TaxCalc
Income Details
Deductions
Standard Deduction
Based on your filing status (Single), your standard deduction is $13,850 for tax year 2024.
Benefits of Standard Deduction
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Simplifies tax filing process
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No need to track or document expenses
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Often beneficial for those with few deductible expenses
Itemizing deductions may lower your tax bill if your total eligible expenses exceed the standard deduction amount.
Medical Expenses
State & Local Taxes
Mortgage Interest
Charitable Contributions
Other Deductions
Our Recommendation
Based on your inputs, we recommend taking the Standard Deduction ($13,850) as it's higher than your itemized deductions.
Tax Credits
Tax Results
Tax Breakdown
Your Tax Brackets
Understanding Income Tax
Income tax is a tax imposed on individuals or entities that varies with respective income or profits. The United States uses a progressive tax system, meaning as your income increases, so does your tax rate.
The tax rate applied to your last dollar of income. As your income increases, it's taxed at progressively higher rates.
The average rate at which your income is taxed, calculated by dividing your total tax by your total taxable income.
Income ranges that determine which tax rates apply to different portions of your income.
Your total income minus allowable deductions and exemptions that is subject to taxation.
Tax Saving Strategies
Implementing effective tax strategies can help you legally minimize your tax burden and maximize your after-tax income.
Maximize Retirement Contributions
Contributing to 401(k)s, IRAs, and other retirement accounts can reduce your taxable income while building your nest egg.
Home Ownership Deductions
Mortgage interest, property taxes, and certain home improvements may qualify for tax deductions.
Tax-Loss Harvesting
Selling investments at a loss to offset capital gains can reduce your overall tax liability.
Charitable Giving
Donations to qualified organizations can provide tax deductions while supporting causes you care about.
Common Tax Deductions
Tax deductions reduce your taxable income, potentially lowering your tax bill. Here are some common deductions you might qualify for:
Tax Filing Deadlines
Staying on top of tax deadlines helps you avoid penalties and interest. Here are the key dates to remember:
W-2 and 1099 Forms Due
Employers and clients must provide these forms by this date.
Tax Filing Deadline
Federal income tax returns are due. First quarter estimated tax payments for the current year are also due.
Second Quarter Estimated Taxes
Second quarter estimated tax payments are due.
Third Quarter Estimated Taxes
Third quarter estimated tax payments are due.
Extended Filing Deadline
Last day to file if you requested an extension.
Frequently Asked Questions
What's the difference between tax deductions and tax credits?
Tax deductions reduce your taxable income, while tax credits directly reduce your tax bill dollar-for-dollar. For example, a $1,000 deduction might save you $220 if you're in the 22% tax bracket, but a $1,000 tax credit saves you the full $1,000.
Should I take the standard deduction or itemize?
You should itemize deductions if their total exceeds the standard deduction for your filing status. Common itemized deductions include mortgage interest, state and local taxes (up to $10,000), charitable contributions, and medical expenses exceeding 7.5% of your adjusted gross income.
How do tax brackets work?
The U.S. uses a progressive tax system with marginal tax brackets. This means different portions of your income are taxed at different rates. For example, if you're single with $50,000 in taxable income in 2024, the first $10,275 is taxed at 10%, the amount from $10,276 to $41,775 is taxed at 12%, and the amount from $41,776 to $50,000 is taxed at 22%.
What happens if I file my taxes late?
If you owe taxes and file late without an extension, you'll face a failure-to-file penalty of 5% of the unpaid tax for each month or part of a month your return is late, up to 25%. There's also a failure-to-pay penalty of 0.5% per month on unpaid taxes, plus interest. If you're due a refund, there's no penalty for filing late, but you should file within three years to claim your refund.
Can I file my taxes for free?
Yes, many taxpayers can file for free. The IRS Free File program offers free tax preparation and filing for taxpayers with incomes below certain thresholds. Additionally, many tax software companies offer free versions of their products for simple tax returns. Some states also offer free filing options for state tax returns.
