Ch 03: Assignment - Preparing Your Taxes Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term, Answer Term Adjustments Adjusted gross income Deductions Standard deduction Description A. This term refers to the result after deducting expenses like alimony pod and self employment taxes, to name a few. B. This figure is based on tax bracket, 5% to 15% tax rate if held over 12 months C. This term refers to allowable expenses that are deducted from AGL D). Examples of this term include charitable deductions, state and local taxes, and moving expenses This is a blanket deduction that includes vanous deductible expenses normally incurred by taxpayers F. This term equal gross income less adjustments. G. Token against gross income, they result in AGE H. Reduce AGT by the standard deduction and allowable exemptions 1. These are charitable contributions 1. This is a choim made by the taxpayer for each person supported by the taxpayer's Itemized deduction Exemption Itemized deduction example Capital gains tax categories Steps to AGI Steps to taxable income income