Income Tax Calculator — United States

How United States Income Tax Works

The United States has a progressive income tax system, meaning that higher income earners are taxed at a higher rate. The tax system is administered by the Internal Revenue Service (IRS). For the 2022 tax year, there are seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The tax brackets and rates are adjusted annually for inflation.

How to Use This Calculator

To use this income tax calculator, you will need to input your filing status, number of dependents, and taxable income. Filing status refers to your marital status and determines which tax brackets and deductions you are eligible for. Number of dependents affects your eligibility for certain tax credits and deductions. Taxable income is your total income minus any deductions and exemptions.

For example, let's say you are a single person with two dependents, living in New York, and earning $80,000 per year. You would input:

• Filing status: Single
• Number of dependents: 2
• Taxable income: $80,000

The calculator will then estimate your federal income tax liability.

Key United States Income Tax Rules

Some important rules to keep in mind when filing your taxes in the United States include:

• The standard deduction for the 2022 tax year is $12,950 for single filers and $25,900 for joint filers.
• The earned income tax credit (EITC) is a refundable credit for low-to-moderate income working individuals and families.
• The child tax credit is a non-refundable credit of up to $2,000 per child under the age of 17.

The IRS requires taxpayers to file their returns by April 15th of each year, unless an extension is granted.

Common Questions

What is the difference between a deduction and a credit?

A deduction reduces your taxable income, while a credit reduces your tax liability directly.

How do I file for an extension on my tax return?

You can file for an extension using Form 4868 by the original filing deadline of April 15th.

What is the penalty for not filing my tax return on time?

The penalty for not filing on time is 5% of the unpaid taxes for each month or part of a month, up to a maximum of 25%.

Can I e-file my tax return?

Yes, you can e-file your tax return using IRS-approved software or through a tax professional.

What is the IRS phone number for tax questions?

The IRS phone number is 1-800-829-1040, available Monday through Friday from 7am to 7pm local time.