AI$/$CT$4-60($LO $4-1)$

Suppose you asked your favorite AI query tool the following question: $"$Is total income on Form $1040$ the same thing as gross income?" The AI tool provided the following response:

Total income and gross income are not exactly the same thing on Form $1040($the individual tax return$),$ although they are related concepts. Total income and gross income refer to different subsets of income on the individual tax return.

Gross Income: Gross income, which is also referred to as gross taxable income or adjusted gross income $($AGI$),$ includes all income from different sources before any deductions. Gross income includes wages, salary, self$-$employment income, rental income, interest income, dividends, capital gains, and other types of income.

Total Income: Total income is a broader term than gross income. Total income includes all income received by an individual during the tax year whether the income is taxable or not. Total income includes gross income that is taxable but it also includes income items that are not taxable such as gifts, inheritances, and certain Social Security benefits. Total income is reported on a specific line on the individual tax return but it is included for informational purposes and may not be directly used to calculate your tax liability.

In summary, gross income is a subgroup of total income. Gross income is an important number for calculating taxable income and thus the tax liability on the individual tax return. Total income includes a wider range of sources of income than gross income, including income items that are not taxed. However, total income is used primarily for informational purposes.

Is the AI response to the question correct? Explain.