What comes after determining the standard deduction in calculating taxable income?

After determining the standard deduction, the next step in calculating taxable income involves subtracting the exemption amount from the Adjusted Gross Income (AGI). This process uses the AGI, which includes all income items and has adjustments subtracted, to further reduce taxable income.

The exemptions are intended to provide tax relief based on the number of dependents or personal exemptions a taxpayer can claim, thus effectively lowering the amount of income that is subject to taxation. By subtracting the exemption amount after the standard deduction, the taxpayer arrives at their taxable income, which is crucial for determining their overall tax liability.

The other options serve different purposes in the broader tax calculation process. Adding all income items and calculating all adjustments precede the determination of the standard deduction and are integral steps but do not directly follow after the standard deduction. Determining ITIN (Individual Taxpayer Identification Number) eligibility is unrelated to these calculations of taxable income post-deduction. Thus, focusing on the process of subtracting the exemption amount ensures accuracy in arriving at the final taxable income figure.