If calculating your income tax ever felt like an unsolved mystery, it’s time to unlock the code and eliminate your concerns — especially since taxes aren’t going away. Here are some steps to show you how the IRS calculates your income tax so you’ll have more control over how much you pay when you file your taxes.
Your gross income is the starting point for calculating your income tax. Although it’s tempting to only put wages and salaries in this category, you also have to consider income from business, interest, dividends, capital gains, and retirement, just to give you an idea of other popular sources of income.
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