Calculate Your Income Tax -

: Rental income, gambling winnings, and distributions from retirement accounts. 📉 Step 2: Determine Your Adjusted Gross Income (AGI)

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

You can reduce your gross income by taking "above-the-line" deductions. These are available even if you don't itemize. calculate your income tax

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

: Wages, salaries, tips, and bonuses from your job. : Rental income, gambling winnings, and distributions from

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

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

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