Standard Deduction and Tax Computation

This is the first of eight lessons covering computing taxable income, tax, and allowable credits. After completing this lesson on standard deductions and the Itemized Deductions lesson, you will be able to subtract the appropriate deduction, and if the taxpayer qualifies, the qualified business income deduction from the taxpayer’s adjusted gross income (AGI) to figure their taxable income. 

At the end of this lesson, using your resource materials, you will be able to:

• Determine the standard deduction amount for most taxpayers

• Determine the standard deduction amount for taxpayers claimed as dependents • Identify how taxable income and income tax are computed and reported

• Determine the amount of qualified business income deduction, if any