Gross Income - Above-the-Line Deductions = Adjusted Gross Income (AGI) ⚖️ Step 3: Choose Your Standard or Itemized Deduction
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 calculate your income tax
: Interest from bank accounts, dividends from stocks, and capital gains from selling assets. Gross Income - Above-the-Line Deductions = Adjusted Gross
: Up to $300 for K-12 teachers purchasing classroom supplies. dividends from stocks