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.
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.
Pressing the "Restore" button will reload the estimated tax calculator with information that was previously saved.
The name of the taxpayer is only used to identify the taxpayer that the information belongs to. This may be useful if the information is saved or printed.
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.
This is used to determine if the taxpayer will be 65 or older at the end of the tax year.
This is used to determine if the spouse will be 65 or older at the end of the tax year.
This is the current version of the estimated tax calculator. The version number is actually a link that you can click on to see the log of version information and changes.
This is only used to help identify the information if it is saved or printed.
This is the age the taxpayer will be at the end of the tax year.
This is the age the spouse will be at the end of the tax year.
This is the sum of all your taxable income including capital gains, but not qualified dividends.
Adjustments are expenses that can be deducted from taxable income even if you do not itemize deductions.
Adjusted gross income is all taxable income including long term capital gains (but not qualified dividends) minus adjustments.
This is an amount that can be subtracted from your taxable income before the tax is computed. It can be either the standard deduction or the sum of your itemized deductions, whichever is larger.
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.
These are other less common taxes, such as self-employment tax or the extra tax on the early distribution from a retirement account.
This is the tax on your taxable income plus other taxes and with non-refundable credits subtracted.
Credits are amounts that reduce your tax, while deductions are amounts that reduce your taxable income. At most, non-refundable credits can reduce your tax to $0.
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.
This is the amount of tax you already paid during the tax year; for example, withholding or quarterly estimated payments.
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).
If the amount owed is less than $1,000, estimated payments are not required. Otherwise, they need to be paid in four quarterly payments.
Wages includes all earned income (payments for work). The tool does not currently support income from a small business, so you need to add business income minus expenses to wages.
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 (ordinary) interest comes from things such as savings accounts or U.S. Treasury bonds.
Qualified dividends are the dividends that are qualified to be taxed as capital gains (lower tax rate).
Ordinary dividends are non-qualified dividends. This means they are taxed as income because they are not qualified for capital gains treatment.
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.
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
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.
Educators can deduct up to $300 each for the taxpayer and spouse for classroom expenses.
Contributions to Health Savings Accounts (HSA's) may be deductible from income.
If you were divorced before 2018 and you pay alimony, enter the amount you paid during the tax year.
Contributions to Traditional IRAs, SEP-IRAs, SIMPLE IRAs may be deductible from income.
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.
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
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.
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.
$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. The deduction is available whether or not you itemize deductions.
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, dentist, etc. Include co-pays.
The amount paid for prescription medications; not over-the-counter medications.
Glasses, hearing aids, crutches, walker, wheelchair, etc.
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.
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.
The number of miles driven for medical appointments. This will be multiplied by the allowance for medical mileage.
This is a catch all field for medical expenses not covered in one of the other fields.
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. This tool will determine which one to use.
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. This tool will determine which one to use.
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.
This is typically the "license fee" portion of the vehicle registration fee for all of your vehicles.
Mortgage interest paid on both your first and second home is deductible.
This is the total of all cash gifts you gave to charity except for Qualified Charitable Distributions (QCD's), which, if made, were deducted from the withdrawal from a retirement account.
This is the fair market value of all non-cash donations you made to charity, such as donations to the Goodwill.
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.
This is a credit that may be available to help pay for dependent care expenses.
The American Opportunity Credit and the Lifetime Learning Credit may be available to help pay for education expenses for the taxpayer, spouse, and dependents.
This credit may be available if you contribute to a retirement saving account, such as an IRA.
This is a credit to help pay for the cost of energy improvements to your first or second home.
This is a catch all field for non-refundable credits not covered in one of the other fields.
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.
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 $2,000 per child. The Additional Child Tax Credit (ACTC) is a refundable credit of up to $1,400 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.
The Earned Income Credit (EIC) is a credit to help low-income families.
This is a catch all field for refundable credits not covered in one of the other fields.
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.
This is the amount of estimated taxes you paid during the tax year.