false.

Taxable Income Is Based on Total Income and Excludes Any