Understanding US tax law helps you legally minimize your tax burden and plan major financial decisions. Our tax calculators apply current IRS rules, brackets, and deductions to help you estimate liability, evaluate tax strategies, and make informed decisions year-round.
The 2024 standard deduction is $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household. These amounts are adjusted annually for inflation.
Above-the-line deductions (adjustments to income) reduce your AGI regardless of whether you itemize or take the standard deduction. They include student loan interest, contributions to traditional IRAs, HSA contributions, self-employment tax deduction, and alimony paid under pre-2019 agreements.
The AMT is a parallel tax system with fewer deductions, designed to ensure high earners pay a minimum amount. You owe AMT only if it exceeds your regular tax liability. The AMT exemption is $85,700 (single) and $133,300 (married, 2024).
Self-employed individuals can deduct home office expenses if the space is used regularly and exclusively for business. W-2 employees cannot deduct home office expenses under current law (the TCJA suspended miscellaneous itemized deductions through 2025).
Pass-through business owners (sole proprietors, S-corp shareholders, LLC members) may deduct up to 20% of qualified business income. Income limits apply: the deduction phases out between $182,050 and $232,050 (single) in 2024. Certain service businesses face additional restrictions.