Taxable Income. How is taxable income calculated? Taxable income is calculated as: (Select the best answer below.) A. adjusted gross income less either the standard deduction or itemized deductions and less the total exemptions. OB. adjusted gross income less the standard deduction or itemized deductions. C. gross taxable income less either the standard deduction or itemized deductions and less the total exemptions. OD. adjusted gross income less the total exemptions