InvestingBytes.com

There are different types of taxes, namely, property tax, sales tax, payroll tax, and other. However, people refer to income tax when they use the broad term “taxes”. Income taxes are the federal government’s primary source of revenue. According to the Internal Revenue Services (IRS) “income” can be of any form such as salaries, royalties, rents, interest dividends, business earnings, and even lottery earnings.

Everyone that earns an income is liable to pay taxes as it helps the economy of the country to remain stable. The financial foundation of the country would collapse without income taxes. However, you need to make sure that you are only paying the proportion you truly owe to the country. As a result, IRS and several other websites offer free online or offline tax calculators. Online tax calculators help you analyze your paycheck or your earnings thereby helping you plan your finances for the next year.

Following is a list of some free online tax calculators that you can use to calculate your taxes for the financial year:

Earned Income Credit Assistant
This IRS-powered application lets you determine if you are eligible for the earned income tax credit (ETIC). The ETIC is a refundable tax credit available for lower-income families and individuals. The eligibility depends upon several factors such as income level, filing status, and the number of qualifying children.

AMT Assistant
The Alternative Minimum Tax (AMT) Assistance helps taxpayers determine if they are eligible for AMT, which is done by automating the AMT worksheet of the 1040 instructions, also called as “worksheet to see if you should fill in form 6251”. It is estimated that taxpayers with the most accurate information get an estimate through the tax calculator in under 10 minutes. AMT Assistant is yet another one of online tax calculators by the IRS.

Withholding calculator
Another tax calculator by the federal government, the purpose of this calculator is to help employees ensure that they don’t withhold income tax from their paychecks. However, it is not an alternative or a replacement for form W-4; however, most of the people find it more accurate and easier-to-use when compared with worksheets accompanying form W-4. The withholding calculator lets you use its result and complete the new W-4 form, which you can use to submit to the employer.

Paycheck Calculator
An online tax calculator by paycheckcity.com, it is useful if you want to make sure that your net pay and withholdings are accurate. Paycheck calculator calculates your net pay even if you are starting a new job or if you want to verify your calculations made on your paycheck. One of the most popular features of Paycheck Calculator is included state withholding calculations as different states have different laws toward tax withholding.

Tax tools and calculators by H&R Block
The H&R Block financial website uses a complex set of equations with the dynamics that change according to the rules set by the federal government every year. You can calculate your tax deductions using several tools on their website such as the tax calculator, the W-4 calculator, and the W-2 early access calculator (for early tax filing). Its tax prep checklist tool helps you prepare for a tax checklist for the coming financial year.

Tax calculators and money finding tools by Turbotax
Like H&R Block, Turbotax has its own tools and calculators to help you estimate tax deductions, refund, and uncover tax-credits. Its TaxCaster calculator lets you estimate your tax refund, how much you will receive on your tax return, or how much you owe for the forthcoming financial year. Apart from this, the website also has a W-4 withholding calculator, a tax bracket calculator, a self-employed expense estimator, a Dependents Credit and Deduction Finder, the ItsDeductible™ (to keep a track of your charitable donations), the Education Credit and Deduction Finder, and the Documents Checklist.