How to Estimate Federal Income Tax

Paying taxes is needed to help fund our country but no one wants to pay more than they are required to pay.  Estimating the amount of federal income tax due allows people to know what they are required to pay and what to expect when tax time comes.

• Visit the website of the Internal Revenue Service.  This website offers a withholding calculator that will ask questions about your filing status, dependants, income, tax withholding and other questions to determine how much of a refund you will get back.  You will need to have your tax information before attempting to complete the calculator.  The more accurate you can be with the numbers the better an estimated amount you will receive.


• Print or open the tax table on the IRS website.  Find the year for which you want to find your estimated income tax.  Using your filing status and income you can use the chart to get the amount of tax due.  This does not account for deductions that you may be able to claim.  It only lists the amount of tax that you owe for that year.  Deduct from that amount the amount of taxes you know you have paid as a deduction in your paychecks or by another method.  This will give you a closer idea at how much you may still owe or will receive as a refund.


• Use the IRS withholding tax table that is Circular E to find out how much should be paid in taxes for each pay period.  This chart has lists for weekly, biweekly, semimonthly and monthly pay periods.  Use your filing status and amount of pay to figure your estimate tax to pay each pay period.  The publication also includes lots of helpful information to know about paying taxes.