Question
Why is the Child Tax Credit only partially refundable?
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Answer
It can reduce tax and also produce a limited refund.
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Question
Why is AGI the key pivot in the individual tax formula?
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Answer
Many deductions, credits, and phaseouts are based on AGI.
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Question
How do gross income and AGI differ in the Form 1040 formula?
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Answer
Gross income is reduced by above-the-line adjustments to reach AGI.
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Question
Why are capital gains included in gross income?
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Answer
They are taxable unless a specific exclusion applies.
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