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 It has since been replaced by the standard deduction.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A largely outdated reference to the standard deduction.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 ?
1987-1988, total deductions also include the "zero bracket amount"
standard deduction is the "zero bracket amount" (reported on
the "zero bracket amount" reported on the small number of prior-
subtraction of the "zero bracket amount." Starting with 1991,
For Tax Years 1987-1988, total deductions also include the "zero bracket amount" reported on a small number of returns (see footnote 4).
[21] For 1980 and 1985 data, represents "zero bracket amount" used on returns of non-itemizers.
The major changes to the basic rate structure are from rate reductions, an increase in the personal exemption, and the replacement of the zero bracket amount with a standard deduction.