a. The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain. A. Gross income is income from taxable sources. Form 1040 combines the results of computations made on several separate schedules. For example, the gross income is reported on Schedule E where gross income is reduced by the itemized deduction. Only the net income or loss computed on Schedule E is carried to Form 1040. This is procedurally convenient but means gross income is not shown on Form 1040. B. Gross income is income from taxable sources. Form 1040 combines the results of computations made on several separate schedules. For example, gross income is reported on Schedule A where gross income is reduced by the itemized deduction. Only the net income or loss computed on Schedule A is carried to Schedule 1 (and from there to Form 1040). This is procedurally convenient but means gross income is not shown on Form 1040. C. Gross income is income from taxable sources. Form 1040 combines the results of computations made on several separate schedules. For example, income from a sole proprietorship is reported on Schedule C, where gross income from the business is