Simple Federal Tax Calculator (Tax Year 2016)
Enter your filing status, income, deductions and credits and we will estimate your total taxes. 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.
Simple Federal Tax Calculator (Tax Year 2016) Definitions
- Federal Income Tax Rates:
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
Filing Status 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". Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. 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 2016, the standard deductions are $12,600 for married couples filing jointly, $6,300 for married couples filing separately and singles, and $9,300 for heads of household.
- A dependent is someone you support and for whom you can claim a dependency exemption. In 2016, each dependent you claim entitles you to receive a $4,050 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.
- Exemptions claimed
- Each exemption you claim reduces your taxable income by $4,050 for 2016. You receive an exemption for yourself, your spouse and one for each of your dependents.
- Business income or loss (Schedule C & E subject to self-employment taxes)
- Any income or loss as reported on Schedule C. If you have any income reported on Schedule E that is subject to self-employment taxes, that income should be entered here as well.
- 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.
- Taxable income
- 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 2016 before any tax credits.
- Total 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 2016.
- Total other taxes
- Any other taxes that you owe for 2016. This includes self-employment tax, alternative minimum tax, and household employment taxes.
- Total tax
- Grand total of your 2016 federal tax bill.
- Total payments
- Total of all tax payments made in 2016. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess Social Security tax withheld.