Enter your income once. The worksheet assembles a full federal estimate — income tax, payroll and self-employment tax, surtaxes, and credits — and cites the statute behind each line as it goes.
Educational estimate for tax year 2026 (returns filed in 2027), built on IRS Rev. Proc. 2025-32 and the OBBBA. Federal only — no state or local tax. It simplifies several complex areas (AMT, full §199A wage/asset limits, itemized-deduction rules, multi-state). It is not tax-filing software and not tax advice. For an actual return, use filing software or a licensed preparer.
Every line in the worksheet traces to the Internal Revenue Code (Title 26, U.S. Code) as amended. The two acts below reshaped most of these provisions for 2026.
Signed July 4, 2025. Made the TCJA individual rate structure and the higher standard deduction permanent, raised the Child Tax Credit to $2,200, kept the §199A deduction, and added temporary deductions for tips, overtime, car‑loan interest, and seniors (2025–2028).
Set the seven‑bracket 10–37% structure, near‑doubled the standard deduction, zeroed the personal exemption, and created §199A. Scheduled to sunset after 2025 until OBBBA made most of it permanent.
The IRS procedure fixing the 2026 bracket thresholds, standard deduction, capital‑gains breakpoints, EITC, and 60+ other parameters used throughout this worksheet.
Imposes the graduated tax on taxable income; §1(h) sets the preferential 0/15/20% rates for long‑term capital gains and qualified dividends.
Defines taxable income as AGI less the greater of the standard or itemized deductions, plus the additional standard amount for taxpayers 65+.
12.4% Social Security on net earnings up to the wage base + 2.9% Medicare on all net earnings. Net earnings = 92.35% of profit; no tax under $400.
Lets the self‑employed deduct the employer‑equivalent half of their SE tax above the line, reducing AGI.
The employee/employer Social Security (6.2% each, to the wage base) and Medicare (1.45% each) taxes withheld from W‑2 wages.
An extra 0.9% on wages and SE earnings above $200k (single/HoH), $250k (joint), or $125k (separate). Employee side only; not indexed.
3.8% on the lesser of net investment income or MAGI over the same $200k/$250k/$125k thresholds. Enacted 2010; not indexed.
$2,200 per qualifying child under 17 (2026), up to $1,700 refundable, phasing out above $200k/$400k of MAGI.
Up to 20% of pass‑through / self‑employment income, subject to wage, asset, and service‑business limits above the income threshold.
A parallel calculation with its own exemption ($90,100 single / $140,200 joint in 2026). Not modeled here — flagged when income is high enough to warrant checking.
Figures reflect tax year 2026 per IRS Revenue Procedure 2025‑32 and the One Big Beautiful Bill Act. Social Security wage base $184,500; Additional Medicare and NIIT thresholds $200,000 / $250,000 / $125,000 (not inflation‑indexed). The worksheet omits state and local income tax, the AMT computation, and several itemized‑deduction and §199A limitations. Verify anything you rely on against irs.gov or a licensed preparer. Not tax advice.