US federal income tax calculations involve a few steps:

1. Adjusted Gross Income (AGI): This starts with your total income from wages, interest, dividends, etc. You then subtract certain allowed deductions from your income to get your AGI. Examples of deductions include contributions to retirement accounts like a 401(k).

2. Taxable Income: You then subtract further deductions (either a standard deduction or itemized deductions) and exemptions from your AGI to arrive at your taxable income. Exemptions are disappearing and for most filers in 2024 will be zero. Standard deductions are a set dollar amount the IRS allows to simplify tax filing. Itemized deductions allow you to deduct specific expenses if they exceed the standard deduction.

3. Tax Brackets: Based on your filing status (single, married filing jointly, etc.) and your taxable income, you fall into a specific tax bracket. The US has seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Higher income means a higher tax bracket and a higher tax rate.

4. Tax Liability: You apply the tax rate corresponding to your tax bracket to your taxable income to get your base tax liability. There may be additional taxes owed depending on your specific tax situation.

Here are some resources that can help you calculate your taxes:

• Tax Calculators: Several online tax calculators can estimate your federal tax liability based on your income and filing status. You can find these on sites like TurboTax, NerdWallet, and Forbes Advisor.
• IRS Website: The IRS website [IRS (.gov) tax forms ON IRS (.gov) irs.gov] has a wealth of information on tax calculations and deductions.

It’s important to remember that this is a simplified explanation, and there are many other factors that can affect your tax bill. Consulting a tax professional is recommended for a more personalized assessment.