| Gross income | ||
| Salary Commissions Bonuses Business income Up to 85% of Social Security income Farm income | Alimony received* Unemployment income Capital gains or losses Dividends Taxable interest | Rental property income Taxable distributions from IRAs and retirement plans S corporation and partnership income Trust and estate distributions Royalties |
| – Minus – | ||
| Adjustments to income | ||
| Alimony paid* Student loan interest Educator expenses Tuition and fees | Savings early withdrawal penalties Self-employed SEP, SIMPLE, and qualified plan contributions | Self-employment tax (employer portion) Self-employed health insurance Health Savings Account (HSA) or Archer MSA Account deduction IRA deduction |
| = Equals = | ||
| Adjusted gross income (AGI) | ||
| – Minus – | ||
| Standard deduction | ||
| or | ||
| Itemized deductions | ||
| Qualified mortgage interest Charitable contributions Casualty and theft losses | State and local income tax (or state and local sales tax)** Medical expenses over 10% of AGI | State and local real estate and property tax** |
| – Minus – | ||
| Qualified business income deduction | ||
| = Equals = | ||
| Taxable incomeCalculate tax from tax table or tax rate schedules (and calculate Alternative Minimum Tax (AMT) if applicable).Use Schedule D to calculate maximum tax on capital gains and qualifying dividends if appropriate. | ||
| – Minus – | ||
| Available credits | ||
| Elderly/disabled Earned income Child tax credit | Child and dependent care Adoption tax credit Retirement savings “savers credit” | Education tax credits Foreign tax |
| = Equals = | ||
| Income tax liability |
* For pre-2019 divorce. However, the divorce agreement can designate alimony as nontaxable and nondeductible.
** Total state and local taxes limited to $10,000 ($5,000 for married filing separately).
