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Question
question 1 of 10
which tax bracket a person falls into is determined by his or her ——
a. agi
b. salary
c. gross income
d. taxable income
Brief Explanations
To determine the tax bracket, taxable income (the income used to calculate tax liability after deductions and exemptions) is used. AGI (Adjusted Gross Income) is before deductions for tax brackets. Salary is part of income but not the sole determinant. Gross income is before adjustments. Taxable income is what's used to find the tax bracket.
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D. taxable income