Calculate Your Income Tax Direct

: Wages, salaries, tips, and bonuses from your job.

: Interest from bank accounts, dividends from stocks, and capital gains from selling assets.

Calculating your income tax involves a multi-step process that transforms your total earnings into a final amount owed or a refund. For the 2026 tax year, recent legislation like the One, Big, Beautiful Bill (OBBB) has permanently set tax rates while adjusting brackets and deductions for inflation. 🏗️ Step 1: Calculate Your Gross Income calculate your income tax

: If you are 65+, you can claim an additional "bonus" deduction of up to $6,000 (single) or $12,000 (joint) depending on your income. Common Itemized Deductions

You must decide between taking a fixed "standard" deduction or listing specific "itemized" expenses. Choose whichever is higher to lower your taxable income the most. Filing Status Deduction Amount Single / Married Filing Separately Married Filing Jointly Head of Household : Wages, salaries, tips, and bonuses from your job

Gross Income - Above-the-Line Deductions = Adjusted Gross Income (AGI) ⚖️ Step 3: Choose Your Standard or Itemized Deduction

: Up to $2,500 in interest paid on qualified loans. For the 2026 tax year, recent legislation like

: Unreimbursed costs exceeding 7.5% of your AGI. Charitable Gifts : Donations to qualified non-profits. Step 4: Calculate Your Tax Liability 2026 Tax Brackets and Federal Income Tax Rates