When preparing a tax return, it is important to complete each step in the order prescribed. Click in each entry field then type the pre Step A: Determine Adjusted Gross Income ess Equals Less Step B: Calculate Taxable Income Larger of itemized deductions or standard deduction Equals Step C: Calculate Tax Liability Calculate tax using tax tables or tax rate schedules | Less Plus Equals When preparing a tax return, it is important to complete each step in the order prescribed. Click in each entry field then type the pre Step A: Determine Adjusted Gross Income ess Equals Less Step B: Calculate Taxable Income Larger of itemized deductions or standard deduction Equals Step C: Calculate Tax Liability Calculate tax using tax tables or tax rate schedules | Less Plus Equals