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Tax Calculator

Tax Year:
Filing Status:
1040 page 1 Regularly Taxed Income:
(salary, interest, ordinary dividends,
short-term capital gains)
$
Qualified Dividends and
Long Term Capital Gains:(1)
+
Adjustments:(2)
(contributions to deductible
retirement accounts...)
-
1040 page 2
Deductions:(3)   Standard   $
or Itemized $
-
# Exemptions: -
Adjusted Gross Income:$
Taxable Income:$
Estimated Tax:
  on Regular Income:$
  on Qualified Dividends and
       Long Term Capital Gains:  
$

Total:
$

(This is income tax only: Social Security is a separate calculation.)

 

How to Reduce Your Taxes

As complicated as the tax code is, it's built around a philosophy that actually makes sense: the government will reward intelligent behavior with a tax break. A few obvious suggestions:

(1)   Don't Churn Your Portfolio
You want to pay the long term capital gains rate, and pay that as infrequently as possible. (Many index funds are low-churn and tax efficient.)
 
(2)   Open a Retirement Account
A deductible IRA gives you a negative adjustment, lowering your taxable income. (A Roth IRA gives you a tax break later.)
 
(3)   Have "Good" Debt
Credit card debt is bad debt, but a long-term mortgage is very good debt - a fixed, low interest rate, plus a tax break that shows up as an itemized deduction.
 
(3a) Give to Charity
Another deduction, plus you'll make people think you're nice.
 

 

Tax Diagram: Which Rates Apply, and Where?

The calculator gives taxes on regularly taxed income and qualified dividends and long term capital gains.

 

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Taxes

Tax Calculator
Tax Brackets
Capital Gains
Social Security
 

 

 
Tax Changes for 2013 and 2014

High incomes will pay an extra 3.8% Net Investment Income Tax as part of the new healthcare law, and be subject to limited deductions and phased-out exemptions (not shown here), in addition to paying a new 39.6% tax rate and 20% capital gains rate.
 

 

 

 

 
Also See...

Roth IRA Limits
401(k) Calculator
Savings Calculator
Credit Card Calculator
Investment Return
Tax Cuts
 

 

 
Off Site...

IRS Tax Calculators
Form 1040 ES
Tax-Efficient Fund Placement
Taxpayer Advocate Service