{"engineVersion":"2.6.2","taxYear":2026,"formYear":2025,"docs":"https://quantcalc.app/docs/federal-tax/","provenance":"https://quantcalc.app/docs/federal-tax/federal-tax-provenance.json","steps":[{"id":"api-field-table","stage":"api","title":"One field table: keys, types, limits and unknown keys","summary":"Every request key is one row of a table: its camelCase name, its snake_case spelling, its type and limits, whether it is required, and where its value goes in the engine input. The parser reads the body through the table; a key that is not a row is refused with 400 rather than ignored, because a field the engine does not model (a tax credit, for example) would otherwise vanish from a figure that looks complete. Keys match case-insensitively; a row sent twice (two spellings or two cases) is refused. GET /api/federal-tax/schema is generated from the same table.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-field-table","lines":[],"convention":"API design, not tax law.","sources":[]},{"id":"api-validate","stage":"api","title":"Value checks and the return's facts","summary":"`age` is required: the filer's age at the end of the year decides the §72(t) additional tax, the §63(f) aged amount and the senior deduction, and no default would be right for everyone. Amounts are finite and at most $100 billion; gains may be negative (a loss), every other amount may not. `spouseAge` is required on a joint return and refused on any other; `mfsLivedApart` only on a separate return.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-validate","lines":[],"convention":"API design, not tax law.","sources":[]},{"id":"api-year-config","stage":"api","title":"The year's parameters","summary":"The 2026 parameters of the filing status (Rev. Proc. 2025-32), the §63(f) aged amount for each 65+ filer (both spouses on a joint return) added to the standard deduction, and the senior deduction's amount, count, threshold and rate when someone qualifies: built by federal_tax_config_for_year (backend/src/federal_tax.c), the same builder /api/simulate uses for its 2026 year and the ACA bridge uses for every year (a test holds the API, the simulation and the builder byte-identical for every status and age pair). Tax year 2025 (taxYear 2025, a build with QCST_WITH_TY2025): the same builder's 2025 rules year (federal_tax_config_rules_year), the law in force for 2025 returns: the Rev. Proc. 2024-40 amounts with P.L. 119-21's changes for 2025, without the provisions that start in 2026. A projection cannot start from 2025.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-year-config","lines":[],"convention":"API design, not tax law: the rules themselves are the deduction steps below.","sources":[]},{"id":"api-projection","stage":"api","title":"The projection: a later tax year","summary":"`projection` {year, inflation or cpiFactor, awiFactor, indexing} asks for a tax year after 2026. The year is 2026 to 2100; exactly one of inflation (the annual CPI assumption, the factor is (1 + inflation) to the power of the years since 2026) or cpiFactor (the cumulative factor itself; 1 for 2026); awiFactor moves the wage-indexed amounts and defaults to the CPI factor; indexing \"law\" (the default) moves each amount the way its statute does, \"inflation\" is the planner's convention before federal engine 2.0. The return is priced on the year's projected amounts, the extended composition reads the year (the SALT schedule, the senior deduction's end, the Roth and RMD clocks), and the response carries rulesYear, projectedYear, projected and a projection block with every amount the return reads, its 2026 and projected values and its rule and sources. A later year has no published Tax Table: without taxTable the rate schedules price line 16; taxTable true with indexing \"law\" is refused (the table's ceiling after 2026 is not established by an official source). Form 2210 is refused with a later year (its due dates and interest rates are 2026's).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-projection","lines":[],"convention":"API design, not tax law: the amounts and their rules are the projection steps below and research/data/federal-tax-indexing.json.","sources":[]},{"id":"api-response","stage":"api","title":"The response: result, Form 1040 lines and sources","summary":"The response carries the inputs as sent, the year's result, one entry per Form 1040 line the composition fills (with the rule that produced it) and, per calculation step on the return, its official sources with the quote that was checked and the date (only the bracket table of the return's filing status). `includeSources: false` leaves the sources out; nothing else changes. `rules.notModeled` lists what the engine does not compute.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-response","lines":[],"convention":"API design, not tax law.","sources":[]},{"id":"api-compute-federal","stage":"api","title":"The state API's computeFederal","summary":"`POST /api/state-tax` with `computeFederal: true` builds one federal return from the state request (each person's wages, as one W-2 with the employer's social security and Medicare withholding, and self-employment income, as a Schedule C net profit; IRA and employer-plan distributions, pensions including Railroad Retirement Tier 2, Roth conversions, gains, gross Social Security, the ages) prices it as `POST /api/federal-tax` files it (line 16 from the Tax Table on the 2026 return and the rate schedules in a projected year, Form 6251, the credits with the ages of their tests; since 2026-10-09) and hands the state engine the return's own figures: the taxable Social Security, line 22 (after the alternative minimum tax and the nonrefundable credits) as the federal tax after credits, line 18 as the tax before them, the refundable credits (the earned income credit and the additional child tax credit, which Alabama subtracts), the NIIT and federal taxable income. The state request's dependents are the return's child credits (2026-11-01; before, they were refused): a dependent 16 or under at the end of the year is a Schedule 8812 line 4 child (childTaxCreditChildren), every other dependent a line 6 other dependent (otherDependents), and a dependent under 19, a full-time student under 24 or a permanently and totally disabled one an earned income credit qualifying child (eitcQualifyingChildren, at most 3). The state engine receives each person's wages plus the self-employment profit less half that person's self-employment tax as earned income (federal engine 2.0 W5; the self-employment and Additional Medicare taxes are not income tax, so the federal tax handed over stays the income tax). A state request carrying anything the federal engine does not model (disability pay, the state request's early-distribution split, IRA basis without the year-end value, disability, a separate filer's blind spouse) or its own federal figures is refused with 400. Off by default: without it the state API is unchanged, byte for byte. Its federal return is POST /api/federal-tax's for the same household, and the planner's year is the same request with taxTable:false (tested); for a single filer the state tax equals the planner's in every jurisdiction that does not read the federal tax (the Alabama, Missouri and Oregon deductions and Nebraska's cap read the return as filed, a few dollars of federal tax apart at most; tested); on a joint return the state API attributes each amount to the spouse who received it (the `spouse` object), which the planner's household model does not, so the two can differ in states with per-spouse rules while the federal return is the same. Blindness and filingStatus qss are priced (§63(f)(2); the joint tables for a qualifying surviving spouse), and so is investment income: the state request's ordinaryIncome (interest, non-qualified dividends) goes on line 2b and its qualifiedDividends on lines 3a and 3b.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-compute-federal","lines":[],"convention":"API design, not tax law: it composes the federal and state engines, the federal return as POST /api/federal-tax files it.","sources":[]},{"id":"api-extended","stage":"api","title":"Extended fields: Schedule A, 8606, 5329, the RMD, blindness, QSS and Form 2210","summary":"Any of the fields for the forms beyond the base return (birthMonth, blindCount, the Schedule A amounts, the retirement-account fields, the RMD fields, the Form 2210 fields) or filingStatus qss runs the extended composition and adds `schedules` to the response; without one, the response is the one the base composition gives. The Form 2210 calendar (due dates and quarterly underpayment rates) is the one the underpayment calculator uses, compared row by row by the drift gate.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#api-extended","lines":[],"convention":"API design: fields that are absent are off, so an existing request's response is unchanged.","sources":[{"rule":"int_rates","url":"https://www.irs.gov/payments/quarterly-interest-rates","title":"Quarterly interest rates","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["Underpayment (corporate and non-corporate) 7% 7% 6% 7%","4th quarter rates - Internal Revenue Bulletin: 2026-36"],"checked":"2026-11-02"}]},{"id":"irc_103_tax_exempt_interest","stage":"income","title":"Tax-exempt interest","summary":"Tax-exempt interest (`taxExemptInterest`) is reported on line 2a and never taxed. It is added to provisional income for the Social Security test (§86(b)(2)(B)) and to the income the IRMAA tiers read, and nowhere else: not to AGI and not to the NIIT's MAGI.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_103_tax_exempt_interest","lines":["1040.2a"],"sources":[{"rule":"tax_exempt_103","url":"https://www.law.cornell.edu/uscode/text/26/103","title":"26 U.S. Code § 103","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income does not include interest on any State or local bond"],"checked":"2026-11-02"},{"rule":"tax_exempt_103","url":"https://www.law.cornell.edu/uscode/text/26/86","title":"26 U.S. Code § 86","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_408d_ira_distribution","stage":"income","title":"IRA distributions and Roth conversions","summary":"A traditional IRA or plan distribution (`iraDistributions`) is ordinary income (§408(d)(1)), line 4b. A Roth conversion (`rothConversion`) is a distribution too and is reported on line 4b with it; the engine taxes it as ordinary income and, unlike the distribution, never charges the §72(t) additional tax on it. On the base return every dollar is taxable; with iraBasis and iraYearEndValue the extended return recovers after-tax basis pro rata (the Form 8606 steps below). The planner has no basis input.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_408d_ira_distribution","lines":["1040.4b"],"sources":[{"rule":"ira_408d","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["any amount paid or distributed out of an individual retirement plan shall be included in gross income by the payee or distributee"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_72_pension","stage":"income","title":"Pensions and annuities","summary":"Pension and annuity income (`pension`) is ordinary income (§72(a)), line 5b, the taxable amount (no exclusion ratio for after-tax contributions is computed: send the taxable part). It is never net investment income, which is right for a plan pension (§401(a), 403(a), 403(b), IRAs, governmental 457(b); §1411(c)(5)). `nonqualifiedAnnuity` (engine 1.5.0) is also on line 5b; unlike a plan pension it is net investment income (Form 8960 line 3).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72_pension","lines":["1040.5b"],"sources":[{"rule":"annuity_72","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income includes any amount received as an annuity"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_86_ss_benefits","stage":"income","title":"Social Security benefits","summary":"Gross Social Security benefits (`socialSecurityGross`, with any Railroad Retirement Tier 1) are line 6a; the taxable part is the next step.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_86_ss_benefits","lines":["1040.6a"],"sources":[{"rule":"ss86","url":"https://www.law.cornell.edu/uscode/text/26/86","title":"26 U.S. Code § 86","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["(A) except as otherwise provided in this paragraph, $25,000, (B) $32,000 in the case of a joint return, and (C) zero","(A) except as otherwise provided in this paragraph, $34,000, (B) $44,000 in the case of a joint return"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_86_pub915_taxable_ss","stage":"income","title":"Taxable Social Security (the Pub 915 worksheet)","summary":"Provisional income is every other income item (IRA, pension, conversions, other income, interest and dividends, and both gain buckets after netting, less an allowed capital loss), plus tax-exempt interest, plus half the benefits. Up to 50% of benefits are taxable above the base amount ($25,000; $32,000 joint; $0 separate) and up to 85% above the adjusted base ($34,000; $44,000 joint; $0 separate), the smaller of the two worksheet amounts. A separate filer who lived apart from the spouse all year (`mfsLivedApart`) uses the single amounts.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_86_pub915_taxable_ss","lines":["1040.6b"],"sources":[{"rule":"ss86","url":"https://www.law.cornell.edu/uscode/text/26/86","title":"26 U.S. Code § 86","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["(A) except as otherwise provided in this paragraph, $25,000, (B) $32,000 in the case of a joint return, and (C) zero","(A) except as otherwise provided in this paragraph, $34,000, (B) $44,000 in the case of a joint return"],"checked":"2026-11-02"},{"rule":"p915","url":"https://www.irs.gov/publications/p915","title":"Publication 915, Social Security and Equivalent Railroad Retirement Benefits","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["$25,000 if you are married filing separately and lived apart from your spouse for all of","$0 if you are married filing separately and lived with your spouse at any time during"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1222_net_short_term","stage":"gains","title":"Net short-term gain or loss","summary":"`shortTermGains` is the year's net short-term gain or loss (Schedule D line 7), signed.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1222_net_short_term","lines":["1040sd.7"],"sources":[{"rule":"cg_1222","url":"https://www.law.cornell.edu/uscode/text/26/1222","title":"26 U.S. Code § 1222","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of short-term capital gains for the taxable year over the short-term capital losses for such year","the excess of long-term capital gains for the taxable year over the long-term capital losses for such year","the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1222_net_long_term","stage":"gains","title":"Net long-term gain or loss","summary":"`longTermGains` is the year's net long-term gain or loss (Schedule D line 15), signed.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1222_net_long_term","lines":["1040sd.15"],"sources":[{"rule":"cg_1222","url":"https://www.law.cornell.edu/uscode/text/26/1222","title":"26 U.S. Code § 1222","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of short-term capital gains for the taxable year over the short-term capital losses for such year","the excess of long-term capital gains for the taxable year over the long-term capital losses for such year","the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1222_net_capital_gain","stage":"gains","title":"Combined net gain or loss","summary":"Schedule D line 16 is the sum of lines 7 and 15. A net loss in one bucket first offsets a net gain in the other; what is left in each bucket is taxed by its own character: short-term as ordinary income, long-term in the capital-gains worksheet.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1222_net_capital_gain","lines":["1040sd.16"],"sources":[{"rule":"cg_1222","url":"https://www.law.cornell.edu/uscode/text/26/1222","title":"26 U.S. Code § 1222","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of short-term capital gains for the taxable year over the short-term capital losses for such year","the excess of long-term capital gains for the taxable year over the long-term capital losses for such year","the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1222_cg_distributions","stage":"gains","title":"Capital-gain distributions (Schedule D line 13)","summary":"Form 1099-DIV box 2a is long-term capital gain whatever the holding period. It enters Schedule D line 13, so it nets with the year's losses and the long-term carryover, and it is net investment income (Form 8960 line 5a). When the return needs no Schedule D the same amount goes on Form 1040 line 7a directly; the return is the same. API capitalGainDistributions (federal engine 2.0).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1222_cg_distributions","lines":["1040sd.13"],"sources":[{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), line 7a/7b and QDCG worksheet","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["your only capital gains are capital gain distributions from form(s) 1099-div, box 2a (or substitute statements)","none of the form(s) 1099-div (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain)","if exception 1 applies, enter your total capital gain distributions (from box 2a of form(s) 1099-div) on line 7a and check the box \"schedule d not required\" on line 7b","use the qualified dividends and capital gain tax worksheet in the line 16 instructions to figure your tax","no. enter the amount from form 1040 or 1040-sr, line 7a"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["capital gain or (loss). attach schedule d if required","schedule d not required"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT - do not file","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["form 1040 (2026) created 8/19/26 draft - do not file","capital gain or (loss). attach schedule d if required . . . . . . . . . check if: schedule d not required"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (2025), capital gain distributions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["enter on schedule d, line 13, the total capital gain distributions paid to you during the year, regardless of how long you held your investment. this amount is shown in box 2a of form 1099-div","if there is an amount in box 2b, include that amount on line 11 of the unrecaptured section 1250 gain worksheet in these instructions if you complete line 19 of schedule d","if there is an amount in box 2d, include that amount on line 4 of the 28% rate gain worksheet in these instructions if you complete line 18 of schedule d"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/p550.pdf","title":"Publication 550 (2025), Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"publication","official":true,"quotes":["capital gain distributions (capital gain dividends) are paid to you or credited to your account by mutual funds (or other regulated investment companies) and real estate investment trusts (reits)","report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or reit","capital gain distributions line 7a, or, if required, schedule d, line 13"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/f1099div.pdf","title":"Form 1099-DIV (Rev. January 2024)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["2a total capital gain distr. 2b unrecap. sec. 1250 gain","2c section 1202 gain 2d collectibles (28%) gain"],"checked":"2026-11-02"},{"rule":"cg_distributions","url":"https://www.irs.gov/pub/irs-pdf/i1099div.pdf","title":"Instructions for Form 1099-DIV (payer)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["enter any amount included in box 2a that is an unrecaptured section 1250 gain from certain depreciable real property","enter any amount included in box 2a that is a section 1202 gain from certain qualified small business stock"],"checked":"2026-11-02"}]},{"id":"irc_1h4_rate28_gain","stage":"gains","title":"28% rate gain (Schedule D line 18)","summary":"The 28% Rate Gain Worksheet: collectibles gain or loss (Form 1099-DIV box 2d included) and the taxable part of the section 1202 exclusion, less the long-term carryover and a net short-term loss, not below zero (IRC §1(h)(4)). API rate28Gain is the worksheet's lines 1 to 4; the engine applies lines 5 to 7.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1h4_rate28_gain","lines":["1040sd.18"],"sources":[{"rule":"cg_28_1250_rates","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S. Code §1(h)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["(e) 25 percent of the excess (if any) of- (i) the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to paragraph (11))), over","(f) 28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph","reduced (but not below zero) by the sum of- (i) unrecaptured section 1250 gain, and (ii) 28-percent rate gain, plus (b) qualified dividend income","the term \"28-percent rate gain\" means the excess (if any) of- (a) the sum of- (i) collectibles gain; and (ii) section 1202 gain"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if you are required to complete the 28% rate gain worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet","if you are required to complete the unrecaptured section 1250 gain worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet","complete the qualified dividends and capital gain tax worksheet in the instructions for form 1040, line 16. don't complete lines 21 and 22 below. no. complete the schedule d tax worksheet in the instructions"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (2025), Schedule D Tax Worksheet","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["complete this worksheet only if line 18 or line 19 of schedule d is more than zero and lines 15 and 16 of schedule d are gains","multiply line 39 by 25% (0.25)","multiply line 42 by 28% (0.28)","unrecaptured section 1250 gain. subtract line 17 from line 13. if zero or less, enter -0-. if more than zero, enter the result here and on schedule d, line 19"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-dft/f1040sd--dft.pdf","title":"Schedule D (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["schedule d (form 1040) 2026"],"checked":"2026-11-02"}]},{"id":"irc_1h6_unrecaptured_1250_gain","stage":"gains","title":"Unrecaptured section 1250 gain (Schedule D line 19)","summary":"The Unrecaptured Section 1250 Gain Worksheet, lines 13 to 18: the gain (Form 1099-DIV box 2b included) less whatever loss is left after the 28% rate gain absorbs the net short-term loss and the long-term carryover, not below zero (IRC §1(h)(6)). API unrecapturedSection1250Gain is line 13.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1h6_unrecaptured_1250_gain","lines":["1040sd.19"],"sources":[{"rule":"cg_28_1250_rates","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S. Code §1(h)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["(e) 25 percent of the excess (if any) of- (i) the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to paragraph (11))), over","(f) 28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph","reduced (but not below zero) by the sum of- (i) unrecaptured section 1250 gain, and (ii) 28-percent rate gain, plus (b) qualified dividend income","the term \"28-percent rate gain\" means the excess (if any) of- (a) the sum of- (i) collectibles gain; and (ii) section 1202 gain"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if you are required to complete the 28% rate gain worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet","if you are required to complete the unrecaptured section 1250 gain worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet","complete the qualified dividends and capital gain tax worksheet in the instructions for form 1040, line 16. don't complete lines 21 and 22 below. no. complete the schedule d tax worksheet in the instructions"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (2025), Schedule D Tax Worksheet","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["complete this worksheet only if line 18 or line 19 of schedule d is more than zero and lines 15 and 16 of schedule d are gains","multiply line 39 by 25% (0.25)","multiply line 42 by 28% (0.28)","unrecaptured section 1250 gain. subtract line 17 from line 13. if zero or less, enter -0-. if more than zero, enter the result here and on schedule d, line 19"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-dft/f1040sd--dft.pdf","title":"Schedule D (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["schedule d (form 1040) 2026"],"checked":"2026-11-02"}]},{"id":"sched_d_netting_floor_0","stage":"gains","title":"Line 7a: the net gain, or a net loss","summary":"Line 7a is the net gain after netting. When the year's combined result is a loss, line 7a is the loss allowed on Schedule D line 21: up to $3,000 ($1,500 married filing separately; §1211(b)), a statutory amount that is not indexed, and the rest carries forward (see the capital-loss steps). Since engine 1.3.0 this applies on every return; before it, a net loss entered as 0 unless capitalLossRules was on. capitalLossRules: false keeps that old floor as an explicit opt-out, which is not the law.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#sched_d_netting_floor_0","lines":["1040.7a"],"sources":[{"rule":"cap_loss","url":"https://www.law.cornell.edu/uscode/text/26/1211","title":"26 U.S. Code § 1211","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the lower of- (1) $3,000 ($1,500 in the case of a married individual filing a separate return)"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_61_other_income","stage":"income","title":"Other ordinary income","summary":"`otherOrdinaryIncome` is ordinary income that is neither an IRA distribution, a conversion nor a pension, and is not net investment income, for example taxable jury-duty pay or prizes (Schedule 1 line 8 items that are not investment income). Rents, royalties, partnership, S corporation and trust income and nonqualified annuities are net investment income: they have no field, and sent here they would escape the NIIT. It goes to line 8. Interest and dividends are not this field: send them as taxableInterest and ordinaryDividends / qualifiedDividends, which count toward the NIIT and the capital-gains worksheet.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61_other_income","lines":["1040.8"],"sources":[{"rule":"gross_income_61","url":"https://www.law.cornell.edu/uscode/text/26/61","title":"26 U.S. Code § 61","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income means all income from whatever source derived"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_469_passive_loss","stage":"income","title":"Rental real estate: the passive activity loss limit (Form 8582)","summary":"The rental real estate amounts (rentalNetIncome, the sum of Schedule E line 21 over the properties, and the prior years' unallowed loss) are one group on Form 8582: line 1 with active participation, line 2 without. When line 3 (the net) is zero or more, every loss is allowed. Otherwise, with active participation, the special allowance is up to $25,000, less half of modified AGI over $100,000 (line 6: AGI without the rental amounts, the taxable social security and the deductible part of self-employment tax); a married filer filing separately gets $12,500 over $50,000 after living apart all year and none after living with the spouse at any time. The loss not allowed is carried to the next year. A real estate professional's rentals are not passive: the year's amount is allowed in full and a prior unallowed loss offsets only that rental income.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_469_passive_loss","lines":["8582.3","8582.6","8582.8","8582.9","8582.11","8582.2d"],"sources":[{"rule":"passive_loss_469","url":"https://www.law.cornell.edu/uscode/text/26/469","title":"26 U.S. Code § 469","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Except as provided in paragraph (7), the term \"passive activity\" includes any rental activity.","The aggregate amount to which paragraph (1) applies for any taxable year shall not exceed $25,000.","the $25,000 amount under paragraph (2) shall be reduced (but not below zero) by 50 percent of the amount by which the adjusted gross income of the taxpayer for the taxable year exceeds $100,000","(i) any amount includible in gross income under section 86,","(iii) the amounts allowable as a deduction under sections 219, 221, and 250, and (iv) any passive activity loss or any loss allowable by reason of subsection (c)(7)","(i) \"$12,500\" for \"$25,000\" each place it appears, (ii) \"$50,000\" for \"$100,000\" in paragraph (3)(A)","does not live apart from his spouse at all times during such taxable year","such interest (including any interest of the spouse of the individual) is less than 10 percent (by value) of all interests in such activity","paragraph (2) shall not apply to any rental real estate activity of such taxpayer for such taxable year","such taxpayer performs more than 750 hours of services during the taxable year in real property trades or businesses in which the taxpayer materially participates","any unused deduction allocable to such activity under subsection (b) shall be offset against the income from such activity for the taxable year","any such deduction or credit remaining after the application of subparagraphs (A) and (B) shall continue to be treated as arising from a passive activity","any loss or credit from an activity which is disallowed under subsection (a) shall be treated as a deduction or credit allocable to such activity in the next taxable year"],"checked":"2026-11-02"},{"rule":"form_8582","url":"https://www.irs.gov/pub/irs-pdf/f8582.pdf","title":"Form 8582 (2025), Passive Activity Loss Limitations","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Prior years' unallowed losses (enter the amount from Part IV, column (c))","Combine lines 1a, 1b, and 1c","If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c or 2c.","If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II. Instead, go to line 10.","Enter the smaller of the loss on line 1d or the loss on line 3","Enter $150,000. If married filing separately, see instructions","Enter modified adjusted gross income, but not less than zero. See instructions","Multiply line 7 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions","Add the income, if any, on lines 1a and 2a and enter the total","Total losses allowed from all passive activities for 2025. Add lines 9 and 10."],"checked":"2026-11-02"},{"rule":"form_8582","url":"https://www.irs.gov/pub/irs-pdf/i8582.pdf","title":"Instructions for Form 8582 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Married persons filing separate returns who lived apart from their spouses at all times during the year must enter $75,000 on line 5 instead of $150,000.","To figure modified adjusted gross income, combine all the amounts used to figure adjusted gross income, except don't take into account:","Any passive activity loss as defined in section 469(d) (1),","Any rental real estate loss allowed to real estate professionals","The taxable amount of social security and tier 1 railroad retirement benefits,","Deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans,","The deduction allowed for the deductible part of self-employment taxes,","The student loan interest deduction, or","Don't enter more than $12,500 on line 8 if you're married filing a separate return and you and your spouse lived apart at all times during the year.","The special allowance isn't available if you were married, are filing a separate return for the year, and lived with your spouse at any time during the year.","Your adjusted gross income on line 11 of Form 1040 or Form 1040-SR is $92,000 and you have taxable social security benefits of $5,500 on line 6b. Your modified adjusted gross income is $86,500 ($92,000 - $5,500).","PALs not allowed in the current year are carried forward until they're allowed either against passive activity income; against the special allowance, if applicable;","If a rental real estate activity isn't a passive activity for the current year, any prior-year unallowed loss is treated as a loss from a former passive activity.","A prior-year unallowed loss from a former passive activity is allowed to the extent of current year income from the activity.","If current year net income from the activity is more than the prior-year unallowed loss from the activity, enter the prior-year unallowed loss and the current year net income up to the amount of prior-year unallowed loss on Form 8582.","If the activity has a net loss for the current year, enter the prior-year unallowed loss (but not the current year loss) on Form 8582."],"checked":"2026-11-02"}]},{"id":"irc_469_sched_e_rental","stage":"income","title":"Rental real estate income or loss (Schedule E line 26, Schedule 1 line 5)","summary":"Schedule E line 26 is the rental net income, or the loss Form 8582 allows; it goes to Schedule 1 line 5 and Form 1040 line 8, so into AGI, the provisional income of the social security worksheet, the IRMAA MAGI and every AGI floor and phase-out. It is not self-employment income and not qualified business income (the rental safe harbor of Rev. Proc. 2019-38 is not modelled). With a K-1 amount on the return (federal engine 2.3), Schedule 1 line 5 is Schedule E line 41.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_469_sched_e_rental","lines":["1040se.26","1040s1.5"],"sources":[{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/f1040se.pdf","title":"Schedule E (Form 1040) 2025, Supplemental Income and Loss","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Subtract line 20 from line 3 (rents) and/or 4 (royalties).","Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions)","Income. Add positive amounts shown on line 21. Do not include any losses","Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here","Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, and IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040), line 5. Otherwise, include this amount in the total on line 41 on page 2","Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040), line 5"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/i1040se.pdf","title":"Instructions for Schedule E (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["You may need to complete Form 8582 to figure the amount of loss, if any, to enter on line 22.","If you have an unallowed rental real estate loss from a prior year that after completing Form 8582 you can include this year, include that loss on line 22."],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025), Net Investment Income Tax","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Rental real estate, royalties, partnerships, S corporations, trusts, trades or businesses, etc. (see instructions)"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Line 4a of Form 8960 includes total income reported on Schedules C, E, and F (Form 1040) that is potentially subject to NIIT.","Schedule 1 (Form 1040), line 5.","Conversely, a total loss comprised of both passive and nonpassive income is entered as a negative on line 4a."],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code § 1402","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["there shall be excluded rentals from real estate and from personal property leased with the real estate"],"checked":"2026-11-02"}]},{"id":"irc_61a1_wages","stage":"work","title":"Wages (Form 1040 line 1a)","summary":"Form W-2 box 1 of the filer and, on a joint return, the spouse: ordinary income on line 1a (line 1z). Wages count in AGI, provisional income for Social Security and every MAGI; they are not net investment income. API wages, spouseWages (federal engine 2.0).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61a1_wages","lines":["1040.1a","1040.1z"],"sources":[{"rule":"wages_1040_line1a","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["total amount from form(s) w-2, box 1 (see instructions)"],"checked":"2026-11-02"},{"rule":"wages_1040_line1a","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["total amount from form(s) w-2, box 1 (see instructions)","add lines 1a through 1h"],"checked":"2026-11-02"},{"rule":"fica_rates","url":"https://www.law.cornell.edu/uscode/text/26/3101","title":"26 U.S. Code § 3101","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a tax equal to 6.2 percent of the wages","a tax equal to 1.45 percent of the wages","a tax equal to 0.9 percent of wages","in the case of a joint return, $250,000","in any other case, $200,000"],"checked":"2026-11-02"}]},{"id":"irc_61a2_business_income","stage":"work","title":"Business income (Schedule 1 line 3)","summary":"The net profit or loss of the self-employed business (Schedule C line 31, or a partnership's self-employment earnings): ordinary income through Schedule 1 line 3 and Form 1040 line 8. A loss offsets other income. API selfEmploymentIncome.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61a2_business_income","lines":["1040s1.3"],"sources":[{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401(a)-(b)(1)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year","a tax equal to 2.9 percent of the amount of the self-employment income for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code §1402","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the net earnings from self-employment, if such net earnings for the taxable year are less than $400","that part of the net earnings from self-employment which is in excess of (i) an amount equal to the contribution and benefit base (as determined under section 230 of the social security act) which is effective for the calendar year in which such taxable year begins, minus (ii) the amount of the wages paid to such individual during such taxable years","one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 for such year (determined without regard to the rate imposed under paragraph (2) of section 1401(b))"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code §164(f)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["there shall be allowed as a deduction for the taxable year an amount equal to one-half of the taxes imposed by section 1401 (other than the taxes imposed by section 1401(b)(2)) for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/f1040sse.pdf","title":"Schedule SE (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if line 3 is more than zero, multiply line 3 by 92.35% (0.9235)","combine lines 4a and 4b. if less than $400, stop; you don't owe self-employment tax","subtract line 8d from line 7. if zero or less, enter -0- here and on line 10 and go to line 11","multiply the smaller of line 6 or line 9 by 12.4% (0.124)","multiply line 6 by 2.9% (0.029)","enter here and on schedule 2 (form 1040), line 4","deduction for one-half of self-employment tax. multiply line 12 by 50% (0.50). enter here and on schedule 1 (form 1040), line 15"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-dft/f1040sse--dft.pdf","title":"Schedule SE (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["maximum amount of combined wages and self-employment earnings subject to social security tax or $184,500 the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2026"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 1 line 15","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["line 15 deductible part of self-employment tax if you were self-employed and owe self-employment tax, fill in schedule se to figure the amount of your deduction"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an amount equal to 20 percent of the excess (if any) of- (a) the taxable income of the taxpayer for the taxable year, over (b) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year","20 percent of the taxpayer's qualified business income with respect to the qualified trade or business"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/f8995.pdf","title":"Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $197,300 ($394,600 if married filing jointly)"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f8995--dft.pdf","title":"Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $201,750 ($201,775 if married filing separately; $403,500 if married filing jointly)","qualified business income component. multiply line 4 by 20% (0.20)","enter your net capital gain, if any, increased by any qualified dividends","income limitation. multiply line 13 by 20% (0.20)","minimum deduction for active qualified business income (see instructions)","qualified business income deduction. enter the greater of line 15 or line 16"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["qualified business income deduction from form 8995 or form 8995-a"],"checked":"2026-11-02"}]},{"id":"irc_1401_se_tax","stage":"work","title":"Self-employment tax (Schedule SE, Schedule 2 line 4)","summary":"Per person: 92.35% of the net profit (line 4a); under the floor no tax. Social security at 12.4% on the net earnings up to the wage base less the person's W-2 social security wages (lines 7 to 10), Medicare at 2.9% on all of them (line 11). Line 12 goes to Schedule 2 line 4.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1401_se_tax","lines":["1040sse.12","1040sse.12.spouse","1040s2.4"],"sources":[{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401(a)-(b)(1)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year","a tax equal to 2.9 percent of the amount of the self-employment income for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code §1402","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the net earnings from self-employment, if such net earnings for the taxable year are less than $400","that part of the net earnings from self-employment which is in excess of (i) an amount equal to the contribution and benefit base (as determined under section 230 of the social security act) which is effective for the calendar year in which such taxable year begins, minus (ii) the amount of the wages paid to such individual during such taxable years","one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 for such year (determined without regard to the rate imposed under paragraph (2) of section 1401(b))"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code §164(f)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["there shall be allowed as a deduction for the taxable year an amount equal to one-half of the taxes imposed by section 1401 (other than the taxes imposed by section 1401(b)(2)) for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/f1040sse.pdf","title":"Schedule SE (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if line 3 is more than zero, multiply line 3 by 92.35% (0.9235)","combine lines 4a and 4b. if less than $400, stop; you don't owe self-employment tax","subtract line 8d from line 7. if zero or less, enter -0- here and on line 10 and go to line 11","multiply the smaller of line 6 or line 9 by 12.4% (0.124)","multiply line 6 by 2.9% (0.029)","enter here and on schedule 2 (form 1040), line 4","deduction for one-half of self-employment tax. multiply line 12 by 50% (0.50). enter here and on schedule 1 (form 1040), line 15"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-dft/f1040sse--dft.pdf","title":"Schedule SE (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["maximum amount of combined wages and self-employment earnings subject to social security tax or $184,500 the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2026"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 1 line 15","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["line 15 deductible part of self-employment tax if you were self-employed and owe self-employment tax, fill in schedule se to figure the amount of your deduction"],"checked":"2026-11-02"},{"rule":"fica_rates","url":"https://www.law.cornell.edu/uscode/text/26/3101","title":"26 U.S. Code § 3101","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a tax equal to 6.2 percent of the wages","a tax equal to 1.45 percent of the wages","a tax equal to 0.9 percent of wages","in the case of a joint return, $250,000","in any other case, $200,000"],"checked":"2026-11-02"},{"rule":"ss_wage_base","url":"https://www.ssa.gov/oact/cola/cbb.html","title":"Contribution and benefit base","publisher":"Social Security Administration, Office of the Chief Actuary","kind":"agency_page","official":true,"quotes":["For earnings in 2026, this base is $184,500","The OASDI tax rate for self-employment income in 2026 is 12.4 percent"],"checked":"2026-10-15"}]},{"id":"irc_164f_half_se_tax","stage":"work","title":"Deductible part of self-employment tax (Schedule 1 line 15)","summary":"Half of Schedule SE line 12 (the Additional Medicare Tax is not part of it) is an adjustment to income (IRC §164(f)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_164f_half_se_tax","lines":["1040s1.15"],"sources":[{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401(a)-(b)(1)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year","a tax equal to 2.9 percent of the amount of the self-employment income for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code §1402","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the net earnings from self-employment, if such net earnings for the taxable year are less than $400","that part of the net earnings from self-employment which is in excess of (i) an amount equal to the contribution and benefit base (as determined under section 230 of the social security act) which is effective for the calendar year in which such taxable year begins, minus (ii) the amount of the wages paid to such individual during such taxable years","one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 for such year (determined without regard to the rate imposed under paragraph (2) of section 1401(b))"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code §164(f)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["there shall be allowed as a deduction for the taxable year an amount equal to one-half of the taxes imposed by section 1401 (other than the taxes imposed by section 1401(b)(2)) for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/f1040sse.pdf","title":"Schedule SE (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if line 3 is more than zero, multiply line 3 by 92.35% (0.9235)","combine lines 4a and 4b. if less than $400, stop; you don't owe self-employment tax","subtract line 8d from line 7. if zero or less, enter -0- here and on line 10 and go to line 11","multiply the smaller of line 6 or line 9 by 12.4% (0.124)","multiply line 6 by 2.9% (0.029)","enter here and on schedule 2 (form 1040), line 4","deduction for one-half of self-employment tax. multiply line 12 by 50% (0.50). enter here and on schedule 1 (form 1040), line 15"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-dft/f1040sse--dft.pdf","title":"Schedule SE (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["maximum amount of combined wages and self-employment earnings subject to social security tax or $184,500 the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2026"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 1 line 15","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["line 15 deductible part of self-employment tax if you were self-employed and owe self-employment tax, fill in schedule se to figure the amount of your deduction"],"checked":"2026-11-02"}]},{"id":"irc_404_sep_deduction","stage":"work","title":"Self-employed retirement plan deduction (Schedule 1 line 16)","summary":"The deductible SEP, SIMPLE or qualified-plan contribution for the self-employed person, as the caller figured it (API sepContribution). It reduces AGI and the business's qualified business income.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_404_sep_deduction","lines":["1040s1.16"],"sources":[{"rule":"qbi_8995","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an amount equal to 20 percent of the excess (if any) of- (a) the taxable income of the taxpayer for the taxable year, over (b) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year","20 percent of the taxpayer's qualified business income with respect to the qualified trade or business"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/f8995.pdf","title":"Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $197,300 ($394,600 if married filing jointly)"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f8995--dft.pdf","title":"Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $201,750 ($201,775 if married filing separately; $403,500 if married filing jointly)","qualified business income component. multiply line 4 by 20% (0.20)","enter your net capital gain, if any, increased by any qualified dividends","income limitation. multiply line 13 by 20% (0.20)","minimum deduction for active qualified business income (see instructions)","qualified business income deduction. enter the greater of line 15 or line 16"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["qualified business income deduction from form 8995 or form 8995-a"],"checked":"2026-11-02"}]},{"id":"irc_162l_se_health_insurance","stage":"work","title":"Self-employed health insurance deduction (Schedule 1 line 17)","summary":"The premiums, limited to the earned income from the business: the net profit less half the self-employment tax and the plan deduction (IRC §162(l)(2)(A)). It reduces AGI and qualified business income. The premium tax credit interaction is not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_162l_se_health_insurance","lines":["1040s1.17"],"sources":[{"rule":"qbi_8995","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an amount equal to 20 percent of the excess (if any) of- (a) the taxable income of the taxpayer for the taxable year, over (b) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year","20 percent of the taxpayer's qualified business income with respect to the qualified trade or business"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/f8995.pdf","title":"Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $197,300 ($394,600 if married filing jointly)"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f8995--dft.pdf","title":"Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $201,750 ($201,775 if married filing separately; $403,500 if married filing jointly)","qualified business income component. multiply line 4 by 20% (0.20)","enter your net capital gain, if any, increased by any qualified dividends","income limitation. multiply line 13 by 20% (0.20)","minimum deduction for active qualified business income (see instructions)","qualified business income deduction. enter the greater of line 15 or line 16"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["qualified business income deduction from form 8995 or form 8995-a"],"checked":"2026-11-02"}]},{"id":"irc_62a_adjustments","stage":"agi","title":"Adjustments to income (Form 1040 line 10)","summary":"Schedule 1 line 26: the half-SE-tax, plan and health-insurance deductions. AGI (line 11a) is total income (line 9) less line 10. The other Schedule 1 Part II adjustments are not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_62a_adjustments","lines":["1040.10"],"sources":[{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401(a)-(b)(1)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year","a tax equal to 2.9 percent of the amount of the self-employment income for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code §1402","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the net earnings from self-employment, if such net earnings for the taxable year are less than $400","that part of the net earnings from self-employment which is in excess of (i) an amount equal to the contribution and benefit base (as determined under section 230 of the social security act) which is effective for the calendar year in which such taxable year begins, minus (ii) the amount of the wages paid to such individual during such taxable years","one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 for such year (determined without regard to the rate imposed under paragraph (2) of section 1401(b))"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code §164(f)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["there shall be allowed as a deduction for the taxable year an amount equal to one-half of the taxes imposed by section 1401 (other than the taxes imposed by section 1401(b)(2)) for such taxable year"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/f1040sse.pdf","title":"Schedule SE (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if line 3 is more than zero, multiply line 3 by 92.35% (0.9235)","combine lines 4a and 4b. if less than $400, stop; you don't owe self-employment tax","subtract line 8d from line 7. if zero or less, enter -0- here and on line 10 and go to line 11","multiply the smaller of line 6 or line 9 by 12.4% (0.124)","multiply line 6 by 2.9% (0.029)","enter here and on schedule 2 (form 1040), line 4","deduction for one-half of self-employment tax. multiply line 12 by 50% (0.50). enter here and on schedule 1 (form 1040), line 15"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-dft/f1040sse--dft.pdf","title":"Schedule SE (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["maximum amount of combined wages and self-employment earnings subject to social security tax or $184,500 the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2026"],"checked":"2026-11-02"},{"rule":"se_tax","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 1 line 15","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["line 15 deductible part of self-employment tax if you were self-employed and owe self-employment tax, fill in schedule se to figure the amount of your deduction"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an amount equal to 20 percent of the excess (if any) of- (a) the taxable income of the taxpayer for the taxable year, over (b) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year","20 percent of the taxpayer's qualified business income with respect to the qualified trade or business"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/f8995.pdf","title":"Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $197,300 ($394,600 if married filing jointly)"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f8995--dft.pdf","title":"Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $201,750 ($201,775 if married filing separately; $403,500 if married filing jointly)","qualified business income component. multiply line 4 by 20% (0.20)","enter your net capital gain, if any, increased by any qualified dividends","income limitation. multiply line 13 by 20% (0.20)","minimum deduction for active qualified business income (see instructions)","qualified business income deduction. enter the greater of line 15 or line 16"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["qualified business income deduction from form 8995 or form 8995-a"],"checked":"2026-11-02"}]},{"id":"irc_3101b2_addl_medicare","stage":"work","title":"Additional Medicare Tax (Form 8959)","summary":"0.9% of the Medicare wages over the threshold of the filing status (Part I) and of the self-employment income over the threshold less those wages (Part II). TY2025 puts the total on Schedule 2 line 11; the 2026 draft sends the wages part to Schedule 2 line 17b and the self-employment part to line 11. Part V: the withholding above 1.45% of the Medicare wages goes to Form 1040 line 25c (withholding, not the tax).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_3101b2_addl_medicare","lines":["8959.7","8959.13","1040s2.11","8959.24"],"sources":[{"rule":"addl_medicare_8959","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 0.9 percent of the self-employment income for such taxable year which is in excess of- (i) in the case of a joint return, $250,000","the amounts under clause (i), (ii), or (iii) (whichever is applicable) of subparagraph (a) shall be reduced (but not below zero) by the amount of wages taken into account in determining the tax imposed under section 3121(b)(2) with respect to the taxpayer"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/f8959.pdf","title":"Form 8959 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["also include this amount on schedule 2 (form 1040), line 11","self-employment income from schedule se (form 1040), part i, line 6. if you had a loss, enter -0-","married filing jointly . . . . . . . . . . . . . . . $250,000 married filing separately . . . . . . . . . . . . . . $125,000 single, head of household, or qualifying surviving spouse . . . $200,000"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/i8959.pdf","title":"Instructions for Form 8959 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["medicare wages and self-employment income are combined to determine if your income exceeds the threshold. a self-employment loss shouldn't be considered for purposes of this tax","the $130,000 of kathleen's wages reduces liam's self-employment income threshold to $120,000 ($250,000 threshold minus the $130,000 of wages, as figured on lines 9 through 11 of form 8959)"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-dft/i8959--dft.pdf","title":"Instructions for Form 8959 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_instructions","official":true,"quotes":["filing status threshold amount married filing jointly $250,000 married filing separately $125,000 single $200,000 head of household $200,000 qualifying surviving spouse $200,000"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["11 additional medicare tax. attach form 8959"],"checked":"2026-11-02"},{"rule":"fica_rates","url":"https://www.law.cornell.edu/uscode/text/26/3101","title":"26 U.S. Code § 3101","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a tax equal to 6.2 percent of the wages","a tax equal to 1.45 percent of the wages","a tax equal to 0.9 percent of wages","in the case of a joint return, $250,000","in any other case, $200,000"],"checked":"2026-11-02"}]},{"id":"irc_31b_excess_ss","stage":"work","title":"Excess social security tax withheld (Schedule 3 line 11)","summary":"Per person with more than one employer: the social security tax withheld above 6.2% of the wage base. It is a payment (Schedule 3 Part II), not a reduction of the total tax on line 24. API socialSecurityWithheld, employerCount.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_31b_excess_ss","lines":["1040s3.11"],"sources":[{"rule":"excess_ss_credit","url":"https://www.law.cornell.edu/uscode/text/26/6413","title":"26 U.S. Code §6413(c)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["if by reason of an employee receiving wages from more than one employer during a calendar year the wages received by him during such year exceed the contribution and benefit base"],"checked":"2026-11-02"},{"rule":"excess_ss_credit","url":"https://www.law.cornell.edu/uscode/text/26/31","title":"26 U.S. Code §31(b)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the amount allowed as a credit under such regulations shall, for purposes of this subtitle, be considered an amount withheld at source as tax under section 3402"],"checked":"2026-11-02"},{"rule":"excess_ss_credit","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 3 line 11","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["line 11 excess social security and tier 1 rrta tax withheld if you, or your spouse if filing a joint return, had more than one employer for 2025 and total wages of more than $176,100","you can take a credit on this line for the amount withheld in excess of $10,918.20. but if any one employer withheld more than $10,918.20, you can't claim the excess on your return","figure this amount separately for you and your spouse"],"checked":"2026-11-02"},{"rule":"excess_ss_credit","url":"https://www.irs.gov/pub/irs-pdf/f1040s3.pdf","title":"Schedule 3 (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["excess social security and tier 1 rrta tax withheld"],"checked":"2026-11-02"},{"rule":"ss_wage_base","url":"https://www.ssa.gov/oact/cola/cbb.html","title":"Contribution and benefit base","publisher":"Social Security Administration, Office of the Chief Actuary","kind":"agency_page","official":true,"quotes":["For earnings in 2026, this base is $184,500","The OASDI tax rate for self-employment income in 2026 is 12.4 percent"],"checked":"2026-10-15"}]},{"id":"ssa_payroll_fica","stage":"work","title":"Employee payroll taxes (FICA), a standalone function","summary":"The employee's social security (6.2% of the W-2 social security wages up to the wage base), Medicare (1.45%) and the Additional Medicare Tax the employer withholds above its withholding threshold (IRC §3102(f)). Used by the paycheck calculators; not part of Form 1040.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#ssa_payroll_fica","lines":[],"sources":[{"rule":"fica_rates","url":"https://www.law.cornell.edu/uscode/text/26/3101","title":"26 U.S. Code § 3101","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a tax equal to 6.2 percent of the wages","a tax equal to 1.45 percent of the wages","a tax equal to 0.9 percent of wages","in the case of a joint return, $250,000","in any other case, $200,000"],"checked":"2026-11-02"},{"rule":"ss_wage_base","url":"https://www.ssa.gov/oact/cola/cbb.html","title":"Contribution and benefit base","publisher":"Social Security Administration, Office of the Chief Actuary","kind":"agency_page","official":true,"quotes":["For earnings in 2026, this base is $184,500","The OASDI tax rate for self-employment income in 2026 is 12.4 percent"],"checked":"2026-10-15"},{"rule":"addl_medicare_8959","url":"https://www.law.cornell.edu/uscode/text/26/1401","title":"26 U.S. Code §1401","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["a tax equal to 0.9 percent of the self-employment income for such taxable year which is in excess of- (i) in the case of a joint return, $250,000","the amounts under clause (i), (ii), or (iii) (whichever is applicable) of subparagraph (a) shall be reduced (but not below zero) by the amount of wages taken into account in determining the tax imposed under section 3121(b)(2) with respect to the taxpayer"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/f8959.pdf","title":"Form 8959 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["also include this amount on schedule 2 (form 1040), line 11","self-employment income from schedule se (form 1040), part i, line 6. if you had a loss, enter -0-","married filing jointly . . . . . . . . . . . . . . . $250,000 married filing separately . . . . . . . . . . . . . . $125,000 single, head of household, or qualifying surviving spouse . . . $200,000"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/i8959.pdf","title":"Instructions for Form 8959 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["medicare wages and self-employment income are combined to determine if your income exceeds the threshold. a self-employment loss shouldn't be considered for purposes of this tax","the $130,000 of kathleen's wages reduces liam's self-employment income threshold to $120,000 ($250,000 threshold minus the $130,000 of wages, as figured on lines 9 through 11 of form 8959)"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-dft/i8959--dft.pdf","title":"Instructions for Form 8959 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_instructions","official":true,"quotes":["filing status threshold amount married filing jointly $250,000 married filing separately $125,000 single $200,000 head of household $200,000 qualifying surviving spouse $200,000"],"checked":"2026-11-02"},{"rule":"addl_medicare_8959","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["11 additional medicare tax. attach form 8959"],"checked":"2026-11-02"}]},{"id":"ssa_403f_earnings_test","stage":"work","title":"The Social Security earnings test, a standalone function","summary":"Before the year of full retirement age, $1 of benefits withheld for every $2 of earnings over the lower exempt amount; in that year $1 for every $3 over the upper amount, counting only earnings before the month of full retirement age. Benefits are withheld in whole months. The planner applies it to each person's wages and net self-employment earnings in the years before that person's full retirement age, pays the withheld excess back the next year and, from full retirement age, refigures the benefit for the months withheld (federal engine 2.0).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#ssa_403f_earnings_test","lines":[],"sources":[{"rule":"earnings_test_rules","url":"https://www.ssa.gov/oact/cola/rtea.html","title":"SSA OACT: Exempt amounts under the earnings test","publisher":"Social Security Administration","kind":"agency_page","official":true,"quotes":["we withhold $1 in benefits for every $2 of earnings in excess of the lower exempt amount","we withhold $1 in benefits for every $3 of earnings in excess of the higher exempt amount","these exempt amounts generally increase annually with increases in the national average wage index","this higher exempt amount applies only to earnings made in months prior to the month of nra attainment"],"checked":"2026-11-02"},{"rule":"earnings_test_rules","url":"https://www.ssa.gov/benefits/retirement/planner/whileworking.html","title":"SSA: Receiving Benefits While Working","publisher":"Social Security Administration","kind":"agency_page","official":true,"quotes":["we count only the wages you make from your job or your net profit if you're self-employed","we don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits","for 2026, that limit is $24,480","in 2026, this limit on your earnings is $65,160"],"checked":"2026-11-02"},{"rule":"earnings_test_rules","url":"https://www.law.cornell.edu/uscode/text/42/403","title":"42 U.S. Code §403(f)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an individual's excess earnings for a taxable year shall be 33⅓ percent of his earnings for such year in excess of the product of the applicable exempt amount","or 50 percent of his earnings for such year in excess of such product in the case of any other individual","an individual's earnings for a taxable year shall be (i) the sum of his wages for services rendered in such year and his net earnings from self-employment for such year, minus (ii) any net loss from self-employment for such year"],"checked":"2026-11-02"},{"rule":"earn_test","url":"https://www.ssa.gov/oact/cola/rtea.html","title":"Exempt amounts under the earnings test","publisher":"Social Security Administration, Office of the Chief Actuary","kind":"agency_page","official":true,"quotes":["the annual exempt amount in 2026 is $24,480","For people attaining NRA in 2026, the annual exempt amount is $65,160"],"checked":"2026-10-15"}]},{"id":"irc_61_total_income","stage":"agi","title":"Total income","summary":"Line 9 adds lines 4b, 5b, 6b, 7a and 8.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61_total_income","lines":["1040.9"],"sources":[{"rule":"gross_income_61","url":"https://www.law.cornell.edu/uscode/text/26/61","title":"26 U.S. Code § 61","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income means all income from whatever source derived"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_62_agi_no_adjustments","stage":"agi","title":"Adjusted gross income","summary":"No adjustment to income (Schedule 1 Part II) is modelled, so AGI (line 11a) equals total income. AGI is also the MAGI of the NIIT and of the senior deduction's phase-out.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_62_agi_no_adjustments","lines":["1040.11a"],"sources":[{"rule":"agi_62","url":"https://www.law.cornell.edu/uscode/text/26/62","title":"26 U.S. Code § 62","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in the case of an individual, gross income minus the following deductions"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_63c_63f_standard_deduction","stage":"deductions","title":"Standard deduction and the §63(f) aged amount","summary":"The 2026 standard deduction of the filing status ($16,100 single and separate, $32,200 joint, $24,150 head of household), plus the §63(f) additional amount for each filer 65 or older at the end of the year ($2,050 unmarried, $1,650 per spouse married; on a joint return each spouse 65+ adds one). Itemizing (Schedule A) and the blindness amount are on the extended return (the steps below); the planner always takes the standard deduction and has no blindness input. Someone born on January 1 counts as 65 at the end of the year they reach 64: the IRS counts age 65 from the day before the 65th birthday (birthDay with birthMonth, and spouseBirthMonth with spouseBirthDay on a joint return; /api/simulate reads birthDay too; engine 1.5.0).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63c_63f_standard_deduction","lines":["1040.12e"],"sources":[{"rule":"std_ded","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A)) $32,200 Heads of Households (§ 1(j)(2)(B)) $24,150","(§ 1(j)(2)(C)) $16,100 Married Individuals Filing Separate Returns (§ 1(j)(2)(D)) $16,100"],"checked":"2026-11-02"},{"rule":"aged_63f","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the additional standard deduction amount under § 63(f) for the aged or the blind is $1,650. The additional standard deduction amount is increased to $2,050 if the individual is also unmarried and not a surviving spouse"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/p554.pdf","title":"Publication 554 (2025), Tax Guide for Seniors","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["You are considered age 65 on the day before"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you were born on January 1, 1961, you are considered to be age 65 at the end of 2025","A person is considered to reach age 65 on the day before the person's 65th birthday"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["were born before January 2, 1961"],"checked":"2026-11-02"}]},{"id":"irc_63f2_blind","stage":"deductions","title":"Additional standard deduction for blindness","summary":"§63(f)(2): an additional amount for a filer who is blind at the end of the year, and for the spouse on a joint return: $2,050 if unmarried (single or head of household) and $1,650 if married or a qualifying surviving spouse (Rev. Proc. 2025-32). Added to the standard deduction; lost when the return itemizes. Request field blindCount.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63f2_blind","lines":["1040.12e.blind"],"sources":[{"rule":"blind_63f2","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["(2) Additional amount for blindThe taxpayer shall be entitled to an additional amount of $600- (A) for himself if he is blind at the close of the taxable year"],"checked":"2026-11-02"},{"rule":"blind_63f2","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the additional standard deduction amount under § 63(f) for the aged or the blind is $1,650. The additional standard deduction amount is increased to $2,050 if the individual is also unmarried and not a surviving spouse"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_151d5_senior_deduction","stage":"deductions","title":"The senior deduction (Schedule 1-A)","summary":"For tax years 2025 to 2028, $6,000 for each individual 65 or older at the end of the year (both spouses on a joint return), reduced by 6% of MAGI over $75,000 ($150,000 joint), each individual's amount separately, not below zero. A separate return does not qualify. MAGI here is AGI. Someone born on January 1 counts as 65 at the end of the year they reach 64: the IRS counts age 65 from the day before the 65th birthday (birthDay with birthMonth, and spouseBirthMonth with spouseBirthDay on a joint return; /api/simulate reads birthDay too; engine 1.5.0). The engine assumes each qualifying individual has a valid social security number on the return, a condition of the deduction (§151(d)(5)(C)(iv)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_151d5_senior_deduction","lines":["1040s1a.37"],"sources":[{"rule":"senior","url":"https://www.law.cornell.edu/uscode/text/26/151","title":"26 U.S. Code § 151","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual","reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return)","this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return"],"checked":"2026-11-02"},{"rule":"senior_eff","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 (One Big Beautiful Bill Act), enrolled text","publisher":"U.S. Government Publishing Office (govinfo)","kind":"legislation","official":true,"quotes":["SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION","The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70104"],"checked":"2026-11-02"},{"rule":"senior_irs","url":"https://www.irs.gov/newsroom/working-families-tax-cuts-tax-deductions-for-working-americans-and-seniors","title":"Working Families Tax Cuts: tax deductions for working Americans and seniors","publisher":"Internal Revenue Service (newsroom)","kind":"agency_page","official":true,"quotes":["Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000","$12,000 total for a married couple where both spouses qualify"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/p554.pdf","title":"Publication 554 (2025), Tax Guide for Seniors","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["You are considered age 65 on the day before"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you were born on January 1, 1961, you are considered to be age 65 at the end of 2025","A person is considered to reach age 65 on the day before the person's 65th birthday"],"checked":"2026-11-02"},{"rule":"age65_day_before","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["were born before January 2, 1961"],"checked":"2026-11-02"}]},{"id":"irc_224c_trade_or_business","stage":"deductions","title":"Tips received in a trade or business (section 224(c))","summary":"Qualified tips received in the filer's or the spouse's own business (not as an employee) count toward the tips deduction only up to that business's net profit, figured without the tips deduction (26 CFR 1.224-1(e)): each person's the smaller of the tips and Schedule C line 31 (not below 0), summed on Schedule 1-A 2025 line 5 (2026 draft line 7). The employee tips are not limited by it. API selfEmployedQualifiedTips, spouseSelfEmployedQualifiedTips (federal engine 2.3.2).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_224c_trade_or_business","lines":["1040s1a.5"],"sources":[{"rule":"tips_trade_or_business","url":"https://www.law.cornell.edu/uscode/text/26/224","title":"26 U.S. Code §224(c)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["other than the trade or business of performing services as an employee","exceeds the sum of the deductions (other than the deduction allowed under this section) allocable to the trade or business in which such qualified tips are received"],"checked":"2026-11-02"},{"rule":"tips_trade_or_business","url":"https://www.federalregister.gov/documents/2026/04/13/2026-07104/occupations-that-customarily-and-regularly-received-tips-definition-of-qualified-tips","title":"Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips (T.D. 10044, final regulations, 26 CFR 1.224-1(e); 91 FR 19026)","publisher":"Federal Register (Treasury, IRS)","kind":"federal_register","official":true,"quotes":["the deduction under section 224 for a trade or business is limited to the individual's net income (without regard to the section 224 deduction) from that trade or business","would include the expenses deducted on the Schedule C for that trade or business","Manicurist O is allowed a qualified tip deduction of only $15,000"],"checked":"2026-11-02"},{"rule":"tips_trade_or_business","url":"https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf","title":"Schedule 1-A (Form 1040) (2026) DRAFT, not for filing","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Qualified tips received in the course of a trade or business","Schedule C, line 31","Other allocable deductions","Add lines 5 and 7"],"checked":"2026-11-02"},{"rule":"tips_trade_or_business","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Do not enter more than the net profit from the trade or business","Add lines 4c and 5"],"checked":"2026-11-02"}]},{"id":"irc_224_tips","stage":"deductions","title":"No tax on tips (Schedule 1-A Part II)","summary":"Qualified tips (the employee tips plus the business tips after section 224(c)) up to the cap, reduced by $100 for each whole $1,000 of MAGI over the threshold; tax years 2025 to 2028; a married filer must file jointly. A below-the-line deduction (Form 1040 line 13b with the senior deduction; 2026 draft 13a): it does not reduce AGI. API qualifiedTips, selfEmployedQualifiedTips.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_224_tips","lines":["1040s1a.13"],"sources":[{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/224","title":"26 U.S. Code §224","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["no deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number","the term \"modified adjusted gross income\" means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933","this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year","no deduction shall be allowed under this section for any taxable year beginning after december 31, 2028"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/225","title":"26 U.S. Code §225","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["no deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number","overtime compensation paid to an individual required under section 7 of the fair labor standards act of 1938 that is in excess of the regular rate","no deduction shall be allowed under this section for any taxable year beginning after december 31, 2028"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code §63(b)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["(4) the deduction provided in section 170(p), (5) the deduction provided in section 224, (6) the deduction provided in section 225"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["modified adjusted gross income (magi) amount enter the amount from form 1040, 1040-sr, or 1040-nr, line 11b","you and/or your spouse who received qualified tips must have a valid social security number to claim the deduction","enter the smaller of the amount on line 6 or $25,000","divide line 10 by $1,000. if the resulting number isn't a whole number, decrease the result to the next lower whole number","enter the smaller of the amount on line 14c or $12,500 ($25,000 if married filing jointly)","add lines 13, 21, 30, and 37. enter here and on form 1040 or 1040-sr, line 13b"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf","title":"Schedule 1-A (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["add lines 15, 27, 36, and 43. enter here and on form 1040, 1040-sr, or 1040-nr, line 13a"],"checked":"2026-11-02"},{"rule":"tips","url":"https://www.law.cornell.edu/uscode/text/26/224","title":"26 U.S. Code § 224","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed $25,000","by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return)"],"checked":"2026-11-02"}]},{"id":"irc_225_overtime","stage":"deductions","title":"No tax on overtime (Schedule 1-A Part III)","summary":"Qualified overtime compensation up to the cap (twice as much on a joint return), with the same MAGI reduction, years and joint-return rule as tips. API qualifiedOvertime.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_225_overtime","lines":["1040s1a.21"],"sources":[{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/224","title":"26 U.S. Code §224","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["no deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number","the term \"modified adjusted gross income\" means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933","this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year","no deduction shall be allowed under this section for any taxable year beginning after december 31, 2028"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/225","title":"26 U.S. Code §225","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["no deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number","overtime compensation paid to an individual required under section 7 of the fair labor standards act of 1938 that is in excess of the regular rate","no deduction shall be allowed under this section for any taxable year beginning after december 31, 2028"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code §63(b)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["(4) the deduction provided in section 170(p), (5) the deduction provided in section 224, (6) the deduction provided in section 225"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["modified adjusted gross income (magi) amount enter the amount from form 1040, 1040-sr, or 1040-nr, line 11b","you and/or your spouse who received qualified tips must have a valid social security number to claim the deduction","enter the smaller of the amount on line 6 or $25,000","divide line 10 by $1,000. if the resulting number isn't a whole number, decrease the result to the next lower whole number","enter the smaller of the amount on line 14c or $12,500 ($25,000 if married filing jointly)","add lines 13, 21, 30, and 37. enter here and on form 1040 or 1040-sr, line 13b"],"checked":"2026-11-02"},{"rule":"tips_overtime_obbba","url":"https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf","title":"Schedule 1-A (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["add lines 15, 27, 36, and 43. enter here and on form 1040, 1040-sr, or 1040-nr, line 13a"],"checked":"2026-11-02"},{"rule":"overtime","url":"https://www.law.cornell.edu/uscode/text/26/225","title":"26 U.S. Code § 225","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed $12,500 ($25,000 in the case of a joint return)"],"checked":"2026-11-02"}]},{"id":"irc_199a_qbi","stage":"deductions","title":"Qualified business income deduction (Forms 8995 / 8995-A)","summary":"The self-employed business's qualified business income is its net profit less the half-SE-tax, plan and health-insurance deductions. At or below the threshold (Form 8995): 20% of it. Above (Form 8995-A): the W-2 wage and UBIA limit and, for a specified service business, the applicable percentage, both phased in over the range; losses of one spouse's business net against the other's. The deduction is at most 20% of taxable income before it less net capital gain and qualified dividends; from 2026 it is at least the section 199A(i) minimum when active QBI reaches the floor. Taxable income before the deduction is after the Schedule 1-A deductions (8995 line 11). A loss is carried forward (reported, not read back). Federal engine 2.3: the K-1s' qualified business income (k1QualifiedBusinessIncome, with its W-2 wages, UBIA and SSTB flag) is one more trade or business on Form 8995 / 8995-A, active for the section 199A(i) minimum only with k1QbiActive; when a partner's SE earnings share Schedule SE with a Schedule C business, the deductible part of SE tax that reduces the Schedule C QBI is its share of Schedule SE line 3.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_199a_qbi","lines":["8995.11","1040.13a"],"sources":[{"rule":"qbi_8995","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["an amount equal to 20 percent of the excess (if any) of- (a) the taxable income of the taxpayer for the taxable year, over (b) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year","20 percent of the taxpayer's qualified business income with respect to the qualified trade or business"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-pdf/f8995.pdf","title":"Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $197,300 ($394,600 if married filing jointly)"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f8995--dft.pdf","title":"Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["use this form if your taxable income, before your qualified business income deduction, is at or below $201,750 ($201,775 if married filing separately; $403,500 if married filing jointly)","qualified business income component. multiply line 4 by 20% (0.20)","enter your net capital gain, if any, increased by any qualified dividends","income limitation. multiply line 13 by 20% (0.20)","minimum deduction for active qualified business income (see instructions)","qualified business income deduction. enter the greater of line 15 or line 16"],"checked":"2026-11-02"},{"rule":"qbi_8995","url":"https://www.irs.gov/pub/irs-dft/f1040--dft.pdf","title":"Form 1040 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["qualified business income deduction from form 8995 or form 8995-a"],"checked":"2026-11-02"},{"rule":"qbi_obbba","url":"https://www.law.cornell.edu/uscode/text/26/199A","title":"26 U.S. Code §199A(b)(3)(B), (i)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["exceeds the threshold amount, but does not exceed the sum of the threshold amount plus $75,000 ($150,000 in the case of a joint return)","the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of- (a) the amount of such deduction determined without regard to this subsection, or (b) $400","a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000","in which the taxpayer materially participates (within the meaning of section 469(h))","determined by substituting \"calendar year 2025\" for \"calendar year 2016\" in subparagraph (a)(ii) thereof. if any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5","prior to amendment, text read as follows: \"this section shall not apply to taxable years beginning after december 31, 2025.\""],"checked":"2026-11-02"},{"rule":"qbi_obbba","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 §70105","publisher":"U.S. Government Publishing Office (govinfo)","kind":"statute","official":true,"quotes":["sec. 70105. extension and enhancement of deduction for qualified business income","minimum deduction for active qualified business income"],"checked":"2026-11-02"},{"rule":"qbi_obbba","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32 §2.12 and §4.26","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["section 70105 of the obbba amended § 199a(i) to add a minimum deduction of $400","the $400 and $1,000 amounts in § 199a(i) will be adjusted for inflation for taxable years beginning after 2026","married individuals filing joint returns $403,500 $553,500 married individuals filing separate returns $201,775 $276,775 all other returns $201,750 $276,750"],"checked":"2026-11-02"},{"rule":"qbi_obbba","url":"https://www.irs.gov/pub/irs-dft/i8995--dft.pdf","title":"Instructions for Form 8995 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_instructions","official":true,"quotes":["there is a minimum qualified business income deduction of $400 for taxpayers whose aggregate qualified business income for such taxable year is at least $1,000","if the smaller of line 10 or 14 is less than $400, enter $400 if the aggregate qualified business income from lines 1i through 1v, column (c) with respect to all qualified trades or businesses in which you materially participated","deduction amount determined under section 199a, subject to the applicable limitations"],"checked":"2026-11-02"},{"rule":"qbi","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Married Individuals Filing Joint Returns $403,500 $553,500 Married Individuals Filing Separate Returns $201,775 $276,775 All Other Returns $201,750 $276,750"],"checked":"2026-11-02"},{"rule":"qbi_k1","url":"https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf","title":"Partner's Instructions for Schedule K-1 (Form 1065) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Code Z. Section 199A information. Generally, you may"],"checked":"2026-11-02"},{"rule":"qbi_k1","url":"https://www.irs.gov/pub/irs-pdf/i1120ssk.pdf","title":"Shareholder's Instructions for Schedule K-1 (Form 1120-S) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Code V. Section 199A information. Generally, you may"],"checked":"2026-11-02"},{"rule":"qbi_k1","url":"https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf","title":"Beneficiary's Instructions for Schedule K-1 (Form 1041) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Code I. Section 199A information. Generally, you may be"],"checked":"2026-11-02"},{"rule":"qbi_k1","url":"https://www.irs.gov/pub/irs-pdf/i8995.pdf","title":"Instructions for Form 8995 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["disallowed or limited, including the basis, at-risk, passive loss, or","Amounts received as guaranteed payments."],"checked":"2026-11-02"}]},{"id":"sched1a_line38_additional_deductions","stage":"deductions","title":"Additional deductions on line 13b","summary":"Schedule 1-A's total (line 38) goes to Form 1040 line 13b (on the 2026 drafts: Schedule 1-A line 44 to Form 1040 line 13a). The engine's only Schedule 1-A deduction is the senior deduction; the tips, overtime and car-loan interest deductions are not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#sched1a_line38_additional_deductions","lines":["1040.13b"],"sources":[{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_63_total_deductions","stage":"deductions","title":"Total deductions","summary":"Line 14 adds the standard deduction (12e), the senior deduction (13b) and, from 2026, the non-itemizer charitable deduction (12f on the 2026 draft). There is no qualified business income deduction (2025 line 13a, 13b on the 2026 draft).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63_total_deductions","lines":["1040.14"],"sources":[{"rule":"taxable_income_63","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income minus the deductions allowed by this chapter","adjusted gross income, minus"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_63_taxable_income","stage":"deductions","title":"Taxable income","summary":"Line 15 is AGI less the deductions, not below zero. The deductions reduce ordinary income first; what is left over (the unused deduction) reduces the long-term gain that enters the capital-gains worksheet.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63_taxable_income","lines":["1040.15"],"sources":[{"rule":"taxable_income_63","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income minus the deductions allowed by this chapter","adjusted gross income, minus"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1_1h_tax_qdcg_worksheet","stage":"tax","title":"Tax: the brackets and the capital-gains worksheet","summary":"Ordinary taxable income is taxed on the 2026 brackets of the filing status (10% to 37%). Long-term gain, and qualified dividends (§1(h)(11)), are stacked on top of it and taxed at 0%, 15% and 20% by where they fall on the 2026 capital-gains bands (the Qualified Dividends and Capital Gain Tax Worksheet). The worksheet's line 25 applies on every return (engine 1.3.0; before it, only on returns with interest, dividends or the capital-loss rules): the tax is never more than the regular tax on the same taxable income. It lowers the tax only where the 0% band ends inside the 12% bracket: by at most 3% (15% instead of 12%) of the gain between the top of the 0% band and the top of the 12% bracket. Line 16 is the sum. On the federal tax API, below the Tax Table's ceiling line 16 and the worksheet's lines 22 and 24 come from the table instead (the next step, engine 1.5.0).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1_1h_tax_qdcg_worksheet","lines":["1040.16"],"sources":[{"rule":"ord_single","filingStatus":"single","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["TABLE 3 - Section 1(j)(2)(C) - Unmarried Individuals (other than Surviving Spouses and Heads of Households) If Taxable Income Is: The Tax Is: Not over $12,400","Over $105,700 but not over $201,775 $17,966 plus 24%","Over $201,775 but not over $256,225 $41,024 plus 32%","Over $256,225 but not over $640,600 Over $640,600 $58,448 plus 35% of the excess over $256,225 $192,979.25 plus 37% of the excess over $640,600"],"checked":"2026-11-02"},{"rule":"ord_mfj","filingStatus":"mfj","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Not over $24,800 10% of the taxable income","Over $24,800 but not over $100,800 $2,480 plus 12% of the excess over $24,800","Over $403,550 but not over $512,450 $82,048 plus 32% of the excess over $403,550","Over $512,450 but not over $768,700 $116,896 plus 35%","Over $768,700 $206,583.50 plus 37% of the excess over $768,700","$35,932 plus 24% of the excess over $211,400"],"checked":"2026-11-02"},{"rule":"ord_mfs","filingStatus":"mfs","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Over $256,225 but not over $384,350 $58,448 plus 35% of the excess over $256,225","Over $384,350 $103,291.75 plus 37% of the excess over $384,350"],"checked":"2026-11-02"},{"rule":"ord_hoh","filingStatus":"hoh","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Not over $17,700 10% of the taxable income","Over $17,700 but not over $67,450 $1,770 plus 12%","Over $67,450 but not over $105,700 $7,740 plus 22%","Over $105,700 but not over $201,750 $16,155 plus 24%","Over $201,750 but not over $256,200 $39,207 plus 32%","Over $256,200 but not over $640,600 $56,631 plus 35%","Over $640,600 $191,171 plus 37%"],"checked":"2026-11-02"},{"rule":"ltcg","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Married Individuals Filing Joint Returns and Surviving Spouse $98,900 $613,700 Married Individuals Filing Separate Returns $49,450 $306,850 Heads of Household $66,200 $579,600 All Other Individuals $49,450 $545,500"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S. Code § 1","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["means net capital gain (determined without regard to this paragraph) increased by qualified dividend income","substituting \"121-day period\" for \"91-day period\""],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/publications/p505","title":"Publication 505 (2026), Tax Withholding and Estimated Tax","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Enter your qualified dividends expected for 2026","Enter your net capital gain expected for 2026"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Form 1040 and 1040-SR Instructions 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enter the smaller of line 15 or line 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-","Tax on all taxable income. Enter the smaller of line 23 or line 24"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/pub/irs-pdf/f1099div.pdf","title":"Form 1099-DIV","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["1a Total ordinary dividends","1b Qualified dividends"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date"],"checked":"2026-11-02"}]},{"id":"irc_3_tax_table","stage":"tax","title":"Tax: the Tax Table below $100,000","summary":"On POST /api/federal-tax and in the library (taxTable, default true; engine 1.5.0) Form 1040 line 16 is computed as filed: when taxable income is less than $100,000 the tax is the Tax Table's. IRC §3 imposes the table tax in lieu of the §1 tax, and the 1040 instructions require the table for every return under the ceiling, itemized or not. The row is read on taxable income to the cent, as line 15 is entered (the 1040 instructions allow rounding to whole dollars; cents are the finest amount on the return), so a sum that carries binary residue below a row edge reads the right row. Each row's tax is the rate-schedule tax at the row's midpoint, rounded to the nearest dollar with a half dollar rounding up; the rows are 0-5, 5-15 and 15-25, then 25 dollars wide up to 3,000 and 50 dollars wide up to 100,000 (verified on every row of the 2025 table, with no mismatch; the table's own example, a joint return in the 25,300-25,350 row, is $2,562). The Qualified Dividends and Capital Gain Tax Worksheet reads the table the same way on line 22 (the ordinary part) and line 24 (all taxable income), and line 25 then takes the smaller of lines 23 and 24 on every return with preferential income. From $100,000 the rate schedule applies (the step above). taxTable: false computes every dollar on the rate schedule. The planner and the ACA bridge use the rate schedule in every year: the tables of future years are not published and their solvers need a continuous tax, and the table moves a year's tax by at most half a row times the marginal rate plus rounding.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_3_tax_table","lines":["1040.16"],"sources":[{"rule":"tax_table","url":"https://www.law.cornell.edu/uscode/text/26/3","title":"26 U.S. Code § 3","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year on the taxable income of every individual","the amounts of the tax shall be computed on the basis of the rates prescribed by section 1","The Secretary may provide that this section shall apply also for any taxable year to individuals who itemize their deductions"],"checked":"2026-11-02"},{"rule":"tax_table","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If your taxable income is less than $100,000, you must use the Tax Table","Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table","Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table","The amount shown where the taxable income line and filing status column meet is $2,562"],"checked":"2026-11-02"},{"rule":"ord_single","filingStatus":"single","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["TABLE 3 - Section 1(j)(2)(C) - Unmarried Individuals (other than Surviving Spouses and Heads of Households) If Taxable Income Is: The Tax Is: Not over $12,400","Over $105,700 but not over $201,775 $17,966 plus 24%","Over $201,775 but not over $256,225 $41,024 plus 32%","Over $256,225 but not over $640,600 Over $640,600 $58,448 plus 35% of the excess over $256,225 $192,979.25 plus 37% of the excess over $640,600"],"checked":"2026-11-02"},{"rule":"ord_mfj","filingStatus":"mfj","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Not over $24,800 10% of the taxable income","Over $24,800 but not over $100,800 $2,480 plus 12% of the excess over $24,800","Over $403,550 but not over $512,450 $82,048 plus 32% of the excess over $403,550","Over $512,450 but not over $768,700 $116,896 plus 35%","Over $768,700 $206,583.50 plus 37% of the excess over $768,700","$35,932 plus 24% of the excess over $211,400"],"checked":"2026-11-02"},{"rule":"ord_mfs","filingStatus":"mfs","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Over $256,225 but not over $384,350 $58,448 plus 35% of the excess over $256,225","Over $384,350 $103,291.75 plus 37% of the excess over $384,350"],"checked":"2026-11-02"},{"rule":"ord_hoh","filingStatus":"hoh","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Not over $17,700 10% of the taxable income","Over $17,700 but not over $67,450 $1,770 plus 12%","Over $67,450 but not over $105,700 $7,740 plus 22%","Over $105,700 but not over $201,750 $16,155 plus 24%","Over $201,750 but not over $256,200 $39,207 plus 32%","Over $256,200 but not over $640,600 $56,631 plus 35%","Over $640,600 $191,171 plus 37%"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1h1_sd_tax_worksheet","stage":"tax","title":"Tax: the Schedule D Tax Worksheet","summary":"When Schedule D line 18 or 19 is more than zero and lines 15 and 16 are both gains, line 16 comes from the Schedule D Tax Worksheet instead of the capital-gains worksheet (IRC §1(h)(1)). The unrecaptured section 1250 gain is taxed at no more than 25% and the 28% rate gain at no more than 28%; where the regular rate is lower they are taxed at the regular rate, so the worksheet can be below the capital-gains worksheet's tax. Qualified dividends and the other long-term gain keep 0%, 15% and 20%. Line 47 is the smaller of the worksheet total and the regular tax. The Form 4952 investment-interest election (lines 3 to 5 and 8) is not modelled. On the federal tax API lines 44 and 46 read the Tax Table below its ceiling, as line 16 does.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1h1_sd_tax_worksheet","lines":["1040sdtw.39","1040sdtw.42","1040.16"],"sources":[{"rule":"cg_28_1250_rates","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S. Code §1(h)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["(e) 25 percent of the excess (if any) of- (i) the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to paragraph (11))), over","(f) 28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph","reduced (but not below zero) by the sum of- (i) unrecaptured section 1250 gain, and (ii) 28-percent rate gain, plus (b) qualified dividend income","the term \"28-percent rate gain\" means the excess (if any) of- (a) the sum of- (i) collectibles gain; and (ii) section 1202 gain"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["if you are required to complete the 28% rate gain worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet","if you are required to complete the unrecaptured section 1250 gain worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet","complete the qualified dividends and capital gain tax worksheet in the instructions for form 1040, line 16. don't complete lines 21 and 22 below. no. complete the schedule d tax worksheet in the instructions"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (2025), Schedule D Tax Worksheet","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["complete this worksheet only if line 18 or line 19 of schedule d is more than zero and lines 15 and 16 of schedule d are gains","multiply line 39 by 25% (0.25)","multiply line 42 by 28% (0.28)","unrecaptured section 1250 gain. subtract line 17 from line 13. if zero or less, enter -0-. if more than zero, enter the result here and on schedule d, line 19"],"checked":"2026-11-02"},{"rule":"cg_28_1250_rates","url":"https://www.irs.gov/pub/irs-dft/f1040sd--dft.pdf","title":"Schedule D (Form 1040) 2026 DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["schedule d (form 1040) 2026"],"checked":"2026-11-02"},{"rule":"ltcg","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Married Individuals Filing Joint Returns and Surviving Spouse $98,900 $613,700 Married Individuals Filing Separate Returns $49,450 $306,850 Heads of Household $66,200 $579,600 All Other Individuals $49,450 $545,500"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_904j_ftc_election","stage":"amt_credits","title":"Foreign tax credit without Form 1116 (the section 904(j) election)","summary":"When all foreign income is passive (the fund dividends and interest the API takes) and reported on payee statements, and the foreign taxes are at most $300 ($600 on a joint return), the credit on Schedule 3 line 1 is the smaller of the foreign taxes or the tax on Form 1040 line 16. No limitation and no carryover. API foreignTaxPaid; ftcMethod auto takes whichever of this and Form 1116 gives the lower total tax, the alternative minimum tax included (under the election the AMT foreign tax credit is this credit; with Form 1116 it is the AMT Form 1116's); a tie: the election.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_904j_ftc_election","lines":["1040s3.1","1040.20"],"sources":[{"rule":"ftc_no_1116_election","url":"https://www.law.cornell.edu/uscode/text/26/904","title":"26 U.S. Code §904(j)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the entire amount of such individual's gross income for the taxable year from sources without the united states consists of qualified passive income","the amount of the creditable foreign taxes paid or accrued by the individual during the taxable year does not exceed $300 ($600 in the case of a joint return)","such item of income is shown on a payee statement furnished to the individual"],"checked":"2026-11-02"},{"rule":"ftc_no_1116_election","url":"https://www.law.cornell.edu/uscode/text/26/901","title":"26 U.S. Code §901(a)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["if the taxpayer chooses to have the benefits of this subpart, the tax imposed by this chapter shall, subject to the limitation of section 904, be credited"],"checked":"2026-11-02"},{"rule":"ftc_no_1116_election","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025), Schedule 3 line 1","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["you don't have to complete form 1116 to take this credit if all of the following apply","the total of your foreign taxes wasn't more than $300 (not more than $600 if married filing jointly)","you held the stock or bonds on which the dividends or interest were paid for at least 16 days","enter on line 1 the smaller of (a) your total foreign taxes, or (b) the total of the amounts on form 1040 or 1040-sr, line 16, and schedule 2, line 1a"],"checked":"2026-11-02"},{"rule":"ftc_no_1116_election","url":"https://www.irs.gov/pub/irs-pdf/i1116.pdf","title":"Instructions for Form 1116 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["by making this election, the foreign tax credit limitation (lines 15 through 23 of the form) won't apply to you","your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return)"],"checked":"2026-11-02"}]},{"id":"irc_904a_ftc_limit","stage":"amt_credits","title":"Foreign tax credit with Form 1116 (the section 904(a) limit, passive category)","summary":"The credit is the smaller of the foreign taxes (plus a carryover in) and the tax times foreign-source taxable income over worldwide taxable income. Foreign-source taxable income is the foreign gross income less the standard deduction or listed itemized deductions and the adjustments to income, apportioned by gross income; worldwide taxable income adds back the senior deduction (no deduction under section 151). Qualified dividends and capital gains are adjusted for the rate differential when the worksheet taxed them below the regular rate, unless the adjustment exception applies and is elected (it is an election: the engine takes the way with the lower total tax, the AMT included). The unused tax carries over (reported, not read back). API foreignTaxPaid, foreignSourceOrdinaryIncome, foreignSourceQualifiedIncome, foreignTaxCarryover.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_904a_ftc_limit","lines":["1116.21","1040s3.1","1040.20"],"sources":[{"rule":"ftc_limitation_1116","url":"https://www.law.cornell.edu/uscode/text/26/904","title":"26 U.S. Code §904(a)-(c)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer's taxable income from sources without the united states (but not in excess of the taxpayer's entire taxable income) bears to his entire taxable income for the same taxable year","the taxable income in the case of an individual, estate, or trust shall be computed without any deduction for personal exemptions under section 151 or 642(b)","reduced by the rate differential portion of foreign source net capital gain","in the first preceding taxable year and in any of the first 10 succeeding taxable years, in that order"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-pdf/f1116.pdf","title":"Form 1116 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["individuals: enter the sum of (i) form 1040, 1040-sr, or 1040-nr, line 11b, minus form 1040, 1040-sr, or 1040-nr, line 14, and (ii) schedule 1-a (form 1040), line 37","divide line 17 by line 18. if line 17 is more than line 18, enter \"1\"","individuals: enter the total of form 1040, 1040-sr, or 1040-nr, line 16, and schedule 2 (form 1040), line 1z","multiply line 20 by line 19 (maximum amount of credit)"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-pdf/i1116.pdf","title":"Instructions for Form 1116 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this deduction is reported on schedule 1-a (form 1040), line 37, and needs to be removed from taxable income for purposes of computing the foreign tax credit limitation","you must adjust the amount of your foreign source qualified dividends and capital gain distributions if both of the following apply","line 5 of the qualified dividends and capital gain tax worksheet is greater than zero. • line 23 of the qualified dividends and capital gain tax worksheet is less than line 24 of that worksheet","the amount of your foreign source capital gain distributions plus the amount of your foreign source qualified dividends is less than $20,000","multiply your foreign source qualified dividends or capital gain distributions in each separate category by 0.4054 if the foreign source qualified dividends or capital gain distributions are taxed at a rate of 15%, and by 0.5405 if they are taxed at a 20% rate","$394,600 if married filing jointly or qualifying surviving spouse, b. $197,300 if married filing separately, c. $197,300 if single, or d. $197,300 if head of household"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-dft/f1116--dft.pdf","title":"Form 1116 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["subtract form 1040, 1040-sr, or 1040-nr, line 14, from form 1040, 1040-sr, or 1040-nr, line 11b. increase the result by the amount from schedule 1-a (form 1040), line 43"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/publications/p514","title":"Publication 514, Foreign Tax Credit for Individuals","publisher":"Internal Revenue Service","kind":"publication","official":true,"quotes":["multiply the applicable amount of the net capital gain by 0.6757","multiply the applicable amount of the foreign source net capital gain by 0.7568"],"checked":"2026-11-02"}]},{"id":"irc_55_amt","stage":"amt_credits","title":"Alternative minimum tax (Form 6251)","summary":"AMTI is taxable income before the senior deduction (line 1b), plus the taxes of Schedule A or the standard deduction (2a), less a taxable refund (2b), plus private-activity-bond interest (2g), the incentive-stock-option bargain element (2i), the disposition and other adjustments (2k, 2d-2t, 3) the caller enters, less the section 68 reduction (section 68 does not apply for the AMT). The tips, overtime and QBI deductions are not added back. The exemption falls by 50% of AMTI over the phase-out threshold; a separate filer adds back up to the exemption above the zero point. The taxable excess is taxed at 26% and 28%, or through Part III with the 0/15/20% and 25% rates of the regular worksheets. The AMT is the tentative minimum tax (after the AMT foreign tax credit) over the regular tax less the foreign tax credit. Every API return gets Form 6251; the planner does not. The prior-year minimum tax credit (Form 8801) is not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_55_amt","lines":["6251.4","6251.5","6251.7","6251.9","6251.10","1040s2.2","1040.17"],"sources":[{"rule":"amt","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Joint Returns or Surviving Spouses Exemption amount $140,200 Unmarried Individuals (other than Surviving Spouses) $90,100 Married Individuals Filing Separate Returns $70,100","Joint Returns or Surviving Spouses $1,000,000 $1,280,400 Unmarried Individuals (other than Surviving Spouses) $500,000 $680,200"],"checked":"2026-11-02"},{"rule":"amt_2026_params","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32 §4.10, §2.07","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["under § 55(b)(1), the excess taxable income above which the 28 percent tax rate applies is: filing status excess taxable income married individuals filing separate returns $122,250 all other taxpayers $244,500","joint returns or surviving spouses $1,000,000 $1,280,400 unmarried individuals (other than surviving spouses) $500,000 $680,200 married individuals filing separate returns $500,000 $640,200","section 55(d)(4)(b) as amended provides that the $1,000,000 amount described in § 55(d)(4)(a)(ii)(i) is not adjusted for inflation for any taxable year beginning before january 1, 2027"],"checked":"2026-11-02"},{"rule":"amt_2026_params","url":"https://www.law.cornell.edu/uscode/text/26/55","title":"26 U.S. Code §55","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["26 percent of so much of the taxable excess as does not exceed $175,000, plus (ii) 28 percent of so much of the taxable excess as exceeds $175,000","the amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year","by substituting \"$1,000,000\" for \"$150,000\" in subparagraph (a), (ii) by substituting \"50 percent of the dollar amount applicable under subparagraph (a)\" for \"$112,500\" in subparagraph (b)","(iv) by substituting \"50 percent\" for \"25 percent\"","(2026, in the case of the $1,000,000 amount in subparagraph (a)(ii)(i))","\"calendar year 2025\", in the case of the $1,000,000 amount in subparagraph (a)(ii)(i)","any increased amount determined under clause (i) shall be rounded to the nearest multiple of $100"],"checked":"2026-11-02"},{"rule":"amt_2026_params","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 §70107","publisher":"U.S. Government Publishing Office (govinfo)","kind":"statute","official":true,"quotes":["sec. 70107. extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds"],"checked":"2026-11-02"},{"rule":"amt_2026_params","url":"https://www.irs.gov/pub/irs-dft/f6251--dft.pdf","title":"Form 6251 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["if line 6 is $244,500 or less ($122,250 or less if married filing separately), multiply line 6 by 26% (0.26). otherwise, multiply line 6 by 28% (0.28) and subtract $4,890 ($2,445 if married filing separately) from the result","single or head of household . . . . . . $ 500,000 . . . . . $ 90,100 married filing jointly or qualifying surviving spouse 1,000,000 . . . . . 140,200 married filing separately . . . . . . . 500,000 . . . . . 70,100","if married filing separately and line 4 is more than $640,200, see instructions"],"checked":"2026-11-02"},{"rule":"amt_2026_params","url":"https://www.irs.gov/pub/irs-pdf/i6251.pdf","title":"Instructions for Form 6251 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["the exemption amount on form 6251, line 5, has increased to $88,100 ($137,000 if married filing jointly or qualifying surviving spouse; $68,500 if married filing separately)","the amount used to determine the phaseout of your exemption has increased to $626,350 ($1,252,700 if married filing jointly or qualifying surviving spouse)"],"checked":"2026-11-02"},{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-pdf/f6251.pdf","title":"Form 6251 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["subtract schedule 1-a (form 1040), line 37, from form 1040, 1040-sr, or 1040-nr, line 14","if filing schedule a (form 1040), enter the taxes from schedule a, line 7; otherwise, enter the amount from form 1040 or 1040-sr, line 12e","interest from specified private activity bonds exempt from the regular tax","exercise of incentive stock options (excess of amt income over regular tax income)","complete part iii on the back and enter the amount from line 40 here","alternative minimum tax foreign tax credit (see instructions)","amt. subtract line 10 from line 9. if zero or less, enter -0-. enter here and on schedule 2 (form 1040), line 2"],"checked":"2026-11-02"},{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-pdf/i6251.pdf","title":"Instructions for Form 6251 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["the deduction is treated as a personal exemption that is added back to alternative minimum taxable income as an adjustment under section 56(b)(5)(d)","if you aren't filing schedule a (form 1040), then enter the standard deduction amount that you reported on form 1040 or 1040-sr, line 12e","enter on line 2g interest income from \"specified private activity bonds\" reduced (but not below zero) by any deduction that would have been allowable if the interest were includible in gross income for the regular tax","if you made an election to claim the foreign tax credit on your 2025 tax return without filing form 1116, your amtftc is the same as the foreign tax credit on schedule 3 (form 1040), line 1","you will figure the amtftc using the same limitation rules that apply to the foreign tax credit for regular tax purposes, but with amt amounts","enter the amount from line 4 of form 6251 on line 18 of the amt form 1116","leave line 8 blank","multiply your foreign source qualified dividends in each separate category by 0.5357 if the foreign source qualified dividends are taxed at a rate of 15%, and by 0.7143 if they are taxed at a rate of 20%","when the amount of any amt gain is in the 25% rate group, multiply it by 0.8929 instead of the number used for regular tax","multiply line 4 of the worksheet by 0.1071 (instead of the number used for regular tax)"],"checked":"2026-11-02"},{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-dft/f6251--dft.pdf","title":"Form 6251 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["subtract schedule 1-a (form 1040), line 43, from form 1040, 1040-sr, or 1040-nr, line 14","if you reported capital gain distributions directly on form 1040 or 1040-sr, line 7a; you reported qualified dividends on form 1040 or 1040-sr, line 3a"],"checked":"2026-11-02"},{"rule":"amt_credit_8801","url":"https://www.irs.gov/pub/irs-pdf/f8801.pdf","title":"Form 8801 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["credit for prior year minimum taxindividuals, estates, and trusts","minimum tax credit and carryforward to 2026"],"checked":"2026-11-02"},{"rule":"amt_credit_8801","url":"https://www.irs.gov/pub/irs-pdf/f1040s3.pdf","title":"Schedule 3 (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["credit for prior year minimum tax. attach form 8801"],"checked":"2026-11-02"}]},{"id":"irc_59a_amt_ftc","stage":"amt_credits","title":"The AMT foreign tax credit (Form 6251 line 8)","summary":"Under the section 904(j) election it is the regular credit. Otherwise a Form 1116 with AMT amounts: the foreign-source income less the deductions allowed for the AMT (no standard deduction, no taxes), apportioned by the AMT gross income (line 3e without a taxable refund, with private activity bond interest and the ISO bargain element), over Form 6251 line 4 (i6251: \"Enter the amount from line 4 of Form 6251 on line 18 of the AMT Form 1116\"), times line 7. When Part III taxed part of line 12 below the AMT rate (line 38 < line 39, line 17 > 0) outside the adjustment exception, the AMT Worksheet for Line 18 takes lines 23, 30 x 0.4643, 33 x 0.2857 and 36 x 0.1071 off line 4 and the foreign qualified dividends go on line 1a at 0.5357 (15%), 0.7143 (20%), 0.8929 (25%). The simplified limitation election (API amtFtcSimplifiedElection) keeps the regular foreign-source taxable income. Line 8 is left blank when line 10 is at least line 7.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_59a_amt_ftc","lines":["6251.8"],"sources":[{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-pdf/f6251.pdf","title":"Form 6251 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["subtract schedule 1-a (form 1040), line 37, from form 1040, 1040-sr, or 1040-nr, line 14","if filing schedule a (form 1040), enter the taxes from schedule a, line 7; otherwise, enter the amount from form 1040 or 1040-sr, line 12e","interest from specified private activity bonds exempt from the regular tax","exercise of incentive stock options (excess of amt income over regular tax income)","complete part iii on the back and enter the amount from line 40 here","alternative minimum tax foreign tax credit (see instructions)","amt. subtract line 10 from line 9. if zero or less, enter -0-. enter here and on schedule 2 (form 1040), line 2"],"checked":"2026-11-02"},{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-pdf/i6251.pdf","title":"Instructions for Form 6251 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["the deduction is treated as a personal exemption that is added back to alternative minimum taxable income as an adjustment under section 56(b)(5)(d)","if you aren't filing schedule a (form 1040), then enter the standard deduction amount that you reported on form 1040 or 1040-sr, line 12e","enter on line 2g interest income from \"specified private activity bonds\" reduced (but not below zero) by any deduction that would have been allowable if the interest were includible in gross income for the regular tax","if you made an election to claim the foreign tax credit on your 2025 tax return without filing form 1116, your amtftc is the same as the foreign tax credit on schedule 3 (form 1040), line 1","you will figure the amtftc using the same limitation rules that apply to the foreign tax credit for regular tax purposes, but with amt amounts","enter the amount from line 4 of form 6251 on line 18 of the amt form 1116","leave line 8 blank","multiply your foreign source qualified dividends in each separate category by 0.5357 if the foreign source qualified dividends are taxed at a rate of 15%, and by 0.7143 if they are taxed at a rate of 20%","when the amount of any amt gain is in the 25% rate group, multiply it by 0.8929 instead of the number used for regular tax","multiply line 4 of the worksheet by 0.1071 (instead of the number used for regular tax)"],"checked":"2026-11-02"},{"rule":"amt_6251_structure","url":"https://www.irs.gov/pub/irs-dft/f6251--dft.pdf","title":"Form 6251 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["subtract schedule 1-a (form 1040), line 43, from form 1040, 1040-sr, or 1040-nr, line 14","if you reported capital gain distributions directly on form 1040 or 1040-sr, line 7a; you reported qualified dividends on form 1040 or 1040-sr, line 3a"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.law.cornell.edu/uscode/text/26/904","title":"26 U.S. Code §904(a)-(c)","publisher":"Legal Information Institute (Cornell) - U.S. Code","kind":"statute","official":true,"quotes":["the total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer's taxable income from sources without the united states (but not in excess of the taxpayer's entire taxable income) bears to his entire taxable income for the same taxable year","the taxable income in the case of an individual, estate, or trust shall be computed without any deduction for personal exemptions under section 151 or 642(b)","reduced by the rate differential portion of foreign source net capital gain","in the first preceding taxable year and in any of the first 10 succeeding taxable years, in that order"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-pdf/f1116.pdf","title":"Form 1116 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["individuals: enter the sum of (i) form 1040, 1040-sr, or 1040-nr, line 11b, minus form 1040, 1040-sr, or 1040-nr, line 14, and (ii) schedule 1-a (form 1040), line 37","divide line 17 by line 18. if line 17 is more than line 18, enter \"1\"","individuals: enter the total of form 1040, 1040-sr, or 1040-nr, line 16, and schedule 2 (form 1040), line 1z","multiply line 20 by line 19 (maximum amount of credit)"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-pdf/i1116.pdf","title":"Instructions for Form 1116 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["this deduction is reported on schedule 1-a (form 1040), line 37, and needs to be removed from taxable income for purposes of computing the foreign tax credit limitation","you must adjust the amount of your foreign source qualified dividends and capital gain distributions if both of the following apply","line 5 of the qualified dividends and capital gain tax worksheet is greater than zero. • line 23 of the qualified dividends and capital gain tax worksheet is less than line 24 of that worksheet","the amount of your foreign source capital gain distributions plus the amount of your foreign source qualified dividends is less than $20,000","multiply your foreign source qualified dividends or capital gain distributions in each separate category by 0.4054 if the foreign source qualified dividends or capital gain distributions are taxed at a rate of 15%, and by 0.5405 if they are taxed at a 20% rate","$394,600 if married filing jointly or qualifying surviving spouse, b. $197,300 if married filing separately, c. $197,300 if single, or d. $197,300 if head of household"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/pub/irs-dft/f1116--dft.pdf","title":"Form 1116 (2026) DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["subtract form 1040, 1040-sr, or 1040-nr, line 14, from form 1040, 1040-sr, or 1040-nr, line 11b. increase the result by the amount from schedule 1-a (form 1040), line 43"],"checked":"2026-11-02"},{"rule":"ftc_limitation_1116","url":"https://www.irs.gov/publications/p514","title":"Publication 514, Foreign Tax Credit for Individuals","publisher":"Internal Revenue Service","kind":"publication","official":true,"quotes":["multiply the applicable amount of the net capital gain by 0.6757","multiply the applicable amount of the foreign source net capital gain by 0.7568"],"checked":"2026-11-02"}]},{"id":"credit_order_1040","stage":"credits","title":"Form 1040 lines 18 to 22: the order of the nonrefundable credits","summary":"Line 18 is line 16 plus the AMT (line 17). The foreign tax credit comes first; then the credit for the elderly or disabled (Schedule R), the saver's credit (Form 8880) and the child tax credit with the credit for other dependents (Schedule 8812), each limited to line 18 less the credits before it (the forms' credit limit worksheets). Line 22 is line 18 less line 21, never below zero; line 24 adds Schedule 2 Part II. The refundable earned income credit (line 27a) and additional child tax credit (line 28) are payments: they do not change line 24 and are reported as refundableCredits. POST /api/federal-tax figures the credits on every return that has a credit input or earned income; the planner figures them in a year with wages or self-employment income (federal engine 2.2), the ACA bridge and the state API figure none.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#credit_order_1040","lines":["1040.18","1040.21","1040.22"],"sources":[{"rule":"form_1040_credit_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Amount from Schedule 2, line 3","Add lines 16 and 17","Child tax credit or credit for other dependents from Schedule 8812","Amount from Schedule 3, line 8","Add lines 19 and 20","Subtract line 21 from line 18. If zero or less, enter -0-","Add lines 22 and 23. This is your total tax","Earned income credit (EIC)","Additional child tax credit (ACTC) from Schedule 8812","Add lines 27a, 28, 29, 30, and 31. These are your total other payments and refundable credits"],"checked":"2026-11-02"},{"rule":"form_1040_credit_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s3.pdf","title":"Schedule 3 (Form 1040) 2025, Additional Credits and Payments","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Foreign tax credit. Attach Form 1116 if required","Retirement savings contributions credit. Attach Form 8880","Credit for the elderly or disabled. Attach Schedule R","Add lines 1 through 4, 5a, 5b, and 7. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20"],"checked":"2026-11-02"}]},{"id":"irc_22_elderly_credit","stage":"credits","title":"Credit for the elderly or the disabled (Schedule R)","summary":"A filer 65 or older at the end of the year (a person is that age on the day before the birthday), or under 65 with taxable disability income: line 10 is $5,000 ($7,500 when both spouses qualify on a joint return, $3,750 for a married filer filing separately who lived apart all year), limited for a disabled person under 65 to the taxable disability income (plus $5,000 for a spouse 65 or older). Lines 13a-13c subtract the nontaxable social security and the nontaxable pensions entered; line 17 subtracts half of AGI over $7,500 ($10,000 joint, $5,000 separate). The credit is 15% of the rest, at most line 18 less the foreign tax credit.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_22_elderly_credit","lines":["1040sr.20","1040s3.6d"],"sources":[{"rule":"elderly_credit_22","url":"https://www.law.cornell.edu/uscode/text/26/22","title":"26 U.S. Code § 22","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an amount equal to 15 percent of such individual's section 22 amount for such taxable year","who has attained age 65 before the close of the taxable year, or (2) who retired on disability before the close of the taxable year and who, when he retired, was permanently and totally disabled","(i) $5,000 in the case of a single individual, or a joint return where only one spouse is a qualified individual, (ii) $7,500 in the case of a joint return where both spouses are qualified individuals, or (iii) $3,750 in the case of a married individual filing a separate return","the initial amount shall not exceed the disability income for the taxable year","the initial amount shall not exceed the sum of $5,000 plus the disability income for the taxable year of the spouse who has not attained age 65 before the close of the taxable year","which is excluded from gross income and payable under- (I) title II of the Social Security Act","(1) $7,500 in the case of a single individual, (2) $10,000 in the case of a joint return, or (3) $5,000 in the case of a married individual filing a separate return, the section 22 amount shall be reduced by one-half of the excess of the adjusted gross income over $7,500, $10,000, or $5,000, as the case may be","Except in the case of a husband and wife who live apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, the credit provided by this section shall be allowed only if the taxpayer and his spouse file a joint return for the taxable year"],"checked":"2026-11-02"},{"rule":"elderly_credit_22","url":"https://www.irs.gov/pub/irs-pdf/f1040sr.pdf","title":"Schedule R (Form 1040) 2025, Credit for the Elderly or the Disabled","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Box 1, 2, 4, or 7 . . . . . . . . . . . . $5,000","Box 6, add $5,000 to the taxable disability income of the spouse who was under age 65. Enter the total.","If you completed line 11, enter the smaller of line 10 or line 11. All others, enter the amount from line 10","Nontaxable part of social security benefits and nontaxable part of railroad retirement benefits treated as social security (see instructions)","Enter the amount from Form 1040 or 1040-SR, line 11a","Box 3, 4, 5, 6, or 7 . . . . . . $10,000","Subtract line 15 from line 14. If zero or less, enter -0-","Enter one-half of line 16","Add lines 13c and 17","Subtract line 18 from line 12. If zero or less, stop; you can't take the credit.","Multiply line 19 by 15% (0.15)","Tax liability limit. Enter the amount from the Credit Limit Worksheet in the instructions","Credit for the elderly or the disabled. Enter the smaller of line 20 or line 21. Also enter this amount on Schedule 3 (Form 1040), line 6d","You were 65 or older and you lived apart from your spouse for all of 2025"],"checked":"2026-10-19"},{"rule":"elderly_credit_22","url":"https://www.irs.gov/pub/irs-pdf/i1040sr.pdf","title":"Instructions for Schedule R (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["You are considered age 65 on the day before your 65th birthday. As a result, if you were born on January 1, 1961, you are considered to be age 65 at the end of 2025.","On January 1, 2025, you had not reached mandatory retirement age","Enter the amount from Form 1040 or 1040-SR, line 18","Enter the amount from Schedule 3 (Form 1040), lines 1, 2, and 6l","Subtract line 2 from line 1. Enter this amount on Schedule R (Form 1040), line 21. If zero or less, stop; you can't take this credit","the amount to enter on this line is generally the difference between the amounts entered on Form 1040 or 1040-SR, line 6a and line 6b","single, head of household, or qualifying surviving spouse $17,500 or more $5,000 married filing jointly and only one spouse is a qualifying individual $20,000 or more $5,000 married filing jointly and both spouses are qualifying individuals $25,000 or more $7,500 married filing separately and you lived apart from your spouse for all of 2025 $12,500 or more $3,750"],"checked":"2026-10-19"}]},{"id":"irc_25b_savers_credit","stage":"credits","title":"Saver's credit (Form 8880)","summary":"Each person 18 or older who is not a full-time student: the contributions entered less the distributions of the testing period (both entered by the caller), at most $2,000 each. The rate is 50%, 20% or 10% by AGI (Notice 2025-67: joint $48,500 / $52,500 / $80,500; head of household $36,375 / $39,375 / $60,375; others $24,250 / $26,250 / $40,250), 0 above. At most line 18 less the foreign tax credit and the credit for the elderly. The SECURE 2.0 Act replaces the credit with the Saver's Match from 2027: a projected year has none.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_25b_savers_credit","lines":["8880.10","1040s3.4"],"sources":[{"rule":"savers_credit_25b","url":"https://www.law.cornell.edu/uscode/text/26/25B","title":"26 U.S. Code § 25B (with the Pub. L. 119-21 §70116 amendment notes)","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an amount equal to the applicable percentage of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as do not exceed $2,000","(A) if the adjusted gross income of the taxpayer is not over $30,000, 50 percent, (B) if the adjusted gross income of the taxpayer is over $30,000 but not over $32,500, 20 percent, (C) if the adjusted gross income of the taxpayer is over $32,500 but not over $50,000, 10 percent, and (D) if the adjusted gross income of the taxpayer is over $50,000, zero percent","a dollar amount equal to 75 percent of such dollar amount","a dollar amount equal to 50 percent of such dollar amount","the term \"eligible individual\" means any individual if such individual has attained the age of 18 as of the close of the taxable year","any individual who is a student (as defined in section 152(f)(2))","in the case of any taxable year beginning before January 1, 2027- (i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual","shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made","(i) such taxable year, (ii) the 2 preceding taxable years, and (iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year","any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return","applicable to taxable years beginning after Dec. 31, 2026, subsection (a) of this section is amended by striking \"$2,000\" and inserting \"$2,100\"","Pub. L. 119-21, § 70116(a)(2), repealed Pub. L. 117-328, § 103(e)(1)"],"checked":"2026-11-02"},{"rule":"savers_credit_25b","url":"https://www.law.cornell.edu/uscode/text/26/6433","title":"26 U.S. Code § 6433 - Saver's Match","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Any eligible individual who makes qualified retirement savings contributions for the taxable year shall be allowed a matching contribution"],"checked":"2026-11-02"},{"rule":"savers_credit_25b","url":"https://www.irs.gov/pub/irs-drop/n-25-67.pdf","title":"Notice 2025-67: 2026 retirement plan limitations","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the limitation under section 25B(b)(1)(B) is increased from $51,000 to $52,500","the limitation under section 25B(b)(1)(B) is increased from $38,250 to $39,375","the limitation under section 25B(b)(1)(B) is increased from $25,500 to $26,250"],"checked":"2026-11-02"},{"rule":"savers_credit_25b","url":"https://www.irs.gov/pub/irs-pdf/f8880.pdf","title":"Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (with instructions)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["was born after January 1, 2008","Certain distributions received after 2022 and before the due date (including extensions) of your 2025 tax return (see instructions). If married filing jointly, include both spouses' amounts in both columns.","In each column, enter the smaller of line 5 or $2,000","Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions","Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here and on Schedule 3 (Form 1040), line 4","$47,500 $51,000 0.2 0.1 0.0","Distributions not taxable as the result of a rollover or a trustee-totrustee transfer.","Loans from a qualified employer plan treated as a distribution.","Distributions from an inherited IRA by a nonspousal beneficiary.","Enter the total of your credits from Schedule 3, lines 1 through 3, 6d, and 6l","Under the SECURE 2.0 Act of 2022, beginning with 2027 tax returns, the saver's credit will be replaced by a saver's match that will be deposited by the government directly into your retirement account. Starting with 2027 tax returns, Form 8880 will only be used to claim the saver's credit for ABLE account contributions."],"checked":"2026-11-02"},{"rule":"roth_savers","url":"https://www.irs.gov/pub/irs-drop/n-25-67.pdf","title":"Notice 2025-67: 2026 retirement plan limitations","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["between $242,000 and $252,000 for married couples filing jointly","between $153,000 and $168,000","married taxpayers filing a joint return is increased from $47,500 to $48,500","is increased from $79,000 to $80,500","household is increased from $35,625 to $36,375","is increased from $59,250 to $60,375","all other taxpayers is increased from $23,750 to $24,250","is increased from $39,500 to $40,250"],"checked":"2026-11-02"}]},{"id":"irc_24_child_tax_credit","stage":"credits","title":"Child tax credit, credit for other dependents and additional child tax credit (Schedule 8812)","summary":"$2,200 per qualifying child under 17 and $500 per other dependent (Rev. Proc. 2025-32; section 24(h)(4)), less $50 for each $1,000 or fraction of AGI over $400,000 joint / $200,000 otherwise; the nonrefundable part is at most line 18 less the foreign tax credit, the credit for the elderly and the saver's credit (Credit Limit Worksheet A). The additional child tax credit is the rest, at most $1,700 per child and 15% of earned income over $2,500; with three or more children, Part II-B uses the larger of that and the social security and Medicare taxes (W-2 boxes 4 and 6 as entered; without them the employee taxes on boxes 3 and 5) plus the deductible part of self-employment tax, less the earned income credit and Schedule 3 line 11.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_24_child_tax_credit","lines":["1040s8.12","1040.19","1040.28"],"sources":[{"rule":"ctc","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the maximum amount of the credit allowed under § 24(a) is $2,200","the amount used in § 24(d)(1)(A) to determine the amount of the credit under § 24 that may be refundable is $1,700"],"checked":"2026-11-02"},{"rule":"ctc_statute","url":"https://www.law.cornell.edu/uscode/text/26/24","title":"26 U.S. Code § 24","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the threshold amount shall be $400,000 in the case of a joint return ($200,000 in any other case)","shall be increased by $500 for each","Subsection (d)(1)(B)(i) shall be applied by substituting \"$2,500\" for \"$3,000\""],"checked":"2026-11-02"},{"rule":"ctc_8812","url":"https://www.irs.gov/pub/irs-pdf/f1040s8.pdf","title":"Schedule 8812 (Form 1040) 2025, Credits for Qualifying Children and Other Dependents","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Enter the amount from line 11a of your Form 1040, 1040-SR, or 1040-NR","Multiply line 4 by $2,200","Multiply line 6 by $500","Married filing jointly-$400,000","All other filing statuses-$200,000","If more than zero and not a multiple of $1,000, enter the next multiple of $1,000.","Multiply line 10 by 5% (0.05)","Enter the amount from Credit Limit Worksheet A","Enter the smaller of line 12 or line 13. This is your child tax credit and credit for other dependents","Subtract line 14 from line 12. If zero, stop here; you cannot take the additional child tax credit","x $1,700. Enter the result.","Is the amount on line 18a more than $2,500?","Multiply the amount on line 19 by 15% (0.15) and enter the result","On line 16b, is the amount $5,100 or more?","Withheld social security, Medicare, and Additional Medicare taxes from Form(s) W-2, boxes 4 and 6. If married filing jointly, include your spouse's amounts with yours.","Enter the total of the amounts from Schedule 1 (Form 1040), line 15; Schedule 2 (Form 1040), line 5; Schedule 2 (Form 1040), line 6; and Schedule 2 (Form 1040), line 13","1040 and 1040-SR filers: Enter the total of the amounts from Form 1040 or 1040-SR, line 27a, and Schedule 3 (Form 1040), line 11.","Enter the larger of line 20 or line 25","This is your additional child tax credit. Enter this amount on Form 1040, 1040-SR, or 1040-NR, line 28"],"checked":"2026-11-02"},{"rule":"ctc_8812","url":"https://www.irs.gov/pub/irs-pdf/i1040s8.pdf","title":"Instructions for Schedule 8812 (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you are completing Part II-B and your employer withheld or you paid Additional Medicare Tax or tier 1 RRTA tax, use the Additional Medicare Tax and RRTA Tax Worksheet, later, to figure the amount to enter on line 21.","Enter the social security tax withheld (Form(s) W-2, box 4,","Enter any amount from Form 8959, line 7","Enter the Additional Medicare Tax withheld (Form 8959, line 22)","Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13)","Enter the amount from line 18 of your Form 1040, 1040-SR, or 1040-NR.","Schedule 3, line 5b","Schedule 3, line 6m","your earned income from Worksheet B (in your Instructions for Form 1040), line 4b,","Enter any net profit or (loss) from Schedule C, line 31,","Enter the amount from Schedule 1 (Form 1040), line 15","Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop."],"checked":"2026-11-02"},{"rule":"ctc_8812","url":"https://www.law.cornell.edu/uscode/text/26/24","title":"26 U.S. Code § 24","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds the threshold amount","50 percent of the taxes imposed by section 1401 on the self-employment income of the taxpayer for the taxable year","The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400"],"checked":"2026-11-02"}]},{"id":"irc_32_eitc","stage":"credits","title":"Earned income credit (Form 1040 line 27a)","summary":"Earned income is wages plus net profit less the deductible part of self-employment tax. With no qualifying child a filer (or, on a joint return, either spouse) must be 25 to 64 at the end of the year; a married filer filing separately qualifies only under the separated-spouse rule (eitcSeparatedSpouse). Investment income (taxable and tax-exempt interest, ordinary dividends, capital gain net income, the positive rental net income) over $12,200 disqualifies. The credit is the credit percentage of earned income up to the maximum, less the phaseout percentage of the greater of AGI or earned income over the threshold (section 32(a)-(b), Rev. Proc. 2025-32). With taxTable (the API default) it is the EIC Table's: $50 brackets, the credit at each bracket's midpoint rounded to the dollar, looked up at earned income and, when AGI differs and is at least the threshold, at AGI, the smaller (EIC Worksheet A).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_32_eitc","lines":["1040.27a"],"sources":[{"rule":"eitc","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Earned Income Amount $13,020 $18,290 $18,290 $8,680 Maximum Amount of Credit $4,427 $7,316 $8,231 $664","Threshold Phaseout Amount (Married Filing Jointly) $31,160 $31,160 $31,160 $18,140 Completed Phaseout Amount (Married Filing Jointly) $58,863 $65,899 $70,244 $26,820","Threshold Phaseout Amount (All other filing statuses) $23,890 $23,890 $23,890 $10,860 Completed Phaseout Amount (All other filing statuses) $51,593 $58,629 $62,974 $19,540","aggregate amount of certain investment income exceeds $12,200"],"checked":"2026-11-02"},{"rule":"eitc_pct","url":"https://www.law.cornell.edu/uscode/text/26/32","title":"26 U.S. Code § 32","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["1 qualifying child 34 15.98 2 qualifying children 40 21.06 3 or more qualifying children 45 21.06 No qualifying children 7.65 7.65"],"checked":"2026-11-02"},{"rule":"eitc_rules_32","url":"https://www.law.cornell.edu/uscode/text/26/32","title":"26 U.S. Code § 32","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["has attained age 25 but not attained age 65 before the close of the taxable year","the amount of the taxpayer's net earnings from self-employment for the taxable year (within the meaning of section 1402(a)), but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f)","In the case of an individual who is married, this section shall apply only if a joint return is filed for the taxable year under section 6013.","resides with a qualifying child of the individual for more than one-half of such taxable year","shall have income brackets of not greater than $50 each","In the case of any taxable year beginning after December 31, 2020, and before January 1, 2022","the excess (if any) of- (i) gross income from rents or royalties not derived in the ordinary course of a trade or business","the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year","the aggregate income from all passive activities for the taxable year","In the case of a joint return filed by an eligible individual and such individual's spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000."],"checked":"2026-11-02"},{"rule":"eitc_rules_32","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Self-Employed NOT Required To File Schedule SE For example, your net earnings from self-employment were less than $400.","1a. Enter the amount from Schedule SE, Part I, line 3.","d. Enter the amount from Schedule SE, Part I, line 13.","b. Enter any net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming)*.","b. Combine lines 1e, 2c, 3, and 4a. This is your total earned income.","Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2025? (Check \"Yes\" if you, or your spouse if filing a joint return, were born after December 31, 1960, and before January 2, 2001.)","Are you a married taxpayer whose filing status is married filing separately or head of household?","Caution. This is not a tax table.","1 50 100 150 50 100 150 200 2 6 10 13 9 26 43 60 10 30 50 70 11 34 56 79","the amount you are looking up from your EIC Worksheet is $2,455, you would enter $842.","Use this column if your filing status is married filing separately and you qualify to claim the EIC."],"checked":"2026-11-02"},{"rule":"eitc_rules_32","url":"https://www.irs.gov/pub/irs-pdf/p596.pdf","title":"Publication 596 (2025), Earned Income Credit","publisher":"Internal Revenue Service","kind":"publication","official":true,"quotes":["A taxpayer is considered to reach age 25 on the day before the taxpayer's 25th birthday. However, the rule for reaching age 65 is different; a taxpayer reaches age 65 on the taxpayer's 65th birthday.","Enter any amount from Form 1040 or 1040-SR, line 2b","Enter the amount from Form 1040 or 1040-SR, line 7a. If the amount on that line is a loss, enter -0-","Enter the total of any net income from passive activities (such as income included on Schedule E, line 26,","Combine the amounts on lines 11 and 12 of this worksheet. (If the result is less than zero, enter -0-.)","Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Enter the total. This is your investment income","If any of the rental real estate income (or loss) included on Schedule E, line 26, isn't from a passive activity, enter \"NPA\""],"checked":"2026-11-02"}]},{"id":"irc_72t_additional_tax","stage":"other_taxes","title":"The 10% additional tax on early distributions","summary":"10% of `iraDistributions` taken before age 59½. Without `birthMonth` the engine applies a whole-year rule: all of the year's distributions are charged when the filer reaches 59 or less in the year, and none from the year the filer reaches 60. That is an approximation: a filer born in January to June passes 59½ during the year they turn 59, and one born in July to December is still under 59½ early in the year they turn 60. With `birthMonth`, only the share of the year before 59½ is charged (the distributions taken as spread evenly over the year). Roth conversions are never charged. On the extended return the exceptions for disability, substantially equal periodic payments and separation from service at 55 (50 for a public safety employee) apply (Form 5329 line 2); the other §72(t)(2) exceptions are not modelled, and the planner applies none. Schedule 2 line 8.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72t_additional_tax","lines":["1040s2.8"],"sources":[{"rule":"72t","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be increased by an amount equal to 10 percent of the portion of such amount which is includible in gross income","made on or after the date on which the employee attains age 59½"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_1411_niit","stage":"other_taxes","title":"Net investment income tax","summary":"3.8% of the smaller of net investment income and MAGI over the threshold ($200,000 single and head of household, $250,000 joint, $125,000 separate; not indexed). Schedule 2 line 12. Net investment income is the whole of Form 8960 line 8 on every return (engine 1.3.0): interest, all dividends and the line 7a gain or allowed loss, never below zero; nonqualified annuities count too (line 3), and on an itemized return the investment interest and the state income tax allocable to it are subtracted (Form 8960 Part II, engine 1.5.0; the steps after line 8). The tax is 3.8% of the smaller of line 12 and the MAGI excess. Before 1.3.0 a return without interest, dividends or the capital-loss rules left out the long-term gain sheltered by an unused deduction, which under-charged the tax only when the deductions exceeded the NIIT threshold (a large itemized deduction in a large-gain year).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411_niit","lines":["1040s2.12"],"sources":[{"rule":"niit","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a tax equal to 3.8 percent of the lesser of","in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $250,000","½ of the dollar amount determined under paragraph (1)","in any other case, $200,000"],"checked":"2026-11-02"},{"rule":"niit_irs","url":"https://www.irs.gov/individuals/net-investment-income-tax","title":"Net Investment Income Tax","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["Married filing jointly - $250,000, Married filing separately - $125,000, Single or head of household - $200,000"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","the modified adjusted gross income for such taxable year","net investment income for such taxable year"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Form 1040 or 1040-SR, line 7a"],"checked":"2026-11-02"}]},{"id":"sched2_other_taxes","stage":"other_taxes","title":"Other taxes","summary":"Line 23 carries Schedule 2's total as the engine computes it: the §72(t) additional tax (with the Roth recapture of the extended return), the §4974 missed-RMD excise when an extended return sends rmdShortfall (Schedule 2 line 8 with the additional tax), and the NIIT (line 12). No other Schedule 2 tax is modelled: self-employment and household employment taxes, the Additional Medicare Tax, the HSA and other account additional taxes, credit recaptures, and the deferred-compensation and installment-sale interest taxes are absent (see what the engine does not compute).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#sched2_other_taxes","lines":["1040.23"],"sources":[{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"total_tax","stage":"other_taxes","title":"Total tax","summary":"Line 24 adds line 16 and line 23. No credit is modelled (line 19 and Schedule 3 Part I: the child tax credit, the credit for the elderly, the foreign tax credit and every other) and neither is the alternative minimum tax, so line 22 equals line 16. `result.totalTax` is this line (with the §4974 excise on an extended return); `result.incomeTax` leaves out the §72(t) additional tax and the excise. The engine stops here: withholding and payments, refundable credits, the refund and the amount owed (lines 25 to 37) are not computed; the Form 2210 penalty (line 38) is, on request.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#total_tax","lines":["1040.24"],"sources":[{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025): U.S. Individual Income Tax Return","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Tax-exempt interest","IRA distributions","Pensions and annuities","Social security benefits","Capital gain or (loss). Attach Schedule D if required","Additional income from Schedule 1, line 10","This is your total income","This is your adjusted gross income","Standard deduction or itemized deductions (from Schedule A)","Additional deductions from Schedule 1-A, line 38","Add lines 12e, 13a, and 13b","This is your taxable income","Tax (see instructions)","Other taxes, including self-employment tax, from Schedule 2, line 21","This is your total tax"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf","title":"Schedule 1-A (Form 1040) (2025): Additional Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enhanced deduction for seniors. Add lines 36a and 36b"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025): Additional Taxes","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Additional tax on IRAs or other tax-favored accounts","Net investment income tax. Attach Form 8960","These are your total other taxes"],"checked":"2026-11-02"},{"rule":"form_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) (2025): Capital Gains and Losses","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Net short-term capital gain or (loss)","Net long-term capital gain or (loss)","Combine lines 7 and 15 and enter the result"],"checked":"2026-11-02"}]},{"id":"irc_213a_medical_over_7_5pct","stage":"itemized","title":"Medical and dental expenses","summary":"Schedule A line 4: unreimbursed medical and dental expenses to the extent they exceed 7.5% of AGI (§213(a)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_213a_medical_over_7_5pct","lines":["1040sa.4"],"sources":[{"rule":"sched_a_medical","url":"https://www.law.cornell.edu/uscode/text/26/213","title":"26 U.S. Code § 213","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["to the extent that such expenses exceed 7.5 percent of adjusted gross income"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_164a_salt_paid","stage":"itemized","title":"State and local taxes paid","summary":"Schedule A line 5d: state and local income (or general sales) tax, real estate tax and personal property tax paid in the year.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_164a_salt_paid","lines":["1040sa.5d"],"sources":[{"rule":"salt","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code § 164","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in the case of any taxable year beginning in calendar year 2025, $40,000","in the case of any taxable year beginning in calendar year 2026, $40,400","reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount","in the case of any taxable year beginning in calendar year 2026, $505,000","shall not result in the applicable limitation amount being less than $10,000"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_164b6_b7_salt_cap","stage":"itemized","title":"The SALT cap and its phase-down","summary":"Schedule A line 5e: line 5d up to the cap of §164(b)(6)-(7): $40,400 for 2026, reduced by 30% of MAGI over $505,000 but not below $10,000; a separate return gets half the threshold and half the amount. MAGI is AGI (the engine has no foreign or territory exclusions).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_164b6_b7_salt_cap","lines":["1040sa.5e"],"sources":[{"rule":"salt","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code § 164","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in the case of any taxable year beginning in calendar year 2025, $40,000","in the case of any taxable year beginning in calendar year 2026, $40,400","reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount","in the case of any taxable year beginning in calendar year 2026, $505,000","shall not result in the applicable limitation amount being less than $10,000"],"checked":"2026-11-02"},{"rule":"salt_sched_a","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code § 164","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)","101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year","(half the threshold amount in the case of a married individual filing a separate return)"],"checked":"2026-11-02"},{"rule":"salt_sched_a","url":"https://www.irs.gov/pub/irs-pdf/i1040sca.pdf","title":"2025 Instructions for Schedule A (Form 1040)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Multiply line 6 by 30% (0.30)","Enter the larger of the amount on line 8 or $10,000","half the amount on line 9 if married filing separately","If you elect to itemize for state tax or other purposes even though your itemized deductions are less than your standard deduction, check the box on line 18"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_163h_interest","stage":"itemized","title":"Interest you paid","summary":"Schedule A line 10: home mortgage interest and points and Form 4952 investment interest, as deductible amounts the caller supplies (the §163(h)(3) debt limit is applied by the caller).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_163h_interest","lines":["1040sa.10"],"sources":[{"rule":"itemize_election","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year","a married individual filing a separate return where either spouse itemizes deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["will be less if you take the larger of your standard deduction or itemized deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040sca.pdf","title":"Instructions for Schedule A (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_170b_charity_limits_floor","stage":"itemized","title":"Gifts to charity: the percentage limits and the 0.5% floor","summary":"Schedule A line 14, in the order of Pub 526 Worksheet 2 (engine 1.5.0): cash to public charities up to 60% of AGI; capital-gain property to public charities, taken into account after all other gifts, up to the smaller of 30% of AGI and 50% of AGI minus the cash gifts (§170(b)(1)(C), (G)(iii)); from 2026 only the amount above 0.5% of AGI is deductible, taken first from the property and last from the cash (§170(b)(1)(I)). Before 1.5.0 the property came first and the cash got only what the property left of 60%, which over-deducted when cash and property together exceeded half of AGI. Federal engine 2.2: carryovers (the cash and the capital-gain-property classes, by age) join their class: the year's own gifts first, then the carryovers oldest first, under the same limits; the 0.5% floor applies to the total, carryovers included (the statute's text, disclosed).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_170b_charity_limits_floor","lines":["1040sa.14"],"sources":[{"rule":"charity_limits","url":"https://www.law.cornell.edu/uscode/text/26/170","title":"26 U.S. Code § 170","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 30 percent of the taxpayer's contribution base for such year","60 percent of the taxpayer's contribution base for the taxable year, over (II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year","the term \"contribution base\" means adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172)","shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year","(ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof","(vi) sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof","subparagraph (A) shall be applied by reducing (but not below zero) the contribution limitation allowed for the taxable year under such subparagraph by the aggregate contributions allowed under this subparagraph for such taxable year","shall be taken into account after all other charitable contributions"],"checked":"2026-11-02"},{"rule":"charity_limits","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 (One Big Beautiful Bill Act), enrolled text","publisher":"U.S. Government Publishing Office (govinfo)","kind":"legislation","official":true,"quotes":["SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS"],"checked":"2026-11-02"},{"rule":"charity_limits","url":"https://www.irs.gov/pub/irs-pdf/p526.pdf","title":"Publication 526 (2025), Charitable Contributions","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Enter your cash contributions to 50% limit organizations","Deductible amount. Enter the smaller of line 10 or line 12","Subtract line 27 from line 26","Deductible amount. Enter the smallest of line 8, 28, or 29"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_170d1_charity_carryover","stage":"itemized","title":"Gifts to charity: the five-year carryover","summary":"An amount over the percentage limits carries to each of the 5 succeeding years in its class (§170(d)(1), (b)(1)(C)(ii), (G)(ii)): in a later year the year's own gifts of the class come first, then the carryovers, oldest first; what the limits leave moves one year older, and a carryover not used by its fifth year expires. A carryover is used up in a year the standard deduction is taken (26 CFR 1.170A-10(a)(2)). From 2026 the 0.5% floor's disallowance is carried only by a class whose own gifts of the year are carried, added to them (§170(d)(1)(C)); otherwise it is lost. §68 does not create a carryover.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_170d1_charity_carryover","lines":["1040sa.13"],"sources":[{"rule":"charity_carryover_5yr","url":"https://www.law.cornell.edu/uscode/text/26/170","title":"26 U.S. Code § 170","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such excess shall be treated as a charitable contribution described in subsection (b)(1)(A) paid in each of the 5 succeeding taxable years in order of time, but, with respect to any such succeeding taxable year, only to the extent of the lesser of the two following amounts:","the amount by which 50 percent of the taxpayer’s contribution base for such succeeding taxable year exceeds the sum of the charitable contributions described in subsection (b)(1)(A) payment of which is made by the taxpayer within such succeeding taxable year (determined without regard to this subparagraph) and the charitable contributions described in subsection (b)(1)(A) payment of which was made in taxable years before the contribution year which are treated under this subparagraph as having been paid in such succeeding taxable year","such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time.","such excess shall be treated, in a manner consistent with the rules of subsection (d)(1), as a charitable contribution of capital gain property to which clause (i) applies in each of the 5 succeeding taxable years in order of time.","such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution (to which subparagraph (A) or (G) does not apply) in each of the 5 succeeding taxable years in order of time."],"checked":"2026-11-02"},{"rule":"charity_carryover_5yr","url":"https://www.irs.gov/pub/irs-pdf/p526.pdf","title":"Publication 526 (2025), Charitable Contributions","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["You can carry over any contributions you can’t deduct in the current year because they exceed the limits based on your AGI. Except for qualified conservation contributions, you may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time.","Generally, contributions you carry over are subject to the same percentage limits in the year to which they are carried as they were in the year of the contribution.","For each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first.","A carryover of a contribution to a 50% limit organization must be used before contributions in the current year to organizations other than 50% limit organizations.","Don’t use this worksheet to figure the contributions you can deduct this year if you have a carryover of a charitable contribution from an earlier year."],"checked":"2026-11-02"},{"rule":"charity_carryover_5yr","url":"https://www.irs.gov/pub/irs-pdf/i1040sca.pdf","title":"2025 Instructions for Schedule A (Form 1040), Itemized Deductions","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["You may have contributions that you couldn't deduct in an earlier year because they exceeded the limits on the amount you could deduct. In most cases, you have 5 years to use contributions that were limited in an earlier year.","After applying those limits, enter the amount of your carryover that you are allowed to deduct this year."],"checked":"2026-11-02"},{"rule":"charity_carryover_standard_deduction_year","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRcc67ec453a5e514/section-1.170A-10","title":"26 CFR 1.170A-10: Charitable contributions carryovers of individuals","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The carryover provisions apply with respect to contributions made during a taxable year in excess of the applicable percentage limitation even though the taxpayer elects under section 144 to take the standard deduction in that year instead of itemizing the deduction allowable in computing taxable income for that year.","elects under section 144 to take the standard deduction instead of itemizing the deductions allowable in computing taxable income, there shall be treated as paid (but not allowable as a deduction) in such standard deduction year the lesser of the amounts determined under subdivisions (i) to (iii), inclusive, of this subparagraph."],"checked":"2026-11-02"},{"rule":"charity_carryover_standard_deduction_year","url":"https://www.irs.gov/pub/irs-pdf/p526.pdf","title":"Publication 526 (2025), Charitable Contributions","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Claim the standard deduction in a carryover year"],"checked":"2026-11-02"},{"rule":"charity_limits_classes","url":"https://www.law.cornell.edu/uscode/text/26/170","title":"26 U.S. Code § 170","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer’s contribution base for the taxable year.","For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of— (I) 60 percent of the taxpayer’s contribution base for the taxable year, over (II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year.","Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— (i) 30 percent of the taxpayer’s contribution base for the taxable year, or (ii) the excess of 50 percent of the taxpayer’s contribution base for the taxable year over—","the total amount of contributions of such property which may be taken into account under subsection (a) for any taxable year shall not exceed 30 percent of the taxpayer’s contribution base for such year. For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions (other than charitable contributions to which subparagraph (D) applies).","(I) 20 percent of the taxpayer’s contribution base for the taxable year, or (II) the excess of 30 percent of the taxpayer’s contribution base for the taxable year over the amount of the contributions of capital gain property to which subparagraph (C) applies. For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions."],"checked":"2026-11-02"},{"rule":"charity_limits_classes","url":"https://www.irs.gov/pub/irs-pdf/p526.pdf","title":"Publication 526 (2025), Charitable Contributions","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["1. Cash contributions subject to the limit based on 60% of AGI. Deduct the contributions that don’t exceed 60% of your AGI. 2. Noncash contributions (other than qualified conservation contributions) subject to the limit based on 50% of AGI. Deduct the contributions that don’t exceed 50% of your AGI minus your cash contributions to a 50% limit organization."],"checked":"2026-11-02"},{"rule":"charity_floor_carryover_170d1C","url":"https://www.law.cornell.edu/uscode/text/26/170","title":"26 U.S. Code § 170","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year.","(i) first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, (ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof, (iii) third, by taking into account charitable contributions to which subparagraph (B) applies to the extent thereof, (iv) fourth, by taking into account charitable contributions to which subparagraph (E) applies to the extent thereof, (v) fifth, by taking into account charitable contributions to which subparagraph (A) applies to the extent thereof, and (vi) sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof.","Contributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded","In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).","the term “applicable carryover rule” means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I)."],"checked":"2026-11-02"},{"rule":"charity_floor_carryover_170d1C","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 (One Big Beautiful Bill Act)","publisher":"U.S. Government Publishing Office (govinfo)","kind":"legislation","official":true,"quotes":["SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS"],"checked":"2026-11-02"},{"rule":"charity_floor_carryover_170d1C","url":"https://www.irs.gov/pub/irs-pdf/p505.pdf","title":"Publication 505 (2026), Tax Withholding and Estimated Tax","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["For 2026, if you plan to take an itemized deduction for a charitable contribution, you can only deduct charitable contributions that are more than 0.5% of your AGI."],"checked":"2026-11-02"},{"rule":"section_68_and_carryovers","url":"https://www.law.cornell.edu/uscode/text/26/68","title":"26 U.S. Code § 68","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by 2⁄37 of the lesser of— (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer.","This section shall be applied after the application of any other limitation on the allowance of any itemized deduction."],"checked":"2026-11-02"}]},{"id":"irc_68_2_37_limitation","stage":"itemized","title":"The §68 limitation on itemized deductions","summary":"From 2026 (OBBBA §70111) itemized deductions are reduced by 2/37 of the smaller of the itemized total and the taxable income (before §68, plus the itemized total) above the start of the 37% bracket: in that bracket each itemized dollar saves 35 cents. It applies to all itemized deductions, after every other limit. Federal engine 2.0: taxable income before the reduction is after the Schedule 1-A deductions and the QBI deduction (the 2026 draft Schedule A line 18 test: line 11b minus lines 13a and 13b), the QBI deduction being the one of the return figured without the reduction.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_68_2_37_limitation","lines":["1040sa.68"],"sources":[{"rule":"section_68","url":"https://www.law.cornell.edu/uscode/text/26/68","title":"26 U.S. Code § 68","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be reduced by 2⁄37 of the lesser of- (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins","This section shall be applied after the application of any other limitation on the allowance of any itemized deduction"],"checked":"2026-11-02"},{"rule":"section_68","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 (One Big Beautiful Bill Act), enrolled text","publisher":"U.S. Government Publishing Office (govinfo)","kind":"legislation","official":true,"quotes":["(c) <<NOTE: 26 USC 68 note.>> Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025"],"checked":"2026-11-02"}]},{"id":"irc_63d_itemized_total","stage":"itemized","title":"Total itemized deductions","summary":"Schedule A line 17: lines 4 through 16 after §68. This is the figure the state engine's itemized-conformity states read.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63d_itemized_total","lines":["1040sa.17"],"sources":[{"rule":"itemize_election","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year","a married individual filing a separate return where either spouse itemizes deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["will be less if you take the larger of your standard deduction or itemized deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040sca.pdf","title":"Instructions for Schedule A (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_63e_itemize_election","stage":"itemized","title":"Itemize or take the standard deduction","summary":"§63(e): itemizing is an election, so the filer takes the choice with the lower tax. itemizeMode auto (engine 1.5.1) figures the return both ways when Schedule A has amounts and keeps the lower total tax; on a tie (a difference of at most half a cent; engine 1.5.2) it takes the larger deduction, as the 1040 instructions say (\"your federal income tax will be less if you take the larger of your standard deduction or itemized deductions\"), so taxable income, which the capital-loss carryover worksheet reads, follows the larger deduction; the trace states both totals (1040.12e.auto_itemized_tax, 1040.12e.auto_standard_tax). The larger deduction is not always the lower tax: Form 8960 Part II (investment interest, state income tax) exists only on an itemized return. itemize elects it anyway (Schedule A line 18); standard never itemizes. A separate filer whose spouse itemizes has a standard deduction of zero (§63(c)(6)(A)) and no choice. Federal engine 2.0: with the AMT on the return the comparison also runs when nothing is itemized (i6251: itemizing can lower the total tax even when the itemized deductions are less than the standard deduction), and so it does on a return with a Form 1116 credit, whose line 3a apportions the standard deduction but only the listed itemized deductions (a separate filer with foreign dividends can pay less itemizing nothing).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_63e_itemize_election","lines":["1040.12e.itemized","1040.12e.auto_itemized_tax","1040.12e.auto_standard_tax"],"sources":[{"rule":"itemize_election","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year","a married individual filing a separate return where either spouse itemizes deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Instructions for Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["will be less if you take the larger of your standard deduction or itemized deductions"],"checked":"2026-11-02"},{"rule":"itemize_election","url":"https://www.irs.gov/pub/irs-pdf/i1040sca.pdf","title":"Instructions for Schedule A (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction"],"checked":"2026-11-02"},{"rule":"salt","url":"https://www.law.cornell.edu/uscode/text/26/164","title":"26 U.S. Code § 164","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in the case of any taxable year beginning in calendar year 2025, $40,000","in the case of any taxable year beginning in calendar year 2026, $40,400","reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount","in the case of any taxable year beginning in calendar year 2026, $505,000","shall not result in the applicable limitation amount being less than $10,000"],"checked":"2026-11-02"}]},{"id":"irc_170p_nonitemizer_charity","stage":"itemized","title":"Charitable deduction for non-itemizers","summary":"From 2026 a filer who does not itemize deducts cash gifts to public charities (not donor-advised funds or supporting organizations) up to $2,000 on a joint return, less otherwise; no 0.5% floor (§170(p), §63(b)(4)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_170p_nonitemizer_charity","lines":["1040.170p"],"sources":[{"rule":"charity_170p","url":"https://www.law.cornell.edu/uscode/text/26/170","title":"26 U.S. Code § 170","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["if the individual does not elect to itemize deductions for such taxable year, the deduction under this section shall be equal to the deduction, not in excess of 1,000 ($2,000 in the case of a joint return)","determined without regard to subsections (b)(1)(G)(ii), (b)(1)(I), and (d)(1)","for the establishment of a new, or maintenance of an existing, donor advised fund"],"checked":"2026-11-02"},{"rule":"charity_170p","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S. Code § 63","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["(4) the deduction provided in section 170(p)"],"checked":"2026-11-02"},{"rule":"charity_170p","url":"https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm","title":"Public Law 119-21 (One Big Beautiful Bill Act), enrolled text","publisher":"U.S. Government Publishing Office (govinfo)","kind":"legislation","official":true,"quotes":["SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE"],"checked":"2026-11-02"}]},{"id":"irc_408d2_conversion_nontaxable","stage":"retirement","title":"Form 8606: the nontaxable part of a conversion","summary":"Form 8606 line 11: all traditional IRAs are one contract and the year's distributions one distribution (§408(d)(2)), so basis is recovered pro rata: line 10 = basis / (December 31 value + distributions + conversions), at most 1; line 11 = the conversion times line 10.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_408d2_conversion_nontaxable","lines":["8606.11"],"sources":[{"rule":"f8606_prorata","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["all individual retirement plans shall be treated as 1 contract, (B) all distributions during any taxable year shall be treated as 1 distribution"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_408d2_nontaxable_total","stage":"retirement","title":"Form 8606: the nontaxable part of all distributions","summary":"Form 8606 line 13: line 11 plus the IRA distributions times line 10. Employer-plan dollars carry no basis here.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_408d2_nontaxable_total","lines":["8606.13"],"sources":[{"rule":"f8606_prorata","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["all individual retirement plans shall be treated as 1 contract, (B) all distributions during any taxable year shall be treated as 1 distribution"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_408d2_basis_remaining","stage":"retirement","title":"Form 8606: basis carried forward","summary":"Form 8606 line 14: the basis left for later years.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_408d2_basis_remaining","lines":["8606.14"],"sources":[{"rule":"f8606_prorata","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["all individual retirement plans shall be treated as 1 contract, (B) all distributions during any taxable year shall be treated as 1 distribution"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_408a_d4_roth_taxable","stage":"retirement","title":"Roth IRA distributions: ordering and the 5-year rules","summary":"A Roth distribution comes first from contributions, then from conversions oldest first (each conversion's taxable part first), then from earnings (§408A(d)(4)(B)). A qualified distribution (59½ or disabled, and 5 taxable years since the first Roth contribution) is tax-free. Otherwise the earnings are taxable (Form 8606 line 25c), and a conversion's taxable part taken within 5 years of that conversion is subject to the §72(t) additional tax (§408A(d)(3)(F)). On the age clock, with the 5-year clock met, only the share of the year before 59½ is nonqualified.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_408a_d4_roth_taxable","lines":["8606.25c"],"sources":[{"rule":"roth_408a","url":"https://www.law.cornell.edu/uscode/text/26/408A","title":"26 U.S. Code § 408A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["made on or after the date on which the individual attains age 59½","within the 5-taxable year period beginning with the first taxable year for which the individual made a contribution to a Roth IRA","such distribution is made within the 5-taxable year period beginning with the taxable year in which such contribution was made, then section 72(t) shall be applied as if such portion were includible in gross income","Qualified rollover contributions to which paragraph (3) applies on a first-in, first-out basis","shall be allocated first to the portion of such contribution required to be included in gross income"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_72t_early_distributions","stage":"retirement","title":"Form 5329: early distributions","summary":"Form 5329 line 1: the taxable traditional-account withdrawal before 59½ plus nonqualified Roth earnings and recaptured conversions, and (federal engine 2.3) a nonqualified annuity's taxable payments before 59½ (§72(q); trace row 5329.1.annuity).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72t_early_distributions","lines":["5329.1"],"sources":[{"rule":"72t","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be increased by an amount equal to 10 percent of the portion of such amount which is includible in gross income","made on or after the date on which the employee attains age 59½"],"checked":"2026-11-02"},{"rule":"72t_exceptions","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["made to a beneficiary (or to the estate of the employee) on or after the death of the employee","attributable to the employee's being disabled within the meaning of subsection (m)(7)","part of a series of substantially equal periodic payments (not less frequently than annually)","made to an employee after separation from service after attainment of age 55","Subparagraphs (A)(v) and (C) of paragraph (2) shall not apply to distributions from an individual retirement plan","unless the series of payments begins after the employee separates from service"],"checked":"2026-11-02"},{"rule":"72t_exceptions","url":"https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions","title":"Retirement topics - Exceptions to tax on early distributions","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_72t2_exceptions","stage":"retirement","title":"Form 5329: the exceptions to the additional tax","summary":"Form 5329 line 2: a distribution to a beneficiary on or after the owner's death (§72(t)(2)(A)(ii), beneficiaryDistribution, engine 2.0.1; Form 5329 exception 04), from an IRA or an employer plan; disability (iii); substantially equal periodic payments (iv), their taxable part; employer-plan distributions after separation from service in or after the year the filer reaches 55, or 50 for a qualified public safety employee ((v), §72(t)(10)), never for an IRA (§72(t)(3)(A)); and, at any age, a distribution from a governmental §457(b) plan (governmental457bDistribution, engine 1.5.0): §72(t) reaches only the qualified plans of §4974(c), which do not include §457(b) plans (Form 5329 exception 13), except the part attributable to a rollover from a qualified plan (§72(t)(9)), which the caller leaves out of that field. The 10% applies to the rest at the age clock's rate.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72t2_exceptions","lines":["5329.2"],"sources":[{"rule":"72t_exceptions","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["made to a beneficiary (or to the estate of the employee) on or after the death of the employee","attributable to the employee's being disabled within the meaning of subsection (m)(7)","part of a series of substantially equal periodic payments (not less frequently than annually)","made to an employee after separation from service after attainment of age 55","Subparagraphs (A)(v) and (C) of paragraph (2) shall not apply to distributions from an individual retirement plan","unless the series of payments begins after the employee separates from service"],"checked":"2026-11-02"},{"rule":"72t_exceptions","url":"https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions","title":"Retirement topics - Exceptions to tax on early distributions","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"},{"rule":"gov_457b","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["If any taxpayer receives any amount from a qualified retirement plan (as defined in section 4974(c))","attributable to an amount transferred to an eligible deferred compensation plan from a qualified retirement plan"],"checked":"2026-11-02"},{"rule":"gov_457b","url":"https://www.law.cornell.edu/uscode/text/26/4974","title":"26 U.S. Code § 4974","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a plan described in section 401(a) which includes a trust exempt from tax under section 501(a)","an individual retirement annuity described in section 408(b)"],"checked":"2026-11-02"},{"rule":"gov_457b","url":"https://www.irs.gov/pub/irs-pdf/i5329.pdf","title":"Instructions for Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Distributions from a section 457 plan, which aren't from a rollover from a qualified retirement plan"],"checked":"2026-11-02"}]},{"id":"irc_4974_missed_rmd_excise","stage":"retirement","title":"Form 5329: the missed-RMD excise tax","summary":"Form 5329 line 55: 25% of a required minimum distribution not taken, or 10% when it is corrected within the correction window (§4974(a), (e)). It is part of Schedule 2 line 8 and of the total tax, but not of the tax Form 2210 uses.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4974_missed_rmd_excise","lines":["5329.55"],"sources":[{"rule":"missed_rmd_4974","url":"https://www.law.cornell.edu/uscode/text/26/4974","title":"26 U.S. Code § 4974","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["there is hereby imposed a tax equal to 25 percent of the amount by which such minimum required distribution exceeds the actual amount distributed during the taxable year","the first sentence of subsection (a) shall be applied by substituting \"10 percent\" for \"25 percent\""],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"reg_401a9_rmd_divisor","stage":"retirement","title":"The RMD divisor: Uniform Lifetime or Joint and Last Survivor","summary":"From the SECURE 2.0 applicable age for the birth year (the tax year minus the age reached), the divisor is the Uniform Lifetime Table's, or the Joint and Last Survivor Table's when the spouse is the sole beneficiary all year and more than 10 years younger (26 CFR 1.401(a)(9)-5(c)(2), -9(d)); ages are those reached in the year.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#reg_401a9_rmd_divisor","lines":["rmd.divisor"],"sources":[{"rule":"joint_life","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5","publisher":"eCFR (Office of the Federal Register / GPO)","kind":"regulation","official":true,"quotes":["If the employee's surviving spouse who is more than 10 years younger than the employee is the employee's sole beneficiary, then the applicable denominator is the joint and last survivor life expectancy for the employee and spouse"],"checked":"2026-11-02"},{"rule":"joint_life","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9","publisher":"eCFR (Office of the Federal Register / GPO)","kind":"regulation","official":true,"quotes":["The following table, referred to as the Joint and Last Survivor Table, is used for determining the joint and last survivor life expectancy of two individuals","75 33.2 32.4 31.5 30.7 29.9 29.1 28.3 27.5 26.8 76","73 33.4 32.6 31.7 30.9 30.1 29.4 28.6 27.9 27.2 74","80 25.3 24.6 23.8 23.1 22.3 21.6 20.9 20.2 19.6 81"],"checked":"2026-11-02"},{"rule":"ult","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9: Life expectancy and distribution period tables","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Age of employee Applicable denominator 72 27.4 73 26.5 74 25.5 75 24.6 76 23.7","117 2.7 118 2.5 119 2.3 120+ 2.0"],"checked":"2026-11-02"},{"rule":"rmd_age","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-2","title":"26 CFR 1.401(a)(9)-2: Distributions commencing during an employee's lifetime","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["born on or after January 1, 1951, but before January 1, 1959, the applicable age is age 73; (v) [Reserved]","born on or after January 1, 1960, the applicable age is"],"checked":"2026-11-02"}]},{"id":"reg_401a9_rmd_required","stage":"retirement","title":"The required minimum distribution","summary":"The December 31 balance of the prior year divided by the divisor. The planner divides the balance at the start of the plan year, before the year's returns (engine 1.5.0; before it the grown balance). The planner can take the first RMD by its required beginning date (federal engine 2.2, API firstRmdTiming \"aprilFollowingYear\"; default: by December 31 of the first year): the first year's floor is 0 and what the owner withdraws that year counts toward the first RMD; the rest is due in the next year with that year's own RMD, figured on its own December 31 balance (two RMDs in one year); no Roth conversion in the deferral year. A single-year request takes the year's distributions as given. The still-working exception for an employer plan is not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#reg_401a9_rmd_required","lines":["rmd.required"],"sources":[{"rule":"joint_life","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5","publisher":"eCFR (Office of the Federal Register / GPO)","kind":"regulation","official":true,"quotes":["If the employee's surviving spouse who is more than 10 years younger than the employee is the employee's sole beneficiary, then the applicable denominator is the joint and last survivor life expectancy for the employee and spouse"],"checked":"2026-11-02"},{"rule":"joint_life","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9","publisher":"eCFR (Office of the Federal Register / GPO)","kind":"regulation","official":true,"quotes":["The following table, referred to as the Joint and Last Survivor Table, is used for determining the joint and last survivor life expectancy of two individuals","75 33.2 32.4 31.5 30.7 29.9 29.1 28.3 27.5 26.8 76","73 33.4 32.6 31.7 30.9 30.1 29.4 28.6 27.9 27.2 74","80 25.3 24.6 23.8 23.1 22.3 21.6 20.9 20.2 19.6 81"],"checked":"2026-11-02"},{"rule":"ult","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9: Life expectancy and distribution period tables","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Age of employee Applicable denominator 72 27.4 73 26.5 74 25.5 75 24.6 76 23.7","117 2.7 118 2.5 119 2.3 120+ 2.0"],"checked":"2026-11-02"},{"rule":"rmd_prior_balance","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["close of business on December 31 of the preceding year"],"checked":"2026-11-02"},{"rule":"rmd_prior_balance","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["the account balance as of the last valuation date in the calendar year preceding that distribution calendar year"],"checked":"2026-11-02"},{"rule":"first_rmd_april1_delay","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The distribution required for the employee's first distribution calendar year (as described in paragraph (a)(2)(ii) of this section) may be made on or before April 1 of the following calendar year. The required minimum distribution for any other distribution calendar year (including the required minimum distribution for the distribution calendar year in which the employee's required beginning date occurs or the first distribution calendar year for the designated beneficiary) must be made on or before the end of that distribution calendar year.","If an employee's required beginning date is April 1 of the calendar year following the calendar year in which the employee attains the applicable age, then the employee's first distribution calendar year is the year the employee attains the applicable age."],"checked":"2026-11-02"},{"rule":"first_rmd_april1_delay","url":"https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs","title":"Retirement plan and IRA required minimum distributions FAQs","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["You must take your first required minimum distribution for the year in which you reach age 73. However, you can delay taking the first RMD until April 1 of the following year. If you reach age 73 in 2024, you must take your first RMD by April 1, 2025, and the second RMD by Dec. 31, 2025."],"checked":"2026-11-02"},{"rule":"first_rmd_april1_delay","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["However, any amount distributed in the year you become age 73 will be credited toward the amount that must be distributed by April 1 of the following year.","The required minimum distribution for any year after the year you reach age 73 must be made by December 31 of that later year."],"checked":"2026-11-02"},{"rule":"first_rmd_april1_delay","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["The term “required beginning date” means April 1 of the calendar year following the later of— (I) the calendar year in which the employee attains the applicable age, or (II) the calendar year in which the employee retires."],"checked":"2026-11-02"},{"rule":"second_rmd_balance_not_reduced","url":"https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs","title":"Retirement plan and IRA required minimum distributions FAQs","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["If you reach age 73 in 2024: Your first RMD is due by April 1, 2025, based on your account balance on December 31, 2023, and Your second RMD is due by December 31, 2025, based on your account balance on December 31, 2024."],"checked":"2026-11-02"},{"rule":"second_rmd_balance_not_reduced","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Distributions reduce the account balance in the year they are made. A distribution for last year made after December 31 of last year reduces the account balance for this year, but not for last year. Disregard distributions made after December 31 of last year in determining your required minimum distribution for this year.","The IRA account balance is the amount in the IRA at the end of the year preceding the year for which the required minimum distribution is being figured."],"checked":"2026-11-02"},{"rule":"second_rmd_balance_not_reduced","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.408-8","title":"26 CFR 1.408-8: Distribution requirements for individual retirement plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["the account balance of the IRA as of December 31 of the calendar year preceding the calendar year for which distributions are required to be made is substituted for the account balance of the employee under","Except as provided in paragraph (d) of this section, no adjustments are made for contributions or distributions after that date."],"checked":"2026-11-02"},{"rule":"second_rmd_balance_not_reduced","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["the account balance as of the last valuation date in the calendar year preceding that distribution calendar year (valuation calendar year)","The account balance is decreased by distributions made in the valuation calendar year after the valuation date."],"checked":"2026-11-02"}]},{"id":"reg_401a9_inherited_divisor","stage":"retirement","title":"An inherited account: the payout rule and the distribution period","summary":"The beneficiary of an inherited IRA or plan account: whether the decedent died before or on or after the required beginning date (April 1 of the year after the year the decedent reached the applicable age; a Roth IRA has none), then the rule by the beneficiary. A designated beneficiary who is not an eligible one: the 10-year rule, with annual distributions in years 1-9 only when the death was on or after the required beginning date. An eligible designated beneficiary (the surviving spouse, a minor child of the decedent, a disabled or chronically ill person, someone not more than 10 years younger): life expectancy, or the 10-year rule by election when the death was before the required beginning date; a minor child to 21, then 10 years. No designated beneficiary (an estate, a charity, a trust that is not a see-through trust): the 5-year rule, or the decedent's remaining life expectancy. A death before 2020: life expectancy for every designated beneficiary. The period is the Single Life Table at the beneficiary's age in the year after the death, reduced by one each year; the surviving spouse's is read again each year; after the required beginning date, the greater of that and the decedent's remaining life expectancy.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#reg_401a9_inherited_divisor","lines":["rmd.inherited.divisor"],"sources":[{"rule":"inherited_10_year_rule","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["10-year rule. Distributions satisfy this paragraph (c)(3) if the employee's entire interest is distributed by the end of the calendar year that includes the tenth anniversary of the date of the employee's death.","If the employee dies on or after the effective date of section 401(a)(9)(H) (as determined in"],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["10-year limit for designated beneficiary who is not an eligible designated beneficiary. If the employee's designated beneficiary is not an eligible designated beneficiary (as determined in accordance with","then the calendar year described in this paragraph (e)(2) is the calendar year that includes the tenth anniversary of the date of the employee's death."],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be applied by substituting “10 years” for “5 years”, and (II) shall apply whether or not distributions of the employee’s interests have begun in accordance with subparagraph (A)."],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2025, the beneficiary would have to fully distribute the IRA by December 31, 2035.","the beneficiary is a designated beneficiary who is not an eligible designated beneficiary, regardless of whether the owner died before reaching their required beginning date.","If the IRA owner dies before the required beginning date and the 10-year rule applies, no distribution is required for any year before the 10th year.","Don't use any of the tables if the owner died before their required beginning date and either the 5-year rule or the 10-year rule (discussed earlier) applies."],"checked":"2026-11-02"},{"rule":"inherited_edb","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["The term “eligible designated beneficiary” means, with respect to any employee, any designated beneficiary who is— (I) the surviving spouse of the employee, (II) subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)), (III) disabled (within the meaning of section 72(m)(7)),","or (V) an individual not described in any of the preceding subclauses who is not more than 10 years younger than the employee.","The determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of death of the employee."],"checked":"2026-11-02"},{"rule":"inherited_edb","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-4","title":"26 CFR 1.401(a)(9)-4: Determination of the designated beneficiary","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["A designated beneficiary of the employee is an eligible designated beneficiary if, at the time of the employee's death, the designated beneficiary is","Determination of age of majority. An individual reaches the age of majority on the individual's 21st birthday.","Whether a designated beneficiary is not more than 10 years younger than the employee is determined based on the dates of birth of the employee and the beneficiary.","if the employee has more than one designated beneficiary, and at least one of those beneficiaries is not an eligible designated beneficiary, then the employee is treated as not having an eligible designated beneficiary.","Because B was not disabled as of the date of A's death, B ceases to be an eligible designated beneficiary upon reaching the age of majority in 2024"],"checked":"2026-11-02"},{"rule":"inherited_edb","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["An IRA beneficiary is an eligible designated beneficiary if the beneficiary is the owner's surviving spouse, the owner's minor child, a disabled individual, a chronically ill individual, or any other individual who is not more than 10 years younger than the IRA owner."],"checked":"2026-11-02"},{"rule":"inherited_life_expectancy_payout","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Life expectancy payments. Distributions satisfy this paragraph (c)(4) if annual distributions that satisfy the requirements of","commence by the end of the calendar year following the calendar year in which the employee died, except as provided in paragraph (d) of this section (permitting a surviving spouse to delay the commencement of distributions).","Thus, a required minimum distribution is due for the calendar year of the eligible designated beneficiary's death, and that amount must be distributed during that calendar year to any beneficiary of the deceased eligible designated beneficiary to the extent it has not already been distributed to the eligible designated beneficiary.","If the employee has an eligible designated beneficiary, distributions must satisfy the life expectancy rule described in paragraph (c)(4) of this section."],"checked":"2026-11-02"},{"rule":"inherited_life_expectancy_payout","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["the applicable denominator for distribution calendar years beginning with the first distribution calendar year for the designated beneficiary (as described in paragraph (a)(2)(iii) of this section) is the designated beneficiary's remaining life expectancy","For purposes of this paragraph (d), all life expectancies are determined using the Single Life Table in","If the designated beneficiary is not the employee's surviving spouse, then the designated beneficiary's remaining life expectancy is determined initially using the beneficiary's age as of the beneficiary's birthday in the calendar year following the calendar year of the employee's death.","for subsequent calendar years, the designated beneficiary's remaining life expectancy is determined by reducing that initial life expectancy by one for each calendar year that has elapsed after that first calendar year.","If the surviving spouse of the employee is the employee's sole beneficiary, then the surviving spouse's remaining life expectancy is redetermined each distribution calendar year up to and including the calendar year of the spouse's death using the surviving spouse's age as of the surviving spouse's birthday in the distribution calendar year."],"checked":"2026-11-02"},{"rule":"inherited_life_expectancy_payout","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["The terms of most IRAs require individual designated beneficiaries, who are eligible designated beneficiaries, to take required minimum distributions using the life expectancy rules (explained later) unless such beneficiaries elect to take distributions using the 10-year rule.","The deadline for making this election is the earlier of December 31 of the year the beneficiary must take the first required distribution, using their life expectancy or December 31 of the 10th anniversary for the 10-year rule."],"checked":"2026-11-02"},{"rule":"inherited_spouse_rules","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["If the employee's surviving spouse is the employee's sole beneficiary, then the commencement of distributions under paragraph (b)(3) or (c)(4) of this section may be delayed until the end of the calendar year in which the employee would have attained the applicable age.","are to be applied as if the surviving spouse were the employee. For this purpose, the date of death of the surviving spouse is substituted for the date of death of the employee."],"checked":"2026-11-02"},{"rule":"inherited_spouse_rules","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.408-8","title":"26 CFR 1.408-8: Distribution requirements for individual retirement plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The surviving spouse of an individual may elect, in the manner described in paragraph (c)(2) of this section, to treat the surviving spouse's entire interest as a beneficiary in the individual's IRA (or the remaining part of that interest if distributions have begun) as the surviving spouse's own IRA.","In order to make the election described in this paragraph (c)(1), the surviving spouse must be the sole beneficiary of the IRA and have an unlimited right to withdraw amounts from the IRA."],"checked":"2026-11-02"},{"rule":"inherited_spouse_rules","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["then the first distribution calendar year for the designated beneficiary is the calendar year following the calendar year in which the employee died (or, if applicable, the calendar year described in","For purposes of this paragraph (d), all life expectancies are determined using the Single Life Table in"],"checked":"2026-11-02"},{"rule":"inherited_spouse_rules","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the date on which the distributions are required to begin under clause (iii)(III) shall not be earlier than the date on which the employee would have attained the applicable age"],"checked":"2026-11-02"},{"rule":"inherited_spouse_rules","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If you inherit a traditional IRA from your spouse, you generally have the following two choices. 1. Treat it as your own IRA by designating yourself as the account owner; or 2. Treat it as your own by rolling it over into your IRA","You will be considered to have chosen to treat the IRA as your own if: • Contributions (including rollover contributions) are made to the inherited IRA, or • You don't take the required minimum distribution for a year as a beneficiary of the IRA.","You don't need to take any required minimum distributions until December 31 of 2030, the year your spouse would have reached age 73.","If you are the owner’s surviving spouse, then the applicable denominator continues to be determined each subsequent year using Table I . However, if you elect to treat the inherited IRA as your own, you will use Table III."],"checked":"2026-11-02"},{"rule":"inherited_death_after_rbd","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The requirement to take an annual distribution in accordance with the preceding sentence continues to apply for every distribution calendar year until the employee's interest is fully distributed.","If section 401(a)(9)(H) applies to the employee's interest in the plan, then the distributions also must satisfy either section 401(a)(9)(B)(ii) (applied by substituting 10 years for 5 years)","the applicable denominator is the greater of— (A) The designated beneficiary's remaining life expectancy; and (B) The employee's remaining life expectancy.","If the employee does not have a designated beneficiary as of the date determined under","the applicable denominator is the employee's remaining life expectancy.","The employee's remaining life expectancy is determined initially using the employee's age as of the employee's birthday in the calendar year of the employee's death. In subsequent calendar years, the remaining life expectancy is determined by reducing that initial life expectancy by one for each calendar year that has elapsed after that first calendar year."],"checked":"2026-11-02"},{"rule":"inherited_death_after_rbd","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If the owner died on or after their required beginning date (defined earlier) and you are a designated beneficiary, base your required minimum distributions for years after the year of the owner’s death on the longer of: • Your single life expectancy shown in Table I in Appendix B; or • The owner's life expectancy. If there is no designated beneficiary, use the owner's life expectancy.","In this case, use the owner’s life expectancy for their age as of the owner’s birthday in the year of death and reduce it by 1 for each subsequent year."],"checked":"2026-11-02"},{"rule":"inherited_minor_child","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and any remainder of the portion of the individual’s interest to which subparagraph (H)(ii) applies shall be distributed within 10 years after such date."],"checked":"2026-11-02"},{"rule":"inherited_minor_child","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["10-year limit after minor child of the employee reaches age of majority. If the employee's designated beneficiary is an eligible designated beneficiary only because the beneficiary is the child of the employee who has not reached the age of majority at the time of the employee's death, then the calendar year described in this paragraph (e)(4) is the calendar year that includes the tenth anniversary of the date the designated beneficiary reaches the age of majority.","then the entire interest of the employee must be distributed by the end of the earliest of the calendar years described in paragraph (e)(2), (3), or (4) of this section."],"checked":"2026-11-02"},{"rule":"inherited_minor_child","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The requirement to take an annual distribution in accordance with the preceding sentence continues to apply for all subsequent calendar years until the employee's interest is fully distributed."],"checked":"2026-11-02"},{"rule":"inherited_minor_child","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["In either of those cases, the 10-year period ends on December 31 of the year containing the 10th anniversary of the eligible designated beneficiary's death or the child's attainment of majority."],"checked":"2026-11-02"},{"rule":"inherited_no_designated_beneficiary","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["If the employee does not have a designated beneficiary, as determined under","distributions must satisfy the 5-year rule described in paragraph (c)(2) of this section;","Distributions satisfy this paragraph (c)(2) if the employee's entire interest is distributed by the end of the calendar year that includes the fifth anniversary of the date of the employee's death."],"checked":"2026-11-02"},{"rule":"inherited_no_designated_beneficiary","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["The 5-year rule applies to beneficiaries who are not designated beneficiaries if the owner died before their required beginning date (such as an estate or trust (but see Trust as beneficiary, later)).","You use the owner’s life expectancy to calculate required minimum distributions when the owner dies on or after the required beginning date and there is no designated beneficiary as of September 30 of the year following the year of the owner’s death."],"checked":"2026-11-02"},{"rule":"required_beginning_date","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["The term “required beginning date” means April 1 of the calendar year following the later of— (I) the calendar year in which the employee attains the applicable age, or (II) the calendar year in which the employee retires."],"checked":"2026-11-02"},{"rule":"required_beginning_date","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.408-8","title":"26 CFR 1.408-8: Distribution requirements for individual retirement plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Thus, the IRA owner's required beginning date is April 1 of the calendar year following the calendar year in which the individual attains the applicable age."],"checked":"2026-11-02"},{"rule":"roth_ira_inherited","url":"https://www.law.cornell.edu/uscode/text/26/408A","title":"26 U.S. Code § 408A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the following provisions shall not apply to any Roth IRA: (A) Section 401(a)(9)(A)."],"checked":"2026-11-02"},{"rule":"roth_ira_inherited","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.408-8","title":"26 CFR 1.408-8: Distribution requirements for individual retirement plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["No minimum distributions are required to be made from a Roth IRA while the owner is alive. After the Roth IRA owner dies, the required minimum distribution rules apply to the Roth IRA as though the Roth IRA owner died before his or her required beginning date."],"checked":"2026-11-02"},{"rule":"roth_ira_inherited","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/section-1.408A-6","title":"26 CFR 1.408A-6: Distributions","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["The minimum distribution rules apply to the Roth IRA as though the Roth IRA owner died before his or her required beginning date."],"checked":"2026-11-02"},{"rule":"roth_ira_inherited","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before their required beginning date."],"checked":"2026-11-02"},{"rule":"five_year_rule_2020_disregard","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["if clause (ii) of subparagraph (B) applies, the 5-year period described in such clause shall be determined without regard to calendar year 2020.","The requirements of this paragraph shall not apply for calendar year 2020 to"],"checked":"2026-11-02"},{"rule":"five_year_rule_2020_disregard","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["For purposes of this paragraph (c)(2), if an employee died before January 1, 2020, then the 2020 calendar year is disregarded when determining the calendar year that includes the fifth anniversary of the date of the employee's death.","For example, if an employee dies on any day in 2022, the entire interest must be distributed by the end of 2027 in order to satisfy the 5-year rule in section 401(a)(9)(B)(ii)."],"checked":"2026-11-02"},{"rule":"slt","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9: Life expectancy and distribution period tables","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Age Life expectancy 0 84.6 1 83.7 2 82.8","55 31.6 56 30.6 57 29.8","117 1.6 118 1.4 119 1.1 120+ 1.0"],"checked":"2026-11-02"},{"rule":"slt_2022_reset","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9","title":"26 CFR 1.401(a)(9)-9: Life expectancy and distribution period tables","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["If an employee died before January 1, 2022, and, under the rules of","the applicable denominator for a distribution calendar year beginning on or after January 1, 2022, is determined by using the Single Life Table in paragraph (b) of this section to determine the initial life expectancy for the age of the relevant individual in the relevant calendar year and then reducing the resulting applicable denominator by 1 for each subsequent year.","then the applicable denominator would be 12.1 years (the 14.1-year life expectancy for a 76-year-old under the Single Life Table in paragraph (b) of this section, reduced by 2 years)."],"checked":"2026-11-02"},{"rule":"rbd_year_death_no_rmd","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If an IRA owner dies after reaching age 73, but before the IRA owner's required beginning date, no minimum distribution is required for that year because death occurred before the required beginning date."],"checked":"2026-11-02"},{"rule":"rbd_year_death_no_rmd","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-2","title":"26 CFR 1.401(a)(9)-2: Distributions commencing during an employee's lifetime","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["distributions to the employee are not treated as having begun in accordance with section 401(a)(9)(A)(ii) until the employee's required beginning date","Thus, even if payments have been made before the employee's required beginning date, the rules of § 1.401(a)(9)-3 will apply if the employee dies before that date."],"checked":"2026-11-02"}]},{"id":"reg_401a9_inherited_required","stage":"retirement","title":"An inherited account: the year's required distribution","summary":"The December 31 balance of the prior year divided by the year's distribution period; the whole account in the last year of a 10-year or 5-year rule, or when the period has run down to 1 or less. In the year of death, when the decedent died on or after the required beginning date, the decedent's own RMD less what the decedent took. The annual distributions of 2021 to 2024 under the 10-year rule after the required beginning date were waived by IRS notices (no excise). A traditional account's distribution is ordinary income on Form 1040 line 4b and is excepted from the 10% additional tax as a beneficiary's (unless the spouse treats the IRA as their own); the shortfall against the minimum is charged the 25% excise (10% corrected). An inherited Roth IRA's distributions are taken as qualified.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#reg_401a9_inherited_required","lines":["rmd.inherited.required"],"sources":[{"rule":"inherited_year_of_death_rmd","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Thus, a required minimum distribution is due for the calendar year of the employee's death, and that amount must be distributed during that year to any beneficiary to the extent it has not already been distributed to the employee."],"checked":"2026-11-02"},{"rule":"inherited_year_of_death_rmd","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If the owner died before the required beginning date, there is no required minimum distribution in the year of the owner's death.","If the owner died on or after the required beginning date, the IRA beneficiaries are responsible for figuring and distributing the owner's required minimum distribution in the year of death.","If an IRA owner dies after reaching age 73, but before the IRA owner's required beginning date, no minimum distribution is required for that year because death occurred before the required beginning date."],"checked":"2026-11-02"},{"rule":"inherited_rmd_waivers_2021_2024","url":"https://www.irs.gov/pub/irs-drop/n-22-53.pdf","title":"Notice 2022-53: Certain Required Minimum Distributions for 2021 and 2022","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the IRS will not assert that an excise tax is due under section 4974.","would be required to be made pursuant to section 401(a)(9) in 2021 or 2022 under a defined contribution plan or IRA","the employee (or IRA owner) died in 2020 or 2021 and on or after the employee’s (or IRA owner’s) required beginning date, and (2) the designated beneficiary is not taking lifetime or life expectancy payments pursuant to section 401(a)(9)(B)(iii);","the eligible designated beneficiary died in 2020 or 2021, and (2) that eligible designated beneficiary was taking lifetime or life expectancy payments pursuant to section 401(a)(9)(B)(iii) of the Code."],"checked":"2026-11-02"},{"rule":"inherited_rmd_waivers_2021_2024","url":"https://www.irs.gov/pub/irs-drop/n-23-54.pdf","title":"Notice 2023-54: Transition relief and guidance relating to certain RMDs (2023)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the IRS will not assert that an excise tax is due under § 4974.","would be required to be made pursuant to § 401(a)(9) in 2023 under a defined contribution plan or IRA"],"checked":"2026-11-02"},{"rule":"inherited_rmd_waivers_2021_2024","url":"https://www.irs.gov/pub/irs-drop/n-24-35.pdf","title":"Notice 2024-35: Certain Required Minimum Distributions for 2024","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["To the extent a taxpayer did not take a specified RMD (as defined in section IV.C of this notice), the IRS will not assert that an excise tax is due under § 4974.","would be required to be made pursuant to § 401(a)(9) in 2024 under a defined contribution plan or IRA that is subject to the rules of § 401(a)(9)(H)","the employee (or IRA owner) died in 2020, 2021, 2022, or 2023, and on or after the employee’s (or IRA owner’s) required beginning date, and (2) the designated beneficiary is not using the lifetime or life expectancy payments exception under § 401(a)(9)(B)(iii);","a beneficiary of an eligible designated beneficiary (including a designated beneficiary who is treated as an eligible designated beneficiary pursuant to § 401(b)(5) of the SECURE Act) if: (1) the eligible designated beneficiary died in 2020, 2021, 2022, or 2023, and (2) that eligible designated beneficiary was using the lifetime or life expectancy payments exception under § 401(a)(9)(B)(iii) of the Code.","Final regulations regarding RMDs under § 401(a)(9) and related provisions are anticipated to apply for determining RMDs for calendar years beginning on or after January 1, 2025."],"checked":"2026-11-02"},{"rule":"missed_inherited_rmd_4974","url":"https://www.law.cornell.edu/uscode/text/26/4974","title":"26 U.S. Code § 4974","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["there is hereby imposed a tax equal to 25 percent of the amount by which such minimum required distribution exceeds the actual amount distributed during the taxable year","the first sentence of subsection (a) shall be applied by substituting \"10 percent\" for \"25 percent\""],"checked":"2026-11-02"},{"rule":"missed_inherited_rmd_4974","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["If the 10-year rule applies, the amount remaining in the IRA, if any, after December 31 of the year containing the 10th anniversary of the owner's death is subject to the excise tax detailed in Excess Accumulations (Insufficient Distributions), later."],"checked":"2026-11-02"},{"rule":"72t_exceptions","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["made to a beneficiary (or to the estate of the employee) on or after the death of the employee","attributable to the employee's being disabled within the meaning of subsection (m)(7)","part of a series of substantially equal periodic payments (not less frequently than annually)","made to an employee after separation from service after attainment of age 55","Subparagraphs (A)(v) and (C) of paragraph (2) shall not apply to distributions from an individual retirement plan","unless the series of payments begins after the employee separates from service"],"checked":"2026-11-02"},{"rule":"72t_exceptions","url":"https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions","title":"Retirement topics - Exceptions to tax on early distributions","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees"],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-3","title":"26 CFR 1.401(a)(9)-3: Death before required beginning date","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["10-year rule. Distributions satisfy this paragraph (c)(3) if the employee's entire interest is distributed by the end of the calendar year that includes the tenth anniversary of the date of the employee's death.","If the employee dies on or after the effective date of section 401(a)(9)(H) (as determined in"],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-5","title":"26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["10-year limit for designated beneficiary who is not an eligible designated beneficiary. If the employee's designated beneficiary is not an eligible designated beneficiary (as determined in accordance with","then the calendar year described in this paragraph (e)(2) is the calendar year that includes the tenth anniversary of the date of the employee's death."],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.law.cornell.edu/uscode/text/26/401","title":"26 U.S. Code § 401","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be applied by substituting “10 years” for “5 years”, and (II) shall apply whether or not distributions of the employee’s interests have begun in accordance with subparagraph (A)."],"checked":"2026-11-02"},{"rule":"inherited_10_year_rule","url":"https://www.irs.gov/pub/irs-pdf/p590b.pdf","title":"Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2025, the beneficiary would have to fully distribute the IRA by December 31, 2035.","the beneficiary is a designated beneficiary who is not an eligible designated beneficiary, regardless of whether the owner died before reaching their required beginning date.","If the IRA owner dies before the required beginning date and the 10-year rule applies, no distribution is required for any year before the 10th year.","Don't use any of the tables if the owner died before their required beginning date and either the 5-year rule or the 10-year rule (discussed earlier) applies."],"checked":"2026-11-02"}]},{"id":"irc_6654d_required_annual_payment","stage":"payments","title":"Form 2210: the required annual payment","summary":"Form 2210 line 9: the smaller of 90% of this year's tax (the income tax including the NIIT, plus the additional tax on distributions; not the missed-RMD excise) and 100% of last year's tax, 110% when last year's AGI exceeded $150,000 ($75,000 on a separate return); the prior-year harbor only when last year was a full 12-month year with a return (§6654(d)). No penalty when the tax less withholding is under $1,000 (§6654(e)(1)) or last year's 12-month return showed no tax (§6654(e)(2)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_6654d_required_annual_payment","lines":["2210.9"],"sources":[{"rule":"6654","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting \"110 percent\" for \"100 percent\"","shall be applied by substituting \"$75,000\" for \"$150,000\"","reduced by the credit allowable under section 31, is less than $1,000"],"checked":"2026-11-02"},{"rule":"estimated_2210","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an equal part of such amount shall be deemed paid on each due date","the 15th day of the 4th month following the close of the taxable year"],"checked":"2026-11-02"},{"rule":"estimated_2210","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["The penalty is figured separately for each installment due date","substitute 110% for 100% in (2) above","Line 8 (additional tax on distributions only)"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_6654_underpayment","stage":"payments","title":"Form 2210: the underpayment by installment","summary":"Form 2210 line 17: a quarter of the required annual payment is due on each of April 15, June 15 and September 15, 2026 and January 15, 2027; withholding counts as paid in four equal parts on those dates (§6654(g)(1); the Part II box D election to use the actual withholding dates is not modelled); payments go to the oldest unpaid installment and an overpayment carries forward.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_6654_underpayment","lines":["2210.17"],"sources":[{"rule":"estimated_2210","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an equal part of such amount shall be deemed paid on each due date","the 15th day of the 4th month following the close of the taxable year"],"checked":"2026-11-02"},{"rule":"estimated_2210","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["The penalty is figured separately for each installment due date","substitute 110% for 100% in (2) above","Line 8 (additional tax on distributions only)"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_6654_penalty","stage":"payments","title":"Form 2210: the penalty","summary":"Form 2210 line 19: simple interest on each installment's underpayment at the §6621 rate of each quarter, days x rate / 365, from the due date to the earlier of the payment date and April 15, 2027 (the regular installments, or Schedule AI's when the request splits its income by period and that lowers the penalty). The first quarter of 2027 carries the last announced rate forward and the response flags it.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_6654_penalty","lines":["2210.19"],"sources":[{"rule":"estimated_2210","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an equal part of such amount shall be deemed paid on each due date","the 15th day of the 4th month following the close of the taxable year"],"checked":"2026-11-02"},{"rule":"estimated_2210","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["The penalty is figured separately for each installment due date","substitute 110% for 100% in (2) above","Line 8 (additional tax on distributions only)"],"checked":"2026-11-02"},{"rule":"int_rates","url":"https://www.irs.gov/payments/quarterly-interest-rates","title":"Quarterly interest rates","publisher":"Internal Revenue Service","kind":"agency_page","official":true,"quotes":["Underpayment (corporate and non-corporate) 7% 7% 6% 7%","4th quarter rates - Internal Revenue Bulletin: 2026-36"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f1040sa.pdf","title":"Schedule A (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-","Add lines 5a through 5c","Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)","Add lines 8e and 9","Add lines 11 through 13","Add the amounts in the far right column for lines 4 through 16"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f8606.pdf","title":"Form 8606 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["This is the nontaxable portion of the amount you converted to Roth IRAs","Add lines 11 and 12. This is the nontaxable portion of all your distributions","c Taxable amount. Subtract line 25b from line 25a","Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Early distributions included on line 1 that are not subject to the additional tax","55 Add lines 54a and 54b. Include the total on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"form_lines_schedules","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Required annual payment. Enter the smaller of line 5 or line 8","19 Penalty. Enter the total penalty from line 14 of the Worksheet for Form 2210, Part III, Section B-Figure the Penalty","Required installments. If box C in Part II applies"],"checked":"2026-11-02"}]},{"id":"irc_6654d2_annualized_installment","stage":"payments","title":"Form 2210 Schedule AI: the annualized income installment method","summary":"With an item's amounts by installment period (Jan-Mar, Apr-May, Jun-Aug, Sep-Dec), each period's return is figured on its income through the period's end times 4, 2.4, 1.5 and 1 (an item not split accrues evenly; the standard deduction is the year's, not annualized; itemized deductions, the AMT, the NIIT, the Additional Medicare Tax and the credits on the annualized amounts), the self-employment tax by Part II (the period's net earnings, 0 under $400, against the prorated social security limit, at 12.4% and 2.9% times the factor), times 22.5%, 45%, 67.5% and 90%; each required installment is the smaller of that less the earlier installments and the regular installment plus what earlier installments saved. The penalty is figured both ways and the lower one is charged (Schedule AI is used for every installment or none). Withholding by period is credited as withheld (box D).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_6654d2_annualized_installment","lines":["2210ai.27"],"sources":[{"rule":"sched_ai_periods_factors","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["1/1/25–3/31/25 1/1/25–5/31/25 1/1/25–8/31/25 1/1/25–12/31/25","2 Annualization amounts. (Estates and trusts, see instructions.) 2 4 2.4 1.5 1 3 Annualized income. Multiply line 1 by line 2"],"checked":"2026-11-02"},{"rule":"sched_ai_periods_factors","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Period (a) includes items for January 1 through March 31. • Period (b) includes items for January 1 through May 31. • Period (c) includes items for January 1 through August 31. • Period (d) includes items for the entire year.","For each period (column), figure your total income minus your adjustments to income. Include your share of partnership or S corporation income or loss items for the period. If you’re self-employed, be sure to take into account the deductible part of your self-employment tax.","Instead, use 6, 3, 1.71429, and 1.09091, respectively, as the annualization amounts."],"checked":"2026-11-02"},{"rule":"sched_ai_periods_factors","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["computed by placing on an annualized basis the taxable income, alternative minimum taxable income, and adjusted self-employment income for months in the taxable year ending before the due date for the installment"],"checked":"2026-11-02"},{"rule":"sched_ai_deductions","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["If you itemize, enter itemized deductions for the period shown in each column. All others, enter -0-, and skip to line 7.","5 Annualization amounts . . . . . . . . . . 5 4 2.4 1.5 1 6 Multiply line 4 by line 5","In each column, enter the amount of your standard deduction from Form 1040 or 1040-SR.","Enter the larger of line 6 or line 7","Deduction for qualified business income.","Form 1040, 1040-SR, or 1040-NR filers, enter -0- in each column."],"checked":"2026-11-02"},{"rule":"sched_ai_deductions","url":"https://www.irs.gov/pub/irs-dft/f2210--dft.pdf","title":"Form 2210 (2026) early-release DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["9b Additional deductions (see instructions)","10 Add lines 8, 9a, and 9b"],"checked":"2026-11-02"},{"rule":"sched_ai_tax_other_taxes","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["14 Figure your tax on the amount on line 13. See instructions","Enter other taxes for each payment period including, if applicable, Additional Medicare Tax and/or Net Investment Income Tax. See instructions","20 Applicable percentage . . . . . . . . . . 20 22.5% 45% 67.5% 90% 21 Multiply line 19 by line 20"],"checked":"2026-11-02"},{"rule":"sched_ai_tax_other_taxes","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enter all of the other taxes you owed because of events that occurred during the months shown in the column headings.","plus the tax from Form 4972, Tax on Lump-Sum Distributions; Form 8814, Parents’ Election To Report Child’s Interest and Dividends; and any alternative minimum tax (AMT).","Figure alternative minimum taxable income based on your income and deductions during the periods shown in the column headings. Multiply this amount by the annualization amounts shown for each column on Schedule AI, line 2, before subtracting the AMT exemption.","When figuring your credits, annualize any item of income or deduction used to figure each credit.","Any Additional Medicare Tax on self-employment income will be computed in Part I."],"checked":"2026-11-02"},{"rule":"sched_ai_tax_other_taxes","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["1st 22.5 2nd 45 3rd 67.5 4th 90."],"checked":"2026-11-02"},{"rule":"sched_ai_se_tax","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["29 Prorated social security tax limit . . . . . . . 29 $44,025 $73,375 $117,400 $176,100","32 Annualization amounts . . . . . . . . . . 32 0.496 0.2976 0.186 0.124 33 Multiply line 32 by the smaller of line 28 or line 31","34 Annualization amounts . . . . . . . . . . 34 0.116 0.0696 0.0435 0.029 35 Multiply line 28 by line 34","Enter actual wages for the period subject to social security tax"],"checked":"2026-11-02"},{"rule":"sched_ai_se_tax","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Generally, to figure your net earnings from self-employment on line 28, multiply your net profit from all trades or businesses for each period by 92.35% (0.9235). If your self-employment income for the applicable periods is less than $400, enter zero in Part II, line 28."],"checked":"2026-11-02"},{"rule":"sched_ai_se_tax","url":"https://www.irs.gov/pub/irs-dft/f2210--dft.pdf","title":"Form 2210 (2026) early-release DRAFT","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["$46,125 $76,875 $123,000 $184,500 0.496 0.2976 0.186 0.124 0.116 0.0696 0.0435 0.029"],"checked":"2026-11-02"},{"rule":"sched_ai_installment_lines_22_27","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["22 Enter the total of the amounts in all previous columns of line 27 22 23 Subtract line 22 from line 21. If zero or less, enter -0- 23 24 Enter 25% (0.25) of line 9 on page 1 of Form 2210 in each column 24 25 Subtract line 27 of the previous column from line 26 of that column 25 26 Add lines 24 and 25 . . . . . . . . . . . 26 27 Enter the smaller of line 23 or line 26 here and on Form 2210, Part III, line 10","Required installments. If box C in Part II applies, enter the amounts from Schedule AI, line 27. Otherwise, enter 25% (0.25) of line 9, Form 2210, in each column."],"checked":"2026-11-02"},{"rule":"sched_ai_installment_lines_22_27","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["To figure the amount of each required installment, Schedule AI selects the smaller of the annualized income installment or the regular installment (that has been increased by the amount saved by using the annualized income installment method in figuring any earlier installments)."],"checked":"2026-11-02"},{"rule":"sched_ai_installment_lines_22_27","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["if the individual establishes that the annualized income installment is less than the amount determined under paragraph (1)— (i) the amount of such required installment shall be the annualized income installment, and (ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) by the amount of such reduction (and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this clause).","the annualized income installment is the excess (if any) of— (i) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis"],"checked":"2026-11-02"},{"rule":"sched_ai_filing_box_c","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["C Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized income installment method. You must figure the penalty using Schedule Al and file Form 2210."],"checked":"2026-11-02"},{"rule":"sched_ai_filing_box_c","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you use Schedule AI for any payment due date, you must use it for all payment due dates.","Check box C in Part II.","Attach Form 2210, Parts I, II, III, and Schedule AI to your return.","If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period."],"checked":"2026-11-02"},{"rule":"form2210_withholding_timing","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["you are considered to have paid one-fourth of these amounts on each payment due date unless you can show otherwise.","If you treat withholding as paid on the dates it was actually withheld for estimated tax purposes, you must check box D"],"checked":"2026-11-02"},{"rule":"form2210_withholding_timing","url":"https://www.irs.gov/pub/irs-pdf/f2210.pdf","title":"Form 2210 (2025), Underpayment of Estimated Tax by Individuals, Estates, and Trusts","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["D Your penalty is lower when figured by treating the federal income tax withheld from your income as paid on the dates it was actually withheld, instead of in equal amounts on the payment due dates."],"checked":"2026-11-02"},{"rule":"form2210_withholding_timing","url":"https://www.law.cornell.edu/uscode/text/26/6654","title":"26 U.S. Code § 6654","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["an equal part of such amount shall be deemed paid on each due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.","(A) wage withholding, and (B) all other amounts withheld for which credit is allowed under section 31."],"checked":"2026-11-02"}]},{"id":"irc_61a4_taxable_interest","stage":"income","title":"Taxable interest (line 2b)","summary":"Interest from Schedule B is ordinary income: it is in AGI, so it raises Social Security provisional income, the IRMAA MAGI and the senior-deduction phase-out, and it is net investment income for the NIIT. API taxableInterest.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61a4_taxable_interest","lines":["1040.2b"],"sources":[{"rule":"niit_nii","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","the modified adjusted gross income for such taxable year","net investment income for such taxable year"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Form 1040 or 1040-SR, line 7a"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_61a7_ordinary_dividends","stage":"income","title":"Ordinary dividends (line 3b)","summary":"All ordinary dividends, the qualified ones of line 3a included. The part that is not qualified is taxed as ordinary income; all of it is in AGI and is net investment income. API ordinaryDividends.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_61a7_ordinary_dividends","lines":["1040.3b"],"sources":[{"rule":"niit_nii","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","the modified adjusted gross income for such taxable year","net investment income for such taxable year"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Form 1040 or 1040-SR, line 7a"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_1h11_qualified_dividends","stage":"tax","title":"Qualified dividends (line 3a)","summary":"The qualified part of the ordinary dividends is taxed at the capital-gains rates: it joins the long-term gain in the Qualified Dividends and Capital Gain Tax Worksheet (line 2), after any deduction left over from ordinary income. The holding-period test (the 121-day period) is taken as met. API qualifiedDividends (part of ordinaryDividends).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1h11_qualified_dividends","lines":["1040.3a"],"sources":[{"rule":"qualified_dividends","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S. Code § 1","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["means net capital gain (determined without regard to this paragraph) increased by qualified dividend income","substituting \"121-day period\" for \"91-day period\""],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/publications/p505","title":"Publication 505 (2026), Tax Withholding and Estimated Tax","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Enter your qualified dividends expected for 2026","Enter your net capital gain expected for 2026"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/pub/irs-pdf/i1040gi.pdf","title":"Form 1040 and 1040-SR Instructions 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enter the smaller of line 15 or line 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-","Tax on all taxable income. Enter the smaller of line 23 or line 24"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/pub/irs-pdf/f1099div.pdf","title":"Form 1099-DIV","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["1a Total ordinary dividends","1b Qualified dividends"],"checked":"2026-11-02"},{"rule":"qualified_dividends","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_1212b_st_carryover_in","stage":"gains","title":"Short-term capital loss carryover in (Schedule D line 6)","summary":"Last year's short-term carryover enters as a short-term loss. API capitalLossCarryoverShortTerm. The capital-loss rules apply on every return (engine 1.3.0); a carryover does not switch anything on.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1212b_st_carryover_in","lines":["1040sd.6"],"sources":[{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7a, the smaller of: • The loss on line 16; or • ($3,000), or if married filing separately, ($1,500)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.law.cornell.edu/uscode/text/26/1212","title":"26 U.S. Code § 1212","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year","the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year","the term \"adjusted taxable income\" means taxable income increased by the sum of"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses","Enter the smaller of line 2 or line 3","Short-term capital loss carryover for 2025. Subtract line 7 from line 5","Long-term capital loss carryover for 2025. Subtract line 12 from line 9"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Use short-term losses first"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["can be deducted only on the final income tax return filed for the decedent","The decedent's estate cannot deduct any of the loss or carry it over to following years","can be deducted only on the return of the spouse who actually had the loss"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_1212b_lt_carryover_in","stage":"gains","title":"Long-term capital loss carryover in (Schedule D line 14)","summary":"Last year's long-term carryover enters as a long-term loss. API capitalLossCarryoverLongTerm. The capital-loss rules apply on every return (engine 1.3.0); a carryover does not switch anything on.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1212b_lt_carryover_in","lines":["1040sd.14"],"sources":[{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7a, the smaller of: • The loss on line 16; or • ($3,000), or if married filing separately, ($1,500)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.law.cornell.edu/uscode/text/26/1212","title":"26 U.S. Code § 1212","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year","the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year","the term \"adjusted taxable income\" means taxable income increased by the sum of"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses","Enter the smaller of line 2 or line 3","Short-term capital loss carryover for 2025. Subtract line 7 from line 5","Long-term capital loss carryover for 2025. Subtract line 12 from line 9"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Use short-term losses first"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["can be deducted only on the final income tax return filed for the decedent","The decedent's estate cannot deduct any of the loss or carry it over to following years","can be deducted only on the return of the spouse who actually had the loss"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_1211b_loss_allowed","stage":"gains","title":"Capital loss allowed (Schedule D line 21)","summary":"A net loss on line 16 is deductible up to $3,000 ($1,500 married filing separately), a statutory amount that is not indexed. It reduces AGI, so it also lowers provisional income for Social Security, the IRMAA MAGI, the senior-deduction phase-out and the NIIT base. On every return since engine 1.3.0 (the Monte Carlo planner, /api/simulate, the withdrawal optimizer, POST /api/federal-tax and computeFederal); capitalLossRules: false is an explicit opt-out to the pre-1.3.0 floor.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1211b_loss_allowed","lines":["1040sd.21"],"sources":[{"rule":"cap_loss","url":"https://www.law.cornell.edu/uscode/text/26/1211","title":"26 U.S. Code § 1211","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the lower of- (1) $3,000 ($1,500 in the case of a married individual filing a separate return)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7a, the smaller of: • The loss on line 16; or • ($3,000), or if married filing separately, ($1,500)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.law.cornell.edu/uscode/text/26/1212","title":"26 U.S. Code § 1212","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year","the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year","the term \"adjusted taxable income\" means taxable income increased by the sum of"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses","Enter the smaller of line 2 or line 3","Short-term capital loss carryover for 2025. Subtract line 7 from line 5","Long-term capital loss carryover for 2025. Subtract line 12 from line 9"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Use short-term losses first"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["can be deducted only on the final income tax return filed for the decedent","The decedent's estate cannot deduct any of the loss or carry it over to following years","can be deducted only on the return of the spouse who actually had the loss"],"checked":"2026-11-02"}]},{"id":"irc_1212b_st_carryover_out","stage":"gains","title":"Short-term capital loss carryover to next year","summary":"The Capital Loss Carryover Worksheet, lines 1-8: the short-term loss not used this year. The allowed loss counts as used only up to taxable income plus the allowed loss (§1212(b)(2)), and it uses the short-term loss first. The carryover out is reported by the extended return (schedules.scheduleD); the Monte Carlo planner carries it per simulated path. In the year a spouse dies the planner carries forward only the survivor's share (IRS Pub 550: a decedent's loss is deductible only on the final return and the estate cannot carry it over; engine 1.4.0, API spouseCapitalLossShare on /api/simulate, default 0.5). A single return here reports the joint carryover; the caller enters the survivor's share next year.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1212b_st_carryover_out","lines":["1040sdcw.8"],"sources":[{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7a, the smaller of: • The loss on line 16; or • ($3,000), or if married filing separately, ($1,500)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.law.cornell.edu/uscode/text/26/1212","title":"26 U.S. Code § 1212","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year","the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year","the term \"adjusted taxable income\" means taxable income increased by the sum of"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses","Enter the smaller of line 2 or line 3","Short-term capital loss carryover for 2025. Subtract line 7 from line 5","Long-term capital loss carryover for 2025. Subtract line 12 from line 9"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Use short-term losses first"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["can be deducted only on the final income tax return filed for the decedent","The decedent's estate cannot deduct any of the loss or carry it over to following years","can be deducted only on the return of the spouse who actually had the loss"],"checked":"2026-11-02"}]},{"id":"irc_1212b_lt_carryover_out","stage":"gains","title":"Long-term capital loss carryover to next year","summary":"The Capital Loss Carryover Worksheet, lines 9-13: the long-term loss not used this year, after this year's short-term gain and the part of the allowed loss the short-term loss did not use. The carryover out is reported by the extended return (schedules.scheduleD); the Monte Carlo planner carries it per simulated path. In the year a spouse dies the planner carries forward only the survivor's share (IRS Pub 550: a decedent's loss is deductible only on the final return and the estate cannot carry it over; engine 1.4.0, API spouseCapitalLossShare on /api/simulate, default 0.5). A single return here reports the joint carryover; the caller enters the survivor's share next year.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1212b_lt_carryover_out","lines":["1040sdcw.13"],"sources":[{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7a, the smaller of: • The loss on line 16; or • ($3,000), or if married filing separately, ($1,500)"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.law.cornell.edu/uscode/text/26/1212","title":"26 U.S. Code § 1212","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year","the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year","the term \"adjusted taxable income\" means taxable income increased by the sum of"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/pub/irs-pdf/i1040sd.pdf","title":"Instructions for Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses","Enter the smaller of line 2 or line 3","Short-term capital loss carryover for 2025. Subtract line 7 from line 5","Long-term capital loss carryover for 2025. Subtract line 12 from line 9"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Use short-term losses first"],"checked":"2026-11-02"},{"rule":"cap_loss_carryover","url":"https://www.irs.gov/publications/p550","title":"Publication 550, Investment Income and Expenses","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["can be deducted only on the final income tax return filed for the decedent","The decedent's estate cannot deduct any of the loss or carry it over to following years","can be deducted only on the return of the spouse who actually had the loss"],"checked":"2026-11-02"}]},{"id":"irc_1411c_nii_charged","stage":"other_taxes","title":"Total investment income (Form 8960 line 8)","summary":"Form 8960 line 8, on every return (engine 1.3.0): interest + all dividends + nonqualified annuities (line 3, engine 1.5.0) + the line 7a gain or allowed loss, never below zero. The NIIT is charged on line 12: line 8 less the Part II deductions (the steps below).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c_nii_charged","lines":["8960.8"],"sources":[{"rule":"niit_nii","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","the modified adjusted gross income for such taxable year","net investment income for such taxable year"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Form 1040 or 1040-SR, line 7a"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040.pdf","title":"Form 1040 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Taxable interest","Qualified dividends","Ordinary dividends"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f1040sd.pdf","title":"Schedule D (Form 1040) 2025","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet","Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet"],"checked":"2026-11-02"},{"rule":"form_lines_r1r2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Total investment income"],"checked":"2026-11-02"}]},{"id":"irc_1411c1_annuities","stage":"other_taxes","title":"Net investment income: nonqualified annuities (Form 8960 line 3)","summary":"nonqualifiedAnnuity (engine 1.5.0) is the taxable part of payments under a nonqualified (commercial) annuity contract: ordinary income on Form 1040 line 5b, next to the pension, and net investment income on Form 8960 line 3 (§1411(c)(1)(A)(i)). An annuity from a §401(a), 403(a), 403(b), 408, 408A or 457(b) plan (the pension input) is not net investment income (§1411(c)(5)). The §72(q) additional tax on annuity payments before 59½ is not modelled, so the API refuses nonqualifiedAnnuity unless the filer is 59½ or older for the whole year or disabled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1_annuities","lines":["8960.3"],"sources":[{"rule":"niit_annuities","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Enter the gross income from all annuities, except annuities paid from the following"],"checked":"2026-11-02"},{"rule":"niit_annuities","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","shall not include any distribution from a plan or arrangement described in section 401(a), 403(a), 403(b), 408, 408A, or 457(b)"],"checked":"2026-11-02"},{"rule":"niit_annuities","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Annuities (see instructions)"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["If any taxpayer receives any amount under an annuity contract","made on or after the death of the holder","attributable to the taxpayer’s becoming disabled within the meaning of subsection (m)(7)","allocable to investment in the contract before August 14, 1982","under a qualified funding asset (within the meaning of section 130(d)","under an immediate annuity contract (within the meaning of section 72(u)(4))","which is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a)","plus interest for the deferral period"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-pdf/p575.pdf","title":"Publication 575, Pension and Annuity Income (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you must pay either of these taxes, report them on","From an immediate annuity contract (a single premium","5% rate on certain early distributions from deferred"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Distributions from annuity contracts to the extent that the"],"checked":"2026-11-02"}]},{"id":"irc_1411c1_rents","stage":"other_taxes","title":"Net investment income: rents (Form 8960 line 4a)","summary":"The rental income or allowed loss of Schedule E line 26 is net investment income (section 1411(c)(1)(A)(i), \"rents\"; Form 8960 line 4a): a loss reduces line 8. A real estate professional's rental income stays in it (the section 1.1411-4(g)(7) safe harbor is not modelled). With a K-1 amount (federal engine 2.3) line 4a is all of Schedule E line 41 and line 4b takes out the nonpassive K-1 amount (step irc_1411c1_k1).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1_rents","lines":["8960.4a"],"sources":[{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/f1040se.pdf","title":"Schedule E (Form 1040) 2025, Supplemental Income and Loss","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Subtract line 20 from line 3 (rents) and/or 4 (royalties).","Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions)","Income. Add positive amounts shown on line 21. Do not include any losses","Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here","Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, and IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040), line 5. Otherwise, include this amount in the total on line 41 on page 2","Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040), line 5"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/i1040se.pdf","title":"Instructions for Schedule E (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["You may need to complete Form 8582 to figure the amount of loss, if any, to enter on line 22.","If you have an unallowed rental real estate loss from a prior year that after completing Form 8582 you can include this year, include that loss on line 22."],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025), Net Investment Income Tax","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Rental real estate, royalties, partnerships, S corporations, trusts, trades or businesses, etc. (see instructions)"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Line 4a of Form 8960 includes total income reported on Schedules C, E, and F (Form 1040) that is potentially subject to NIIT.","Schedule 1 (Form 1040), line 5.","Conversely, a total loss comprised of both passive and nonpassive income is entered as a negative on line 4a."],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents"],"checked":"2026-11-02"},{"rule":"sched_e_rental","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code § 1402","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["there shall be excluded rentals from real estate and from personal property leased with the real estate"],"checked":"2026-11-02"}]},{"id":"irc_1411c1b_investment_interest","stage":"other_taxes","title":"Form 8960 line 9a: investment interest","summary":"Engine 1.5.0: on a return that itemizes, the investment interest deducted on Schedule A (investmentInterest) reduces net investment income (§1411(c)(1)(B); Treas. Reg. §1.1411-4(f)(3)(i)). From 2026, when §68 reduces the itemized deductions, the deductions allowed against net investment income (lines 9a and 9b together) are the lesser of their own total and the itemized deductions allowed after §68 (Treas. Reg. §1.1411-4(f)(7)(ii)); when that cap binds, both lines are scaled down together. A return on the standard deduction deducts nothing here.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1b_investment_interest","lines":["8960.9a"],"sources":[{"rule":"niit_part2","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the deductions allowed by this subtitle which are properly allocable to such gross income"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["interest expense you paid or accrued during the tax year deducted on Schedule A","Include state, local, and foreign income taxes you paid for the tax year that are attributable to NII","you may use any reasonable method to determine that portion of the deduction","an allocation of the deduction based on the ratio of the amount of a taxpayer's gross investment income (Form 8960, line 8) to the amount of the taxpayer's AGI","Sales taxes aren't deductible in computing NII","if properly deducted on your return","Total tax deductions may be limited under section 164(b)(6)"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Investment interest expenses","State, local, and foreign income tax","Subtract Part II, line 11, from Part I, line 8"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR4d4f1d482c2f558/section-1.1411-4","title":"26 CFR 1.1411-4: Definition of net investment income","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Investment interest (as defined in section 163(d)(3)) to the extent allowed under section 163(d)(1)","may be determined by taxpayers using any reasonable method","are allowed in determining net investment income only to the extent the items are deductible","The amount of itemized deductions allowed in determining net investment income after applying sections 67 and 68 is the lesser of","The total amount of itemized deductions allowed after the application of sections 67 and 68"],"checked":"2026-11-02"}]},{"id":"irc_1411c1b_state_income_tax","stage":"other_taxes","title":"Form 8960 line 9b: state income tax allocable to net investment income","summary":"Engine 1.5.0: on a return that itemizes, the state and local income tax actually deducted (the income-tax share of Schedule A line 5e after the SALT cap: saltIncomeOrSalesTax as a share of lines 5a to 5c) times Form 8960 line 8 over AGI, at most all of it; that ratio is the method the Form 8960 instructions name as reasonable (Reg. §1.1411-4(g)(1) allows any reasonable method). The §68 share applies as on line 9a. A general sales tax (saltSalesTaxElected) is not deductible in computing NII, and nothing is deducted on the standard deduction. Foreign income tax (Schedule A line 6) and property taxes attributable to NII are not allocated.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1b_state_income_tax","lines":["8960.9b"],"sources":[{"rule":"niit_part2","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the deductions allowed by this subtitle which are properly allocable to such gross income"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["interest expense you paid or accrued during the tax year deducted on Schedule A","Include state, local, and foreign income taxes you paid for the tax year that are attributable to NII","you may use any reasonable method to determine that portion of the deduction","an allocation of the deduction based on the ratio of the amount of a taxpayer's gross investment income (Form 8960, line 8) to the amount of the taxpayer's AGI","Sales taxes aren't deductible in computing NII","if properly deducted on your return","Total tax deductions may be limited under section 164(b)(6)"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Investment interest expenses","State, local, and foreign income tax","Subtract Part II, line 11, from Part I, line 8"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR4d4f1d482c2f558/section-1.1411-4","title":"26 CFR 1.1411-4: Definition of net investment income","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Investment interest (as defined in section 163(d)(3)) to the extent allowed under section 163(d)(1)","may be determined by taxpayers using any reasonable method","are allowed in determining net investment income only to the extent the items are deductible","The amount of itemized deductions allowed in determining net investment income after applying sections 67 and 68 is the lesser of","The total amount of itemized deductions allowed after the application of sections 67 and 68"],"checked":"2026-11-02"}]},{"id":"irc_1411c1b_net_investment_income","stage":"other_taxes","title":"Form 8960 line 12: net investment income","summary":"Line 8 less the Part II deductions (lines 9a and 9b, line 11), never below zero: the base the 3.8% applies to (§1411(c)(1)(B)). Engine 1.5.0; before it no deduction reduced the base.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1b_net_investment_income","lines":["8960.12"],"sources":[{"rule":"niit_part2","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the deductions allowed by this subtitle which are properly allocable to such gross income"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["interest expense you paid or accrued during the tax year deducted on Schedule A","Include state, local, and foreign income taxes you paid for the tax year that are attributable to NII","you may use any reasonable method to determine that portion of the deduction","an allocation of the deduction based on the ratio of the amount of a taxpayer's gross investment income (Form 8960, line 8) to the amount of the taxpayer's AGI","Sales taxes aren't deductible in computing NII","if properly deducted on your return","Total tax deductions may be limited under section 164(b)(6)"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.irs.gov/pub/irs-pdf/f8960.pdf","title":"Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Investment interest expenses","State, local, and foreign income tax","Subtract Part II, line 11, from Part I, line 8"],"checked":"2026-11-02"},{"rule":"niit_part2","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR4d4f1d482c2f558/section-1.1411-4","title":"26 CFR 1.1411-4: Definition of net investment income","publisher":"eCFR (Office of the Federal Register)","kind":"regulation","official":true,"quotes":["Investment interest (as defined in section 163(d)(3)) to the extent allowed under section 163(d)(1)","may be determined by taxpayers using any reasonable method","are allowed in determining net investment income only to the extent the items are deductible","The amount of itemized deductions allowed in determining net investment income after applying sections 67 and 68 is the lesser of","The total amount of itemized deductions allowed after the application of sections 67 and 68"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["gross income from interest, dividends, annuities, royalties, and rents","the modified adjusted gross income for such taxable year","net investment income for such taxable year"],"checked":"2026-11-02"},{"rule":"niit_nii","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Form 1040 or 1040-SR, line 7a"],"checked":"2026-11-02"}]},{"id":"fed_index_amount","stage":"projection","title":"One amount in a later year","summary":"Each federal dollar amount has one rule in research/data/federal-tax-indexing.json. Fixed in law (the NIIT and Social Security thresholds, the capital-loss limit): the 2026 amount in every year. Indexed (the brackets, the standard deduction and its age-65 and blind amounts, the capital-gain breakpoints, the QCD limits, the IRMAA floors): the statute's base-year amount times the index level of the year over the level of the base year, the increase (or the amount, where the statute says so) rounded the statute's way; the level of a later year is the 2026 level times the factor. The C-CPI-U level for 2026 is recovered from the Rev. Proc. 2025-32 amounts (every one of them is reproduced exactly), because the statute reads values that BLS has since revised. Scheduled: the amount the statute enacts for the year (the senior deduction ends after 2028). Derived: an amount the statute defines from another (a joint amount twice the individual one). Not established: held, and the API refuses a law-mode result that depends on it.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#fed_index_amount","lines":[],"sources":[{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S.C. 1","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["the c-cpi-u for any calendar year is the average of the c-cpi-u as of the close of the 12-month period ending on august 31 of such calendar year","if any increase determined under paragraph (2)(a), section 63(c)(4), section 68(b)(2) [1] or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","shall be applied by substituting \"$25\" for \"$50\" each place it appears","solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins"],"checked":"2026-11-02"},{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S.C. 63","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["determined by substituting \"2024\" for \"2016\" in subparagraph (a)(ii) thereof. if any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","\"calendar year 1987\" in the case of the dollar amounts contained in paragraph (2)(b), (2)(c), or (5)(a) or subsection (f)"],"checked":"2026-11-02"}]},{"id":"fed_project_config","stage":"projection","title":"The year's brackets and deductions","summary":"federal_tax_project_config moves the ordinary and capital-gain bracket edges and the standard deduction of the filing status by their rules; the rates and the NIIT threshold stay. federal_tax_config_for_year_mode adds the age-65 amount per 65+ filer and spouse at the year's amount and the senior deduction on its schedule, the one builder the planner's later years, the ACA bridge, POST /api/federal-tax and computeFederal + projection use. At factor 1 every later year is the 2026 configuration byte for byte. Indexing \"inflation\" is the pre-2.0 planner's scaling, exactly: each edge, the standard deduction and the age-65 amount times the factor, unrounded.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#fed_project_config","lines":[],"sources":[{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S.C. 1","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["the c-cpi-u for any calendar year is the average of the c-cpi-u as of the close of the 12-month period ending on august 31 of such calendar year","if any increase determined under paragraph (2)(a), section 63(c)(4), section 68(b)(2) [1] or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","shall be applied by substituting \"$25\" for \"$50\" each place it appears","solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins"],"checked":"2026-11-02"},{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S.C. 63","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["determined by substituting \"2024\" for \"2016\" in subparagraph (a)(ii) thereof. if any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","\"calendar year 1987\" in the case of the dollar amounts contained in paragraph (2)(b), (2)(c), or (5)(a) or subsection (f)"],"checked":"2026-11-02"},{"rule":"std_ded","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A)) $32,200 Heads of Households (§ 1(j)(2)(B)) $24,150","(§ 1(j)(2)(C)) $16,100 Married Individuals Filing Separate Returns (§ 1(j)(2)(D)) $16,100"],"checked":"2026-11-02"},{"rule":"aged_63f","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["the additional standard deduction amount under § 63(f) for the aged or the blind is $1,650. The additional standard deduction amount is increased to $2,050 if the individual is also unmarried and not a surviving spouse"],"checked":"2026-11-02"},{"rule":"senior","url":"https://www.law.cornell.edu/uscode/text/26/151","title":"26 U.S. Code § 151","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual","reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return)","this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return"],"checked":"2026-11-02"}]},{"id":"fed_project_irmaa","stage":"projection","title":"The IRMAA income floors in a later year","summary":"The planner's IRMAA floors: the individual amounts from the 12 months ending August 2018 by the CPI-U, each rounded to the nearest multiple of $1,000; the top tier held through 2027, then indexed from August 2026; joint returns twice the individual amounts and 150 percent of the top tier; a separate filer who lived with the spouse the individual amounts less the individual threshold. The Part B and D amounts move by the plan's medical inflation in both modes.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#fed_project_irmaa","lines":[],"sources":[{"rule":"irmaa_indexing","url":"https://www.law.cornell.edu/uscode/text/42/1395r","title":"42 U.S.C. 1395r","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["if any dollar amount after being increased under subparagraph (a) or (c) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000","(or, in the case of a calendar year beginning with 2020, august 2018)","subparagraph (a) shall not apply with respect to each dollar amount in paragraph (3) of $500,000","in the case of any calendar year beginning after 2027, each dollar amount in paragraph (3) of $500,000 shall be increased"],"checked":"2026-11-02"},{"rule":"irmaa_b","url":"https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles","title":"2026 Medicare Parts A & B Premiums and Deductibles","publisher":"Centers for Medicare & Medicaid Services","kind":"agency_page","official":true,"quotes":["Less than or equal to $109,000 Less than or equal to $218,000 $0.00 $202.90","Greater than $109,000 and less than or equal to $137,000 Greater than $218,000 and less than or equal to $274,000 $81.20 $284.10","Greater than $137,000 and less than or equal to $171,000 Greater than $274,000 and less than or equal to $342,000 $202.90 $405.80","Greater than $171,000 and less than or equal to $205,000 Greater than $342,000 and less than or equal to $410,000 $324.60 $527.50","Greater than $205,000 and less than $500,000 Greater than $410,000 and less than $750,000 $446.30 $649.20","Greater than or equal to $500,000 Greater than or equal to $750,000 $487.00 $689.90"],"checked":"2026-11-02"}]},{"id":"fed_project_qcd","stage":"projection","title":"The QCD limits in a later year","summary":"The section 408(d)(8)(A) limit per IRA owner and the one-time split-interest limit, indexed from 2022 and rounded to the nearest multiple of $1,000; indexing \"inflation\" scales the 2026 amounts, rounded the same way.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#fed_project_qcd","lines":[],"sources":[{"rule":"qcd","url":"https://www.irs.gov/pub/irs-drop/n-25-67.pdf","title":"Notice 2025-67: 2026 retirement plan limitations","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["under section 408(d)(8)(A) is increased from $108,000 to $111,000","pursuant to a one-time election is increased from $54,000 to $55,000"],"checked":"2026-11-02"},{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/1","title":"26 U.S.C. 1","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["the c-cpi-u for any calendar year is the average of the c-cpi-u as of the close of the 12-month period ending on august 31 of such calendar year","if any increase determined under paragraph (2)(a), section 63(c)(4), section 68(b)(2) [1] or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","shall be applied by substituting \"$25\" for \"$50\" each place it appears","solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins"],"checked":"2026-11-02"},{"rule":"cola_indexing","url":"https://www.law.cornell.edu/uscode/text/26/63","title":"26 U.S.C. 63","publisher":"Legal Information Institute (U.S. Code text)","kind":"statute","official":true,"quotes":["determined by substituting \"2024\" for \"2016\" in subparagraph (a)(ii) thereof. if any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50","\"calendar year 1987\" in the case of the dollar amounts contained in paragraph (2)(b), (2)(c), or (5)(a) or subsection (f)"],"checked":"2026-11-02"}]},{"id":"irc_36b_ptc","stage":"credits","title":"The premium tax credit (Form 8962) and the net credit (Schedule 3 line 9)","summary":"With marketplace coverage (marketplacePremiums and marketplaceSlcspPremiums, Form 1095-A columns A and B by month) the return figures Form 8962. Household income (line 3) is the modified AGI (AGI plus tax-exempt interest and the social security not included in income) plus dependentsModifiedAgi, not below zero. Line 5 is household income as a percentage of the 2025 HHS poverty line for the tax family (taxFamilySize, default the filer, the spouse on a joint return and the dependents given; povertyGuidelineState picks the Alaska or Hawaii table), its decimals dropped, 401 above 400%. A taxpayer from 100% to 400% is an applicable taxpayer (below 100% only with ptcEstimatedIncomeException and advance payments, 26 CFR 1.36B-2(b)(6); a married filer filing separately only with ptcMfsException). Line 7 is the applicable figure of that whole percentage from Rev. Proc. 2025-25's 2026 table (2.10% below 133%, 3.14%-4.19%, 4.19%-6.60%, 6.60%-8.44%, 8.44%-9.96%, 9.96% from 300%), linear within a tier and rounded to the nearest 0.01%. Line 8a = line 3 x line 7 and line 8b = line 8a / 12, each rounded to the dollar. With the same enrollment and SLCSP premium in all 12 months the annual line 11 applies; otherwise lines 12-23 month by month with line 8b. Each month's (or the year's) credit is the smaller of the premium and the SLCSP premium less the contribution, not below zero. Line 24 less the advance payments (line 25), when positive, is the net premium tax credit: a payment on Schedule 3 line 9, outside totalTax. The ACA bridge optimizer's subsidy is this same calculation. A return projected to 2027 (projection.year 2027) figures coverage year 2027's Form 8962: line 4 is the 2026 HHS poverty line (91 FR 1797; 15,960 + 5,680 a person in the 48 states and DC) and line 7 the figure from Rev. Proc. 2026-26's table (2.15% below 133%, 3.23%-4.30%, 4.30%-6.78%, 6.78%-8.66%, 8.66%-10.22%, 10.22% from 300%), on the same tiers, rounding and 400% limit; a later projection year is refused.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_36b_ptc","lines":["8962.3","8962.4","8962.5","8962.7","8962.8a","8962.24","8962.25","8962.26","1040s3.9"],"sources":[{"rule":"ptc_8962","url":"https://www.irs.gov/pub/irs-pdf/i8962.pdf","title":"Instructions for Form 8962 (2025), Premium Tax Credit","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["drop any numbers after the decimal point","Multiply line 3 by line 7 and enter the result on line 8a, rounded to the nearest whole dollar amount","Divide line 8a by 12.0 and enter the result on line 8b, rounded to the nearest whole dollar amount","Subtract the amount in column (c) from the amount in column (b). If the result is zero or less, enter -0-","Enter the lesser of the amount in column (a) or the amount in column (d)","You were enrolled in the qualified health plan for all 12 months during 2025","Your SLCSP premium is the same for every month of 2025"],"checked":"2026-11-02"},{"rule":"ptc_8962","url":"https://www.irs.gov/pub/irs-pdf/f8962.pdf","title":"Form 8962 (2025), Premium Tax Credit (PTC)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Excess advance PTC repayment. Enter the smaller of line 27 or line 28 here and on Schedule 2 (Form 1040), line 1a","Net PTC. If line 24 is greater than line 25, subtract line 25 from line 24"],"checked":"2026-11-02"},{"rule":"ptc_8962","url":"https://www.law.cornell.edu/uscode/text/26/36B","title":"26 U.S. Code § 36B","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the premium assistance amount determined under this subsection with respect to any coverage month is the amount equal to the lesser of","an amount equal to 1/12 of the product of the applicable percentage and the taxpayer","the most recently published poverty line as of the 1st day of the regular enrollment period"],"checked":"2026-11-02"},{"rule":"ptc_rounding","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRcb39f040b41b74b/section-1.36B-3","title":"26 CFR 1.36B-3, Computing the premium assistance credit amount","publisher":"eCFR (National Archives)","kind":"regulation","official":true,"quotes":["increases on a sliding scale in a linear manner and is rounded to the nearest one-hundredth of one percent"],"checked":"2026-11-02"},{"rule":"ptc_eligibility","url":"https://www.law.cornell.edu/uscode/text/26/36B","title":"26 U.S. Code § 36B","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["equals or exceeds 100 percent but does not exceed 400 percent of an amount equal to the poverty line","any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax","the taxpayer shall be treated as an applicable taxpayer only if the taxpayer and the taxpayer"],"checked":"2026-11-02"},{"rule":"ptc_eligibility","url":"https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRcb39f040b41b74b/section-1.36B-2","title":"26 CFR 1.36B-2, Eligibility for premium tax credit","publisher":"eCFR (National Archives)","kind":"regulation","official":true,"quotes":["is less than 100 percent of the Federal poverty line for the taxpayer's family size is treated as an applicable taxpayer for the taxable year if","Victims of domestic abuse and abandonment"],"checked":"2026-11-02"},{"rule":"aca_pct","url":"https://www.irs.gov/pub/irs-drop/rp-25-25.pdf","title":"Rev. Proc. 2025-25: 2026 applicable percentage table (§36B) and required contribution percentage","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Less than 133% At least 133% but less than 150% At least 150% but less than 200% At least 200% but less than 250% At least 250% but less than 300% At least 300% but not more than 400%","Initial percentage Final percentage 2.10% 3.14% 4.19% 6.60% 8.44% 9.96% 2.10% 4.19% 6.60% 8.44% 9.96% 9.96%"],"checked":"2026-11-02"},{"rule":"fpl48","url":"https://www.federalregister.gov/documents/2025/01/17/2025-01377/annual-update-of-the-hhs-poverty-guidelines","title":"Annual Update of the HHS Poverty Guidelines (90 FR 5917, 2025-01-17)","publisher":"Department of Health and Human Services (Federal Register)","kind":"federal_register","official":true,"quotes":["Persons in family/household Poverty guideline 1 $15,650 2 21,150 3 26,650 4 32,150 5 37,650 6 43,150 7 48,650 8 54,150 For families/households with more than 8 persons, add $5,500 for each additional person"],"checked":"2026-11-02"},{"rule":"fpl_ak_hi","url":"https://www.federalregister.gov/documents/2025/01/17/2025-01377/annual-update-of-the-hhs-poverty-guidelines","title":"Annual Update of the HHS Poverty Guidelines (90 FR 5917, 2025-01-17)","publisher":"Department of Health and Human Services (Federal Register)","kind":"federal_register","official":true,"quotes":["2025 Poverty Guidelines for Alaska Persons in family/household Poverty guideline 1 $19,550 2 26,430 3 33,310 4 40,190 5 47,070 6 53,950 7 60,830 8 67,710 For families/households with more than 8 persons, add $6,880","2025 Poverty Guidelines for Hawaii Persons in family/household Poverty guideline 1 $17,990 2 24,320 3 30,650 4 36,980 5 43,310 6 49,640 7 55,970 8 62,300 For families/households with more than 8 persons, add $6,330"],"checked":"2026-11-02"},{"rule":"aca_cliff_status","url":"https://www.law.cornell.edu/uscode/text/26/36B","title":"26 U.S. Code § 36B","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Temporary rule for 2021 through 2025 In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026, subparagraph (A) shall be applied without regard to \"but does not exceed 400 percent\""],"checked":"2026-11-02"},{"rule":"ptc2027_rp_26_26","url":"https://www.irs.gov/pub/irs-drop/rp-26-26.pdf","title":"Rev. Proc. 2026-26: 2027 applicable percentage table and required contribution percentage","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["For taxable years beginning in calendar year 2027, the Applicable Percentage Table","Less than 133% 2.15% 2.15%","At least 133% but less than 150% 3.23% 4.3%","At least 150% but less than 200% 4.3% 6.78%","At least 200% but less than 250% 6.78% 8.66%","At least 250% but less than 300% 8.66% 10.22%","At least 300% but not more than 400% 10.22% 10.22%"],"checked":"2026-11-02"},{"rule":"ptc2027_fpl_2026","url":"https://www.govinfo.gov/content/pkg/FR-2026-01-15/pdf/2026-00755.pdf","title":"91 FR 1797: Annual Update of the HHS Poverty Guidelines (2026)","publisher":"U.S. Department of Health and Human Services","kind":"federal_register","official":true,"quotes":["add $5,680 for each additional person","add $7,100 for each additional person","add $6,530 for each additional person"],"checked":"2026-11-02"}]},{"id":"irc_36b_f_excess_aptc","stage":"other_taxes","title":"Excess advance premium tax credit repayment (Form 8962 line 29, Schedule 2 line 1a)","summary":"When the advance payments (marketplaceAdvancePayments, Form 1095-A column C) exceed the credit, the excess is added to the tax in full: from 2026 there is no repayment limitation (section 36B(f)(2)(B) struck by P.L. 119-21 section 71305). Line 29 is Schedule 2 line 1a and so part of line 1z: it is in Form 1040 line 17 and line 18 (the nonrefundable credits can offset it), in Form 6251 line 10 (it lowers the AMT) and in Form 1116 line 20 (the foreign tax credit limit). A taxpayer who is not an applicable taxpayer repays every advance payment. Form 2210 counts the repayment in the year's tax and subtracts the net credit as a refundable credit.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_36b_f_excess_aptc","lines":["8962.29","1040s2.1a"],"sources":[{"rule":"aptc_repay","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["Section 71305 of the OBBBA removes § 36B(f)(2)(B)","effective for taxable years beginning after December 31, 2025"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1040s2.pdf","title":"Schedule 2 (Form 1040) (2025), Additional Taxes","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Excess advance premium tax credit repayment. Attach Form 8962"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-dft/f1040s2--dft.pdf","title":"Schedule 2 (Form 1040) (2026 early-release draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Excess advance premium tax credit repayment. Attach Form 8962"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-dft/f1040s3--dft.pdf","title":"Schedule 3 (Form 1040) (2026 early-release draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Net premium tax credit. Attach Form 8962"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f6251.pdf","title":"Form 6251 (2025), Alternative Minimum Tax—Individuals","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Add Form 1040 or 1040-SR, line 16 (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 1z"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/f1116.pdf","title":"Form 1116 (2025), Foreign Tax Credit","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Enter the total of Form 1040, 1040-SR, or 1040-NR, line 16, and Schedule 2 (Form 1040)"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.irs.gov/pub/irs-pdf/i2210.pdf","title":"Instructions for Form 2210 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Premium tax credit (Form 8962)"],"checked":"2026-11-02"},{"rule":"ptc_1040_lines","url":"https://www.law.cornell.edu/uscode/text/26/36B","title":"26 U.S. Code § 36B","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the tax imposed by this chapter for the taxable year shall be increased by the amount of such excess"],"checked":"2026-11-02"}]},{"id":"irc_469_sched_e_k1","stage":"income","title":"Partnerships, S corporations, estates and trusts (Schedule E Parts II-III) and Form 8582's other passive activities","summary":"Schedule E Parts II and III as net amounts per class, each after the basis and at-risk limits (the caller's): the K-1s' passive income or loss (k1PassiveIncome: trade or business activities without material participation, non-real-estate rentals, a limited partner's rental real estate) and its prior years' unallowed loss, the nonpassive income or loss (k1NonpassiveIncome, with the section 179 deduction), an estate's or trust's net income or loss (estateTrustIncome, passive with estateTrustPassive). The nonpassive amounts enter AGI as they are. The passive classes go on Form 8582 line 2 (all other passive activities) with the rental real estate (line 1): line 3 combines them; the special allowance (Part II, up to $25,000) reaches only the rental real estate with active participation (line 4: the smaller of the loss on line 1d or the loss on line 3); Part VI gives line 9 to the rental loss and Part VII spreads the rest of the line 3 loss over the remaining losses by their shares; an activity with an overall gain is allowed in full. Schedule E line 32 = the K-1 passive result + the nonpassive amount, line 37 the estate or trust, line 41 = 26 + 32 + 37 -> Schedule 1 line 5. A partner's self-employment earnings (partnershipSeEarnings, K-1 box 14 code A) go on Schedule SE line 2 only. A return whose net trade or business losses (Schedule C, Schedule E Parts II-III) exceed the section 461(l) threshold ($256,000; $512,000 joint) is refused: the excess business loss limitation is not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_469_sched_e_k1","lines":["1040se.32","1040se.37","1040se.41"],"sources":[{"rule":"sched_e_k1","url":"https://www.irs.gov/pub/irs-dft/f1040se--dft.pdf","title":"Schedule E (Form 1040) (2026 early-release draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Total partnership and S corporation income or (loss). Combine lines 30 and 31","Add columns (g), (i), and (j) of line 29b","Add columns (h) and (k) of line 29a","Total estate and trust income or (loss). Combine lines 35 and 36","Total income or (loss). Combine lines 26, 32, 37, 39, and 40"],"checked":"2026-11-02"},{"rule":"sched_e_k1","url":"https://www.irs.gov/pub/irs-pdf/i1040se.pdf","title":"Instructions for Schedule E (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["complete Form 8582 to figure the amount of the loss to enter in","If you have passive activity income, complete Part II, column","Your share of the net income of an S corporation is not","trade or business, use Form 461 to figure your excess business"],"checked":"2026-11-02"},{"rule":"sched_e_k1","url":"https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf","title":"Partner's Instructions for Schedule K-1 (Form 1065) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Report box 1 income (loss) from partnership trade or","Generally, the income (loss) reported in box 2 is a passive"],"checked":"2026-11-02"},{"rule":"sched_e_k1","url":"https://www.law.cornell.edu/uscode/text/26/704","title":"26 U.S. Code § 704","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be allowed only to the extent of the adjusted basis of such partner"],"checked":"2026-11-02"},{"rule":"sched_e_k1","url":"https://www.law.cornell.edu/uscode/text/26/465","title":"26 U.S. Code § 465","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Limitation to amount at risk"],"checked":"2026-11-02"},{"rule":"form_8582_k1","url":"https://www.irs.gov/pub/irs-dft/f8582--dft.pdf","title":"Form 8582 (2026 early-release draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["All Other Passive Activities","Activities with net income (enter the amount from Part V, column (a))","Multiply line 7 by 50% (0.50). Do not enter more than $25,000"],"checked":"2026-11-02"},{"rule":"form_8582_k1","url":"https://www.irs.gov/pub/irs-pdf/i8582.pdf","title":"Instructions for Form 8582 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Use Part V for all other passive activities.","Passive trade or business activities,","as actively participating in a partnership's rental real"],"checked":"2026-11-02"},{"rule":"form_8582_k1","url":"https://www.law.cornell.edu/uscode/text/26/469","title":"26 U.S. Code § 469","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["no interest as a limited partner in a limited partnership shall be treated as an interest with respect to which the taxpayer actively participates","shall not exceed $25,000"],"checked":"2026-11-02"},{"rule":"form_8582_k1","url":"https://www.law.cornell.edu/cfr/text/26/1.469-5T","title":"26 CFR 1.469-5T, Material participation","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"regulation","official":true,"quotes":["The individual participates in the activity for more than 500 hours during such year"],"checked":"2026-11-02"},{"rule":"form_8582_k1","url":"https://www.law.cornell.edu/cfr/text/26/1.469-4","title":"26 CFR 1.469-4, Definition of activity","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"regulation","official":true,"quotes":["The rental activity is insubstantial in relation to the trade or business activity"],"checked":"2026-11-02"},{"rule":"se_partners","url":"https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf","title":"Partner's Instructions for Schedule K-1 (Form 1065) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Code A. Net earnings (loss) from self-employment. If"],"checked":"2026-11-02"},{"rule":"se_partners","url":"https://www.law.cornell.edu/uscode/text/26/1402","title":"26 U.S. Code § 1402","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["there shall be excluded the distributive share of any item of income or loss of a limited partner"],"checked":"2026-11-02"},{"rule":"se_partners","url":"https://www.irs.gov/pub/irs-pdf/i1040sse.pdf","title":"Instructions for Schedule SE (Form 1040) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Limited partners should include only guaranteed payments"],"checked":"2026-11-02"},{"rule":"se_partners","url":"https://www.irs.gov/pub/irs-pdf/i1120ssk.pdf","title":"Shareholder's Instructions for Schedule K-1 (Form 1120-S) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["self-employment income and it isn"],"checked":"2026-11-02"},{"rule":"ebl_461","url":"https://www.law.cornell.edu/uscode/text/26/461","title":"26 U.S. Code § 461","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Limitation on excess business losses of noncorporate taxpayers","$250,000 (200 percent of such amount in the case of a joint return)"],"checked":"2026-11-02"},{"rule":"ebl_461","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["$256,000 ($512,000 for joint returns)"],"checked":"2026-11-02"},{"rule":"passive_loss_469","url":"https://www.law.cornell.edu/uscode/text/26/469","title":"26 U.S. Code § 469","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["Except as provided in paragraph (7), the term \"passive activity\" includes any rental activity.","The aggregate amount to which paragraph (1) applies for any taxable year shall not exceed $25,000.","the $25,000 amount under paragraph (2) shall be reduced (but not below zero) by 50 percent of the amount by which the adjusted gross income of the taxpayer for the taxable year exceeds $100,000","(i) any amount includible in gross income under section 86,","(iii) the amounts allowable as a deduction under sections 219, 221, and 250, and (iv) any passive activity loss or any loss allowable by reason of subsection (c)(7)","(i) \"$12,500\" for \"$25,000\" each place it appears, (ii) \"$50,000\" for \"$100,000\" in paragraph (3)(A)","does not live apart from his spouse at all times during such taxable year","such interest (including any interest of the spouse of the individual) is less than 10 percent (by value) of all interests in such activity","paragraph (2) shall not apply to any rental real estate activity of such taxpayer for such taxable year","such taxpayer performs more than 750 hours of services during the taxable year in real property trades or businesses in which the taxpayer materially participates","any unused deduction allocable to such activity under subsection (b) shall be offset against the income from such activity for the taxable year","any such deduction or credit remaining after the application of subparagraphs (A) and (B) shall continue to be treated as arising from a passive activity","any loss or credit from an activity which is disallowed under subsection (a) shall be treated as a deduction or credit allocable to such activity in the next taxable year"],"checked":"2026-11-02"}]},{"id":"irc_1411c1_k1","stage":"other_taxes","title":"Net investment income: the K-1 trade or business amounts (Form 8960 line 4b)","summary":"Form 8960 line 4a takes all of Schedule 1 line 5 (Schedule E line 41); line 4b takes out the nonpassive trade or business income or loss of the K-1s (section 1411(c)(1)(A)(ii), (c)(2)(A)), unless the business is trading in financial instruments or commodities (k1NonpassiveTrading, section 1411(c)(2)(B)). Passive K-1 income (after Form 8582) and an estate's or trust's Part III amount stay net investment income; the Form 1041 K-1 box 14 code H adjustment (line 7) is not an input. An item taken into account in self-employment income is not net investment income (section 1411(c)(6)): a partner's box 14 code A amount is taken as the nonpassive income's first, and what is left of it, up to the passive K-1 result, comes out of the passive part on line 4b too.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_1411c1_k1","lines":["8960.4b"],"sources":[{"rule":"niit_k1","url":"https://www.law.cornell.edu/uscode/text/26/1411","title":"26 U.S. Code § 1411","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["a passive activity (within the meaning of section 469) with respect to the taxpayer","a trade or business of trading in financial instruments or commodities"],"checked":"2026-11-02"},{"rule":"niit_k1","url":"https://www.irs.gov/pub/irs-dft/f8960--dft.pdf","title":"Form 8960 (2026 early-release draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Adjustment for net income or loss derived in the ordinary course of a non-"],"checked":"2026-11-02"},{"rule":"niit_k1","url":"https://www.irs.gov/pub/irs-pdf/i8960.pdf","title":"Instructions for Form 8960 (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Nonpassive income not subject to NIIT is entered as a negative amount on line 4b.","Net income or loss from a section 162 trade or business","determining self-employment income subject to tax under"],"checked":"2026-11-02"}]},{"id":"irc_72q_annuity_additional_tax","stage":"retirement","title":"§72(q): the 10% on a nonqualified annuity before 59½","summary":"Form 5329 line 1 (with §72(t)'s early distributions; Pub 575): the taxable part of a nonqualified annuity's payments (nonqualifiedAnnuity) before 59½, at the age clock's share of the year as for an IRA withdrawal (§72(q)(2)(A)); disability (§72(q)(2)(C), disabled) excepts all of it. The 10% is on Schedule 2 line 8 (2026 draft line 5) with the §72(t) amount. Federal engine 2.3 (B3); before, the API refused the annuity before 59½. Not modelled: the §72(q)(3) recapture with interest when a series of payments is modified, the 5% rate under a pre-March 1, 1986 election, modified endowment contracts (§72(v)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72q_annuity_additional_tax","lines":["5329.1.annuity"],"sources":[{"rule":"annuity_72q","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["If any taxpayer receives any amount under an annuity contract","made on or after the death of the holder","attributable to the taxpayer’s becoming disabled within the meaning of subsection (m)(7)","allocable to investment in the contract before August 14, 1982","under a qualified funding asset (within the meaning of section 130(d)","under an immediate annuity contract (within the meaning of section 72(u)(4))","which is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a)","plus interest for the deferral period"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-pdf/p575.pdf","title":"Publication 575, Pension and Annuity Income (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you must pay either of these taxes, report them on","From an immediate annuity contract (a single premium","5% rate on certain early distributions from deferred"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Distributions from annuity contracts to the extent that the"],"checked":"2026-11-02"},{"rule":"72t","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall be increased by an amount equal to 10 percent of the portion of such amount which is includible in gross income","made on or after the date on which the employee attains age 59½"],"checked":"2026-11-02"}]},{"id":"irc_72q2_exceptions","stage":"retirement","title":"§72(q)(2): the annuity's exceptions","summary":"Form 5329 line 2: the caller's parts of nonqualifiedAnnuity paid after the holder's death ((B), nonqualifiedAnnuityDeath), as substantially equal periodic payments ((D), nonqualifiedAnnuitySepp), and under (F), (G), (I) or (J) (investment before August 14, 1982, a qualified funding asset, an immediate annuity, an annuity bought by an employer on a plan's termination; nonqualifiedAnnuityOtherException), together at most the annuity. (E) and (H) cannot arise: money from a qualified plan or an IRA goes in the pension and IRA inputs (§72(t)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_72q2_exceptions","lines":["5329.2.annuity"],"sources":[{"rule":"annuity_72q","url":"https://www.law.cornell.edu/uscode/text/26/72","title":"26 U.S. Code § 72","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["If any taxpayer receives any amount under an annuity contract","made on or after the death of the holder","attributable to the taxpayer’s becoming disabled within the meaning of subsection (m)(7)","allocable to investment in the contract before August 14, 1982","under a qualified funding asset (within the meaning of section 130(d)","under an immediate annuity contract (within the meaning of section 72(u)(4))","which is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a)","plus interest for the deferral period"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-pdf/p575.pdf","title":"Publication 575, Pension and Annuity Income (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["If you must pay either of these taxes, report them on","From an immediate annuity contract (a single premium","5% rate on certain early distributions from deferred"],"checked":"2026-11-02"},{"rule":"annuity_72q","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Distributions from annuity contracts to the extent that the"],"checked":"2026-11-02"}]},{"id":"irc_4973b_ira_excess","stage":"other_taxes","title":"Form 5329 Part III: excess traditional IRA contributions","summary":"Lines 9-17 per person (each spouse's own Form 5329 on a joint return): the limit (line 10) is the smaller of $7,500 ($8,600 at 50 or older by the year end) and the compensation (wages and the net self-employment earnings less the deductible half of SE tax and the plan deduction, a loss not subtracted); on a joint return the spouse with less compensation adds the other's compensation less the other's traditional (up to the other's limit) and Roth contributions (§219(c)). Line 10 = the limit less the traditional and Roth contributions; 13 = 10 + 11 + 12; 14 = 9 - 13 (not below 0); 15 = the contributions (less a corrective withdrawal made in time) over the limit; 16 = 14 + 15; 17 = 6% of the smaller of 16 and the December 31 value (traditionalIraValue; absent: the excess). Schedule 2 line 8 (2026 draft line 18); not in Form 2210's tax (i2210 line 2: line 8's \"additional tax on distributions only\"). The absorbed prior excess is a deemed contribution the IRA Deduction Worksheet would deduct: not modelled (the engine has no IRA deduction). 2026 amounts only (a projected year is refused).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973b_ira_excess","lines":["5329.16","5329.17"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_ira_limits","url":"https://www.irs.gov/pub/irs-drop/n-25-67.pdf","title":"Notice 2025-67: 2026 retirement plan limitations","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["increased from $7,000 to $7,500","from $1,000 to $1,100"],"checked":"2026-11-02"},{"rule":"excess_ira_limits","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["$7,500 ($8,600 if age 50 or older at the end of 2026)"],"checked":"2026-11-02"},{"rule":"excess_ira_limits","url":"https://www.law.cornell.edu/uscode/text/26/219","title":"26 U.S. Code § 219","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by","the amount of any contribution on behalf of such spouse to a Roth IRA under section 408A for such taxable year"],"checked":"2026-11-02"},{"rule":"excess_ira_limits","url":"https://www.irs.gov/pub/irs-pdf/p590a.pdf","title":"Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["don’t subtract the loss from your salaries"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_4973f_roth_excess","stage":"other_taxes","title":"Form 5329 Part IV: excess Roth IRA contributions","summary":"Lines 18-25 per person: the Roth limit is Pub 590-A Worksheet 2-2's: line 6 the traditional limit, reduced when the MAGI is over $153,000 ($242,000 joint or QSS; 0 on a separate return living with the spouse) by its share of the $15,000 range ($10,000 joint, QSS or separate living together): line 8 rounded up to $10, not below $200, 0 at the end of the range; line 11 = the smaller of line 8 and line 6 less the traditional contributions. The MAGI is Worksheet 2-1's: AGI less the conversion income, refigured without it (the taxable social security, Form 8582's special allowance) when over the end of the range, as the worksheet's Note allows. Line 19 = the limit less the Roth contributions; 20 the Roth distributions (rothIraDistributions; the filer's default rothDistribution); 22 = 18 - 21; 23 the contributions over the limit; 25 = 6% of the smaller of 24 and the value.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973f_roth_excess","lines":["5329.24","5329.25"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_roth_limit","url":"https://www.irs.gov/pub/irs-drop/n-25-67.pdf","title":"Notice 2025-67: 2026 retirement plan limitations","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["between $153,000 and $168,000","is between $242,000 and $252,000 for"],"checked":"2026-11-02"},{"rule":"excess_roth_limit","url":"https://www.law.cornell.edu/uscode/text/26/408A","title":"26 U.S. Code § 408A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["$15,000 ($10,000 in the case of a joint return or a married individual filing a separate return)","shall apply to any reduction under this subparagraph","any amount included in gross income under subsection (d)(3) shall not be taken into account"],"checked":"2026-11-02"},{"rule":"excess_roth_limit","url":"https://www.irs.gov/pub/irs-pdf/p590a.pdf","title":"Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Round the result up to the nearest $10","rounded to at least three places","you can refigure your AGI solely for the purpose of figuring your"],"checked":"2026-11-02"},{"rule":"excess_roth_limit","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["$153,000 if single, head of household, or married filing"],"checked":"2026-11-02"},{"rule":"excess_roth_limit","url":"https://www.law.cornell.edu/uscode/text/26/219","title":"26 U.S. Code § 219","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["No dollar limitation shall be reduced below $200"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_4973e_coverdell_excess","stage":"other_taxes","title":"Form 5329 Part V: excess Coverdell ESA contributions","summary":"Lines 26-33 for the filer as the beneficiary: line 27 the limit (coverdellLimit, default $2,000) less the contributions, 28 the distributions, 30 = 26 - 29, 31 the excess, 33 = 6% of the smaller of 32 and the value. A corrective withdrawal before June 1, 2027 is not a contribution.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973e_coverdell_excess","lines":["5329.32","5329.33"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["exceeds $2,000 (or, if less, the sum of the maximum amounts permitted"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["beginning in 2026, $20,000"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["smaller of $2,000 or the sum of the maximum amounts the","may not exceed $20,000 plus"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_4973d_archer_msa_excess","stage":"other_taxes","title":"Form 5329 Part VI: excess Archer MSA contributions","summary":"Lines 34-41 for the filer: the limit is the caller's (archerMsaLimit, Form 8853 lines 3-4); line 35 the unused limit, 36 Form 8853 line 8, 39 the excess (the employer's included), 41 = 6% of the smaller of 40 and the value. The contributions also reduce the HSA limit (§223(b)(4)).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973d_archer_msa_excess","lines":["5329.40","5329.41"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["exceeds $2,000 (or, if less, the sum of the maximum amounts permitted"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["beginning in 2026, $20,000"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["smaller of $2,000 or the sum of the maximum amounts the","may not exceed $20,000 plus"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_4973g_hsa_excess","stage":"other_taxes","title":"Form 5329 Part VII: excess HSA contributions","summary":"Lines 42-49 per person: the limit is Form 8889 line 8 when given (hsaLimit), else the statutory one of the coverage held all year ($4,400 self-only, $8,750 family, + $1,000 at 55 or older), less the Archer MSA contributions; spouses on a joint return, both covered and either with family coverage, share the family limit equally (Pub 969), each adding their own $1,000. Line 43 the unused limit, 44 Form 8889 line 16, 46 = 42 - 45, 47 the contributions (the employer's included, less a corrective withdrawal) over the limit, 49 = 6% of the smaller of 48 and the value. The absorbed prior excess (a Form 8889 line 13 deduction) is not modelled.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973g_hsa_excess","lines":["5329.48","5329.49"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_hsa_limit","url":"https://www.irs.gov/pub/irs-drop/rp-25-19.pdf","title":"Rev. Proc. 2025-19: 2026 HSA and HDHP amounts","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["deductible health plan is $4,400","deductible health plan is $8,750"],"checked":"2026-11-02"},{"rule":"excess_hsa_limit","url":"https://www.law.cornell.edu/uscode/text/26/223","title":"26 U.S. Code § 223","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["has attained age 55 before the close of the taxable year"],"checked":"2026-11-02"},{"rule":"excess_hsa_limit","url":"https://www.irs.gov/pub/irs-pdf/p969.pdf","title":"Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans (2025)","publisher":"Internal Revenue Service","kind":"instructions","official":true,"quotes":["Rules for married people. If either spouse has family","amount contributed to both spouses’ Archer MSAs. After","additional contribution to their own HSA."],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_4973h_able_excess","stage":"other_taxes","title":"Form 5329 Part VIII: excess ABLE contributions","summary":"Line 50: the contributions to the filer's ABLE account (less a return in time) over ableLimit (default $20,000 for 2026; plus an employed beneficiary's ABLE-to-work amount, the caller's); line 51 = 6% of the smaller of line 50 and the value. No carryover lines.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_4973h_able_excess","lines":["5329.50","5329.51"],"sources":[{"rule":"excess_4973","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["shall not exceed 6 percent of the value of the account or annuity","the amount allowable as a deduction under section 219 shall be computed without regard to section 219(g)","exceeds the contribution limit under section 529A(b)(2)(B)"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Prior year excess contributions. Subtract line 13 from line 9","Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31","Include this amount on Schedule 2 (Form 1040), line 18","2026 distributions from your HSAs from Form 8889, line 16"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["less your contributions to traditional IRAs and Roth IRAs for","reduced by the amount you contributed to traditional IRAs. But"],"checked":"2026-11-02"},{"rule":"excess_4973","url":"https://www.irs.gov/pub/irs-pdf/f5329.pdf","title":"Form 5329 (2025)","publisher":"Internal Revenue Service","kind":"form","official":true,"quotes":["Include this amount on Schedule 2 (Form 1040), line 8"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["exceeds $2,000 (or, if less, the sum of the maximum amounts permitted"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","title":"Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)","publisher":"Internal Revenue Service","kind":"guidance","official":true,"quotes":["beginning in 2026, $20,000"],"checked":"2026-11-02"},{"rule":"excess_coverdell_able","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["smaller of $2,000 or the sum of the maximum amounts the","may not exceed $20,000 plus"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/4973","title":"26 U.S. Code § 4973","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["in a distribution to which section 223(f)(3) applies shall be treated as an amount not contributed"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/408","title":"26 U.S. Code § 408","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["such distribution is accompanied by the amount of net income attributable to such contribution"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/530","title":"26 U.S. Code § 530","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["before the first day of the sixth month of the taxable year following the taxable year"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/uscode/text/26/529A","title":"26 U.S. Code § 529A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["You make the withdrawal before June 1, 2027; and","6 months after the due date of your tax return, excluding"],"checked":"2026-11-02"},{"rule":"excess_corrective","url":"https://www.law.cornell.edu/cfr/text/26/301.9100-2","title":"26 CFR 301.9100-2","publisher":"Cornell Legal Information Institute (Code of Federal Regulations)","kind":"regulation","official":true,"quotes":["An automatic extension of 6 months from the due date of a return excluding extensions is granted"],"checked":"2026-11-02"}]},{"id":"irc_530a_trump_excess","stage":"other_taxes","title":"Form 5329 Part X: excess Trump account contributions","summary":"For the account beneficiary before the year they turn 18 (§530A(h)(5)): line 56 is 0 for 2026 (contributions began July 4, 2026), line 57 the caller's excess over $5,000, 59 the §530A(d)(5) distributions of it, 60 = 58 - 59, 61 = 6% of line 60. A filer 18 or older is refused (the account is then a traditional IRA).","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_530a_trump_excess","lines":["5329.60","5329.61"],"sources":[{"rule":"trump_account_excess","url":"https://www.law.cornell.edu/uscode/text/26/530A","title":"26 U.S. Code § 530A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["100 percent of the amount of net income attributable to such excess","in which the account beneficiary attains age 18, the term"],"checked":"2026-11-02"},{"rule":"trump_account_excess","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Additional Tax on Excess Contributions to Trump Accounts During the Growth Period","Enter 100% of line 62","Include this amount on Schedule 2 (Form 1040), line 5"],"checked":"2026-11-02"},{"rule":"trump_account_excess","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["The 2026 contribution limit is $5,000."],"checked":"2026-11-02"}]},{"id":"irc_530a_d5_trump_earnings","stage":"other_taxes","title":"Form 5329 Part XI: 100% of a distributed Trump account excess's earnings","summary":"Line 62 the earnings (Form 1099-R box 7d), line 63 = 100% of line 62 (§530A(d)(5)(C)): Schedule 2 line 8 (2026 draft line 5) and, as a tax on a distribution, in Form 2210's tax.","docs":"https://quantcalc.app/docs/federal-tax/calculation-order/#irc_530a_d5_trump_earnings","lines":["5329.63"],"sources":[{"rule":"trump_account_excess","url":"https://www.law.cornell.edu/uscode/text/26/530A","title":"26 U.S. Code § 530A","publisher":"Cornell Legal Information Institute (text of the U.S. Code, Title 26)","kind":"statute","official":true,"quotes":["100 percent of the amount of net income attributable to such excess","in which the account beneficiary attains age 18, the term"],"checked":"2026-11-02"},{"rule":"trump_account_excess","url":"https://www.irs.gov/pub/irs-dft/f5329--dft.pdf","title":"Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["Additional Tax on Excess Contributions to Trump Accounts During the Growth Period","Enter 100% of line 62","Include this amount on Schedule 2 (Form 1040), line 5"],"checked":"2026-11-02"},{"rule":"trump_account_excess","url":"https://www.irs.gov/pub/irs-dft/i5329--dft.pdf","title":"Instructions for Form 5329 (2026 draft)","publisher":"Internal Revenue Service","kind":"draft_form","official":true,"quotes":["The 2026 contribution limit is $5,000."],"checked":"2026-11-02"}]}],"parameters":{"byFilingStatus":{"single":{"ordinaryBrackets":[{"from":0,"to":12400,"rate":0.1},{"from":12400,"to":50400,"rate":0.12},{"from":50400,"to":105700,"rate":0.22},{"from":105700,"to":201775,"rate":0.24},{"from":201775,"to":256225,"rate":0.32},{"from":256225,"to":640600,"rate":0.35},{"from":640600,"to":null,"rate":0.37}],"longTermGainBrackets":[{"from":0,"to":49450,"rate":0},{"from":49450,"to":545500,"rate":0.15},{"from":545500,"to":null,"rate":0.2}],"standardDeduction":16100,"additionalAgedDeduction":2050,"niitThreshold":200000,"niitRate":0.038},"mfj":{"ordinaryBrackets":[{"from":0,"to":24800,"rate":0.1},{"from":24800,"to":100800,"rate":0.12},{"from":100800,"to":211400,"rate":0.22},{"from":211400,"to":403550,"rate":0.24},{"from":403550,"to":512450,"rate":0.32},{"from":512450,"to":768700,"rate":0.35},{"from":768700,"to":null,"rate":0.37}],"longTermGainBrackets":[{"from":0,"to":98900,"rate":0},{"from":98900,"to":613700,"rate":0.15},{"from":613700,"to":null,"rate":0.2}],"standardDeduction":32200,"additionalAgedDeduction":1650,"niitThreshold":250000,"niitRate":0.038},"mfs":{"ordinaryBrackets":[{"from":0,"to":12400,"rate":0.1},{"from":12400,"to":50400,"rate":0.12},{"from":50400,"to":105700,"rate":0.22},{"from":105700,"to":201775,"rate":0.24},{"from":201775,"to":256225,"rate":0.32},{"from":256225,"to":384350,"rate":0.35},{"from":384350,"to":null,"rate":0.37}],"longTermGainBrackets":[{"from":0,"to":49450,"rate":0},{"from":49450,"to":306850,"rate":0.15},{"from":306850,"to":null,"rate":0.2}],"standardDeduction":16100,"additionalAgedDeduction":1650,"niitThreshold":125000,"niitRate":0.038},"hoh":{"ordinaryBrackets":[{"from":0,"to":17700,"rate":0.1},{"from":17700,"to":67450,"rate":0.12},{"from":67450,"to":105700,"rate":0.22},{"from":105700,"to":201750,"rate":0.24},{"from":201750,"to":256200,"rate":0.32},{"from":256200,"to":640600,"rate":0.35},{"from":640600,"to":null,"rate":0.37}],"longTermGainBrackets":[{"from":0,"to":66200,"rate":0},{"from":66200,"to":579600,"rate":0.15},{"from":579600,"to":null,"rate":0.2}],"standardDeduction":24150,"additionalAgedDeduction":2050,"niitThreshold":200000,"niitRate":0.038}},"seniorDeduction":{"amountPerQualifyingIndividual":6000,"minimumAge":65,"phaseOutRate":0.06,"phaseOutThresholdJoint":150000,"phaseOutThresholdOther":75000,"firstYear":2025,"lastYear":2028,"separateReturnsQualify":false},"earlyWithdrawalTax":{"rate":0.1,"firstPenaltyFreeYearEndAge":60},"itemizedDeductions":{"saltCap2025":40000,"saltCap":40400,"saltPhaseDownThreshold2025":500000,"saltPhaseDownThreshold":505000,"saltPhaseDownRate":0.3,"saltFloor":10000,"saltSeparateReturnShare":0.5,"medicalFloorRate":0.075,"charityFloorRate":0.005,"charityCashLimitRate":0.6,"charityCapitalGainPropertyLimitRate":0.3,"section68Fraction":0.054054054054054057,"nonitemizerCharityCap":1000,"nonitemizerCharityCapJoint":2000},"blindness":{"additionalBlindDeductionMarried":1650,"additionalBlindDeductionUnmarried":2050},"retirementAccounts":{"separationFromServiceAge":55,"separationFromServiceAgePublicSafety":50,"missedRmdExciseRate":0.25,"missedRmdExciseRateCorrected":0.1,"rothFiveYearPeriod":5,"splitInterestQcdLimit":55000},"estimatedTax":{"currentYearShare":0.9,"priorYearShare":1,"priorYearShareHighAgi":1.1,"highAgiThreshold":150000,"highAgiThresholdSeparate":75000,"noPenaltyBelow":1000,"underpaymentRates":[{"from":"2025-04-01","rate":0.07,"announced":true},{"from":"2025-07-01","rate":0.07,"announced":true},{"from":"2025-10-01","rate":0.07,"announced":true},{"from":"2026-01-01","rate":0.07,"announced":true},{"from":"2026-04-01","rate":0.06,"announced":true},{"from":"2026-07-01","rate":0.07,"announced":true},{"from":"2026-10-01","rate":0.07,"announced":true},{"from":"2027-01-01","rate":0.07,"announced":false}],"dueDates":["2026-04-15","2026-06-15","2026-09-15","2027-01-15"]}},"notModeled":["Wages and self-employment beyond the W-2 and Schedule C amounts the API takes: farm income and the optional methods of Schedule SE, church employee income, railroad retirement (RRTA) compensation, unreported tips (Form 4137) and uncollected FICA (Form 8919), statutory employees; the QBI deduction's REIT dividends, publicly traded partnership income, qualified business loss carryforwards in and the agricultural cooperative (patron) reduction; every business is taken as one the filer materially participates in","Form 4952 investment-interest elections (the Schedule D Tax Worksheet lines 3 to 5 and 8, and the Qualified Dividends and Capital Gain Tax Worksheet's line 3); qualified dividends are taken to meet the holding-period test (more than 60 days in the 121-day period around the ex-dividend date, IRS Pub 550)","Credits other than the foreign tax credit, the credit for the elderly or disabled, the saver's credit, the child tax credit and credit for other dependents and the earned income credit: child and dependent care, education, energy and vehicle credits, the adoption credit, the general business credit, the prior-year minimum tax credit (Form 8801); the dependency, relationship, residency, identification-number and student tests of the credits are the caller's assertion; the EIC of a filer with foreign earned income, the Schedule 8812 Puerto Rico rules and nontaxable combat pay","Foreign tax credit and AMT limits: foreign income other than passive fund income (the general, section 901(j), treaty and lump-sum categories, foreign 25%/28% gains, Form 2555), interest expense apportionment (Form 1116 lines 4a-4b), foreign tax reductions and the high-tax kickout (lines 12-13), the carryback and reading back a carryover out, the AMT refiguring of capital gains and of Form 4952 (lines 2c and Part III) and the Form 6251 adjustments beyond private-activity-bond interest, incentive stock options and the caller's disposition and other adjustments","Adjustments to income (Schedule 1 Part II) other than the deductible part of self-employment tax, the self-employed retirement plan deduction and the self-employed health insurance deduction (lines 15-17); the Schedule 1-A car-loan interest deduction; the tips and overtime deductions' valid-SSN and qualifying-occupation conditions are the caller's assertion","Private-foundation gift limits (and their carryover classes), the 0.5% floor on carryovers into 2026 and later as the IRS may read it (the engine applies it to the total, carryovers included), non-cash gifts other than long-term capital-gain property (ordinary-income property and the §170(e) reduction), and the §163(h)(3) mortgage-debt limit (mortgage interest is taken as a deductible amount); casualty and theft losses (Schedule A line 15, Form 4684); other itemized deductions (line 16) are taken as already limited (gambling losses up to winnings)","The calculation of substantially equal periodic payments (the installment is an input), the other §72(t)(2) exceptions (first home, medical, birth or adoption, emergency, domestic abuse, terminal illness), the further Form 5329 exceptions (a qualified domestic relations order, health insurance while unemployed, higher education, an IRS levy, reservists, ESOP dividends, federal phased retirement, §414(w) and corrective distributions), the 25-years-of-service alternative to separation at 50, the 25% rate on a SIMPLE IRA distribution in its first 2 years (the engine uses 10%), and first-home or death Roth distributions","The §4974(d) reasonable-cause waiver of the missed-RMD excise and the still-working exception for an employer plan; one request carries one excise rate (a shortfall partly corrected and partly not cannot be sent at once)","Form 2210's penalty waivers and the farmer and fisherman rules, Part II box E (a joint return in only one of the two years), Schedule AI for estates and trusts, and Schedule AI's period amounts of the items a request cannot split by period (Schedule A amounts, the AMT preference items, the credits' inputs and the rest accrue evenly through the year); the Schedule AI NIIT and Additional Medicare Tax are figured on the annualized amounts (the instructions give no other rule)","A qualifying surviving spouse's eligibility (the year of death, the dependent child) is the caller's assertion; the split-interest QCD is an engine function, not a request field","A spouse's death on a single return: the capital-loss carryover out is the joint return's; the decedent's share does not pass to the survivor (IRS Pub 550), so the caller enters the survivor's share as next year's carryover (the Monte Carlo planner splits it: spouseCapitalLossShare)","The balance due: withholding and estimated payments (read only by Form 2210), refundable credits (the earned income credit, the additional child tax credit, the refundable American opportunity credit, and the other Schedule 3 Part II items; excess social security withheld, Schedule 3 line 11, is reported but not netted), the refund and the amount owed (Form 1040 lines 25 to 37). The engine computes the total tax (line 24) and, on request, the Form 2210 penalty (line 38)","Schedule 2 taxes other than the §72(t) additional tax (and, federal engine 2.3, the §72(q) one and Form 5329's 6% and 100% taxes), the §4974 missed-RMD excise and the net investment income tax: household employment taxes, the HSA, Archer MSA and other account additional taxes, credit recaptures, the deferred-compensation (§409A, §457A) and installment-sale interest taxes, and the rest of Schedule 2","Form 5329 Part II (the additional tax on Coverdell ESA, QTP and ABLE account distributions), and around Parts III-VIII (federal engine 2.3): the deemed contribution of a prior excess absorbed by this year's unused limit (the IRA Deduction Worksheet, Form 8889 line 13: the engine has no traditional IRA or HSA deduction), Form 8889 itself (the HSA deduction, the 20% on distributions not used for medical expenses), the contributors' Coverdell MAGI limits, the Archer MSA limit and the ABLE-to-work amount (the caller's limits), a spouse's Coverdell ESA, Archer MSA, ABLE or Trump account, the 2025 Trump account excess (0 for 2026) and the excess-contribution limits of a projected year (refused)","Royalty income, Schedule E Parts IV-V (REMICs, farm rental), Form 4797 gains, farm income and personal-property rental: no field carries them into the net investment income tax (otherOrdinaryIncome and pension are never net investment income; a nonqualified annuity has its own field; rental real estate has rentalNetIncome, federal engine 2.1; partnerships, S corporations, estates and trusts the K-1 fields, federal engine 2.3)","Other Schedule 1 income items with their own rules: the net operating loss deduction, hobby income, §951/§951A inclusions, the §461(l) excess business loss adjustment and digital assets received as ordinary income","The foreign earned income and housing exclusions (Form 2555) and the possession exclusions: MAGI is AGI throughout (the senior deduction, the NIIT, the SALT cap), and there is no Foreign Earned Income Tax Worksheet","A filer or spouse who can be claimed as someone's dependent (the limited standard deduction), a dual-status alien, the Social Security lump-sum election (Pub 915 worksheets 2 to 4), the Form 8815 savings-bond interest exclusion and the other Pub 915 line 5 exclusions, repayments of benefits, a child's income on the parent's return (Form 8814), lump-sum distribution averaging (Form 4972), the retired public safety officer insurance exclusion and a pension's exclusion ratio for after-tax contributions (the pension field is the taxable amount)","The senior deduction's valid-SSN condition is assumed met","Form 8606 line 4 (contributions made after the year end) and qualified disaster distributions and repayments (lines 15b, 15c, 25b); the carry-forward basis omits them","Planner IRMAA: the MAGI add-backs other than tax-exempt interest (the savings-bond interest exclusion, foreign earned income, possession income), the three-year-old return when the two-year-old one is not available, and a new determination after a life-changing event (Form SSA-44): the planner always uses the MAGI of two years earlier","Planner RMDs per owner and per account: employer plans are not figured separately from IRAs, and a spouse's own IRA is distributed on the spouse's age, start age and divisor only when the plan gives the spouse's share of the traditional balance (traditionalBalanceSpouse); otherwise the planner takes one RMD on the household's combined traditional balance at the primary owner's age","On Form 8960 Part II: foreign income tax and state or local property taxes attributable to net investment income (line 9b), miscellaneous investment expenses (line 9c), additional modifications (line 10) and the Form 4952 limit (investmentInterest is the deductible amount)","§72(q) beyond the 10% and its exceptions (federal engine 2.3): the recapture with interest of a series of substantially equal payments modified before 59½ or within 5 years (§72(q)(3)), the 5% rate on a deferred annuity under a pre-March 1, 1986 election, and a modified endowment contract's additional tax (§72(v)); the annuity's exclusion ratio (nonqualifiedAnnuity is the taxable part)","Substantially equal periodic payments from an employer plan, which §72(t)(3)(B) excepts only after the employee separates from service: seppDistribution is the IRA part, and the API refuses a seppDistribution that overlaps employerPlanDistribution","Rental real estate beyond Schedule E Part I as one net amount, and Schedule E Parts II-III beyond one net amount per class (federal engine 2.3): royalties, REMICs (Part IV), farm rental (Form 4835), the release of a suspended loss on a disposition (section 469(g)) or at death, the commercial revitalization deduction, the per-activity allocation of the unallowed loss within a class (Form 8582 worksheets: each class is one activity), depreciation (an input inside the net amount) and its recapture, the at-risk rules (Form 6198) and the partner and shareholder basis limits (sections 704(d), 1366(d); Forms 7203/7217: the K-1 amounts are entered after them), the excess business loss limitation of section 461(l) (refused above its threshold), publicly traded partnerships, self-charged interest, the Form 1041 K-1 box 14 code H adjustment of Form 8960 line 7, a net operating loss, the rental real estate safe harbor of the QBI deduction (Rev. Proc. 2019-38), the AMT refiguring of passive losses, and the real estate professional's net investment income safe harbor (Treas. Reg. section 1.1411-4(g)(7)); Form 1116 line 3e takes the positive rental net income as gross income","Inherited accounts beyond one account and one beneficiary: several beneficiaries of one account (the oldest's life expectancy, separate accounts) and trusts as beneficiaries (see-through trusts, applicable multi-beneficiary trusts) are the caller's to reduce to one beneficiary type; a successor beneficiary (the beneficiary of a beneficiary who died) and the 10-year limit after an eligible designated beneficiary's death; the surviving spouse's election to be treated as the decedent (SECURE 2.0 section 327), the spouse who dies before distributions begin, and the deemed election to treat the IRA as one's own; the decedent's basis (its own Form 8606) and a nonqualified distribution from an inherited Roth IRA; the 10-year election's deadline; the plan's own terms (a plan may require the 5-year or 10-year rule)","Form 8962 beyond Parts I-III for one tax family: the allocation of a policy shared with another tax family (Part IV), the alternative calculation for the year of marriage (Part V), a qualified small employer health reimbursement arrangement, a dependent's own Form 8962, the self-employed health insurance deduction together with the credit (refused), the special enrollment period and eligibility facts (other minimum essential coverage, affordable employer coverage, lawful presence; the caller's assertion), and a premium tax credit in a projected year (refused: the guidelines and percentages are not published)"]}