Federal taxable income is used as the starting point in computing the state's income tax base, but numerous state adjustments or modifications generally are required to:

Question

Quizplus · Accepted Answer

Federal taxable income is used as the starting point, but states may have different tax statutes or constitutional provisions that require adjustments or modifications to remove income that cannot be taxed. Therefore, both options (a) and (b) are necessary. Option (c) is not relevant in this context.

Federal Taxable Income Is Used as the Starting Point in Computing