A- Fill in blanks and choose the correct answer from the parentheses: Steps to determine tax -Eight basic steps are used in calculating federal income taxes: 1- Determine your total income 2. Determine and report your income after subtracting exclusions (net, adjusted gross, taxable, gross) 3. Subtract adjustments to income. 4. Substract either the..the amount of tax status or your itemize deductions. (adjusted gross income, personal exemptions, IRSs standard deduction, adjustments to income) 5. Subtract the value of personal .(deductions, exemptions, tax credits, standard deduction) 6. Determine your preliminary tax liability. 7. Subtract the for which you qualify. (personal exemptions, itemized deductions, tax credits, adjustments to income) 8. Calculate the balance due the IRS or the amount of your return. B- Select which term describes each of the following items or parts of the tax return.(please choose the correct answer from the parentheses) Item Term 1- Carpool money received (Tax-exempt income, Personal exemption, tax credit, deduction) 2- Capital gains (part of total income, part of adjustments to gross income included in tax credits, include in deductions 3- Contributions to qualified personal retirements account (IRAs) (Adjustments to gr gross income, included in tax credits, personal exemptions, Included in tax deductions) 4- An amount that changes if you are over 65 years of age (standard deduction, itemized deductions, tax credits, adjustments to gross income) 5- State and local taxes( Included in itemized deductions, included in personal exemptions, included in tax credits, used to calculate adjusted gross income) 6- An amount based on the number of people a taxpayer supports(personal emptions, itemized deductions, standard deductions, adjusted gross income)