Simple Way to Determine Federal Income Tax Quickly

I want to take a break from the topic of physical health today and spend a few minutes on financial health. Now that we are beginning the new year, and new decade this time around, we have to start thinking about our finances a bit. Before we say good bye to last year, our taxes for last year still need to be paid – and that scares a lot of people. My goal is to put your mind at ease a little.

I know the tax form can be very intimidating, but there really isn’t anything to be scared of when you know how to calculate income tax. One way to take some of the mystery and fear out of taxes is to estimate your taxes and tax refund before you even start doing them or going to your accountant.

The first step to calculate income tax is to figure out how much money you made. You should have statements from your employer and any investments or interest you earned. Next you have to determine your deductions like charity and mortgage interest. Subtract your deductions from your total income to come up with your taxable income. From there you look up your tax on a tax table. Subtract any credits, like for children, from your tax and add any penalties to get your final tax. With any luck, you will have paid in more than you owe and the government will be sending you a big fat refund check.

Now that wasn’t so hard was it. Don’t stress out so much over your financial health. When you are ready to do your taxes, check out some of the online income tax software programs. They are way cheaper than going to a tax professional.