Taxes, Lawyers, Business & Debt
Tax Return Calculators
As far as taxes are concerned, most of us aren't knowledgeable about our withholdings, or if we should be paying an estimated tax, or if they qualify for an earned income credit (EIC). There are many useful tax return calculators online, and finding them is as easy as an Internet search or visiting the IRS website. These tax return calculators will help you determine whether you're getting your fair share back from the government. Here are some of the tax calculators available:
The withholding calculator- it's easier to use this than to use the worksheet that accompanies the W4 you fill out at your job. With a withholding calculator, you can be sure that you aren't withholding too little or too much, and if you want to change the amount of your deduction, you can file another W4. A new form can be filed when you buy or sell a home, get a raise, or if a child leaves the home after high school, or if you have another child.
The EIC (earned income credit) calculator is there to help you figure out if you're eligible to claim the earned income credit at tax filing time. Your eligibility for the EIC will depend on your filing status (married, single, head of household), your number of dependents and your income. The EIC calculator won't only help you determine eligibility, it will provide an estimate of how much you get. Some taxpayers may be bound by the AMT (alternative minimum tax) and the calculator can help you determine if you are one of them. By using this particular calculator, you can get your answer within five or ten minutes, and then you will know if you should include form 6251 with your tax return.
The paycheck calculator is another type of useful tax calculator. No one is perfect, and sometimes the payroll department makes mistakes. This calculator can help you verify whether the deductions on your check are accurate, and it can also provide you with a rough estimate of your "take home" pay with the start of a job. All of the above tax calculators are just tools, and they are not meant to replace the advice of an accountant or tax lawyer. Understanding the revenue service and the tax codes is a never-ending learning process, and the rules change with every year. To make sure you're working within the rules, be sure that you're prepared and organized the next time tax season comes around.