Answered

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The chart shows taxable income.

\begin{tabular}{|l|r|}
\hline
Income & [tex]$\$[/tex] 50,000[tex]$ \\
\hline
Deductions & $[/tex]-\[tex]$ 8,950$[/tex] \\
\hline
Taxable Income & [tex]$\$[/tex] 41,050[tex]$ \\
\hline
Taxes & $[/tex]\[tex]$ 7,090$[/tex] \\
\hline
Tax Credit & [tex]$-\$[/tex] 1,500[tex]$ \\
\hline
Taxes Owed & $[/tex]\[tex]$ 5,590$[/tex] \\
\hline
\end{tabular}

Which explains a difference between income and taxable income?

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

Sagot :

GinnyAnswer
The correct explanation for the difference between income and taxable income is as follows:

Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.

To illustrate, consider the chart provided:

- The individual’s income is \[tex]$50,000. - They have \$[/tex]8,950 in deductions.
- Thus, the taxable income is \[tex]$41,050 (\$[/tex]50,000 - \$8,950).

This demonstrates that taxable income is the portion of income that remains after subtracting deductions for relevant expenses.
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