Calculating the amount of federal income taxes you'll owe on earned income every year is something of a chore. In order to make the deadline, plenty of Americans scramble around, scrounging through their papers and files to locate their most recent pay stubs and last year's income tax return. Even when all of your information is filed in order, you'll need to know your tax bracket, what income counts as "earned" income, and what money you've made or spent is considered tax deductible.

Get Your Papers Together

You'll need to have a few materials ready in order to calculate taxes on your earned income. Several of your most recent pay stubs will list most of the information you'll need. If you work part-time, or "under the table," make sure that you have included any stubs, receipts or invoices pertaining to your work. Your most recent income tax return will be extremely helpful. If you need to estimate values, do it to the best of your ability--don't use numbers that are extremely rounded, as these will affect your calculations one way or another.

Determine Your Status

Your filing status figures heavily into the amount of income taxes you'll owe and the amount of rebate you may receive. If you are single, of course, determining your status is rather simple. However, you will need to know whether you and your spouse have filed for joint or separate status in the house. Newly married couples must register as well. If you are filing as the "head of household," your rates will vary from the three aforementioned circumstances. Obtain Form 1040 for your federal income taxes, and any forms your locality and state may require for income taxation--once you've got your pay stubs together and have determined your status, you'll be able to fill out this paperwork with ease.

Income Tax Calculators

An easy, math-free way to calculate your income taxes is to use one of the many income tax calculators offered for free online. The best calculators to use are the ones on official government websites; however, other income tax calculators can also provide accurate estimates as long as you provide them with accurate information. If you are only approximating your withholding, or would like to change your withholding due to new legal status, these calculators can provide you with the amounts you can expect to pay in a variety of situations, which will allow you to better prepare your 1040 form. A 1040 estimator will explain how much of a rebate you will receive, how much of the tax you owe will be outstanding, and what final tax bracket you end up in.

Source:

Save Wealth.com

Dinky Town

IRS.gov