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Internal Revenue Code of 1986

The official set of laws that govern federal income taxes in the United States.

Standard Deduction

A fixed dollar amount that taxpayers can subtract from their income before calculating their taxes, instead of listing out (itemizing) specific expenses like mortgage interest or charitable donations.

Additional Standard Deduction for Seniors

An extra amount that taxpayers aged 65 or older can add to their standard deduction, further reducing their taxable income.

Taxable Year

The accounting period for which taxes are calculated, typically the calendar year (January 1 to December 31) for most individual taxpayers.

Inflation Adjustment

A mechanism to increase or decrease certain dollar amounts in the tax code each year to account for changes in the cost of living, preventing their value from eroding over time due to inflation.

Conforming Amendments

Changes made to other parts of a law or code to ensure that they align with and properly reflect a new amendment.