Federal Income Tax Calculator: Return and Refund Estimator 2023-2024

Editor's Note: Tax returns for 2023 were due by April 15, 2024. For those with a valid extension, the filing deadline is Oct. 15, 2024. If you haven't filed yet and didn't secure an extension in time, filing soon can help you minimize interest and penalties on an outstanding tax bill.

• How this income tax calculator works

• How to fill out this tax calculator

• Tax calculator assumptions and methodology

• Key tax definitions

• FAQs about how taxes work

How this income tax calculator works

To estimate your taxable income, the calculator takes the gross income entered into the “income field” and then subtracts applicable deductions and adjustments, such as 401(k) contributions, HSA contributions, and your standard or itemized deductions. This, among other factors, determines taxable income.

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.

Federal income tax basics

The United States taxes income progressively. Generally speaking, this means that your income is divided into portions called brackets, and each portion is taxed at a specific rate. High earners pay more in taxes, as portions of their income are subject to higher tax rates.

Here are the 2023 tax brackets (taxes filed in 2024):

The calculator also takes into account tax credits, which can further reduce your bill.

If you have a simple tax situation and have filled out your W-4 correctly, taxes already withheld from your paychecks might cover that bill for the year. Likewise, if you’re a freelancer or a taxpayer who must pay estimated taxes, payments you made during the year might also cover your bill.

If it turns out that your tax withholding, payments, or any credits you qualify for did not cover your liability, you may need to pay the rest at tax time. If you’ve paid too much, you’ll get a refund.

The tax calculator’s default assumptions

This refund and return estimator assumes:

• A standard deduction, but you may change to itemized deductions in the “deductions” section.

• Tax credit amounts entered are assumed to be nonrefundable. Although a handful of credits can result in a refund of the overage, we do not account for this in our calculations.

• The rules for whether a traditional IRA contribution is tax-deductible are complex, so this calculator assumes your IRA contributions are not tax-deductible if you already contribute to a 401(k). 

• Numbers entered in the “withheld” field include taxes withheld by your employer and/or any estimated taxes you have paid.

Remember that each person’s tax liability is influenced by their financial situation, as well as a number of other factors that may not be accounted for in this calculator. Quality tax software or a professional, such as a tax preparer or a CPA, can help you answer any questions about your specific tax situation.

Note that this calculator does not take into account state income taxes, another type of income tax you may have to account for when filing your tax return.

How to use this income tax calculator

Here's an overview of how to fill out the fields in our tax calculator:

• Tax filing status: Choose from one of the four tax filing statuses available (single, head of household, married filing separately, or married filing jointly). Your filing status helps to determine which deductions and credits you can claim.

• Income: In this calculator field, enter your total 2023 household income before taxes. Include wages, tips, commission, income earned from interest, dividends, investments, rental income, retirement distributions, unemployment compensation and Social Security benefits.

• Age: Enter the age you were on Jan. 1, 2024. Your age can have an effect on certain tax rules or deductions. For example, people aged 65 or older get a higher standard deduction.

• Dependents: Enter your number of dependents. Dependents can make you eligible for various tax breaks, such as the child tax credit, head of household filing status and other deductions or credits.

• 401(k) contributions: Enter any pre-tax contributions you made to a traditional 401(k) account in 2023. The maximum 401(k) contribution was $22,500 in 2023 ($30,000 for those 50 and older). These contributions may reduce your taxable income.

• Traditional IRA: Enter contributions made to a traditional IRA. The IRA contribution limit in 2023 was $6,500 ($7,500 for those age 50 or older). You could have made a 2023 contribution until the tax filing deadline in 2024. An important note: Contributing to a traditional IRA may not have any immediate tax benefits if your income exceeds a threshold set by the IRS and you or your spouse are also covered by a 401(k).

• Withheld: Enter how much your employer has withheld on your behalf, or how much you have paid in estimated taxes. If you're unsure, estimate. You will still get insights into how much you may owe.

• Deductions: In the upper-right-hand corner of the tool, select either “standard deduction” or “itemized deductions.” Most Americans claim the standard deduction, which we’ve pre-filled. If you’re not one of them, change that number to the sum of your itemized deductions. (But exclude the 401(k) and traditional IRA contributions you previously entered.)

• Tax credits: Enter how much you expect to claim in tax credits on your return. Common tax credits include the child tax credit, the child and dependent care credit, the earned income credit, the EV credit, and the American opportunity credit.

• Other deductions and deferrals: In this field, enter any other contributions made throughout the year not accounted for elsewhere. In this section, you can also check whether you are legally blind — and if filing jointly, you can enter your spouse’s age if 65 or older as well as if they are legally blind. This can increase the standard deduction amount you’re entitled to.

Frequently asked questions

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

Deciding how to take your deductions — that is, how much to subtract from your adjusted gross income, thus reducing your taxable income — can make a huge difference in your tax bill. But making that decision isn’t always easy.

The standard deduction is a flat reduction in your adjusted gross income. The amount is determined by Congress and meant to keep up with inflation. Nearly 90% of filers take it because it makes the tax-prep process quick and easy^[0]

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. This means effort, but it might also mean savings.

How do deductions and credits work?

Both reduce your tax bill but in different ways. Tax credits directly reduce the amount of tax you owe, dollar for dollar. A tax credit valued at $1,000, for instance, lowers your tax bill by $1,000.

Tax deductions, on the other hand, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. For example, if you fall into the 25% tax bracket, a $1,000 deduction saves you $250.

» Learn more: Popular tax deductions and credits

I might get a big tax refund! Awesome, right?

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.

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.

Other tax calculators and resources