Subtract the standard deduction from Box 1 wages to get taxable income, apply 2026 progressive tax brackets, subtract credits (child tax credit, EITC), then compare the result to Box 2 (federal withheld). If you withheld more than you owe, the difference is your refund.
- Step 1: Box 1 wages minus pre-tax deductions (401k, HSA) = AGI
- Step 2: AGI minus standard deduction ($16,100 single / $32,200 married) = taxable income
- Step 3: Apply 2026 federal brackets (10% to 37%) progressively
- Step 4: Subtract child tax credit ($2,000/child) and EITC if eligible
- Step 5: Compare final tax to Box 2 withheld — positive difference = refund
| Filing Status | 2026 Standard Deduction | CTC Phase-Out Starts |
|---|---|---|
| Single | $16,100 | $200,000 |
| Married Filing Jointly | $32,200 | $400,000 |
| Head of Household | $24,150 | $200,000 |
| Married Filing Separately | $16,100 | $200,000 |