1040 Tax Calculator
1040 Tax Calculator Definitions
- Federal Income Tax Rates:
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax rates. It is also used to determine your standard deduction, personal exemptions, and many deduction or credit phaseout income ranges. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
Filing Status Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately". Qualified Widow(er) Generally, you qualify for this status for two years after the year of your spouse's death, as long as you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider. Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at any time during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
- Are you someone's dependent?
- Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
- Dependents qualifying for child tax credit
- Enter the number of dependent children that qualify for the child tax credit. In 2019, for each qualifying child you can receive up to a $2,000 tax credit. To qualify a child must be under age 17 at the end of the year. They must be either your child, one of your siblings or your foster child or a child of any of them (for example your grandchild). In addition, they must have lived with you for more than half of the year, not provide more than half of their own support and must be claimed as a dependent on your tax return.
- Wages, salaries, tips, etc.
- Enter your total of all wages, salaries, tips, etc. For this entry only enter the amount for the primary taxpayer, do not include your spouse. This is normally the amount shown on your W-2 form(s) in box 1 provided by your employer. You should also include any wages received as a household employee not reported on a W-2 (a W-2 may not have been provided if the amount was less than $2,000). It should also include any tips not reported to your employer - including allocated tips that appear on your W-2 form(s) box 8.
- Spouse wages, salaries, tips, etc.
- Enter your spouse's total of all wages, salaries, tips, etc. For this entry, only enter the amount for your spouse. This is normally the amount shown on your spouse's W-2 form(s) in box 1 provided by your spouse's employer. You should also include any wages received as a household employee not reported on a W-2 (a W-2 may not have been provided if the amount was less than $2,000). It should also include any tips not reported to your spouse's employer - including allocated tips that appear on your spouse's W-2 form(s) box 8.
- Taxable interest
- Enter your total taxable interest. This should also include your spouse's taxable interest if you are married filing jointly. This is normally reported to you either form 1099-INT or form 1099-OID.
- Tax-exempt interest
- This amount is only used to calculate taxable Social Security Benefits and Earned Income credit. If these are not part of your return, this entry will not change your results. Enter your (and your spouse's if married filing jointly) total tax-exempt interest reported to you (and your spouse if you are married filing jointly) on form 1099-INT or form 1099-OID. Also include any amounts on 1099-DIV reported as exempt interest dividends. Don't include any interest earned in an IRA, Health Savings Account, MSA or Coverdell education savings account. Tax exempt interest you enter here will not be included in the calculation of the Alternative Minimum Tax (AMT). If any of your tax-exempt interest is subject to AMT please enter it in the "Alternative minimum tax (AMT) income adjustments" entry field.
- Ordinary dividends (this includes any qualified dividends)
- Enter your (and your spouse's if married filing jointly) total dividends for the year. This amount is normally reported to you on form 1099-DIV. Note that your total ordinary dividends for the year will include as part of the total any qualified dividends received.
- Qualified dividends
- Enter your (and your spouse's if married filing jointly) total qualified dividends for the year. This amount is normally reported to you on form 1099-DIV. Qualified dividends are the portion of your total ordinary dividends subject to the lower capital gains tax rate. Qualified dividends are typically dividends paid by a corporation in which you own stock (or a mutual fund that owns stock in the corporation).
Qualified dividends also have a minimum holding period of the underlying stock. For common stock dividends to be considered qualified dividends, you need to have owned the stock for at least 60 days during a 121 day period that starts 60 days before the ex-dividend date. The same rule applies for preferred stock but the holding period is 90 days during a 181-day period starting 90 days before the ex-dividend date.
Stock you own directly, not through a mutual fund or exchange traded fund, will report qualified dividends without regard to your holding period. If you bought or sold the stock during the year, you will need to determine if your ownership of the underlying stock meets the holding requirement.
Mutual funds and exchange traded funds will report qualified dividends with regard to their holding period of a stock owned by the fund. However, if you bought or sold fund shares during the year you will need to apply the same holding requirements to fund shares you own (or owned) as you would to a common stock. If you do not meet the holding requirement, qualified dividends reported to you by your fund should not be included as qualified dividends on your tax return.
- Taxable refunds of state and local income taxes
- If you did not itemize your deductions in the previous year, or you itemized deductions but elected to include sales taxes (instead of income taxes) this amount will be $0 regardless of any refund you received. Otherwise, the amount of your refund is taxable to the extent in which the over payment decreased your taxable income in previous year.
- Alimony received
- Enter the amount you received as spousal maintenance or alimony. Please note that a divorce or separation agreement executed after December 31st, 2018 is not considered income by the spouse receiving the payment. An amount should be entered only if the agreement was executed on or before December 31st, 2018. For more information see tax topic: 542 - Alimony or 2017 Tax Cuts and Jobs Act PART V—DEDUCTIONS AND EXCLUSIONS.
- Business income or loss (Schedule C & E subject to self-employment taxes)
- Any income or loss as reported on Schedule C. If you have any income reported on Schedule E that is subject to self-employment taxes (such as from some Partnerships), that income should be entered here as well.
- Spouse business income or loss (Schedule C & E subject to self-employment taxes)
- Any income or loss as reported on a spouse's Schedule C. If your spouse has any income reported on a Schedule E that is subject to self-employment taxes (such as from some Partnerships), that income should be entered here as well.
- Short-term capital gain or loss
- This is the total capital gain you realized from the sale of assets held less than one year. Any amount you enter as a short-term capital gain is taxed as normal income.
- Long-term capital gain or loss
- This is the total capital gain you realized from the sale of assets held one year or longer. **TAXCAPGAINS_TAXYEAR_DEFINITION**
- Other gains or losses
- Other gains or losses not reported elsewhere. If you sold or exchanged assets used in a trade or business you may need to use form 4797. Gain or Loss reported on form 4797 is usually reported as part of the business on schedule C or Schedule D and not as an "other gain or loss".
- Taxable IRA distributions
- Enter any IRA distributions that are taxable. This would normally include distributions from a Traditional IRA, simplified employee pension (SEP) IRA, or a SIMPLE IRA. This also includes conversions of any of these IRA accounts to a ROTH IRA. If in previous years you made any contributions to your Traditional, SEP, or SIMPLE IRA that were not tax-deductible, some of your distribution may not be subject to tax. See form 8606 and its instructions for tax treatment in any of these situations.
Do not include any SEP, SIMPLE or Traditional IRA distributions that were rolled over to a Traditional IRA account. Do not include Roth to Roth rollovers or qualified ROTH IRA distributions.
- Taxable pensions and annuity distributions
- This is the taxable portion of payment made by a pension or an annuity. This also includes distributions from Traditional 401(k), 403(b) and governmental 457(b) plans. Generally speaking, if you did not pay for an annuity or pension yourself, or if all contributions were made with pre-tax money, then all distributions will be fully taxable. If you purchased an annuity with after-tax money (for example from your personal savings NOT a retirement account), distributions from the annuity will have the taxable portion reduced by the amount paid for the annuity. This reduction in taxability is spread out over the remaining projected lifetime of the annuity owner. See 1040 instruct.
- Intangible drilling costs (IDC) for investor general partners (this is an income reduction)
- Oil and gas investment, when done as a general partner, can have intangible drilling costs that are considered an immediate loss of capital. This type of income reduction is both complex in its form and requirements. Please consult the IRS Oil and Gas Handbook for more information.
- Income from rentals, royalties, S Corporations and Schedule E (not already included and subject to NIIT)
- This type of investment income is subject to the 3.8% Net Investment Income Tax (NIIT). Any income already reported on another line should not be included here. Generally speaking this is income from any businesses that are passive activities to the taxpayer, and not reported elsewhere (for example, do not include income subject to self-employment taxes). This could include income from rental real estate, royalties, partnerships, S corporations, trusts, etc. There are exceptions and additional rules that can impact whether a particular business or investment income is subject to the NIIT. Please contact your tax professional for additional information.
- Income from rentals, royalties, S Corporations and Schedule E (not already included and not subject to NIIT)
- This is all income from any businesses that are NOT passive activities to the taxpayer, where the taxpayer materially participates, and not reported elsewhere (for example, do not include income subject to self-employment taxes). This amount is not subject to the 3.8% Net Investment Income Tax (NIIT). This could include income from rental real estate, partnerships or S corporations where the income is considered non-passive. There are exceptions and additional rules that can impact whether a particular business or other investment income is subject to the NIIT. Please contact your tax professional for additional information.
- Farm income or loss (Schedule F)
- Farm income or loss (losses are entered as a negative number). Farm income is subject to self-employment taxes, which are automatically calculated.
- Total unemployment compensation
- Enter any unemployment compensation you (and your spouse if you are married filing jointly) received during the year.
- Social Security benefits received
- This is the total of all Social Security and equivalent Railroad Retirement benefits you and your spouse (if you are married filing jointly) received in 2019. These benefits are reported to you on forms SSA-1099 for Social Security and RRB-1099 for Railroad Retirement benefits.
- Taxable income adjustments for Social Security, student loan interest & student tuition
- This is for a group of income items and benefits normally excluded from your taxable income but included when calculating any of the following: 1) The amount of Social Security that taxable, 2) Phaseout of student loan interest deduction and 3) Phase out of tuition and fees deduction. This amount is the total of the following:
- Employer-provided adoption benefits excluded from your income (form 8839)
- Foreign earned income or housing that was excluded from your income (form 2555)
- Any exclusion of income for Bona Fide Residents of American Samoa (form 4563) or Puerto Rico.
- Taxable Social Security benefits
- A portion of your Social Security benefits and equivalent Railroad Retirement benefits are included in your Total Income (and subject to income taxes and any other tax rules that are based on your total income) when your income exceeds certain thresholds. Note that we don't include the impact of a lump-sum election for payments received for prior year's benefits in this calculation. An overview of the calculation (the detailed worksheet is part of IRS Publication 915) is described below.
- Calculate modified total income (MTI): Total Income (without Social Security Benefits) + 50% of your total Social Security benefits + Taxable Social Security income adjustments (Employer-provided Adoption benefits excluded from your income, Foreign earned income or housing excluded from your income, income for bona fide residents of American Samoa (form 4563) or Puerto Rico) + Tax exempt interest.
- Calculate modified total adjustments (MTA): Total adjustments minus any amounts for student loan interest deduction, tuition and fees deduction.
- Calculate modified adjusted gross income (MAGI): MTI- MTA
- If MAGI is less than the 'Base Amount' for your filing status, none of your Social Security benefit is included in your income.
- If MAGI is greater than the 'Base Amount' for your filing status, The Taxable Social Security benefit added to your Total Income is the sum of the following two calculations:
- For each $1 of MAGI over the 'Base Amount' for your filing status $0.50 is Taxable. This total is limited by 1) 50% of your Social Security benefits or 2) 1/2 of the '50% Phaseout' whichever is less.
- For each $1 of MAGI over the 'Base Amount'+'50% Phaseout' for your filing status $0.85 is Taxable.
- Taxable Social Security income is limited to 85% of your Social Security benefits.
Filing Status and Taxable Social Security Benefits Filing Status Base Amount 50% Phaseout Married Filing Jointly $32,000 $12,000 Qualified Widow(er) $25,000 $9,000 Single $25,000 $9,000 Head of Household $25,000 $9,000 Married Filing Separately* $0 $0
- Other income
- Any other income you received during the year. This includes income reported to you on 1099-MISC that was already reported elsewhere.
- Total income
- Total income is calculated by adding lines 7 through 21 on your form 1040. For most taxpayers this includes wages, salaries, tips, interest, dividends and gains and losses from a variety of activities.
- Educator expenses
- If you were an 'eligible educator' in 2019 you are able to deduct up to $250 in expenses. If you are married filing jointly and both of you are 'eligible educators' the limit is $500 ($250 each). Eligible educators include kindergarten through 12th grade teachers, instructors, counselors, principals, or aides who worked in a school for at least 900 hours during the school year. The expenses can be for professional development courses related to what you teach or supplies you use in the classroom. Home schooling expenses do not qualify and nor do expenses that were reimbursed. Your total expenses must be reduced by any savings bond interest that was nontaxable for higher education expenses, nontaxable qualified tuition program earnings or distributions, and nontaxable distributions of Coverdell education savings account earnings.
- Certain employee business expenses (form 2106 Employee Business Expenses)
- This income deduction only applies to employee business expenses of reservists, qualified performing artists and fee-basis government officials. This includes non-reimbursed business expenses for vehicles, parking fees, tolls, transportation, lodging and other business expenses. Meals and entertainment are included but limited to 50% of the expense incurred.
- Health Savings Account (HSA) deduction (form 8889)
- Enter your Health Savings Account (HSA) contributions for 2019. The maximum contribution is $3,500 for single coverage and $7,000 for family coverage. To qualify for the deduction, you must have had a High Deductible Health Plan (HDHP) and contributed to your HSA account. Amounts contributed by your employer are not deductible. See form 8889 for more information.
- One-half of self-employment tax (Schedule SE)
- This amount is calculated for you. It is one-half (50%) of your total self-employment tax. Please see 'Self-Employment' tax for details on how this is calculated.
- Self-employed SEP, SIMPLE and qualified plans
- If you are self-employed and made contributions to retirement plan such as a SEP, SIMPLE or other qualified plan enter that amount here. For more information about these plans and contribution rules see publication 560.
- Self-employed health insurance deduction
- Your health insurance premiums can be deducted from your taxable income if you are self-employed with net self-employment income, a partner with net earnings from self-employment, or received wages from an S corporation that you owned more than 2%. Note that for S corporations you can only deduct the premiums if they are reported as wages on your W-2.
- Penalty on early withdrawal of savings
- Enter any amounts from form 1099-INT or form 1099-OID that show a penalty for early withdrawal of savings. These penalties are usually incurred when you withdraw money from a certificate of deposit or a time-deposit account before it matures.
- IRA deduction
- Enter any Traditional IRA contributions that are tax deductible. Traditional IRA contributions are normally tax deductible. However, if you have an employer-sponsored retirement plan, such as a 401(k), your tax deduction may be limited.
2019 Traditional IRA Deduction Phase-Out Ranges Tax Filing Status Income Phase-Out Range Married filing jointly $103,000 - $123,000 Single, Head of Household or Married Filing Separately (and have not lived with spouse for last year)* $64,000 - $74,000 Married filing separately* $0 - $10,000 Married filing jointly (spouse has employer plan, IRA owner does not)** $193,000 - $203,000
- Student loan interest deduction
- Enter the total student loan interest you (and your spouse if married filing jointly) paid for the year. Your allowable deduction is phased-out starting at $80,000 ($165,000 married filing jointly) and is completely eliminated at $95,000 ($195,000 married filing jointly). The calculator will automatically determine any phaseout amounts based on your income.
- Alimony paid
- Payments for your spouse or former spouse as part of a divorce or separation agreement executed on or before December 31st, 2018 may qualify as an alimony payment deduction. Alimony is deductible by the payer spouse and is reported as income by the recipient for divorce or separations executed on or before December 31st, 2018. For more information see tax topic: 542 - Alimony or 2017 Tax Cuts and Jobs Act PART V—DEDUCTIONS AND EXCLUSIONS.
- Total adjustments
- Total of all of your adjustments. This is sometime referred to as "above the line" deductions since they do not require filing Schedule A for itemized deductions. Total income minus your total adjustments equals your Adjusted Gross Income (AGI).
- Adjusted gross income
- Adjusted gross income (AGI) is calculated by subtracting all deductions from the 'Adjusted Gross Income' section from your total income. AGI is used to calculate many of the qualifying amounts if you itemized your deductions.
- Standard deduction
- Your standard deduction is used to reduce your taxable income if you do not use Schedule A to itemize your deductions, or if your Schedule A itemized deduction is less than your standard deduction. Your standard deduction is based on your filing status. For 2019, the standard deductions are: **STANDARDDEDUCTION_TAXYEAR_DEFINITION**
- Medical and dental expenses
- Enter your qualified medical and dental expenses for the year. This can include your health insurance premiums if you paid for them yourself (not through an employer sponsored plan) and you have not deducted them elsewhere. Your actual deduction is only for the amount that exceeds 10% of your Adjusted Gross Income (AGI) (if you are 65 or older it is 7.5% of your AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.
- Taxes paid (generally state and local)
- Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state local sales taxes instead of state and local income taxes.
- Interest paid
- Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in mortgage debt (the limit is $375,000 if married and filing separately). For mortgages that were originated before December 15, 2017, the limit is $1 million in total mortgage debt. This includes refinancing these mortgages as long as the amount owed is not increased as part of the refinancing.
Any interest paid on first, second or home equity mortgages over the limit is not tax deductible. Only home equity loans that are used to buy, build or substantially improve the home that secures the loan are included. All other home equity loans do not have an interest deduction. Mortgage interest is reported on form 1098.
You can also include the amount you paid for 'points' (which reduces your mortgage interest rate). Mortgage insurance premiums paid are no longer deductible.
- Gifts to charity
- Enter your total gifts of cash and non-cash to qualified charitable organizations.
- Itemized deduction
- Your total itemized deductions from Schedule A.
- Standard or itemized deduction
- This is the higher of your Standard Deduction or your Itemized Deduction.
- Qualified business income deduction (Form 8995)
- The Qualified business income deduction (QBID) reduces your taxable income by 20% of your qualified business income, subject to certain limitations. Calculating your QBID is not included in this calculator but you can estimate the amount with the following Total the QBI for all of your pass-through entities. This will be reported on your Schedule K-1 or Schedule C for a sole proprietorship.
Income Thresholds QBID 2019 Single and Heads of Household Married Filing Jointly AGI at or below $160,700
20% of business income from qualified trades or businesses including Specified Service Trade or Business (SSTB)es
20% of business income from qualified trade or business including specified services or businesses.
AGI in range has prorated deduction $160,700-$210,700
Phase-out of QBID deduction for Specified Service Trade or Business (SSTB). Phase-in of employee wage requirements for all other businesses.
Phase-out of QBID deduction for Specified Service Trade or Business (SSTB). Phase-in of employee wage requirements for all other businesses.
AGI above $210,700
No QBID deduction for Specified Service Trade or Business (SSTB). QBID limited to 50% of employee wages paid or 25% of employee wages paid plus 2.5% of invested capital.
No QBID deduction for Specified Service Trade or Business (SSTB). QBID limited to 50% of employee wages paid or 25% of employee wages paid plus 2.5% of invested capital.
Which entities are considered Specified Service Trade or Business (SSTB) is not clearly defined. The following are specifically identified as NOT a SSTB: real estate brokers, property managers, architecture, engineering and bankers. For all other businesses you are considered a SSTB if you are in the trade or business of performing services as an employee – or – if the business is a Specified Service Trade or Business (SSTB) as defined by Section 1202(e)(3)(A).
Section 1202(e)(3)(A) includes any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees.
- Taxable income
- This is your Adjusted Gross Income (AGI) minus your standard deduction or itemized deduction (whichever is larger) minus any Qualified Business Income Deduction (QBID).
- Income tax
- This is the total federal income tax you owe for 2019 before any tax credits, AMT or other non-income taxes.
- Foreign tax credit (form 1116)
- Any foreign tax credit per form 1116.
- Credit for child and dependent care expenses (form 2441)
- This is a credit for qualified child and dependent care. The credit is based on a percentage of actual amounts paid (or a maximum of $3,000 for one dependent or $6,000 for two or more dependents) which decreases as your income increases. See for 2441 for complete instructions.
- Education credits (form 8863, line 23)
- Enter any education credits you can claim from form 8863 line 23.
- Retirement savings contributions credit (form 8880)
- Enter any retirement savings contribution credit you can claim from form 8880.
- Child tax credit
- The child tax credit for 2019 is $2,000 for each qualifying dependent under age 17. This credit has a phaseout for 2019 of $400,000 files married filing jointly and $200,000 for all others. For each $1,000 (or fraction of $1,000) your AGI is over the phaseout limit you lose $50 of your child tax credit. The credit on this line is non-refundable and can't reduce your income taxes below $0. The refundable child tax credit (which you can receive even if you do not have any taxable income), if you qualify will appear in the tax payments and refundable credits section.
Income Thresholds for Child Tax Credit Phaseout Filing Status Maximum AGI for Full Credit AGI No Credit Married Filing Jointly $400,000 $440,000 Qualified Widow(er) $400,000 $440,000 Single $200,000 $240,000 Heads of Household $200,000 $240,000 Married Filing Separately $200,000 $240,000
- Residential energy credits (Form 5695)
- This is a credit for residential installation of qualified energy saving or producing equipment. This includes qualified solar electric generating equipment, solar water heating equipment (other than for hot tubs and pools), geothermal heat pumps, wind energy generators or fuel cell power plants. The credit is 30 percent of qualifying expenses. This credit was renewed in 2019 through 2021. See form 5695 for more information.
- American opportunity credit (Form 8863, line 14)
- Enter the total American opportunity credit that you are able to claim from form 8863 line 14.
- American opportunity credit non-refundable
- Any non-refundable portion of an American opportunity credit that you are able to claim.
- Other credits that are not refundable
- Enter any other tax credits you can claim. Tax credits entered here will not reduce your tax liability below zero (these are non-refundable credits).
- Alternative minimum tax (AMT) income adjustments
- Alternative Minimum Tax (AMT) income adjustments will be added to your Alternative Minimum Tax Income (AMTI) when calculating AMT. Please do not include any itemized deductions or taxable refunds for state and local taxes, they are handled separately. Income adjustments to include would be additional items on form 6251 lines 7 through 21. This includes a multitude of adjustments such as income for depletion, net operating losses, exercise of incentive stock options, estates and trusts, disposition of property, loss limitations and other differences between AMT income and regular tax income. Enter your total (either actual or estimated) amount here. It is beyond the scope of this calculator to determine all of the individual AMT income adjustments.
- Alternative minimum tax
- Alternative Minimum Tax (AMT) is calculated as follows (please see form 6251 Alternative Minimum Tax - Individuals):
- Start with your Adjusted Gross Income and subtract allowable itemized deductions. Allowable itemized deductions include Medical expenses above 10% of your AGI, Mortgage interest paid (with limits on equity lines of credit not used for home improvements) and gifts to charity.
- Subtract any taxable refunds or credits of state and local taxes (line 21 of your 1040).
- Add income adjustments per form 6251 lines 7 through 21. This includes a multitude of adjustments such as income for depletion, net operating losses, exercise of incentive stock options, estates and trusts, disposition of property, loss limitations and other differences between AMT income and regular tax income. It is beyond the scope of this calculator to determine all of the AMT income adjustments. Enter your total (either actual or estimated) amount into the entry for "Other alternative minimum tax income adjustments".
- Subtract your AMT exemption amount, based on your filing status and the AMT Modified AGI to get your AMT Income (AMTI). Your exemption amount is decrease by 25% of any AMTI over the exemption phaseout threshold.
Alternative Minimum Tax Exemption Amount by Filing Status 2019 Filing Status Exemption Amount Exemption Phaseout Threshold Married Filing Jointly $111,700 $1,000,000 Qualified Widow(er) $111,700 $1,000,000 Single $71,700 $500,000 Heads of Household $71,700 $500,000 Married Filing Separately $55,850 $500,000
- Your AMT tax is calculated as 26% of AMTI up to $194,800 ($97,400 for married couples filing separately) plus 28% of all AMTI over $194,800 ($97,400 for married couples filing separately).
- If the AMT tax calculation results in an amount that is greater than your normal income tax, you owe the difference as AMT.
- Excess advance premium tax credit repayment (form 8962)
- This is the difference between the health insurance premium credit you received, and the actual credit you qualify to receive (based on your income, dependents and location). See form 8962 for detailed instructions. You should complete Form 8962 only for health insurance coverage a qualified health plan purchased through a Marketplace.
- Self-employment tax
- Self-employment tax (schedule SE) is calculated by taking your total 'net farm income or loss' and 'net business income or loss' and multiplying it by 92.35% (this is done to adjust your net income downward by the total employment tax that would have been paid by an employer, had you not been self-employed). If the result is less than $400.00, you do not owe any self-employment tax on this income.
If the result is greater than $400 you owe self-employment taxes. In 2019, income up to $132,900 is subject to the 12.4% tax paid for the Social Security portion of self-employment taxes (FICA). All self-employment income is subject to the Medicare tax of 2.9%.
If you were also an employee during the year, your employee counts toward the $132,900 threshold where the Social Security tax ends. If your total employee wages exceed $132,900 in 2019 you will not owe additional Social Security taxes for self-employment. You will, however, still owe the Medicare 2.9% tax.
- Unreported Social Security and Medicare tax (form 4137)
- Enter any Social Security and Medicare tax you owe from unreported tip income. See form 4137 for more information.
- Additional tax on IRAs and other retirement plans (Form 5329)
- If you made withdrawals from any IRA, qualified retirement plan or other tax-advantaged account and owe a 10% early withdrawal penalty (or other penalty) enter the penalty amount here. Please see form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
- Household employment taxes (Schedule H), Advanced EIC (W-2 box 9)
- Enter any advanced Earned Income Credit you received as reported on your W-2 forms, line 9. Also enter any household employment taxes you owe (use Schedule H to determine this tax amount).
- First time homebuyer credit repayment (Form 5405)
- If you received a first time homebuyer credit and sold your home, you may have to repay part of the original credit. Please see form 5404 for more information.
- Medicare tax sur-tax on earned income (Form 8959)
- Income, such as wages and self-employment earnings, that were subject to Medicare taxes have sur-tax of 0.9% for amounts exceeding $200,000 ($250,000 if married filing jointly). This is automatically calculated based on all income entered as wages, salaries, tips, etc., all income entered as Business income or loss (Schedule C & E subject to self-employment taxes) and Farm income (Schedule F).
- Net Investment Income Tax (NIIT) (Form 8960)
- Investment income is subject to the Net Investment Income Tax (NIIT) when you have net positive investment income. Net investment income is total of all investment income, subject to the tax, where losses can offset gains in any given year. Any business income or loss that is subject to Self-Employment taxes is never considered investment income neither is business income from organizations where you actively participate (such as many S Corporations and Partnerships). The tax is 3.8% for all amounts above income thresholds for your filing type.
Income Threshold for NIIT Filing Status NIIT tax Threshold Married Filing Jointly $250,000 Qualified Widow(er) with dependent child $250,000 Single $200,000 Heads of Household $200,000 Married Filing Separately $125,000
- Federal income tax withheld on Forms W-2 and 1099
- Total of all Federal income taxes withheld for the year. This would typically be reported to you on form W-2 for employment wages and form 1099 for other income.
- Additional child tax credit (Form 8812)
- If you qualify for the child tax credit and were limited on taking the full credit, you may be eligible for this additional refundable credit. This additional credit is considered refundable because it is 'refunded' or paid to you even if you don't have enough income taxes to offset the credit (it will result in a total income tax bill for the year that is negative). In 2019 the refundable credit is limited to $1400 per child.
- Earned Income Credit (EIC)
- Earned Income Credit (EIC) is a tax credit available to low income earners. In some cases the EIC can be greater than the total income taxes owed for the year. This provides an income tax refund to families that may have little or no income tax withheld from their paychecks. This calculator will determine if you qualify for the Earned Income Credit, and if so, how much.
- Number of qualifying children
- Enter the number of children in your family that qualify for the Earned Income Credit (EIC). The IRS has a set of three requirements that must be met to have a child considered qualified.
- Your relationship to the child must be:
- Son, daughter, stepchild, eligible foster child, or a descendant (for example, your grandchild) of any of them, or
- Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
- Age of your child must be:
- Under age 19 at the end of 2019
- A full-time student under age 24 at the end of 2019, or
- Permanently and totally disabled at any time during 2019, regardless of age.
- Be younger than the person claiming the child
- Not have filed a joint return other than to claim a refund
- Your child must have lived with you in the United States for more than half of 2019.
- Your relationship to the child must be:
- Earned income
- This is any income from wages, salaries, tips or any other earned income that is taxable. Do not include any non-taxable benefits in this total. Also include any earnings from farms, farm partnerships or businesses that did not require payment of self-employment taxes. Do not include any scholarships, penal income, annuity or pension income.
- Scholarships, penal & retirement income
- If you received income from any of these sources, it does not qualify for the Earned Income Credit. Your eligible Earned Income is reduced by this amount.
- Non-taxable combat pay
- If you received any non-taxable combat pay, the IRS allows you choose whether to figure your EIC with or without this pay included. This calculator will automatically choose the option that produces the highest EIC.
- Are you (or spouse if married) between the ages of 25 and 65?
- Check this box if you or your spouse will be 25 to 65 years old at the end of the year. To qualify for the Earned Income Credit, either you or your spouse (if you are married) must be at least 25 years old and no greater than 65 years old at the end of the year. This rule only applies to people without any children. Your response is not used if you have 1 or more qualified children.
- Can you (or spouse if married) be claimed as a qualifying child of someone else?
- You cannot be a qualifying child of another person and receive Earned Income Credit. If you meet the requirements to be a qualifying child of your parents based on the EIC rules, you are unable to claim any EIC for yourself. This is the case even if your parent or parents do not qualify for EIC and whether or not you have any qualifying children of your own.
- Have you (and spouse if married) lived in the U.S. for at least six months?
- Check this box if you (and your spouse if married) lived in the United States for more than six months of the year. You must have lived in the U.S. for at least six months and one day during the current year. This only applies if you do not have any qualified children. For military personnel, you are able to include any time spent on extended deployment as living in the U.S.
- Total credits
- Your total tax credits. This amount is subtracted from the total tax amount.
- Total payments
- Total of all tax payments made in 2019. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess Social Security tax withheld.