: 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
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 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 : Unreimbursed costs exceeding 7
: Payments to a Traditional IRA or 401(k). Choose whichever is higher to lower your taxable
: Contributions made with after-tax dollars.
: Rental income, gambling winnings, and distributions from retirement accounts. 📉 Step 2: Determine Your Adjusted Gross Income (AGI)
Gross Income - Above-the-Line Deductions = Adjusted Gross Income (AGI) ⚖️ Step 3: Choose Your Standard or Itemized Deduction