: Rental income, gambling winnings, and distributions from retirement accounts. π Step 2: Determine Your Adjusted Gross Income (AGI)
: Payments to a Traditional IRA or 401(k).
: Up to $300 for K-12 teachers purchasing classroom supplies. calculate your income tax
: 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
: Up to $2,500 in interest paid on qualified loans. : Rental income, gambling winnings, and distributions from
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
: Wages, salaries, tips, and bonuses from your job. : If you are 65+, you can claim
Gross Income - Above-the-Line Deductions = Adjusted Gross Income (AGI) βοΈ Step 3: Choose Your Standard or Itemized Deduction