Eight basic steps are used in calculating federal income taxes. 1. Determine your total income. 2. Determine and report your income after subtracting exclusions. 3. Subtract adjustments to income. 4. Subtract either the amount for your tax status or your itemized deductions. 5. Subtract the value of your personal 6. Determine your preliminary tax liability. 7. Subtract the for which you qualify. 8. Calculate the balance due to the IRS or the amount of your refund. Select which term describes each of the following items or parts of the tax return. Item Term Wishdrawals from a 529 plan used for education expenses Capital gains Contributions to qualified personal retirement accounts (IRAS) An amount that is based on your filing status Charitable contributions An amount based on the number of people a taxpayer supports Eight basic steps are used in calculating federal income taxes. 1. Determine your total income. 2. Determine and report your income after subtracting exclusions. 3. Subtract adjustments to income. 4. Subtract either the amount for your tax status or your itemized deductions. 5. Subtract the value of your personal 6. Determine your preliminary tax liability. 7. Subtract the for which you qualify. 8. Calculate the balance due to the IRS or the amount of your refund. Select which term describes each of the following items or parts of the tax return. Item Term Wishdrawals from a 529 plan used for education expenses Capital gains Contributions to qualified personal retirement accounts (IRAS) An amount that is based on your filing status Charitable contributions An amount based on the number of people a taxpayer supports