A tax estimator comes in handy when you’re not sure how to calculate your taxes. This tax-calculating tool is easily accessible online for free from different web sources. You just need to fill out the necessary information on the online form, and you’ll find out what to expect in taxes owed. But, there’s more to it than just knowing the figures for your taxes. Below, we’ll answer some of the frequently asked questions about the taxes calculator.
Taxes Estimator | What You Need to Know
What Is a Taxes Estimator?
Basically, a taxes estimator does the job of calculating different types of taxes, such as withholding, tax for businesses, and earned income tax. You may be filling out your tax information such as filing status, income, deductions, and dependents, so the taxes estimator can use that information. The information will depend on what type of tax you want to calculate or estimate.
Why Do You Need a Tax Estimator?
Using a taxes estimator has a few calculation benefits. First, the tax-calculating tool is updated with the changes in tax policies, like rates, which saves you from the hassle of searching for the current tax rates. Aside from that, the tool also saves you from hiring an accountant to check and estimate your taxes. It helps you analyze your paycheck as well and aid you in planning your tax management for next year.
What Should You Look for in a Tax Estimator?
Although there are many tax calculators out there, you’ll have to use each of them differently. To know which of these tax calculators are best, you need to check if its calculations are accurate, whether it’s user-friendly, and whether or not it’s free. Finding the right calculator may be a little challenging, but it’s best to look for other options to know which one will suit your calculating needs best.
What Are the Recommended Tax Estimators?
The following list of tax calculators is chosen based on calculation accuracy, user-friendliness, and free usage. Most of them are from the IRS.
This tax calculator is from PaycheckCity.com. It highlights its key feature of calculating withholding tax. The tool makes sure your net pay and withholding tax are accurate. You can also use this calculator to verify your paycheck calculations.
Online EIN is a tax calculator from IRS. This is a tax-calculating tool for the business sector, including employers, corporations, sole proprietors, and partnerships. Your EIN helps the IRS determine those who are required to file for business tax returns.
This is another tax estimator from IRS. It aims to calculate tax withheld from your paycheck, ensuring you don’t have too much or too little. Most people find this tool easier and more accurate than the worksheets that come along with the Form W-4. But, this is not a replacement for that form. You can use the tool’s results for completing the Form W-4 that you’ll submit to your employer.
Earned Income Credit Assistant
The Earned Income Credit Assistant is also from IRS. This focuses on the eligibility for an earned income tax credit. The eligibility is determined based on factors like the number of qualifying children, income level, and filing status. Your estimated credit amount is also distinguished using this estimator.
This IRS taxes estimator helps taxpayers identify if they are subject to alternative minimum tax. The tool automates the AMT Worksheet of the 1040 Instructions. The IRS believes this application can help taxpayers get answers regarding alternative minimum tax in a few minutes.
Watch this video about how you can use the IRS Withholding Calculator easily from IRSvideos:
A taxes estimator, indeed, helps you in a lot of ways concerning tax-related calculations. The tool primarily makes your tax life easier. You only have to choose the one that’s accurate, user-friendly, and free, so calculating taxes will not be a stressful task anymore. Pick a taxes estimator now and know your tax liabilities in a few minutes!
What other tax calculator application can you share with us? Leave them in the comments section.