Taxable income is defined as the amount of income that is subject to income tax. It is calculated by deducting eligible deductions and exemptions from total income. Therefore, option A, which defines taxable income as total income less deductions and exemptions, is the correct choice.

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"Taxable Income" Is

Question 85

Multiple Choice

"Taxable income" is

A) total income less deductions and exemptions.
B) earned income less property income.
C) all income other than wages and salaries.
D) wage and salary income only.

Correct Answer: