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Retirement Planning

Adjusted Gross Income

Income tax liability is a crucial aspect of personal finance. As a knowledgeable professor, I want to shed light on the concept of taxable income. This is the amount on which an individual's income tax is calculated. It is calculated by deducting allowable adjustments from gross income. These adjustments include deductions for education expenses, medical expenses, and contributions to retirement accounts. Understanding these terms is essential for making informed financial decisions.
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