Taxable Income
Taxable income is the amount of money that an individual or business entity is required to pay taxes on. It is calculated by subtracting deductions and exemptions from gross income. Taxable income is used to determine the amount of taxes an individual or business must pay to the government. It is important to understand taxable income and how it is calculated in order to accurately pay taxes.
History of Taxable Income
Taxable income has been around since the early days of taxation. The concept of taxable income was first introduced in the United States in the late 19th century. The first federal income tax was enacted in 1862 and was used to fund the Civil War. Since then, the concept of taxable income has been used to determine the amount of taxes an individual or business must pay. In the United States, taxable income is determined by the Internal Revenue Service (IRS).
Comparison of Taxable Income
| Gross Income | Deductions | Exemptions | Taxable Income |
|---|---|---|---|
| $100,000 | $20,000 | $10,000 | $70,000 |
Summary
Taxable income is the amount of money that an individual or business entity is required to pay taxes on. It is calculated by subtracting deductions and exemptions from gross income. Taxable income is used to determine the amount of taxes an individual or business must pay to the government. For more information on taxable income, visit the Internal Revenue Service website or consult a tax professional.
See Also
- Gross Income
- Deductions
- Exemptions
- Taxable Income
- Tax Rate
- Tax Bracket
- Tax Credit
- Tax Deduction
- Tax Exemption
- Taxable Event
