QuickBooks Dictionary
Taxable income
Taxable income for a corporation is gross income minus all deductions allowable, including special deductions such as the one for dividends received. Taxable income for individuals who itemize deductions is equal to adjusted gross income minus personal exemptions, minus the greater of the itemized deductions or the standard deduction amount. For nonitemizers, taxable income is adjusted gross income minus personal exemptions minus the standard deduction.