Taxpayers Have the Choice of Claiming Either Deductions for AGI

question 69

True/False

Taxpayers have the choice of claiming either deductions for AGI or the standard deduction.

---

Definitions:

Tax Collections

The process of gathering taxes by government authorities from individuals and businesses.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by governmental authorities.

Tax-Exempt

Not subject to tax by federal or local governments, often applied to charitable organizations or certain financial earnings.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of additional income that is paid in taxes.