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match the letter to the correct term Adjustments A. This is the amount that remains after you subtract your allowable adjustments from your gross income.

match the letter to the correct term

Adjustments

A.

This is the amount that remains after you subtract your allowable adjustments from your gross income.

Adjusted gross income (AGI)

B.

This can be claimed if a taxpayer provides more than half of a persons financial support.

Deductions

C.

Examples of these deductions include employee, personal retirement, higher education, and support expenses, and reduce a taxpayers gross income.

Standard deductions

D.

A charitable contributions is an example.

Itemized deductions

E.

This is a fixed blanket deduction that includes various deductible expenses normally incurred by taxpayers.

Exemptions

F.

Examples of these expenditures include charitable deductions, residential mortgage interest expense, and moving expenses, and are used to reduce a taxpayers AGI.

Example of an itemized deduction

G.

This deduction is created by a taxpayers child and dependent care expenses, the purchase of a qualified electric vehicle, or the payment of foreign taxes or mortgage interest. It results in a dollar-for-dollar reduction in a taxpayers tax obligation.

Capital gain

H.

This term refers to allowable expenses that are deducted from a taxpayers adjusted gross income (AGI).

Tax credit

I.

This objective can be achieved with effective tax planning activities. It is legal and consistent with the intent of Congress.

Tax avoidance

J.

This type of transaction is created when an asset (e.g., a stock, bond, or real estate) is sold for more than its original cost.

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