Public conceptDeductions and rates
Taxable income
The amount remaining after the modeled deduction, divided into ordinary and preferential portions.
In one sentence
Taxable income is the amount sent into the ordinary and preferential rate stacks.
Model
included income − deduction applied = taxable income
Worked example
$68,000 of included income minus a $15,750 deduction leaves $52,250 of taxable income in the single-filer example.
What to notice
Follow this mechanism in a related lesson, where the same calculator engine exposes every intermediate value.
Common misconception
This scoped estimator does not model above-the-line adjustments, itemized deductions, exemptions, or credits.
See it in motion