Life Event Tax Impact Tool

What This 2026 Comparison Includes

The tool subtracts the 2026 standard deduction from the ordinary-income amount you enter, applies the 2026 ordinary federal income-tax brackets for the selected filing status, and then applies a simplified estimate of two nonrefundable dependent credits. The standard deductions used are $16,100 for Single and Married Filing Separately, $32,200 for Married Filing Jointly, and $24,150 for Head of Household.

For dependents you identify as eligible, the tool starts with up to $2,200 per qualifying child under age 17 and up to $500 per other eligible dependent. For the phaseout calculation, it treats the income you enter as a proxy for modified adjusted gross income, applies the threshold at $200,000 or $400,000 for Married Filing Jointly, and limits these nonrefundable credits to the regular income tax calculated. It does not estimate the refundable Additional Child Tax Credit.

Choose filing status deliberately

A life event does not automatically make someone eligible for a particular filing status. Marital status at year-end and the detailed tests for Head of Household matter. Two cases are easy to miss and expensive. If your spouse died during the tax year you can generally still file jointly for that year, and for the two years afterwards a widowed parent with a dependent child may qualify as a Qualifying Surviving Spouse, which carries the same $32,200 standard deduction as a joint return rather than the $16,100 for Single. This tool does not offer that status, so model it as Married Filing Jointly if it applies to you. And for divorce: under the rules for instruments executed after 31 December 2018, alimony is neither deductible by the payer nor taxable to the recipient, so do not carry an older assumption into a settlement. For divorce and separation scenarios, review IRS Publication 504 or work with a tax professional before relying on a status change.

Important exclusions

This tool does not calculate adjusted gross income, above-the-line or itemized deductions, capital gains, qualified dividends, self-employment tax, payroll tax, the alternative minimum tax, the net investment income tax, premium tax credits, the Earned Income Tax Credit, education or childcare credits, state or local taxes, withholding, estimated payments, penalties, or refunds. It also does not determine whether you or a dependent satisfies eligibility rules.

Unemployment compensation, severance, retirement distributions, Roth conversions, and net self-employment income can all change taxable income in ways this quick comparison does not model. Treat the output as a planning range, then use the IRS Tax Withholding Estimator or a qualified tax professional for a return-level estimate.

Sources and Method

The filing-status brackets and standard deductions come from IRS Revenue Procedure 2025-32, which sets the 2026 inflation-adjusted amounts. Dependent-credit amounts and basic eligibility information come from the IRS Child Tax Credit and Credit for Other Dependents guidance.

The result is a simplified comparison of regular federal income tax after the standard deduction and potential nonrefundable dependent credits. It is not a prediction of final tax, amount due, or refund and does not constitute tax advice.