Taxable Income

Taxable Income Taxable income, the narrowest measure of income used on the income tax return, is equivalent to adjusted gross income reduced by either the standard deduction or itemized deduction and the personal exemption. Taxable income is the base upon which the income tax rates are applied to calculate income tax liability.

Taxable income is listed on line 15 of the Form 1040.

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Publication 17 (2020)

Publication 525 (2019) 2020 will be released soon

Federal Individual Income Tax Terms: An Explanation Updated February 4, 2021