Q:

How do you use a taxable income tax calculator?

A:

Quick Answer

To use a taxable income calculator, enter the information regarding your filing status and taxable income into the calculator to determine how much federal income tax you owe, explains TaxAct. After entering the information, the calculator provides an estimate of how much income tax you owe, your tax rate and your tax bracket.

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Full Answer

To use a taxable income tax calculator, first determine your filing status, and your choices are single, married filing jointly, married filing separately or head of household. From there, select the status that applies to your tax circumstances. Then, enter your taxable income into the calculator, which you determine by taking your taxed income and subtracting exemptions and deductions, reports TaxAct. Based on the given information, the calculator provides an estimate of the income tax you owe, your tax, and the tax bracket that applies to your circumstances.

Certain calculators require additional information to provide the most accurate estimate of the taxes owed. Some calculators ask for total wages paid, the income tax previously withheld and income earned other than wages. H&R Block reports that some calculators use certain expenses such as student loan interest payments, child care costs and charitable donations to help determine deductions with greater accuracy.

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