InvestorWords.com

zero-bracket amount


Definition

Former tax bracket eliminated in 1986 that previously determined the standard deduction portion of income - which is not taxed - for taxpayers who select not to itemize deductions. Taxpayers were able to subtract the zero-bracket amount from their adjusted gross income to arrive at their taxable income. The Tax Reform Act of 1986 replaced the zero-bracket amount with a standard deduction amount.


Related Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z