Question

Which of the following would result in a reduction of taxable income? Multiple Choice tax credits...

Which of the following would result in a reduction of taxable income?

Multiple Choice

  • tax credits

  • portfolio income

  • earned income

  • business income

  • union dues

Homework Answers

Answer #1

Ans) Tax Credits

Tax Credits: Tax credit reduced the amount of tax owed to Government like deductions and exemption.

Portfolio Income: Portfolio Income results increase in taxable income,it includes dividend,Interest Income etc.

Earned Income: Earned Income also results increase in taxable income,it includes income from job or self employed income.

Business Income: Business Income, as a name implied income from Business,its also results increase in taxable income.

Union dues:As per the new provision applicable from 2018-2025 no employess can deduct Union duefrom income even if the employee can itemize deduction and in case of self employed taxpyer paid union due it is treated as business expense.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following are tax credits that reduce the tax liability calculated on taxable income?...
Which of the following are tax credits that reduce the tax liability calculated on taxable income? 1- Charitable credit. 2- Child tax credit. 3- Earned income credit. 4- A retirement savers credit. Group of answer choices 1, 2 and 3. 2 and 3. 2, 3 and 4. 1, 2, 3 and 4.
Each of the following generates a permanent difference between book and taxable income, except Multiple Choice...
Each of the following generates a permanent difference between book and taxable income, except Multiple Choice Political contributions Section 179 depreciation deduction Deduction for entertainment expenses Tax credits
Which of the following line items are after the tax on taxable income (income tax liability)...
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)
Which of the following is one of the two foreign tax credits limitation categories for taxable...
Which of the following is one of the two foreign tax credits limitation categories for taxable years beginning after December 31, 2006. A. Oil and gas extraction income. B. Financial service income. C. Shipping income. D. Passive income
What are tax credits? Your adjustments, deductions, and exemptions reduce your taxable income. Tax credits, on...
What are tax credits? Your adjustments, deductions, and exemptions reduce your taxable income. Tax credits, on the other hand, are directly applied to the tax that you pay. You may take tax credits regardless of whether you itemize deductions. Many credits are limited, based on income levels, so the amount of a credit may be reduced for high-income taxpayers. The following statement refers to refundable or nonrefundable tax credits. A tax credit that reduces your income tax liability to below...
Which of the following transactions would typically result in the creation of a deferred tax liability?...
Which of the following transactions would typically result in the creation of a deferred tax liability? a. Gross profit on installment sales is recognized currently in pretax financial income but is not taxable for income tax purposes until cash is received. b. Losses recognized in pretax accounting income from an investment in a subsidiary are accounted for by the equity method but not deductible for income tax purposes until the investment is sold. c. Rents received in advance are taxable...
Which of the following major activities of a business will result in product costs? Multiple Choice...
Which of the following major activities of a business will result in product costs? Multiple Choice General administrative. Customer support. Marketing. Manufacturing.
Which of the following causes taxable income to be a smaller amount than gross income for...
Which of the following causes taxable income to be a smaller amount than gross income for an individual taxpayer? a) Nonrefundable tax credits b) The greater of itemized deductions or the standard deduction c) Exclusions from gross income d) Redundable tax credits
Use the following tax table to answer this question: Taxable Income Tax Rate $ 0 -...
Use the following tax table to answer this question: Taxable Income Tax Rate $ 0 - 9,525 10 % 9,525 - 38,700 12 38,700 - 82,500 22 82,500 - 157,500 24 157,500 - 200,000 32 200,000 - 500,000 35 500,000 + 37 Andrews Dried Fruit, LLC has taxable income of $630,000. How much does it owe in taxes? Multiple Choice $141,750 $154,800 $198,790 $$220,500 $$233,100
20.Which of the following usually results in an increase in a deferred tax asset? Multiple Choice...
20.Which of the following usually results in an increase in a deferred tax asset? Multiple Choice Installment sales for which taxable income recognized when cash is collected. Unrealized loss from recording inventory impairments. None of these answer choices are correct. Unrealized gain from recording investments at fair value. 27.Illini switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2018. The change affects a tool purchased at the beginning of 2016 at a cost of $79,200. The tool has an...