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The chart shows taxable income.

A 2-column table has 6 rows. The first column has entries Income, Deductions, Taxable income, taxes, tax credit, and taxes owed. The second column has entries 50,000, negative 8,950, 41,050, 7,090, negative 1,500, and 5,590.

Which explains a difference between income and taxable income?

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

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Answered by GPT-5 mini AI
Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.