User:Jaydavidmartin/Tax deductions in the United States

Background

The amount of tax owed by an individual is determined by a tax formula that begins with the taxpayer's gross income, subtracts certain deductions from gross income to yield the taxpayer's adjusted gross income, then subtracts the greater of the standard deduction or itemized deductions as well as qualified business income deductions to yield the taxpayer's taxable income, then applies the appropriate tax rate to the taxpayer's taxable income to yield their gross income tax liability, and then finally subtracts tax credits from gross income tax liability to yield the amount of tax due:

Standard deduction

Main article: Standard deduction

Itemized deductions

State and local tax (SALT)

Main article: State and local tax deduction