www.and.co - Quarterly Tax Calculator (Federal only)
Quarterly tax calculator designed for freelancers, focusing on federal tax estimates. It includes sections for filing status, standard deductions, and exemptions, with specific values for married, single, and head of household filers. The calculator also projects taxes based on wages from other jobs and business income, providing a comprehensive overview of potential tax liabilities. Additionally, it features state income tax rates and brackets for various states, making it a useful tool for understanding overall tax obligations.
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The quarterly tax calculator provides detailed insights into estimated federal taxes for various filing statuses. For individuals filing as Married Filing Jointly (MFJ), the standard deduction is $12,600, while Single filers benefit from a deduction of $6,300. Married Filing Separately (MFS) also has a standard deduction of $6,300, and Head of Household (HOH) filers receive a deduction of $9,300. Each taxpayer can claim a personal exemption of $4,000.
When projecting taxes, if a taxpayer has wages from other jobs totaling $0 and business income of $120,000, their adjusted gross income will remain at $120,000. After accounting for itemized deductions of $6,300 and a personal exemption of $12,000, the taxable income amounts to $101,700. This results in a calculated tax of $21,969 and a self-employment tax of $16,955, leading to total payments of $35,032. If these payments exceed the estimated tax liability, a refund of $3,892 may occur, with an average tax rate of 38.27%. Notably, potential savings for those electing S Corp status could reach $16,955, provided they complete Form 2553.
The estimated tax payments are divided into four quarterly installments, each amounting to $8,758, culminating in a total of $35,032, which represents 90% of the total tax liability for the year. The due dates for these payments are April 18, 2016, June 15, 2016, September 15, 2016, and January 17, 2017. The estimated total tax for the year is projected at $38,924.
In the tax brackets for Married Filing Jointly, if taxable income is not over $18,550, the tax is 10% of the taxable income. For income over $18,550 but not exceeding $75,300, the tax is $1,855 plus 15% of the excess over $18,550. As income increases, the tax rate escalates, reaching 39.6% for income over $466,950. Single filers face similar brackets, with the first $9,275 taxed at 10%, and those with income exceeding $190,150 paying 33% on the excess.
For those filing as Married Filing Separately, the first $9,275 is taxed at 10%, and income over $37,650 incurs a 15% tax on the excess. The highest bracket for this status applies to income over $233,475, where the tax rate is 39.6%. Head of Household filers start at a 10% tax rate for income not exceeding $13,250, with the rate increasing to 33% for income over $210,800.
The state income tax section outlines various tax rates and brackets across different states. For instance, Alabama imposes a 2% tax on income over $0, escalating to 5% for income exceeding $3,000. Arizona's tax structure begins at 2.59% for income over $0, reaching up to 4.54% for income over $150,000. In contrast, Alaska has no state income tax, while California has a progressive tax rate starting at 1% for income over $0 and going as high as 13.30% for income exceeding $1,000,000.
Georgia's tax rates begin at 1% for income over $0 and can reach up to 6% for income over $7,000. Hawaii's rates start at 1.40% for income over $0 and go up to 11% for income exceeding $1,000,000. Each state has its own set of brackets and exemptions, making it essential for filers to be aware of their specific circumstances.