How do you use an income tax calculator?


Quick Answer

To use an income tax calculator, a taxpayer should visit a tax software site such as Intuit TurboTax or H&R Block, select the appropriate type, and complete all required fields. Tax calculators help calculate refunds, benefit amounts and exemptions.

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Full Answer

The Intuit TurboTax website allows a user to select from multiple tax calculators that each contain unique questionnaires. Common items across all questionnaires include personal information and income amounts, TurboTax explains. For basic income tax calculators, users enter filing status, income totals and deductions. Calculators are available for recent tax years.

Users find that the H&R Block online calculator allows for tax calculations related to personal income, W-4 wage statements and the Affordable Care Act. Users unsure of how to use the calculator can click the Learn More buttons on the website to browse technical tax topics. In addition, the website offers a number to call for live support. Finally, after using the tax calculator, users can translate the information onto the available software that can be downloaded directly, reports H&R Block.

Both of the tax calculators offered by TurboTax and H&R Block are free to use. The Internal Revenue Service website also offers a withholding calculator for employers looking to determine how much to withhold from employee paychecks, notes the IRS.

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