Wouldn’t it be nice to have an estimate of how much money you will owe in taxes before you complete your tax return?
Determining the amount of tax that you will owe involves many factor. The following is a list of a few factors that may change your tax return:
Filing status (single, married filing jointly, married filing separately)
Number of dependents
Income level (Tax bracket)
Deductions (Education tuition and fees, etc.)
Credits (1st time home buyers credit, Earned income credit)
Since President Obama has implemented several stimulus packages, there are many more deductions and exemptions available for taxpayers.
Stimulus packages offer more credits and deductions you can file for and in some cases it also has increased the dollar amount of several credits and deductions to help taxpayers owe less in taxes or receive more of a refund.
There are several online services available to help you calculate an estimate of your tax owed or refund amount. These services are easy to use and can help you plan ahead. Online tax calculators ask a series of questions that can mostly be answered by a click of a button and will estimate your taxes per your individual tax situation. It also includes additional deductions and exemptions that are now available.
Online services are extremely helpful when the service guarantees you the biggest refund possible or guarantees to reduce your tax liability by maximizing your deductions. You will also receive a 100% accurate tax return; this reduces your risk of being audited by the IRS.
Visit TurboTax Online to receive answers to all your tax-related questions and to try a free online tax calculator.
Self employment taxes are comprised of two parts: Social Security and Medicare. For 2010, you and your employer each pay Social Security taxes of 6.2 percent on the first $106,800 of your covered wages. You each also pay Medicare taxes of 1.45 percent on all your wages