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What information do you need to enter in a tax calculator?
Answered by verified global tax professionalsDisclaimer: Opinions are from external tax professionals and should not be considered as Microsoft’s opinion or a substitute for professional help. Consult a tax professional for advice.
- To calculate tax liability using a tax table, follow these steps:
- Calculate the total taxable income by subtracting exemptions and deductions from the total income.
- Determine the tax bracket based on filing status and taxable income.
- Apply the appropriate income tax rate based on the tax bracket.
- Subtract any tax credits from the computed tax1.For example, if your taxable income falls into the 22% tax bracket, you would calculate the tax as follows: 10% on the first portion, 12% on the next portion, and 22% on the remaining portion2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.To calculate one’s tax liability, the following steps can be taken:
- Calculate the total taxable income by subtracting exemptions and deductions from the total income.
finally.com/blog/tax-hints/calculate-tax-liability/To calculate your tax liability, each bracket up to yours is used:
- The first $10,275 is taxed at 10%, which equals $1,028.
- Then, the amount from $10,275 to $41,775 is taxed at 12%, which equals $3,780.
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