Online tax calculators are very useful! Have you ever used an online calculator to figure out mortgage or car payments? If not, you’ll want to know about the many uses of online calculators including tax calculators. Many online tax calculators are free to use while others charge a small fee.
Here are a couple…
More tax calculators can be located by simply searching the Internet using any common search engine.
If you wonder during the year if you are having enough tax withheld from your paycheck so that you do not end up owing a lot of taxes at the end of the year; you can access an online tax calculator to check. If it appears that you may owe taxes at your current level of withholding, you can submit to your employer a new W-4 form and make necessary changes on your form or even ask for an additional amount to be withheld from each paycheck. This can save you lots of grief at tax preparation time.
If you operate a business and have to pay in taxes on your income rather than having them withheld from your paycheck, you may wonder how much you should set aside from each draw in order to guarantee you are covered at tax time. The online tax calculators are perfect for this task. You can estimate your earnings and learn what the approximate amount of your taxes will be. You can then divide by the number of draws you will take within the tax year and place that amount aside into a separate account for paying your taxes when due.
Using an online tax calculator is simple and easy. You will be asked to enter some simple personal information such as whether you are married and filing jointly, married filing separately or single. You’ll be queried about the number of dependents in your household. You simply enter the number of children who are living at home or persons to whom you provide more than 50% of their support such as an elderly parent or disabled adult child. You will be asked to input your estimated taxable income, usually in whole dollars. The online tax calculator will return to you the approximate amount of taxes you will owe at year’s end.
Of course, using a tax calculator is simply a tool for estimation. The only way to be sure that you have calculated the right tax amount is to fill out your tax return at the end of the year, taking any deductions possible if you itemize. A tax calculator doesn’t replace the need for the tax chart or, in many cases the need for a tax preparer or an accountant.
Preparing for your income tax well in advance by using an online tax calculator is a smart move, especially if you think you might owe taxes at the end of the tax year. It is much more comforting to know in advance and plan ahead than to be hit with a large tax bill on April 15th.