zero bracket amount
- A term used in federal tax that refers to a deduction from gross income allowed for taxpayers. This was reflected in tax tables before it was replaced by the standard deduction in 1986
- With the introduction of the standard deduction, the zero bracket amount became obsolete.
- Prior to 1986, individuals could use the zero bracket amount to reduce their gross income for tax calculation.
- Historically, the zero bracket amount was a tax relief strategy before the concept of the standard deduction was introduced.
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