Start by adding up every dollar you earned throughout the year. This is your "raw" income before any reductions.
: If you are 65+, you can claim an additional "bonus" deduction of up to $6,000 (single) or $12,000 (joint) depending on your income. Common Itemized Deductions calculate your income tax
: Wages, salaries, tips, and bonuses from your job. Start by adding up every dollar you earned
: Up to $2,500 in interest paid on qualified loans. Common Itemized Deductions : Wages, salaries, tips, and
: Payments to a Traditional IRA or 401(k).
: Interest from bank accounts, dividends from stocks, and capital gains from selling assets.
You must decide between taking a fixed "standard" deduction or listing specific "itemized" expenses. Choose whichever is higher to lower your taxable income the most. Filing Status Deduction Amount Single / Married Filing Separately Married Filing Jointly Head of Household
