 When looking at the income tax equation, we're focused on line one now, that being income. Remember with the income tax equation, the first half of the formula will in essence be an income statement, this being an income tax, although a strange income statement, but it starts where we would expect, which is the income line and then we have the expenses which are reflected here in the form of deductions, the above the line deductions or adjustments to income, the below the line deductions or the greater of the standard or the itemized deductions to get to the equivalent of in essence net income, in this case the taxable income, the second half of the equation then is going to be focused on the calculation of the tax and then applying any other taxes, credits and the payments to get to the tax refund or the amount due. So now we're focused basically up top on unlike the income statement type of calculation to get down to that taxable income as we're focusing in on the income line. Now normally when you think of an income statement, obviously income is good, expenses which are the equivalent of deductions are typically bad but when you're looking at taxes, everything is flipped on its head, income is actually bad because if I have to include the income on the tax return that means I'm gonna get a higher taxable income and I'm typically going to be paying taxes on it and then the expenses or deductions are good because if I'm able to claim the deduction that's gonna lower the amount of net income or taxable income which will lower the amount of taxes. So then what we would like to be able to have is to actually earn income which I'm not legally required to report on the income statement to pay taxes on. That's kind of what we would like to be having from a tax standpoint and we would like to have the expenses that I can incur because I want to incur them for whatever reason to help me to live well and possibly get a deduction for them if I'm legally required or able to to lower the taxable income. So that means that on the income line it looks pretty straightforward. You can imagine many situations where it is straightforward. If you just are a W-2 employee then obviously you're gonna get the income reported on the form W-2 pretty basic but you can imagine many many many scenarios where income gets a lot more gray in terms of is this something I have to include as taxable income. If I found a hundred dollars on the ground do I have to include it as a taxable income which could be subject then to taxes.