How is the federal income tax payment calculated?

Question

Mathematics

Jamarcus

24 January, 15:02

How is the federal income tax payment calculated?

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Answers (2)

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Drake Henderson · Answer 1

To calculate taxable income, you begin by making certain adjustments from gross income to arrive at adjusted gross income. Once you have calculated adjusted gross income, you can subtract any deductions for which you qualify (either itemized or standard) to arrive at taxable income.

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Karma Love · Answer 2

How Income Taxes Are Calculated. First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401 (k). Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income.