Beginning in 2018, Taxpayers Are Allowed to Deduct Dependency Exemptions

question 120

True/False

Beginning in 2018, taxpayers are allowed to deduct dependency exemptions but they are not allowed to deduct personal exemptions.

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Definitions:

Cash On Hand

Funds that a company or individual has available in cash form, not invested or deposited in financial institutions.

Zero-balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in amounts only large enough to cover checks presented.

Surplus Cash

Excess cash that a company holds over and above the minimum operational funds required, often used for investment, dividends, or buybacks.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, wherein the payments are sent directly to a post office box, thereby speeding up collection times.