After subtracting your adjustments and deductions from your gross income, you have your taxable income. Now you can use the IRS’s tax table to calculate your preliminary tax liability for the year.
The individual income tax rate (2019) structure is a progressive tax rate structure.
2019 Tax Rate
Single
Head of Household
Married Filing Jointly
Married Filing Separately
10%
$0–$9,700
$0–$13,850
$0–$19,400
$0–$9,700
12%
$9,701–$39,475
$13,851–$52,850
$19,401–$78,950
$9,701–$39,475
22%
$39,476–$84,200
$52,851–$84,200
$78,951–$168,400
$39,476–$84,200
24%
$84,201–$160,725
$84,201–$160,700
$168,401–$321,450
$84,201–$160,725
32%
$160,726–$204,100
$160,701–$204,100
$321,451–$408,200
$160,726–$204,100
35%
$204,101–$510,300
$204,101–$510,300
$408,201–$612,350
$204,101–$306,175
37%
Over $510,300
Over $510,300
Over $612,350
Over $306,175
For example, if: a taxpayer with a single filing status has $92,000 of taxable income. The income tax liability in 2019 is calculated as the below:
($9,700 − $0) × 10% = $970
($39,475 − $9,700) × 12% = $3,573
($84,200 − $39,475) × 22% = $9,840
($92,000 − $84,200) × 24% = $1,872
Total income tax liability is $970 + $3,573 + $9,840 + $1,872 = $16,255
You can subtract tax credits you qualify for from this amount. Common credits include: Child Tax Credit, Credit for Other Dependents, Foreign tax credit etc. Then you can add other taxes to this amount, including self-employment tax (Schedule 2 should be attached). The result will be your total tax.
The next step is to calculate the taxes that you have already paid for the year (this includes taxes withheld from Forms W-2 and 1099). Subtract the amount from your total tax. If the number is positive, this is the amount you owe. If the number is negative, this is the amount of the refund you are entitled to.
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
U.S. Individual Income Tax Part 6 Tax Liability or Refund; After subtracting your adjustments and deductions from your gross income, you have your taxable income. Now you can use the IRS’s tax table to calculate your preliminary tax liability for the year. The individual income tax rate (2019) structure is a progressive tax rate structure.
If you are a calendar year filer and your tax year ends on December 31, the due date for filing your federal individual income tax return is generally April 15 of each year. If you use a fiscal year (tax year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year.
After you figure your tax, you may be eligible for certain credits that lower your tax liability. This article will give you a brief introduction to some basic tax credits.1. Child Tax Credit; 2.Credit for Other Dependents; 3.Earned Income Tax Credit; 4. Foreign Tax Credit
The IRS requires you to report all your income that you have received during the tax year. This includes your wages, taxable interest, ordinary dividends, taxable IRA distribution, taxable pensions and annuities, taxable social security benefits, capital gain (attach Schedule D) and other income (attach Schedule 1). Your total gross income is determined by adding up all types of income.
