Income tax department

Credit Cards Best Credit Cards • Helpful Guides • Compare Cards • Life Insurance Calculators • Compare Quotes • Helpful Guides • Refinance Calculators • Compare Rates • Helpful Guides • Personal Loans Calculators • Compare Rates • Helpful Guides • Student Loans Calculators • Compare Rates • Helpful Guides • • Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan. How Income Taxes Are Calculated • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k). • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children. • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year. • Your location will determine whether you owe local and / or state taxes. ...read more • The Federal Income Tax: How Are You Taxed? Photo credit: ©iStock.com/Veni The federal personal income tax that is administered by the Internal Revenue Service (IRS) is the largest source of revenue for the U.S. federal gover...