Business & Finance Taxes

How to Figure Federal Tax on Income

    • 1). Use the H&R Block tax calculator (see Resources). Just enter your estimated income for the tax year, your filing status (e.g., single or head of household), the number of dependents you have, expenses such as child care or medical expenses, and the amount of tax withheld. Your estimated refund or amount owed will be displayed.

    • 2). Go to the IRS Withholding Calculator (see Resources). This calculator is suitable if you are employed and would like to know if you need to submit a new W-4 form to their employer to have more or less income withheld for taxes from your paycheck. You will need to enter your estimated income for the year, select your filing status, enter the number of dependents, the amount of tax withheld and any expenses. Your estimated tax owed or refunded will be calculated.

    • 3). Calculate your federal taxes using the TaxCaster provided by TurboTax (see Resources). This tool is useful when calculating other types of income such as social security benefits, interest or dividends. Just plug in your information by clicking the corresponding icons. The amount of tax due is calculated in the right pane. This tool will not, however, estimate the amount of your refund.

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