Calculate Your — Income Tax

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

Start by adding up every dollar you earned throughout the year. This is your "raw" income before any reductions.

: Up to $2,500 in interest paid on qualified loans.

: Payments to a Traditional IRA or 401(k).

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

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

: Up to $300 for K-12 teachers purchasing classroom supplies.

: State and local taxes, now capped at $40,400 for most filers. Mortgage Interest : Interest on up to $750,000 of home debt.