: 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
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
: Rental income, gambling winnings, and distributions from retirement accounts. 📉 Step 2: Determine Your Adjusted Gross Income (AGI) calculate your income tax
: Contributions made with after-tax dollars.
: Interest from bank accounts, dividends from stocks, and capital gains from selling assets. : If you are 65+, you can claim
: Up to $2,500 in interest paid on qualified loans.
Start by adding up every dollar you earned throughout the year. This is your "raw" income before any reductions. 🏗️ Step 1: Calculate Your Gross Income :
: Up to $300 for K-12 teachers purchasing classroom supplies.