Tax Strategies & Credits

Tax Terms: Taxable Income

Tax Terms: Taxable Income

The term "taxable income" refers to the result of a calculation of a taxpayer's Adjusted Gross Income minus any deductions to which they are entitled. These deduction can be standard or itemized, as well as exemptions, and once the taxable income amount is calculated, it determines the taxpayer's taxation rate. Taxpayers are able to find their taxation rate by looking on tax tables published by the IRS. This makes the calculation of taxes owed very simple, although the data is only available for those whose incomes fall below $100,000.

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Lee Reams, BSME, EA

Lee Reams, BSME, EA

Editor-in-Chief

Besides his role at CountingWorks as an educator and speaker to thousands of accountants nationwide, Lee manages a technical research service for a large group of tax accountants which sharpens his technical skills. Lee served on the Board of Blackline Systems, is a former Board of Director for the California Tax Education Council, is a Past President of the San Fernando Valley Chapter of Enrolled Agents, Member and Past Director for the California Society of Enrolled Agents.

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