A Python-based tax calculation tool that helps compute federal and California state taxes for individuals with various income sources including W2 wages, self-employment income, investment income, and business deductions.

• Multi-year support: Calculate taxes for any year with configurable tax parameters
• Multiple income sources: W2 wages, self-employment income, dividends, capital gains, interest
• Business deductions: Home office deductions, business expenses, solo 401(k) contributions
• Tax calculations: Federal and California state taxes with proper bracket calculations
• Specialized taxes: Self-employment tax, Medicare tax, Social Security tax, Net Investment Income Tax (NIIT)
• Hledger integration: Uses hledger for financial data queries
• Configurable: All tax parameters and personal settings stored in YAML files

• Python 3.6+
• hledger (for financial data queries)
• PyYAML

1. Clone the repository:

git clone <repository-url>
cd taxes

2. Install Python dependencies:

pip install pyyaml

3. Configure your personal settings in hledger_parameters/personal.yaml:

   • Set your filing status (joint, single, head)
   • Configure your hledger journal directory path
   • Set up mortgage interest calculation
   • Configure home office deduction settings
   • Set solo 401(k) contribution preferences

4. Configure your hledger account aliases in hledger_parameters/aliases.yaml:

   • Map your actual hledger accounts to the expected query names
   • Configure business expense accounts
   • Set up tax payment accounts

5. Update tax parameters in tax_parameters/:

   • Federal tax brackets and thresholds in FEDERAL/YYYY.yaml
   • California tax brackets and thresholds in CA/YYYY.yaml

Calculate taxes for a specific year:

python3 taxes.py 2024

Calculate taxes for multiple years:

python3 taxes.py 2023 2024 2025

Contains personal configuration settings:

• filing_status: Tax filing status (joint, single, head)
• journal_directory: Path to your hledger journal files
• solo_401k_contribution: Solo 401(k) contribution strategy
• additional_federal_deduction: Additional federal deductions
• interest_by_year: Mortgage interest by year (optional)
• home_office: Home office deduction configuration

Maps hledger accounts to tax calculation queries:

• Income accounts (W2, dividends, capital gains, interest)
• Tax payment accounts
• Business expense accounts
• Foreign tax credit accounts

Tax brackets, thresholds, and rates for each year:

• Income tax brackets
• Standard deductions
• Social Security maximums
• Medicare thresholds
• NIIT thresholds
• State surcharges

================================================================
Tax Summary 2024
================================================================
    W2 Wages (Line 1)                                    $85,000.00
    Interest (Line 2b)                                     $2,500.00
    State Interest                                         $2,500.00
        Non-Qualified Dividends                            $1,200.00
        Short-Term Capital Gain                            $800.00
    Short-term total                                       $2,000.00
        Qualified Dividends (Line 3a)                      $3,500.00
        Long-term Capital Gains                            $2,000.00
    Long-term total                                        $5,500.00
    Loss to offset income                                  $0.00
        Business Income                                    $25,000.00
        Home Office Deduction                              $3,500.00
        Business Expenses                                  $5,000.00
    Net Business Income (Line 8)                          $16,500.00
    -----------------------------------------------------------------------------------
    Total (Line 9)                                        $111,000.00
    Line 10                                               $4,500.00
    Line 14                                               $15,000.00
    Line 15                                               $91,500.00
    -----------------------------------------------------------------------------------
    Final tax bill                                        $15,200.00
    Self-Employment Tax                                    $2,300.00
    Investment Tax (NIIT)                                  $0.00
    Extra Social Security Tax                              $0.00
    Extra Medicare Tax                                     $0.00
    Foreign Tax Credit                                     $0.00
    Total Tax Due (Line 24 minus credits)                 $17,500.00
    Tax Deposited (Line 25a + 26)                         $16,000.00
    -----------------------------------------------------------------------------------
    Total Federal Owed                                     $1,500.00
    Total CA Owed                                          $800.00
    Max Solo 401(k) Contribution                           $3,250.00
================================================================
Disclaimer: This assumes standard deduction, etc. Values are computed as per the script logic.

⚠️ This tool is for educational and planning purposes only. It is not a substitute for professional tax advice.

• The calculations are based on current tax law understanding but may not reflect all tax situations
• Tax laws change frequently - verify all calculations with current IRS and state tax authorities
• Consult with a qualified tax professional for your specific tax situation
• The tool makes certain assumptions (e.g., standard deduction) that may not apply to all taxpayers
• Results should be verified against official tax forms and professional tax software

Contributions are welcome! Please feel free to submit a Pull Request. For major changes, please open an issue first to discuss what you would like to change.

This project is licensed under the MIT License - see the LICENSE file for details.

If you encounter any issues or have questions, please open an issue on GitHub. However, please note that this is not a professional tax advisory service.