Income tax is calculated based on tax brackets. The US uses a progressive tax system where different portions of your income are taxed at different rates. We use the latest tax brackets and standard deductions to provide an accurate estimate.

The standard deduction is a fixed amount based on your filing status. Itemized deductions include specific expenses like mortgage interest, charitable contributions, and state taxes. You should choose whichever gives you the greater tax benefit.

Dependents can qualify you for tax credits like the Child Tax Credit. Each dependent also reduces your taxable income, lowering your overall tax liability. The exact benefit depends on your income level and filing status.

This calculator provides estimates for standard employment income. Self-employed individuals should consider additional taxes like self-employment tax (Social Security and Medicare) and may have different deductions available to them.