Which of the following reduces taxable income?

Name: Which of the following reduces taxable income?
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Question

Quizplus · Accepted Answer

Both deductions and exemptions reduce taxable income. Deductions are expenses that are subtracted from adjusted gross income (AGI) to determine taxable income. Exemptions are a set amount that is subtracted from taxable income for each person claimed on the tax return, such as the taxpayer, spouse, and dependents. By reducing taxable income, deductions and exemptions can lower the amount of tax owed.

Which of the Following Reduces Taxable Income