Many states allow a standard deduction or some form of itemized deductions. The states do not allow a tax deduction for income taxes, whether federal or state. These brackets are the taxable income plus the standard deduction for a joint return. Prius owners were eligible for up to a federal tax deduction from their gross income. High taxes mean that wages are reduced after mandatory deduction. Exactly the same subsidy is achieved by giving a health tax deduction. Standard Deduction is a sort of minimum Itemized Deduction. The deduction of expenses may result in a loss. Perhaps the single biggest necessary deduction is for business expenses. He complained in particular about the elimination of the state and local tax deduction. Section 166 limits the amount of the deduction. The "bend deduction" (BD) is twice the outside setback minus the bend allowance. The amount of this deduction was $4,000 for 2015. This is known as the MDP Net Pay Deduction. There is a standard deduction amounting to P5,000,000.