Our tax return calculator is designed to set you up for success; so that you know what to expect and how to structure your finances to make the most of your refund or plan for an upcoming tax payment.
Income taxes are taxes that are imposed on income generated by individuals and businesses by the government. The United States tax system requires taxpayers to file their taxes on an annual basis in order to determine the correct tax obligation for that period.
Selecting the correct filing status when completing your income tax return can be the first important step when properly reporting your tax return. This selection can impact the tax benefits you receive, the amount of your standard deduction, and ultimately the amount of taxes you pay. To help guide you in the right direction, find each of the IRS filing statuses below along with relevant descriptions and requirements.
Single: This filing status is used by a taxpayer who is unmarried and does not qualify for any other filing status. Single filers include, according to the Internal Revenue Service (IRS), people who on the last day of the year are unmarried or are legally separated from a spouse under a divorce or separate maintenance decree and do not qualify for another filing status.
Married filing jointly: When filing as married filing jointly, both spouses are equally responsible for the return and the taxes. If either one of the spouses understates the tax due, both are equally liable for the penalties unless the other spouse claims he or she was not aware of the mistake and did not benefit from it.When filing a tax return as married filing jointly, a married couple uses the same tax return to report income, deductions, credits and exemptions.When filing as married filing jointly, your total combined tax liability is often lower than the sum of spouses' individual tax liabilities, if they were filing separately. This is because of the increased standard deduction allotted to them, in addition to other tax benefits exclusive to this filing status. You can use the married filing jointly filing status if both of the following statements are true:1. You were married on the last day of the tax year. If you were unmarried, divorced, or legally separated (according to state law) on Dec. 31, then you are considered unmarried for the year. There is an exception to this rule for the death of a spouse.2. You and your spouse both agree to file a joint tax return.In addition, if you were not divorced or legally separated on Dec. 31, you are considered unmarried if all of the following apply:1. You lived apart from your spouse for the last six months of the tax year. (not including temporary absences like business, medical care, school, or military service).2. You file a separate tax return from your spouse.3. You paid over half the cost of keeping up your home during the tax year.4. Your home was the main home of your child, stepchild, or foster child for more than half of the tax year.
Married filing separately: Married filing separately enables a separation of tax liability from your spouse. This filing status may be wise if one spouse suspects the other may be hiding income. Filing as Married filing separately may also be beneficial if both spouses have similar income levels and their combined reported results in entering a higher tax bracket. Likewise, if one spouse has significant itemized deductions that could put them in a lower tax bracket, filing separately may make sense.Note however, that filing separately will usually disqualify you from valuable tax breaks such as: The child and dependent care credit, hope and lifetime learning credits, and adoption expense credit, as well as deductions for your contributions to a Traditional IRA.
Head of household: While many single people live alone and would therefore consider themselves the head of their own household, the IRS distinguishes between a single filer and a person considered the head of a household. Head of Household status generally only applies to an unmarried person who, for the given tax year has paid more than half of the cost of maintaining a home for themselves and a qualifying person, such as a dependent.Generally speaking, the qualifying person whom a head of household lives with must be their child, parent or another type of relative. The person may be a domestic partner, as long at that partner does not earn any income, thereby making them considered a dependent.
Surviving Spouse: For up to two years after the death of a spouse, the widow(er) may continue to use the married filing jointly tax rate by filing as a qualified widow(er) with a dependent child, as long as the taxpayer hasn’t remarried.
Choices!: This should give you a better understanding of the different filing statuses and how they function based on the rules of the IRS. Take the time to weigh your options and see which status would work for you, or benefit you most this tax season. For any further inquiries please contact us via the help chat on the bottom right corner of the Taxfyle website.
The tax deadline for individuals will be April 15th, 2022. If you still haven't filed your 2020 taxes and you've filed an extension, your deadline is October 15, 2021.
Currently, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have income taxes.
Tax season can be something you look forward to if you receive a refund. A lot of taxpayers use their refunds to pay down debts, catch up on bills, go on vacations, cover necessities for the family, or splurge on luxuries. However, knowing just how excited you should be can be hard to predict if you don't know what to expect. Wondering what your tax refund is going to be this year? The Taxfyle calculator can help you estimate your refund. Check out these tips.
How to Use the Taxfyle Income Tax Return Calculator
Using the Taxfyle calculator is simple, and you can choose between the simple calculator or the advanced tool. If you have income from an employer and don't itemize, the simple calculator is perfect, but if you plan to itemize, have self-employment income, or want to claim dependents, you should use the advanced calculator. Here are the steps:Choose your filing status. Single people usually file single, unless they have children in which case you may qualify for head of household. Married couples can choose between married filing jointly (the most advantageous choice for most couples) or married filing separately.
After losing a spouse, you can file as a qualifying widow(er) for two tax years, as long as you have dependent children and haven't remarried.Enter your income.Note any income tax withheld from your income by your employer.Review your refund estimate.If you want a more accurate estimate of your tax refund, use the Taxfyle advanced tax refund calculator. This calculator uses the same steps, but you also get to note your dependents.
Additionally, while the simple calculator only works with employment income, the advanced tool can handle self employment and unemployment income. If you are thinking about itemizing, the advanced calculator is the way to go so that you can note itemizable deductions such as mortgage interest, charitable deductions, etc.
What You Need When You Use Taxfyle's Advanced Refund Calculator
To make your refund estimate as straightforward as possible, you may want to gather a few details before you start. For the simple calculator, you just need your w-2s (and your spouse's W-2s if you are married).
If you want to use the advanced refund calculator, you need the following in addition to the W-2s: Your self-employment income, which consists of your business revenue and any earnings reported on a 1099-MISC minus expensesThe total of your quarterly tax paymentsAny unemployment income you receivedAmount you paid for mortgage interestCharitable contribution amountsMedical bills paid during the tax yearHow much you spent on childcareStudent loan interest paidHow to
Estimate Your Refund on Your Own
Using a tax refund calculator is the easiest way to get an estimate on your tax refund, but you can also do an estimate by hand. Figure out your filing status and find the deduction linked to that status. For instance, if you are married filing jointly, your standard deduction for 2018 is $24,000.Subtract your applicable standard deduction amount from your income and use the IRS's income tax brackets to find your potential tax rate. If your taxable income is up to $19,050 for a couple, your tax rate is 10%.
To explain, imagine you and your spouse earned $40,000 last year. After subtracting your standard deduction, you have $16,000 left. When you multiply that by 10%, you get your tax bill of $1,600. Now, look at your W-2s and any estimated payments if applicable — any income tax you paid over that amount, you get back as a refund. That said, the IRS takes into account a number of other details as well so using the calculator to double check your work is always helpful.