Enter your filing status, income, deductions and credits and we will estimate your total taxes for 2012. Based on your projected tax withholding for the year, we can also estimate your tax refund or amount you may owe the IRS next April 2013. In 2012, Federal income tax rates were scheduled to increase to pre-2001 levels, but the 'Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010' left the existing tax brackets in place through 2012.
1040 Tax Calculator (Tax Year 2012) Definitions
Federal Income Tax Rates:
Married Filing Jointly
If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately".
Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.
If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Head of Household
This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.
Married Filing Separately
If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
For 2012, the standard deductions are $11,900 for married couples filing jointly, $5,950 for married couples filing separately and singles, and $8,700 for heads of household.
A dependent is someone you support and for whom you can claim a dependency exemption. In 2012, each dependent you claim entitles you to receive a $3,800 reduction in your taxable income (see exemptions below). You may also receive a tax credit of up to $1,000 for each dependent child under the age of 17. The credit is, however, phased out for at higher incomes.
Total exemptions claimed
Each exemption you claim reduces your taxable income by $3,800 for 2012. You receive an exemption for yourself, your spouse and one for each of your dependents.
This is the total capital gain you realized from the sale of assets. This calculator allows you to enter your total short-term capital gain for investments held less than one year and your total long-term gain for investments held at least one year. Any amount you enter as a short-term capital gain is taxed as normal income. Any amount you enter as a long-term capital gain is taxed as follows:
This calculator assumes that all of your long-term capital gains are taxed at either 0% or 15%.
The tax is 0% for the portion of your gain that would have been taxed at 15% or lower tax if it were a short-term gain.
The tax is 15% for any of your capital gain that would have been taxed at a rate higher than 15% if it were considered a short-term gain.
This calculator assumes that none of your long-term capital gains come from collectibles, section 1202 gains or un-recaptured 1250 gains. These types of capital gains are taxed at 28%, 28% and 25% respectively (unless your ordinary income tax bracket is a lower rate).
Capital gains were scheduled to increase in 2012, however the 'Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010' left them at their existing rates shown above. For more information on capital gains tax rates and how they are applied, you may wish to read IRS Publication 17: Your Federal Income Taxes.
Business income or loss from Schedule C
Any income or loss as reported on Schedule C.
Income from Schedule E
Rental real estate, royalties, partnerships, S Corporations, trusts, etc.
Total income calculated by adding lines 7 through 21 on your form 1040. For most taxpayers this includes wages, salaries, tips, interest, dividends and gains and losses from a variety of activities.
Adjusted gross income
Adjusted gross income (AGI) is calculated by subtracting all deductions from lines 23 through 33 from your total income. AGI is used to calculate many of the qualifying amounts if you itemized your deductions.
Your total taxable income is your AGI minus your itemized or standard deduction, and your deduction for exemptions.
This is the total federal income tax you owe for 2012 before any tax credits.
Your total tax credits. This amount is subtracted from the total tax amount.
Total tax after credits
This is the total federal income tax you will need to pay in 2012.
Total other taxes
Any other taxes that you owe for 2012. This includes self-employment tax, alternative minimum tax, and household employment taxes.
Grand total of your 2012 federal tax bill.
Total of all tax payments made in 2012. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess Social Security tax withheld.