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Question 5.5. (TCO 2) George Washburn had earnings from his salary of
$44,000, interest on savings of $800, a contribution to a traditional
individual retirement account of $2,000, and dividends from mutual
funds of $600. George's adjusted income (AGI) would be
$43,400.
$44,000.
$45,400.
$42,000.
$42,800.
Question 6.6. (TCO 2) _____ can be calculated as a result of various
items being subtracted from gross income, such as individual retirement
account contributions and alimony payments.
Adjusted gross income
Taxable income
Earned income
Passive income
Total exclusions
Question 7.7. (TCO 2) When filing your taxes, a set amount on which no
taxes are paid is called _____.
itemized deductions
withholding
an earned tax credit
the standard deduction
capital gains
Question 8.8. (TCO 2) Taxes owed can be reduced through _____.
the standard deduction
a tax credit
an itemized deduction
an exclusion
an exemption
Question 9.9. (TCO 2) _____ would qualify a person for an exemption
when computing taxable income.