Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as

Question

Business

Ciara Lin

27 March, 16:48

Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as

+4

Answers (1)

Know the Answer?

Desmond George · Answer 1

Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as taxable income. taxable income refers to the gross income or adjusted gross income. It is minus any deductions or exemptions allowed in that tax year. This income includes wages, salaries, bonuses and tips, as well as investment income and unearned income.