EA | PA 1 | Unit 1 | Filing requirements | Parts of Tax

Gross Income - 100000

Above the line Deduction (Schedule 1) - 50000

Adjustments & Business expenses (Schedule 1)

AGI = 50000

Below the Line Deduction = -30000

Standard

Itemized Deduction

Taxable Income = 20,000 * 10%

Tax Liability = 2000

Gross Income - Above the Line Deduction = AGI

AGI - Below the Line Deduction = Taxable Income

Taxable Income * Tax Percentage = Tax liability

Did you find this article useful?