Tax Formula for Individuals
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click on the article link in the references.
|
Income
|
$ xx,xxx
|
|
Less: Exclusions
|
(x,xxx)
|
|
= Gross Income
|
$ xx,xxx
|
|
Less: Deductions
for adjusted gross income
|
(x,xxx)
|
|
= Adjusted Gross
Income
|
$ xx,xxx
|
|
Less: the
greater of –
Total itemized deductions
Or the standard deduction
|
(x,xxx)
|
|
Less: Personal
and dependency exemptions*
|
(x,xxx)
|
|
Less: Deduction
for qualified business income**
|
(x,xxx)
|
|
= Taxable Income
|
$ xx,xxx
|
|
Tax on taxable
income
|
$ x,xxx
|
|
Less: Taxes
withheld/Tax credits
|
(xxx)
|
|
= Tax due (or
refund)
|
$ xxx
|
*Exemption deductions are not allowed from
2018 through 2025.
**Only applies from 2018 through 2025
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