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Steps For Calculating Tax Using Tax Calculator

Income tax is the amount of income that is paid by an individual based onhis or her annual income. Several government-based rules are here which are made by the government for paying the income tax and every individual has to pay the tax based on such rules. Every individual can use the online tool for calculating income tax which is an income tax calculator and should pay the amount based on such a tool. One of the most important factors to keep in mind is that pay your income tax amount before the deadline otherwise you also have to pay a penalty.

There is also a chance that you have paid more amount of money as income tax, then file the case and calculate the tax refund estimate. Within some days of processing, you will get your extra amount as refund money. So, use the taxfyle’s tax calculator online and check that either you have paid the exact amount of money or the extra amount has been paid. There are many special packages available on the internet for calculating tax amount. Some packages are free and some are paid premium packages. Detailed information on paid premium packages is given in this article and you can choose the one based on your profession.

Tax calculator packages with detailed information are here:

Business          $249    Partnerships, corps, trusts and estates, and non-profits                Option to file for maximum return   Work with your Pro to uncover additional business benefits

Self-employed            $169    Self-employed, freelancers, and contractors                                   Optional Audit Protection                 Business activity review to ensure maximum tax benefit

Foreign                        $149    Non-residents, expatriates, foreign investors                                  Optional Audit Protection                 Ensure proper tax compliance for foreign firms

Deluxe             $99      Homeowners, investors, maximize deductions & credits               Optional Audit Protection                 Analysis of filing status to maximize tax benefits

Basic                $49      W-2 filer, renter, standard deduction                                              Optional Audit Protection                 Analysis of filing status to maximize tax benefits

 

Above listed packages are available with every tax return estimator. There may be a slight difference between the prices of all packages but working and calculation feature is the same. So, do not think too much and get calculated your income tax with the exact amount. Now, you are thinking that how to use the online tax calculator tool and how it gives us an accurate result. For your help, we have given several steps for using a tax calculator

The main steps for using the tax calculator are:

  1. First, select the financial year from the available list for which you wantto calculate the tax.
  2. Now, select your age and income accordingly.
  3. Click on the ‘Go to Next Step’ button.
  4. In the blank field, enter your taxable salary i.e. salary after reducing various exemptions such as Standard deduction, HRA, LTA,and so on.
  5. Along with taxable income, you must have toinsert other details such as interest income, rental income, interest-paying on home loan for rent, and self-employed property.
  6. Now, again click on ‘Go to Next Step’.
  7. Click on the ‘Calculate’ button to get the exact amount of tax liability.

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