The Internal Revenue Service and other websites provide a free tax calculator or two, and other tax tools to help you analyze your paycheck, plan for the next tax year or prepare your 2012 tax return. These online calculators help take the anxiety out of routine calculations for various items. These tools make the process of making certain calculations and filing simple tax return less confusing.
Here are five of the most popular free online tax calculators for simple returns, which are accurate and easy to use.
This free calculator ensures that you keep more of your money in your pocket during the tax year and not have to reclaim it on your tax return by having too much income taxable trail from your pay. The withholding calculator does not replace form W-4.
However, many people will find that it’s easier and more accurate to use in the worksheet that typically accompanies form W-4. You can also use the results of this calculator to help you compete in new form W-4, which you can submit to your employer.
Earned income credit assistant
Households can use this calculator to determine your filing status and if they are eligible for the Earned Income Tax Credit (EIC). Ultimately, whether or not you qualify for EIC depends on your filing status, income level and number of qualifying children if you have any. The Earned Income Credit Assistant provides an estimate of the EIC amount that you qualify to receive.
This tool helps taxpayers determine if they must pay the Alternative Minimum Tax (AMT). It automates the AMT Worksheet contained in the 1040 Instructions– “Worksheet to See if You Should Fill in Form 6251.” According to the IRS, taxpayers should be able to make entries and receive and to the AMT Assistant and receive an answer in 5 to 10 min.
Tax refund calculator
If you want to find out how much of a tax refund you’ll be getting back from the IRS or how much you’ll need to send, use the Taxbrain refund calculator. You will need to enter the same information as you would on your tax return. This includes filing status, number of exemptions, information on your children, earned income credit data, income and other information obtain your results.
IRA retirement calculator
The Turbo Tax retirement calculator provides a tool to help you determine the effects of an Individual Retirement Account (IRA) contribution on your income. You can still reduce your taxes for the 2012 tax year because the Internal Revenue tax codes allows you until April 15, 2013 to make a contribution to your traditional IRA or Roth IRA.