Tax Calculator Help
Detailed guide to using the individual tax calculator and understanding your results
Calculator Input Fields
Understanding each field helps ensure accurate calculations:
Filing Status
Your tax filing status determines your tax rates and standard deduction amount.
- Single: Unmarried individuals
- Married Filing Jointly: Married couples filing together (usually most beneficial)
- Married Filing Separately: Married couples filing separate returns
- Head of Household: Unmarried with qualifying dependents
Annual Income
Enter your total wages, salaries, and other regular income for the year.
Note: Do NOT include tip income or overtime here - enter those separately to receive the exclusion benefit.
Age
Your age determines eligibility for the enhanced senior deduction.
- If you're 65 or older, you receive an additional $1,650 standard deduction
- This is in addition to the enhanced standard deduction under the new law
Number of Children Under 17
Enter the number of qualifying children for the child tax credit.
- Must be under age 17 at the end of the tax year
- Must be your dependent (son, daughter, stepchild, etc.)
- Enhanced credit of $2,500 per child (2025-2028)
Special Income (100% Tax Excluded!)
Tip Income
All tips received are completely excluded from federal income tax under the Big Beautiful Bill.
- Cash tips
- Credit card tips
- Tip sharing/pooling
Overtime Income
All overtime pay is completely excluded from federal income tax.
- Time-and-a-half pay
- Double-time pay
- Weekend/holiday overtime
Business Income
Income from self-employment or pass-through businesses.
- Eligible for 23% Qualified Business Income (QBI) deduction
- 25% enhancement under the Big Beautiful Bill
- Include net profit from Schedule C, K-1s, etc.
State and Local Taxes (SALT)
Total state and local taxes paid during the year.
- State income taxes
- Local income taxes
- Property taxes
- New cap: $30,000 (increased from $10,000)
Understanding Your Results
Key Metrics
- Tax Under Old Law
- What you would owe under pre-Big Beautiful Bill tax rules
- Tax Under New Law
- Your tax liability with all Big Beautiful Bill benefits applied
- Tax Savings
- The difference between old and new law (your benefit!)
- Effective Tax Rate
- Your actual tax rate as a percentage of total income
Detailed Breakdown
- Gross Income
- Total of all income including tips and overtime
- Adjusted Gross Income
- Income after excluding tips and overtime
- Standard Deduction
- Base + enhanced + senior deductions
- Taxable Income
- AGI minus standard deduction
Common Calculator Questions
The Big Beautiful Bill significantly reduces taxes through tip/overtime exclusions, enhanced standard deductions, and improved credits. If you have tip or overtime income, your effective rate will be much lower than traditional calculations.
No, only include taxable income. Employer-provided health insurance, retirement contributions, and similar benefits are typically not taxable income and should not be included in your annual income.
All overtime pay (typically time-and-a-half or double-time rates) is excluded. This includes weekend overtime, holiday pay at overtime rates, and any hours worked beyond your standard schedule at premium rates.
Yes! Try different filing statuses, adjust your income types, or change the number of dependents to see how it affects your taxes. This helps with tax planning and optimization.
Tips for Accurate Calculations
DO:
- Separate regular income from tips and overtime
- Include all qualifying children under 17
- Use your expected annual totals
- Include all business income if self-employed
DON'T:
- Combine tips/overtime with regular income
- Include non-taxable benefits
- Forget state and local taxes paid
- Use net pay instead of gross pay