: Rental income, gambling winnings, and distributions from retirement accounts. 📉 Step 2: Determine Your Adjusted Gross Income (AGI)
Gross Income - Above-the-Line Deductions = Adjusted Gross Income (AGI) ⚖️ Step 3: Choose Your Standard or Itemized Deduction calculate your income tax
: State and local taxes, now capped at $40,400 for most filers. Mortgage Interest : Interest on up to $750,000 of home debt. : Rental income, gambling winnings, and distributions from
Start by adding up every dollar you earned throughout the year. This is your "raw" income before any reductions. : Rental income
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