Unless you live in as hole, federal income taxes are inevitable. No doubt many of us find ourselves wondering what size of tax bomb Uncle Sam is going to drop on us prior to The April 15 deadline.
Federal Income Tax Calculator
There are many factors that influence the outcome of a tax return, and the amount of taxes owed. If you're looking for a bigger refund, it's wise to use an income tax calculator several times each year to enable better tax planning that can lower your overall tax bill.
Many factors help influence the amount of taxes the IRS is going pull out of your pocket. Your filing status along with tax deductions are major factors that can raise of lower your taxable income.
Taxable income, or net income is the amount of income that the Internal Revenue Service is going to use to determine the amount of taxes your are going to pay.
The lower you taxable income is, the lower your tax bill will be.
IRS Income Tax Calculator
By selecting your tax filing status from the drop down menu, you can enter your taxable income to calculate your Federal Income taxes, your Social Security taxes, and your Medicare taxes. Then add all three together to get your total federal income tax amount due.
Now reduce that figure by the amount of any taxes that you have already paid through quarterly payments, or by what has been withheld from your employee paychecks for income taxes.
You will then have a positive figure that indicates the amount of taxes you still owe, or a negative figure that indicates your federal tax refund amount.
Taxable And Non-Taxable Income
The IRS offers many tax loopholes, most are manipulative special interest tax advantages that the government has granted to big corporations and special interest groups.
For the common taxpayer like ourselves, there are many tax deductions that can be taken to lower our taxable income which in turn is used to calculate the amount of taxes we pay.
In many cases this is a big advantage to year round tax planning since Smartphone applications allow tax filers to make adjustments to their tax calculations as they happen throughout the year.
Stay current on your tax calculations for better tax planning.