Internal Revenue Code section 63

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Section 63 of the Internal Revenue Code defines what constitutes Taxable income in the United States. The section sets forth that taxable income means gross income (which is broadly defined in Internal Revenue Code 61) minus whatever deductions are allowed by that chapter of the IRC. The section provides that individuals may either take itemized deductions, meaning that they may add up their deductible expenses such as college tuition and charitable donations and then subtract that amount from their taxable income, or they may take a standard deduction, reducing their taxable income by an amount set forth elsewhere in the IRC.