Federal Income Tax Calculator 2020
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How we got here?
Estimating a tax bill starts with estimating taxable income. In a nutshell, to estimate taxable income, we take gross income and subtract tax deductions. What’s left is taxable income. Then we apply the appropriate tax bracket (based on income and filing status) to calculate tax liability. Tax credits and taxes already withheld from your paychecks might cover that bill for the year. If not, you may need to pay the rest at tax time. If you’ve paid too much, you’ll get a tax refund.
What tax bracket am I in?
The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates.Here are the current tax brackets.
Woo hoo! I might get a big tax refund!
Don’t get too excited; this could be a sign that you’re having too much tax withheld from your paycheck and needlessly living on less of your earnings all year. You can use Form W-4 to reduce your withholding easily right now so you don’t have to wait for the government to give you your money back later.
Oh no! I can’t pay this estimated tax bill! What do I do?
You can sign up for a payment plan on the IRS website. There are several to choose from, and they can provide peace of mind. Here’s how IRS installment plans work, plus some other options for paying a big tax bill.
I need help with a weird tax situation. Where can I go?
We have you covered. These NerdWallet articles can point you toward: