Answered

IDNLearn.com offers a unique blend of expert answers and community-driven knowledge. Get accurate and comprehensive answers from our network of experienced professionals.

The chart shows taxable income.

\begin{tabular}{|l|r|}
\hline
Income & [tex]$\$[/tex] 50,000[tex]$ \\
\hline
Deductions & $[/tex]-\[tex]$ 8,950$[/tex] \\
\hline
Taxable Income & [tex]$\$[/tex] 41,050[tex]$ \\
\hline
Taxes & $[/tex]\[tex]$ 7,090$[/tex] \\
\hline
Tax Credit & [tex]$-\$[/tex] 1,500[tex]$ \\
\hline
Taxes Owed & $[/tex]\[tex]$ 5,590$[/tex] \\
\hline
\end{tabular}

Which explains a difference between income and taxable income?

A. Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.
B. Income is what a person earns, while taxable income reflects what is left after paying federal taxes.
C. Income is what a person earns, while taxable income reflects what is left after paying local and state taxes.
D. Income is what a person earns, while taxable income reflects what is received from the IRS in tax refund.

Sagot :

GinnyAnsweridn
The correct explanation for the difference between income and taxable income is as follows:

Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.

To illustrate, consider the chart provided:

- The individual’s income is \[tex]$50,000. - They have \$[/tex]8,950 in deductions.
- Thus, the taxable income is \[tex]$41,050 (\$[/tex]50,000 - \$8,950).

This demonstrates that taxable income is the portion of income that remains after subtracting deductions for relevant expenses.
We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your search for answers ends at IDNLearn.com. Thank you for visiting, and we hope to assist you again soon.