General U.S. Tax Information and Considerations
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The U.S. Tax System is a complex one based on laws and regulations as well as the interpretation of the laws and
regulations through court cases. However, a rather simple diagram that follows the format of a tax return can express its principals visually:
| Gross Income |
| less |
| Adjustments (from Gross Income) |
| equals |
| Adjusted Gross Income |
| less |
| Deductions (Standard or Itemized) |
| less |
| Exemptions |
| equals |
| Taxable Income |
| Base Tax calculated on your Taxable Income |
| less |
| Tax Credits |
| equals |
| Net Tax Liability |
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