ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Taxable income is a layman’s term that refers to your adjusted gross income (AGI) less any itemized deductions you’re entitled to claim or your standard deduction.

Detailed explanation-2: -Taxable Income – This is your AGI minus either the standard deduction or total of itemized deductions-whichever is greater and the qualified business income deduction if applicable. Your taxable income is what you’ll use to determine your tax bracket.

Detailed explanation-3: -A parent’s adjusted taxable income is the total of the following components: taxable income for the last relevant year of income (including overseas income if the parent is a resident of a reciprocating jurisdiction) reportable fringe benefits total for that year of income. target foreign income for that year of income.

Detailed explanation-4: -Your total (or “gross”) income for the tax year, minus certain adjustments you’re allowed to take. Adjustments include deductions for conventional IRA contributions, student loan interest, and more. Adjusted gross income appears on IRS Form 1040, line 11.