Federal Estimated Tax Calculator

Tax Year

Selecting a year from this drop-down list will change the estimated tax calculator to use the tax tables for that year. It will continue to use the data that has already been entered.

Save Button

Pressing the "Save" button will save the data in the estimated tax calculator to a text file named "EstimatedTax.txt" in your Downloads folder. This data can be reloaded by pressing the "Restore" button.

Restore Button

Pressing the "Restore" button will reload the estimated tax calculator with information that was previously saved.

Taxpayer's Name

This is the name of the taxpayer. It is only used to identify the taxpayer that the information belongs to. This may be useful if the information is saved or printed.

Filing Status

Select a value from the drop-down list. The filing status is used to determine a few things in the tax calculation, such as the standard deduction, the tax bracket, and certain tax benefits.

Taxpayer's Birthday

This is used to determine if the taxpayer will be 65 or older at the end of the tax year.

Spouse's Birthday

This is used to determine if the spouse will be 65 or older at the end of the tax year.

Version

This is the current version of the tax tools. The version number is actually a link that you can click on to see the version history log.

Today's Date

This is only used to help identify the information if it is saved or printed.

Taxpayer's Age

This is the age the taxpayer will be at the end of the tax year.

Spouse's Age

This is the age the spouse will be at the end of the tax year.

Total Income

This is the sum of all your taxable income including capital gains, but not qualified dividends.

Adjustments

Adjustments are expenses that are be deducted from taxable income even if you do not itemize deductions. They are subtracted from taxable income to determine AGI. Deductions are subtracted from income after AGI is determined, so adjustments reduce AGI, deductions do not.

Adjusted Gross Income (AGI)

Adjusted gross income is all taxable income including long term capital gains (but not qualified dividends) minus adjustments.

Deductions

This is an amount that can be subtracted from your taxable income before the tax is computed. It is usually either the standard deduction or the sum of your itemized deductions, whichever is larger. However, there are some deductions that are allowed even if you do not itemize your deductions, which are also added to this amount.

Taxable Income

Taxable income is your adjusted gross income minus exemptions and deductions. Exemptions are the personal exemption and an exemption for each dependent, but they are currently set to $0 in the tax code.

Tax on Taxable Income

This is the tax on your taxable income.

Other Taxes

These are other less common taxes, such as self-employment tax or the extra tax on the early distribution from a retirement account.

Non-refundable Credits

Credits are amounts that are subtracted from your tax (as compared to deductions, which are amounts that are subtracted from your taxable income). At most, non-refundable credits can reduce your tax to $0.

Total Tax

This is the tax on your taxable income plus other taxes and with non-refundable credits subtracted.

Refundable Credits

While non-refundable credits can reduce your tax to $0, refundable credits can reduce your tax below $0, which results in you receiving money back.

Payments

This is the amount of tax you already paid during the tax year; for example, withholding or estimated payments.

Amount Due

This is the amount of tax that is owed. If it is positive, it is tax due. If it is negative, it is the amount overpaid (refund).

Estimated Quarterly Payments

The estimated payments are calculated as the amount you owe plus the amount of estimated taxes you paid. If the amount is less than $1,000, estimated payments are not required; otherwise, they need to be paid in four quarterly payments.

Wages

Wages includes all earned income (payments for work). The tool does not have a separate entry for small business income, so you need to add net profit from a small business (income minus expenses) to wages.

Tax-exempt Interest

Tax exempt interest is not taxed by the federal government; for example, interest from state and local bonds. Even though it is not taxed, it is needed to determine the amount of Social Security that is taxed.

Taxable Interest

Taxable (ordinary) interest comes from things such as savings accounts or U.S. Treasury bonds.

Qualified Dividends

Qualified dividends are the portion of your total ordinary dividends that are taxed at the lower capital gains tax rate.

Ordinary Dividends

Ordinary dividends are non-qualified dividends. This means they are taxed as income because they are not qualified for capital gains treatment.

Retirement Accounts

Enter the taxable amount from any withdrawal from a retirement account (for example: traditional IRAs, pensions, annuities, etc.).

This tool does not know how to determine the amount of the withdrawal that is taxable, so you need to determine that and only enter the taxable amount here. In most cases, except the first and last year, the taxable amount will be the same every year so you may be able to look on a previous tax return.

Social Security

Enter the total amount of Social Security received. This comes from SSA-1099, box 5. This tool will determine how much of the Social Security payments are taxable

Capital Gains

Enter the amount of long term capital gains. Capital gains are gains or losses derived from the sale of investments. The largest loss that you can subtract from income is $3,000, so this entry will be adjusted to ensure it is greater than or equal to -$3,000.

Self-employment Income

Self-employment income is the net profit from a small business, which is the amount of money a business has left after subtracting all its expenses from its total income.

Other Income

This is a catch all field for income not covered in one of the other fields.

Self-employment Tax

A tax that self-employed individuals must pay to fund Social Security and Medicare. This tax applies to net profit from self-employment that exceed $400 in a year. The self-employment tax rate is 15.3%, which is 12.4% for Social Security plus 2.9% for Medicare.

Early Withdrawal Tax

If you make an early withdrawal from a tax advantaged account, there is often a 10% or 20% additional tax on the withdrawal amount.

Other Taxes

This is a catch all field for taxes not covered in one of the other fields.

Educator Expenses

Educators can deduct up to $300 each for the taxpayer and spouse for unreimbursed classroom expenses. Educators may be a teacher, counselor, principal, or aide that worked at least 900 hours in a K-12 school during the tax year.

Health Savings Account Contributions

After tax contributions to Health Savings Accounts (HSA"s) may be deductible from income. The total contributions to an HSA are limited to a yearly amount.

Self-employment Tax Adjustment

Self-employed taxpayers can deduct half of their self-employment tax.

Self-employed Health Insurance

Self-employed taxpayers can deduct their health insurance premiums for medical (including Medicare), dental, and long-term care coverage for themselves, their spouses, and their dependents. The amount of this deduction is limited to the net profit from the business; any excess premiums can be deducted as an itemized deduction.

Early Withdrawal Penalty

You may be able to deduct an early withdrawal penalty.

Alimony Paid

If you were divorced before 2018 and are required to pay alimony, enter the amount you paid during the tax year.

IRA Contributions

After tax contributions to Traditional IRAs, SEP-IRAs, SIMPLE IRAs may be deductible from income. The total contributions to an IRA are limited to a yearly amount and limited by income.

Student Loan Interest

You can deduct up to $2,500 for student loan interest you paid during the tax year. The same limit applies whether you are single or MFJ.

Other Adjustments

This is a catch all field for adjustments not covered in one of the other fields.

Qualified Business Income

Qualified Business Income (QBI) refers to income from a qualified business. It is used to determine the Qualified Business Income Deduction, which is a deduction of up to 20% of QBI. Taxpayers without a business may have qualified business income from dividends paid out by a REIT. This deduction is available even if you do not itemize deductions.

Qualified Tips

Up to $25,000 of qualified tips can be deducted. The limit is the same for both single and joint filers. The tips are reported on W-2, box 5. The deduction phases out when MAGI is $150,000-$300,000 for all filers. This deduction is available even if you do not itemize deductions.

Qualified Overtime

Up to $12,500 for single filers and $25,000 for joint filers of qualified overtime pay can be deducted (Only overtime pay required by the Fair Labor Standards Act is eligible. Overtime pay earned under state laws, collective bargaining agreements, or employers" compensation plans isn"t eligible. The deduction starts to phase out at a rate of $100 per $1,000 of income over a MAGI of $150,000 for a single filer and $300,000 for joint filers. This deduction is available even if you do not itemize deductions.

Car Loan Interest Deduction

Up to $10,000 in car loan interest for a new vehicle may be deductible. The deduction begins to phase out when MAGI is $100,000 for single filers, or $200,000 for joint filers. This deduction is available even if you do not itemize deductions.

Enhanced Deduction for Seniors

$6,000 deduction each for the taxpayer and spouse if they are 65 or older. The deduction phases out when MAGI is $75,000-$175,000 for single filers and $150,000-$250,000 for joint filers. This deduction is available even if you do not itemize deductions.

Medical Insurance

Enter the total premiums paid for medical insurance. This includes health, dental, and vision insurance and the cost of Medicare (see SSA-1099). Enter long term care insurance separately below.

Doctor Visits

Doctor, dentist, etc. Include co-pays.

Prescription Medication

The amount paid for prescription medications; not over-the-counter medications.

Medical Aids

Glasses, hearing aids, crutches, walker, wheelchair, etc.

Long Term Care Insurance (taxpayer)

Enter the actual premium paid for log term care insurance for the taxpayer. This amount will be reduced to the allowed limit based on the taxpayer's age.

Long Term Care Insurance (spouse)

Enter the actual premium paid for log term care insurance for the spouse. This amount will be reduced to the allowed limit based on the spouse's age.

Medical Miles

The number of miles driven for medical appointments. This will be multiplied by the allowance for medical mileage.

Other Medical Expenses

This is a catch all field for medical expenses not covered in one of the other fields.

State Income Tax

This is the amount of income tax you paid to the state during the tax year. It generally consists of state withholding and any state income tax you owed on last years taxes.

Either the state income tax or sales tax can be deducted, whichever is larger. If both are entered, this tool will determine which one to use.

Sales Tax

Enter the amount of sales tax you paid during the tax year. This can be calculated using the sales tax calculator on the IRS web site (apps.irs.gov/app/stdc). If you don"t pay much state income tax, it may be worthwhile to find out how much sales tax you can deduct. This is especially important if you made a large purchase, such as a car.

Either the state income tax or sales tax can be deducted, whichever is larger. If both are entered, this tool will determine which one to use.

Real Estate Property Tax

Real estate property tax is typically paid in two installments, one in December and another one in April of the next year. The real estate property tax you can deduct is the sum of any installments that were paid during the tax year.

Personal Property Tax

This is typically the "license fee" portion of the vehicle registration fee for all of your vehicles.

Mortgage Interest

Mortgage interest paid on both your first and second home is deductible.

Cash Gifts to Charity

This is the total of all cash gifts you gave to charity except for Qualified Charitable Distributions (QCD"s), which, if made, need to be subtracted from the amount of taxable income entered for the retirement account.

Non-cash Gifts to Charity

This is the fair market value of all non-cash donations you made to charity, such as donations to the Goodwill.

Qualified Charitable Distribution

A qualified charitable distribution (QCD) is a direct transfer of money from an IRA to a charity. This allows a taxpayer that is 70 1/2 or older to make a cash gift without having to pay taxes on the withdrawal.

If you enter a value here for a QCD, instead of being added as a deduction, it will be subtracted from the amount you enter for "Retirement Accounts" in the income section above.

American Opportunity Credit (non-refundable part)

The American Opportunity Credit may be available to pay up to $2000 per student of education expenses for the taxpayer, spouse, and dependents. An additional $500 may be available as a refundable credit.

Child and Dependent Care Credit

This credit may be available to help pay for dependent care expenses.

Child Tax Credit

The Child Tax Credit (CTC) is a 2-part credit to help with the expense of raising children. The CTC is a non-refundable credit of up to $2,200 per child. The Additional Child Tax Credit (ACTC) is a refundable credit of up to $1,700 per child. The Credit for Other Dependents may be available to taxpayers that do not qualify for the CTC. It is a credit of up to $500 per dependent.

Foreign Tax Credit

In this tool, the foreign tax credit is limited $300 each for the taxpayer and spouse. Foreign tax over of $300 requires form 1116 (or it an be entered as an itemized deduction), but that is not implemented in this tool.

Lifetime Learning Credit

The Lifetime Learning Credit may be available to help pay for education expenses for the taxpayer, spouse, and dependents up to $2000 per tax return.

Residential Energy Credit

This is a credit to help pay for the cost of energy improvements to your first or second home.

Retirement Savings Contribution Credit

This credit may be available if you contribute to a retirement saving account, such as an IRA.

Other Non-refundable Credits

This is a catch all field for non-refundable credits not covered in one of the other fields.

American Opportunity Credit (non-refundable part)

The American Opportunity Credit may be available to pay up to $2000 per student of education expenses for the taxpayer, spouse, and dependents. An additional $500 may be available as a refundable credit.

Credit for Other Dependents

The Credit for Other Dependents may be available to taxpayers that do not qualify for the Child Tax Credit. It is a credit of up to $500 per dependent.

Earned Income Credit

The Earned Income Credit (EIC) is a credit to help low-income families. The taxpayer must have earned income and cannot have more than $11,600 of unearned income. The credit is based on income and number of qualifying children. The maximum abmount of the credit is $8,046.

Premium Tax Credit

This credit is part of the Affordable Care Act that is available to help pay the cost of medical insurance for taxpayers and their dependents.

Other Refundable Credits

This is a catch all field for refundable credits not covered in one of the other fields.

Withholding

This is the total amount of tax you have had withheld from any payments you have received during the tax year; for example, your pay check, Social Security payments, or IRA withdrawals.

Estimated Taxes Paid

This is the amount of estimated taxes you paid during the tax year.