To use a tax table, a taxpayer determines filing status, calculates taxable income, determines income bracket and then navigates to the appropriate table section, notes Intuit TurboTax. The Internal Revenue Service modifies tax tables each year, and they are available in Publication 17.Continue Reading
Common filing statuses listed on tax tables include single or head of household, lists Intuit TurboTax. This filing status determines the deduction options for a taxpayer. Generally, the taxable income formula is total revenue less eligible expenses. Taxpayers also must consider dependency exemptions, as these amounts impact taxable income as well. A taxpayer should navigate to the section on a tax table that represents his taxable income amount. The space where income and filing status intersect contains a number representing the amount a taxpayer owes.
Taxpayers calculate tax owed using a tax table, though automated online calculators also are available, notes Intuit TurboTax. These calculators assist with a variety of tax items including withholding, benefits, exemptions and deductions. Each calculator contains a basic questionnaire, and the answers impact the calculated taxable income. The purpose of these calculators is to estimate a tax refund. The H&R Block website offers further information on tax calculations including technical tax articles and answers from tax representatives.Learn more about Taxes