How do you determine how much federal tax that you owe?


Quick Answer

Use the appropriate IRS tax table to determine how much federal tax is owed. An individual must calculate his taxable income and use the correct income bracket and filing status to figure out his tax obligation, according to Turbo Tax.

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Full Answer

Step 1: Choose a filing status.

A taxpayer is able to elect any filing status for which he is eligible. The standard deduction varies based on the elected status.

Step 2: Calculate taxable income

Taxable income is determined by subtracting the amounts of any permitted deductions.

Step 3: Determine the correct income bracket

An up-to-date tax table for the specific tax year filing is vital for accuracy. A taxpayer has to find his taxable income column, and then use the correct filing status row to see where the two intersect to calculate his tax liability .

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