Income Tax Calculator

File Status: No. of Young Dependents (Age 0-16): No. of Other Dependents (Age 17 or older): Tax Year:

Income

Wages, Tips, Other Compensation (W-2 box 1): Federal Income Tax Withheld (W-2 box 2): State Income Tax Withheld (W-2 box 17): Local Income Tax Withheld (W-2 box 19): Has Business or Self Employment Income? Interest Income (1099-INT): Ordinary Dividends: Qualified Dividends (1099-DIV): Short-term Capital Gain: Long-term Capital Gain: Other Income (e.g., unemployment pay, retirement pay): State + Local Tax Rate:

Deductions & Credits

IRA Contributions: Real Estate Tax: Mortgage Interest: Charitable Donations: Student Loan Interest (Max $2,500): Child & Dependent Care Expense (Max $3,000/person, $6,000 total, up to age 13): College Education Expense (per student): Other Deductibles:

Income Tax Calculator

The Income Tax Calculator helps estimate your federal tax refund or the amount you may owe. It is designed primarily for U.S. residents and is based on 2024 and 2025 tax brackets. The 2025 values can be used for 1040-ES planning, tax comparison, or estimating payments.

Calculating Taxable Income

To determine an estimated refund or tax liability, taxable income must be calculated. Use W-2 forms as a reference, subtracting deductions such as 401(k) contributions or pension plans from gross income.

Other Taxable Income Sources

Interest Income: Taxed as ordinary income, except for municipal bond interest.
Capital Gains/Losses: Short-term gains (held under a year) are taxed as regular income, while long-term gains (held over a year) follow different tax rates.
Dividends: Ordinary dividends are taxed as income, while qualified dividends receive lower rates.
Passive Income: Includes rental properties and certain businesses, with deductible passive losses.

Exemptions & Deductions

Tax Exemptions: Reduce or eliminate taxable income (e.g., charities, religious organizations).
Tax Deductions: Reduce taxable income and fall into two categories:
- Above-the-Line (ATL) Deductions: Reduce Adjusted Gross Income (AGI). Examples include student loan interest, IRA contributions, and tuition expenses.
- Below-the-Line (BTL) Deductions: Apply after AGI is calculated. These include mortgage interest, charitable donations, medical expenses, and state/local tax deductions (capped at $10,000 in 2024 and 2025).

Standard vs. Itemized Deductions

Taxpayers can choose between:

Standard Deduction: A fixed amount ($15,000 for single filers and $30,000 for married filers in 2025).
Itemized Deduction: Requires tracking eligible expenses, like mortgage interest or medical bills. The calculator selects the most beneficial option automatically.

Tax Credits

Tax credits directly reduce tax liability and can be refundable or non-refundable:

Income-Based Credits: Earned Income Tax Credit (EITC), Foreign Tax Credit.
Child & Dependent Credits: Child Tax Credit ($2,000 per child), Adoption Credit, Dependent Care Credit.
Education & Retirement Credits: American Opportunity Credit, Lifetime Learning Credit, Saver’s Credit.
Environmental Credits: Energy-efficient home and vehicle purchase credits.

Alternative Minimum Tax (AMT)

The AMT is an alternative tax calculation that eliminates most deductions. Taxpayers exceeding a set exemption must pay either their regular tax or AMT, whichever is higher. Ways to minimize AMT include maximizing retirement contributions and charitable giving.

The Income Tax Calculator simplifies tax planning by providing an estimate based on deductions, credits, and exemptions. Always refer to the IRS website for precise tax calculations and updates.