Tax 1-2 Identify the steps in the tax calculation process.

Question 1

Tax 1-2 Identify the steps in the tax calculation process

6. Which of the following is not a step in the tax calculation process?
   a. subtract adjustments to income from total income to get adjusted gross income
   b. deduct the greater of itemized deductions or the standard deduction
   c. determine the personal exemption amount that can be deducted
   d. subtract exclusions from AGI

(LO 1-2)

Answer 1

d. subtract exclusions from AGI

All of the following are involved in the income tax computation: subtracting adjustments to income from total income to get adjusted gross income, deducting the greater of itemized deductions or the standard deduction from AGI, and determining the personal exemption amount that can be deducted. Subtracting exclusions from AGI is not a step in the tax calculation process. Excluded amounts simply do not show up on the return.