Calculate Taxes, TurboTax
tax season on the horizon, it's now time to start thinking
about what income tax obligations you may have so that you
can be better prepared financially to tackle any tax bill.
The TurboTax TaxCaster is an online tax calculator that
you can use for free.
Another fact about the TaxCaster tool is that you do
NOT have to provide any personal identification information,
therefore you can use the TurboTax calculator anonymously
anytime for the 2015 - 2016 tax year.
As a universal tool for calculating taxes, the TaxCaster
takes most factors into account to ensure relative accuracy
of any income tax estimate.
Many factors come in to play when your trying to reduce
your tax bill. Some of the more important ones are to:
Calculate Tax Deductions
Tax deductions are a great source for lowering your tax
bill, and increasing any tax refund you may be due to receive
from the Internal Revenue Service (IRS). These figures can
help you determine your local and state income tax liability
as well. You can calculate taxes anytime
throughout the year.
The TurboTax TaxCaster takes over 305 tax deductions
into consideration as it searches for what will apply to
your tax filing situation.
common tax deductions include:
Home Mortgage Interest Paid
On Your Home Residence
Charitable Tax Donations
State and Local / Municipal
Income Taxes Paid
Real Estate Taxes Paid
Medical and Educational Expenses
Most missed and overlooked deductions include:
State sales taxes
Child care credit
Moving expenses for first
Education expenses paid
Earned income tax credit
Mortgage Refinancing Points
Jury pay paid to employers
State taxes paid in spring
Calculate Tax Exemptions
Another area where the TurboTax TaxCaster
comes to life to help you save is with tax exemptions. There
are several tax exemptions that are quite common and help
to lower your federal tax bill.
TurboTax TaxCaster Income
The TaxCaster calculates your net taxable income by taking
your total income and subtracting your tax deductions and
exemptions. Once this step is completed, it will come up
with your tax amount due or refund amount. It does this
by subtracting any tax credits and
or quarterly payments already paid toward your tax bill.
TurboTax TaxCaster and
AMT Tax Calculations
The other main factor that comes into play with
the TurboTax TaxCaster is whether or not the Alternative
Minimum Tax (AMT) applies to your tax calculation. This
will determine which tax you will have to pay.
The AMT tax is imposed on individuals, corporations,
estates, and trusts at a nearly flat rate based on an adjusted
amount of taxable income above a certain threshold (also
known as exemption). Regular taxable income is adjusted
on items that are computed differently for AMT, such as
depreciation and medical expenses.
Taxpayers with income above the AMT exemption calculation
whose regular federal income tax is below the calculated
AMT amount must pay the higher AMT tax amount instead of
the lower standard federal tax.
Using TurboTax TaxCaster
Online or iPhone App
The great benefit to using this TaxCaster TurboTax tax
calculator is that it is available for use online at anytime,
or you can download
the TurboTax TaxCaster App for your smart phone or iphone
and use it on the run.
Either way I have to say that after using this tool on
both my iphone and online, it is a great way to see where
you stand with the Internal Revenue Service and our old
buddy Uncle Sam.
When all is said and done, the
TaxCaster will supply you with several important tax
factors including: your total income, your net taxable income,
your marginal tax rate, and how much you owe, or how big
your refund will be. What more do you need? try it today!