A person's taxable income is defined as gross income after subtracting exemptions and deductions. This means it includes all sources of income, such as salaries, wages, tips, and commissions, but then reduces that amount by any applicable deductions and exemptions to arrive at the taxable income figure that is subject to taxation.
What is a person’s taxable income?
gross income after subtracting exemptions and deductions
all income withheld by an employer and sent to the federal government
all personal exemptions and deductions
the gross income received from salaries, wages, tips, and commissions
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