What steps should you take when completing a tax return? When preparing a tax return, it is important to complete each step in the order prescribed. Identify each step in completing a tax return by choosing the step from the drop-down fields below. Step A: Determine Adjusted Gross Income A Less B Equals Less Step B: Calculate Taxable income Larger of itemized deductions or standard deduction Less D Equals E Step C. Calculate Tax Liability Calculate tax using tax tables or tax rate schedules | Less F Plus G Equals