When April 15th starts to draw near, taxpayers often begin to worry about income taxes due and receiving tax rebates. The best way to avoid the stress of tax season is to get a head start on your taxes a few months in advance and take advantage of income tax calculators and tax rebate calculators. This will allow you to have an estimated idea of how much you can expect to owe so you are prepared for filing your tax return.
Income Tax Calculator
The income tax calculator calculates the income tax that is withheld from an employee’s pay. In order to use an income tax calculator, it is important to have your most recent pay stubs and income tax return nearby for reference. You should also be sure to fill in all information since the results will only be accurate if you provide the necessary values. You will need to fill out information including general information, dependent credit, income and withholding information, adjustments, and deductions.
For general information, you need to verify the following:
- Your filing status for the next income tax return
- If someone can claim you as a dependent on another tax return
- The total number of jobs you are currently employed with, including military retirement pay and taxable pensions as separate jobs
- If you previously held a job during the taxable year, but do not currently work there
- The number of dependents you will claim on your tax return
- If you will be 65 or older on January 1st of the following year
- If you are blind
For dependent credit, you need to complete the following:
- The number of dependents for the credit
- An estimated work-related dependent care expenses
- The number of eligible children for child tax credit
- A total value of additional tax credits
For income and withholding information, you need to input the following:
- Total wages, salary, and tips you expect to receive in the current year for the job you are currently working
- Your total annual contribution to a tax-deferred retirement plan
- The total federal income tax withheld to date
- The federal income tax withheld from your last paycheck
- How frequently you are paid
- The date closest to when you first held the position
- Total wages, salary, tips, contributions to a tax-deferred retirement program, and total federal income tax withheld for any jobs you held previously in the year
- Total of any earned income you received or expect to receive in the upcoming year
- An estimate of nonwage income you expect to receive in the upcoming year
For adjustments, you need to enter an estimate of your current year’s adjustments to income. Be sure to include alimony, educational loan interest, and any deductible IRA contributions.
For deductions, you need to enter an estimate of the following itemized deductions:
- Medical and dental expenses
- Taxes you paid
- Interest you paid
- Gifts to charity
- Losses to casualty and theft
- Job expenses
- Miscellaneous deductions
Based on the information provided, the income tax calculator will calculate your anticipated income tax for the upcoming year. If you plan on using an income tax calculator to estimate your income tax, be sure to input as much information as you can to guarantee the estimate being as accurate as possible.
Tax Rebate Schedule
The tax rebate schedule is received by taxpayers weekly and is based on two criteria: the last two digits of your social security number and if you are expecting your tax rebate coming to you via direct deposit or mailed to you. Directly deposited tax rebates are deposited within a month of the tax return deadline, and the paper check rebates are sent directly following the deposited rebates. If you are married and filed a joint return, the tax rebate is sent based on the first social security number listed on the tax return.
The Tax Rebate Calculator
The tax rebate calculator estimates the amount of money you and your family will receive in tax rebates. There are two sections to the tax rebate calculator: your personal information and your income.
For personal information, you need to state the following:
- If you are filing a joint return with your spouse
- How many children you have under the age of 17
- If you can be claimed as a dependent on another’s tax return
- If you have a valid Social Security number
For income information, you need to verify the following:
- The total amount of money you earned in the prior year
- Your Social Security or Railroad Retirement Benefits income
- Your Veterans’ Disability, Pension, and Survivor’s Benefits income
- Your Adjusted Gross Income for the prior year
- If you paid more than $1,200 in federal income tax in the prior year
Based on the information provided, the federal tax rebate calculator will calculate the rebate amount you will receive.
Always remember that these calculators are not 100% accurate and the actual number may fluctuate based on any changes to earned income or nonwage income received during the year. The benefit of an income tax calculator is that you can get an estimate of your due taxes so you can set the money aside and avoid unwanted penalties or late fees. The results of these calculators should only be used for planning purposes to prepare you for when it is time to file your taxes.