This is part of a collection of definitions on Financial Literacy. This defines the term taxable income.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Taxable Income

Taxable Income

Taxable Income

Topic

Financial Literacy

Definition

Taxable income is the portion of an individual's or business's income that is subject to taxation after all deductions and exemptions are applied.

Description

Taxable income is a critical component of the tax calculation process, determining the amount of tax owed to the government. Understanding taxable income is essential for accurate tax filing and financial planning. In real-world applications, taxable income is calculated by subtracting deductions and exemptions from gross income. Math education introduces students to the concept of taxable income and its role in the tax system. A teacher might explain, "Taxable income is the part of your income that's taxed after you subtract deductions and exemptions."

Taxable Income
A bakery can deduct the cost of supplies, equipment, 
and rent from its revenue to find its taxable income.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, tax, taxable income, tax deduction, tax credit, income tax, taxes