Federal Tax Calculator 2022 & 2023 or tax estimator 2023 & 2022 for taxpayers of USA is both for the tax year 2022 (filing April 2023 ) and for tax year 2023 (Filing April 2024 ) . The federal income tax system is progressive, and marginal tax rates range from 10% to 37% . The 2022 & 2023 tax estimator or the fedearl tax calculator , below , is based on tax brackets for 2022 and tax brackets for 2023.
US Federal Tax Calculator 2022 & 2023
The Internal Revenue Code provides that a tax payer can either claim a standard deduction or claim itemized deduction . The list of items of itemized deduction is quite long . Claimming itemized deduction requires you to keep records . Many times, the wrong or unusual claim of itemized deduction become a cause of IRS Audit of your return.
5 Tax Credits Incorporated in the federal tax calculator 2022 & 2023
Tax credits can be claimed by user while estimating the total tax. When you answer the question ” ” as YES”, fieve tax credit fields will open.The calculator will reduce the aggregate of these credits to determine ultimate tax liability or the refund . These are :
- Child & Dependant Tax Credit also known as Childcare tax credit is allowed for child or dependent care expenses while they work or look for work. The credit can be worth up to 35% of qualifying expenses, depending on the taxpayer’s income.. Read and test this childcare tax credit
- Earned Income Tax Credit or EITC in short is a tax credit for low-to-moderate-income working individuals and families. Visit this page EITC calculator
- American Opportunity Tax Credit is given for college expenses, including tuition, fees, and course materials. The credit is available for the first four years of post-secondary education and is worth up to $2,500 per eligible student. Test the American Opportunities Tax Credit Calculator
- Lifetime Learning Credit: like AOTC is also a tax credit for educational expenses, including tuition and fees, for undergraduate, graduate, and professional degree courses. Unlike the AOTC, the LLC is available for all post-secondary education, including courses to acquire or improve job skills.Test Lifetime learning Credit Calculator.
- Retirement Savings Contributions Credit: The Retirement Savings Contributions Credit, also known as the Saver’s Credit, is a credit for taxpayers who contribute to a retirement account, such as a 401(k) or IRA. The credit is worth up depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is 50%, 20% or 10% of various retirement policies.
Can State & local taxes be claimed while using federal tax calculator 2022 & 2023 ?
There is an option in the tax calculator to opt for either Standard Tax or Itemized Tax .If you select the itemized tax , you can claim state & local tax paid during the year for which tax is being calculated.But , there is maximum limit for claim of state & local taxes at $10,000.
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