Single
Married Filing Jointly
Married Filing Separately
Head of Household
Your AGI and Estimated Tax will appear here.
Understanding Your Adjusted Gross Income (AGI) and Tax Liability
Calculating your tax liability involves several steps, with Adjusted Gross Income (AGI) being a crucial intermediate figure. AGI represents your gross income minus specific "above-the-line" deductions. It's a key number because it affects the deductibility of other expenses and is used to determine eligibility for various tax credits.
What is Gross Income?
Gross income is the total amount of money you earn from all sources before any deductions or credits are applied. This includes wages, salaries, tips, interest, dividends, capital gains, rental income, and other forms of earnings.
What are Above-the-Line Deductions?
These are specific deductions that you can take from your gross income to arrive at your AGI. They are called "above-the-line" because they are subtracted before AGI is calculated. Common examples include:
Contributions to traditional IRAs and certain other retirement accounts.
Student loan interest paid.
Half of the self-employment tax.
Alimony paid (for divorce or separation agreements finalized before 2019).
Health Savings Account (HSA) deductions.
Our calculator simplifies this by allowing you to input your total deductions that would reduce your gross income to arrive at AGI.
Calculating Adjusted Gross Income (AGI)
The formula is straightforward:
AGI = Gross Income – Total Above-the-Line Deductions
In our calculator, "Total Deductions" refers to these specific above-the-line adjustments.
Estimating Tax Liability
Once AGI is determined, it's used to calculate your taxable income. Taxable income is generally AGI minus either the standard deduction or itemized deductions, whichever is greater. For simplicity in this calculator, we are using your AGI and factoring in a simplified tax bracket estimation based on filing status.
Note: This calculator provides a simplified estimation. Actual tax calculations can be complex and depend on many factors, including specific tax laws, your exact financial situation, and other credits or deductions not included here. For precise tax advice, consult a qualified tax professional.
What are Tax Credits?
Tax credits are different from deductions. While deductions reduce your taxable income, tax credits directly reduce the amount of tax you owe, dollar for dollar. Examples include the Child Tax Credit, Earned Income Tax Credit, and education credits. The calculator subtracts these directly from the estimated tax.
How to Use the Calculator
1. Gross Income: Enter your total earnings before any deductions.
2. Total Deductions: Enter the sum of your "above-the-line" deductions.
3. Total Tax Credits: Enter the sum of any non-refundable tax credits you are eligible for.
4. Filing Status: Select your appropriate filing status.
Click "Calculate" to see your estimated AGI and the resulting estimated tax liability after credits.
function calculateAGIAndTax() {
var grossIncome = parseFloat(document.getElementById("grossIncome").value);
var deductions = parseFloat(document.getElementById("deductions").value);
var taxCredits = parseFloat(document.getElementById("taxCredits").value);
var filingStatus = document.getElementById("filingStatus").value;
var resultDiv = document.getElementById("result");
if (isNaN(grossIncome) || grossIncome < 0) {
resultDiv.innerHTML = "Please enter a valid Gross Income.";
resultDiv.style.backgroundColor = "#f8d7da"; // Error color
resultDiv.style.color = "#721c24";
return;
}
if (isNaN(deductions) || deductions < 0) {
resultDiv.innerHTML = "Please enter a valid Total Deductions amount.";
resultDiv.style.backgroundColor = "#f8d7da";
resultDiv.style.color = "#721c24";
return;
}
if (isNaN(taxCredits) || taxCredits < 0) {
resultDiv.innerHTML = "Please enter a valid Total Tax Credits amount.";
resultDiv.style.backgroundColor = "#f8d7da";
resultDiv.style.color = "#721c24";
return;
}
// Calculate AGI
var agi = grossIncome – deductions;
if (agi < 0) {
agi = 0; // AGI cannot be negative
}
// Simplified Tax Brackets (example, these change annually and by jurisdiction)
// These are illustrative and not actual tax rates.
var taxRate = 0;
var standardDeduction = 0;
// Illustrative standard deductions for 2023 (example)
if (filingStatus === "single") {
standardDeduction = 13850;
// Example progressive tax rates for single filers (simplified)
if (agi <= 11000) {
taxRate = 0.10;
} else if (agi <= 44725) {
taxRate = 0.12;
} else if (agi <= 95375) {
taxRate = 0.22;
} else if (agi <= 182100) {
taxRate = 0.24;
} else if (agi <= 231250) {
taxRate = 0.32;
} else if (agi <= 578125) {
taxRate = 0.35;
} else {
taxRate = 0.37;
}
} else if (filingStatus === "married_jointly") {
standardDeduction = 27700;
// Example progressive tax rates for married filing jointly (simplified)
if (agi <= 22000) {
taxRate = 0.10;
} else if (agi <= 89450) {
taxRate = 0.12;
} else if (agi <= 190750) {
taxRate = 0.22;
} else if (agi <= 364200) {
taxRate = 0.24;
} else if (agi <= 462500) {
taxRate = 0.32;
} else if (agi <= 693750) {
taxRate = 0.35;
} else {
taxRate = 0.37;
}
} else if (filingStatus === "married_separately") {
standardDeduction = 13850;
// Example progressive tax rates for married filing separately (simplified)
if (agi <= 11000) {
taxRate = 0.10;
} else if (agi <= 44725) {
taxRate = 0.12;
} else if (agi <= 95375) {
taxRate = 0.22;
} else if (agi <= 182100) {
taxRate = 0.24;
} else if (agi <= 231250) {
taxRate = 0.32;
} else if (agi <= 289065) { // Different upper limit for 35% bracket
taxRate = 0.35;
} else {
taxRate = 0.37;
}
} else if (filingStatus === "head_of_household") {
standardDeduction = 20800;
// Example progressive tax rates for head of household (simplified)
if (agi <= 15700) {
taxRate = 0.10;
} else if (agi <= 59850) {
taxRate = 0.12;
} else if (agi <= 95350) {
taxRate = 0.22;
} else if (agi <= 182100) {
taxRate = 0.24;
} else if (agi <= 231250) {
taxRate = 0.32;
} else if (agi <= 578125) {
taxRate = 0.35;
} else {
taxRate = 0.37;
}
} else {
resultDiv.innerHTML = "Invalid filing status selected.";
resultDiv.style.backgroundColor = "#f8d7da";
resultDiv.style.color = "#721c24";
return;
}
// Calculate taxable income (simplified: AGI – Standard Deduction)
var taxableIncome = agi – standardDeduction;
if (taxableIncome < 0) {
taxableIncome = 0;
}
// Calculate initial tax based on simplified brackets and taxable income
// This is a very rough approximation. Real tax calculation uses marginal rates.
var estimatedTax = taxableIncome * taxRate; // Simplified, actual tax uses brackets
// Apply tax credits
var finalTax = estimatedTax – taxCredits;
if (finalTax < 0) {
finalTax = 0; // Tax liability cannot be negative after credits
}
resultDiv.innerHTML = "AGI: $" + agi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) +
"Estimated Tax Liability: $" + finalTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDiv.style.backgroundColor = "var(–success-green)"; // Reset to success color
resultDiv.style.color = "white";
}