Asked by Desiree LeBoeuf on Apr 27, 2024
Verified
An exemption is an allowable amount that reduces a person's taxable income.Examples of an exemption are the taxpayer and his or her dependents.
Exemption
Information included on tax forms that lowers taxes; exemptions include dependents as well as the taxpayer.
Taxable Income
The portion of income used to calculate how much tax an individual or a corporation owes to the government, after all deductions and exemptions.
Taxpayer
An individual or business entity that is obligated to make payments to governmental authorities in the form of taxes.
- Discern and quantify deductions, credits, and exemptions and gauge their effect on taxable income and the tax payable.
Verified Answer
KB
Katie BorthsApr 27, 2024
Final Answer :
True
Explanation :
This is correct, exemptions are allowed deductions from a person's taxable income based on factors such as personal status and dependents.
Learning Objectives
- Discern and quantify deductions, credits, and exemptions and gauge their effect on taxable income and the tax payable.