To find your tax liabilities amount you need to follow basic steps that include:
Total every type of income both from work and investments to reach your gross amount.
The taxpayer should take away eligible deductions from their financial income to attain their adjusted gross income (AGI) level.
To minimize AGI one must decide between standard deduction or itemized deductions.
After subtracting deductions from AGI determine your taxable income amount.
Use the correct tax rate bands to determine how much tax will apply to income you need to pay taxes on
Decline Tax Credits to Lower the Established Tax Amount
The computed figure shows how much tax the person has to pay.