- Taxable income for an individual is defined as

A) AGI reduced by itemized deductions and tax credits.

B) AGI reduced by the greater of the standard deduction or itemized deductions.

C) gross income reduced by itemized deductions.

D) AGI reduced by tax credits.

- All of the following items are deductions for adjusted gross income except

A) charitable contributions made.

B) state and local income taxes.

C) trade or business expenses.

D) rent and royalty expenses.

- A single taxpayer provided the following information for 2018:

Salary	$75,000
Interest on local government bonds (qualifies as a tax exclusion)	5,000
Allowable itemized deductions	14,000

What is taxable income?

A) $71,000

B) $61,000

C) $80,000

D) $67,000

- In 2018, the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 60 years old is

A) $27,200.

B) $26,600.

C) $24,000.

D) $25,300.

- Diana is claimed as a dependent by her parents. She had a part-time job during 2018 and earned $5,000 during the year, in addition to $750 of interest income. What is her standard deduction?

A) $1,050

B) $4,900

C) $5,350

D) $12,000