Determining Income Tax Liability—Taxable Income
01.Core Concepts
• Total income (from whatever source derived) $xx,xxx • Less: exclusions from gross income (x,xxx) • Gross income $xx,xxx • Less: deductions for adjusted gross income (x,xxx) • Adjusted gross income (AGI) $xx,xxx • Less the larger of: • standard deduction or itemized deductions (x,xxx) • Taxable income $xx,xxx
