What does taxable income refer to?

Taxable income refers to the portion of income that is subject to tax. This amount is calculated by taking an individual's total income and subtracting allowable deductions, exemptions, and certain credits that reduce the overall taxable income. Essentially, taxable income is the amount that the government uses to determine how much tax an individual or business must pay.

Understanding taxable income is key as it impacts the financial obligations of taxpayers. The other options touch on different aspects of income that do not represent the segment that is taxed. For instance, the amount exempt from taxes refers to income that does not get taxed at all, while income from part-time work could contribute to an individual's overall income but is not explicitly defined as taxable income. Similarly, income received from non-taxable sources is not subject to taxation and would not contribute to the taxable income calculation. Thus, the correct choice highlights the specific income portion that is relevant for tax calculations.