How is federal income tax calculated?

Federal income tax is calculated using marginal tax brackets. Your income is divided into portions, and each portion is taxed at its corresponding bracket rate. The sum of taxes from all brackets equals your total federal tax liability.

FICA taxes fund Social Security (6.2% up to $168,600) and Medicare (1.45% on all wages, plus 0.9% additional Medicare tax on wages over $200,000 for single filers). Employers match these contributions.

What is the SALT deduction cap?

The State and Local Tax (SALT) deduction is capped at $10,000 per year ($5,000 if married filing separately). This includes state income taxes, local taxes, and property taxes combined.

What is self-employment tax?

Self-employed individuals pay both the employee and employer portions of FICA taxes, totaling 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net self-employment income. Half of this is deductible.

Income Tax Calculator

Comprehensive tax calculator with federal income tax, FICA taxes, deductions, and credits for 2024.

Federal Income Tax Calculator 2024

Calculate your complete tax liability including federal income tax, Social Security, and Medicare

Income Sources

Wages & Salary ($) W-2 income from employment

Self-Employment Income ($) Net income from self-employment

Interest Income ($) Bank interest, bonds, etc.

Dividend Income ($) Stock dividends received

Capital Gains (Short-term) ($) Assets held less than 1 year

Capital Gains (Long-term) ($) Assets held more than 1 year

Other Income ($) Rental, alimony, gambling, etc.

Filing Status Your tax filing status

Above-the-Line Adjustments (Reduce AGI)

401(k) / 403(b) Contributions ($) Max $23,000 (2024), $30,500 if 50+

Traditional IRA Contributions ($) Max $7,000 (2024), $8,000 if 50+

HSA Contributions ($) Max $4,150 individual / $8,300 family

Student Loan Interest ($) Max $2,500 deduction

Educator Expenses ($) Max $300 for teachers

Other Adjustments ($) Alimony paid, etc.

Deductions

Deduction Type Choose larger of the two

Standard Deduction ($) Based on filing status

Tax Credits

Number of Children (under 17) For Child Tax Credit ($2,000 each)

Other Dependents $500 credit for each

Child Care Expenses ($) For Child & Dependent Care Credit

Education Expenses ($) For American Opportunity Credit

Retirement Savings Credit Eligible Based on income limits

Other Tax Credits ($) Energy credits, etc.

Tax Withholding (Optional)

Federal Tax Withheld ($) From your W-2 or estimated payments

State Tax Rate (%) For estimated state tax

Complete Tax Summary

Total Tax Liability

Federal + FICA + State

Federal Income Tax

0% effective

FICA Taxes

SS + Medicare

Annual Take-Home

After all taxes

Income Summary

Gross Income $0

Adjustments -$0

AGI $0

Deductions -$0

                    Taxable Income
                    $0
                

Tax Breakdown

Federal Tax $0

Social Security $0

Medicare $0

State Tax (Est.) $0

Self-Employment Tax $0

Total Tax $0

Credits Applied

Child Tax Credit $0

Dependent Credit $0

Child Care Credit $0

Education Credit $0

Other Credits $0

                    Total Credits
                    $0
                

Where Your Money Goes

Take-Home (0%)

Federal (0%)

FICA (0%)

State (0%)

Tax Rates

Marginal Tax Bracket 0%

Effective Federal Rate 0%

Effective Total Rate 0%

                    Tax Withheld
                    $0
                

Refund / Owed $0

Take-Home Pay

Annual

Monthly

Bi-Weekly

Weekly

Filing Status Comparison

Filing Status	Std Deduction	Taxable Income	Federal Tax	Total Tax	Take-Home

Tax Bracket Breakdown

Bracket	Rate	Income Range	Taxable Amount	Tax	Cumulative

Quarterly Estimated Tax Payments

Q1 (Apr 15): $0 | Q2 (Jun 15): $0 | Q3 (Sep 15): $0 | Q4 (Jan 15): $0

Understanding Your Taxes

2024 Tax Brackets (Single)

10%: $0 - $11,600
12%: $11,601 - $47,150
22%: $47,151 - $100,525
24%: $100,526 - $191,950
32%: $191,951 - $243,725
35%: $243,726 - $609,350
37%: Over $609,350

FICA Tax Rates (2024)

Social Security: 6.2% on first $168,600
Medicare: 1.45% on all wages
Additional Medicare: 0.9% over $200k (single)
Self-Employment: 15.3% total (both portions)
SE Deduction: 50% of SE tax is deductible

Key Deduction Limits

SALT Cap: $10,000 ($5,000 MFS)
Mortgage Interest: On $750k of debt
Charitable: Up to 60% of AGI (cash)
Medical: Exceeds 7.5% of AGI
401(k): $23,000 ($30,500 if 50+)

Common Tax Credits

Child Tax Credit: $2,000/child under 17
Other Dependent: $500/dependent
AOTC: Up to $2,500/student
Child Care: 20-35% of up to $6,000
Saver's Credit: Up to $1,000