match the word with the definition:
(A)Personal exemptions
(B)Adjustments
(C)Tax credits
(D)Itemized deductions
(1) The amount you may be able to deduct from your adjusted gross income based on how you spent your money during the year.
(2) A set amount subracted from your adjusted gross income for you and each member of your family that is not dependent on filing status.
(3) An amount subtracted or added to your gross income
(4) an amount subtracted directly off of your Total Tax owed.
I think
A = 2
B= 3
C= 4
D = 1
Is this correct... Ive never done tax defintions
I agree with all you answers.
Alexis bought x boxes of cereal for $3 each, including tax, and paid with a $20 bill. Which expression represents the total amount of change she should receive?
Your attempt at matching the words with their definitions is close, but not entirely correct. Let me explain each term and its corresponding definition:
(A) Personal exemptions: This term refers to a set amount subtracted from your adjusted gross income for you and each member of your family that is not dependent on filing status. This means that it is a fixed deduction amount for each individual.
(B) Adjustments: The term "adjustments" refers to an amount subtracted or added to your gross income. These adjustments can either increase or decrease your taxable income, allowing you to account for specific expenses or circumstances.
(C) Tax credits: Tax credits are calculated amounts that are subtracted directly from your total tax owed. They help to reduce your tax liability on a dollar-for-dollar basis. There are various types of tax credits available, such as child tax credits, education credits, or energy credits.
(D) Itemized deductions: This term relates to the amount you may be able to deduct from your adjusted gross income based on how you spent your money during the year. It allows you to list and deduct specific expenses, such as medical expenses, mortgage interest, charitable donations, and state and local taxes paid.
So, here is the correct matching:
(A) Personal exemptions: 2) A set amount subtracted from your adjusted gross income for you and each member of your family that is not dependent on filing status.
(B) Adjustments: 3) An amount subtracted or added to your gross income.
(C) Tax credits: 4) An amount subtracted directly off of your total tax owed.
(D) Itemized deductions: 1) The amount you may be able to deduct from your adjusted gross income based on how you spent your money during the year.
Understanding tax definitions can be complex, but taking the time to familiarize yourself with them can be beneficial for proper tax planning and compliance.