Figuring Income Tax

Figuring what my income tax will be

The federal income tax is a progressive tax, which means as your taxable income increases, the amount of your income tax increases. After your taxable income reaches a certain level, each additional dollar is taxed at a progressively higher income tax rate. The amount of taxable income taxed at each rate depends on your tax filing status. Capital gains (income from sale of property such as stocks) are taxes at different rates.

What is my income tax amount based on?

Your income tax is based on your tax filing status and taxable income. Whether you use:

1. the Tax Table or

2. the Tax Rate Schedules

depends on the amount of taxable income you report on line 43 of the tax form 1040. Do not use your adjusted gross income to determine your tax.

Where to the tax amount on my tax return?

Enter your tax on line 44 of the form 1040.