federal income tax

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Definition

Adjusted gross income (AGI) is gross income from taxable sources minus allowable deductions.

Overview

In the equation above, taxable sources can include wages, interest, capital gains, income from retirement accounts, and alimony...

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Overview

In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified. It states: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without...

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Definition

Taxing power refers to the ability of a government to impose and collect taxes.

Overview General Constitutional Authorization

In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect...

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Facts

In November 1999, Gary Woods and his business partner, Texas billionaire Billy “Red” McCombs, collaborated in a series of investments through the creation of partnerships that engaged in transactions through a tax shelter called Current Options...