Tax calculator to help you figure out taxes ahead. Understand your tax liability, taxes paid, and your tax refund. Figuring out taxes can be quite a hard task, but look no further. You only need one calculator to get ahead of your taxes.
Why calculate taxes before the tax season begins? Because you will only know about your taxes when you file a federal income tax return, the result may come out as a surprise.
The tax you pay through the taxes withheld from your income should be no less than 90% of your tax liability. Otherwise, you will pay underpayment penalties. On the other end, the tax withheld may be way too much compared to your tax liability. Since this means less take-home pay, you shouldn’t withhold tax that high as it will reduce cash flow.
Knowing this mid-tax year is always going to have a positive impact on your tax return. If the tax withheld is too much or too less, you can always fill out a new W-4 to your employer. With the new information on your W-4, the taxes withheld should be accurate enough to result in not owing any tax to the IRS but not overpaying either.
Tax Return and Refund Calculator
Start calculating tax return and refund by figuring out the taxes that will be withheld from your income over the course of the tax year.
How to use the tax calculator?
To use the above tax calculator, enter information about your income, withholding, anticipated deductions, and credits. The calculator will then summarize the total amount of taxes withheld and compare it with your estimated tax liability. If the taxes paid through withholding is expected to be more than tax liability, you will see your refund. If not, the amount owed.
For the most accurate results, make sure to enter everything about your anticipated tax return with the best knowledge available to you. For example, do not select standard deduction if you plan on itemizing deductions, and so on.