mula for Individual Income Tax NCOME FROM WHATEVER SOURCE DERIVED minus eXCLUSIONS= GRoSs INCOME minus DEDUCTIONS FOR ADJUSTED GROSS INCOME adJUSTEd GROSS INCoME- deduct Greater OF ITEMIZED OR STANDARD DEDUCTION and PERSONAL AND DEPENDENCY EXEMPTIONS= TAXABLE INCOME TAXABLE INCOME timeS TAX RATE (tax table or schedule)= GRoss TAX minus CREDITS AND PREPAYMENTS= NET TAX PAYABLE OR REFUND DUEFormula For Individual Income Tax • INCOME FROM WHATEVER SOURCE DERIVED minus EXCLUSIONS= GROSS INCOME minus DEDUCTIONS FOR ADJUSTED GROSS INCOME= ADJUSTED GROSS INCOME - deduct GREATER OF ITEMIZED OR STANDARD DEDUCTION and PERSONAL AND DEPENDENCY EXEMPTIONS= TAXABLE INCOME. TAXABLE INCOME times TAX RATE (tax table or schedule) = GROSS TAX minus CREDITS AND PREPAYMENTS= NET TAX PAYABLE OR REFUND DUE