### Question
How does the law define taxable income?


### Answer
Under *26 U.S.C. § 63*, **taxable income** is defined as:

> adjusted gross income, minus—


(1) the standard deduction, and


(2) the deduction for personal exemptions provided in section 151

#### Citation:
  - *26 U.S.C. § 63*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART I-DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC.**

