Simple Federal Tax Calculator

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Lower adjusted gross income by maxing out contributions to retirement accounts such as 401, IRA, or a health savings account. Due to the complexity of income tax calculations, our Income Tax Calculator only includes input fields for certain tax credits for the sake of simplicity. However, it is possible to enter these manually in the “Other” field. Just be sure to arrive at correct figures for each tax credit using IRS rules. Also, the following descriptions are basic summaries. Please consult the official IRS website for more detailed information regarding precise calculations of tax credits.


Once you see the value that meets your planning expectations, click below and Create the W-4 for this job. Then monitor your next paycheck and make the necessary adjustment here via the PAYucator; or use any of the other W-4 planning tools. Once you see the value that meets your planning expectations, click below and create the W-4 for this job.

How Your Paycheck Works: Pay Frequency

FICA stands for the How To Estimate Federal Withholding Insurance Contributions Act. Your FICA taxes are your contribution to the Social Security and Medicare programs that you’ll have access to when you’re a senior. Once you have subtracted deductions from your adjusted gross income, you have your taxable income. If your taxable income is zero, that means you do not owe any income tax. Use this calculator to help you determine the impact of changing your payroll deductions. You can enter your current payroll information and deductions, and then compare them to your proposed deductions.

Is It Better to Withhold More or Less Taxes?

If you want to avoid paying taxes as part of your tax return, it is better to withhold more taxes. However, there is a lost opportunity when withholding more than you need. By overpaying taxes in advance of when they are due, you lose the opportunity to invest those funds and potentially grow your capital.

Single Use this status if you don’t qualify for any other filing status. Generally, If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. (The taxpayer’s dependent parent does not have to live with the taxpayer but can still qualify provided you pay over half of the cost of keeping up the parent’s home.). You can also choose this status if you are married, but didn’t live with your spouse at any time during the last six months of the year. Married Filing Separately If you are married, you have the choice to file separate returns.

Calculate your income tax bracket

Simply select your tax filing status and enter a few other details to estimate your total taxes. Based on your projected tax withholding for the year, we then show you your refund or the amount you may owe the IRS next April. What is important is that you achieve your tax return goals; keep more of your money per paycheck and not owe taxes on your next tax return.

  • The additional tax is 0.9% of the gross pay based on the employee’s W-4 status.
  • If you get a larger refund or smaller tax due from another tax preparer, we’ll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid.
  • You are responsible for paying any additional tax liability you may owe.
  • Instead of reducing taxable wages like deductions, dependents reduce the actual tax owed.

The recommendations in this tool are designed to correct your withholding for the rest of this year based on whether you have had too much or too little federal income tax withheld to date. These adjustments are usually appropriate for a full year , so you should use this estimator again at the beginning of next year to determine the appropriate full year amount. Life events such as marriage, divorce, having a baby, or getting a promotion or bonus can have a big impact on your taxes.


Passive income generally comes from two places, rental properties or businesses that don’t require material participation. Any excessive passive income loss can be accrued until used or deducted in the year the taxpayer disposes of the passive activity in a taxable transaction. Did you know that you may not pay the same tax rate on all your income? The higher rates only apply to the upper portions of your income. In our previous example, our employee had no dependents, so our FIT calculation of $390.39 for that paycheck is accurate. If Step 2 box is unchecked and any other filing status, deduct $8,600.

  • This overtime of $54 is added to her regular hourly pay of $480 (40 hours x $12), for a total of $534.
  • Check this box if you or your spouse will be at least 19, or 24 years old or older if a full- time student, at the end of the year.
  • P1 – If your filing status is Married Filing Joint, change it to Single or Head of Household.
  • Thenadd the two togetherto get your total household tax withholding.
  • The new version also includes a five-step process for indicating additional income, entering dollar amounts, claiming dependents and entering personal information.
  • But it could be a good idea to check it anyway because the new form should help you get your tax withholding closer to where it needs to be.

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