Asked by Janelle Lightbourne on May 12, 2024
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Taxable income (TI)is computed after subtracting from adjusted gross income (AGI),the standard deduction or itemized deductions and personal and dependency exemptions.
Taxable Income (TI)
This term refers to the gross income of an individual or corporation, less any allowable tax deductions or exemptions, which is subject to taxation by governmental authorities.
Adjusted Gross Income (AGI)
A measure of income calculated from your gross income and used to determine how much of your income is taxable after certain deductions are applied.
Personal and Dependency Exemptions
Tax deductions previously allowed for the taxpayer, their spouse, and eligible dependents, though suspended for federal taxes from 2018 through 2025.
- Understand how taxable income is calculated and the impact of filing status, deductions, and exemptions on this calculation.
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Learning Objectives
- Understand how taxable income is calculated and the impact of filing status, deductions, and exemptions on this calculation.
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