You must have definitely gone through the title on the tax calculator and you must be wondering what this tax calculator is? Is it like the calculator where you can do additions and subtractions? Well, that is not the case. It is sort of like an automatic calculator where you will have to fill in the details related to your tax & it will calculate your tax liability and tax refund estimate.
Taxfyle’s tax calculator is amazing. This calculator can help you to be financially successful like in managing your finances well. It is very good for all kinds of people who want to know about their tax liability. But it is the best one for businessmen and sole proprietors and independent contractors.
Determines Your AGI
Those are the people who will always have trouble calculating their taxes and the accuracy of it. Now, let me tell you how do this works? The income tax calculator is designed to estimate your tax refund and tax liability. The factors on which it is based are your filing status, income, and withholding. These 3 information are very pivotal in any tax calculator.
You can use the simple version of the tax calculator in which all of this information will be asked. Plus, you can also use the latest version in which extra questions will be asked like that of no. of dependents, other forms of income, deductions, and estimated payments. They will take this information to calculate your adjusted gross income i.e. AGI.
After the tax return calculator has determined your AGI, it will then find the applicable tax rate and apply it to your income to determine tax liability. In the case, if you have overpaid the taxes, then it will estimate your tax refund. And if you have under paid then it will show tax liability. So, it is as simple as that.
Perfect Calculator for Tax
Don’t doubt on its accuracy or perfectness. It is because it is absolutely perfect. The only thing which you are supposed to do in this tax calculator is to enter all the numbers and details appropriately. If you enter the wrong details then it will show a wrong tax estimate. You have to be also very careful when filing your status.
It is because a lot of things depend on status. Only through your status, the income tax calculator will be able to calculate the tax rate and standard deductions. So, you know now status has to be appropriate. If you are single, then opt single. If you are a widower, opt for a widower. And also discuss with your spouse before choosing a status.
This income tax calculator is a free tool. So, you can use both versions, simple as well as the advanced version. The only difference is that in the advanced version you will have to give extra details. Also, there is a 24 hours customer support team available at taxfyle’s tax calculator. So, you can also contact them and get your queries resolved.
This is one of the best methods to calculate the tax liability and tax refund.