Tax Calculator

Tax Year:
Filing Status:
1040 page 1 Regularly Taxed Income:
(salary, interest, regularly-taxed dividends,
short-term capital gains)
Qualified Dividends and
Long Term Capital Gains:(1)
(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:  


(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.



Tax Calculator
Tax Brackets
Capital Gains
Social Security



Tax Changes for 2013, 2014, 2015, 2016

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



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