The Income Tax Formula for Individual Taxpayers Is Unique in That

question 5

Multiple Choice

The income tax formula for individual taxpayers is unique in that deductions are broken into classes.
I.This dichotomy of deductions results in an intermediate income number called adjusted gross income (AGI) .
II.One class of deductions is called exclusions from income.
III.One class of deductions is called deductions for adjusted gross income.
IV.Expenses qualifying as deductions for adjusted gross income are not limited by the income of the taxpayer.
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• A)Statements III and IV are correct.
• B)Statements II and III are correct.
• C)Statements I, III and IV are correct.
• D)Only statement IV is correct.
• E)Statements I, II, III, and IV are correct.

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