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.

$\backslash$table$[[$Term$,$Answer,Description$],[$Adjustments$,$grad,$\backslash$table$[[$A$.$ Deductions such as employee, personal retirement, higher education, and support$],[$expenses are included in this category.$]]],[$Adjusted gross income,grad,B$.$ These are charitable contributions.$],[$Deductions$,$grad,C$.$ This is adjusted annually for changes in cost of living.$],[$Standard deduction,grad,D$.$ This is used to calculate limits for certain itemized deductions.$],[$Itemized deduction,grad,E$.$ This term equals gross income less adjustments.$],[$Exemption$,$grad,F$.$ This figure is based on tax bracket, $5\%$ to $15\%$ tax rate if held over $12$ months.$],[$Itemized deduction example,grad,G$.$ This term refers to allowable expenses that are deducted from AGI.$],[$Capital gains tax categories,grad,H$.$ This can be claimed if taxpayer provides more than half their support.$],[$Steps to AGI,grad,I. This is adjusted gross income less deductions and exemptions.$],[$Steps to taxable income,grad,J$.$ Many of these are based on a percentage of AGI.$]]$