How is the federal income tax payment calculated?

To calculate taxable income, you begin by making certain adjustments from gross income to arrive at adjusted gross income. Once you have calculated adjusted gross income, you can subtract any deductions for which you qualify (either itemized or standard) to arrive at taxable income.

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How Income Taxes Are Calculated. First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k). Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income.

on the middle line

step-by-step explanation:

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