Marginal Ordinary Income Tax Rates
Single
Rate Over To
10%012,400
12%12,40050,400
22%50,400105,700
24%105,700201,775
32%201,775256,225
35%256,225640,600
37%640,600
Head of Household
Rate  Over To 
10%017,700
12%17,70067,450
22%67,450105,700
24%105,700201,775
32%201,775256,200
35%256,200640,600
37%640,600
Married Filing Jointly & Surviving Spouse
Rate  Over To 
10%024,800
12%24,800100,800
22%100,800211,400
24%211,400403,550
32%403,550512,450
35%512,450768,700
37%768,700
Married Filing Separately
Rate  Over To 
10%012,400
12%12,40050,400
22%50,400105,700
24%105,700201,775
32%201,775256,225
35%256,225640,600
37%640,600
Standard Deduction
Filing Status
Amount
Single
$16,100
Head of Household
$24,150
Married Filing Joint/Surviving Spouse
$32,200
Married Filing Separate
$16,100
Additional Standard Deduction if Blind or Age 65+
Amount
Single
$2,050
Head of Household
$2,050
Married Filing Joint/Surviving Spouse
$1,650
Married Filing Separate
$1,650
Standard Deduction For Dependents
Amount
Regular Amount
$1,350
Maximum amount earned plus $450 up to allowed standard deduction based upon filing status
Senior Deduction

The One Bill Beautiful Bill Act (OBBBA) added a new $6,000 deduction for seniors aged 65 or older. The deduction is per eligible spouse.

The deduction is subject to phaseout based upon modified adjusted gross income (MAGI) which for this calculation is Adjusted Gross Income plus foreign income exclusion for citizens living abroad; income from sources within Guam, American Samoa, or Northern Mariana Islands; and income from sources within Puerto Rico.

If MAGI is below the phaseout range, the full deduction is allowed. If MAGI is within the phaseout range, a partial deduction is allowed. If MAGI is above the phaseout range, no deduction is allowed.

No deduction is allowed on a Married Filing Separately return.

The phaseout ranges are as follows:

Filing Status
Phaseout Range
Single
$75,000 - $175,000
Head of Household
$75,000 - $175,000
Married Filing Joint
$150,000 - $250,000
Married Filing Separately
N/A
Child & Other Dependent Tax Credits

The child tax credit is $2,200 per dependent child under 17. The refundable portion is $1,700. The credit is begins to phase-out where modified adjusted gross income exceeds $200,000 ($400,000 in case of a joint return). The child must be a US citizen or resident alien; a SSN holder; and the taxpayer's son, daughter, stepchild or a dependent of any of them or the taxpayer's sibling, stepbrother/sister or descendent of any of them.

The other dependent tax credit is $500 per qualifying dependent of which none is refundable. The dependent must be a US Citizen, national or US resident alien; an SSN, ITIN or ATIN holder; and claimed as the taxpayer's Form 1040 or 1040-SR.

To claim the other depedent credit, the dependent's earned income cannot be more than the allowed amount, $5,200.

Capital Gains - Long Term and Short Term
Type of Asset
Short-Term Tax Rate
Long-Term Tax Rate
Net Investment Income Tax (NIIT)
Collectibles
Ordinary Tax Rates
28%
Potential 3.8%
Depreciation Recapture
Ordinary Tax Rates
25%
Potential 3.8%
Qualified Small Bus Stock
Ordinary Tax Rates
28% after exclusion
Potential 3.8%
Other Capital Assets
Ordinary Tax Rates
(See table below)
Potential 3.8%
LTCG Rate
0%
15%
20%
Single
$1-$49,450
$49,451-$545,500
$545,501+
MFJ
$1-$98,900
$98,901-$613,700
$613,701+
HoH
$1-$66,200
$66,201-$579,600
$579,601+
MFS
$1-$49,450
$49,451-$306,850
$306,851+
Education Credits
Comparison of Education Credits
Lifetime Learning Credit
American Opportunity
• Up to $2,000 per return
• Up to $2,500; up to 40% is refundable
• Maximum rate is 20%
• 100% of first $2,000 plus 25% of next $2,000 expenses
• Available for all years of post-secondary education and for courses to acquire or improve job skills
• Available for four years of college and ONLY if the student had not completed the first four years of post-secondary education before 2026
• Available for an unlimited number of years
• Available only for four tax years per eligible student (including any uears the Hope Credit was claimed)
• Student does not need to be pursuing a program leading to a degree or other recognized education credential
• Student must be pursuing a degree or other recognized education credential
• Available for one or more courses
• Student must be enrolled at least halftime for at least one academic period beginning during 2026 (or the first three months of 2027 if the qualified expenses were paid in 2026)
• Felony drug conviction rule does not apply
• As of the end of 2026, the student must not have been convicted of a felony for possession or distribution of a controlled substance
Phaseout of Education Credits
Filing Status
Lifetime Learning
American Opportunity
Married Filing Joint
$160,000-$180,000
$160,000-$180,000
All Other Statuses
$80,000-$90,000
$80,000-$90,000
IRA Contribution Limits
Regular Contributions
2026 Maximum Contribution
$7,500
Catch-Up Contribution for Taxpayers 50+
2026 Catch-up
$1,100
Phaseout of IRA Deductions
Filing Status
AGI Begin Phaseout
AGI End Phaseout
Single
$81,000
$91,000
Married Filing Jointly
$129,000
$149,000
Married Filing Jointly (spouse not covered by pension plan)
$242,000
$252,000
Married Filing Separately
$0
$10,000
Married Filing Separately (lived apart entire year)
$81,000
$91,000
Head of Household
$81,000
$91,000
Surviving Spouse
$129,000
$149,000
Phaseout of Roth IRA Deductions
Filing Status
AGI Begin Phaseout
AGI End Phaseout
Single
$153,000
$168,000
Married Filing Jointly
$242,000
$252,000
Married Filing Separately
$0
$10,000
Married Filing Separately (lived apart entire year)
$153,000
$168,000
Head of Household
$153,000
$168,000
Surviving Spouse
$242,000
$252,000
401(K) Contribution Limits
Contribution Type
Amount
401(K) Regular Deferral
$24,500
401(K) Catch-up Contribution (age 50+)
$8,000
401(K) Attain age 60-63 during year, add'l
$3,250
Standard Mileage Rates
Mileage Type
Allowance
Business
$0.73/mile
Charitable
$0.14/mile
Medical
$0.21/mile
Depreciation
$0.35/mile
Give us a call
(678) 919-1250
515 Autumn Walk, Canton GA 30114