Q:

What is a basic income tax calculator?

A:

Quick Answer

A basic income tax calculator allows users to input their filing statuses, incomes, deductions and credits to estimate taxes for the year. Tax calculators do not account for every situation that affects tax status, so they are estimates only, according to Bankrate, TaxACT and H&R Block.

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Full Answer

The Internal Revenue Service provides a withholding calculator on its website, IRS.gov, where a user can enter his filing status, projected income, tax withheld to date, and any credits and deductions he qualifies for to estimate how much of an overpayment or underpayment he might end up with at the end of the year. The calculator also makes recommendations for taxpayers to change their allowances on their W-4 forms to adjust their withholding to more closely match the amount of income tax they may owe at the end of the tax year, according to the IRS.

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