zero bracket amount


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Zero Bracket Amount

In the United States, the amount of income not taxed before the Tax Reform Act of 1986. Taxpayers who chose not to itemize deductions subtracted the zero-bracket amount from their adjusted gross income. The amount was indexed to inflation and therefore had the potential to change every tax year. It has since been replaced by the standard deduction.

zero bracket amount

A largely outdated reference to the standard deduction.
References in periodicals archive ?
Personal taxes are not affected by this change in 1987, however, because the standard deduction is the same as the inflation-adjusted zero bracket amount for that year.
For 1980 and 1985 data, includes total itemized deductions before subtraction of "zero bracket amount," plus, for non-itemized deduction returns, the zero bracket amount and, for 1985 data only, a charitable contributions deduction.
Starting with 1987, represents the sum of "basic" and "additional" standard deductions (for age 65 or over and for blindness); also includes zero bracket amount reported on the small number of prior-year returns filed in 1988-1989 that was included in the 1987-1988 statistics.