![]() You may be able to auto-fill certain tax documents into the tax software.You don’t have to break out the pen and paper to do the math.If you’re thinking about using a calculator or tax software, here are some potential pros and cons: ![]() “Many tax software filing programs only charge you when you file, so you can get a ballpark number ahead of time,” says Corsello. Typing in your income, filing status and other information into an online income tax calculator or tax software is another-possibly less cumbersome-way to determine your tax liability. Use an Online Tax Calculator or Tax Software “It is long, but it provides directions and a form that you can use to accurately estimate what you will owe,” says Corsello.įor self-employed workers who don’t have taxes withheld by an employer, the Self-Employment Tax and Deduction Worksheet part of 1040-ES can help you estimate quarterly payments that need to be made on April 18, June 15, September 15 in 2023, and January 15, 2024. If you get stuck with this calculation, you could work through the IRS’s 1040-ES 2022 Estimated Tax Worksheet. Once you’ve figured out your total tax due, you can subtract money withheld from your paycheck for 2022 and any tax credits you qualify for to estimate your tax bill for the year. Where you fall depends on your income and filing status. Then reference your tax bracket to determine tax liability. Do this by taking your gross income and subtracting exemptions and deductions you qualify for. You’ll first need to calculate your taxable income to estimate the taxes owed, since your earnings changed. Estimate Your Taxable Incomeīut maybe you received a raise or landed a job with a larger salary in 2022. The child tax credit, child and dependent care credit and the earned income tax credit may reduce the amount you owe.Īfter you’ve taken your total tax due for 2021 and subtracted 2022 withholding, tax payments and eligible credits, you should get a decent estimate of what you owe for 2022, provided that nothing major has changed in your financial situation. From there, subtract the tax credits you might qualify for. If you made estimated tax payments, you can subtract those payments as well. Then, subtract from that amount the taxes you’ve already paid for 2022, including money your employer withheld from your paychecks. Start by checking your total tax that was due for 2021-you can find this on line 24 of your 2021 tax return. “If you earned about the same amount as last year, you would owe about the same amount.” The easiest way to estimate the tax you owe for 2022 is to base it on last year’s income, says Charles Corsello, an enrolled agent and founder of TaxCure LLC. If you’re not sure how much you owe, here are a few relatively painless ways to estimate your tax bill for 2022.
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