Tax calculators are a way you can figure out tax liability, tax refund, and taxes withheld. Before the 2023 tax season arrives, use the tax calculator to see if you’re going to end up owing to the IRS or get a refund.
By using the tax calculator, you will be able to see your taxes ahead. The purpose of the tax calculator is to give you insights into your 2023 anticipated tax return.
Tax Return Calculator – Tax Liability
Your tax liability is how much you owe the IRS after credits and taxes paid. You get to your tax bill first by figuring out your gross income. Then, gradually decrease it by taking off the adjustments you can make to income and deductions.
You will do this when filing a Form 1040—U.S. Individual Income Tax Return. How long your tax return is going to take to fill out is mostly related to whether or not you itemize or take the standard deduction. Use the calculator to figure out tax liability for the year.
You can also estimate the taxes withheld by using this calculator. If the total taxes withheld is more than your tax liability, you will get a tax refund.
Tax Refund Calculator
The taxes paid during the tax year and the tax liability is what determines whether or not a taxpayer is going to get a refund. If the taxes you’ve paid through withholding or estimated tax payments is more than the taxes owed, the IRS will refund you the excess amount paid.
Although taxpayers have the option to let the IRS keep a portion of their tax refunds to pay the next year’s tax bill, it isn’t something that is favored by many. Most American taxpayers spend their tax refunds on their next big purchase.
The formula for tax refunds is pretty simple. You only need to subtract the taxes paid from the taxes owed. If the result is below 0, you will get a refund. If not, you will have to pay the IRS the remaining tax liability.