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Income Tax Planning
Chapter 4: Gross Income from Personal and Investment Activities/FEDERAL INCOME TAX FORMULA (PRE-OBBBA)
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 4: Gross Income from Personal and Investment Activities

FEDERAL INCOME TAX FORMULA (PRE-OBBBA)

01.Core Concepts

Income (broadly defined) Less: Exclusions Gross Income Less: Deductions for AGI (above-the-line deductions) Adjusted Gross Income (“The Line”) Less: Itemized or Standard Deduction (below-the-line deductions) Less: Personal and Dependency Exemptions (eliminated by OBBBA) Less: 20% deduction for QBI Taxable Income Tax on Taxable Income Less: Tax Credits Tax Due (or Refund Due)