Works out your household's federal and state income tax, Social Security and Medicare (or self-employment) tax, health premium after the marketplace subsidy, Medicare income surcharges and income-driven student-loan payment, at your current income and with the extra amount, and reports the difference. It includes the taxable share of Social Security, the 65-and-over and new tips, overtime, car-loan and senior deductions with their phase-outs, and the child tax credit phase-out, then searches for the exact income at which each cliff starts.
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Federal income tax brackets (2026)
Seven rates, 10% to 37%. Single: 10% to $12,400, 12% to $50,400, 22% to $105,700, 24% to $201,775, 32% to $256,225, 35% to $640,600, then 37%.
Source:
IRS Revenue Procedure 2025-32 (tax year 2026) · checked October 7, 2026
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Federal standard deduction (2026)
$16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household.
Source:
IRS: tax inflation adjustments for tax year 2026 · checked October 7, 2026
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Child tax credit (2026)
Up to $2,200 per qualifying child ($1,700 of it refundable), reduced by $50 for each $1,000 of income over $200,000 ($400,000 married filing jointly).
Source:
IRS Revenue Procedure 2025-32 (tax year 2026) · checked October 7, 2026
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Social Security and Medicare (FICA) taxes (2026)
Social Security 6.2% on wages up to $184,500; Medicare 1.45% on all wages, plus 0.9% above $200,000 ($250,000 married filing jointly, $125,000 married filing separately).
Source:
Social Security Administration: contribution and benefit base · checked October 7, 2026
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Extra standard deduction at 65 or older (2026)
$1,650 more per person 65 or older if married, $2,050 if single or head of household.
Source:
IRS Revenue Procedure 2025-32 (tax year 2026) · checked October 7, 2026
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New deductions for tips, overtime, car-loan interest and seniors (2026)
For 2025 to 2028: tips up to $25,000 and the overtime premium up to $12,500 ($25,000 joint), reduced by $100 per $1,000 of income over $150,000 ($300,000 joint); new-car loan interest up to $10,000, reduced by $200 per $1,000 over $100,000 ($200,000 joint); $6,000 per person 65 or older, reduced by 6% of income over $75,000 ($150,000 joint). Married couples need a joint return for all but the car-loan deduction.
Source:
IRS Schedule 1-A (Form 1040) · checked October 7, 2026
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How much of Social Security is taxed (2026)
Up to 50% of benefits are taxed once other income plus half of benefits passes $25,000 ($32,000 joint), and up to 85% past $34,000 ($44,000 joint). These amounts are not adjusted for inflation.
Source:
IRS Publication 915 · checked October 7, 2026
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Health insurance subsidy (premium tax credit) (2026)
You are expected to pay 2.10% to 9.96% of income toward the benchmark silver plan, and the credit covers the rest. Above 400% of the poverty line there is no credit at all ($62,600 for one person in 2026).
Source:
IRS Revenue Procedure 2025-25 (2026 applicable percentages) · checked October 7, 2026
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Federal poverty guidelines (used for 2026 health coverage and loan plans) (2025)
$15,650 for one person plus $5,500 for each additional person (48 states and DC; Alaska and Hawaii are higher). 2026 marketplace subsidies use the 2025 guidelines.
Source:
HHS: Poverty guidelines · checked October 7, 2026
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Medicare income surcharges (IRMAA) (2026)
Part B is $202.90 a month in 2026. Each person pays $81.20 to $487.00 more for Part B, and $14.50 to $91.00 more for Part D, once income from two years earlier passes $109,000 ($218,000 joint). One dollar over a line triggers the whole surcharge.
Source:
CMS: 2026 Medicare Parts A & B premiums and deductibles · checked October 7, 2026
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Federal student loan income-driven payments (2026)
Repayment Assistance Plan (from July 2026): 1% of income for $10,001 to $20,000, rising 1 point per $10,000 to 10% above $100,000, applied to all income, less $50 a month per dependent, at least $10 a month. Income-Based Repayment: 10% (15% for older loans) of income above 150% of the poverty line.
Source:
One Big Beautiful Bill Act (Pub. L. 119-21), section 82001 · checked October 7, 2026
