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