Deductions modeled include ½ self‑employment tax deduction and the standard deduction; there is currently no option for itemizing deductions. Retirement deductions include IRA, 401(k), and Solo 401(k). Social Security tax is capped at the 2025 wage base. Additional Medicare tax (0.9%) is not modeled. W‑2 Social Security wages are equal to W‑2 wages for this model.
Choose the tax filing status that you plan on filing with for the 2025 tax year. Don't worry—you can always change it later without having to redo your inputs.
Adjusted Gross Income (AGI): Your AGI is your total annual income from all sources, less above-the-line deductions. Federal AGI is often equal to your State AGI.
Modified AGI (MAGI): Your MAGI is used to determine eligibility for retirement contributions, healthcare premium subsidies, and other tax adjustments. There are multiple variants of MAGI for different benefits, which add certain income deductions back to your AGI.
Federal Taxable Income: This is the value that your Income Tax is calculated from. It's calculated by taking your AGI and subtracting below-the-line deductions such as the Standard Deduction and the QBI Deduction.
Shows inflows (left) and outflows (right): Federal Income Tax, Self‑Employment Tax, W‑2 FICA (employee), IRA Saving, and Take‑home Cash.
Warning: You could be subject to IRS penalties if your total estimated tax payments add up to less than 90% of your total tax liability.