A tax calculator can be used to compute for the correct tax payment that you are due to pay on a given period of time. Taxes are withheld and deducted from your salary. Sometimes the IRS or Internal Revenue Service deducts the wrong amount of taxes. If this is so, you can have a refund of the excess amount deducted from your salary. You will need a tax calculator to know the right amount that should have been deducted from you. The tax calculator can be used online in the IRS website and other independent websites. It is very easy and convenient to use. All you have to do is to fill out the online forms and supply the correct information. The result would the correct amount of withholding tax for the given period of time. This article will show you how to use a tax calculator from an independent website. Read on.
- Open kiplinger.com. It is a website that is not affiliated with the IRS but you can nonetheless make use of this website’s calculator. On the home page, click the Tools/Calculators tab on the upper left corner of the home page. Scroll down the window and under Taxes; click Easy-to-use Tax Withholding Calculator.
- Start with Step 1. A new window will appear and you can start supplying the information needed to calculate your withholding tax. You will start by ticking your filing status. Choose the option that applies to you; if you are single, married and filing jointly, married and filing separately or head of household. Choose one and click Submit.
- Enter your taxable income for the previous year. If you are not sure of the exact income that you had for the previous year, you can consult your papers. Enter the correct amount and click Submit. The next question is how much your tax refund for the previous year was. Click Submit.
- After you have entered the necessary information, your result will come out. You will know how many extra withholding allowances you deserve, and how much your monthly take home pay will increase when you claim the extra withholding allowances allotted to you.
- If you have any changes in your income or an addition to your family, the calculator will find it more difficult to compute for your withholding taxes. The tax calculator assumes that your situation is the same as in the previous year. If there are any changes, you can adjust your withholding by clicking on the link below the result page.
Remember that the information that you supply in the forms, either in
the IRS website or in the independent ones is confidential. It will not
be shared with anybody without your permission. You do not have to worry
about your tax and income information being leaked to others. It is
important to keep all paperwork regarding your taxes so that you will
have a reference when the time comes that you need to review your
previous withheld taxes. Calculate your withholding taxes as often as
you can, if possible every tax schedule so you will be up to date.