Wallace Wealth Management

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Federal Income Tax

What's Your Estimated Federal Income Tax Liability?

Paying federal income taxes is one of most people’s least favorite annual activities. As a result, many people tend to procrastinate by not planning for their taxes each year and by completing and filing the forms at the last possible minute. This calculator is designed to help you estimate your annual federal income tax liability.

For the 2020 tax year, the standard deductions are as follows: single, $12,400; heads of households $18,650; married filing separately, $12,400; and married filing jointly, $24,800.

Your Results

Based on your estimates, you could owe the amount of federal income tax shown below.

Is the amount greater than you expected? You may be able to help reduce your tax liability by contributing more to your employer-sponsored retirement plan or by increasing your itemized deductions. For example, you may want to increase your charitable contributions or pre-pay deductible expenses such as state taxes.

Your total pre-tax income: $0
Based on the information you have provided, your federal income tax liability would be: $0

This is only an estimate of your total taxes. A tax refund or taxes still owed would depend on withholdings, estimated taxes paid, eligible tax credits, and other factors not considered here. This is not to be construed as a final determination of your federal tax liability; a tax professional should be consulted. Alternative minimum tax and itemized deductions are not considered.

Are you comfortable with the amount you are paying in taxes? There are steps you can take to help reduce your annual tax burden. Review your individual situation and develop a strategy to help reduce your taxable income.

Where Your Annual Income Goes

 

This is only an estimate of your total taxes. A tax refund or taxes still owed would depend on withholdings, estimated taxes paid, eligible tax credits, and other factors not considered here. This is not to be construed as a final determination of your federal tax liability; a tax professional should be consulted. Alternative minimum tax and itemized deductions are not considered.