Tax season is upon us, and all across the country, people are scrambling to get their tax paperwork and receipts together. The 1040 Tax Calculator takes details such as filing status, income, deductions and credits and uses the information to calculate your total taxes for this year. Based on your projected withholdings for the year, the calculator can also estimate your tax refund or the amount of additional tax that you may need to pay to the IRS on April 15. The 1040 Tax Calculator uses the current tax tables, but it is important to remember that these are subject to modifications by the IRS and changes in the tax code.
1040 Tax Calculator
Why Use The 1040 Tax Calculator?
Filling out a Form 1040 is certainly not the most thrilling experience in the world – but the thought of a potential tax refund is a tantalising motivator! A check could be arriving in the mail or a lump sum electronically deposited into your bank account at any given moment after you send away the form. To some, tax refunds can offer some much needed, and often unexpected, financial relief. If you are particularly lucky, a refund could result in you finally taking that trip you have been promising yourself, or making a large purchase you could not otherwise afford.
It certainly pays to be as well-informed as possible when it comes to your income and outgoings, which is why the 1040 Tax Calculator is so useful. Although it is nice to get a pleasant surprise, knowing where you stand in advance will enable you to plan effectively. Remember it is always possible that you have underpaid tax, rather than overpaying – and in these cases the money owed will need to be paid. That would be a much less welcome surprise, and knowing in advance will enable you to be prepared.
How To Use The 1040 Tax Calculator
The 1040 Tax Calculator and the Form 1040 can look a little daunting at first. Here is the fastest way to get the job done, based on our experience:
- First of all, collect together all of your financial paperwork for the past year – having everything in one place will enable you to complete the task much more efficiently
- Print out a Form 1040. Or, if you prefer, you can complete it on your computer by clicking and typing into the boxes – we recommend this method as it makes it much easier to rectify any mistakes
- As you complete your Form 1040, input the same information into the calculator as well – you will notice that the calculator follows a near-identical format to the Form 1040
- Once you have completed and double-checked all of the fields on both the form and the 1040 Tax Calculator, click ‘View Report’ to see a breakdown of your tax for the year – several weeks sooner than you would have received the information from the IRS!
Who is this Calculator for?
The 1040 Tax Calculator is most useful if you:
- Would like to know whether you have over/underpaid tax this financial year
- Want an immediate answer, rather than waiting for the IRS to reply
- Are about to start, or are in the process of completing, your 1040 Form.
Who has to complete Form 1040?
Anybody who, for tax purposes, is a United States resident – including those who are classified as a ‘resident alien’ – must complete the Form 1040 and submit it by April 15. If this date falls on a weekend or public holiday, it is pushed back until the next working day.
I’m due to receive a big refund on the way and want to put it towards buying a property – what should I do next?
If you are considering buying a property, then using your tax refund to boost your deposit could be a very wise investment. Naturally, you will still require a mortgage for this – click the orange Get FREE Quote button above to enter your requirements and we will put you in touch with the relevant providers. This service is free and at couldn’t be simpler, try it today and see for yourself!