Regarding the tax formula and its relationship to Form 1040,which,if any,of the following statements is correct?
A)Most exclusions from gross income are reported on page 2 of Form 1040.
B)An "above the line deduction" refers to a deduction for AGI.
C)A "page 1 deduction" refers to a deduction from AGI.
D)The taxable income (TI)amount appears both at the bottom of page 1 and at the top of page 2 of Form 1040.
E)None of the above.

Question

Quizplus · Accepted Answer

An "above the line deduction" refers to a deduction for AGI because it reduces the taxpayer's gross income to arrive at the adjusted gross income (AGI). Most exclusions from gross income are reported on Form 1040 on page 1, while a "page 1 deduction" refers to a deduction from AGI, which reduces the taxpayer's AGI to arrive at the taxable income (TI). The TI amount appears only at the bottom of page 2 of Form 1040.

Regarding the Tax Formula and Its Relationship to Form 1040,which,if