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How to Use Our Income Tax Calculator

3 min read

How to Use Our Income Tax Calculator

Tax season does not have to be a mystery. Our Income Tax Calculator estimates your federal income tax so you know what to expect before you file.

Entering Your Information

  • Filing Status -- Choose single, married filing jointly, married filing separately, or head of household. This determines your standard deduction and bracket thresholds.
  • Annual Income -- Your total gross income from all sources: salary, freelance income, investment income, and any other earnings.
  • Deductions -- Choose between the standard deduction or enter your itemized deduction total if it exceeds the standard amount. For 2024, the standard deduction is $14,600 (single) or $29,200 (married filing jointly).
  • Tax Credits -- Enter any tax credits you qualify for, such as the child tax credit, education credits, or earned income credit. Credits reduce your tax dollar-for-dollar, making them more valuable than deductions.

Understanding Your Results

Taxable Income -- Your gross income minus deductions. This is the amount that actually gets taxed.

Total Federal Tax -- Your estimated federal income tax liability based on the progressive bracket system.

Effective Tax Rate -- Your total tax divided by your total income. This is always lower than your marginal rate because only the income within each bracket is taxed at that bracket's rate.

Marginal Tax Rate -- The rate applied to your last dollar of income. This is the rate most people mistakenly think applies to all their income.

Planning Ahead

Use this calculator to check whether your paycheck withholding is on track. If the calculator shows a significantly different liability than what is being withheld, adjust your W-4 to avoid a large bill or an unnecessarily large refund.

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