Tax Estimator to Calculate Your 2014 Tax Refund

Interest Income–Most interest will be taxed as ordinary income, including interest earned on checking and savings accounts, CDs, and income tax refunds. However, there are certain exceptions, such as municipal bond interest and private-activity bonds. Learn everything you need to know about how filing status impacts your tax return and refund.

The maximum credit is paid until earnings reach a specified level, after which it declines with each additional dollar of income until no credit is available. Families with children receive a much larger credit than those without qualifying children. Most people that choose to itemize do so because the total of their itemized deductions is greater than the standard deduction; the higher the deduction, the lower the taxes paid. However, this is generally more tedious and requires saving a lot of receipts. Instead of painstakingly itemizing many of the possible deductions listed above, there is an option for all taxpayers to choose the standard deduction – which the majority of the population opts to do.

For tax purposes, your adjusted gross income or AGI is essentially your total or gross income minus eligible deductions. You can use our AGI calculator to estimate your adjusted gross income using the most common income and deductions for US taxpayers. Then, we apply the appropriate tax bracket and rate(s) based on taxable income and filing status to calculate what amount in taxes the government expects you to pay. Many states, as well as some cities and counties, have their own income taxes. States that have a state income tax require that you file a separate state tax return, as they have their own rules.

  1. For many, this is the amount withheld from their paychecks by an employer.
  2. Once you have calculated adjusted gross income, you can subtract any deductions for which you qualify (either itemized or standard) to arrive at taxable income.
  3. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.
  4. The United States Annual Tax Calculator for 2014 can be used within the content as you see it, alternatively, you can use the full page view.
  5. The annual standard deduction is a static amount determined by Congress.

We’ll calculate the difference on what you owe and what you’ve paid. If you’ve already paid more than what you will owe in taxes, you’ll likely receive a refund. This offer is for TaxAct’s consumer federal, online 1040 returns and is subject to specific terms and conditions. The value of your gift card is dependent on the offer available at the time you make the referral. Don’t get too excited— this could be a sign that you’re having too much tax withheld from your paycheck and living on less of your earnings all year. You can use Form W-4 to reduce your withholding easily now so you don’t have to wait for the government to give you your money back later.

Based on the rates in the table above, a single filer with an income of $50,000 would have a top marginal tax rate of 22%. The rate on the first $11,000 of taxable income would be 10%, then 12% on the next $33,725, then 22% on the final $5,275 falling in the third bracket. This is because marginal tax rates only apply to income that falls within that specific bracket. Based on these rates, this hypothetical $50,000 earner owes $6,307.50, which is an effective tax rate of about 12.7%. When you file your tax return, if the amount of taxes you owe (your tax liability) is less than the amount that was withheld from your paycheck during the course of the year, you will receive a refund for the difference.

The child tax credit starts to phase out once the income reaches $200,000 ($400,000 for joint filers). To visualize the difference between standard and itemized deductions, take the example of a restaurant with two options for a meal. The first is the a la carte, which is similar to an itemized deduction, and allows the consolidation of a number of items, culminating in a final price. The second option is the standard fixed-price dinner, which is similar to the standard deduction in that most items are already preselected for convenience. Although it isn’t as simple as it is portrayed here, this is a general comparison of itemized and standard deductions.

If you’re curious about a particular state’s tax system and rules, visit one of our state tax pages. To calculate taxable income, you begin by making certain adjustments from gross income to arrive at adjusted gross income (AGI). Once you have calculated adjusted gross income, you can subtract https://turbo-tax.org/ any deductions for which you qualify (either itemized or standard) to arrive at taxable income. Income taxes in the U.S. are calculated based on tax rates that range from 10% to 37%. Taxpayers can lower their tax burden and the amount of taxes they owe by claiming deductions and credits.

On the other hand, refundable tax credit amounts give taxpayers entitlement to the full amount, whether their tax liability drops below $0 or not. Refundable tax credits are less common than non-refundable tax credits. They help lower tax bills by reducing the percentage of adjusted gross income that is subject to taxes. There are two types of deductions, above-the-line (ATL) and below-the-line (BTL) itemized deductions, which reduce tax based on the marginal tax rate. The “line” in question is the adjusted gross income (AGI) of the taxpayer and is the bottom number on the front of Form 1040. Our free income tax calculator will help you estimate how much you might expect to either owe in federal taxes or receive as a refund when filing your 2023 tax return in 2024.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. State Tax Tables are updated annually by the each States Tax Administration Office. Below are the latest State tax tables which are integrated into the United States Tax and Salary Calculators on iCalculator. Below are the tax tables which are integrated into the United States Tax and Salary Calculators on iCalculator.

How this income tax calculator works

We just updated the 2014 tax calculator with the current tax brackets, credits, deductions, and everything else you’ll need to estimate your tax refund before the tax deadline. The calculated tax is an estimate and should be used as a guide. Actual tax liabilities may vary depending on various factors, including specific deductions, credits, and other individual circumstances not accounted for in this basic calculator. The purpose of tax deductions is to decrease your taxable income, which then decreases the amount of taxes you need to pay to the federal government.

Tax Calculator Inputs

Examples of some common tax credits are separated into the four categories below. People who itemize tend to do so because their deductions add up to more than the standard deduction, saving them money. The IRS allows you to deduct a litany of expenses from your income, but record-keeping is key — you need to be able to prove, usually with receipts, that the expenses you’re deducting are valid.

US Tax Guides

To help you reduce your taxable income, we aggregated a huge list of deductions many people often overlook or aren’t sure how to use them to their advantage. Unlike adjustments and deductions, which apply to your income, tax credits apply to your tax liability, which means the amount of tax that you owe. This is different than your total income, otherwise known as gross income.

When should I itemize deductions vs. taking the standard deduction?

For example, the IRS may offer a short-term extension or temporarily delay collection. You may also have the option to pay your remaining bill over multiple installments. You will likely still pay any interest charges on overdue balances, but in some cases, the IRS may even waive penalties or fees. Again, you should call the agency at the number above to discuss your options.

Tax Withholding Estimator: Calculating Taxable Income Using Exemptions and Deductions

On this page we provide a comprehensive overview of how to use the calculator to estimate your income tax due based on your taxable income in New York in line with the 2014 Tax Tables published by the New York Government. On this page we provide a comprehensive overview of how to use the calculator to estimate your income tax due based on your taxable income in Texas in line with the 2014 Tax Tables published by the Texas Government. On this page we provide a comprehensive overview of how to use the calculator to estimate your income tax due based on your taxable income in California in line with the 2014 Tax Tables published by the California Government. On this page we provide a comprehensive overview of how to use the calculator to estimate your income tax due based on your taxable income in Illinois in line with the 2014 Tax Tables published by the Illinois Government. Saver’s Credit–Non-refundable credit incentivizes low and moderate-income taxpayers to make retirement contributions to qualified retirement accounts. 50%, 30%, or 10% of retirement account contributions up to $2,000 ($4,000 if married filing jointly) can be credited, depending on adjusted gross income.

Taxable income is always lower than gross income since the U.S. allows taxpayers to deduct certain income from their gross income to determine taxable income. The federal personal income tax that is administered by the Internal Revenue Service (IRS) is the largest source of revenue for the U.S. federal government. Nearly all working Americans are required to file a tax return with 2014 tax calculator the IRS each year. In addition to this, most people pay taxes throughout the year in the form of payroll taxes that are withheld from their paychecks. 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.


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