Question

Which of the following line items are after the tax on taxable income (income tax liability) line in the federal income tax formula?

-Larger of Itemized or Standard Deduction

-Exclusions from Gross Income

-Tax Credits

-Adjusted Gross Income (AGI)

Answer 1

Larger of itemizes or standard deduction is amount used to arrive the Taxable income , So it is before income tax liability

Exclusion from gross income is used to arrive AGI, So it is before income tax liability

Adjusted gross income is arrived before taxable income , So it is before income tax liability

Tax Credits are the amount which can be substracted from the income tax liability to arrive at the net Tax owed so it is a item that comess after the calculation of income tax liability

So the Correct answer is TAX CREDITS