Tax Formula for Individuals

Tax Formula for Individuals

To learn more about a corresponding topic, 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


References


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