On th Federal Income Tax Form 1040, the standard deduction is defined as a subtraction from gross income that varies based upon household expenditures during the year. a subtraction from gross income of a fixed amount, determined by household filing status. b. a subtraction from gross income given by a percentage of total gross income. . d. a subtraction from gross income, based upon the state in which the household resides. an addition to your gross income, based upon the appreciation of the household's financial assets. e